BILL ANALYSIS
Bill No: SB
1481
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
SB 1481 Author: Committee on Governmental Organization
As Introduced: March 8, 2010
Hearing Date: April 13, 2010
Consultant: Art Terzakis
SUBJECT
DESCRIPTION
SB 1481 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.
EXISTING LAW
Existing law generally requires the Director 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 (Government Code Section 11011) 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 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,
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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 under Section
11011 or as may otherwise be authorized by law.
Section 11011 of the Government Code 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 under Section
11011, DGS is responsible for determining if surplus land
is needed by any other state agency. 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. This section
of law also prescribes the procedure for local agencies and
nonprofit affordable housing sponsors to use to obtain the
surplus state
real property.
Existing law authorizes DGS, with the approval of the
Adjutant General, to lease for fair market value (up to 99
years) and sell any real property held for armory purposes,
subject to legislative approval. Additionally, existing
law establishes the Armory Fund and requires that proceeds
from the sale or lease of armories be used for the
maintenance of existing armories and for the acquisition or
construction of new armories.
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.
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BACKGROUND
Within the State Treasury is a special fund, referred to as
the "Armory Fund," where proceeds from the sale or lease of
National Guard armories are deposited in order to finance
the construction of new armories and the renovation of
existing armories.
In November 2004, voters passed Proposition 60A, which
amended the state Constitution to require that any proceeds
from the sale of state surplus property must be used to pay
down the $15 billion in deficit bonds included in the
2003-04 Budget package.
Purpose of SB 1481: Since the California Military
Department (CMD) has separate authority to sell and lease
its property, and the Armory Fund is a special fund, which
was established in state law to assist with funding the
construction of new National Guard armories, Military and
Veterans Code Section 435 needs to be revised to ensure that
the Armory Fund remains a viable funding source for the
acquisition, construction, and maintenance of armories.
Currently, Military and Veterans Code Section 435
authorizes the Department of General Services (DGS) to
lease or sell any real property used for armory purposes
when it is determined to be in the best interest of the
state. Military and Veterans Code Section 435 makes no
reference to "surplus property." Further, Military and
Veterans Code Section 435 provides that, within the State
Treasury, is the Armory Fund. All net proceeds from the
sale, lease, or exchange of National Guard armories are to
be deposited into this Armory Fund. The money in the fund
accumulates and is available, upon appropriation by the
Legislature, for the acquisition and construction of
replacement armories and for maintenance of existing
armories.
This proposal, sponsored by the Military Department, would
make it explicit that proceeds from the sale or lease of
armories must be deposited in the Armory Fund, regardless
of existing Government Code provisions that require
proceeds from the sale of surplus state property be applied
to retire state deficit recovery bonds.
The sponsor emphasizes that the National Guard's
infrastructure is vital to the State of California - thus,
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any and all proceeds from the sale or lease of obsolete
armories must continue to be deposited into the Armory
Fund. Without working armories, the Guard's ability to
support state emergencies will be significantly impaired.
PRIOR/RELATED LEGISLATION
SB 1167 (Cogdill) 2009-10 Session. Would authorize DGS to
dispose of all or any portion of two parcels of real
property (the Veterinary Laboratory for the Department of
Food and Agriculture located in Fresno and the Department
of Motor Vehicles field office located in Roseville, Placer
County). (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
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 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.
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SB 136 (Huff) Chapter 166, Statutes of 2009. Authorized
DGS to dispose of three specified parcels of real property
pursuant to certain provisions.
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
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 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.
SUPPORT: As of April 9, 2010:
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California Military Department (sponsor)
National Guard Association of California
OPPOSE: None on file as of April 9, 2010
FISCAL COMMITTEE: Senate Appropriations Committee
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