(1)Existing law provides that the Director of General Services may dispose of surplus state real property if 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 specified state properties pursuant to these provisions, subject to conditions relating to the approval of the agreement to the extent the property is subject to outstanding bonds.

(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, the final payment of which was made in the 201516 fiscal year, after which these proceeds are required to be deposited into the Special Fund for Economic Uncertainties, a continuously appropriated fund.

By increasing the amount transferred into the Special Fund for Economic Uncertainties, a continuously appropriated fund, this bill would make an appropriation.

(1)Existing law provides that the Director of General Services may dispose of surplus state real property if 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 specified state properties pursuant to these provisions, subject to conditions relating to the approval of the agreement to the extent the property is subject to outstanding bonds.

(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, the final payment of which was made in the 201516 fiscal year, after which these proceeds are required to be deposited into the Special Fund for Economic Uncertainties, a continuously appropriated fund.

By increasing the amount transferred into the Special Fund for Economic Uncertainties, a continuously appropriated fund, this bill would make an appropriation.

(1)Existing law provides that the Director of General Services may 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 specified state properties pursuant to these provisions, subject to conditions relating to the approval of the agreement to the extent the property is subject to outstanding bonds.

(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, the final payment of which was made in the 201516 fiscal year, after which these proceeds are required to be deposited into the Special Fund for Economic Uncertainties, a continuously appropriated fund.

By increasing the amount transferred into the Special Fund for Economic Uncertainties, a continuously appropriated fund, this bill would make an appropriation.

(1)Existing law provides that the Director of General Services may 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 a specified state property properties pursuant to these provisions, subject to conditions specified in the act relating to the approval of the agreement. agreement to the extent the property is subject to outstanding bonds.

(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, the final payment of which was made in the 201516 fiscal year, after which these proceeds are required to be deposited into the Special Fund for Economic Uncertainties, a continuously appropriated fund.

By increasing the amount transferred into the Special Fund for Economic Uncertainties, a continuously appropriated fund, this bill would make an appropriation.

The Property Acquisition Law requires that all real property and interests in real property to be acquired by or for any state agency, with specified exceptions, be acquired by the State Public Works Board. Existing law allows the State Public Works Board to enter into payment agreements, including agreements that provide for interest payments, with the owner of property to be acquired.

This bill would require the State Public Works Board to, by January 1, 2020, and annually on that date thereafter, submit a report to the Legislature describing any payment agreement or interest payment resulting from a property acquisition.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1977

Author:(Committee on Accountability and Administrative Review)

As Amended Ver:June 13, 2018

2/3 vote

Original Committee Reference: A. & A.R.

SUMMARY: Authorizes the Director of the Department of General Services (DGS) to dispose of specified state-owned surplus properties.

The Senate amendments add three former California Highway Patrol (CHP) area offices to the list of surplus properties and make technical, nonsubstantive changes.

FISCAL EFFECT: According to the Senate Appropriations Committee:

1. Unknown, but potentially significant costs to DGS for selling the surplus properties which would be repaid from the property sale proceeds. (Property Acquisition Law)
2. Unknown potential revenue from the net property sale proceeds that exceeds the amount required to be repaid to the Property Acquisition Law Money Account for selling the property. (Special Fund for Economic Uncertainties, Motor Vehicle Account)
3. Cost savings of over $1 million per year, following the sale of the properties, at which point DGS and CHP will no longer maintain the properties in warm shutdown. (General Fund)

COMMENTS: This measure is the surplus property bill sponsored by DGS. State agencies are required to identify real properties which are excess to their needs. Legislative authorization is needed to declare real properties as surplus and permit their disposal by DGS.

DGS provides the following justification for the properties specified in this bill:

The Santa Ana State Office Building is in major disrepair. To minimize ongoing security risks, liability, and costs to secure and maintain the building, DGS seeks legislative authorization to declare the building surplus and dispose of it. For the DGS portfolio outside of Sacramento, the building was ranked second in need for repair or replacement. Further investment in renovations is not cost-effective and the building has significant safety and security issues due to its location.

The CHP properties no longer meet CHP's programmatic needs. They are being replaced in a statewide effort to upgrade out-of-date and undersized existing area offices. They were not constructed to meet modern building codes, including current Americans with Disability Act requirements. In addition, the offices were not originally designed with women's locker rooms, are not energy efficient, and were constructed with hazardous materials such as asbestos. Replacement area offices are under construction nearby.

Analysis Prepared by: Cassie Royce / A. & A.R. / (916) 319-3600 FN: 0003768

 THIRD READING  

Bill No: AB 1977

Author:

:

Vote:

SENATE GOVERNMENTAL ORG. COMMITTEE: 10-0, 6/12/18

AYES: Dodd, Wilk, Cannella, Gaines, Galgiani, Glazer, Hill, Hueso, Portantino, Vidak

NO VOTE RECORDED: Bradford, Lara

SENATE APPROPRIATIONS COMMITTEE: 7-0, 7/2/18

AYES: Portantino, Bates, Beall, Bradford, Hill, Nielsen, Wiener

ASSEMBLY FLOOR: 74-0, 4/26/18 (Consent) - See last page for vote

SUBJECT:

SOURCE: Department of General Services

DIGEST:

This bill authorizes the Director of the Department of General Services (DGS) to dispose of the following specified state surplus properties: the Santa Ana State Building in Santa Ana, Orange County; the California Highway Patrol (CHP) area office in Crescent City, Del Norte County; the CHP area office in Truckee, Nevada County; and the CHP area office in San Diego, San Diego County.

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 interest of the state.
2. Establishes criteria for state agencies to use in determining and reporting excess lands. A state agency must report land as surplus that is:
   1. Not currently utilized, or is underutilized, for any existing or ongoing programs;
   2. Land for which the agency cannot identify any specific utilization relative to future needs; and,
   3. Land not identified by the state agency within its master plan for facility development.
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. 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 dispose of the following specified state surplus properties:

1. Parcel 1, consisting of approximately 0.61 acres and improvements, known as the DGS’ Santa Ana State Building, located at 605 West Santa Ana Boulevard, in Santa Ana, Orange County, Assessor Parcel Number 008-067-36.
2. Parcel 2, consisting of approximately 0.75 acres and improvements, known as the CHP area office located at 1444 Parkway Drive, in Crescent City, Del Norte County, Assessor Parcel Number 117-030-016-000.
3. Parcels 3 and 4, consisting of approximately 1.73 acres and improvements, known as the CHP area office located at 10077 State Route 89 South in Truckee, Nevada County, Assessor Parcel Numbers 18-0621-006 and 18-0621-005.
4. Parcel 5, consisting of approximately 1.85 acres and improvements, known as the CHP area office located at 4902 Pacific Highway in San Diego, San Diego County, Assessor Parcel Number 436-740-01-00.

Background

Purpose of the bill. 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.

Santa Ana State Office Building. The Santa Ana State Office Building is in major disrepair. To minimize ongoing security risks, liability, and costs to secure and maintain the building, DGS seeks legislative authorization to declare the building surplus and dispose of it. It is located in downtown Santa Ana’s Civic Center, near many state, federal, city and county offices. For the DGS portfolio outside of Sacramento, the building was ranked second in need for repair or replacement. Further investment in renovations, including $15 million in deferred maintenance alone, is not cost-effective, and the building has significant safety and security issues due to its location.

California Highway Patrol area offices: Crescent City, Truckee and San Diego. These CHP properties were constructed in 1964, 1964, and 1973, respectively, and no longer meet CHP’s programmatic needs. They are being replaced in a statewide effort to upgrade out-of-date and undersized existing area offices. They were not constructed to the Essential Services Buildings Seismic Safety Act of 1986 standards or modern building codes, including current Americans with Disability Act requirements. In addition, the offices were not originally designed with women’s locker rooms, are not energy efficient, and were constructed with hazardous materials such as asbestos. Replacement area offices are under construction nearby.

Related/Prior Legislation

AB 3137 (Rodriguez, 2018) authorizes the City of Pomona to convey to the Consolidated Fire Protection District of the County of Los Angeles a portion of former state surplus property, as specified. (Pending in the Senate Appropriations Committee)

SB 922 (Nguyen, 2018) would have authorized DGS to dispose of state surplus property located within two miles of a campus of the University of California, California State University, or California Community College by first offering the property to a local agency or a nonprofit organization for the development of affordable student housing. (Failed passage in the Senate Governmental Organization Committee)

SB 814 (Governmental Organization Committee, Chapter 815, Statutes of 2017) authorized DGS to dispose of a specified parcel of state property, consisting of approximately 65 acres, known as a a portion of the Department of Corrections and Rehabilitation’s Preston Youth Correctional Facility in Amador County.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee, unknown, but potentially significant costs to DGS for selling the surplus properties which would be repaid from the property sale proceeds. (Property Acquisition Law)

Unknown potential revenue from the net property sale proceeds that exceeds the amount required to be repaid to the Property Acquisition Law Money Account for selling the property (Special Fund for Economic Uncertainties, Motor Vehicle Account)

Cost savings of over $1 million per year, following the sale of the properties, at which point DGS and CHP will no longer maintain the properties in warm shutdown. (GF)

SUPPORT: (Verified 7/2/18)

Department of General Services (source)

OPPOSITION: (Verified 7/2/18)

None received

ASSEMBLY FLOOR: 74-0, 4/26/18

AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Frazier, Friedman, Gallagher, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Travis Allen, Fong, Cristina Garcia, Rodriguez

Prepared by:

7/3/18 15:49:37

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2017 - 2018 Regular Session

AB 1977 (Committee on Accountability and Administrative Review) - State real property: surplus

This bill does not meet the criteria for referral to the Suspense File.

Bill Summary:

AB 1977 would authorize the Director of the Department of General Services (DGS) to dispose of the following specified state surplus properties: the Santa Ana State Building in Santa Ana, Orange County; the California Highway Patrol (CHP) area office in Crescent City, Del Norte County; and the CHP area office in Truckee, Nevada County; the CHP area office in San Diego, San Diego County.

Fiscal Impact:

• Unknown, but potentially significant costs to DGS for selling the surplus properties which would be repaid from the property sale proceeds. (Property Acquisition Law)
• Unknown potential revenue from the net property sale proceeds that exceeds the amount required to be repaid to the Property Acquisition Law Money Account for selling the property (Special Fund for Economic Uncertainties, Motor Vehicle Account)
• Cost savings of over $1 million per year, following the sale of the properties, at which point DGS and CHP will no longer maintain the properties in warm shutdown. (GF)

Background:

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.

All proceeds 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. Once the principal and interest on those bonds were fully paid, the proceeds from the sale of the surplus state property are to be deposited into the Special Fund for Economic Uncertainties (or other successor fund). The Economic Recovery Bonds were repaid in the 2014-15 fiscal year; therefore, all net property sale proceeds will be deposited into the Special Fund for Economic Uncertainties.

The Santa Ana State Office Building is in major disrepair. To minimize ongoing security risks, liability, and costs to secure and maintain the building, DGS seeks to declare the building surplus and dispose of it.

The CHP properties in Crescent City, Truckee, and San Diego no longer meet CHP’s programmatic needs. They are being replaced in a statewide effort to upgrade out-of-date and undersized existing are offices. Replacement area offices are under construction nearby.

Proposed Law:

This bill would authorize the Director of DGS to dispose of the following specified state surplus properties: the Santa Ana State Building in Santa Ana, Orange County; the CHP area office in Crescent City, Del Norte County; and the CHP area office in Truckee, Nevada County; the CHP area office in San Diego, San Diego County.

Related Legislation:

SB 922 (Nguyen, 2018) would have authorized DGS to dispose of state surplus property located within two miles of a campus of the University of California, California State University, or California Community College by first offering the property to a local agency or a nonprofit organization for the development of affordable student housing. This bill was held in the Senate Governmental Organization Committee.

The following measures are the most recent surplus property bills enacted into law:

AB 1709 (Veterans Affairs Committee, Chapter 304, Statutes of 2017)

SB 1057 (Weber, Chapter 147, Statutes of 2017)

SB 814 (Governmental Organization Committee, Chapter 815, Statutes of 2017)

AB 2247 (Williams, Chapter 382, Statutes of 2016)

SB 536 (Roth, Chapter 355, Statutes of 2015)

SB 273 (Hueso, Chapter 233, Statutes of 2015)

AB 2174 (Committee on Accountability and Administrative Review, Chapter 337, Statutes of 2014)

AB 826 (Jones-Sawyer, Chapter 505, Statutes of 2013)

SB 1850 (Committee on Governmental Organization, Chapter 798, Statutes of 2012)

AB 1272 (Butler, Chapter 178, Statutes of 2011)

SB 1167 (Cogdill, Chapter 327, Statutes of 2010)

Staff Comments:

Though upfront costs for the sale of the property would come from the Property Acquisition Law Money Account, this amount would be recouped from property sale proceeds following the sale of the property, therefore resulting in no net fiscal impact to DGS. Any additional revenue from the sale of the property would be deposited into the Special Fund for Economic Uncertainties (Santa Ana State Building) or Motor Vehicle Account (CHP buildings). The Special Fund for Economic Uncertainties is a continuously appropriated fund; therefore, by increasing the amount transferred into this fund, this bill would make an appropriation.

-- END --

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Bill Dodd

Chair

2017 - 2018 Regular

Bill No: AB Hearing Date: 6/12/2018

SUBJECT:

DIGEST: This bill authorizes the Director of the Department of General Services (DGS) to dispose of the following specified state surplus properties: the Santa Ana State Building in Santa Ana, Orange County; the California Highway Patrol (CHP) area office in Crescent City, Del Norte County; the CHP area office in Truckee, Nevada County; the CHP area office in San Diego, San Diego County.

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 interest of the state.
2. Establishes criteria for state agencies to use in determining and reporting excess lands. A state agency must report land as surplus that is:
   1. Not currently utilized, or is underutilized, for any existing or ongoing programs;
   2. Land for which the agency cannot identify any specific utilization relative to future needs; and,
   3. Land not identified by the state agency within its master plan for facility development.
      
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. 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.
   
5. 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 housing for persons and families of low or moderate income.
   
6. 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 dispose of the following specified state surplus properties:

• 1. Parcel 1, consisting of approximately 0.61 acres and improvements, known as a portion of the Department of General Services’ Santa Ana State Building, located at 605 West Santa Ana Boulevard, in Santa Ana, Orange County, Assessor Parcel Number 008-067-36.
  2. Parcel 2, consisting of approximately 0.75 acres and improvements, known as the California Highway Patrol area office located at 1444 Parkway Drive, in Crescent City, Del Norte County, Assessor Parcel Number 117-030-016-000.
  3. Parcels 3 and 4, consisting of approximately 1.73 acres and improvements, known as the California Highway Patrol area office located at 10077 State Route 89 South in Truckee, Nevada County, Assessor Parcel Numbers 18-0621-006 and 18-0621-005.
  4. Parcel 5, consisting of approximately 1.85 acres and improvements, known as the California Highway Patrol area office located at 4902 Pacific Highway in San Diego, San Diego County, Assessor Parcel Number 436-740-01-00.

Background

Purpose of the bill. 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.

Santa Ana State Office Building. The Santa Ana State Office Building is in major disrepair. To minimize ongoing security risks, liability, and costs to secure and maintain the building, DGS seeks legislative authorization to declare the building surplus and dispose of it. It is located in downtown Santa Ana’s Civic Center, near many state, federal, city and county offices. For the DGS portfolio outside of Sacramento, the building was ranked second in need for repair or replacement. Further investment in renovations, including $15 million in deferred maintenance alone, is not cost-effective, and the building has significant safety and security issues due to its location.

California Highway Patrol area offices: Crescent City, Truckee and San Diego. These CHP properties were constructed in 1964, 1964, and 1973, respectively, and no longer meet CHP’s programmatic needs. They are being replaced in a statewide effort to upgrade out-of-date and undersized existing area offices. They were not constructed to the Essential Services Buildings Seismic Safety Act of 1986 standards or modern building codes, including current Americans with Disability Act requirements. In addition, the offices were not originally designed with women’s locker rooms, are not energy efficient, and were constructed with hazardous materials such as asbestos. Replacement area offices are under construction nearby.

Author’s amendment. To correct a drafting error, the author has agreed to accept the following amendment in committee:

1. On page 2, line 9, strike “a portion of.”

Prior/Related Legislation

SB 922 (Nguyen, 2018) would have authorized DGS to dispose of state surplus property located within two miles of a campus of the University of California, California State University, or California Community College by first offering the property to a local agency or a nonprofit organization for the development of affordable student housing. (Failed passage in the Senate Governmental Organization Committee)

AB 1709 (Veterans Affairs Committee, Chapter 304, Statutes of 2017) required that an armory be offered for sale to a local agency, as defined, prior to being offered for sale to private entities or individuals.

SB 814 (Governmental Organization Committee, Chapter 815, Statutes of 2017) authorized DGS to dispose of a specified parcel of state property, consisting of approximately 65 acres, known as a a portion of the Department of Corrections and Rehabilitation’s Preston Youth Correctional Facility in Amador County.

SB 1057 (Weber, Chapter 147, Statutes of 2017) required the Director of DGS, with the approval of the Adjutant General, to offer an option to purchase a portion of the California Military Department’s San Diego Armory, as specified, to the San Diego Center for Children, a nonprofit organization.

AB 2247 (Williams, Chapter 382, Statutes of 2016) required the Director of DGS, with the approval of the Adjutant General, to grant specified cities and school districts an option to purchase the Santa Barbara Armory, Brawley Armory, Indio Armory, Lynwood Armory, and Ponoma Armory, as defined.

SB 273 (Hueso, Chapter 233, Statutes of 2015) authorized 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.

SB 536 (Roth, Chapter 355, Statutes of 2015) authorized 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 (Accountability and Administrative Review Committee, 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, as specified.

SB 1580 (Governmental Organization Committee, 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 three 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.

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 (Source)

OPPOSITION:

None received

Date of Hearing: April 18, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 1977

Author:(Committee on Accountability and Administrative Review) – As Amended Ver:April 2, 2018

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill authorizes the Director of the Department of General Services (DGS) to dispose of the Santa Ana State Office Building, a DGS-managed building in Orange County.

FISCAL EFFECT:

1. Unknown one-time revenue from the net proceeds of the property disposition. The net proceeds will be deposited into the Special Fund for Economic Uncertainties per the California Constitution. There are no outstanding bonds on the property.
2. No net costs to DGS for disposing of the property. Existing law allows DGS upfront costs for selling surplus properties to be covered by the sale proceeds.
3. DGS estimates potential annual savings of $1.1 million from avoiding warm shutdown costs after the building is vacated. These costs include building management, security, utilities, etc.

COMMENTS:

1. Purpose and Background. This is the annual DGS surplus property bill. Current law requires each state agency to annually review and determine if any lands under its 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.
   

DGS provides the following justification for the property specified in this bill:

The Santa Ana State Office Building is in major disrepair. To minimize ongoing security risks, liability, and costs to secure and maintain the building, DGS seeks legislative authorization to declare the building surplus and dispose of it. It is located in downtown Santa Ana’s Civic Center, near many state, federal, city and county offices. For the DGS portfolio outside of Sacramento, the building was ranked second in need for repair or replacement. Further investment in renovations, including $15 million in deferred maintenance alone, is not cost-effective, and the building has significant safety and security issues due to its location.

1. Prior Legislation. The following measures are the most-recent surplus property authorization and rescission bills sponsored by DGS and enacted into law:
   

AB 2904 (Assembly A. & A.R. Committee), Chapter 207, Statutes of 2016.

AB 2174 (Assembly A. & A.R. 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.

AB 2026 (Villines), Chapter 761, Statutes of 2008.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 11, 2018

ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW

Susan Talamantes Eggman, Chair

ABPCA Bill Id:AB 1977 (

Author:Committee on A.& A.R. ) – As Amended Ver:April 2, 2018

SUBJECT: State real property: surplus

SUMMARY: Authorizes the Director of the Department of General Services (DGS) to declare a property known as the Santa Ana State Building surplus in order to permit its disposal by DGS.

EXISTING LAW requires all state agencies to annually review and determine if any lands under their jurisdiction are in excess of programmatic 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.

FISCAL EFFECT: Unknown

COMMENTS: This measure is the surplus property bill sponsored by DGS. State agencies are required to identify real properties which are excess to their needs. Legislative authorization is needed to declare real properties as surplus and permit their disposal by DGS.

DGS provides the following justification for the property specified in this bill:

"The Santa Ana State Office Building is in major disrepair. To minimize ongoing security risks, liability, and costs to secure and maintain the building, DGS seeks legislative authorization to declare the building surplus and dispose of it. It is located in downtown Santa Ana’s Civic Center, near many state, federal, city and county offices. For the DGS portfolio outside of Sacramento, the building was ranked second in need for repair or replacement. Further investment in renovations, including $15 million in deferred maintenance alone, is not cost-effective, and the building has significant safety and security issues due to its location."

PRIOR LEGISLATION: The following measures are the most recent surplus property authorization and rescission bills sponsored by DGS and enacted into law:

1. AB 2904 (Assembly A. & A.R. Committee), Chapter 207, Statutes of 2016
2. AB 2174 (Assembly A. & A.R. Committee), Chapter 337, Statutes of 2014
3. AB 826 (Jones-Sawyer), Chapter 505, Statutes of 2013
4. SB 1580 (Senate Governmental Organization Committee), Chapter 798, Statutes of 2012
5. AB 1272 (Butler), Chapter 178, Statutes of 2011
6. SB 136 (Huff), Chapter 166, Statutes of 2009
7. AB 2026 (Villines), Chapter 761, Statutes of 2008
   

REGISTERED SUPPORT / OPPOSITION:

Support

Department of General Services (sponsor)

Opposition

None on file.

Analysis Prepared by: Cassie Royce / A. & A.R. / (916) 319-3600

Date of Hearing: March 21, 2018

ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW

Susan Talamantes Eggman, Chair

ABPCA Bill Id:AB 1977 (

Author:Committee on A. & A.R. ) – As Introduced Ver:January 31, 2018

SUBJECT: State government: property acquisition

SUMMARY: Requires the State Public Works Board (PWB) to annually notify the Legislature of any payment agreement or interest payment resulting from a property acquisition.

EXISTING LAW:

1. Establishes the PWB, consisting of the directors of the Departments of Finance, General Services and Transportation, to oversee fiscal matters associated with construction of capital outlay projects for state agencies, and to select and acquire real property for state facilities and programs.
2. Allows the PWB to enter into agreements, including payment and interest agreements, with the owner of the property to be acquired.

FISCAL EFFECT: Unknown

COMMENTS: Current law allows the PWB, at the request of a seller of property, to acquire the property via payment agreements, whereby the property can be acquired over a period of up to 10 years, with interest. However, there is currently no annual reporting requirement for these types of transactions. This bill is intended to provide additional transparency to the PWB's process by requiring the PWB to annually notify the Legislature of all payment agreements or interest payments resulting from property acquisitions.

PRIOR LEGISLATION: AB 1416 (Committee on A. & A.R.) of 2013, which was substantially similar to this bill, died on the Senate floor inactive file.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file.

Opposition

None on file.

Analysis Prepared by: Cassie Royce / A. & A.R. / (916) 319-3600