BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 536


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          Date of Hearing:  July 1, 2015


           ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW


                                  Rudy Salas, Chair


          SB  
          536 (Roth) - As Amended May 5, 2015


          SENATE VOTE:  40-0


          SUBJECT:  Armories.


          SUMMARY:  Allows the Department of General Services (DGS) with  
          the approval of the Adjutant General of the California Military  
          Department (Military Department) to sell seven specified armory  
          properties and sets terms for how the costs of the sales will be  
          paid.


          EXISTING LAW: 


          1)Authorizes the Director of DGS, with the approval of the  
            Adjutant General, to lease and sell armories, subject to  
            approval by the Legislature.


          2)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.









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          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee:





          1)Administrative costs of up to $140,000 (General Fund)



          2)DGS estimates the selling expenses for each of the seven  
            armories at about $20,000.  The funds will come from the  
            Property Acquisition Law Money Account (PAL) which will be  
            reimbursed from the sale of each property.  Generally, money  
            is loaned from the General Fund to the PAL and is then  
            reimbursed upon the sale of the property.  The excess revenue  
            from the sale is deposited into the Armory Fund.



          COMMENTS:  This bill, which is sponsored by the Military  
          Department, allows DGS with the approval of the Military  
          Department to sell seven armory sites.  Armories are the primary  
          sites for unit training and are integral to the readiness and  
          responsiveness of National Guard personnel.  The Military  
          Department has approximately 100 active armory sites throughout  
          the state.


          The Military Department has identified the sites specified in  
          this bill as obsolete, stating that "these aged, undersized  
          armories have decayed to a point where their ongoing maintenance  
          costs far outweigh their utility."


          This bill authorizes the sale of the following armories:









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          1)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.
          2)Approximately 1.78 acres of real property with improvements  
            made thereon, located at 650 North Second Street, Brawley,  
            California, known as the Brawley Armory.


          3)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.


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


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


          6)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.


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


          This bill also specifies how the costs to sell the armories will  
          be funded.  It requires DGS to pay expenses for the sales costs  
          from the Property Acquisition Law Money Account (PAL), an  
          existing fund in the State Treasury that supports the management  
          of the State's real property assets.  Proceeds from the sales  








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          would reimburse the PAL for the sales costs and the remainder  
          would be deposited into the Armory Fund.  Money in this fund,  
          upon appropriation by the Legislature, can be used to maintain  
          existing armories and to acquire and build new or replacement  
          armories.


          PRIOR LEGISLTATION: 


          SB 1580 (Committee on Governmental Organization, Chapter 798,  
          Statutes of 2012) authorizes the sale of specified armories and  
          requires the proceeds from the sales to be deposited in the  
          Armory Fund.       

          DOUBLE REFERRAL: Should this bill pass the committee, it will be  
          referred to the Assembly Veterans Affairs Committee. 

          REGISTERED SUPPORT / OPPOSITION:




          Support


          Military Department (sponsor)




          Opposition


          None on file












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          Analysis Prepared by:Scott Herbstman / A. & A.R. / (916)  
          319-3600