BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 600|
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THIRD READING
Bill No: AB 600
Author: Hall (D), et al
Amended: 4/2/09 in Assembly
Vote: 27 - Urgency
SENATE GOVERNMENTAL ORG. COMMITTEE : 10-0, 7/8/09
AYES: Wright, Harman, Benoit, Calderon, Denham, Florez,
Negrete McLeod, Padilla, Price, Yee
NO VOTE RECORDED: Oropeza, Wiggins, Wyland
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 58-17, 5/11/09 - See last page for vote
SUBJECT : Surplus state property: Compton Armory
SOURCE : Author
DIGEST : This bill grants the Director of the Department
of General Services the authority to lease the Compton
Armory to the City of Compton at fair market value.
ANALYSIS : Existing law generally requires the Director
of General Services (DGS) to perform various functions with
respect to state property and provides for the sale, lease,
or transfer of surplus state property.
Existing law (Government Code Section 11011) requires the
Director of DGS to request authorization by the Legislature
prior to the disposition by sale or otherwise of state land
CONTINUED
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reported to it by a state agency as being in excess of its
foreseeable needs. Each state agency is required to
annually review proprietary state lands under its
jurisdiction to determine what lands are in excess of the
agency's foreseeable needs and to report to DGS.
This annual review of proprietary state lands does not
apply to tax-deeded land, land held for highway purposes,
lands under the jurisdiction of the State Lands Commission,
land that has escheated to the state or that has been
distributed to the state by a court decree in estates of
deceased persons, and lands under the jurisdiction of the
State Coastal Conservancy. Jurisdiction of all land
reported as excess is transferred to DGS, when requested by
the Director of DGS, for sale or disposition under Section
11011 or as may otherwise be authorized by law.
Section 11011 of the Government Code provides criteria for
state agencies to use in determining and reporting to DGS
lands in excess of the agency's foreseeable needs. A state
agency is to include land not currently being utilized, or
currently being underutilized, for any existing or ongoing
program; land for which the agency has not identified any
specific utilization relative to future needs; and land not
identified by the agency within its master plan for
facility development.
Where applicable within its jurisdiction under Section
11011, DGS is responsible for determining if surplus land
is needed by any other state agency. Section 11011.1
requires the state to first offer surplus state real
property to local agencies, and next, to offer the property
to nonprofit affordable housing sponsors, as defined, prior
to offering the property to private entities. This section
of law also prescribes the procedure for local agencies and
nonprofit affordable housing sponsors to use to obtain the
surplus state real property.
Existing law authorizes the Director of DGS, with the
consent of the state agency concerned, to let for a period
not to exceed 5 years, any real or personal property
belonging to the state, if the director deems the letting
is not expressly prohibited by law and is in the state's
best interest. Legislative authority is required for
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leases of state land for periods exceeding five years.
Existing law provides exemptions to the 5 year limit for
specified parcels.
Existing law authorizes DGS, with the approval of the
Adjutant General, to lease for fair market value (up to 99
years) any real property held for armory purposes, subject
to approval in statute by the Legislature. Existing law
also requires that the proceeds from the sale or lease of
armories be used for maintenance of existing armories and
acquisition or construction of new armories.
Proposition 60A of November 2004 (SCA 18, Johnson,
Resolution Chapter 103/04) which was adopted by the
electorate (73 percent margin) requires, among other
things, that the proceeds from the sale of surplus state
property, with specified exceptions, be used to pay the
principal and interest on the Economic Recovery Bond Act of
2004.
This bill:
1.Authorizes DGS, until January 1, 2012, with the approval
of the Adjutant General, to lease the Compton Armory,
consisting of approximately 4.5 acres of land located at
2320 Parmelee Avenue, Compton, Los Angeles County, to the
City of Compton at fair market value and for a period of
five years.
2.Permits DGS, with the approval of the Adjutant General,
to either renew the initial lease, or make lease
agreements with other parties at fair market value, of
the Compton Armory and provides that the term of the
leases, separately or cumulatively, shall not exceed 25
years.
3.Requires the City of Compton to submit any proposals for
improvements, including modifications and refurbishments,
to DGS and the Adjutant General for approval.
4.Permits DGS to reduce the amount of the annual lease
payment in accordance with the cost of improvements, as
determined by the Adjutant General.
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5.Requires that proceeds from the lease be deposited into
the Armory Discretionary Improvement Fund.
6.Requires the City of Compton to reimburse DGS for its
actual costs in drafting, negotiating, and executing the
lease documents.
Comments
According to the author's office, the California National
Guard vacated the 60-year-old armory in Compton in November
2006. The 4.5-acre site has remained underutilized and in
a state of disrepair for nearly three years. The City is
interested in using the property to further serve its
residents and would thus like the option of leasing the
site for a longer term than the five year limit under
current law. The City believes that without a longer lease
period it would be unlikely that the City could realize a
return on the investment needed to renovate the armory.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 7/20/09)
City of Compton
ASSEMBLY FLOOR :
AYES: Ammiano, Arambula, Beall, Bill Berryhill, Block,
Blumenfield, Brownley, Buchanan, Caballero, Charles
Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De
La Torre, De Leon, Eng, Evans, Feuer, Fletcher, Fong,
Fuentes, Furutani, Galgiani, Gilmore, Hagman, Hall,
Hayashi, Hernandez, Hill, Huber, Huffman, Jones,
Krekorian, Lieu, Bonnie Lowenthal, Ma, Mendoza, Monning,
Nava, Nestande, John A. Perez, V. Manuel Perez,
Portantino, Price, Ruskin, Salas, Saldana, Skinner,
Solorio, Audra Strickland, Swanson, Torres, Torrico,
Yamada, Bass
NOES: Adams, Anderson, Tom Berryhill, Blakeslee, Duvall,
Fuller, Gaines, Garrick, Harkey, Jeffries, Knight, Logue,
Miller, Niello, Nielsen, Silva, Smyth
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NO VOTE RECORDED: DeVore, Emmerson, Torlakson, Tran,
Villines
TSM:nl 8/11/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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