BILL ANALYSIS �
AB 1272
Page 1
Date of Hearing: April 12, 2011
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 1272 (Butler) - As Introduced: February 18, 2011
SUBJECT : State property: surplus.
SUMMARY : Authorizes the Department of General Services (DGS)
to dispose of all or any portion of six specified parcels of
state property, and rescinds the surplus authorization of two
specified properties.
1)Authorizes DGS to dispose of all or any portion of the
following six specified parcels of state property:
a) Approximately 2.59 acres, known as the Hollywood
Employment Development Department (EDD) Office Building,
located at 1116 N. McCadden Place and 6725 Santa Monica
Blvd., in Los Angeles (L.A.), L.A. County;
b) Approximately 1.68 acres, known as the L.A. EDD Office
Building, located at 1405 South Broadway and 1400 South
Hill Street, in L.A., L.A. County;
c) Approximately 1.17 acres, known as the Oroville EDD
Office Building, located at 2348 Baldwin Avenue, in
Oroville, Butte County;
d) Approximately 1.54 acres, known as the Hidden Lakes
Estates Parcel, located near the Millerton Lake State
Recreation Area, in Fresno County;
e) Approximately 40 acres, known as the Digger Butte
Lookout, located in an unincorporated area of Tehama
County, 39 miles northeast of Red Bluff, portion of Section
29, T.30N., R.2E., M.D.M., Tehama County; and,
f) Approximately 20 acres, known as the Campbellville
Lookout, located in an unincorporated area of Tehama
County, 20 miles north of Chico, portion of Section 14,
T.25N., R.2E, M.D.M., Tehama County.
2)Rescinds the surplus authorization of the following two
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specified properties:
a) Approximately 0.54 acres of a portion of the Sutter Hill
Forest Fire Station, located one mile south of Sutter Creek
on Highway 49 in Amador County, declared surplus in SB 1645
(Mountjoy), Chapter 731, Statutes of 1998; and,
b) Approximately 5.54 acres, known as the National Guard
Armory, located at 251 West Hedding Street in the City of
San Jose, Santa Clara County, declared surplus in SB 2713
(Wyman), Chapter 1384, Statutes of 1984.
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. Requires a state agency to
include:
a) Land not currently being utilized, or 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 state agency within its
master plan for facility development.
3)Exempts the sale of surplus property from designated
provisions of the California Environmental Quality Act (CEQA).
Specifically, the law provides that any disposition 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.
4)Requires, pursuant to Proposition 60A of November 2004, SCA 18
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(Johnson), Chapter 103, Resolutions of 2004, 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.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author's office, "This
is the annual DGS proposal for the disposal of excess state real
property. State agencies are required by Government Code
Section 11011 to identify real properties that are excess to its
needs. The proposal is necessary because legislative
authorization is needed to declare real properties as surplus
and to authorize their disposal by DGS."
Background . 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 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.
Under the provisions of Proposition 60A, the proceeds of the
sale of surplus property must be used to pay the holders of the
state's deficit reduction bonds. These payments are intended to
accelerate the redemption of the state's debt, and reduce future
General Fund payments to the bondholders.
Declaration of Surplus Property . Below are DGS's reasons for
declaring the following properties surplus:
1)Hollywood EDD Building : The 29,000 square feet property was
acquired on January 13, 1949 for $59,247, including through
condemnation. A 2001 appraisal gave a value of $4.68 million.
Because EDD utilizes federal funds, there is federal equity
in this property that would have to be repaid. This facility
needs major improvements and is no longer meeting the needs of
the program.
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2)Los Angeles EDD Building : The property was acquired in
several acquisitions including condemnation in 1962. The
total cost of the land was $568,480 and the total building
cost was $574,546. Because EDD utilizes federal funds, there
is federal equity in this property that would have to be
repaid (potentially up to 94% federal equity). This facility
needs major improvements and is no longer meeting the needs of
the program.
3)Oroville EDD Office Building : EDD acquired the property in
1968 at a cost of $43,658.86 and constructed the 5,121 square
foot stand-alone building at a cost of $287,076 for use as an
EDD field office. EDD can no longer justify a building of
this size due to the permanent reduction in staffing. EDD
intends to administer the current program and services from a
different EDD location.
4)Hidden Lakes Estates : The Department of Parks and Recreation
(DPR) acquired the property in 1965 to construct a boat access
and ramp to provide the Hidden Lakes Estates development
community access to Millerton Lake. The access and ramp were
never constructed. The parcel is not contiguous with the
State Recreation Area and DPR cannot patrol, secure, or
maintain the property on a regular basis. The homeowners who
agreed to maintain the property have abandoned the effort and
the DPR is unable to maintain or secure the parcel at this
remote location. The ownership of the parcel creates an
unnecessary liability for the State of California.
5)Digger Butte Lookout : The Department of Forestry and Fire
Protection (CAL FIRE) acquired the property in 1971 to
construct a fire lookout tower. CAL FIRE is not using the
property for fire protection purposes and has no future use
planned.
6)Campbellville Lookout : CAL FIRE acquired the property in 1971
to construct a fire lookout tower. CAL FIRE is not using the
property for fire protection purposes and has no future use
planned.
Rescission of Surplus Property . This proposal rescinds two
state properties from being declared surplus. This often
happens when the controlling agency revisits their program needs
and identifies a use for the property. State properties that
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should be rescinded cannot have the designation of "surplus"
removed until legislation is chaptered. In practice, even if a
property has been declared surplus, if the controlling
department contacts DGS and requests a rescission, the property
is not put on the market. While the designation of "surplus" is
not removed from the property, the property is not available to
sell. DGS received requests from the client agencies to rescind
two properties:
1)Sutter Hill Forest Fire Station under the control of CAL FIRE,
consisting of approximately 0.54 acres. This is a portion of
the parking lot for a Fire Station and the county, who
originally wished to purchased, instead, garnered a parking
lot easement, thus alleviating their need for purchase.
2)San Jose Armory under the control of the Military Department
(MD) consisting of approximately 5.54 acres. The property is
used on a full-time basis and fully staffed. MD has requested
this proposal in the past, but has been unable to attain
rescission.
Previous Legislation .
SB 1167 (Cogdill), Chapter 324, Statutes of 2010, authorized DGS
to dispose of specified parcels of surplus state property,
sponsored as part of DGS's annual bill.
SB 136 (Huff), Chapter 166, Statutes of 2009, authorized DGS to
dispose of specified parcels of surplus state property.
AB 53 (Negrete McLeod) of 2006 would have authorized DGS to
dispose of specified parcels of surplus state property. This
bill was held on the Senate Floor.
AB 54 (Negrete McLeod) of 2005 would have authorized DGS to
dispose of specified parcels of surplus state property. This
bill was vetoed due to provisions in the bill requiring DGS to
initiate a CEQA process on the properties.
SB 856 (Committee on Governmental Organization), Chapter 258,
Statutes of 2003, authorized DGS to dispose of specified parcels
of surplus state property.
SB 1607 (Committee on Governmental Organization), Chapter 974,
Statutes of 2002, authorized DGS to dispose of specified parcels
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of surplus state property.
SB 951 (Committee on Governmental Organization), Chapter 610,
Statutes of 2001, authorized DGS to dispose of specified parcels
of surplus state property.
Support . According to the sponsor, DGS, "AB 1272 is the annual
omnibus DGS legislative measure for the management of surplus
state real property. This bill is necessary to authorize the
sale of excess properties identified by state agencies.
Existing law requires all state agencies to annually review all
proprietary state lands, except as specified, and determine if
any lands are in excess of their needs and report the
information to DGS. In turn, DGS is required to annually report
to the Legislature the land declared excess and request
legislative authorization to declare property surplus. DGS then
provides due diligence for the disposal of the land by sale or
otherwise."
REGISTERED SUPPORT / OPPOSITION :
Support
Department of General Services (sponsor)
Opposition
None on file.
Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916)
319-3301