BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1052
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          Date of Hearing:   May 3, 2011

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER 
                                     PROTECTION
                                 Mary Hayashi, Chair
                   AB 1052 (Garrick) - As Amended:  April 26, 2011
           
          SUBJECT  :   State property: surplus. 

           SUMMARY  :   Authorizes the Department of General Services (DGS), 
          on behalf of the Department of Parks and Recreation (DPR), to 
          enter into an agreement with the City of Carlsbad (City), San 
          Diego, to exchange specified real property.   Specifically,  this 
          bill  :  

          1)Authorizes DGS, on behalf of DPR, to enter into an agreement 
            with the City to exchange a portion of the South Carlsbad 
            State Beach (SC State Beach) in exchange for a portion of 
            Carlsbad Blvd. 

          2)Requires the land exchange to be: 

             a)   Based on fair market value; and, 

             b)   DGS's determination that the exchange is in the state's 
               best interest and will not result in a net cost or loss to 
               the state. 

          3)Requires the City to reimburse the state for: 

             a)   The difference in the appraised property value to be 
               exchanged, if the state is found to be receiving less 
               value; and, 

             b)   Reasonable administrative costs incurred to complete the 
               title transfer.

          4)Requires the City to be solely responsible for: 

             a)   Compliance with the California Environmental Quality Act 
               (CEQA) in connection with the transfer of property 
               ownership; and, 

             b)   Compliance with the Land and Water Conservation Fund 
               (LWCF) Act of 1965








                                                                  AB 1052
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           EXISTING STATE LAW  : 

          1)Authorizes 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 state's best interests.

          2)Authorizes DPR to have control of the state park system. 

          3)Provides that a buyer or transferee of state property shall be 
            subject to any local governmental entitlement or land use 
            approval requirements and CEQA.  
               
           EXISTING FEDERAL LAW  :

          1)Establishes the LWCF Act and prohibits any property acquired 
            or developed with federal funds from conversion to purposes 
            other than public outdoor recreational use.

          2)Authorizes the Secretary of the Interior to approve land 
            conversions if it complies with the statewide outdoor 
            recreation plan and a replacement property will be of equal 
            fair market value and recreational usefulness.  

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           Purpose of this bill  .  According to the author's office, "Both 
          the City and DPR own property along Coast Highway 101/Carlsbad 
          Blvd.  The City has contemplated redesign and reconstruction of 
          portions of Carlsbad Blvd. as a way to protect the roadway from 
          coastal erosion? �The land transfer] will allow DPR to expand 
          the physical boundaries of the SC State Beach Campground to 
          mitigate the impacts of continued bluff erosion, and provide an 
          opportunity to enhance revenue generation potential of a 
          significant State asset?  The City and DPR have prepared a 
          Memorandum of Understanding (MOU) outlining how both agencies 
          will work together toward a land exchange that creates enhanced 
          public access to coastal areas, new recreational amenities, and 
          greater economic opportunities to citizens and visitors.  This 
          bill will provide legislative approval of a land exchange 
          between the City and DPR contingent upon approval by the United 
          States Department of Interior/National Parks Service under the 








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          LWCF Act."

           Background  .  The land transfer proposed in this bill allows DPR 
          to acquire approximately 26.1 acres of property south of Palomar 
          Airport Road located in Carlsbad from the City in exchange for 
          delivering two parcels of state property - 14.1 acres known as 
          Canon Lake and the Tomato Fields Property and four acres of 
          coastal bluff property known as Terramar, to the City.  The 1984 
          SC State Beach General Plan shows DPR has had an interest in the 
          acquisition of City property with the hope of providing 
          additional recreational opportunities through property 
          acquisition.  The City intends to use the land acquired from 
          this transfer to create a T-intersection at Carlsbard Blvd. and 
          Palomar Airport Road and a city park.  DPR intends to use the 
          land acquired from this transfer to expand and upgrade the SC 
          State Beach Campground campsites, facilities, parking, and 
          entrance road.  While a MOU outlining the role and 
          responsibilities of the City and DPR in the land exchange has 
          been prepared, DPR has not yet signed the MOU.

          The land transfer is complicated because a portion of SC State 
          Beach was acquired utilizing LWCF funds.  Since federal funds 
          were utilized to improve state parks for open access, the state 
          park incurred federal restrictions that any land traded or 
          acquired must meet or exceed the recreational value, acreage, 
          and appraised value of the land to be exchanged.  In order to 
          complete a land transfer with these federal restrictions, the 
          transfer must be first approved on the federal level, which will 
          take several months.  This would be a multi-phase, long-term 
          agreement due to the complexity of land transfer issues.  At 
          this time, the Administration has not taken a position on the 
          transfer or this measure.  

           Related Legislation  .  AB 384 (Chesbro) of 2011 authorizes the 
          City of Fort Bragg and the County of Mendocino to acquire up to 
          17 acres of the Jackson Demonstration State Forest to develop a 
          solid waste transfer station, as part of a three-way property 
          transfer set at fair market value.  This bill is not subject to 
          the LWCF Act or any resulting federal restrictions.  This bill 
          is pending in the Assembly Appropriations Committee.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           








                                                                  AB 1052
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          None on file. 

           Opposition 
           
          None on file. 
           
          Analysis Prepared by  :    Joanna Gin / B.,P. & C.P. / (916) 
          319-3301