BILL ANALYSIS �
AB 2174
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Date of Hearing: April 9, 2014
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Jim Frazier, Chair
AB 2174 (Accountability and Administrative Review Committee) -
As Amended: March 28, 2014
SUBJECT : State property: surplus
SUMMARY : Authorizes the Department of General Services (DGS)
to dispose of various identified surplus state properties.
Specifically, this bill allows the Director of DGS to sell,
exchange, sell combined with an exchange, or lease for fair
market value, upon terms and conditions determined to be in the
state's best interest, all or any part of the following three
parcels of real property:
1)Approximately 0.434 acres and improvements, known as the
Employment Development Department (EDD) parking lot located at
850 Turk Street in San Francisco, San Francisco County
Assessor Parcel Number 0744-006;
2)Three parcels of approximately 0.29 acres and improvements,
known as the EDD parking lot located at 700 Golden Gate Avenue
in San Francisco, San Francisco County Assessor Parcel Numbers
0761-002, 0761-003, and 0761-022; and,
3)Approximately 1.5 acres and improvements, known as the DGS'
Bercut Drive Building, located at 570 Bercut Drive, in
Sacramento, Sacramento County.
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 reported to DGS, which first
determines if any properties can be used by another state
agency, and if not, seeks legislative authorization to dispose
of the properties. Upon such authorization, DGS must first
offer each surplus property to the relevant local agencies and,
next, to nonprofit affordable housing entities prior to offering
the property to private parties through a bidding process.
FISCAL EFFECT : Unknown
COMMENTS : This measure is the annual surplus property bill
sponsored by DGS. State agencies are required by Government
AB 2174
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Code Section 11011 to identify real properties which are excess
to their needs. Legislative authorization is needed to declare
real properties as surplus and permit their disposal by DGS.
DGS provides the following rationale for deeming the properties
in this bill surplus:
"The EDD parcels are being declared surplus because there is
no programmatic need or plans for expansion that merit holding
on to the properties. These parcels are currently used for
parking; however, the path of travel to and from the
properties is non-compliant with the Americans with
Disabilities Act (ADA) and the topography is a barrier to any
mitigation efforts.
The Bercut Drive building has evidence of serious roof leaks
and non-compliance with the ADA throughout the structure's
interior and exterior. It has been determined that there is
no foreseeable state programmatic use for the building, and
the building remains vacant."
All proceeds generated from the sale of surplus properties 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.
PRIOR LEGISLATION : The following measures are the most recent
surplus property bills sponsored by DGS and enacted into law:
1)AB 826 (Jones-Sawyer), Chapter 505, Statutes of 2013
2)SB 1580 (Senate Governmental Organization Committee), Chapter
798, Statutes of 2012
3)AB 1272 (Butler), Chapter 178, Statutes of 2011
4)SB 136 (Huff), Chapter 166, Statutes of 2009,
REGISTERED SUPPORT / OPPOSITION :
Support
Department of General Services (sponsor)
Opposition
None on file.
AB 2174
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Analysis Prepared by : Cassie Royce / A. & A.R. / (916)
319-3600