BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 944|
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THIRD READING
Bill No: SB 944
Author: Torres (D)
Amended: 3/12/14
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 9-0, 4/8/14
AYES: Correa, Berryhill, Cannella, De Le�n, Galgiani, Lieu,
Padilla, Torres, Vidak
NO VOTE RECORDED: Hernandez, Vacancy
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Surplus state property: rezoning
SOURCE : Author
DIGEST : This bill prohibits a local government from rezoning
state real property within its jurisdiction that is declared
surplus by the state, unless the Department of General Services
(DGS) either requests or approves the rezoning.
ANALYSIS :
Existing law:
1. Authorizes DGS, subject to legislative approval, to sell,
lease, exchange, or transfer various specified properties for
current market value, or upon such other terms and conditions
that DGS determines are in the best interests of the state.
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2. Unless otherwise specified by law, requires the proceeds from
the sale of surplus state property be used to pay the
principal and interest on the Economic Recovery Bond Act of
2004.
3. Requires DGS to dispose of surplus state real property in a
specified manner, and prescribes the priority of disposition
of the property before DGS may offer it for sale to private
entities or individuals.
4. Makes legislative findings and declarations that the
provision of decent housing for all Californians is a state
goal of the highest priority, and that priority shall be
given to the disposal of surplus state real property to
housing for persons and families of low or moderate income.
This bill:
1. Prohibits a local government from rezoning state real
property within its jurisdiction that is declared surplus or
identified as excess, unused, underutilized, or partially
utilized, unless DGS requests that the property be rezoned,
or approves the rezoning.
2. Adds "creation of sustainable jobs" to existing legislative
declarations that the provision of decent housing for all
Californians is a state goal of the highest priority when the
state disposes of surplus state real property.
3. Adds "development of projects that create sustainable
employment opportunities of benefit to the area and region
where the property is located" to the existing declaration of
legislative intent that DGS should give priority to housing
for persons and families of low or moderate income when
disposing of surplus state real property.
Background
Overview of process: disposition of surplus state real
property . State law requires each state agency to annually
review all state lands, with some exceptions, to determine what,
if any, land is in excess of its foreseeable needs, and report
on this review to DGS. Jurisdiction over excess or
underutilized property is transferred to DGS to manage the sale
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or other disposition of the property.
If DGS determines that a parcel of surplus state real property
is not needed by any state agency, it is required to first offer
the property to a local agency, and then to nonprofit affordable
housing entities, prior to the property being offered for sale
to private entities or individuals.
When the Legislature authorizes DGS to sell or otherwise dispose
of the surplus property, DGS sells the property at fair market
value, or otherwise disposes of it upon terms and conditions,
and subject to reservations and exceptions that DGS deems to be
in the best interests of the state.
Rezoning by local agencies . As noted above, state law requires
DGS to offer surplus parcels of state real estate to local
agencies prior to listing the property for sale. Often there is
considerable local agency interest in the surplus state
property, especially when the property is a large parcel or
possesses unique, desirable qualities. In fact, this bill was
introduced in anticipation of the pending sale or other
disposition of the 302-acre Lanterman Developmental Center,
located in Pomona.
The author's office notes that in the recent past, DGS has
encountered situations in which the local agencies deliberately
attempted to, or succeeded in "down-zoning" a parcel of land
during the pendency of its negotiations with DGS, which resulted
in a reduction in fair market value of the state-owned parcel.
This reduction in value occurs because a real estate appraiser
is required to consider the current zoning of the property when
determining the fair market value of the property. If the
property is rezoned prior to final appraisal, the local agency
is thereby able to acquire the property at a price that is
substantially below the actual fair market value.
Under this bill, a local agency could not rezone surplus state
real property within its jurisdiction prior to sale unless DGS
requests that the property be rezoned, or approves the rezoning.
Lanterman Developmental Center . In 2010, the Department of
Developmental Services (DDS) announced its intent to close the
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302-acre Lanterman Developmental Center. Since that time, DDS
has been taking steps to move its residents as appropriate
services and supports for each resident become available. The
date by which all the permanent residents of Lanterman are
expected to have been moved is December 31, 2014.
The author's office states that the City of Pomona will be
involved in the process in order to ensure that the site
development plan benefits the local community. The entire
process is expected to take another 24 months, during which time
DDS will be responsible for maintaining the property.
Currently, Lanterman is zoned for public/institutional purposes.
Comments
According to the author's office, in the recent past, DGS has
encountered situations in which local government agencies
rezoned state-owned surplus real estate, resulting in a
reduction of the value of the asset. The author is concerned
that this might happen in her district in connection with the
impending closure and sale of the Lanterman State Hospital as
surplus state property. The author's office states that, if the
property is rezoned, it will likely result in a decreased market
value, and it could potentially be rezoned in a manner that is
inconsistent with the long-term interests of the surrounding
area and region - in particular, the need to ensure sustainable
job creation in an area of the state that has an unemployment
rate of at least 9.5%.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
MW:d 4/29/14 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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