BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2279
                                                                  Page  1

          Date of Hearing:   April 28, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 AB 2279 (Evans) - As Introduced:  February 18, 2010

          Policy Committee:                              Business and  
          Professions  Vote:                            7-4

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill:

          1)Authorizes the Director of General Services (DGS) to sell to  
            or exchange with Napa County, by January 1, 2015, at no less  
            than fair market value, 850 acres of state-owned property  
            constituting a portion of Napa State Hospital.

          2)Requires the terms of sale to require the county to retain  
            title to the entire parcel, for use as a park and wilderness  
            preserve, or, if the county subsequently sells any portion of  
            the property, to require that it be restricted to those uses. 

           FISCAL EFFECT  


          Based on an almost identical legislative proposal in 2007, DGS  
          estimated the value of the property at about $4 million.  
          Pursuant to Proposition 60A, which was passed by the voters in  
          November 2004, the proceeds of this sale, less DGS transaction  
          costs, will be used to pay off the state's Economic Recovery  
          Bonds.  In the event those bonds are already paid off at the  
          time of sale, the proceeds will go to the General Fund.


           COMMENTS  

           1)Purpose  .  According to the author's office, the 850-acre  
            property, known as Skyline Park and located on the grounds of  
            Napa State Hospital, was declared surplus in 1979 and has been  
            leased to Napa County since that time and operated as a public  








                                                                  AB 2279
                                                                  Page  2

            park, which includes recreational facilities, preserved  
            habitat, and gardens.  The state leases the property to the  
            county for $100 per year and the current lease expires in  
            2030. 

           2)Current law  requires that property declared surplus by the  
            state first be offered for local governments or nonprofit  
            housing sponsors intending to use the property for low and  
            moderate income housing, second priority for local governments  
            that will use the property for parks or open space, third  
            priority for use as local government-owned facilities,  
            followed in priority by private entities and individuals. 
           
          3)Prior Legislation  . This bill is almost identical to SB 678  
            (Wiggins) of 2007, which was vetoed because that bill did not  
            include a provision exempting the sale from the California  
            Environmental Quality Act (CEQA). Subsequently, ABX2 8  
            (Nestande)/Chapter 6 of 2009 exempted DGS from CEQA when  
            selling surplus state real property that is either made on an  
            "as is" basis or is otherwise subject to CEQA through local  
            government land use restrictions.

           


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