BILL ANALYSIS
AB 2438
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Date of Hearing: May 4, 2010
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 2438 (Hagman) - As Amended: April 26, 2010
SUBJECT : State lands: lease.
SUMMARY : Authorizes the Department of General Services (DGS)
to lease real property adjacent to the California Institute for
Men (CIM) at Chino. Specifically, this bill :
1)Authorizes DGS to lease real property adjacent to the CIM at
Chino.
2)Requires 50% of proceeds from the lease to be deposited in the
General Fund (GF).
3)Requires 50% of proceeds from the lease to be allocated to the
Department of Corrections and Rehabilitation (CDCR) in the
annual Budget Act.
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
conditions as DGS determines are in the best interests of the
state.
2)Authorizes DGS to lease excess real property under the
jurisdiction of a state agency, department, or district
agricultural association, unless otherwise specified, and
requires DGS to deposit net proceeds from the lease into the
GF.
3)Authorizes DGS, with the approval of the Adjutant General and
Legislature, to lease or sell real property held for armory
purposes, and requires all proceeds to be deposited in the
Armory Fund for the maintenance of armories and used upon
appropriation by the Legislature.
AB 2438
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FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author's office, "AB
2438 clears the hurdles involved in creating a land lease
program with the property held by CDCR in Chino. This bill
would require a master plan be created by CDCR for the land
around CIM. The funds generated from the lease of the surplus
land would be allocated 50% to the state GF and 50% to the CDCR
budget. A program like this will allow the state and the
prisons to benefit from the development of property currently
without a purpose.
"This legislation gives CDCR a way to upgrade its current
facilities and not lose the potential benefit of the surplus
property to the GF. If CDCR were to sell this land, [all] the
revenue generated from the sale would go directly into the GF.
[The] land lease agreement [in this bill] could be used to keep
some of the money within [CDCR]."
Background . Existing law already authorizes DGS to lease excess
property under the jurisdiction of CDCR. ABX4 22 (Evans),
Chapter 20, Statutes of 2009, authorizes DGS to lease excess
real property under the jurisdiction of a state agency,
department, or district agricultural association, unless
otherwise specified, and requires DGS to deposit net proceeds
from the lease into the GF. It is unnecessary to authorize DGS
to lease excess (state) property since that authorization is
duplicative of existing law. CDCR has not declared excess land
parcel at CIM to lease and the current language in this bill
references an unspecified land parcel to lease.
While the author's office asserts that "bill would require a
master plan be created by CDCR for the land around CIM," since
January 2010, CDCR has already been in the process of drafting a
master plan on the utilization of excess property at CIM,
including the potential for land development. Until that master
plan is finalized; it is unclear what direction CDCR will
proceed with any land parcel under its jurisdiction.
The net effect of the bill would not grant DGS any new
authority, but would require half of the proceeds from a lease
to be directed to CDCR. Current law requires DGS to deposit all
proceeds from leasing excess state property into the GF. The
AB 2438
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current language in this bill instead requires that half of the
proceeds from leasing the unspecified parcel adjacent to CIM, be
allocated to CDCR in the annual Budget Act. This is a revision
of the current mandate under ABX4 22.
Previous Legislation . ABX4 22 (Evans), Chapter 20, Statutes of
2009, authorizes DGS to lease excess real property under the
jurisdiction of a state agency, department, or district
agricultural association, unless otherwise specified, and
requires DGS to deposit net proceeds from the lease into the GF.
AB 1273 (Hagman) of 2009 authorizes DGS to lease real property
adjacent to the CIM at Chino, and requires all funds received
from the lease to be deposited into the GF. This bill was held
in the Assembly Business and Professions Committee.
AB 625 (Vicenia), Chapter 296, Statutes of 1983, authorizes DGS,
with the approval of the Adjutant General and Legislature, to
lease or sell real property held for armory purposes, and
requires all proceeds to be deposited in the Armory Fund for the
maintenance of armories and used upon appropriation by the
Legislature.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916)
319-3301