BILL ANALYSIS �
AB 2442
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2442 (Williams)
As Amended August 24, 2012
Majority vote
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|ASSEMBLY: |50-25|(May 30, 2012) |SENATE: |21-15|(August 29, |
| | | | | |2012) |
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Original Committee Reference: B.,P. & C.P.
SUMMARY : Establishes the California Hope Public Trust (Trust)
to support the California State University, California Community
Colleges, and University of California systems.
The Senate amendments :
1)Remove the Trust's authority to approve loans or other
financing for projects undertaken by the trust, issue revenue
bonds, and sell property owned by the Trust and lease the
property back to generate revenue for the Trust's purposes
2)Provide that the following provisions shall become operative
only if legislation is enacted to transfer property to the
Trust:
a) The Trust governing board's authority to appoint and fix
compensation for an executive officer, a chief investment
officer, or any other investment officer and portfolio
manager;
b) The employment status and responsibilities of the
Trust's executive director (ED);
c) The requirement that the Trust's ED report annually to
the Director of the Department of General Services (DGS)
regarding surplus property and land or property that would
assist the Trust to effectuate its purposes;
d) The objectives the Trust must accomplish, the
requirement that the Trust notify the chairs of the
Legislature's fiscal committees before acquiring or
disposing of land and buildings, and the prohibition
against the Trust selling or disposing of any surplus
AB 2442
Page 2
property;
e) The requirement that the Trust make specified reports to
the Legislature; and,
f) The provisions governing the California Hope Public
Trust Fund and the Trust's authority and responsibilities
pertaining to the Trust Fund.
3)Specify that the Trust is governed and administered by DGS,
make the Trust's board an advisory board instead of a board of
directors, and make conforming changes.
4)Remove a requirement that gubernatorial appointees to the
Trust's board be confirmed by the Senate.
5)Specify that the inventory of state-owned real estate,
property and lease agreements that DGS must provide to the
Trust under this bill is limited to property that is not
exempt from transfer to the Trust.
6)Prohibit the Trust from considering for transfer the following
lands for which the Judicial Council is responsible:
a) Courthouses, including, but not limited to, courthouses
that are closed, but are planned for future use as a
courthouse, and property in which courtrooms or other
facilities directly supporting judicial proceedings are
located;
b) Property planned for development as courthouses; and,
c) Property used for parking lots for courthouses.
7)Prohibit the Trust from considering for transfer property
that, if transferred to the Trust, would result in increased
costs to the agency in possession of the property.
8)Prohibit the Trust from assuming any responsibility of
state-owned real estate or other property acquired by, or
supported with, moneys from a special fund.
9)Provide that the budget of the Trust shall be subject to
appropriation in the annual Budget Act.
AB 2442
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AS PASSED BY THE ASSEMBLY , this bill established the Trust and
afforded it a broader range of authority over its ability to
generate revenue and its fiscal and other activities without
additional legislative action.
FISCAL EFFECT : According to the Senate Appropriations
Committee:
1)$500,000 to $1 million annually from the General Fund to the
Trust to manage the state's real estate through December 31,
2018.
2)Unknown, major asset and revenue shift through December 31,
2018. To the extent the Legislature transfers property to the
Trust, and the Trust manages state property for revenue
generating purposes than DGS is otherwise permitted to do,
this bill could reduce net state costs to the General Fund.
To the extent it generates enterprise revenue, the Trust could
increase General Fund revenue.
3)Potential state property management workload decrease to DGS.
COMMENTS : This bill was amended in the Senate and is consistent
with Assembly actions.
Analysis Prepared by : Angela Mapp / B.,P. & C.P. / (916)
319-3301
FN: 0005733