BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 240
                                                                  Page  1

          Date of Hearing:   April 1, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                AB 240 (Monning) - As Introduced:  February 10, 2009 

          Policy Committee:                              Business and  
          Professions  Vote:                            10-0 (Consent)

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill modifies the terms of a previously authorized  
          disposition of state-owned and state-leased real property in the  
          City of Santa Cruz.

           FISCAL EFFECT  

          Negligible fiscal impact. The bill only changes the mechanism of  
          a previously authorized disposition.

           COMMENTS  

           1)Background  . The state received 122 acres of the DeLaveaga  
            property in 1899 as a donation from the City for use by the  
            state National Guard. In 1967, the City leased an 83-acre  
            portion of this state-owned parcel for use as a part of a golf  
            course. (The remainder of the DeLaveaga property is city-owned  
            and used for the golf course and other recreation purposes.)  
            In return, the state leased from the City a separate, 98-acre  
            portion of the DeLaveaga property. (In reality, the state has  
            never used this open space parcel for any purpose.)

            SB 770 (McPherson)/Chapter 188 of 1999, obligated the state to  
            immediately transfer the 83-acre golf course site to the City.  
            When it is no longer needed by the Military Department, the  
            remainder of the state-owned land (about 39 acres) would also  
            return to the City at no cost, but only for public recreation  
            purposes. As compensation for the 83 acres, the City would  
            transfer to the state the 98-acre parcel currently leased to  
            the state. Due to a number of circumstances, that bill was not  
            implemented. Both the City and DGS have reinstituted  








                                                                  AB 240
                                                                  Page  2

            discussions on effectuating a transfer.

           2)Purpose  . AB 240 would restructure the provisions of SB 770 as  
            follows:

             a)   Instead of the city giving the 98 acres of essentially  
               vacant land to the state, the city quitclaims its rights to  
               the other (39-acre) state-owned parcel.

             b)   The city would obtain first right on the 39-acre  
               state-owned property (when no longer needed by the state),  
               through sale or lease, and for public recreation purposes.  
               The bill also clarifies that the city could continue using  
               the armory building as a homeless shelter. 

             c)   If the city did not exercise this right, then the state  
               could sell or lease to another party, but the land would  
               still have to be used for public recreation purposes.

           3)Prior Legislation  . This bill is almost identical to AB 1438  
            (Laird) of 2006 and AB 2472 (Laird) of 2008, which were both  
            vetoed because the governor objected that neither bill   
            included a provision exempting the property disposition from  
            review under the California Environmental Quality Act (CEQA).   
            The governor has used a similar argument to veto several  
            surplus state property bills in recent years.  However, ABX2 8  
            (Nestande)/Chapter 6 of 2009, a trailer bill to the recently  
            enacted 2009-10 Budget Act, established a permanent CEQA  
            exemption for state surplus property sales in a manner that  
            presumably addresses the governor's concerns.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081