BILL ANALYSIS �
SB 944
Page 1
Date of Hearing: June 25, 2014
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
K.H. "Katcho" Achadjian, Chair
SB 944 (Torres) - As Amended: June 18, 2014
SENATE VOTE : 35-0
SUBJECT : Surplus state property.
SUMMARY : Prohibits one specified parcel of state real property,
the Lanterman Developmental Center, which has been declared
surplus, from being prezoned, zoned, or rezoned by any local
government unless the Department of General Services requests or
approves the zoning change, and makes several other changes to
state surplus property law. Specifically, this bill :
1)Prohibits any local government from prezoning, zoning, or
rezoning the state real property known as Lanterman
Developmental Center, located at 3530 Pomona Boulevard,
Pomona, Los Angeles County, which has been declared surplus
pursuant to existing law, unless the Department of General
Services (DGS) requests that the property be rezoned or
approves the rezoning of the property.
2)Requires a local agency or affordable housing developer, when
being considered a potential priority buyer for surplus
property, to demonstrate to DGS that the property is to be
used for, among other purposes, development of projects that
create sustainable jobs of benefit to the area and region
where the property is located.
3)Specifies, if more than one local agency expresses interest in
the surplus property, that priority must be given to the
agency that intends to use it for affordable housing or
development of projects that create sustainable jobs of
benefit to the area and region where the property is located.
4)Adds, to existing legislative intent that declares the
provision of decent housing for all Californians is a state
goal of the highest priority when the state disposes of
surplus property, the creation of sustainable jobs as a state
goal.
5)Adds "development of projects that create sustainable
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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.
EXISTING LAW :
1)Authorizes DGS to dispose of state real property declared
surplus by the Legislature by sale, lease, exchange, or any
other manner, and upon terms deemed to be in the state's best
interests.
2)Requires surplus property that is not needed by any state
agency to first be offered to local agencies, and then to
nonprofit affordable housing sponsors, before being offered
for sale to private entities or individuals.
3)Expresses legislative intent declaring that the provision of
decent housing for all Californians is a state goal of the
highest priority, and that priority be given to the disposal
of surplus property to housing for persons and families of
low- or moderate-income.
4)Allows, pursuant to the California Constitution, a county or
city to make and enforce all local, police, sanitary and other
regulations not in conflict with state law (known as police
powers).
5)Allows, pursuant to the California Constitution, charter
cities to make and enforce all ordinances and regulations in
respect to municipal affairs.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Rule 28.8, negligible costs.
COMMENTS :
1)Purpose of this bill . This bill prohibits any local
government from prezoning, zoning, or rezoning the state real
property known as Lanterman Developmental Center, located at
3530 Pomona Boulevard, Pomona, Los Angeles County, which has
been declared surplus pursuant to existing law, unless DGS
requests that the property be rezoned or approves the rezoning
of the property. This bill also adds "creation of sustainable
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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, and 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.
This bill is author-sponsored.
2)Author's statement . According to the author, "There are three
examples of local agencies initiating action to re-zone or
actually accomplishing re-zoning of excess real estate to
reduce or attempt to reduce the value. They are: the County
of Napa's rezoning of the Department of Mental Health's Napa
State Hospital, the City of Los Angeles' rezoning of the Los
Angeles Civic Center, and the City of Whittier's proposed
rezoning of the Fred C. Nelles Youth Correctional Facility.
"In light of these examples, the issues has become of
particular importance to the constituents of the 32nd Senate
District. This is because on January 29, 2010, the California
Department of Developmental Services announced its intent to
close the 302-acre Lanterman Developmental Center in Pomona,
California. Upon closure, the property will be surplused. If
the property is re-zoned it will likely result in a decrease
in market value, and potentially be re-zoned 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 9.5%.
"Moreover, as a result of Proposition 60A, revenues from the
sale of surplus state real property are to be used to pay the
principal and interest on bonds issued pursuant to the
Economic Recovery Bond (ERB) Act as established by Proposition
57. Year-to-date, approximately $108.7 million in proceeds
from the sale of surplus property has been applied to the
repayment of ERB thereby alleviating pressure off the general
fund which is also utilized to pay off the bonds.
"By authorizing DGS to approve the re-zoning of state surplus
property, SB 944 would ensure that the state receives the
highest value for its real property assets. This in turn
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would accelerate the repayment of ERB - allowing for the
allocation of general funds to other state priorities."
3)Policy considerations . The Committee may wish to consider the
following:
a) Land use authority of cities and counties . The
California Constitution, in Article XI, Section 7, allows a
city or county to make and enforce all local, police,
sanitary, and other regulations not in conflict with state
law, commonly known as "police powers." This police
power is broad in scope, so long as the exercise of the
police power has a rational relationship to a legitimate
governmental purpose such as the protection of the public's
health, safety, or general welfare. This police power is
exercised through land use regulations, such as zoning
ordinances, local agency plans, and other types of
ordinances.
The Committee may wish to consider whether DGS, rather than
the local city or county, is the best entity to determine
the future use of this parcel of surplus state property and
how that land's future development will fit with the
surrounding community's needs.
b) Precedent . While this bill is narrower in scope than
the previous version which applied to the zoning powers of
local agencies with respect to all surplus property, it
still creates a precedent of allowing DGS to trump the
authority of a local government to enact zoning ordinances.
c) Highest value vs. community "fit" with property use .
The Committee may wish to consider whether getting the
highest value for the property is more important than the
needs of the community that surround the property.
4)Arguments in support . None on file
5)Arguments in opposition . None on file
6)Double-referral . This bill was heard by the Accountability
and Administrative Review Committee on June 17, 2014, where it
passed with a 12-1 vote.
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REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958