BILL ANALYSIS
Bill No: SB
1167
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
SB 1167 Author: Cogdill
As Amended: March 22, 2010
Hearing Date: April 13, 2010
Consultant: Art Terzakis
SUBJECT
Surplus State Property
DESCRIPTION
SB 1167 is the annual surplus property bill, sponsored by
the Department of General Services (DGS), that authorizes
DGS to dispose of all or any portion of the following two
parcels of real property pursuant to existing provisions of
the Government Code pertaining to surplus state property:
1. Approximately 2.59 acres, known as the Veterinary
Laboratory for the Department of Food and Agriculture,
located at 2789 South Orange Avenue, in Fresno, Fresno
County. (Estimated value $300,000 to $400,000)
2. Approximately 1.10 acres, known as the Field Office for
the Department of Motor Vehicles, located at 222 Harding
Boulevard, in Roseville, Placer County. (Estimated value
$750,000 to $1.2 million
EXISTING LAW
Existing law generally requires the Director of 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
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by sale or otherwise of state land reported to it by a
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;
(b) a comparison of fair market value for the property and
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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.
Existing law requires DGS to maintain a complete and
accurate inventory of all real property held by the state
and categorize that inventory by agency and geographic
location. The law also requires DGS to update the
inventory annually.
Proposition 60A of November 2004 (SCA 18, Johnson,
Resolution Chapter 103/04) which was adopted by the
electorate (73% 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.
BACKGROUND
Summary: This measure 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, except as specified, 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, pursuant to Section
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11011.1 of the Government Code.
The two parcels identified for disposal are the Fresno Food
and Agriculture Laboratory and the Department of Motor
Vehicles Field Office in Roseville. According to the
author's office, the Department of Food and Agriculture
closed the Fresno Food and Agriculture Laboratory which is
located on 2.59 acres in Fresno. The property, which
includes a 10,930 square foot building, was previously used
as a veterinary laboratory. DGS estimates the value of
this property at $300,000 to $400,000. The Department of
Motor Vehicles Roseville Field Office is located on 1.10
acres in Roseville. This facility was replaced by a new,
larger facility in the area. The estimated value of this
property is $750,000 to $1,200,000.
As noted above, in November 2004, voters passed Proposition
60A, which amended the state Constitution to require that
any proceeds from the sale of state surplus property be
used to pay down the $15 billion in deficit bonds included
in the 2003-04 Budget package. Thus, the proceeds from the
sale of these two parcels will be placed in the appropriate
Special Fund.
PRIOR/RELATED LEGISLATION
SB 1481 (Committee on Governmental Organization) 2009-10
Session. Would make it explicit that proceeds from the
sale of armories must be deposited in the Armory Fund,
notwithstanding specified Government Code provisions that
require proceeds from the sale or lease of surplus state
property be applied to retire accumulated deficits.
(Pending in this Committee)
SB 1001 (Strickland) 2009-10 Session. Would terminate the
public recreation use restriction and right of reentry that
is held by the state with respect to a specified portion of
San Buenaventura State Park in order to provide for
improved public access while allowing for compatible
private commercial and recreational use. (Pending in this
Committee)
SB 760 (Aanestad) Chapter 64, Statutes of 2009. Authorized
DGS to sell, lease or exchange specified state-owned real
property in the City of Red Bluff, that is specifically not
declared surplus to the State's needs, and use the proceeds
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to acquire office and related space not to exceed 40,000
net square feet in the City, to consolidate various
departments and state agencies.
SB 586 (Yee) 2009-10 Session. Would direct DGS, in
consultation with the Department of Food and Agriculture,
to enter into negotiations to sell, to any interested
party, at fair market value, with certain restrictions, a
13-acre parking lot portion of the state-owned Cow Palace
property, located in the County of San Mateo and the City
and County of San Francisco. (Pending in Assembly Policy
Committee)
SB 256 (Aanestad) Chapter 572, Statutes of 2009.
Authorized DGS to sell, lease, exchange, or any combination
thereof, all or a portion of specified state-owned real
property in the City of Chico, that is specifically not
declared surplus to the State's needs, and is used by the
California Highway Patrol as its area office, in order to
relocate and expand the office.
SB 178 (Aanestad) Chapter 564, Statutes of 2009.
Authorized DGS to sell, lease or exchange approximately
three acres of state-owned real property located in the
City of Redding that is specifically not declared surplus
to the State's needs and is currently used by the
Department of Forestry and Fire Protection for the purpose
of consolidating operations on or near the Redding Airport.
SB 136 (Huff) Chapter 166, Statutes of 2009. Authorized
DGS to dispose of three specified parcels of real property
pursuant to Section 11011.1 of the Government Code.
SB 30 (Denham) 2009-10 Session. Would require DGS to
identify not less than $1 billion worth of state property
that can be sold immediately to pay off outstanding general
obligation bonds and help close the budget deficit. Also,
would require state agencies affected by the sale to
determine the costs and benefits of leasing back their
existing space or finding new, more cost-effective space.
(Held in this Committee at Author's Request)
SB 29 (Denham) 2009-10 Session. Would mandate the sale of
land that the Los Angeles Memorial Coliseum and the Los
Angeles Memorial Sports Arena occupy, including the state's
share of the Sports Arena structure, and abolishes the Los
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Angeles Memorial Coliseum Commission upon completion of
that sale. (Held in this Committee at Author's Request)
AB 22xxxx (Evans) Chapter 20, Statutes of 2009-10 Fourth
Extraordinary Session. Authorized DGS to: (1) sell the
Orange County Fairgrounds; (2) sell specified state-owned
office buildings and to enter into long-term leases for
those buildings with the option to buy back any of the
buildings; (3) enter into and approve "long-term" leases of
the state's real properties and determine terms and
conditions of such leases. Also, imposed additional
reporting requirements upon state agencies relative to
information that must be submitted to DGS pertaining to the
state's real property holdings and authorized a loan of not
more than $10 million from the General Fund to support the
management of the state's real property assets and any
extra workload.
AB 8xx (Nestande) Chapter 6, Statutes of 2009-10 Second
Extraordinary Session. Among other things, exempted the
sale of surplus state real property made on an "as is"
basis from designated provisions of CEQA. Also, exempted
from those provisions of CEQA the execution of the purchase
and sale agreement or the exchange agreement for surplus
state real property if the disposition is not made on an
"as is" basis and the close of escrow is contingent on a
specified requirement or compliance with CEQA.
AB 608 (Evans) 2009-10 Session. Would have authorized DGS
to execute an agreement in the best interests of the state
to modify boundary lines dividing private and state
property along the area known as the River to Ridge Trail,
from Kennedy Park to Skyline Park, in Napa County. (Vetoed
by Governor on the basis that the State should not incur
costs when there are other available remedies.)
AB 600 (Hall) 2009-10 Session. Would have authorized DGS,
with the approval of the Adjutant General, to complete a
lease to the City of Compton at fair market value, of
specified state-owned property known as the Compton Armory.
(Vetoed by Governor on the basis that current law already
authorizes DGS to enter into long-term leases on
state-owned land that may have some potential future use to
the program needs.)
AB 240 (Monning) Chapter 422, Statutes of 2009. Revised
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the terms of a previously authorized exchange of DeLaveaga
Park parcels, owned by the State of California and the City
of Santa Cruz (City) respectively, in accordance with the
current needs of the State and City.
AB 2026 (Villines) Chapter 761, Statutes of 2008.
Authorized DGS to sell, exchange, or lease for fair market
value nine specified parcels deemed to be surplus to the
state's needs. Additionally, rescinded the surplus
authorization granted previously to DGS with respect to
seven specified parcels. Furthermore, exempted the State's
execution of a purchase and sales agreement from CEQA
however, the provisions made it explicit that in an "as is"
sale, the buyer or transferee will be subject to any local
governmental entitlement or land use approval requirements
including requisite CEQA provisions.
SB 1133 (Denham) 2007-08 Session. Would have mandated the
sale of the parcel of land that the Coliseum and the Sports
Arena occupy, including the state's share of the Sports
Arena structure, and abolishes the Los Angeles Memorial
Coliseum Commission upon completion of that sale. (Failed
passage on Senate floor)
SB 1060 (Ridley-Thomas) 2007-08 Session. Would have
abolished the Los Angeles Memorial Coliseum Commission
(LAMCC) and reorganized the administrative and management
structure for Exposition Park in Los Angeles by creating an
Exposition Park Authority consisting of 9-board members
responsible for managing and operating all state-owned
properties located in Exposition Park. Also, mandates that
the board sell the parcel that the Los Angeles Memorial
Sports Arena occupies. (Failed passage in Assembly policy
committee)
AB 1123 (Berg) Chapter 625, Statutes of 2007. Authorized
DGS, with the approval of the Adjutant General, to lease to
the City of Healdsburg at fair market value and for a
period of up to 30 years specified state property known as
the Healdsburg Armory. Also, required that proceeds from
the lease be deposited into the Armory Fund.
SB 99 (Battin) 2005-06 Session. Would have established the
Commission on Asset Review and Divestiture to review
biennially the inventory of all real property held by the
State. (Held in Senate Appropriations Committee)
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AB 53 (Negrete McLeod) 2005-06 Session. The annual DGS
surplus property bill containing approximately 30 parcels
for disposal. (Died on Senate Inactive File)
AB 54 (Negrete McLeod) 2005-06 Session. The annual DGS
surplus property bill. (Vetoed by Governor because of
concerns over requiring DGS to initiate a CEQA process on
the properties - the Governor stated that "such a provision
could potentially cost California taxpayers millions of
dollars.")
SB 1755 (Denham) 2003-04 Session. Would have required that
DGS ensure state agencies receive up to 15% of the sale of
state surplus real property as a one-time expenditure for
that agency subject to specified limitations and approval
by the Director of Finance, and would have provided with
certain exceptions, a reward of % of the sales price of
the surplus property, not to exceed $5,000, to the agency
employee(s) who first disclosed the availability of the
property. (Failed passage in this Committee)
SB 669 (Battin) 2003-04 Session. Would have required DGS
to identify $1 billion worth of state property that can be
sold immediately to help close the budget deficit. The
bill also would have required state agencies affected by
the sale to determine the costs and benefits of leasing
back their existing space or finding new, more
cost-effective space. (Passed out of this Committee on a
vote of 11-0; Died in Senate Appropriations Committee -
Suspense file)
SB 856 (Committee on Governmental Organization) Chapter
258, Statutes of 2003. The annual DGS surplus property
bill.
SB 1607 (Committee on Governmental Organization) Chapter
974, Statutes of 2002. The annual DGS surplus property
bill.
SB 951 (Committee on Governmental Organization) Chapter
610, Statutes of 2001 . The annual DGS surplus property
bill.
SUPPORT: Department of General Services (sponsor)
OPPOSE: None on file as of April 9, 2010.
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FISCAL COMMITTEE: Senate Appropriations Committee
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