BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 136|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: SB 136
Author: Huff (R), et al
Amended: 4/13/09
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 10-0, 4/28/09
AYES: Wright, Harman, Benoit, Calderon, Denham, Florez,
Oropeza, Wiggins, Wyland, Yee
NO VOTE RECORDED: Negrete McLeod, Padilla, Vacancy
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : State real property
SOURCE : Department of General Services
DIGEST : This bill is the annual surplus property bill
that authorizes the Department of General Services to
dispose of all or any portion of three parcels of real
property pursuant to existing provisions of the government
Code pertaining to surplus state property.
ANALYSIS : Existing law generally requires the Department
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 requires the Director of DGS to request
authorization by the Legislature prior to the disposition
by sale or otherwise of state land reported to it by a
CONTINUED
SB 136
Page
2
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 or as may
otherwise be authorized by law.
Existing law 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, DGS is
responsible for determining if surplus land is needed by
any other state agency. Existing law (Government Code
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. Existing law also prescribes the procedure for
local agencies and nonprofit affordable housing sponsors to
use to obtain the surplus state real property.
Existing law specifies that the Legislature may authorize a
particular surplus property be sold at less than fair
market value and provides that 30 days prior to executing
such a transaction, DGS must report to the chairs of the
fiscal committees of the Legislature the following
information: (a) the financial terms of the transaction;
CONTINUED
SB 136
Page
3
(b) a comparison of fair market value for the property and
financial terms; (c) the basis for agreeing to terms and
conditions other than fair market value.
Existing law [Government Code 11011 (k) (1) and (2)]
contains provisions exempting the sale of surplus property
from designated provisions of the California Environmental
Quality Act (CEQA). Specifically, the law provides that
any disposition of a parcel of surplus property made on an
"as-is" basis shall be exempt from statutory requirements
of CEQA; however, the law makes it explicit that the buyer
or transferee of a parcel shall be subject to any local
governmental entitlement or land use approval requirements
and CEQA.
Furthermore, existing law provides that if any transaction
is not on an "as-is" basis sale and close of escrow is
contingent on satisfying any local governmental approvals
for entitlement or land use requirements, including
compliance by the local government with CEQA, then the
execution of the purchase and sale agreement or exchange
agreement is exempt from CEQA.
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 authorizes DGS to dispose of the following state
property:
1. Parcel #1, consisting of approximately 2.76 acres, known
as the Harts Mills Forest Fire Station (Old), located at
9476 Oro-Quincy Highway, in Berry Creek, Butte County.
2. Parcel #2, consisting of approximately 47 acres, known
as the Mendocino Ranger Station Excess Land, located at
17501 North Highway 101, in Willits, Mendocino County.
3. Parcel #3, consisting of an approximately six-acre
portion of the 18-acre parcel, known as the South
CONTINUED
SB 136
Page
4
Carlsbad State Beach, located near El Arbol Drive and
Manzano Drive, in Carlsbad, San Diego County.
Background
This bill is the annual surplus property bill sponsored by
the Department of General Services (DGS). Existing law
requires all state agencies to annually review all
proprietary state lands and determine if any lands are in
excess of their needs, then report this information to the
director of DGS. In turn, DGS is required to annually
report to the Legislature the lands declared excess and
request authorization to dispose of the land by sale or
otherwise. Specifically, this measure would authorize the
Director of DGS to dispose of three specified parcels
pursuant to Section 11011.1 of the Government Code.
California Environmental Quality Act (CEQA) Exemption: The
ability to get excess properties declared surplus by the
Legislature has been impeded these past few years by a
disagreement between the Legislature and the Administration
regarding the removal of a statutory exemption for the
State's surplus properties from the requirements of CEQA.
This disagreement has at least for now been resolved with
enactment of AB 8XX (Nestande), Chapter 6, Statute of 2009,
that places within Section 11011 of the Government Code an
ongoing CEQA exemption for all properties declared surplus
by the Legislature.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/12/09)
Department of General Services (source)
Howard Jarvis Taxpayers Association
ARGUMENTS IN SUPPORT : Writing in support of this bill,
the Howard Jarvis Taxpayers Association indicates the State
should do everything possible to sell this property for a
fair price. The Association believes "this simple step
will reduce government and ensure that California has
enough revenue to meet truly pressing needs during this
recession."
CONTINUED
SB 136
Page
5
TSM:do 5/12/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED