SB 273: State real property: surplus.
- Session Year: 2015-2016
- House: Senate
- Latest Version Date: 2015-09-01
(1)Existing law provides that the Director of General Services may acquire and dispose of surplus state real property where that property is not needed by another state agency and the Legislature has authorized disposal of the property. Existing law also specifies the manner in which the department is to dispose of surplus state real property.
This bill would authorize the director to dispose of 2 specified parcels of state property pursuant to these provisions.
(2)The California Constitution requires that the proceeds from the sale of surplus state property be used to pay the principal and interest on bonds issued pursuant to the Economic Recovery Bond Act until the principal and interest on those bonds are fully paid, after which these proceeds are required to be deposited into the Special Fund for Economic Uncertainties, a continuously appropriated fund. Existing law similarly requires that the net proceeds received from any real property disposition be paid into the Deficit Recovery Bond Retirement Sinking Fund Subaccount, a continuously appropriated fund previously established by the California Constitution, until the bonds issued pursuant to the act are retired, and afterward be paid into the Special Fund for Economic Uncertainties.
By increasing the amount transferred into continuously appropriated funds, this bill would make an appropriation.
This bill would declare that it is to take effect immediately as an urgency statute.
(1)Existing law provides that the Director of General Services may acquire and dispose of surplus state real property where that property is not needed by another state agency and the Legislature has authorized disposal of the property. Existing law also specifies the manner in which the department is to dispose of surplus state real property.
This bill would authorize the director to dispose of 2 specified parcels of state property pursuant to these provisions.
(2)The California Constitution requires that the proceeds from the sale of surplus state property be used to pay the principal and interest on bonds issued pursuant to the Economic Recovery Bond Act until the principal and interest on those bonds are fully paid, after which these proceeds are required to be deposited into the Special Fund for Economic Uncertainties, a continuously appropriated fund. Existing law similarly requires that the net proceeds received from any real property disposition be paid into the Deficit Recovery Bond Retirement Sinking Fund Subaccount, a continuously appropriated fund previously established by the California Constitution, until the bonds issued pursuant to the act are retired, and afterward be paid into the Special Fund for Economic Uncertainties.
By increasing the amount transferred into continuously appropriated funds, this bill would make an appropriation.
This bill would declare that it is to take effect immediately as an urgency statute.
(1)Existing law provides that the Director of General Services may acquire and dispose of surplus state real property where that property is not needed by another state agency and the Legislature has authorized disposal of the property. Existing law also specifies the manner which the department is to dispose of surplus state real property.
This bill would authorize the director to dispose of 2 specified parcels of state property pursuant to these provisions.
(2)The California Constitution requires that the proceeds from the sale of surplus state property be used to pay the principal and interest on bonds issued pursuant to the Economic Recovery Bond Act until the principal and interest on those bonds are fully paid, after which these proceeds are required to be deposited into the Special Fund for Economic Uncertainties, a continuously appropriated fund. Existing law similarly requires that the net proceeds received from any real property disposition be paid into the Deficit Recovery Bond Retirement Sinking Fund Subaccount, a continuously appropriated fund previously established by the California Constitution, until the bonds issued pursuant to the act are retired, and afterward be paid into the Special Fund for Economic Uncertainties.
By increasing the amount transferred into continuously appropriated funds, this bill would make an appropriation.
This bill would declare that it is to take effect immediately as an urgency statute.
Existing
(1)Existing law authorizes provides that the Director of General Services to may acquire and dispose of surplus state real property under specified conditions. where that property is not needed by another state agency and the Legislature has authorized disposal of the property. Existing law also specifies the manner which the department is to dispose of surplus state real property.
This bill would state the intent of the Legislature to enact legislation that would authorize the director to dispose of parcels of surplus state real property.
This bill would authorize the director to dispose of 2 specified parcels of state property pursuant to these provisions.
(2)The California Constitution requires that the proceeds from the sale of surplus state property be used to pay the principal and interest on bonds issued pursuant to the Economic Recovery Bond Act until the principal and interest on those bonds are fully paid, after which these proceeds are required to be deposited into the Special Fund for Economic Uncertainties, a continuously appropriated fund. Existing law similarly requires that the net proceeds received from any real property disposition be paid into the Deficit Recovery Bond Retirement Sinking Fund Subaccount, a continuously appropriated fund previously established by the California Constitution, until the bonds issued pursuant to the act are retired, and afterward be paid into the Special Fund for Economic Uncertainties.
By increasing the amount transferred into continuously appropriated funds, this bill would make an appropriation.
Existing law authorizes the Director of General Services to acquire and dispose of state real property under specified conditions.
This bill would state the intent of the Legislature to enact legislation that would authorize the director to dispose of parcels of surplus state real property.
(a)The Director of General Services may sell, exchange, sell combined with an exchange, or lease for fair market value, upon those terms and conditions as the Director of General Services determines are in the best interests of the state, all or any part of the following real property pursuant to Section 11011.1 of the Government Code:
(1)Parcel 1, consisting of approximately 0.17 acres and improvements, known as the Department of Conservation field office located at 466 North Fifth Street, in Coalinga, Fresno County Assessor Parcel Number 072-111-16T.
(2)Parcel 2, consisting of approximately 29.93 acres and improvements, known as the Department of Forestry Crystal Creek Conservation Camp located at 2242 Highway 2999 West, in Whiskytown, Shasta County Assessor Parcel Number 011-290-038.
(b)To the extent that bonds issued by the State Public Works Board involve the property to be sold pursuant to this section, all issuer- and trustee-related costs associated with the review of any proposed sale, together with the costs related to the defeasance or retirement of any bonds, which may include the cost of nationally recognized bond counsel, shall be paid from the proceeds of any sale or lease authorized by this section.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to enable the proper disposal of surplus property to occur as soon as possible, it is necessary that this act take effect immediately.
(a)The Director of General Services may sell, exchange, sell combined with an exchange, or lease for fair market value, upon those terms and conditions as the Director of General Services determines are in the best interests of the state, all or any part of the following real property pursuant to Section 11011.1 of the Government Code:
(1)Parcel 1, consisting of approximately 0.17 acres and improvements, known as the Department of Conservation field office located at 466 North Fifth Street, in Coalinga, Fresno County Assessor Parcel Number 072-111-16T.
(2)Parcel 2, consisting of approximately 29.93 acres and improvements, known as the Department of Forestry Crystal Creek Conservation Camp located at 2242 Highway 2999 West, in Whiskytown, Shasta County Assessor Parcel Number 011-290-038.
(b)To the extent that bonds issued by the State Public Works Board involve the property to be sold pursuant to this section, all issuer- and trustee-related costs associated with the review of any proposed sale, together with the costs related to the defeasance or retirement of any bonds, which may include the cost of nationally recognized bond counsel, shall be paid from the proceeds of any sale or lease authorized by this section.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to enable the proper disposal of surplus property to occur as soon as possible, it is necessary that this act take effect immediately.
(a)The Director of General Services may sell, exchange, sell combined with an exchange, or lease for fair market value, upon those terms and conditions as the Director of General Services determines are in the best interests of the state, all or any part of the following real property pursuant to Section 11011.1 of the Government Code:
(1)Parcel 1, consisting of approximately 0.17 acres and improvements, known as the Department of Conservation field office located at 466 North Fifth Street, in Coalinga, Fresno County Assessor Parcel Number 072-111-16T.
(2)Parcel 2, consisting of approximately 29.93 acres and improvements, known as the Department of Forestry Crystal Creek Conservation Camp located at 2242 Highway 2999 West, in Whiskytown, Shasta County Assessor Parcel Number 011-290-038.
(b)To the extent that bonds issued by the State Public Works Board involve the property to be sold pursuant to this section, all issuer- and trustee-related costs associated with the review of any proposed sale, together with the costs related to the defeasance or retirement of any bonds, which may include the cost of nationally recognized bond counsel, shall be paid from the proceeds of any sale or lease authorized by this section.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to enable the proper disposal of surplus property to occur as soon as possible, it is necessary that this act take effect immediately.
(a)The Director of General Services may sell, exchange, sell combined with an exchange, or lease for fair market value, upon those terms and conditions as the Director of General Services determines are in the best interests of the state, all or any part of the following real property pursuant to Section 11011.1 of the Government Code:
(1)Parcel 1, consisting of approximately 0.17 acres and improvements, known as the Department of Conservation field office located at 466 North Fifth Street, in Coalinga, Fresno County Assessor Parcel Number 072-111-16T.
(2)Parcel 2, consisting of approximately 29.93 acres and improvements, known as the Department of Forestry Crystal Creek Conservation Camp located at 2242 Highway 2999 West, in Whiskytown, Shasta County Assessor Parcel Number 011-290-038.
(b)To the extent that bonds issued by the State Public Works Board involve the property to be sold pursuant to this section, all issuer- and trustee-related costs associated with the review of any proposed sale, together with the costs related to the defeasance or retirement of any bonds, which may include the cost of nationally recognized bond counsel, shall be paid from the proceeds of any sale or lease authorized by this section.
SECTION 1.It is the intent of the Legislature to enact legislation that would authorize the director to dispose of parcels of surplus state real property pursuant to Section 11011.1 of the Government Code.
It is the intent of the Legislature to enact legislation that would authorize the director to dispose of parcels of surplus state real property pursuant to Section 11011.1 of the Government Code.
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Date
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Status
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|---|---|
| May 28, 2015 | Read third time. Urgency clause adopted. Passed. (Ayes 39. Noes 0. Page 1119.) Ordered to the Assembly. |
| Sep 1, 2015 | Chaptered by Secretary of State. Chapter 233, Statutes of 2015. |
| Sep 1, 2015 | Approved by the Governor. |
| Aug 26, 2015 | Enrolled and presented to the Governor at 4:30 p.m. |
| Aug 20, 2015 | Read third time. Urgency clause adopted. Passed. (Ayes 79. Noes 0. Page 2534.) Ordered to the Senate. |
| Aug 20, 2015 | Read third time. Urgency clause adopted. Passed. Ordered to the Senate. |
| Aug 20, 2015 | In Senate. Ordered to engrossing and enrolling. |
| Jul 16, 2015 | Read second time. Ordered to consent calendar. |
| Jul 15, 2015 | From committee: Do pass. Ordered to consent calendar. (Ayes 16. Noes 0.) (July 15). |
| Jul 1, 2015 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 9. Noes 0.) (July 1). Re-referred to Com. on APPR. |
| Jul 1, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (July 1). Re-referred to Com. on APPR. |
| Jun 11, 2015 | Referred to Com. on A. & A.R. |
| May 28, 2015 | Read third time. Urgency clause adopted. Passed. (Ayes 39. Noes 0.) Ordered to the Assembly. |
| Feb 19, 2015 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
| May 28, 2015 | In Assembly. Read first time. Held at Desk. |
| May 27, 2015 | Read second time. Ordered to third reading. |
| May 26, 2015 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8. |
| May 19, 2015 | Set for hearing May 26. |
| May 12, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (May 12). Re-referred to Com. on APPR. |
| May 12, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0. Page 973.) (May 12). Re-referred to Com. on APPR. |
| May 1, 2015 | Set for hearing May 12. |
| Apr 27, 2015 | Re-referred to Com. on G.O. |
| Apr 27, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Apr 23, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Mar 5, 2015 | Referred to Com. on RLS. |
| Feb 20, 2015 | From printer. May be acted upon on or after March 22. |
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Date
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Description
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Location
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Votes
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|---|---|---|---|---|
| Aug 20, 2015 | SB 273 Hueso Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
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| Jul 15, 2015 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
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| Jul 1, 2015 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Accountability and Administrative Review |
Passed |
|
| May 28, 2015 | Senate 3rd Reading SB273 Hueso Urgency Clause | Senate Floor |
Passed |
|
| May 12, 2015 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Governmental Organization |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| (Verified 5 | ** Against | May 28, 2015 |
| Department of General Services | ** Support | May 28, 2015 |
Date of Hearing: July 15, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 273
(Hueso) – As Amended April 27, 2015
Policy Committee: |
Accountability and Administrative Review |
Vote: |
9 - 0 |
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Urgency: Yes State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill authorizes the Director of General Services (DGS) to dispose of the following state surplus properties:
The 0.17-acre Department of Conservation field office in Coalinga (Fresno County).
The 30-acres Department of Forestry's Crystal Creek Conservation Camp in Whiskeytown (Shasta County).
FISCAL EFFECT:
Unknown one-time General Fund revenue from sale of the properties. DGS's administrative costs will be reimbursed by proceeds of the sales.
COMMENTS:
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, and next to nonprofit affordable housing sponsors prior to offering the property to private entities through a bidding process.
According to DGS, the property in Coalinga was originally purchased in 1918 as a single-story, 1,670 square-foot home and is currently used as office space by the Department of Conservation. Despite upgrades over the years, this property no longer meets the department's program needs. Secondly, the conservation camp in Whiskeytown consists of approximately 30 acres acquired in the 1950s. Numerous fire support structures were added to the property shortly after acquisition, but the land and structures are currently undersized and no longer meet program needs. The Department of Forestry discontinued use of the site several years ago, which eventually resulted in structural damage to the facilities due to a lack of security at the site. Until disposal, this property will continue to pose a liability to the state.
Prior Legislation. The most recently enacted surplus property bills sponsored by DGS were:
AB 2174 (Assembly Accountability and Administrative Review Committee), Statutes of 2014.
AB 826 (Jones/Sawyer)/Statutes of 2013
SB 1580 (Senate Governmental Organization Committee)/Statutes of 2012
AB 1272 (Butler)/Statutes of 2011
Analysis Prepared by: Chuck Nicol / APPR. / (916) 319-2081
SB 273
Page 2
Date of Hearing: July 1, 2015
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Rudy Salas, Chair
SB 273
(Hueso) – As Amended April 27, 2015
SENATE VOTE: 39-0
SUBJECT: State real property: surplus.
SUMMARY: Authorizes the Department of General Services (DGS) to dispose of two surplus state properties, a Department of Conservation field office in Fresno County and a Department of Forestry conservation camp in Shasta 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: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS: This measure is the annual surplus property bill sponsored by DGS. State agencies are required by Government Code Section 11011 to identify real properties that are excess to their needs. Legislative authorization is needed to declare real properties as surplus and permit their disposal by DGS.
The two parcels in this bill have been identified by state agencies as no longer serving a programmatic need. DGS provides the following rationale for deeming the properties in this bill surplus:
"The Department of Conservation property in Coalinga (Fresno County) was originally purchased in 1918 as a single story 1,670 square foot home on an approximately 0.17 acre lot. Today it is used as office space. Yet, despite upgrades over the years, it no longer meets program needs.
The Department of Forestry conservation camp in Whiskeytown (Shasta
County) consists of approximately 30 acres which were acquired in the
1950s. Numerous fire support structures were added to the property
shortly after acquisition but the land and structures are currently
undersized and no longer meet program needs. The Department of
Forestry discontinued use of the site several years ago which
eventually resulted in structural damage to the facilities due to a
lack of security at the site. Until disposed of, this particular
property will continue to pose a liability to the state.
While these properties remain under state ownership, they may have additional issues, such as non-compliance with the Americans with Disabilities Act, pose security concerns, or cost the state money to maintain and secure while vacant. In addition there could be significant costs associated with making these properties compliant with current building standards."
All
proceeds generated from the sale of surplus properties are used to
pay the holders of the state's deficit reduction bonds.
PRIOR
LEGISLATION: The following measures are the most recent surplus
property bills sponsored by DGS and enacted into law:
AB 2174 (Assembly Accountability and Administrative Review Committee), Chapter 337, Statutes of 2014
AB 826 (Jones-Sawyer), Chapter 505, Statutes of 2013
SB 1580 (Senate Governmental Organization Committee), Chapter 798, Statutes of 2012
AB 1272 (Butler), Chapter 178, Statutes of 2011
SB 136 (Huff), Chapter 166, Statutes of 2009
REGISTERED SUPPORT / OPPOSITION:
Support
Department of General Services (sponsor)
Opposition
None on file
Analysis Prepared by: Cassie Royce / A. & A.R. / (916) 319-3600
SB 273
Page 5
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Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: SB 273
Amended: 4/27/15
SENATE GOVERNMENTAL ORG. COMMITTEE: 9-0, 5/12/15
AYES: Hall, Berryhill, Galgiani, Hernandez, Hill, Hueso, Lara, McGuire, Vidak
NO VOTE RECORDED: Block, Gaines
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: State real property: surplus
SOURCE: Department of General Services
DIGEST: This bill authorizes the Department of General Services (DGS) to dispose of two parcels deemed surplus – a Department of Conservation field office in Coalinga (Fresno County) and a Department of Forestry conservation camp in Whiskeytown (Shasta County).
ANALYSIS:
Existing law:
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.
Establishes criteria for state agencies to use in determining and reporting excess lands. A state agency must report land as surplus that is:
Not currently utilized, or is underutilized, for any existing or ongoing programs;
Land for which the agency cannot identify any specific utilization relative to future needs; and,
Land not identified by the state agency within its master plan for facility development.
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.
Exempts the sale of surplus property sold “as is” from designated provisions of the California Environmental Quality Act (CEQA). However, the buyer or transferee of a parcel is subject to CEQA as well as any local governmental entitlement or land use approval requirements.
Authorizes DGS to sell surplus real property to a local agency or to a nonprofit affordable housing sponsor for affordable housing projects at a sales price less than fair market value if DGS determines that such a discount will enable the provision of housing for persons and families of low or moderate income.
Requires, unless otherwise specified by law, that 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.
This bill:
Authorizes DGS to sell, exchange, sell combined with an exchange, or lease for fair market value, upon terms and conditions deemed to be in the best interests of the state, the following real property:
Parcel 1, consisting of 0.17 acres and improvements, known as the Department of Conservation field office located at 466 North Fifth Street, in Coalinga, Fresno County.
Parcel 2, consisting of approximately 29.93 acres and improvements, known as the Department of Forestry Crystal Creek Conservation Camp located at 2242 Highway 299 West, in Whiskeytown, Shasta County.
Requires that, to the extent that bonds issued by the State Public Works Board involve the property to be sold pursuant to this bill, all issuer and trustee related costs associated with the review of any proposed sale, together with the costs related to the defeasance or retirement of any bonds, which may include the cost of nationally recognized bond counsel, shall be paid from the proceeds of any sale or lease authorized by this bill’s provisions.
Contains an urgency clause to take effect immediately.
Background
This is the annual DGS sponsored legislation for the disposal of surplus state real property. State law requires state agencies to identify real properties that are excess to their needs. Legislative authorization is needed to declare real properties as surplus and to authorize their disposal by DGS.
All proceeds generated from the sale of surplus properties are deposited into the Deficit Recovery Bond Retirement Sinking Fund Subaccount to pay the principal and interest on bonds issued pursuant to the 2004 Economic Recovery Bond Act. Once the principal and interest on those bonds are fully paid, the proceeds from the sale of surplus state property are deposited into the Special Fund for Economic Uncertainties, or any successor fund.
DGS’ Real Estate Services Division (RESD) is responsible for the disposition of state surplus real property assets. RESD is also responsible for determining the present and future space needs of state agencies, administering the sales and leasing of state-owned surplus property, and leasing privately-owned space for state agencies. RESD also assists state landholding agencies in making real estate decisions regarding their properties.
DGS reports that the Department of Conservation property in Coalinga was originally purchased in 1918 as a single story 1,670 square foot home on an approximately 0.17 acre lot. Today it is used as office space yet despite upgrades over the years it no longer meets program needs.
DGS
notes that the Department of Forestry conservation camp in
Whiskeytown consists of approximately 29.93 acres which were acquired
in the 1950s. Numerous fire support structures were added to the
property shortly after acquisition but the land and structures are
currently undersized and no longer meet program needs. The
Department of Forestry discontinued use of the site several years ago
which eventually resulted in structural damage to the facilities due
to a lack of security at the site. DGS claims that until disposed
of, this particular property will continue to pose a liability to the
state.
Prior/Related Legislation
SB 536 (Roth, 2015) authorizes DGS, with the approval of the Adjutant General, to sell seven specified state armory properties that are no longer considered needed by the California Military Department.
AB 2174 (Committee on Accountability and Administrative Review, Chapter 337, Statutes of 2014) authorized DGS to dispose of certain state surplus property, subject to specified conditions.
AB 826 (Jones-Sawyer, Chapter 505, Statutes of 2013) authorized DGS to dispose of eight specified parcels of state property.
SCA 18 (Johnson, Chapter 103, Statutes of 2004) required, among other things, that the proceeds from the sale of surplus state real property be used to pay the principal and interest on the Economic Recovery Bond Act of 2004. The provisions relating to state property were adopted by the electorate in Proposition 60A of 2004.
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No
SUPPORT:
(Verified 5/26/15)
Department of General Services (source)
OPPOSITION: (Verified 5/26/15
None received
ARGUMENTS IN SUPPORT: According to DGS, the properties contained in this bill have been identified by state agencies as no longer serving a programmatic need. DGS points out that “while these properties remain under state ownership, they may have additional issues, such as non-compliance with the Americans with Disabilities Act, pose security concerns, or cost the state money to maintain and secure while vacant. In addition there could be significant costs associated with making these properties compliant with current building standards.”
Prepared by: Arthur Terzakis / G.O. / (916) 651-1530
5/27/15 9:21:13
**** END ****
SB 273 (Hueso) Page 5 of 5
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Isadore Hall, III
Chair
2015 - 2016 Regular
Bill No: SB 273 Hearing Date: 5/12/2015
Author: |
Hueso |
||
Version: |
4/27/2015 |
||
Urgency: |
Yes |
Fiscal: |
Yes |
Consultant: |
Arthur Terzakis |
||
SUBJECT: State real property: surplus.
DIGEST: This bill authorizes the Department of General Services (DGS) to dispose of two parcels deemed surplus – a Department of Conservation field office in Coalinga (Fresno County) and a Department of Forestry conservation camp in Whiskeytown (Shasta County).
ANALYSIS:
Existing law:
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.
Establishes criteria for state agencies to use in determining and reporting excess lands. A state agency must report land as surplus that is:
Not currently utilized, or is underutilized, for any existing or ongoing programs;
Land for which the agency cannot identify any specific utilization relative to future needs; and,
Land not identified by the state agency within its master plan for facility development.
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.
Exempts the sale of surplus property sold “as is” from designated provisions of the California Environmental Quality Act (CEQA). However, the buyer or transferee of a parcel is subject to CEQA as well as any local governmental entitlement or land use approval requirements.
Authorizes DGS to sell surplus real property to a local agency or to a nonprofit affordable housing sponsor for affordable housing projects at a sales price less than fair market value if DGS determines that such a discount will enable the provision of housing for persons and families of low or moderate income.
Requires, unless otherwise specified by law, that 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.
This bill:
Authorizes DGS to sell, exchange, sell combined with an exchange, or lease for fair market value, upon terms and conditions deemed to be in the best interests of the state the following real property:
Parcel 1, consisting of 0.17 acres and improvements, known as the Department of Conservation field office located at 466 North Fifth Street, in Coalinga, Fresno County.
Parcel 2, consisting of approximately 29.93 acres and improvements, known as the Department of Forestry Crystal Creek Conservation Camp located at 2242 Highway 299 West, in Whiskeytown, Shasta County.
Requires that, to the extent that bonds issued by the State Public Works Board involve the property to be sold pursuant to this bill, all issuer and trustee related costs associated with the review of any proposed sale, together with the costs related to the defeasance or retirement of any bonds, which may include the cost of nationally recognized bond counsel, shall be paid from the proceeds of any sale or lease authorized by this bill’s provisions.
Contains an urgency clause to take effect immediately.
Background
This is the annual DGS sponsored legislation for the disposal of surplus State real property. State law requires state agencies to identify real properties that are excess to their needs. Legislative authorization is needed to declare real properties as surplus and to authorize their disposal by DGS.
All proceeds generated from the sale of surplus properties are deposited into the Deficit Recovery Bond Retirement Sinking Fund Subaccount to pay the principal and interest on bonds issued pursuant to the 2004 Economic Recovery Bond Act. Once the principal and interest on those bonds are fully paid, the proceeds from the sale of surplus state property are deposited into the Special Fund for Economic Uncertainties, or any successor fund.
DGS’ Real Estate Services Division (RESD) is responsible for the disposition of state surplus real property assets. RESD is also responsible for determining the present and future space needs of state agencies, administering the sales and leasing of state-owned surplus property, and leasing privately-owned space for state agencies. RESD also assists state landholding agencies in making real estate decisions regarding their properties.
DGS reports that the Department of Conservation property in Coalinga was originally purchased in 1918 as a single story 1,670 square foot home on an approximately 0.17 acre lot. Today it is used as office space yet despite upgrades over the years it no longer meets program needs.
DGS
notes that the Department of Forestry conservation camp in
Whiskeytown consists of approximately 29.93 acres which were acquired
in the 1950’s. Numerous fire support structures were added to the
property shortly after acquisition but the land and structures are
currently undersized and no longer meet program needs. The
Department of Forestry discontinued use of the site several years ago
which eventually resulted in structural damage to the facilities due
to a lack of security at the site. DGS claims that until disposed
of, this particular property will continue to pose a liability to the
state.
Staff Comments. As this bill moves through the legislative process the author may wish to consider the following technical amendments:
Amendment #1: on page 2, line 13, strike “
Highway 2999” and insert “Highway 299”
Amendment #2: on page 2, line 14, strike “
Whiskytown” and insert “Whiskeytown”
Prior/Related Legislation
SB 536 (Roth, 2015) authorizes DGS, with the approval of the Adjutant General, to sell seven specified state armory properties that are no longer considered needed by the California Military Department. (Pending in Senate Appropriations Committee)
AB 2174 (Committee on Accountability and Administrative Review, Chapter 337, Statutes of 2014) authorized DGS to dispose of certain state surplus property, subject to specified conditions.
AB 826 (Jones-Sawyer, Chapter 505, Statutes of 2013) authorized DGS to dispose of 8 specified parcels of state property.
SB 1580 (Committee on Governmental Organization, Chapter 798, Statutes of 2012) authorized DGS, with the approval of the Adjutant General, to sell four specified armories. The bill also required the proceeds from the sale of the armories to be deposited in the Armory Fund. Additionally, the bill required that DGS be reimbursed for any reasonable costs or expenses incurred in conducting a transaction involving those armories. Furthermore, the bill authorized DGS to sell 3 additional parcels of state property, as specified.
AB 1272 (Butler, Chapter 178, Statutes of 2011) authorized DGS to dispose of certain state office buildings located in Hollywood, Los Angeles, and Oroville. Other properties included the Hidden Lakes Estates Parcel near Millerton Lake Recreation Area, the Digger Butte Lookout near Red Bluff, and the Campbellville Lookout, located near Chico.
SB 1167 (Cogdill, Chapter 327, Statutes of 2010) authorized DGS to dispose of all or any portion of two parcels of real property – the Veterinary Laboratory for the Department of Food and Agriculture located in Fresno and the Department of Motor Vehicles field office located in Roseville, Placer County.
AB 2279 (Evans, Chapter 595, Statutes of 2010) authorized DGS to sell or exchange, at fair market value based upon an appraisal approved by DGS, all or part of a specified parcel of state property only to the County of Napa upon terms, conditions, reservations, and exceptions that DGS determines are in the best interest of the state, by January 1, 2015.
SB 136 (Huff, Chapter 166, Statutes of 2009) authorized DGS to dispose of three specified parcels of real property pursuant to certain provisions.
ABX2-8 (Nestande, Chapter 6, Statutes of 2009-10, Second Extraordinary Session) exempted the sale of surplus state real property made on an “as is” basis from designated provisions of CEQA. The bill also exempted from those provisions of CEQA the execution of the purchase and sale agreement or the exchange agreement for surplus state real property if the disposition is not made on an “as is” basis and the close of escrow is contingent on a specified requirement or compliance with CEQA.
SCA 18 (Johnson, Chapter 103, Statutes of 2004) required, among other things, that the proceeds from the sale of surplus state real property be used to pay the principal and interest on the Economic Recovery Bond Act of 2004. The provisions relating to state property were adopted by the electorate in Proposition 60A of 2004.
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No
SUPPORT:
Department of General Services
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: According to DGS, the properties contained in this bill have been identified by state agencies as no longer serving a programmatic need. DGS points out that “while these properties remain under state ownership, they may have additional issues, such as non-compliance with the Americans with Disabilities Act, pose security concerns, or cost the state money to maintain and secure while vacant. In addition there could be significant costs associated with making these properties compliant with current building standards.”
Discussed in Hearing
1MIN
Senate Floor
2MIN
Senate Standing Committee on Governmental Organization
Bill Author
Bill Co-Author(s):