Existing law requires a state agency to review all proprietary state lands under its jurisdiction, as specified, to determine what land is in excess of its needs, and to report on these lands to the Department of General Services. Existing law prescribes a process for the disposition of surplus state property.

This bill would, notwithstanding those provisions, authorize the Director of General Services to sell, exchange, or lease to the City of Imperial, upon those terms and conditions the director determines are in the best interest of the state, all or any part of the property known as the California Highway Patrol El Centro Area office located at 2331 U.S. Highway 86, Imperial, in the County of Imperial. To the extent the property involves specified bonds, the bill would require the proceeds of the sale or lease to be expended on bond payments, as specified, and other costs, including costs for the review of the sale or lease of the property and bond counsel. The bill would exempt the sale, exchange, or lease of the property from the California Environmental Quality Act.

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 paid in full, 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. Under existing law, moneys in the fund are continuously appropriated for specified purposes, except as provided.

By depositing the proceeds attributable to the sale or lease of the above-described property into the Special Fund for Economic Uncertainties, this bill would make an appropriation.

This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Imperial.

Existing law requires a state agency to review all proprietary state lands under its jurisdiction, as specified, to determine what land is in excess of its needs, and to report on these lands to the Department of General Services. Existing law prescribes a process for the disposition of surplus state property.

This bill would, notwithstanding those provisions, authorize the Director of General Services to sell, exchange, or lease to the City of Imperial, upon those terms and conditions the director determines are in the best interest of the state, all or any part of the property known as the California Highway Patrol El Centro Area office located at 2331 U.S. Highway 86, Imperial, in the County of Imperial. To the extent the property involves specified bonds, the bill would require the proceeds of the sale or lease to be expended on bond payments, as specified, and other costs, including costs for the review of the sale or lease of the property and bond counsel. The bill would exempt the sale, exchange, or lease of the property from the California Environmental Quality Act.

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 paid in full, 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. Under existing law, moneys in the fund are continuously appropriated for specified purposes, except as provided.

By depositing the proceeds attributable to the sale or lease of the above-described property into the Special Fund for Economic Uncertainties, this bill would make an appropriation.

This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Imperial.

Existing law requires a state agency to review all proprietary state lands under its jurisdiction, as specified, to determine what land is in excess of its needs, and to report on these lands to the Department of General Services. Existing law prescribes a process for the disposition of surplus state property.

This bill would, notwithstanding those provisions, authorize the Director of General Services to sell or sell, exchange, or lease to the City of Imperial, at fair market value and upon those terms and conditions the director determines are in the best interest of the state, all or any part of the property known as the California Highway Patrol El Centro Area office located at 2331 U.S. Highway 86, Imperial, in the County of Imperial. The bill would authorize the director, notwithstanding the above provision, to permit a sale or lease price at less than fair market value if the director determines that the discount will enhance public safety and facilitate the state in addressing historic pollution at the property, as provided. To the extent the property involves specified bonds, the bill would require the proceeds of the sale or lease to be expended on bond payments, as specified, and other costs, including costs for the review of the sale or lease of the property and bond counsel. The bill would exempt the sale sale, exchange, or lease of the property from the California Environmental Quality Act.

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 paid in full, 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. Under existing law, moneys in the fund are continuously appropriated for specified purposes, except as provided.

By depositing the proceeds attributable to the sale or lease of the above-described property into the Special Fund for Economic Uncertainties, this bill would make an appropriation.

This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Imperial.

Existing law requires a state agency to review all proprietary state lands under its jurisdiction, as specified, to determine what land is in excess of its needs, and to report on these lands to the Department of General Services. Existing law prescribes a process for the disposition of surplus state property.

This bill would, notwithstanding those provisions, authorize the Director of General Services to sell or lease to the City of Imperial, at fair market value and upon those terms and conditions the director determines are in the best interest of the state, all or any part of the property known as the California Highway Patrol El Centro Area office located at 2331 U.S. Highway 86, Imperial, in the County of Imperial. The bill would authorize the director, notwithstanding the above provision, to permit a sale or lease price at less than fair market value if the director determines that the discount will enhance public safety and facilitate the state in addressing historic pollution at the property, as provided. To the extent the property involves specified bonds, the bill would require the proceeds of the sale or lease to be expended on bond payments, as specified, and other costs, including costs for the review of the sale or lease of the property and bond counsel. The bill would exempt the sale or lease of the property from the California Environmental Quality Act.

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 paid in full, 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. Under existing law, moneys in the fund are continuously appropriated for specified purposes, except as provided.

This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Imperial.

Existing law requires a state agency to review all proprietary state lands under its jurisdiction, as specified, to determine what land is in excess of its needs, and to report on these lands to the Department of General Services. Existing law prescribes a process for the disposition of surplus state property.

This bill would, notwithstanding those provisions, require authorize the Director of General Services to quitclaim sell or lease to the City of Imperial, at no cost to the city, all interests of the state in the excess state at fair market value and upon those terms and conditions the director determines are in the best interest of the state, all or any part of the property known as the California Highway Patrol El Centro Area office located at 2331 U.S. Highway 86, Imperial, in the County of Imperial. The bill would require the city to use the property as a police station for the Imperial Police Department. authorize the director, notwithstanding the above provision, to permit a sale or lease price at less than fair market value if the director determines that the discount will enhance public safety and facilitate the state in addressing historic pollution at the property, as provided. To the extent the property involves specified bonds, the bill would require the proceeds of the sale or lease to be expended on bond payments, as specified, and other costs, including costs for the review of the sale or lease of the property and bond counsel. The bill would exempt the sale or lease of the property from the California Environmental Quality Act.

This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Imperial.

Existing law requires a state agency to review all proprietary state lands under its jurisdiction, as specified, to determine what land is in excess of its needs, and to report on these lands to the Department of General Services. Existing law prescribes a process for the disposition of surplus state property.

This bill would, notwithstanding those provisions, require the Director of General Services to quitclaim to the City of Imperial, at no cost to the city, all interests of the state in the excess state property known as the California Highway Patrol El Centro Area office located at 2331 U.S. Highway 86, Imperial, in the County of Imperial. The bill would require the city to use the property as a police station for the Imperial Police Department.

This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Imperial.

This bill would make legislative findings and declarations related to a gift of public funds.

 UNFINISHED BUSINESS 

Bill No: SB 461

Author: Padilla (D)

Amended: 9/4/25

Vote: 27

SENATE GOVERNMENTAL ORG. COMMITTEE: 15-0, 4/8/25

AYES: Padilla, Valladares, Archuleta, Ashby, Blakespear, Cervantes, Dahle, Hurtado, Jones, Ochoa Bogh, Richardson, Rubio, Smallwood-Cuevas, Wahab, Weber Pierson

SENATE APPROPRIATIONS COMMITTEE: 6-0, 5/23/25

AYES: Caballero, Seyarto, Cabaldon, Grayson, Richardson, Wahab

NO VOTE RECORDED: Dahle

SENATE FLOOR: 38-0, 5/29/25

AYES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener

NO VOTE RECORDED: Limón, Reyes

ASSEMBLY FLOOR: 79-0, 9/12/25 - See last page for vote

SUBJECT: State real property: City of Imperial

SOURCE: City of Imperial

DIGEST:

This bill authorizes Director of the Department of General Services (DGS) to sell or lease to the City of Imperial, all or any part of the California Highway Patrol (CHP) El Centro Area office, as specified.

Assembly Amendments

delete the authority for DGS to sell the property at less than fair market value, if DGS determines that a discount will enhance public safety and facilitate the state in addressing historic pollution at the property by conducting remediation related to fuel storage, the presence of asbestos, and other factors.

ANALYSIS:

Existing law:

1. Establishes DGS, which is under the control of the Director of DGS, within the Government Operations Agency, and requires the director to perform various functions and duties with respect to property within the state, including entering into lease agreements.
2. Authorizes DGS, subject to legislative approval, to sell, lease, exchange, or transfer various specified properties for current market value, upon such other terms and conditions DGS determines are in the best interest of the state.
3. Authorizes DGS, with the consent of the state agency concerned, to, among other things, let for a period not to exceed five years, any real personal property that belongs to the state, unless otherwise prohibited or excepted.
4. Authorizes DGS, with the consent of the state agency concerned, to let for any period of time any real property or interest in real property that belongs to the state, when DGS deems the letting serves a beneficial public purpose limited to the development of housing, including permanent supportive or traditional housing and emergency shelters or park and recreation facilities. Under this section, DGS is authorized to enter into leases at less than market value provided that the cost of administering the lease is recovered. (Government Code 14671.2)
5. Requires DGS to create a digitized inventory of all excess state land, create screening tools for prioritizing affordable housing development on excess state land, and issue requests for proposals and select affordable housing developments on excess state land, as described.
6. 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 a specific utilization relative to future needs; and,
   3. Land not identified by the state agency within its master plan for facility development.

This bill:

1. Authorizes DGS to sell, exchange, or lease to the City of Imperial, upon those terms and conditions DGS determines are in the best interest of the state, all or any part of the CHP El Centro Area office located at 2331 U.S. Highway, Imperial, in the County of Imperial, as specified.
2. Exempts the sale or lease of the property from the California Environmental Quality Act.
3. Requires the net proceeds of the sale to be deposited into the Special Fund for Economic Uncertainties, and specifies that moneys in the fund attributable to the sale are not continuously appropriated and are available for expenditure only upon appropriation by the Legislature.

Background

Author Statement. According to the author’s office, “currently, the Imperial Police Department operates from a converted juvenile detention facility that houses multiple city functions, including City Hall and Public Services. This arrangement presents several operational challenges. The California Highway Patrol will be moving to a new facility in El Centro, leaving their facility within the boundaries of the City of Imperial behind. SB 461 would facilitate the transfer of the CHP facility to the City of Imperial. An acquisition by the City would present a cost-effective solution that would accommodate the City and Police Department’s growth requirements while enhancing public safety services for the expanding community. By transferring the facility to the City of Imperial, we can save taxpayer dollars while allowing the City to focus its limited resources on housing development and other priorities. The transfer offers a cost-effective solution to maintain law enforcement services while optimizing the use of an existing facility.”

CHP El Centro Office. The CHP El Centro Area office is located in Imperial County in the southeast region of California within the boundaries of the City of Imperial. The facility is about 4,000 square feet and consists of 42 uniformed employees, and four on-uniformed support staff. According to the Imperial Valley Press, a walkthrough of the current CHP El Centro Area office shows a small lobby, semi-cramped dispatcher room, and various rooms, which serve multiple functions because of lack of space, including classrooms and DUI evaluation rooms, or staff break rooms that double as meeting rooms.

The CHP will soon vacate the facility when they move to a new location currently under construction at 2803 S 4^th Street, El Centro, California. The new CHP El Centro site will be over 40,000 square feet by its completion and is estimated to open at some point in 2025.

Process for Surplus Property. The DGS is currently responsible for the disposition of state-owned property that has been declared surplus to future state needs. The Legislature must declare the property to be surplus and must authorize the Director of DGS to sell, exchange, lease, or transfer the surplus property according to specified procedures set forth in law.

Generally, current law requires surplus property to be transferred or sold at market value, or upon such other terms and conditions that DGS determines are in the best interest of the state. Current law gives right of first refusal on any surplus property to a local agency and then to a nonprofit affordable housing sponsor, prior to being offered for sale to private entities or individuals in the open market. In addition, DGS is authorized to sell surplus property to a local agency or to a nonprofit affordable housing sponsor at a sales price less than fair market value if DGS determines that such a discount will enable housing for individuals or families of low or moderate income.

In 2019, Governor Newsom, issued Executive Order N-06-19 (EO) which reoriented DGS’s priorities to focus on facilitating conversion of excess property to affordable housing. Since the EO, DGS has reviewed over 44,000 parcels and has identified 32 projects in various phases of development. These 32 projects are estimated to result in 4,300 housing units. The contents of the EO were later codified by SB 561 (Dodd, Chapter 446, Statutes of 2022) and AB 2233 (Quirk-Silva, Chapter 438, Statutes of 2022). On July 1, 2024, DGS released a new digitized inventory of state-owned land that is considered excess and suitable for reuse as affordable housing under the EO. Anyone can use the map to search through the state’s inventory of available excess land and apply various filters, such as high-quality areas.

Additionally, current law, under Government Code section 14671.2, authorizes DGS, with the consent of the state agency concerned, to let for any period of time any real property or interest in real property that belongs to the state, when DGS deems the letting serves a beneficial public purpose limited to the development of housing, including permanent supportive or traditional housing and emergency shelters or park and recreation facilities.

This bill authorizes DGS to sell, exchange, or lease all or any part of the California Highway Patrol El Centro Area office, to the City of Imperial, upon those terms and conditions the director of DGS determines are in the best interest of the State.

Prior/Related Legislation

SB 536 (Rubio, Chapter 768, Statutes of 2024) authorizes DGS to sell, at fair market value, to the City of Chino, the Herman G. Stark Youth Correctional Facility, located in the City of Chino, as specified.

SB 572 (Smallwood-Cuevas, Chapter 770, Statutes of 2024) authorizes DGS to sell, upon terms and conditions the director determines are in the best interest of the state, all or any part of approximately 59,200 square feet of property, located at 5401 Crenshaw Boulevard, Los Angeles for purposes of redeveloping the property as an affordable housing or mixed-used housing project.

SB 958 (Dodd, Chapter 988, Statutes of 2024) authorizes DGS to sell or exchange, at fair market value, the property known as Camp Coombs in the County of Napa to the County of Napa or the Napa County Regional and Open Space District by January 1, 2026, as specified.

SB 1336 (Archuleta, Chapter 473, Statutes of 2024) authorizes DGS, with the consent of the Department of State Hospitals, to lease to a nonprofit corporation or local government, seven buildings located at Metropolitan State Hospital in the City of Norwalk for the purposes of providing housing or facilities, including adult and youth interim housing.

AB 1635 (Ward, 2024) requires DGS, in consultation with the Department of Motor Vehicles, to enter into good faith negotiations to lease the Hillcrest Property in the City of San Diego. (Died on the Senate Floor Inactive File)

AB 349 (Ramos, Chapter 325, Statutes of 2023) authorizes DGS, with the consent of DSH, to lease a building at Patton State Hospital to a nonprofit corporation or local government for purpose of providing services to elderly persons and providing housing to homeless individuals and providing mental health services to those individuals.

SB 561 (Dodd, Chapter 446, Statutes of 2022) requires DGS, in consultation with the California Department of Housing and Community Development, to develop criteria to evaluate the suitability of excess state-owned parcels for affordable housing, as specified.

AB 2233 (Quirk Silva, Chapter 438, Statutes of 2022) required DGS to prepare and report to the Legislature a streamlined plan to transition underutilized multi-story state buildings into housing, as specified.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

According to the Assembly Appropriations Committee, one-time costs of approximately $110,000 to DGS to conduct the appraisal and environmental reports and review, as well as for other staff workload related to the purchase and sale of the CHP El Centro Area office (Architecture Revolving Fund). DGS notes such administrative costs would be recovered from sale proceeds. DGS would likely incur lower costs related to leasing the property.

Additionally, one-time revenue gain of an unknown amount, but likely in excess of $150,000, to the state from selling the El Centro Area office (Property Acquisition Law Money Account (PALMA) and SFEU). However, revenue gain from the sale would be significantly reduced if the property is sold for less than fair market value. DGS would likely incur ongoing revenue gain of a lower amount related to leasing the property.

Finally, one-time cost savings of approximately $150,000 and annual cost savings of approximately $15,000 to CHP if DGS sells the El Centro Area office to the City of Imperial, as the cost CHP would otherwise incur to decommission the office’s fuel tank would be borne by the City of Imperial and CHP would no longer incur ongoing expenses from maintaining and securing the property (Motor Vehicle Account).

SUPPORT: (Verified 9/5/25)

City of Imperial (Source)

City of El Centro

El Centro Police Department

The Chamber of Commerce for Greater Brawley

George Marquez, Imperial County District Attorney

Imperial Valley Regional Chamber of Commerce

Sun Community Federal Credit Union

OPPOSITION: (Verified 9/5/25)

None received

ARGUMENTS IN SUPPORT: According to the City of Imperial, “[t]he California Highway Patrol station is located within the boundaries of the City of Imperial. An acquisition by the City would present a cost-effective solution that would accommodate the City and Police Department’s growth requirements while enhancing public safety services for the expanding community. The facility is already configured for law enforcement operations and would allow good accessibility for community members, and is centrally located within the city. The facility would minimize renovation costs and the need to convert a non-law enforcement facility. At the same time, the CHP facility would be unsuitable for housing development given the unique characteristics of the property, such as fuel storage and refueling stations, evidence lockers, and prison detention cells. Exchanging the property from CHP to local law enforcement will make the best and highest use of the existing facility.”

ASSEMBLY FLOOR: 79-0, 9/12/25

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Flora, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

NO VOTE RECORDED: Ortega

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

10/14/26 11:53:17

**** END ****

 UNFINISHED BUSINESS  

Bill No: SB 461

Author: Padilla (D)

Amended: 9/4/25 in Assembly

Vote: 27

SENATE GOVERNMENTAL ORG. COMMITTEE: 15-0, 4/8/25

AYES: Padilla, Valladares, Archuleta, Ashby, Blakespear, Cervantes, Dahle, Hurtado, Jones, Ochoa Bogh, Richardson, Rubio, Smallwood-Cuevas, Wahab, Weber Pierson

SENATE APPROPRIATIONS COMMITTEE: 6-0, 5/23/25

AYES: Caballero, Seyarto, Cabaldon, Grayson, Richardson, Wahab

NO VOTE RECORDED: Dahle

SENATE FLOOR: 38-0, 5/29/25

AYES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener

NO VOTE RECORDED: Limón, Reyes

ASSEMBLY FLOOR: 60-0, 9/12/25 – Roll call not available

SUBJECT: State real property: City of Imperial

SOURCE: City of Imperial

DIGEST:

This bill authorizes Director of the Department of General Services (DGS) to sell or lease to the City of Imperial, all or any part of the California Highway Patrol (CHP) El Centro Area office, as specified.

Assembly Amendments

delete the authority for DGS to sell the property at less than fair market value, if DGS determines that a discount will enhance public safety and facilitate the state in addressing historic pollution at the property by conducting remediation related to fuel storage, the presence of asbestos, and other factors.

ANALYSIS:

Existing law:

1. Establishes DGS, which is under the control of the Director of DGS, within the Government Operations Agency, and requires the director to perform various functions and duties with respect to property within the state, including entering into lease agreements.
2. Authorizes DGS, subject to legislative approval, to sell, lease, exchange, or transfer various specified properties for current market value, upon such other terms and conditions DGS determines are in the best interest of the state.
3. Authorizes DGS, with the consent of the state agency concerned, to, among other things, let for a period not to exceed five years, any real personal property that belongs to the state, unless otherwise prohibited or excepted.
4. Authorizes DGS, with the consent of the state agency concerned, to let for any period of time any real property or interest in real property that belongs to the state, when DGS deems the letting serves a beneficial public purpose limited to the development of housing, including permanent supportive or traditional housing and emergency shelters or park and recreation facilities. Under this section, DGS is authorized to enter into leases at less than market value provided that the cost of administering the lease is recovered. (Government Code 14671.2)
5. Requires DGS to create a digitized inventory of all excess state land, create screening tools for prioritizing affordable housing development on excess state land, and issue requests for proposals and select affordable housing developments on excess state land, as described.
6. 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 a specific utilization relative to future needs; and,
   3. Land not identified by the state agency within its master plan for facility development.

This bill:

1. Authorizes DGS to sell, exchange, or lease to the City of Imperial, upon those terms and conditions DGS determines are in the best interest of the state, all or any part of the CHP El Centro Area office located at 2331 U.S. Highway, Imperial, in the County of Imperial, as specified.
2. Exempts the sale or lease of the property from the California Environmental Quality Act.
3. Requires the net proceeds of the sale to be deposited into the Special Fund for Economic Uncertainties, and specifies that moneys in the fund attributable to the sale are not continuously appropriated and are available for expenditure only upon appropriation by the Legislature.

Background

Author Statement. According to the author’s office, “currently, the Imperial Police Department operates from a converted juvenile detention facility that houses multiple city functions, including City Hall and Public Services. This arrangement presents several operational challenges. The California Highway Patrol will be moving to a new facility in El Centro, leaving their facility within the boundaries of the City of Imperial behind. SB 461 would facilitate the transfer of the CHP facility to the City of Imperial. An acquisition by the City would present a cost-effective solution that would accommodate the City and Police Department’s growth requirements while enhancing public safety services for the expanding community. By transferring the facility to the City of Imperial, we can save taxpayer dollars while allowing the City to focus its limited resources on housing development and other priorities. The transfer offers a cost-effective solution to maintain law enforcement services while optimizing the use of an existing facility.”

CHP El Centro Office. The CHP El Centro Area office is located in Imperial County in the southeast region of California within the boundaries of the City of Imperial. The facility is about 4,000 square feet and consists of 42 uniformed employees, and four on-uniformed support staff. According to the Imperial Valley Press, a walkthrough of the current CHP El Centro Area office shows a small lobby, semi-cramped dispatcher room, and various rooms, which serve multiple functions because of lack of space, including classrooms and DUI evaluation rooms, or staff break rooms that double as meeting rooms.

The CHP will soon vacate the facility when they move to a new location currently under construction at 2803 S 4^th Street, El Centro, California. The new CHP El Centro site will be over 40,000 square feet by its completion and is estimated to open at some point in 2025.

Process for Surplus Property. The DGS is currently responsible for the disposition of state-owned property that has been declared surplus to future state needs. The Legislature must declare the property to be surplus and must authorize the Director of DGS to sell, exchange, lease, or transfer the surplus property according to specified procedures set forth in law.

Generally, current law requires surplus property to be transferred or sold at market value, or upon such other terms and conditions that DGS determines are in the best interest of the state. Current law gives right of first refusal on any surplus property to a local agency and then to a nonprofit affordable housing sponsor, prior to being offered for sale to private entities or individuals in the open market. In addition, DGS is authorized to sell surplus property to a local agency or to a nonprofit affordable housing sponsor at a sales price less than fair market value if DGS determines that such a discount will enable housing for individuals or families of low or moderate income.

In 2019, Governor Newsom, issued Executive Order N-06-19 (EO) which reoriented DGS’s priorities to focus on facilitating conversion of excess property to affordable housing. Since the EO, DGS has reviewed over 44,000 parcels and has identified 32 projects in various phases of development. These 32 projects are estimated to result in 4,300 housing units. The contents of the EO were later codified by SB 561 (Dodd, Chapter 446, Statutes of 2022) and AB 2233 (Quirk-Silva, Chapter 438, Statutes of 2022). On July 1, 2024, DGS released a new digitized inventory of state-owned land that is considered excess and suitable for reuse as affordable housing under the EO. Anyone can use the map to search through the state’s inventory of available excess land and apply various filters, such as high-quality areas.

Additionally, current law, under Government Code section 14671.2, authorizes DGS, with the consent of the state agency concerned, to let for any period of time any real property or interest in real property that belongs to the state, when DGS deems the letting serves a beneficial public purpose limited to the development of housing, including permanent supportive or traditional housing and emergency shelters or park and recreation facilities.

This bill authorizes DGS to sell, exchange, or lease all or any part of the California Highway Patrol El Centro Area office, to the City of Imperial, upon those terms and conditions the director of DGS determines are in the best interest of the State.

Prior/Related Legislation

SB 536 (Rubio, Chapter 768, Statutes of 2024) authorizes DGS to sell, at fair market value, to the City of Chino, the Herman G. Stark Youth Correctional Facility, located in the City of Chino, as specified.

SB 572 (Smallwood-Cuevas, Chapter 770, Statutes of 2024) authorizes DGS to sell, upon terms and conditions the director determines are in the best interest of the state, all or any part of approximately 59,200 square feet of property, located at 5401 Crenshaw Boulevard, Los Angeles for purposes of redeveloping the property as an affordable housing or mixed-used housing project.

SB 958 (Dodd, Chapter 988, Statutes of 2024) authorizes DGS to sell or exchange, at fair market value, the property known as Camp Coombs in the County of Napa to the County of Napa or the Napa County Regional and Open Space District by January 1, 2026, as specified.

SB 1336 (Archuleta, Chapter 473, Statutes of 2024) authorizes DGS, with the consent of the Department of State Hospitals, to lease to a nonprofit corporation or local government, seven buildings located at Metropolitan State Hospital in the City of Norwalk for the purposes of providing housing or facilities, including adult and youth interim housing.

AB 1635 (Ward, 2024) requires DGS, in consultation with the Department of Motor Vehicles, to enter into good faith negotiations to lease the Hillcrest Property in the City of San Diego. (Died on the Senate Floor Inactive File)

AB 349 (Ramos, Chapter 325, Statutes of 2023) authorizes DGS, with the consent of DSH, to lease a building at Patton State Hospital to a nonprofit corporation or local government for purpose of providing services to elderly persons and providing housing to homeless individuals and providing mental health services to those individuals.

SB 561 (Dodd, Chapter 446, Statutes of 2022) requires DGS, in consultation with the California Department of Housing and Community Development, to develop criteria to evaluate the suitability of excess state-owned parcels for affordable housing, as specified.

AB 2233 (Quirk Silva, Chapter 438, Statutes of 2022) required DGS to prepare and report to the Legislature a streamlined plan to transition underutilized multi-story state buildings into housing, as specified.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

According to the Assembly Appropriations Committee, one-time costs of approximately $110,000 to DGS to conduct the appraisal and environmental reports and review, as well as for other staff workload related to the purchase and sale of the CHP El Centro Area office (Architecture Revolving Fund). DGS notes such administrative costs would be recovered from sale proceeds. DGS would likely incur lower costs related to leasing the property.

Additionally, one-time revenue gain of an unknown amount, but likely in excess of $150,000, to the state from selling the El Centro Area office (Property Acquisition Law Money Account (PALMA) and SFEU). However, revenue gain from the sale would be significantly reduced if the property is sold for less than fair market value. DGS would likely incur ongoing revenue gain of a lower amount related to leasing the property.

Finally, one-time cost savings of approximately $150,000 and annual cost savings of approximately $15,000 to CHP if DGS sells the El Centro Area office to the City of Imperial, as the cost CHP would otherwise incur to decommission the office’s fuel tank would be borne by the City of Imperial and CHP would no longer incur ongoing expenses from maintaining and securing the property (Motor Vehicle Account).

SUPPORT: (Verified 9/5/25)

City of Imperial (Source)

City of El Centro

El Centro Police Department

The Chamber of Commerce for Greater Brawley

George Marquez, Imperial County District Attorney

Imperial Valley Regional Chamber of Commerce

Sun Community Federal Credit Union

OPPOSITION: (Verified 9/5/25)

None received

ARGUMENTS IN SUPPORT: According to the City of Imperial, “[t]he California Highway Patrol station is located within the boundaries of the City of Imperial. An acquisition by the City would present a cost-effective solution that would accommodate the City and Police Department’s growth requirements while enhancing public safety services for the expanding community. The facility is already configured for law enforcement operations and would allow good accessibility for community members, and is centrally located within the city. The facility would minimize renovation costs and the need to convert a non-law enforcement facility. At the same time, the CHP facility would be unsuitable for housing development given the unique characteristics of the property, such as fuel storage and refueling stations, evidence lockers, and prison detention cells. Exchanging the property from CHP to local law enforcement will make the best and highest use of the existing facility.”

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

9/12/25 17:13:58

**** END ****

SENATE THIRD READING

STR Bill Id:SB 461

Author:(Padilla)

As Amended Ver:September 4, 2025

2/3 vote

SUMMARY

This bill would authorize the Director of the Department of General Services (DGS or Director of DGS) to sell, exchange, or lease to the City of Imperial, all or any part of the California Highway Patrol (CHP) El Centro Area office, as specified.

Major Provisions

1) States the Director of DGS may sell, exchange, or lease to the City of Imperial, upon those terms and conditions the director determines are in the best interest of the state, all or any part of the following real property: The California Highway Patrol El Centro Area office located at 2331 U.S. Highway 86, Imperial, in the County of Imperial, as defined.

2) Provides, to the extent bonds issued by the State Public Works Board involve the property, all issuer-related and trustee-related costs associated with the review of any proposed sale or lease, together with the costs related to the defeasance or retirement of any bonds, be paid from the proceeds of any sale or lease.

3) Exempts the sale, lease, or lease of the property from the California Environmental Quality Act, as specified.

4) Make legislative findings and declarations.

COMMENTS

Background.

The CHP El Centro Area office is located in Imperial County, in the southeastern region of California, within the City of Imperial. The facility encompasses approximately 4,000 square feet and houses 42 uniformed officers and four non-uniformed support staff. According to the Imperial Valley Press, a walkthrough of the current office reveals a small lobby, a smaller dispatch room, and several multi-purpose spaces. Due to limited square footage, rooms serve dual functions—classrooms and DUI evaluation, or staff break rooms that also function as meeting rooms.

The CHP will soon vacate the facility when they move to a new location currently under construction at 2803 S 4th Street, El Centro, California. The new CHP El Centro site will be over 40,000 square feet by its completion and is estimated to open at some point in 2025.

Process for Surplus Property. The DGS is responsible for managing the disposition of state-owned property that has been declared surplus to future state needs. Before any action can be taken, the Legislature must first declare the property as surplus and authorize the Director of DGS to sell, exchange, lease, or transfer the property in accordance with procedures established by law.

Generally, current law requires surplus property to be transferred or sold at market value, or upon such other terms and conditions that DGS determines are in the best interest of the state. Current law gives right of first refusal on any surplus property to a local agency and then to a nonprofit affordable housing sponsor, prior to being offered for sale to private entities or individuals in the open market. In addition, DGS is authorized to sell surplus property to a local agency or to a nonprofit affordable housing sponsor at a sales price less than fair market value if DGS determines that such a discount will enable housing for individuals or families of low or moderate income.

In 2019, Governor Newsom, issued Executive Order N-06-19 (EO) which reoriented DGS's priorities to focus on facilitating conversion of excess property to affordable housing. Since the EO, DGS has reviewed over 44,000 parcels and has identified 32 projects in various phases of development. These 32 projects are estimated to result in 4,300 housing units. The contents of the EO were later codified by SB 561 (Dodd, Chapter 446, Statutes of 2022) and AB 2233 (Quirk-Silva, Chapter 438, Statutes of 2022). On July 1, 2024, the DGS released a new digitized inventory of state-owned land that is considered excess and suitable for reuse as affordable housing under the EO. Anyone can use the map to search through the state's inventory of available excess land and apply various filters, such as high-quality areas.

Additionally, current law, under Government Code section 14671.2, authorizes DGS, with the consent of the state agency concerned, to let for any period of time any real property or interest in real property that belongs to the state, when DGS deems the letting serves a beneficial public purpose limited to the development of housing, including permanent supportive or traditional housing and emergency shelters or park and recreation facilities.

SB 461 authorizes DGS to sell or lease all or any part of the California Highway Patrol El Centro Area office, at fair market value, to the City of Imperial. However, this bill does allow DGS to sell the property at less than fair market value, if DGS determines that a discount will enhance public safety and facilitate the state in addressing historic pollution at the property by conducting remediation related to fuel storage, the presence of asbestos, and other factors. It's important to note that nothing in this bill requires the sale or lease of the property at below fair market value. SB 461 would simply authorize DGS to provide such a discount, if the Director of DGS determines that the discount will enhance public safety and facilitate the state in addressing pollution at the facility.

According to the Author

According to the author, "Currently, the Imperial Police Department operates from a converted juvenile detention facility that houses multiple city functions, including City Hall and Public Services. This arrangement presents several operational challenges. The [CHP] will be moving to a new facility in El Centro, leaving their facility within the boundaries of the City of Imperial behind. SB 461 would facilitate the transfer of the CHP facility to the City of Imperial. An acquisition by the City would present a cost-effective solution that would accommodate the City and Police Department's growth requirements while enhancing public safety services for the expanding community."

Arguments in Support

According to the City of Imperial, "the CHP station is located within the boundaries of the City of Imperial. An acquisition by the City would present a cost-effective solution that would accommodate the City and Police Department's growth requirements while enhancing public safety services for the expanding community. The facility is already configured for law enforcement operations and would allow good accessibility for community members, and is centrally located within the city. The facility would minimize renovation costs and the need to convert a non-law enforcement facility. At the same time, the CHP facility would be unsuitable for housing development given the unique characteristics of the property, such as fuel storage and refueling stations, evidence lockers, and prison detention cells. Exchanging the property from CHP to local law enforcement will make the best and highest use of the existing facility."

Arguments in Opposition

None on file

FISCAL COMMENTS

According to the Assembly Committee on Appropriations Committee analysis, "1) One-time costs of approximately $110,000 to DGS to conduct the appraisal and environmental reports and review, as well as for other staff workload related to the purchase and sale of the CHP El Centro Area office (Architecture Revolving Fund). DGS notes such administrative costs would be recovered from sale proceeds. DGS would likely incur lower costs related to leasing the property.

2) One-time revenue gain of an unknown amount, but likely in excess of $150,000, to the state from selling the El Centro Area office (Property Acquisition Law Money Account (PALMA) and SFEU). However, revenue gain from the sale would be significantly reduced if the property is sold for less than fair market value. DGS would likely incur ongoing revenue gain of a lower amount related to leasing the property.

3) One-time cost savings of approximately $150,000 and annual cost savings of approximately $15,000 to CHP if DGS sells the El Centro Area office to the City of Imperial, as the cost CHP would otherwise incur to decommission the office's fuel tank would be borne by the City of Imperial and CHP would no longer incur ongoing expenses from maintaining and securing the property (Motor Vehicle Account)."

VOTES

SENATE FLOOR: 38-0-2

YES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener

ABS, ABST OR NV: Limón, Reyes

ASM GOVERNMENTAL ORGANIZATION: 22-0-0

YES: Blanca Rubio, Davies, Alvarez, Berman, Bryan, Carrillo, Alanis, Fong, Gabriel, Gipson, Hoover, McKinnor, Nguyen, Pacheco, Ramos, Michelle Rodriguez, Sanchez, Solache, Soria, Ta, Valencia, Wallis

ASM APPROPRIATIONS: 11-0-4

YES: Wicks, Arambula, Calderon, Caloza, Elhawary, Fong, Mark González, Ahrens, Pacheco, Pellerin, Solache

ABS, ABST OR NV: Sanchez, Dixon, Ta, Tangipa

UPDATED

VERSION: September 4, 2025

CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0001693

SENATE THIRD READING

STR Bill Id:SB 461

Author:(Padilla)

As Amended Ver:September 2, 2025

Majority vote

SUMMARY

This bill would authorize the Director of the Department of General Services (DGS or Director of DGS) to sell or lease to the City of Imperial, all or any part of the California Highway Patrol (CHP) El Centro Area office, as specified.

Major Provisions:

1) States the Director of DGS may sell or lease, at fair market value, to the City of Imperial, upon those terms and conditions the director determines are in the best interest of the state, all or any part of the following real property: The California Highway Patrol El Centro Area office located at 2331 U.S. Highway 86, Imperial, in the County of Imperial, as defined.

2) Provides, to the extent bonds issued by the State Public Works Board involve the property, all issuer-related and trustee-related costs associated with the review of any proposed sale or lease, together with the costs related to the defeasance or retirement of any bonds, be paid from the proceeds of any sale or lease.

3) Exempts the sale or lease of the property from the California Environmental Quality Act.

4) Authorizes the Director of DGS to permit a sales price for the property at less than fair market value if the director determines the discount will enhance public safety and facilitate the state in addressing historic pollution at the property, as specified.

COMMENTS

Background.

The CHP El Centro Area office is located in Imperial County, in the southeastern region of California, within the City of Imperial. The facility encompasses approximately 4,000 square feet and houses 42 uniformed officers and four non-uniformed support staff. According to the Imperial Valley Press, a walkthrough of the current office reveals a small lobby, a smaller dispatch room, and several multi-purpose spaces. Due to limited square footage, rooms serve dual functions—classrooms and DUI evaluation, or staff break rooms that also function as meeting rooms.

The CHP will soon vacate the facility when they move to a new location currently under construction at 2803 S 4th Street, El Centro, California. The new CHP El Centro site will be over 40,000 square feet by its completion and is estimated to open at some point in 2025.

Process for Surplus Property. The DGS is responsible for managing the disposition of state-owned property that has been declared surplus to future state needs. Before any action can be taken, the Legislature must first declare the property as surplus and authorize the Director of DGS to sell, exchange, lease, or transfer the property in accordance with procedures established by law.

Generally, current law requires surplus property to be transferred or sold at market value, or upon such other terms and conditions that DGS determines are in the best interest of the state. Current law gives right of first refusal on any surplus property to a local agency and then to a nonprofit affordable housing sponsor, prior to being offered for sale to private entities or individuals in the open market. In addition, DGS is authorized to sell surplus property to a local agency or to a nonprofit affordable housing sponsor at a sales price less than fair market value if DGS determines that such a discount will enable housing for individuals or families of low or moderate income.

In 2019, Governor Newsom, issued Executive Order N-06-19 (EO) which reoriented DGS's priorities to focus on facilitating conversion of excess property to affordable housing. Since the EO, DGS has reviewed over 44,000 parcels and has identified 32 projects in various phases of development. These 32 projects are estimated to result in 4,300 housing units. The contents of the EO were later codified by SB 561 (Dodd, Chapter 446, Statutes of 2022) and AB 2233 (Quirk-Silva, Chapter 438, Statutes of 2022). On July 1, 2024, the DGS released a new digitized inventory of state-owned land that is considered excess and suitable for reuse as affordable housing under the EO. Anyone can use the map to search through the state's inventory of available excess land and apply various filters, such as high-quality areas.

Additionally, current law, under Government Code section 14671.2, authorizes DGS, with the consent of the state agency concerned, to let for any period of time any real property or interest in real property that belongs to the state, when DGS deems the letting serves a beneficial public purpose limited to the development of housing, including permanent supportive or traditional housing and emergency shelters or park and recreation facilities.

SB 461 authorizes DGS to sell or lease all or any part of the California Highway Patrol El Centro Area office, at fair market value, to the City of Imperial. However, this bill does allow DGS to sell the property at less than fair market value, if DGS determines that a discount will enhance public safety and facilitate the state in addressing historic pollution at the property by conducting remediation related to fuel storage, the presence of asbestos, and other factors. It's important to note that nothing in this bill requires the sale or lease of the property at below fair market value. SB 461 would simply authorize DGS to provide such a discount, if the Director of DGS determines that the discount will enhance public safety and facilitate the state in addressing pollution at the facility.

According to the Author

According to the author, "Currently, the Imperial Police Department operates from a converted juvenile detention facility that houses multiple city functions, including City Hall and Public Services. This arrangement presents several operational challenges. The [CHP] will be moving to a new facility in El Centro, leaving their facility within the boundaries of the City of Imperial behind. SB 461 would facilitate the transfer of the CHP facility to the City of Imperial. An acquisition by the City would present a cost-effective solution that would accommodate the City and Police Department's growth requirements while enhancing public safety services for the expanding community."

Arguments in Support

According to the City of Imperial, "the CHP station is located within the boundaries of the City of Imperial. An acquisition by the City would present a cost-effective solution that would accommodate the City and Police Department's growth requirements while enhancing public safety services for the expanding community. The facility is already configured for law enforcement operations and would allow good accessibility for community members, and is centrally located within the city. The facility would minimize renovation costs and the need to convert a non-law enforcement facility. At the same time, the CHP facility would be unsuitable for housing development given the unique characteristics of the property, such as fuel storage and refueling stations, evidence lockers, and prison detention cells. Exchanging the property from CHP to local law enforcement will make the best and highest use of the existing facility."

Arguments in Opposition

None on file

FISCAL COMMENTS

According to the Assembly Committee on Appropriations Committee analysis, "1) One-time costs of approximately $110,000 to DGS to conduct the appraisal and environmental reports and review, as well as for other staff workload related to the purchase and sale of the CHP El Centro Area office (Architecture Revolving Fund). DGS notes such administrative costs would be recovered from sale proceeds. DGS would likely incur lower costs related to leasing the property.

2) One-time revenue gain of an unknown amount, but likely in excess of $150,000, to the state from selling the El Centro Area office (Property Acquisition Law Money Account (PALMA) and SFEU). However, revenue gain from the sale would be significantly reduced if the property is sold for less than fair market value. DGS would likely incur ongoing revenue gain of a lower amount related to leasing the property.

3) One-time cost savings of approximately $150,000 and annual cost savings of approximately $15,000 to CHP if DGS sells the El Centro Area office to the City of Imperial, as the cost CHP would otherwise incur to decommission the office's fuel tank would be borne by the City of Imperial and CHP would no longer incur ongoing expenses from maintaining and securing the property (Motor Vehicle Account)."

VOTES

SENATE FLOOR: 38-0-2

YES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener

ABS, ABST OR NV: Limón, Reyes

ASM GOVERNMENTAL ORGANIZATION: 22-0-0

YES: Blanca Rubio, Davies, Alvarez, Berman, Bryan, Carrillo, Alanis, Fong, Gabriel, Gipson, Hoover, McKinnor, Nguyen, Pacheco, Ramos, Michelle Rodriguez, Sanchez, Solache, Soria, Ta, Valencia, Wallis

ASM APPROPRIATIONS: 11-0-4

YES: Wicks, Arambula, Calderon, Caloza, Elhawary, Fong, Mark González, Ahrens, Pacheco, Pellerin, Solache

ABS, ABST OR NV: Sanchez, Dixon, Ta, Tangipa

UPDATED

VERSION: September 2, 2025

CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0001449

Date of Hearing: July 16, 2025

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

SBPCA Bill Id:SB 461

Author:(Padilla) – As Amended Ver:March 24, 2025

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

SUMMARY:

This bill authorizes the Department of General Services (DGS) to sell or lease the California Highway Patrol (CHP) El Centro Area office to the City of Imperial.

Specifically, this bill:

1. Authorizes the DGS director to sell or lease the CHP El Centro Area office to the City of Imperial at fair market value upon terms and conditions the director determines are in the best interest of the state.
2. Authorizes the DGS director to sell or lease the property below fair market value if the director determines such a discount will enhance public safety and facilitate the state in addressing historic pollution at the property. The DGS director must also consider the current and intended future use of the property when making this determination.
3. Requires the proceeds of the sale or lease to cover specified bond payments related to the property, with net proceeds deposited into the Special Fund for Economic Uncertainties (SFEU), but prohibits such proceeds in the SFEU from being continuously appropriated pursuant to existing law and requires such proceeds be expended only upon appropriation.
4. Exempts the sale or lease of the property from the California Environmental Quality Act.

FISCAL EFFECT:

1. One-time costs of approximately $110,000 to DGS to conduct the appraisal and environmental reports and review, as well as for other staff workload related to the purchase and sale of the CHP El Centro Area office (Architecture Revolving Fund). DGS notes such administrative costs would be recovered from sale proceeds. DGS would likely incur lower costs related to leasing the property.
2. One-time revenue gain of an unknown amount, but likely in excess of $150,000, to the state from selling the El Centro Area office (Property Acquisition Law Money Account (PALMA) and SFEU). However, revenue gain from the sale would be significantly reduced if the property is sold for less than fair market value. DGS would likely incur ongoing revenue gain of a lower amount related to leasing the property.
3. One-time cost savings of approximately $150,000 and annual cost savings of approximately $15,000 to CHP if DGS sells the El Centro Area office to the City of Imperial, as the cost CHP would otherwise incur to decommission the office’s fuel tank would be borne by the City of Imperial and CHP would no longer incur ongoing expenses from maintaining and securing the property (Motor Vehicle Account).

COMMENTS:

1. Purpose. According to the author:

Currently, the Imperial Police Department operates from a converted juvenile detention facility that houses multiple city functions, including City Hall and Public Services. This arrangement presents several operational challenges. The [CHP] will be moving to a new facility in El Centro, leaving their facility within the boundaries of the City of Imperial behind. SB 461 would facilitate the transfer of the CHP facility to the City of Imperial. An acquisition by the City would present a cost-effective solution that would accommodate the City and Police Department’s growth requirements while enhancing public safety services for the expanding community.

1. Background. Surplus State Property. Existing law requires every state agency to annually review and report to DGS if any land under the agency’s jurisdiction is in excess of programmatic needs. DGS may then determine if any such property can be used by another state agency, and if not, the property is included in an annual omnibus surplus lands bill, which authorizes DGS to dispose of the property by sale, lease, or exchange. DGS must first offer each surplus property to the relevant local governmental agencies and then to nonprofit affordable housing developers, prior to letting private entities bid on the property. Local agencies must pay fair market value for the property, unless the property is being acquired for parks or open space. Net proceeds from the property disposition are generally deposited into the SFEU, which supports the state in meeting General Fund obligations in the event of declining revenues or unanticipated expenditures. However, AB 127 (Committee on Budget), Chapter 45, Statutes of 2023, authorized DGS to deposit some or all of the net proceeds from the sale of surplus property into the PALMA to maintain an operating reserve sufficient to develop excess state lands into affordable housing.

CHP El Centro Area Office. The CHP El Centro Area office is approximately 4,000 square feet and currently shared by 42 uniformed officers and four support staff. Due to limited space to meet operational needs, CHP will soon vacate the office and move to a larger El Centro location once construction is complete later this year. This bill authorizes DGS to sell or lease the El Centro Area office to the City of Imperial outside the surplus state property process. The property must be sold or leased at fair market value, unless the DGS director determines a lower price will enhance public safety and facilitate the state in addressing historic pollution at the property. Although this bill requires net proceeds from the sale or lease be deposited pursuant to existing law (generally, the SFEU or PALMA), this bill prohibits such proceeds in the SFEU from being continuously appropriated and requires such proceeds be expended only upon appropriation. It is unclear why funds from this property disposition should not be appropriated pursuant to existing law and how the funds would eventually be appropriated.

1. Prior Legislation. SB 536 (Rubio), Chapter 768, Statutes of 2024, authorized DGS to sell or lease the Herman G. Stark Youth Correctional Facility to the City of Chino under certain conditions, with net proceeds deposited into the SFEU for continuous appropriation pursuant to existing law.

SB 572 (Smallwood-Cuevas), Chapter 770, Statutes of 2024, authorized DGS to sell all or a portion of a specified parcel of state property in the County of Los Angeles to a community land trust under certain conditions, with net proceeds deposited into the SFEU not continuously appropriated and expended only upon appropriation.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: June 25, 2025

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Blanca Rubio, Chair

SBPCA Bill Id:SB 461

Author:(Padilla) – As Amended Ver:March 24, 2025

SENATE VOTE: 38-0

SUBJECT: State real property: City of Imperial

SUMMARY: This bill authorizes Director of the Department of General Services (DGS) to sell or lease to the City of Imperial, all or any part of the California Highway Patrol (CHP) El Centro Area office, as specified. Specifically, this bill:

1) States the Director of General Services (Director of DGS) may sell or lease, at fair market value, to the City of Imperial, upon those terms and conditions the director determines are in the best interest of the state, all or any part of the following real property: The California Highway Patrol El Centro Area office located at 2331 U.S. Highway 86, Imperial, in the County of Imperial, as defined.

2) Provides, to the extent bonds issued by the State Public Works Board involve the property, all issuer-related and trustee-related costs associated with the review of any proposed sale or lease, together with the costs related to the defeasance or retirement of any bonds, be paid from the proceeds of any sale or lease.

3) Authorizes the director of DGS to permit a sales price for the property at less than fair market value if the director determines the discount will enhance public safety and facilitate the state in addressing historic pollution at the property, as specified.

4) Exempts the sale or lease of the property from the California Environmental Quality Act.

5) Requires the net proceeds of the sale to be deposited into the Special Fund for Economic Uncertainties, and specifies that moneys in the fund attributable to the sale are not continuously appropriated and are available for expenditure only upon appropriation by the Legislature.

EXISTING LAW:

1. Establishes DGS, which is under the control of the Director of DGS, within the Government Operations Agency, and requires the director to perform various functions and duties with respect to property within the state, including entering into lease agreements.
2. Authorizes DGS, subject to legislative approval, to sell, lease, exchange, or transfer various specified properties for current market value, upon such other terms and conditions DGS determines are in the best interest of the state.
3. Authorizes DGS, with the consent of the state agency concerned, to, among other things, let for a period not to exceed five years, any real personal property that belongs to the state, unless otherwise prohibited or excepted.
4. Authorizes DGS, with the consent of the state agency concerned, to let for any period of time any real property or interest in real property that belongs to the state, when DGS deems the letting serves a beneficial public purpose limited to the development of housing, including permanent supportive or traditional housing and emergency shelters or park and recreation facilities. Under this section, DGS is authorized to enter into leases at less than market value provided that the cost of administering the lease is recovered. (Government Code 14671.2)
5. Requires DGS to create a digitized inventory of all excess state land, create screening tools for prioritizing affordable housing development on excess state land, and issue requests for proposals and select affordable housing developments on excess state land, as described.
6. Establishes criteria for state agencies to use in determining and reporting excess lands. A state agency must report land as surplus that is:
   
7. Not currently utilized, or is underutilized, for any existing or ongoing programs;
8. Land for which the agency cannot identify a specific utilization relative to future needs; and,
9. Land not identified by the state agency within its master plan for facility development.

FISCAL EFFECT: This bill is keyed fiscal by Legislative Counsel.

COMMENTS:

Purpose of the bill. According to the author’s office, “Currently, the Imperial Police Department operates from a converted juvenile detention facility that houses multiple city functions, including City Hall and Public Services. This arrangement presents several operational challenges. The California Highway Patrol will be moving to a new facility in El Centro, leaving their facility within the boundaries of the City of Imperial behind. SB 461 would facilitate the transfer of the CHP facility to the City of Imperial. An acquisition by the City would present a cost-effective solution that would accommodate the City and Police Department’s growth requirements while enhancing public safety services for the expanding community.”

The author’s office further states that “by transferring the facility to the City of Imperial, we can save taxpayer dollars while allowing the City to focus its limited resources on housing development and other priorities. The transfer offers a cost-effective solution to maintain law enforcement services while optimizing the use of an existing facility.”

Background.

The CHP El Centro Area office is located in Imperial County, in the southeastern region of California, within the City of Imperial. The facility encompasses approximately 4,000 square feet and houses 42 uniformed officers and four non-uniformed support staff. According to the Imperial Valley Press, a walkthrough of the current office reveals a small lobby, a smaller dispatch room, and several multi-purpose spaces. Due to limited square footage, rooms serve dual functions—classrooms and DUI evaluation, or staff break rooms that also function as meeting rooms.

The CHP will soon vacate the facility when they move to a new location currently under construction at 2803 S 4th Street, El Centro, California. The new CHP El Centro site will be over 40,000 square feet by its completion and is estimated to open at some point in 2025.

Process for Surplus Property. The DGS is responsible for managing the disposition of state-owned property that has been declared surplus to future state needs. Before any action can be taken, the Legislature must first declare the property as surplus and authorize the DGS Director to sell, exchange, lease, or transfer the property in accordance with procedures established by law.

Generally, current law requires surplus property to be transferred or sold at market value, or upon such other terms and conditions that DGS determines are in the best interest of the state. Current law gives right of first refusal on any surplus property to a local agency and then to a nonprofit affordable housing sponsor, prior to being offered for sale to private entities or individuals in the open market. In addition, DGS is authorized to sell surplus property to a local agency or to a nonprofit affordable housing sponsor at a sales price less than fair market value if DGS determines that such a discount will enable housing for individuals or families of low or moderate income.

In 2019, Governor Newsom, issued Executive Order N-06-19 (EO) which reoriented DGS’s priorities to focus on facilitating conversion of excess property to affordable housing. Since the EO, DGS has reviewed over 44,000 parcels and has identified 32 projects in various phases of development. These 32 projects are estimated to result in 4,300 housing units. The contents of the EO were later codified by SB 561 (Dodd, Chapter 446, Statutes of 2022) and AB 2233 (Quirk-Silva, Chapter 438, Statutes of 2022). On July 1, 2024, the DGS released a new digitized inventory of state-owned land that is considered excess and suitable for reuse as affordable housing under the EO. Anyone can use the map to search through the state’s inventory of available excess land and apply various filters, such as high-quality areas.

Additionally, current law, under Government Code section 14671.2, authorizes DGS, with the consent of the state agency concerned, to let for any period of time any real property or interest in real property that belongs to the state, when DGS deems the letting serves a beneficial public purpose limited to the development of housing, including permanent supportive or traditional housing and emergency shelters or park and recreation facilities.

This measure authorizes DGS to sell or lease all or any part of the California Highway Patrol El Centro Area office, at fair market value, to the City of Imperial. However, this bill does allow DGS to sell the property at less than fair market value, if DGS determines that a discount will enhance public safety and facilitate the state in addressing historic pollution at the property by conducting remediation related to fuel storage, the presence of asbestos, and other factors. It’s important to note that nothing in this bill requires the sale or lease of the property at below fair market value. SB 461 would simply authorize DGS to provide such a discount, if the director of DGS determines that the discount will enhance public safety and facilitate the state in addressing pollution at the facility.

In support. According to the City of Imperial, “the CHP station is located within the boundaries of the City of Imperial. An acquisition by the City would present a cost-effective solution that would accommodate the City and Police Department’s growth requirements while enhancing public safety services for the expanding community. The facility is already configured for law enforcement operations and would allow good accessibility for community members, and is centrally located within the city. The facility would minimize renovation costs and the need to convert a non-law enforcement facility. At the same time, the CHP facility would be unsuitable for housing development given the unique characteristics of the property, such as fuel storage and refueling stations, evidence lockers, and prison detention cells. Exchanging the property from CHP to local law enforcement will make the best and highest use of the existing facility.”

Related legislation. AB 98 (Jackson) of 2025. This bill would require the DGS director to quitclaim to the City of Moreno Valley, at no cost to the city, all interests of the state in 10 specified parcels of land located in the City of Moreno Valley that consist mainly of undeveloped open-space land. The measure would require the City of Moreno Valley to use the land to conduct wildfire mitigation to ensure fire protection for residents and businesses, to increase open-space opportunities, and any other similar use the City of Moreno Valley deems necessary. (Assembly Committee on Governmental Organization)

AB 971 (Alvarez), of 2025. This bill would require the DGS director to quitclaim to the San Pasqual Band of Mission Indians all interests of the state in San Pasqual Battlefield State Park. (Assembly Committee on Appropriations - Held on Suspense File.

SB 855 (Committee on Military and Veterans Affairs), of 2025. This bill would authorize the DGS director, with the approval of the Adjutant General, to transfer, exchange or sell, specified armory properties in the cities of Atascadero, Eureka, Gilroy, Lodi, Montebello, Porterville, and San Bruno. (Assembly Committee on Military and Veterans Affairs)

Prior legislation. SB 536 (Rubio), Chapter 768, Statutes of 2024. Authorized DGS to sell, at fair market value, to the City of Chino, the Herman G. Stark Youth Correctional Facility, located in the City of Chino, as specified.

SB 572 (Smallwood-Cuevas), Chapter 770, Statutes of 2024). Authorized DGS to sell, upon terms and conditions the director determines are in the best interest of the state, all or any part of approximately 59,200 square feet of property, located at 5401 Crenshaw Boulevard, Los Angeles for purposes of redeveloping the property as an affordable housing or mixed-used housing project.

SB 958 (Dodd), Chapter 988, Statutes of 2024. Authorized DGS to sell or exchange, at fair market value, the property known as Camp Coombs in the County of Napa to the County of Napa or the Napa County Regional and Open Space District by January 1, 2026, as specified.

SB 1336 (Archuleta), Chapter 473, Statutes of 2024. Authorized DGS, with the consent of the Department of State Hospitals, to lease to a nonprofit corporation or local government, seven buildings located at Metropolitan State Hospital in the City of Norwalk for the purposes of providing housing or facilities, including adult and youth interim housing.

AB 1635 (Ward), of 2024. Required DGS, in consultation with the Department of Motor Vehicles, to enter into good faith negotiations to lease the Hillcrest Property in the City of San Diego. (Senate Floor Inactive File)

AB 349 (Ramos), Chapter 325, Statutes of 2023. Authorized DGS, with the consent of DSH, to lease a building at Patton State Hospital to a nonprofit corporation or local government for purpose of providing services to elderly persons and providing housing to homeless individuals and providing mental health services to those individuals.

REGISTERED SUPPORT / OPPOSITION:

Support

City of Imperial (Sponsor)

City of El Centro
El Centro Police Department
Imperial County District Attorney's Office
Imperial Valley Regional Chamber of Commerce
Sun Community Federal Credit Union
The Brawley Chamber of Commerce

Opposition

None on file

Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531

 THIRD READING  

Bill No: SB 461

Author: Padilla (D)

Amended: 3/24/25

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 15-0, 4/8/25

AYES: Padilla, Valladares, Archuleta, Ashby, Blakespear, Cervantes, Dahle, Hurtado, Jones, Ochoa Bogh, Richardson, Rubio, Smallwood-Cuevas, Wahab, Weber Pierson

SENATE APPROPRIATIONS COMMITTEE: 6-0, 5/23/25

AYES: Caballero, Seyarto, Cabaldon, Grayson, Richardson, Wahab

NO VOTE RECORDED: Dahle

SUBJECT: State real property: City of Imperial

SOURCE: City of Imperial

DIGEST: This bill authorizes Director of the Department of General Services (DGS) to sell or lease to the City of Imperial, all or any part of the California Highway Patrol (CHP) El Centro Area office, as specified.

ANALYSIS:

Existing law:

1. Establishes DGS, which is under the control of the Director of DGS, within the Government Operations Agency, and requires the director to perform various functions and duties with respect to property within the state, including entering into lease agreements.
2. Authorizes DGS, subject to legislative approval, to sell, lease, exchange, or transfer various specified properties for current market value, upon such other terms and conditions DGS determines are in the best interest of the state.
3. Authorizes DGS, with the consent of the state agency concerned, to, among other things, let for a period not to exceed five years, any real personal property that belongs to the state, unless otherwise prohibited or excepted.
4. Authorizes DGS, with the consent of the state agency concerned, to let for any period of time any real property or interest in real property that belongs to the state, when DGS deems the letting serves a beneficial public purpose limited to the development of housing, including permanent supportive or traditional housing and emergency shelters or park and recreation facilities. Under this section, DGS is authorized to enter into leases at less than market value provided that the cost of administering the lease is recovered. (Government Code 14671.2)
5. Requires DGS to create a digitized inventory of all excess state land, create screening tools for prioritizing affordable housing development on excess state land, and issue requests for proposals and select affordable housing developments on excess state land, as described.
6. 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 a specific utilization relative to future needs; and,
   3. Land not identified by the state agency within its master plan for facility development.

This bill:

1. Authorizes DGS to sell or lease, at fair market value to the City of Imperial, upon those terms and conditions DGS determines are in the best interest of the state, all or any part of the CHP El Centro Area office located at 2331 U.S. Highway, Imperial, in the County of Imperial, as specified.
2. Authorizes DGS to sell the property at less than fair market value, if DGS determines that a discount will enhance public safety and facilitate the state in addressing historic pollution at the property by conducting remediation related to fuel storage, the presence of asbestos, and other factors.
3. Exempts the sale or lease of the property from the California Environmental Quality Act.
4. Requires the net proceeds of the sale to be deposited into the Special Fund for Economic Uncertainties, and specifies that moneys in the fund attributable to the sale are not continuously appropriated and are available for expenditure only upon appropriation by the Legislature.

Background

Author Statement. According to the author’s office, “currently, the Imperial Police Department operates from a converted juvenile detention facility that houses multiple city functions, including City Hall and Public Services. This arrangement presents several operational challenges. The California Highway Patrol will be moving to a new facility in El Centro, leaving their facility within the boundaries of the City of Imperial behind. SB 461 would facilitate the transfer of the CHP facility to the City of Imperial. An acquisition by the City would present a cost-effective solution that would accommodate the City and Police Department’s growth requirements while enhancing public safety services for the expanding community. By transferring the facility to the City of Imperial, we can save taxpayer dollars while allowing the City to focus its limited resources on housing development and other priorities. The transfer offers a cost-effective solution to maintain law enforcement services while optimizing the use of an existing facility.”

CHP El Centro Office. The CHP El Centro Area office is located in Imperial County in the southeast region of California within the boundaries of the City of Imperial. The facility is about 4,000 square feet and consists of 42 uniformed employees, and four on-uniformed support staff. According to the Imperial Valley Press, a walkthrough of the current CHP El Centro Area office shows a small lobby, semi-cramped dispatcher room, and various rooms, which serve multiple functions because of lack of space, including classrooms and DUI evaluation rooms, or staff break rooms that double as meeting rooms.

The CHP will soon vacate the facility when they move to a new location currently under construction at 2803 S 4^th Street, El Centro, California. The new CHP El Centro site will be over 40,000 square feet by its completion and is estimated to open at some point in 2025.

Process for Surplus Property. The DGS is currently responsible for the disposition of state-owned property that has been declared surplus to future state needs. The Legislature must declare the property to be surplus and must authorize the Director of DGS to sell, exchange, lease, or transfer the surplus property according to specified procedures set forth in law.

Generally, current law requires surplus property to be transferred or sold at market value, or upon such other terms and conditions that DGS determines are in the best interest of the state. Current law gives right of first refusal on any surplus property to a local agency and then to a nonprofit affordable housing sponsor, prior to being offered for sale to private entities or individuals in the open market. In addition, DGS is authorized to sell surplus property to a local agency or to a nonprofit affordable housing sponsor at a sales price less than fair market value if DGS determines that such a discount will enable housing for individuals or families of low or moderate income.

In 2019, Governor Newsom, issued Executive Order N-06-19 (EO) which reoriented DGS’s priorities to focus on facilitating conversion of excess property to affordable housing. Since the EO, DGS has reviewed over 44,000 parcels and has identified 32 projects in various phases of development. These 32 projects are estimated to result in 4,300 housing units. The contents of the EO were later codified by SB 561 (Dodd, Chapter 446, Statutes of 2022) and AB 2233 (Quirk-Silva, Chapter 438, Statutes of 2022). On July 1, 2024, DGS released a new digitized inventory of state-owned land that is considered excess and suitable for reuse as affordable housing under the EO. Anyone can use the map to search through the state’s inventory of available excess land and apply various filters, such as high-quality areas.

Additionally, current law, under Government Code section 14671.2, authorizes DGS, with the consent of the state agency concerned, to let for any period of time any real property or interest in real property that belongs to the state, when DGS deems the letting serves a beneficial public purpose limited to the development of housing, including permanent supportive or traditional housing and emergency shelters or park and recreation facilities.

This bill authorizes DGS to sell or lease all or any part of the California Highway Patrol El Centro Area office, at fair market value, to the City of Imperial. However, this bill does allow DGS to sell the property at less than fair market value, if DGS determines that a discount will enhance public safety and facilitate the state in addressing historic pollution at the property by conducting remediation related to fuel storage, the presence of asbestos, and other factors. It’s important to note that nothing in this bill requires the sale or lease of the property at below fair market value. This bill would simply authorize DGS to provide such a discount, if the director of DGS determines that the discount will enhance public safety and facilitate the state in addressing pollution at the facility.

Prior/Related Legislation

SB 536 (Rubio, Chapter 768, Statutes of 2024) authorizes DGS to sell, at fair market value, to the City of Chino, the Herman G. Stark Youth Correctional Facility, located in the City of Chino, as specified.

SB 572 (Smallwood-Cuevas, Chapter 770, Statutes of 2024) authorizes DGS to sell, upon terms and conditions the director determines are in the best interest of the state, all or any part of approximately 59,200 square feet of property, located at 5401 Crenshaw Boulevard, Los Angeles for purposes of redeveloping the property as an affordable housing or mixed-used housing project.

SB 958 (Dodd, Chapter 988, Statutes of 2024) authorizes DGS to sell or exchange, at fair market value, the property known as Camp Coombs in the County of Napa to the County of Napa or the Napa County Regional and Open Space District by January 1, 2026, as specified.

SB 1336 (Archuleta, Chapter 473, Statutes of 2024) authorizes DGS, with the consent of the Department of State Hospitals, to lease to a nonprofit corporation or local government, seven buildings located at Metropolitan State Hospital in the City of Norwalk for the purposes of providing housing or facilities, including adult and youth interim housing.

AB 1635 (Ward, 2024) requires DGS, in consultation with the Department of Motor Vehicles, to enter into good faith negotiations to lease the Hillcrest Property in the City of San Diego. (Died on the Senate Floor Inactive File)

AB 349 (Ramos, Chapter 325, Statutes of 2023) authorizes DGS, with the consent of DSH, to lease a building at Patton State Hospital to a nonprofit corporation or local government for purpose of providing services to elderly persons and providing housing to homeless individuals and providing mental health services to those individuals.

SB 561 (Dodd, Chapter 446, Statutes of 2022) requires DGS, in consultation with the California Department of Housing and Community Development, to develop criteria to evaluate the suitability of excess state-owned parcels for affordable housing, as specified.

AB 2233 (Quirk Silva, Chapter 438, Statutes of 2022) required DGS to prepare and report to the Legislature a streamlined plan to transition underutilized multi-story state buildings into housing, as specified.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee, total one-time cost to DGS of approximately $110,177, which include workload to conduct the appraisal and environmental reports and review, as well as other DGS administrative costs for the purchase and sales agreement. DGS administrative costs would be recovered from the proceeds of the property sale.

Additionally, unknown one-time revenue gain to the state for the sale of the property, to be deposited into the Property Acquisition Law Money Account and the Special Fund for Economic Uncertainties. Revenue gain will be less if the property is sold for less than fair market value.

SUPPORT: (Verified 5/23/25)

City of Imperial (Source)

City of El Centro

El Centro Police Department

The Chamber of Commerce for Greater Brawley

George Marquez, Imperial County District Attorney

Imperial Valley Regional Chamber of Commerce

Sun Community Federal Credit Union

OPPOSITION: (Verified 5/23/25)

None received

ARGUMENTS IN SUPPORT: According to the City of Imperial, “[t]he California Highway Patrol station is located within the boundaries of the City of Imperial. An acquisition by the City would present a cost-effective solution that would accommodate the City and Police Department’s growth requirements while enhancing public safety services for the expanding community. The facility is already configured for law enforcement operations and would allow good accessibility for community members, and is centrally located within the city. The facility would minimize renovation costs and the need to convert a non-law enforcement facility. At the same time, the CHP facility would be unsuitable for housing development given the unique characteristics of the property, such as fuel storage and refueling stations, evidence lockers, and prison detention cells. Exchanging the property from CHP to local law enforcement will make the best and highest use of the existing facility.”

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

5/25/25 18:02:18

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anna Caballero, Chair

2025 - 2026 Regular Session

SB 461 (Padilla) - State real property: City of Imperial

Bill Summary:

SB 461 authorizes the director of the Department of General Services (DGS) to sell or lease all or any part of the California Highway Patrol (CHP) El Centro Area office to the City of Imperial, as specified.

Fiscal Impact:

• Total one-time cost to DGS of approximately $110,177, which include workload to conduct the appraisal and environmental reports and review, as well as other DGS administrative costs for the purchase and sales agreement. DGS administrative costs would be recovered from the proceeds of the property sale.
• Unknown one-time revenue gain to the state for the sale of the property, to be deposited into the Property Acquisition Law Money Account and the Special Fund for Economic Uncertainties. Revenue gain will be less if the property is sold for less than fair market value.

Background:

The CHP El Centro Area office is located in Imperial County in the southeast region of California within the boundaries of the City of Imperial. The facility is about 4,000 square feet and consists of 42 uniformed employees, and four on-uniformed support staff. According to the Imperial Valley Press, a walkthrough of the current CHP El Centro Area office shows a small lobby, semi-cramped dispatcher room, and various rooms, which serve multiple functions because of lack of space, including classrooms and DUI evaluation rooms, or staff break rooms that double as meeting rooms.

The CHP will soon vacate the facility when they move to a new location currently under construction at 2803 S 4th Street, El Centro, California. The new CHP El Centro site will be over 40,000 square feet by its completion and is estimated to open at some point in 2025.

Proposed Law:

• Authorizes the director of DGS to sell or lease all or any part of the CHP El Centro Area office to the City of Imperial, at fair market value.
  • Specifies the location of the office at 2331 U.S. Highway 86, Imperial, in the County of Imperial.
• Provides, to the extent bonds issued by the State Public Works Board involve the property, all issuer-related and trustee-related costs associated with the review of any proposed sale or lease, together with the costs related to the defeasance or retirement of any bonds, be paid from the proceeds of any sale or lease.
• Authorizes the director of DGS to permit a sales price for the property at less than fair market value if the director determines the discount will enhance public safety and facilitate the state in addressing historic pollution at the property, as specified.

-- END --

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Steve Padilla

Chair

2025 - 2026 Regular

Bill No: SB Hearing Date: 4/8/2025

SUBJECT:

DIGEST: This bill authorizes Director of the Department of General Services (DGS) to sell or lease to the City of Imperial, all or any part of the California Highway Patrol (CHP) El Centro Area office, as specified.

ANALYSIS:

Existing law:

1. Establishes DGS, which is under the control of the Director of DGS, within the Government Operations Agency, and requires the director to perform various functions and duties with respect to property within the state, including entering into lease agreements.
2. Authorizes DGS, subject to legislative approval, to sell, lease, exchange, or transfer various specified properties for current market value, upon such other terms and conditions DGS determines are in the best interest of the state.
3. Authorizes DGS, with the consent of the state agency concerned, to, among other things, let for a period not to exceed five years, any real personal property that belongs to the state, unless otherwise prohibited or excepted.
4. Authorizes DGS, with the consent of the state agency concerned, to let for any period of time any real property or interest in real property that belongs to the state, when DGS deems the letting serves a beneficial public purpose limited to the development of housing, including permanent supportive or traditional housing and emergency shelters or park and recreation facilities. Under this section, DGS is authorized to enter into leases at less than market value provided that the cost of administering the lease is recovered. (Government Code 14671.2)
5. Requires DGS to create a digitized inventory of all excess state land, create screening tools for prioritizing affordable housing development on excess state land, and issue requests for proposals and select affordable housing developments on excess state land, as described.
6. 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 a specific utilization relative to future needs; and,
   3. Land not identified by the state agency within its master plan for facility development.

This bill:

1. Authorizes DGS to sell or lease, at fair market value to the City of Imperial, upon those terms and conditions DGS determines are in the best interest of the state, all or any part of the CHP El Centro Area office located at 2331 U.S. Highway, Imperial, in the County of Imperial, as specified.
2. Authorizes DGS to sell the property at less than fair market value, if DGS determines that a discount will enhance public safety and facilitate the state in addressing historic pollution at the property by conducting remediation related to fuel storage, the presence of asbestos, and other factors.
3. Exempts the sale or lease of the property from the California Environmental Quality Act.
4. Requires the net proceeds of the sale to be deposited into the Special Fund for Economic Uncertainties, and specifies that moneys in the fund attributable to the sale are not continuously appropriated and are available for expenditure only upon appropriation by the Legislature.

Background

Author Statement. According to the author’s office, “currently, the Imperial Police Department operates from a converted juvenile detention facility that houses multiple city functions, including City Hall and Public Services. This arrangement presents several operational challenges. The California Highway Patrol will be moving to a new facility in El Centro, leaving their facility within the boundaries of the City of Imperial behind. SB 461 would facilitate the transfer of the CHP facility to the City of Imperial. An acquisition by the City would present a cost-effective solution that would accommodate the City and Police Department’s growth requirements while enhancing public safety services for the expanding community. By transferring the facility to the City of Imperial, we can save taxpayer dollars while allowing the City to focus its limited resources on housing development and other priorities. The transfer offers a cost-effective solution to maintain law enforcement services while optimizing the use of an existing facility.”

CHP El Centro Office. The CHP El Centro Area office is located in Imperial County in the southeast region of California within the boundaries of the City of Imperial. The facility is about 4,000 square feet and consists of 42 uniformed employees, and four on-uniformed support staff. According to the Imperial Valley Press, a walkthrough of the current CHP El Centro Area office shows a small lobby, semi-cramped dispatcher room, and various rooms, which serve multiple functions because of lack of space, including classrooms and DUI evaluation rooms, or staff break rooms that double as meeting rooms.

The CHP will soon vacate the facility when they move to a new location currently under construction at 2803 S 4^th Street, El Centro, California. The new CHP El Centro site will be over 40,000 square feet by its completion and is estimated to open at some point in 2025.

Process for Surplus Property. The DGS is currently responsible for the disposition of state-owned property that has been declared surplus to future state needs. The Legislature must declare the property to be surplus and must authorize the Director of DGS to sell, exchange, lease, or transfer the surplus property according to specified procedures set forth in law.

Generally, current law requires surplus property to be transferred or sold at market value, or upon such other terms and conditions that DGS determines are in the best interest of the state. Current law gives right of first refusal on any surplus property to a local agency and then to a nonprofit affordable housing sponsor, prior to being offered for sale to private entities or individuals in the open market. In addition, DGS is authorized to sell surplus property to a local agency or to a nonprofit affordable housing sponsor at a sales price less than fair market value if DGS determines that such a discount will enable housing for individuals or families of low or moderate income.

In 2019, Governor Newsom, issued Executive Order N-06-19 (EO) which reoriented DGS’s priorities to focus on facilitating conversion of excess property to affordable housing. Since the EO, DGS has reviewed over 44,000 parcels and has identified 32 projects in various phases of development. These 32 projects are estimated to result in 4,300 housing units. The contents of the EO were later codified by SB 561 (Dodd, Chapter 446, Statutes of 2022) and AB 2233 (Quirk-Silva, Chapter 438, Statutes of 2022). On July 1, 2024, DGS released a new digitized inventory of state-owned land that is considered excess and suitable for reuse as affordable housing under the EO. Anyone can use the map to search through the state’s inventory of available excess land and apply various filters, such as high-quality areas.

Additionally, current law, under Government Code section 14671.2, authorizes DGS, with the consent of the state agency concerned, to let for any period of time any real property or interest in real property that belongs to the state, when DGS deems the letting serves a beneficial public purpose limited to the development of housing, including permanent supportive or traditional housing and emergency shelters or park and recreation facilities.

This bill authorizes DGS to sell or lease all or any part of the California Highway Patrol El Centro Area office, at fair market value, to the City of Imperial. However, the bill does allow DGS to sell the property at less than fair market value, if DGS determines that a discount will enhance public safety and facilitate the state in addressing historic pollution at the property by conducting remediation related to fuel storage, the presence of asbestos, and other factors. It’s important to note that nothing in the bill requires the sale or lease of the property at below fair market value. The bill would simply authorize DGS to provide such a discount, if the director of DGS determines that the discount will enhance public safety and facilitate the state in addressing pollution at the facility.

Broad Language. As currently drafted, the bill would allow the Director of DGS to sell the CHP property at less than fair market value if DGS determines that a discount will enhance public safety and facilitate the state in addressing historic pollution at the property by conducting remediation related to fuel storage, the presence of asbestos, and other factors. The “other factors” language is quite broad. It’s unclear whether this refers to other factors that cause pollution or whether DGS can lower the sales price of the property for any other factors including factors not related to pollution. According to the sponsor of the bill, the “other factors” language is intended to address issues with the property such as asbestos and above ground fuel storage. As the bill moves through the legislative process, the author may wish to clarify which factors DGS can consider that will allow DGS to sell the property at below fair market value to the City of Imperial.

Prior/Related Legislation

SB 536 (Rubio, Chapter 768, Statutes of 2024) authorizes DGS to sell, at fair market value, to the City of Chino, the Herman G. Stark Youth Correctional Facility, located in the City of Chino, as specified.

SB 572 (Smallwood-Cuevas, Chapter 770, Statutes of 2024) authorizes DGS to sell, upon terms and conditions the director determines are in the best interest of the state, all or any part of approximately 59,200 square feet of property, located at 5401 Crenshaw Boulevard, Los Angeles for purposes of redeveloping the property as an affordable housing or mixed-used housing project.

SB 958 (Dodd, Chapter 988, Statutes of 2024) authorizes DGS to sell or exchange, at fair market value, the property known as Camp Coombs in the County of Napa to the County of Napa or the Napa County Regional and Open Space District by January 1, 2026, as specified.

SB 1336 (Archuleta, Chapter 473, Statutes of 2024) authorizes DGS, with the consent of the Department of State Hospitals, to lease to a nonprofit corporation or local government, seven buildings located at Metropolitan State Hospital in the City of Norwalk for the purposes of providing housing or facilities, including adult and youth interim housing.

AB 1635 (Ward, 2024) requires DGS, in consultation with the Department of Motor Vehicles, to enter into good faith negotiations to lease the Hillcrest Property in the City of San Diego. (Died on the Senate Floor Inactive File)

AB 349 (Ramos, Chapter 325, Statutes of 2023) authorizes DGS, with the consent of DSH, to lease a building at Patton State Hospital to a nonprofit corporation or local government for purpose of providing services to elderly persons and providing housing to homeless individuals and providing mental health services to those individuals.

SB 561 (Dodd, Chapter 446, Statutes of 2022) requires DGS, in consultation with the California Department of Housing and Community Development, to develop criteria to evaluate the suitability of excess state-owned parcels for affordable housing, as specified.

AB 2233 (Quirk Silva, Chapter 438, Statutes of 2022) required DGS to prepare and report to the Legislature a streamlined plan to transition underutilized multi-story state buildings into housing, as specified.

AB 2385 (Ramos, 2020) would have authorized DGS to lease the PSH for the purpose of providing transitional housing services. (Never Heard in the Assembly Accountability and Administrative Review Committee)

AB 518 (Calderon, Chapter 43, Statutes of 2020) authorized DGS, until January 1, 2025, to sell the Southern Youth Correctional Reception Center and Clinic to the City of Norwalk at fair market value upon terms and conditions DGS determines are in the best interest of the state.

SB 281 (Wiener, 2019) would have required the property known as the Cow Palace to be transferred to a newly established Cow Palace Authority for the purpose of managing, developing or disposing of the property. (Gutted and amended to an unrelated issue)

SB 501 (Hurtado, 2019) would have rescinded the authorization for DGS to sell the Reedly Armory. (Pending in the Assembly Veterans Committee)

AB 653 (Bloom, Chapter 263, Statutes of 2019) authorized DGS, with the approval of the Adjutant General, to lease, for a term of 25 years, approximately 1.3 acres of the real property of the real property located at 1300 Federal Avenue, Los Angeles, California, known as the West Los Angeles National Guard Armory to the County of Los Angeles.

AB 869 (Cunningham, 2019) would have required DGS to notify other state agencies of an excess property and take action on a transfer of jurisdiction request for the property within 150 days. (Vetoed by Governor Newsom)

AB 1164 (Gloria, 2019) authorized DGS to dispose all or any part of the property known as the San Diego State Office Building in San Diego County.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT:

City of Imperial (Source)

City of El Centro

El Centro Police Department

George Marquez, Imperial County District Attorney

Imperial Valley Regional Chamber of Commerce

Sun Community Federal Credit Union

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: According to the City of Imperial, “[t]he California Highway Patrol station is located within the boundaries of the City of Imperial. An acquisition by the City would present a cost-effective solution that would accommodate the City and Police Department’s growth requirements while enhancing public safety services for the expanding community. The facility is already configured for law enforcement operations and would allow good accessibility for community members, and is centrally located within the city. The facility would minimize renovation costs and the need to convert a non-law enforcement facility. At the same time, the CHP facility would be unsuitable for housing development given the unique characteristics of the property, such as fuel storage and refueling stations, evidence lockers, and prison detention cells. Exchanging the property from CHP to local law enforcement will make the best and highest use of the existing facility.”

According to El Centro Police Department, “SB 461 would facilitate the transfer of the CHP facility to the City of Imperial. By transferring the facility to the City of Imperial, we can save taxpayers dollars while allowing the city to focus its limited resources on housing development and other priorities.”

DUAL-REFERRAL: Senate Governmental Organization Committee & Senate Local Government Committee