BILL ANALYSIS Ó SB 273 Page 1 Date of Hearing: July 1, 2015 ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW Rudy Salas, Chair SB 273 (Hueso) - As Amended April 27, 2015 SENATE VOTE: 39-0 SUBJECT: State real property: surplus. SUMMARY: Authorizes the Department of General Services (DGS) to dispose of two surplus state properties, a Department of Conservation field office in Fresno County and a Department of Forestry conservation camp in Shasta County. EXISTING LAW requires all state agencies to annually review and determine if any lands under their jurisdiction are in excess of need. This information is reported to DGS, which first determines if any properties can be used by another state agency, and if not, seeks legislative authorization to dispose of the properties. Upon such authorization, DGS must first offer each surplus property to the relevant local agencies and, next, to nonprofit affordable housing entities prior to offering the property to private parties through a bidding process. FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. SB 273 Page 2 COMMENTS: This measure is the annual surplus property bill sponsored by DGS. State agencies are required by Government Code Section 11011 to identify real properties that are excess to their needs. Legislative authorization is needed to declare real properties as surplus and permit their disposal by DGS. The two parcels in this bill have been identified by state agencies as no longer serving a programmatic need. DGS provides the following rationale for deeming the properties in this bill surplus: "The Department of Conservation property in Coalinga (Fresno County) was originally purchased in 1918 as a single story 1,670 square foot home on an approximately 0.17 acre lot. Today it is used as office space. Yet, despite upgrades over the years, it no longer meets program needs. The Department of Forestry conservation camp in Whiskeytown (Shasta County) consists of approximately 30 acres which were acquired in the 1950s. Numerous fire support structures were added to the property shortly after acquisition but the land and structures are currently undersized and no longer meet program needs. The Department of Forestry discontinued use of the site several years ago which eventually resulted in structural damage to the facilities due to a lack of security at the site. Until disposed of, this particular property will continue to pose a liability to the state. SB 273 Page 3 While these properties remain under state ownership, they may have additional issues, such as non-compliance with the Americans with Disabilities Act, pose security concerns, or cost the state money to maintain and secure while vacant. In addition there could be significant costs associated with making these properties compliant with current building standards." All proceeds generated from the sale of surplus properties are used to pay the holders of the state's deficit reduction bonds. PRIOR LEGISLATION: The following measures are the most recent surplus property bills sponsored by DGS and enacted into law: 1)AB 2174 (Assembly Accountability and Administrative Review Committee), Chapter 337, Statutes of 2014 2)AB 826 (Jones-Sawyer), Chapter 505, Statutes of 2013 3)SB 1580 (Senate Governmental Organization Committee), Chapter 798, Statutes of 2012 4)AB 1272 (Butler), Chapter 178, Statutes of 2011 5)SB 136 (Huff), Chapter 166, Statutes of 2009 REGISTERED SUPPORT / OPPOSITION: Support SB 273 Page 4 Department of General Services (sponsor) Opposition None on file Analysis Prepared by:Cassie Royce / A. & A.R. / (916) 319-3600