Bill Text: CA AB2726 | 2013-2014 | Regular Session | Chaptered
Bill Title: University of California: real property sales.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-09-16 - Chaptered by Secretary of State - Chapter 361, Statutes of 2014. [AB2726 Detail]
Download: California-2013-AB2726-Chaptered.html
BILL NUMBER: AB 2726 CHAPTERED
BILL TEXT
CHAPTER 361
FILED WITH SECRETARY OF STATE SEPTEMBER 16, 2014
APPROVED BY GOVERNOR SEPTEMBER 16, 2014
PASSED THE SENATE AUGUST 11, 2014
PASSED THE ASSEMBLY MAY 23, 2014
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Member Daly
FEBRUARY 21, 2014
An act to amend Sections 10511, 10512, and 10513 of the Public
Contract Code, relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 2726, Daly. University of California: real property sales.
Existing provisions of the California Constitution provide that
the University of California constitutes a public trust and requires
the university to be administered by the Regents of the University of
California, a corporation in the form of a board, with full powers
of organization and government, subject to legislative control only
for specified purposes, including such competitive bidding procedures
as may be applicable to the university by statute for the letting of
construction contracts, sales of real property, and purchasing of
materials, goods, and services.
Existing law requires the Regents of the University of California
to accept in public a bid for the sale of University of California
real property that offers the combination of price and terms which it
deems to be in the best interest of the university. Public notice,
as specified, is required when the regents sell real property valued
in excess of $500,000.
This bill would amend the public notice requirements to apply only
when the property to be sold is valued in excess of $1,000,000. This
bill would also authorize the regents to consider the bidder's
qualifications, as specified, in addition to terms and price in
determining which bid or proposal is in the best interests of the
university. The bill would also authorize the regents to reject all
bids and proposals and would exempt additional property, such as
property acquired by foreclosure, from the requirements of these
provisions.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 10511 of the Public Contract Code is amended to
read:
10511. (a) (1) The Regents of the University of California shall
give public notice to bidders of the sale of University of California
real property situated in California if the estimated value of the
real property to be sold exceeds the amount specified in paragraph
(2).
(2) Paragraph (1) shall apply to real property whose estimated
value exceeds one million dollars ($1,000,000) net to the seller.
(b) Notice of the sale of real property shall be by publication a
minimum of six times, between 2 and 12 weeks preceding the day set
for receiving bids, as follows:
(1) A minimum of three times in at least one newspaper of general
circulation in the county in which the property is situated.
(2) At least three times in a newspaper of general circulation in
the City of Los Angeles, the City of San Diego, the City of San
Francisco, or the City of Sacramento, whichever is deemed most
appropriate by the regents.
(3) The published notices shall specify the general description of
the property, the source for bid materials and information, and the
date and place for the receiving of sealed bids.
SEC. 2. Section 10512 of the Public Contract Code is amended to
read:
10512. (a) On the date designated in the public notice, the
sealed bids shall be publicly opened.
(b) (1) The regents shall accept in public the bid or proposal
that it deems to offer the best combination of price, terms, and
bidder's qualifications to the university, or reject all bids or
proposals. A bidder's qualifications may include factors other than
price and terms, such as the bidder's ability to complete the
transaction or to secure development entitlements.
(2) If a successful bidder fails to perform in the manner
specified, the regents may, at their sole option and without further
notice, accept, from those remaining bids or proposals submitted and
opened in public pursuant to subdivision (a), the bid or proposal
that it deems to offer the best combination of price, terms, and
bidder's qualifications to the university.
SEC. 3. Section 10513 of the Public Contract Code is amended to
read:
10513. The publication and award procedures set forth in this
article shall not be applicable to any of the following:
(a) The sale of an undivided or fractional ownership interest in
real property.
(b) A sale of a right of use in real property that is less than
fee ownership.
(c) A sale of real property subject to title conditions or
restrictions on the university's ownership deriving from the origin
of that ownership by gift, devise, or otherwise, if that sale would
be inconsistent with those title conditions or restrictions.
(d) The disposition of real property acquired through exercise of
a power of sale pursuant to a deed of trust, foreclosure, deed in
lieu of foreclosure, transactions when property is accepted in
settlement of a defaulted mortgage, legal settlement, or held as an
asset in the university's investment portfolio.
(e) A sale of public lands under the direction of the federal land
agent.
(f) A sale to a person or entity who will dedicate the real
property to public use.
(g) A sale of real property acquired after January 1, 1985,
through eminent domain proceedings initiated by the Regents of the
University of California. In those cases, the person from whom the
property was acquired shall be notified and be accorded an exclusive
opportunity for 90 days to purchase the property at its fair market
value. If the person fails to undertake proceedings to purchase the
property within 90 days, the procedures specified in Sections 10511
and 10512 shall then be followed in the sale of the property.
(h) An exchange to acquire real property of another person or
entity for university purposes. Any exchange shall be upon terms and
conditions agreed to by the exchanging parties.
