BILL ANALYSIS Ó SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Isadore Hall, III Chair 2015 - 2016 Regular Bill No: AB 2904 Hearing Date: 6/14/2016 ----------------------------------------------------------------- |Author: |Committee on Accountability and Administrative | | |Review | |-----------+-----------------------------------------------------| |Version: |3/29/2016 Amended | ----------------------------------------------------------------- ------------------------------------------------------------------ |Urgency: |No |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Felipe Lopez | | | | ----------------------------------------------------------------- SUBJECT: State real property: disposition DIGEST: This bill authorizes the Director of the Department of General Services (DGS) to dispose of a specified surplus property, known as the California Highway Patrol field office in Stockton, California, and rescinds the prior surplus authorization of a specified parcel, known as the Employment Development Department's (EDD) Vallejo Building in Vallejo, California. ANALYSIS: Existing law: 1)Provides that DGS may acquire and dispose of surplus state real property where that property is not needed by another state agency and the Legislature has authorized disposal of the property. 2)Authorizes DGS to sell, exchange, sell combined with an exchange, or lease for fair market value, upon those terms and conditions as the Director determines are in the best interests of the state, all or any part of a parcel consisting of approximately 0.90 acres and improvements, known as the Employment Development Department's Vallejo Office building, located at 1440 Marin Street, in Vallejo, Solano County. AB 2904 (Committee on Accountability and Administrative Review) Page 2 of ? 3)Requires that the proceeds from the sale of surplus state property be used to pay the principal and interest on bonds issued pursuant to the Economic Recovery Bond Act, until the principal and interest on those bonds are fully paid, the final payment of which was made in the 2015-16 fiscal year, after which these proceeds are required to be deposited into the Special Fund for Economic Uncertainties, a continuously appropriated Fund. This bill: 1)Authorizes DGS to sell, exchange, sell combined with an exchange, or lease for fair market value, upon terms and conditions determined to be in the state's best interest, all or any part of a former California Highway Patrol field office in Stockton, California. 2)Rescinds the surplus authorizations for the Employment Development Department's office building in Vallejo, California, due to continued need for its use. Background Purpose of the bill. According to the author, "legislative authorization is needed to declare real properties as surplus and to authorize their disposal by DGS. If a state agency identifies a continued need for a property that was previously declared surplus, legislative approval is needed to remove the surplus authorization." Prior/Related Legislation AB 1880 (Irwin, 2016) would authorize DGS to revert a specified parcel of state real property to the City of Buenaventura. (Pending in Senate Governmental Organization Committee) AB 2174 (Accountability and Administrative Review Committee, Chapter 337, Statutes of 2014) authorized DGS to dispose of seven surplus state properties. AB 826 (Jones-Sawyer, Chapter 505, Statutes of 2013) authorized DGS to dispose of eight surplus state properties including the EDD's office building in Vallejo, California. AB 2904 (Committee on Accountability and Administrative Review) Page 3 of ? FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No SUPPORT: Department of General Services (Source) OPPOSITION: None received ARGUMENTS IN SUPPORT: According to DGS, "the surplus parcel located in Stockton is the result of a statewide upgrading of outdated and small existing field offices of the CHP. A new office is under construction nearby. According to the CHP, these locations no longer meet modern building codes, are not in compliance with ADA, and lack women's locker room facilities." In addition, DGS specifies that, "this bill also rescinds the surplus authorization for the Employment Development Department's Vallejo Office Building. Previously, an EDD Partner and major building tenant intended to end the partnership and seek a separate location. After the property was declared surplus, the partner notified EDD that it no longer intended to end the partnership and move out, so for the long term, EDD will likely remain co-located with this partner."