BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1421
                                                                  Page  1

          Date of Hearing:   May 15, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

             AB 1421 (Committee on Accountability) - As Amended:  May 8,  
                                        2013 

          Policy Committee:                              Accountability  
          and Administrative Review                     Vote: 12-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill provides the Department of General Services (DGS) with  
          additional flexibility regarding disposition of certain surplus  
          state property. Specifically, this bill:

          1)Requires DGS, in using its authority to employ a licensed real  
            estate broker, with regard to sale of a surplus state  
            property, to select a local broker, meeting specified  
            criteria, with respect to that property.

          2)Stipulates the Director of DGS may sell, convey, or exchange  
            at fair market value, to the owner of an adjoining property,  
            landlocked parcels of 50 acres or less and remainder or  
            remnant properties of 15 acres or less.

          3)Deletes the requirement that properties valued under $1  
            million acquired through foreclosure, seizure, or court order,  
            and properties valued at less than $25,000, be declared  
            surplus properties prior to sale.

           FISCAL EFFECT  

          Minor annual savings to DGS from streamlining the disposal of  
          certain surplus properties, and additional saving from no longer  
          have to maintain and secure those properties.

           COMMENTS  

           Purpose  . DGS is sponsoring this bill to streamline current real  
          property management practices and provide savings to the state.  








                                                                  AB 1421
                                                                  Page  2

          According to DGS, AB 1421 will maximize the opportunity for the  
          sale of hard-to-sell, remote, or unusual surplus properties  
          through a licensed real estate broker located in the vicinity of  
          the property, which will result in faster, less costly sales of  
          such properties. This bill will also ensure that landlocked,  
          remainder, and remnant parcels of state land are properly  
          disposed of and help generate additional revenue for the state.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081