BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1421|
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THIRD READING
Bill No: AB 1421
Author: Assembly Accountability and Administrative Review
Committee
Amended: 6/12/13 in Senate
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 11-0, 6/11/13
AYES: Wright, Nielsen, Berryhill, Calderon, Cannella, Correa,
De Le�n, Galgiani, Hernandez, Lieu, Padilla
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 74-0, 5/23/13 (Consent) - See last page for
vote
SUBJECT : Surplus state property: realtors and landlocked
properties
SOURCE : Department of General Services
DIGEST : This bill provides for the selection of local real
estate brokers to sell state surplus property and adds
landlocked, remainder, and remnant parcels of land to the types
of properties that the Director of the Department of General
Services (DGS) may sell, convey, or exchange at fair market
value under specified circumstances.
ANALYSIS :
Existing law:
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1. Authorizes DGS to employ a licensed real estate broker to
sell surplus property if DGS determines that the employment
of a broker would result in a cost savings to the state.
2. Authorizes the Director of DGS to sell, convey, or exchange
properties that are not needed by any state agency at fair
market value following 30-day notice to the Joint Legislative
Budget Committee (JLBC) and the applicable members of the
Senate and Assembly who represent the district in which the
properties are located. This applies under any of the
following circumstances:
A. Property of no more than five acres to a local
governmental agency for the purpose of local public works
projects;
B. Property received by the state as the result of a
foreclosure, seizure, or court action;
C. Property that is being encroached on by an adjacent
landowner, and the Attorney General, state agency, and
adjacent landowner agree that the best way to resolve the
matter is through a sale of the property or an exchange of
property of equal value; and
D. Property with a fair market value of less than $25,000.
3. Requires properties acquired through foreclosure, seizure, or
court action, and properties worth less than $25,000 pursuant
to the above provisions to be declared surplus prior to sale.
This bill provides for the selection of local real estate
brokers to sell state surplus property and adds landlocked,
remainder, and remnant parcels of land to the types of
properties that the Director of DGS may sell, convey, or
exchange at fair market value under specified circumstances.
Specifically, this bill:
1. Authorizes DGS, to employ a licensed real estate broker, with
regard to the sale of a surplus property, who is located
within the vicinity of the surplus property.
2. Requires DGS to select a local licensed real estate broker
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based on the location of the property, the broker's knowledge
of the local real estate market and success in selling real
property in the local market, and the broker's demonstrated
competence and professional qualifications.
3. Requires DGS to adopt specific criteria relating to
competence, qualifications, and customary commission rates in
implementing the selection method specified above.
4. Adds the following types of properties that the Director of
DGS may sell, convey or exchange at fair market value:
A. Property, not to exceed 50 acres, that is landlocked,
or without legal access from a public road, street, or
highway, if the sale, conveyance, or exchange is with the
owner of an adjoining property;
B. Property, not to exceed 15 acres, that is a remainder
or remnant parcel having a diminished economic utility or
value due to its size, shape, location, or other
detrimental characteristics if the sale, conveyance, or
exchange is with the owner of an adjoining property; and
C. Property that is a remainder or remnant parcel of
property acquired as part of a capital outlay project if
the request to sell is made by the jurisdictional agency
within one year of its purchase date.
5. Repeals the requirement that lands acquired through
foreclosure, seizure, or court order, and lands valued at
less than $25,000 be formally declared surplus prior to sale.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 7/1/13)
Department of General Services (source)
ARGUMENTS IN SUPPORT : The bill's sponsor, Department of
General Services, states that this bill will streamline current
real property management practices and provide savings to the
state by adding landlocked, remainder and remnant parcels to the
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types of atypical properties that the state is not required to
use a sealed bid process. In addition, DGS states that this
bill removes a conflicting and unnecessary requirement that
state lands acquired through foreclosure, seizure, court order,
and lands worth less than $25,000 in value be declared "surplus"
prior to sale. Finally, this bill is intended to provide DGS
with a less costly method of selecting local real estate brokers
to sell surplus property when it serves the state's best
interests.
ASSEMBLY FLOOR : 74-0, 5/23/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,
Buchanan, Ian Calderon, Campos, Chau, Ch�vez, Chesbro, Conway,
Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gordon, Gorell,
Gray, Hagman, Hall, Harkey, Roger Hern�ndez, Jones-Sawyer,
Levine, Linder, Logue, Lowenthal, Maienschein, Mansoor,
Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi,
Nazarian, Nestande, Olsen, Pan, Patterson, Perea, V. Manuel
P�rez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone,
Ting, Wagner, Weber, Wieckowski, Wilk, Williams, Yamada, John
A. P�rez
NO VOTE RECORDED: Grove, Holden, Jones, Waldron, Vacancy,
Vacancy
MW:k 7/1/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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