BILL ANALYSIS Ó SB 536 Page 1 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, | | SB 536 Page 2 | | |Gallagher, Eduardo | | | | |Garcia, Holden, | | | | |Jones, Quirk, Rendon, | | | | |Wagner, Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------ 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. SB 536 Page 3 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 SB 536 Page 4 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 SB 536 Page 5 FN: 0001623