BILL ANALYSIS                                                                                                                                                                                                    Ó






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          | SENATE RULES COMMITTEE           |                       SB 1027|
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                                   THIRD READING 


          Bill No:  SB 1027
          Author:   Nielsen (R), et al.
          Amended:  4/6/16  
          Vote:     21 

           SENATE GOVERNANCE & FIN. COMMITTEE:  7-0, 3/30/16
           AYES:  Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach,  
            Pavley

          SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
           
           SUBJECT:   Parks:  property transfer


          SOURCE:    County of Tehama
                     Evergreen Union School District

          DIGEST:  This bill allows the County of Tehama to transfer  
          property previously acquired with state bond funds.

          ANALYSIS:  
          
          Existing law:

          1)Generally prohibits public entities, including local  
            governments, from acquiring parkland for non-park purposes  
            unless substitute parkland or equivalent compensation is  
            provided.  

          2)Authorizes the sale of general obligation bonds, as approved  
            by voters in 1974 and 2000, for parks purposes.

          3)Establishes the Roberti-Z'berg-Harris Urban Open-Space and  








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            Recreation Program, which requires DPR to make annual grants  
            to cities, counties, and districts for recreational purposes,  
            open-space purposes, or both, on the basis of population and  
            need.

          4)Requires, pursuant to the 1974 and 2000 Bond Acts and the  
            Roberti-Z'berg-Harris grant program, that grantees that  
            receive bond funds:

             a)   Agree to use the property only for the purposes for  
               which the grant was made.  
             b)   Not make any other use or sale or other disposition of  
               the property, except as authorized by a specific act of the  
               Legislature.  

          This bill allows the County of Tehama to transfer Noland Park to  
          the Evergreen Union School District if the following three  
          conditions are met:

          1)The county and the district must enter into an agreement with  
            DPR that transfers any obligations of the county under the  
            1974 Bond Act, Proposition 12, the Roberti-Z'berg-Harris  
            program, and grants entered into under those laws.  

          2)The district ensures that the property is maintained and  
            operated in perpetuity for park purposes.

          3)The recorded instrument transferring title from the county to  
            the district contains an express condition and covenant that  
            the property shall be used in perpetuity as a public park

          Background
          
          California voters have approved several bond acts that provide  
          funding for acquiring parkland.  In June 1974, voters approved  
          the State Beach, Park, Recreational, and Historical Facilities  
          Bond Act of 1974.  Among other provisions, the act provided $90  
          million for grants to cities and counties for the acquisition  
          and development of parkland through a grant program administered  
          by the state Department of Parks and Recreation (DPR).   
          Subsequently, voters approved Proposition 12, the Safe  
          Neighborhood Parks, Clean Water, Clean Air, and Coastal  
          Protection Bond Act of 2000, at the statewide primary election  
          in March of 2000.  Proposition 12 made funds available to local  







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          governments for the Roberti-Z'berg-Harris Urban Open-Space and  
          Recreation Program, which requires DPR to make annual grants to  
          cities, counties, and districts for recreational purposes,  
          open-space purposes, or both, on the basis of population and  
          need.

          Both the 1974 Bond Act and Proposition 12, as well as the  
          Robert-Z'berg-Harris program, require that grant recipients must  
          agree to use the property only for the purposes for which the  
          grant was made.  The grantee cannot make any other use or sale  
          or other disposition of the property, except as authorized by a  
          specific act of the Legislature.  If the use of the property  
          changes or the property is sold upon approval by the  
          Legislature, the grantee must either return the funds to the  
          state or use replacement funds for a purpose that is consistent  
          with the original grant.  The replacement funds can equal the  
          amount of the grant, the fair market value of the real property,  
          or the proceeds from the sale of the property, whichever is  
          greater.  Bond-funded grant programs incorporate these  
          requirements into their grant contracts.  

          Since 2001, the Legislature has allowed several local  
          governments to transfer park property acquired or developed with  
          state bond funds to other public entities for uses other than  
          parkland on the condition that the cities or entities provide  
          replacement property.

          Noland Park. In 1979, Tehama County received a grant of $29,425  
          from the 1974 Bond Act to acquire and develop Noland Park.  The  
          county received a subsequent grant of $32,000 from the  
          Roberti-Z'berg-Harris program, funded by Proposition 12, to  
          remove and replace outdated playground equipment and make other  
          improvements to play areas within the park.  Noland Park is  
          located directly between the elementary and middle schools for  
          the Evergreen Union School District, and in 1993 the county  
          leased the park to the district for 20 years.  Under the lease,  
          the school district was responsible for all maintenance and was  
          allowed to make capital improvements to the site; in return, the  
          school district received the first right to use the facilities  
          and schedule activities.  Accordingly, over the course of the  
          lease the district developed the park through upgrades of  
          fencing, sprinklers, a track and soccer field, spending more  
          than $189,000 in improvements and an additional $152,000 in  
          maintenance.  Since the lease's expiration in 2013, it has been  







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          renewed on an annual basis.  Local officials want to transfer  
          the park to the school district so the district can continue to  
          invest in the property.

          Comments
          
          Purpose of the bill.  Since 1993, the county and district have  
          cooperated to improve Noland Park and ensure that nearby  
          communities have access to safe and modern park facilities.  The  
          district has invested over $360,000 in improvements and  
          maintenance expenditures, and in return, children at the  
          adjacent schools have access to the park, while the general  
          public continued to be able to access the facilities.  The  
          school district has identified over $340,000 in additional  
          improvements it would like to undertake at the park in the next  
          20 years.  Transferring ownership in the property would  
          encourage the district to plan for and make longer term capital  
          investments in the park, but state law only allows such a  
          transfer to occur if the Legislature specifically authorizes it.  
           SB 1027 provides the needed legislative authorization.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          SUPPORT:   (Verified4/18/16)


          County of Tehama (co-source)
          Evergreen Union School District (co-source)


          OPPOSITION:   (Verified4/18/16)


          None received


          Prepared by:Anton Favorini-Csorba / GOV. & F. / (916) 651-4119
          4/20/16 15:39:01


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