BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1167|
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THIRD READING
Bill No: SB 1167
Author: Cogdill (R)
Amended: 3/22/10
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 7-0, 04/13/10
AYES: Wright, Denham, Florez, Oropeza, Padilla, Price, Yee
NO VOTE RECORDED: Harman, Calderon, Negrete McLeod, Wyland
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 state real property.
ANALYSIS : 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
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
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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 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
financial terms; (c) the basis for agreeing to terms and
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conditions other than fair market value.
Existing law 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.
This bill authorizes DGS to dispose of the following
parcels:
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
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$750,000 to $1.2 million
Comments
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. The proceeds from the sale
of these two parcels will be placed in the appropriate
Special Fund.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 4/26/10)
Department of General Services (source)
TSM:nl 4/26/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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