BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 1515 (Torres) - State property: conveyance: City of Pomona.
Amended: May 25, 2012 Policy Vote: GO 13-0
Urgency: No Mandate: No
Hearing Date: August 6, 2012 Consultant:
Bob Franzoia
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 1515 would authorize the City of Pomona to
convey to the Consolidated Fire Protection District of the
County of Los Angeles a portion of a property using used as a
fire training facility. This bill would require that portion to
be used for fire training facilities, subject to reversion to
the state if not used for those purposes and would require the
Department of General Services to approve a conveyance.
Fiscal Impact: Estimated $1.5 million loss in state property.
The estimate of $1.5 million is preliminary as a formal
assessment has not been completed.
Background: The city received 6.8 acres of property from the
state in 1973 for facilities to improve fire protection in the
surrounding area and the Lanterman Developmental Center.
Existing law stipulates that in the event the city ceases to use
the property as a fire station, the property shall revert to the
state. In 1979, the city completed construction of a fire
station, which has continued in operation to provide fire
protection services according to state requirements. The city
further invested in the property and built a fire training
facility on the property. Both facilities were operated by the
city fire department from 1979 to 1995, when the city contracted
with the Consolidated Fire Protection District (Los Angeles
County) for fire protection and emergency response services.
The city retained ownership of the property and the state
continued to maintain water utilities on the property.
Existing law requires a state agency to review annually its real
property holdings and determine what, if any, is in excess of
its foreseeable needs. These properties are commonly referred
to as surplus state properties. They include both unused
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properties and those which are underutilized by an agency. Once
real property has been identified as surplus, the state attempts
to sell the property, or dispose of it in some other manner.
Existing law provides that the department shall sell surplus
property at fair market value but provides discretion to sell at
less than fair market value under certain conditions. When
surplus property is sold, the sales revenues are deposited into
the account that originally paid for the acquisition of the
property. In most instances, sale revenues are deposited in the
General Fund and are available for expenditure on any state
program.
Proposition 57, the Economic Recovery Bond Act of 2004,
authorized the sale of $15 billion in long term bonds to pay off
accumulated debt. Pursuant to Proposition 60A (2004), proceeds
from the sale of surplus properties are deposited in the Deficit
Recovery Bond Retirement Sinking Fund Subaccount and are be used
to pay the principal and interest on Proposition 57 bonds. Once
these bonds are fully repaid, proceeds from surplus property
sales would be deposited in the General Fund. Proposition 60A
only applies to those properties that were purchased with
General Fund revenue or bonds secured by the General Fund.
Proposition 60A does not apply to the sale of surplus property
acquired with special funds.
Revenue from the leasing of state property may be used for any
purpose.
As of April 1, 2012, the balance on the $15 billion of economic
recovery bonds was $6.5 billion. This bill would reduce the
state's flexibility in disposing of this property and
potentially reducing this balance.
Related Legislation: SB 1392 (Pavley) proposes requiring if a
developmental center is determined to no longer meet the needs
of the state for directly serving developmentally disabled
persons that the grounds may be made available for lease. That
bill is awaiting a hearing in Assembly Appropriations Committee.
SB 1217 (Dutton) proposes reauthorizing the Department of
General Services to lease a building at the Patton State
Hospital to a private nonprofit corporation or local government
for the purposes of providing services to elderly persons. That
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bill is awaiting a hearing in Assembly Appropriations Committee.