BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           2279 (Evans)
          
          Hearing Date:  8/2/2010         Amended: 7/15/2010
                                                                     As  
          proposed to be amended
          Consultant:  Bob Franzoia       Policy Vote: G O 8-1
          _________________________________________________________________ 
          ____
          BILL SUMMARY:  AB 2279 would authorize the Department of General  
          Services (DGS) to sell or exchange, at fair market value, all or  
          part of a specified parcel of state property to the County of  
          Napa, upon the terms and conditions DGS determines are in the  
          best interest of the state, by January 1, 2015.  This bill would  
          require any agreement for the sale or exchange of the property  
          to include a provision that requires the County of Napa to  
          retain title to the property for use as a park or wilderness  
          preserve, or in the event of a future sale of that property by  
          the county, require the county, by recorded easement, to limit  
          future uses of the property to a park or wilderness preserve.  
          This bill would require that any agreement for the sale or  
          exchange of the property preserve Napa State Hospital's  
          ownership and use of a specified area known as Camp Coombs.   
          This bill would require the net proceeds of any moneys received  
          from the disposition of the property to be paid into the Deficit  
          Recovery Bond Retirement Sinking Fund Subaccount, a continuously  
          appropriated fund, thereby making an appropriation. This bill  
          would permit the County of Napa to enter into an agreement with  
          a nonprofit land trust or nonprofit conservation entity for the  
          purpose of sharing the cost associated with the sale or exchange  
          authorized by this bill, provided all its other requirements are  
          met.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           Sale or lease of state One time revenue increase from sale  
          orGeneral*
          property               exchange, less that fair market value to
                                 the extent specified sale conditions
                                 reduce potential bidder interest
                                                                  
          * Deficit Recovery Bond Retirement Sinking Fund Subaccount










          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill may meet the criteria for referral to  
          the Suspense File.
           
          The fiscal impact of this bill would be a one time revenue  
          increase from the sale or exchange though the conditions that  
          Napa County retain title and that part of the property will  
          remain in Napa State Hospital ownership may result in a  
          reduction of the property's true fair market value.  However,  
          the location of the property may discourage the interest of  
          potential bidders.

          Staff notes the proposed amendment would declare the property  
          surplus.