BILL NUMBER: AB 151	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 25, 2010
	PASSED THE ASSEMBLY  AUGUST 26, 2010
	AMENDED IN SENATE  AUGUST 20, 2010
	AMENDED IN SENATE  AUGUST 17, 2010
	AMENDED IN SENATE  AUGUST 2, 2010
	AMENDED IN ASSEMBLY  JANUARY 26, 2010
	AMENDED IN ASSEMBLY  SEPTEMBER 10, 2009

INTRODUCED BY   Assembly Member Jones
   (Principal coauthor: Senator Runner)

                        JANUARY 23, 2009

   An act to amend Section 15621 of, and to add Section 14673.12 to,
the Government Code, relating to state property.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 151, Jones. Department of General Services: authorization.
   Existing law authorizes the Department of General Services to
acquire and convey real property for the state, whenever that
transfer of the real property is authorized or contemplated by law.
   This bill would require the Director of General Services to
conduct a study to determine whether it is in the best interest of
the state to sell or lease specified real property in the City of
Sacramento owned by the state, and to report its findings to the
Legislature no later than April 1, 2011. The bill would authorize the
director, after making this determination, to sell, exchange, lease,
or any combination thereof, all or a portion of the property. This
bill would also require the director to use the revenues resulting
from any sale, exchange, or lease of the property to pay off the
total outstanding loan on the property, including any obligations
associated with it, as specified.
   The California Constitution requires that the proceeds from the
sale of surplus state property be used to pay the principal and
interest on specified bonds and, once those bonds are fully paid, be
deposited into the Special Fund for Economic Uncertainties.
   This bill would specify that the proceeds from the sale of the
state property authorized by the bill, for purposes of this provision
of the California Constitution, are the revenues resulting from the
sale that are in excess of the amount necessary to satisfy the
outstanding loan on the property.
   Existing law authorizes the State Board of Equalization to hire or
lease any property, real or personal, for its occupancy or use in
the performance of its duties, upon the written approval of the
Department of General Services.
   This bill would, instead, authorize the board to hire or lease any
property for its occupancy or use in the performance of its duties,
if the Department of Finance determines that the related
transactions, in total, are cost beneficial to the General Fund. This
bill would further authorize the board to exercise prescribed
powers, including, among others, acquiring new facilities through
lease of real or personal property in its own name, maintaining
offices, storage, and parking facilities, and negotiating, making,
and executing contracts and all other instruments necessary or
convenient for the exercise of its powers and functions pursuant to
specified law provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 14673.12 is added to the Government Code, to
read:
   14673.12.  (a) The Legislature finds and declares all of the
following:
   (1) Located in the City of Sacramento, the state owns
approximately 449,138 square feet of office space, with improvements,
on city blocks bounded by "N" Street on the north, 5th Street on the
east, "O" Street on the south, and 4th Street on the west, that is
currently used for state offices, including offices of the State
Board of Equalization.
   (2) For purposes of this section, the real property described in
paragraph (1) shall be referred to as the "Sacramento Property."
   (3) Allowing the State Board of Equalization to move out of the
Sacramento Property permanently and to consolidate its operations
into one location will accommodate any future growth as part of its
revenue-administrative mission.
   (b) The Director of General Services shall conduct a study to
determine whether it is in the best interest of the state to sell the
Sacramento Property or to lease the property to another state
tenant. The director shall report to the Legislature on the most
cost-effective option for the state. The director shall consider the
timeframe to sell or lease the Sacramento Property in conjunction
with the timely relocation of the State Board of Equalization
headquarters operation. The director shall report his or her findings
to the Legislature no later than April 1, 2011.
   (c) (1) Upon the Director of General Services making the
determination specified in subdivision (b) that the Sacramento
Property should be either sold or leased to another state tenant, the
director may sell, exchange, lease, or any combination thereof, all
or a portion of the Sacramento Property. Subject to the requirements
of Section 9 of Article 3 of the California Constitution, the
director shall use the revenues resulting from any sale, exchange, or
lease to pay off the total outstanding loan on the Sacramento
Property, including accrued interest and any other obligations
associated with the Sacramento Property.
   (2) In the event that the director sells the Sacramento Property
and the sale constitutes a sale of surplus state property for
purposes of Section 9 of Article III of the California Constitution,
the "proceeds from the sale" for purposes of that section shall be
the revenues from the sale in excess of the amount necessary to
satisfy the total outstanding loan on the Sacramento Property, as
required by paragraph (1).
   (d) (1) The requirement for submitting a report imposed under
subdivision (b) shall be inoperative on April 1, 2015, pursuant to
Section 10231.5.
   (2) The report required pursuant to subdivision (b) shall be
submitted in compliance with Section 9795.
  SEC. 2.  Section 15621 of the Government Code is amended to read:
   15621.  If the Department of Finance determines that the related
transactions, in total, are cost beneficial to the General Fund,
then, notwithstanding any other provision of law, the board may hire
or lease any property, real or personal, for its occupancy or use in
the performance of its duties and shall have all of the following
powers:
   (a) To maintain offices, storage, and parking facilities at any
place or places within and outside the state, which it may designate.

   (b) To negotiate, make, and execute contracts and all other
instruments necessary or convenient for the exercise of its powers
and functions under this part. Contracts made or executed under the
authority of this part shall not be subject to any applicable
provision of law requiring the supervision or approval of another
division or officer of state government.
   (c) To acquire new facilities through lease of real or personal
property, or any interest therein, on either a temporary or long-term
basis in its own name.
   (d) The board shall first consider the utilization of existing
state-owned, state-leased, or state-controlled facilities before
considering the leasing of additional facilities. If no available and
appropriate state facilities exist, the board may not, absent
legislative approval in the Budget Act, procure new facilities to
meet the agency's needs. If legislative approval is given in the
Budget Act, the agency shall, in procuring new facilities, use cost
efficiency as a primary criterion, among other agency-specific
criteria, as applicable.
   (e) To do any and all things necessary to carry out its purposes
and exercise the powers expressly granted by this part.