BILL ANALYSIS
AB 600
Page 1
GOVERNOR'S VETO
AB 600 (Hall)
As Amended April 2, 2009
2/3 vote
BUSINESS & PROFESSIONS 8-3 APPROPRIATIONS 11-5
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|Ayes:|Hayashi, Conway, Eng, |Ayes:|De Leon, Ammiano, Charles |
| |Hernandez, Nava, John A. | |Calderon, Krekorian, |
| |Perez, Price, Ruskin | |Fuentes, Monning, |
| | | |John A. Perez, Price, |
| | | |Skinner, Solorio, |
| | | |Torlakson |
| | | | |
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|Nays:|Emmerson, Niello, Smyth |Nays:|Nielsen, Duvall, Harkey, |
| | | |Miller, Audra Strickland |
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ASSEMBLY: 58-17 (May 11, 1009) SENATE:
36-0(August 31, 2009)
SUMMARY : Authorizes the Department of General Services (DGS) to
lease state-owned property, the Compton Armory, to the City of
Compton (Compton) at fair market value for a period not to
exceed five years, with an option to extend the lease to 25
years. Specifically, this bill :
1)Permits DGS, until January 1, 2012, with the approval of the
Adjutant General (AG), to lease the Compton Armory,
approximately 4.5 acres of land located at 2320 Parmelee
Avenue, Compton, Los Angeles County, to Compton at fair market
AB 600
Page 2
value and for a period of five years.
2)Permits DGS, with the approval of the AG, to either renew the
initial lease, or make lease agreements with other parties at
fair market value, of the Compton Armory. The term of the
leases, separately or cumulatively, shall not exceed 25 years.
3)Requires Compton to submit any proposals for improvements to
DGS and the AG for approval.
4)Permits the AG to reduce the amount of the annual lease
payment in accordance with the cost of improvements.
5)Requires the proceeds of the lease to be deposited into the
Armory Fund.
6)Requires Compton to reimburse DGS for its actual costs in
drafting, negotiating, and executing the lease documents.
7)Contains an urgency clause, allowing this bill to take effect
immediately upon enactment.
EXISTING LAW :
1)Authorizes DGS to develop and review an inventory of property
surplus to the needs of the state in portions or their
entirety, and allows DGS, subject to legislative approval, to
sell, lease, exchange, or transfer various specified
properties for current market value, or upon terms and
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conditions as DGS determines are in the best interests of the
state.
2)Establishes criteria for state agencies to use in determining
and reporting excess lands. The law requires a state agency
to include:
a) Land not currently being utilized, or currently being
underutilized, for any existing or ongoing program;
b) Land for which the agency has not identified any
specific utilization relative to future needs; and,
c) Land not identified by the agency within its master plan
for facility development.
3)Authorizes the Director of DGS, with the consent of the state
agency concerned, to let for a period not to exceed five
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 leases of state land for periods
exceeding five years. Existing law provides exemptions to the
five year limit for specified parcels.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, probably minor annual revenue to the Armory Fund.
DGS has not yet determined a fair market lease value for the
property.
COMMENTS : According to the author's office, "In November 2006,
the California National Guard vacated the sixty year old Armory
located in Compton, California. The four and a half acre site
within the City of Compton has sat underutilized and in a state
of disrepair for nearly three years. The City of Compton is
interested in utilizing the property to further serve the
residents of Compton and would like the option of entering into
a lease with the state in order to achieve this goal.
"Without explicit legislative authority, a lease of the Armory
property cannot be entered into for a period of more than five
AB 600
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years. Such a short period of time would make it unlikely that
the city would realize a return on the investment needed to make
renovations to the property."
Various individual statutes have been enacted over the years to
allow the state to lease specific parcels of state property in
excess of five years. These include varying durations ranging
from 10 years to 66 years. For the most part, these leases
require the state to review the terms and conditions every five
years to ensure the state's interests are protected.
As noted above, existing law limits the length for which the
state may lease its own real property to private or other
entities to not more than five years. Any lease for longer than
five years requires specific statutory authority. This bill is
consistent with provisions of existing law.
GOVERNOR'S VETO MESSAGE :
"This bill is unnecessary. Current law already authorizes the
Department of General Services to enter into long-term leases on
State-owned land that may have some potential future use to the
program needs."
Analysis Prepared by : Ross Warren / B. & P. / (916) 319-3301
FN: 0003317