BILL ANALYSIS
SB 1481
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Date of Hearing: June 15, 2010
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
SB 1481 (Committee on Governmental Organization) - As
Introduced: March 8, 2010
SENATE VOTE : 33-0
SUBJECT : State militia: armories: leases and sales.
SUMMARY : Specifies that the proceeds from the sale of armories
must be deposited in the Armory Fund (Fund), notwithstanding
requiring surplus state property proceeds be used to retire bond
debt.
EXISTING LAW :
1)Authorizes the Department of General Services, with the
approval of the Adjutant General, to lease up to 99 years or
sell at fair market value, as specified, any real property
held for armory purposes, with statutory approval.
2)Establishes the Fund for the deposit of proceeds from the sale
or lease of armories and authorizes the use of available funds
upon appropriation by the Legislature for the maintenance of
existing armories and construction of new or replacement
armories.
3)Requires the proceeds from the sale of state surplus real
property be used to pay the principal and interest on the
Economic Recovery Bond Act of 2004 and subsequently be
deposited into the Special Fund for Economic Uncertainties.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author's office, "Within
the State Treasury is a special fund, the 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. An amendment to the California
Military and Veterans Code Section 435 is required to ensure
SB 1481
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that monies from the sale of armory properties, no longer
utilized by the California National Guard, continue to be
deposited in the Fund.
Background . In November 2004, voters passed Proposition 60A,
which requires the proceeds of the sale of surplus property to
be used to pay down the $15 billion in deficit bonds included in
the 2003-04 Budget. These payments are intended to accelerate
the retirement of the state's debt, and reduce future General
Fund payments to the bondholders. Existing law also provides
the California Military Department with separate authority to
sell and lease its property, with the revenues earned to be
deposited into the Fund.
Support . According to the sponsor, the California Military
Department, [The Fund] is a special fund established in state
law to assist with funding the construction or renovation of CNG
armories. SB 1584 will make a clarifying revision to the
Military and Veterans Code Section 435 to ensure the Fund
remains a viable funding source for the acquisition and
construction of future armories."
According to the National Guard Association of California, "SB
1481 ensures a viable funding source for the acquisition,
construction and maintenance of CNG armories. This is essential
as these armories not only house the men and women of the CNG,
but are also utilized by the state as temporary shelters,
warning stations and emergency response coordination centers."
REGISTERED SUPPORT / OPPOSITION :
Support
California Military Department (sponsor)
National Guard Association of California
Opposition
None on file.
Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916)
319-3301