BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 536


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          SENATE THIRD READING


          SB  
          536 (Roth)


          As Amended  July 8, 2015


          Majority vote


          SENATE VOTE:  40-0


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Accountability  |9-0  |Salas, Lackey,        |                    |
          |                |     |Brough, Burke,        |                    |
          |                |     |Frazier, Beth Gaines, |                    |
          |                |     |Irwin, Medina,        |                    |
          |                |     |Rodriguez             |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Veterans        |9-0  |Irwin, Mathis, Alejo, |                    |
          |Affairs         |     |Brough, Brown,        |                    |
          |                |     |Chávez, Daly,         |                    |
          |                |     |Frazier, Salas        |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |17-0 |Gomez, Bigelow,       |                    |
          |                |     |Bloom, Bonta,         |                    |
          |                |     |Calderon, Chang,      |                    |
          |                |     |Nazarian, Eggman,     |                    |








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          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Holden,       |                    |
          |                |     |Jones, Quirk, Rendon, |                    |
          |                |     |Wagner, Weber, Wood   |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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          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.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, based on DGS's estimated average cost of $25,000 per  
          site to sell other armory properties, total estimated costs are  
          $175,000.  These costs will be borne by the Property Acquisition  
          Law Account and subsequently reimbursed from armory sale  
          proceeds.  Per current law, the net proceeds from the sale will  
          be deposited into the Armory Fund and, upon appropriation by the  
          Legislature, must be used for the maintenance of existing  
          armories and the acquisition and construction of new armories.








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          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:


          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 0.50 acres of real property with improvements  








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            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.


          For the sale of the Azusa site, this bill allows DGS with the  
          approval of the Military Department to grant to the City of  
          Azusa an option to purchase the armory, as specified.  The  
          option shall expire on July 1, 2016, after which the armory  
          shall be offered for sale at fair market value.  Currently, the  
          City of Azusa leases the armory and uses it as a community  
          center.


          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  
          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.




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








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          FN: 0001623