(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 a specified state property pursuant to these provisions, subject to conditions specified in the act relating to the approval of the agreement.

(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 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 a specified state property pursuant to these provisions, subject to conditions specified in the act relating to the approval of the agreement.

(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 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 a specified state property pursuant to these provisions, subject to conditions specified in the act relating to the approval of the agreement and the obligations of a purchaser or transferee of the property. agreement.

(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 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 a specified parcel of state property pursuant to these provisions. provisions, subject to conditions specified in the act relating to the approval of the agreement and the obligations of a purchaser or transferee of the property.

(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 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 a specified parcel 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, 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.

 UNFINISHED BUSINESS  

Bill No: SB 814

Author:

:

Vote:

SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 4/25/17

AYES: Glazer, Berryhill, Bradford, Cannella, Dodd, Gaines, Galgiani, Hill, Hueso, Lara, Mendoza, Portantino, Vidak

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/15/17

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

SENATE FLOOR: 37-0, 5/22/17

AYES: Allen, Atkins, Bates, Beall, Berryhill, Bradford, Cannella, De León, Dodd, Gaines, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leyva, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Newman, Nguyen, Nielsen, Portantino, Roth, Skinner, Stern, Stone, Vidak, Wieckowski, Wiener, Wilk

NO VOTE RECORDED: Anderson, Fuller, Pan

ASSEMBLY FLOOR: 76-0, 8/24/17 (Consent) - See last page for vote

SUBJECT:

SOURCE: Department of General Services

DIGEST: This bill authorizes the Department of General Services (DGS) to dispose of a specified parcel of state property, consisting of approximately 65 acres, known as a portion of the Department of Corrections and Rehabilitation’s (CDCR’s) Preston Youth Correctional Facility in Amador County.

Assembly Amendments

make technical changes.

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 a specified parcel, consisting of approximately 65 acres, known as a portion of CDCR’s Preston Youth Correctional Facility, located at 201 Waterman Road, Ione, in Amador County.

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.

Preston Youth Correctional Facility. The Preston Youth Correctional Facility closed in June 2011 and is currently in warm shutdown. The CDCR estimates that the warm shutdown is costing approximately $450,000 annually. The buildings and infrastructure were part of the oldest youth correctional facility in CDCR’s portfolio, they were no longer useful, and were costly to operate. The facility was also closed due to a declining youth correctional population.

Related/Prior Legislation

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 (Committee on Accountability and Administrative Review, Chapter 337, Statutes of 2014) authorized DGS to dispose of certain state surplus property, subject to specified conditions.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Assembly Appropriations Committee, unknown additional one-time revenue from the property disposition. DGS has not performed an appraisal of the property. When the property is sold, upfront costs for the sale will come from the Property Acquisition Law Money Account, but gross proceeds of the property sale will be used to reimburse DGS for these costs. Because the property must be sold at fair market value, the state will likely receive additional revenue from the sale which will be deposited into the Special Fund for Economic Uncertainties.

In addition, cost savings, following the sale of the property, of approximately $450,000 annually to CDCR for no longer needing to maintain the property (GF).

SUPPORT: (Verified 8/24/17)

Department of General Services (source)

OPPOSITION: (Verified 8/24/17)

None received

ASSEMBLY FLOOR: 76-0, 8/24/17

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

NO VOTE RECORDED: Aguiar-Curry, Travis Allen, McCarty

Prepared by:

8/25/17 11:36:29

**** END ****

Date of Hearing: July 19, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

SBPCA Bill Id:SB 814

Author:(Committee on Governmental Organization) – As Amended Ver:July 5, 2017

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 approximately 65 acres, formerly known as the Department of Corrections and Rehabilitation’s (CDCR) Preston Youth Correctional Facility (Preston property), located at 201 Waterman Road in Ione, in Amador County.

FISCAL EFFECT:

1. Unknown additional one-time revenue from the property disposition. DGS has not performed an appraisal of the property.

When the property is sold, upfront costs for the sale will come from the Property Acquisition Law Money Account, but gross proceeds of the property sale will be used to reimburse DGS for these costs. Because the property must be sold at fair market value, the state will likely receive additional revenue from the sale which will be deposited into the Special Fund for Economic Uncertainties.

1. Cost savings, following the sale of the property, of approximately $450,000 annually to CDCR for no longer needing to maintain the property (GF).

COMMENTS:

1. Purpose. This is the annual DGS-sponsored 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, DGS seeks legislative authorization to dispose of the properties. Upon such authorization, DGS must first offer each surplus property to the relevant local agencies and then to nonprofit affordable housing sponsors, prior to offering the property to private entities through a bidding process.

The Preston Youth Correctional Facility closed in June 2011, and is currently in warm shutdown (which requires certain positions and funding to maintain basic facility operations so they do not deteriorate while the building is unused) which costs CDCR approximately $450,000 annually. DGS is seeking to surplus the property.

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

AB 2904 (Assembly Accountability and Administrative Review Committee), Chapter 207, Statutes of 2016, authorized DGS to dispose of a surplus property in Stockton, and rescinded the prior surplus authorization of a building in Vallejo.

SB 273 (Hueso), Chapter 233, Statutes of 2015, authorized DGS to dispose of two surplus state properties in Shasta County.

SB 536 (Roth), Chapter 355, Statutes of 2015, authorized DGS to sell seven specified state armory properties that were 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.

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

Date of Hearing: June 28, 2017

ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW

Susan Talamantes Eggman, Chair

SBPCA Bill Id:SB 814

Author:(Committee on Governmental Organization) – As Amended Ver:June 20, 2017

SENATE VOTE: 37-0

SUBJECT: State real property: surplus

SUMMARY: Authorizes the Director of the Department of General Services (DGS) to dispose of a portion of the former Preston Youth Correctional Facility in Amador County (Preston property).

Specifically, this bill:

1. Authorizes the Director of DGS to dispose of approximately 65 acres, known as a portion of the Department of Corrections and Rehabilitation’s (CDCR) Preston property, located at 201 Waterman Road in Ione, in Amador County.
2. Requires the purchase, lease, or exchange agreement of the Preston property to be approved by the State Public Works Board (PWB), as specified, prior to final disposal.
3. Clarifies that the purchaser or transferee of the Preston property is solely responsible for compliance with the California Environmental Quality Act (CEQA) for purposes of this bill.

EXISTING LAW:

1. Authorizes the Director of DGS, subject to legislative approval, to sell, lease, exchange, or transfer various specified properties for fair market value, or upon such other terms and conditions that DGS determines are in the best interest of the state.
   
2. Requires each state agency to annually review and determine if any lands under their jurisdiction are in excess of programmatic need and report that information to DGS.
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 CEQA.
   

FISCAL EFFECT: According to the Senate Appropriations Committee:

1. Unknown, but potentially significant costs to DGS for selling the surplus property 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)
3. Cost savings of approximately $450,000 per year, following the sale of the property, at which point CDCR will no longer maintain the property in warm shutdown. (General Fund)

COMMENTS: This is the annual DGS surplus property bill. The Preston property closed in June 2011. The buildings and infrastructure are expensive to maintain and no longer needed due to a declining youth correctional population. Currently, the property is in warm shutdown, meaning certain positions and funding are required to maintain basic operations and prevent the property from deteriorating while it is unused. As noted above, this costs CDCR $450,000 annually.

DGS notes that the Preston property has an outstanding bond for infrastructure improvements that will need to be paid off once sold. As a result, this bill requires the purchase, lease, or exchange agreement of the property to go to the PWB for approval before final disposal. According to DGS, the PWB will likely need to provide DGS with forms of termination agreements that effectively remove the PWB’s bond restriction on selling the property.

Generally, surplus property is sold “as is” and is exempt from designated provisions of the CEQA. This bill further clarifies that the buyer or transferee of the Preston property is subject to CEQA and any other local governmental entitlement or land use approval requirements.

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 Accountability and Administrative Review Committee), Chapter 207, Statutes of 2016
2. SB 273 (Hueso), Chapter 233, Statutes of 2015
3. AB 2174 (Assembly Accountability and Administrative Review Committee), Chapter 337, Statutes of 2014
4. AB 826 (Jones-Sawyer), Chapter 505, Statutes of 2013
5. SB 1580 (Senate Governmental Organization Committee), Chapter 798, Statutes of 2012
6. AB 1272 (Butler), Chapter 178, Statutes of 2011
7. SB 136 (Huff), Chapter 166, Statutes of 2009
8. 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

 THIRD READING  

Bill No: SB 814

Author:

:

Vote:

SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 4/25/17

AYES: Glazer, Berryhill, Bradford, Cannella, Dodd, Gaines, Galgiani, Hill, Hueso, Lara, Mendoza, Portantino, Vidak

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/15/17

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

SUBJECT:

SOURCE: Department of General Services

DIGEST: This bill authorizes the Department of General Services (DGS) to dispose of a specified parcel of state property, consisting of approximately 65 acres, known as a portion of the Department of Corrections and Rehabilitation’s (CDCR’s) Preston Youth Correctional Facility in Amador 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 a specified parcel, consisting of approximately 65 acres, known as a portion of CDCR’s Preston Youth Correctional Facility, located at 201 Waterman Road, Ione, in Amador County.

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.

Preston Youth Correctional Facility. The Preston Youth Correctional Facility closed in June 2011 and is currently in warm shutdown. The CDCR estimates that the warm shutdown is costing approximately $450,000 annually. The buildings and infrastructure were part of the oldest youth correctional facility in CDCR’s portfolio, they were no longer useful, and were costly to operate. The facility was also closed due to a declining youth correctional population.

Related/Prior Legislation

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 (Committee on Accountability and Administrative Review, Chapter 337, Statutes of 2014) authorized DGS to dispose of certain state surplus property, subject to specified conditions.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

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

Additionally, unknown 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.

Finally, cost savings of approximately $450,000 per year, following the sale of the property at which point CDCR will no longer maintain the property in warm shutdown.

SUPPORT: (Verified 5/16/17)

Department of General Services (source)

OPPOSITION: (Verified 5/16/17)

None received

ARGUMENTS IN SUPPORT: According to DGS, “the facility opened in 1894 and closed in June 2011. This area contains the bulk of the buildings and facilities, including detention facility dorms, education buildings, maintenance and storage facilities, infrastructure, and administrative buildings. The net sale proceeds will be deposited into the Special Fund for Economic Uncertainties.”

Prepared by:

5/16/17 16:15:55

**** END ****

SENATE COMMITTEE ON

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

SB 814 (Committee on Governmental Organization) - State real property: surplus

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

Bill Summary:

SB 814 would authorize the Department of General Services (DGS) to dispose of specified parcel of state property, consisting of approximately 65 acres, known as a portion of the California Department of Corrections and Rehabilitation’s (CDCR’s) Person Youth Correctional Facility in Amador County.

Fiscal Impact:

• Unknown, but potentially significant costs to DGS for selling the surplus property 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)
• Cost savings of approximately $450,000 per year, following the sale of the property, at which point CDCR will no longer maintain the property in warm shutdown. (GF)

Background:

This bill 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.

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, the net property sale proceeds will be deposited into the Special Fund for Economic Uncertainties.

The Preston Youth Correctional Facility closed in June 2011 and is currently in warm shutdown (which requires certain positions and funding to maintain basic facility operations so they do not deteriorate while the building is unused) which costs CDCR approximately $450,000 annually.

Proposed Law:

This bill would authorize DGS to sell, exchange, sell combined with an exchange, or lease for fair market value CDCR’s Preston Youth Correctional Facility.

Related Legislation:

SB 273 (Hueso, Chapter 233, Statutes of 2015) authorized DGS to dispose of two surplus state properties in Shasta County.

SB 536 (Roth, Chapter 355, Statutes of 2015) authorized DGS 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.

SB 1850 (Committee on Governmental Organization, Chapter 798, Statutes of 2012) authorized DGS to sell four specified armories as well as three additional parcels of state property.

AB 1272 (Butler, Chapter 178, Statutes of 2011) authorizes DGS to dispose of six specified parcels of state property.

SB 1167 (Cogdill, Chapter 327, Statutes of 2010) authorized DGS to dispose of all or any portion of two parcels of real property in Fresno County and a field office in Placer County.

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, a continuously appropriated. By increasing the amount transferred into this fund, this bill would make an appropriation.

-- END --

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Steven Glazer

Chair

2017 - 2018 Regular

Bill No: 814 Hearing Date: 4/25/2017

SUBJECT: State real property: surplus

DIGEST: This bill authorizes the Department of General Services (DGS) to dispose of a specified parcel of state property, consisting of approximately 65 acres, known as a portion of the Department of Corrections and Rehabilitation’s Preston Youth Correctional Facility in Amador 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 a specified parcel, consisting of approximately 65 acres, known as a portion of the Department of Corrections and Rehabilitation’s Preston Youth Correctional Facility, located at 201 Waterman Road, Ione, in Amador County.

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.

Preston Youth Correctional Facility. The Preston Youth Correctional Facility closed in June 2011 and is currently in warm shutdown. The California Department of Corrections and Rehabilitation (CDCR) estimates that the warm shutdown is costing approximately $450,000 annually. The buildings and infrastructure were part of the oldest youth correctional facility in CDCR’s portfolio, they were no longer useful, and were costly to operate. The facility was also closed due to a declining youth correctional population.

Prior/Related Legislation

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 (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, as specified.

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.

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: Fiscal Com.: Local:

SUPPORT:

Department of General Services (Source)

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: According to DGS, “the facility opened in 1894 and closed in June 2011. This area contains the bulk of the buildings and facilities, including detention facility dorms, education buildings, maintenance and storage facilities, infrastructure, and administrative buildings. The net sale proceeds will be deposited into the Special Fund for Economic Uncertainties.”