Amended in Assembly July 8, 2015

Amended in Senate May 5, 2015

Amended in Senate April 20, 2015

Amended in Senate April 6, 2015

Senate Bill No. 536

Introduced by Senator Roth

February 26, 2015

An act to amend Section 435 of the Military and Veterans Code, relating to armories.

LEGISLATIVE COUNSEL’S DIGEST

SB 536, as amended, Roth. Armories.

Existing law authorizes the Director of General Services, with the approval of the Adjutant General, to lease and sell real property held for armory purposes, subject to legislative approval. Existing law establishes the Armory Fund and requires that all proceeds from the sale or lease of armories be deposited into the fund, for use, upon appropriation by the Legislature, for specified purposes related to armories.

This bill would instead require the net proceeds, as defined, from the sale or lease of an armory to be deposited into the Armory Fund. The bill would, upon appropriation by the Legislature, require the Department of General Services to use moneys from the Property Acquisition Law Money Account for the purposes of selling armory properties. The bill would also specify that the sale of an armory is on an “as is” basis, and is exempt from specified laws. The bill would authorize the Director of General Services, with the approval of the Adjutant General, to sell specified armories pursuant to these provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 435 of the Military and Veterans Code
is amended to read:

435.  

(a) The Director of General Services, with the approval
of the Adjutant General, may lease for not more than 99 years or
sell for fair market value upon terms and conditions and subject
to any reservations and exceptions as may be determined to be in
the best interests of the state any real property held for armory
purposes. begin delete No real end delete begin insert Real end insert property shall begin insert not end insert be sold or begin delete lease entered
into end delete begin insert leased end insert pursuant to this subdivision unless the Legislature, by
statute, approves the sale or lease of the property.

(b) There is in the State Treasury the Armory Fund. All net
proceeds from the sale or lease of an armory shall be deposited in
the fund. The money in the fund is available, upon appropriation
by the Legislature, for the maintenance of existing armories, and
for the acquisition or construction of new or replacement armories,
including, but not limited to, the cost of design. The disposition
of armory properties begin delete shall end delete begin insert is end insert not begin delete be end delete subject to subdivision (g) of
Section 11011 of the Government Code.

(c) For the purposes of this section, “net proceeds” begin delete shall be
defined as end delete begin insert are end insert the gross proceeds less:

(1) Outstanding reimbursements due to the Property Acquisition
Law Money Account for costs incurred by the Department of
General Services in selling an armory property.

(2) All costs directly related to the disposition of an armory,
including, but not limited to, all costs and expenses incurred by
the Department of General Services, as specified in subdivision
(d).

(d) Notwithstanding subdivision (b), the Department of General
Services shall, upon appropriation by the Legislature, use funds
from the Property Acquisition Law Money Account for the
purposes of selling armory properties. The Director of Finance
may approve loans from the General Fund to the Property
Acquisition Law Money Account.

(e) The sale of an armory shall be made on an “as is” basis and
begin delete shall be end delete begin insert is end insert exempt from Division 13 (commencing with Section
21100) of the Public Resources Code. Upon vesting title of the
armory to the purchaser or transferee of the armory, the purchaser
or transferee shall be subject to any local governmental land use
entitlement requirements and to Division 13 (commencing with
Section 21100) of the Public Resources Code.

SEC. 2.  

Notwithstanding any other law and pursuant to Section
435 of the Military and Veterans Code, the Director of General
Services, with the approval of the Adjutant General, may sell any
of the following properties:

(a)  begin insert (1) end insert begin insert   end insert Approximately 1.53 acres of real property with
improvements made thereon, located at 340 North Orange Avenue,
Azusa, California, known as the Azusa-Orange Armory.

begin insert

(2) (A) The Director of General Services, with the approval of
the Adjutant General, shall grant to the City of Azusa an option
to purchase the Azusa-Orange Armory. The option shall expire on
July 1, 2016. The purchase agreement may consider the
contributory value of all capital improvements made to the
Azusa-Orange Armory by the City of Azusa less the value of
improvements made in lieu of rents during the term of the use of
the Azusa-Orange Armory by the City of Azusa, and any state costs
incurred in the sale of the Azusa-Orange Armory to the City of
Azusa.

end insert begin insert

(B) On and after July 1, 2016, the Azusa-Orange Armory shall
be offered for sale by general bid. Any purchase agreement
pursuant to this paragraph shall include terms and conditions
determined by the Director of General Services to be in the best
interest of the state based on the fair market value of the armory
as determined by an appraisal undertaken and approved by the
Department of General Services.

end insert

(b) Approximately 1.78 acres of real property with
improvements made thereon, located at 650 North Second Street,
Brawley, California, known as the Brawley Armory.

(c) Approximately 3.35 acres of real property with
improvements made thereon, located at 43-143 N. Jackson Street,
Indio, California, known as the Indio Armory.

(d) Approximately 1.03 acres of real property with
improvements made thereon, located at 11398 Bullis Road,
Lynwood, California, known as the Lynwood Armory.

(e) Approximately .50 acres of real property with improvements
made thereon, located at 600 South Park Avenue, Pomona,
California, known as the Pomona Park Armory.

(f) Approximately 3.03 acres of real property with improvements
made thereon, located at 700 E. Canon Perdido Street, Santa
Barbara, California, known as the Santa Barbara Armory.

(g) Approximately 1.34 acres of real property with
improvements made thereon, located at Route 1, Box 120, Yreka,
California, known as the Yreka Armory.