BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1272|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
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|327-4478 | |
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THIRD READING
Bill No: AB 1272
Author: Butler (D)
Amended: 4/28/11 in Assembly
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMM : 12-0, 06/14/11
AYES: Wright, Anderson, Calderon, Cannella, Corbett, De
Le�n, Evans, Hernandez, Padilla, Strickland, Wyland, Yee
NO VOTE RECORDED: Berryhill
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 70-0, 05/12/11 - See last page for vote
SUBJECT : State property: surplus
SOURCE : Department of General Services
DIGEST : This bill authorizes the Department of General
Services (DGS) to dispose of six surplus state properties,
and rescinds the surplus authorization of two specified
parcels.
ANALYSIS :
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
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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. A state agency
must report land as surplus that is:
Not currently utilized, or is underutilized, for
any existing or ongoing programs;
Land for which the agency cannot identify any
specific utilization relative to future needs; and,
Land not identified by the state agency within its
master plan for facility development.
1.Exempts the sale of surplus property sold "as is" from
designated provisions of the California Environmental
Quality Act (CEQA). However, the buyer or transferee of
a parcel is subject to CEQA as well as any local
governmental entitlement or land use approval
requirements.
2.Requires 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 (Proposition 60A).
This bill:
1.Declares the following properties to be surplus to the
state's needs, and authorizes DGS to dispose of the
properties through sale, exchange, or lease, as
determined to be in the state's best interest:
Approximately 2.6 acres, known as the Hollywood
Employment Development Department (EDD) Office
Building, in L.A. County;
Approximately 1.7 acres, known as the L.A. EDD
Office Building, located at 1405 South Broadway and
1400 South Hill Street, in L.A. County;
Approximately 1.2 acres, known as the Oroville EDD
Office Building, located in Oroville, Butte County;
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Approximately 1.5 acres, known as the Hidden Lakes
Estates Parcel, located near the Millerton Lake State
Recreation Area, in Madera County;
Approximately 40 acres, known as the Digger Butte
Lookout, located in an unincorporated area of Tehama
County; and,
Approximately 5 acres, known as the Campbellville
Lookout, located in an unincorporated area of Tehama
County.
1.Rescinds the surplus authorization of the following two
parcels because the state has a need for their continued
use:
Approximately 0.5 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 1998; and
Approximately 5.5 acres, known as the National
Guard Armory, located in the City of San Jose, Santa
Clara County, declared surplus in 1984.
Comments
This bill 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 are 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
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Below are DGS's reasons for declaring the following
properties surplus:
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.
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.
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.
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 is an unnecessary liability.
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Digger Butte Lookout: The Department of Forestry
and Fire Protection (CAL FIRE) acquired the property
in 1971 to construct a fire lookout tower, but is not
using the property for fire protection purposes and
has no planned future use.
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 designation
This proposal rescinds previous surplus property
designations on two state properties. Legislative action
is required to remove a surplus property designation from a
parcel of land. DGS received requests from the client
agencies to rescind two properties:
Sutter Hill Forest Fire Station, under control of
CAL FIRE, consisting of approximately 0.54 acres. The
state had originally planned to sell this to the
county, but the county chose not to purchase the
property for its fire station parking lot.
San Jose Armory, under the control of the Military
Department consisting of approximately 5.54 acres.
The department uses this property on a full-time
basis, and has requested this designation in the past.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/28/11)
Department of General Services (source)
ARGUMENTS IN SUPPORT : 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
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properties as surplus and to authorize their disposal by
DGS."
ASSEMBLY FLOOR : 70-0, 05/12/11
AYES: Achadjian, Allen, Ammiano, Atkins, Beall, Bill
Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Chesbro, Cook, Davis, Dickinson, Donnelly, Eng,
Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines,
Galgiani, Gatto, Gordon, Grove, Hagman, Halderman, Hall,
Harkey, Hayashi, Hill, Huber, Hueso, Huffman, Jeffries,
Jones, Knight, Lara, Logue, Ma, Mansoor, Mendoza, Miller,
Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan,
Perea, V. Manuel P�rez, Silva, Skinner, Smyth, Solorio,
Swanson, Valadao, Wagner, Wieckowski, Williams, Yamada,
John A. P�rez
NO VOTE RECORDED: Alejo, Cedillo, Conway, Garrick, Gorell,
Roger Hern�ndez, Bonnie Lowenthal, Mitchell, Portantino,
Torres
PQ:nl 6/28/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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