BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 256
                                                                  Page  1

          Date of Hearing:   August 19, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   SB 256 (Aanestad) - As Amended:  July 23, 2009 

          Policy Committee:                              Business and  
          Professions  Vote:                            11-0 (Consent)

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill authorizes the Department of General Services (DGS) to  
          lease, sell, or exchange a parcel of state property in Chico  
          (Butte County). Specifically, this bill: 

          1)Authorizes the lease, sale, or exchange of a 1.7-acre parcel  
            currently used by the California Highway Patrol (CHP) as its  
            Chico area office.

          2)Requires the property to be offered (a) to the City of Chico  
            for use as a local government facility, and, if an agreement  
            with the city cannot be reached within 120 days, then (b) to  
            the public through a competitive process.

          3)Requires that the disposition be at not less than fair market  
            value, pursuant to an independent appraisal approved by DGS,  
            or through the competitive process.

          4)Requires DGS to be reimbursed, for costs incurred in the  
            disposition process, from the proceeds of the disposition.

          5)Stipulates that any proceeds from the disposition be used only  
            to provide replacement facilities for the CHP in the Chico  
            area.
           
          FISCAL EFFECT  

          1)Minor costs of around $30,000 for DGS to administer the  
            property disposition through lease, sale, or exchange,  
            reimbursed from proceeds of a property sale or from CDF in the  
            case of a lease or exchange.








                                                                  SB 256
                                                                  Page  2


          2)Any net revenue to the state from a sale of the property would  
            presumably be used to offset the costs of a replacement site  
            and facilities for a new CDF unit headquarters. DGS does not  
            have an appraised value of the property.

           COMMENTS  

           1)Purpose  .  According to the author's office, because of  
            deteriorating and cramped conditions, the CHP in Chico is  
            considering a new facility, which is part of the department's  
            five-year infrastructure plan.  The current site, while  
            inadequate to accommodate the proposed new facility, is  
            surrounded by city owned property.  The author contends that  
            selling the property to the city would benefit both agencies,  
            as the city hopes to use the property to expand their existing  
            police headquarters.

           2)Related Legislation  .  SB 178 (Aanestad), also on today's  
            committee agenda, authorizes DGS to sell, lease, or exchange  
            of a three-acre parcel in Redding (Shasta County) currently  
            used by the Department of Forestry and Fire Protection (CDF)  
            as its Shasta-Trinity Unit Headquarters.

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