BILL ANALYSIS
SB 128
Page 1
SENATE THIRD READING
SB 128 (Polanco)
As Amended August 29, 2000
Majority vote
SENATE VOTE :Vote not relevant
PUBLIC SAFETY APPROPRIATIONS 14-7
(vote not relevant)
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| | |Ayes:|Migden, Cedillo, Davis, |
| | | |Hertzberg, Kuehl, Papan, |
| | | |Romero, Shelley, |
| | | |Steinberg, Thomson, |
| | | |Wesson, Wiggins, Wright, |
| | | |Longville |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Brewer, Ackerman, |
| | | |Ashburn, Battin, |
| | | |Maldonado, Runner, Zettel |
| | | | |
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CONSUMER PROTECTION 6-0
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|Ayes:|Davis, Leach, Correa, | | |
| |Cox, Lempert, Machado | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Authorizes the Director of the Department of General
Services (DGS) to declare as surplus a Department of
Transportation (Caltrans) building in Los Angeles and allows
wrap-up insurance to be applied on a program basis, instead of
on a project basis. Specifically, this bill :
1)Authorizes DGS, with approval of the Director of Caltrans, to
sell, lease, or exchange real property located at 120 South
Spring Street in Los Angeles, including structures thereon
totaling approximately 395,000 square feet on terms and
conditions that are in the best interest of the state.
(Estimated value: Approximately $1 million)
2)Allows a state or local governmental agency to use
SB 128
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owner-controlled or wrap-up insurance with regard to a
construction or renovation program (instead of project) that
costs greater than $50 million if the agency meets specified
conditions.
EXISTING LAW :
1)Requires each state agency to annually review all proprietary
state lands over which it has jurisdiction and report any
surplus property to DGS, according to specific criteria.
2)Requires DGS to request authorization by the Legislature prior
to disposing by sale or otherwise any surplus property.
3)Requires state agencies, when purchasing real property, to
review the Surplus Property Inventory and purchase, lease or
trade property on that list if possible.
4)Allows a state or local governmental agency to use
owner-controlled or wrap-up insurance with regard to a
construction or renovation project that costs greater than
$50 million if the agency meets specified conditions.
FISCAL EFFECT : Unknown
COMMENTS : According to the author's office, this bill is needed
in order to declare surplus a Caltrans building in Los Angeles
and to eliminate confusion about the use of owner-controlled or
wrap-up insurance. The building in question is too small for
the Caltrans District Office and reportedly has some seismic
safety issues. It is being declared surplus in order to clear
the way for a possible deal with the City of Los Angeles,
whereby the City would turn the site into a park in exchange for
a larger building to be utilized by Caltrans.
SB 981 (Polanco), Chapter 521, Statutes of 1999, established the
parameters for the use of owner-controlled or wrap-up insurance.
This insurance is applicable to large public works construction
projects. The government entity, or "owner", can provide a
single policy to cover all its insurance needs including workers
compensation and liability insurance for all entities involved
in the project. Since the passage of that legislation,
questions have been raised about whether the authority can be
used for multiple sites within a renovation or construction
program or for single projects only.
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For example, Sacramento City Unified School District is putting
in air conditioning in each of its schools. Without this
change, the district is unclear whether they can get a single
wrap-up insurance policy to cover the multiple contractors at
multiple sites. Obtaining this insurance will be much easier to
administer and save money.
Analysis Prepared by : Janice Cooper / CONPRO / (916) 319-2089
FN: 0007202