BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1167
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          SENATE THIRD READING
          SB 1167 (Cogdill)
          As Amended  March 22, 2010
          Majority vote 

           SENATE VOTE  :34-0  
          
           BUSINESS & PROFESSIONS     11-0 APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Hayashi, Conway, Eng,     |Ayes:|Fuentes, Conway,          |
          |     |Hernandez,                |     |Bradford,                 |
          |     |Hill, Ma, Nava, Niello,   |     |Charles Calderon, Coto,   |
          |     |Ruskin,                   |     |Davis,                    |
          |     |Smyth, Logue              |     |De Leon, Gatto, Hall,     |
          |     |                          |     |Harkey, Miller, Nielsen,  |
          |     |                          |     |Norby, Skinner, Solorio,  |
          |     |                          |     |Torlakson, Torrico        |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Authorizes the Department of General Services (DGS) to  
          dispose of all or any portion of the two following specified  
          parcels of 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.

          2)Approximately 1.10 acres, known as the Field Office for the  
            California Department of Motor Vehicles, located at 222  
            Harding Boulevard, in Roseville, Placer County.  

           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)Establishes criteria for state agencies to use in determining  
            and reporting excess lands.  The law requires a state agency  








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            to include: 

             a)   Land not currently being utilized, or currently being  
               underutilized, for any existing or ongoing program; 

             b)   Land for which the agency has not identified any  
               specific utilization relative to future needs; and, 

             c)   Land not identified by the agency within its master plan  
               for facility development.

           FISCAL EFFECT  :   According to the Assembly Appropriations  
          Committee analysis, the estimated values of the laboratory and  
          field office are $300,000 to $400,000 and $750,000 to $1.2  
          million, respectively.  Pursuant to current law, these  
          properties must first be offered to local government or  
          non-profit housing sponsors for the development of low- or  
          moderate-income housing, and second to local government for open  
          space, parks, or local government facilities.  In these cases,  
          the state may sell the property at less than fair market value.   
          If a property is not transferred for one of the aforementioned  
          uses, it is offered to private entities and sold to the highest  
          bidder.
           
          To the extent either of these properties were acquired with  
          General Fund (GF) moneys, the proceeds of any sale, net of DGS  
          transaction costs, must be directed toward retirement of the  
          state's economic recovery bonds, and if those bonds are retired,  
          to the GF.  To the extent either property was acquired with  
          moneys from a special fund, net proceeds from a sale will be  
          deposited in the special fund.

           COMMENTS  :   According to the author's office, "SB 1167 is the  
          annual surplus property bill sponsored by DGS and would  
          authorize DGS to dispose of unneeded state-owned properties.    
          State law requires legislative approval before DGS can sell  
          surplus properties.  This bill would provide that approval."

          This measure is the annual surplus property bill sponsored by  
          DGS.  Existing law requires all state agencies to annually  
          review and determine if any lands under their jurisdiction are  
          in excess of need.  This information is provided to DGS to  
          annually report to the Legislature the excess lands and request  
          authorization to sell excess land.   When selling state surplus  








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          property, DGS must determine if other state agencies can utilize  
          the land.   If the state has no need, DGS must then offer  
          surplus state real property to local agencies, and next, to  
          nonprofit affordable housing sponsors prior to offering the  
          property to private entities.  


           Analysis Prepared by  :    Joanna Gin / B.,P. & C.P. / (916)  
          319-3301 


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