BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2174
                                                                  Page  1

          Date of Hearing:   April 30, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

           AB 2174 (Accountability and Administrative Review Committee) - 
                            As Amended:  March 28, 2014 

          Policy Committee:                               
          AccountabilityVote:13-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill authorizes the Director of General Services (DGS) to  
          dispose of the following state surplus properties:

          1)The 0.4-acre Employment Development Department (EDD) parking  
            lot on Turk Street in San Francisco.

          2)The 0.3-acre EDD parking lot on Golden Gate Ave. in San  
            Francisco.

          3)The 1.5-acre Bercut Drive Building in Sacramento County.

           FISCAL EFFECT  

          Unknown one-time General Fund revenue, likely in the millions of  
          dollars, from sale of the properties. The federal government has  
          a 62% interest in the Turk Street property, thus a proportionate  
          share of the sale proceeds for this property will be deposited  
          in the Unemployment Insurance Fund.

           COMMENTS  

           1)Purpose  . This is the annual DGS surplus property bill. Current  
            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,  








                                                                  AB 2174
                                                                  Page  2

            and next to nonprofit affordable housing sponsors prior to  
            offering the property to private entities through a bidding  
            process.

            According to DGS, there is no programmatic need or plan for  
            expansion that merit the state maintaining control of the EDD  
            parcels. The Bercut Drive building has evidence of serious  
            roof leaks and is non-compliant with the Americans with  
            Disability Act. The building is vacant no state programmatic  
            use is foreseeable.

           2)Prior Legislation  . The most recently enacted surplus property  
            bills sponsored by DGS were: 

             a)   AB 826 (Jones/Sawyer)/Statutes of 2013
             b)   SB 1580 (Senate Governmental Organization  
               Committee)/Statutes of 2012 
             c)   AB 1272 (Butler)/Statutes of 2011

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