Bill Text: CA AB181 | 2009-2010 | Regular Session | Amended

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Bill Title: Del Mar Race Track and Fairgrounds: sale of state

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Engrossed - Dead) 2010-10-07 - Read second time. To third reading. Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(c). [AB181 Detail]

Download: California-2009-AB181-Amended.html

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BILL NUMBER: AB 181	AMENDED
	BILL TEXT

	AMENDED IN SENATE  OCTOBER 6, 2010
	AMENDED IN SENATE  SEPTEMBER 4, 2009

INTRODUCED BY   Assembly Member  Bass   Saldana

    (   Principal coauthor: 
 Assembly Member   De La Torre 
 ) 
   (Principal coauthor: Senator  Steinberg  
Kehoe  )

                        FEBRUARY 2, 2009

    An act to amend and supplement the Budget Act of 2009
(Chapter 1 of the 2009-10 Third Extraordinary Session) by amending
Section 3.90 of, and adding Section 3.91 to, that act, relating to
the State Budget, and declaring the urgency thereof, to take effect
immediately.  An act to add Sections 3873.1 and 3873.2
to the Food and Agricultural Code, and to add Article 11 (commencing
with Section 54260) to Chapter 5 of Part 1 of Division 2 of Title 5
of the Government Code, relating to the Del Mar Race Track and
Fairgrounds, making an appropriation therefor, and declaring the
urgency thereof, to take effect immediately. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 181, as amended,  Bass   Saldana  .
 Budget Act of 2009.   Del Mar Race Track and
Fairgrounds: sale of state property.  
   The Budget Act of 2009 (Chapter 1 of the 2009-10 Third
Extraordinary Session, as amended) made appropriations for the
support of state government for the 2009-10 fiscal year. The act,
among other things, authorized the Director of Finance to reduce
items of appropriation to reflect a reduction in employee
compensation achieved through the collective bargaining process or
through existing administrative authority in the total amounts of
$1,477,917,000 from General Fund items and $973,058,000 from items
relating to other funds.  
   This bill would reduce those amounts to $1,052,917,000 from
General Fund items and $658,058,000 from items relating to other
funds. In addition, the bill would authorize the Director of Finance
to reduce, with specified exceptions, items of appropriation for
state operations in the total amounts of $425,000,000 from General
Fund items and $315,000,000 from items relating to other funds. The
bill would make the director's authority to make those reductions
contingent on the imposition of no more than 2 furlough days per
month on state employees.  
   Existing law provides that the state is divided into agricultural
districts in which 50 or more persons, who are residents of a
district, may form a district agricultural association for specified
purposes, including holding fairs and constructing, maintaining, and
operating recreational facilities. Existing law provides that
District 22 is the County of San Diego.  
   Existing saw authorizes the Director of General Services to
dispose of surplus state property, subject to specified conditions,
including that the net proceeds of the sale be paid into the Deficit
Recovery Bond Retirement Sinking Fund Subaccount, which is a
continuously appropriated fund.  
   This bill would create District 22a, which would consist of all of
that real property that is a portion of District 22 that is owned by
the 22nd District Agricultural Association, which includes that real
property commonly known as the Del Mar Race Track and Fairgrounds
located in the City of Del Mar and certain other property in the City
of San Diego, and would prescribe certain matters applicable to
officers of the 22nd District Agricultural Association and the
District 22a Agricultural Association. The bill would, among other
things, authorize the Department of General Services to sell all of
the real property that comprises District 22a and related personal
property to the City of Del Mar; require the net sale proceeds to be
deposited into the District 22a Disposition Fund, which the bill
would create in the State Treasury; and require the department to
report annually to the Legislature on the status of the purchase
price balance.  
   This bill would require District 22a to be abolished and all funds
in the District 22a Disposition Fund to be transferred to the
General Fund, upon sale of all property that comprises District 22a,
and ultimately be deposited into the Deficit Recovery Bond Retirement
Sinking Fund Subaccount, a continuously appropriated fund thereby
resulting in an appropriation.  
   This bill would also authorize the City of Del Mar to enter into
an agreement with the Department of General Services to purchase all
of the real property that comprises District 22a and any related
personal property, for $120,000,000, as prescribed. The bill would
authorize the city to issue revenue bonds, as specified, to finance a
portion of the property purchase. The bill would require the city,
if it exercises its authority to purchase the property, to establish
a nonprofit corporation to manage the operation and maintenance of
the property, as specified. 
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation:  no   yes  .
Fiscal committee: yes. State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 3873.1 is added to the 
 Food and Agricultural Code   , to read:  
   3873.1.  (a) There is hereby created District 22a, which consists
of all of that real property that is a portion of District 22 that is
owned by the 22nd District Agricultural Association, which includes
that real property commonly known as the Del Mar Race Track and
Fairgrounds located in the City of Del Mar and that real property in
the City of San Diego with parcel numbers 299-042-01, 299-042-02,
302-090-11, and 304-020-17.
   (b) Notwithstanding any other law, any officer of the District 22a
Agricultural Association may also be an officer of the 22nd District
Agricultural Association and shall be a resident of District 22. All
otherwise applicable ethical duties and restrictions, including
those in Section 1090 of the Government Code, subdivision (a) of
Section 8920 of the Government Code, and the Political Reform Act of
1974 (Title 9 (commencing with Section 81000) of the Government
Code), shall apply to the officers of both the 22nd District
Agricultural Association and the District 22a Agricultural
Association, and shall apply in regard to the transactions
contemplated by Section 3873.2.
   (c) Upon the formation of the District 22a Agricultural
Association, the 22nd District Agricultural Association shall also
transfer all personal property it owns to the District 22a
Agricultural Association. 
   SEC. 2.    Section 3873.2 is added to the  
Food and Agricultural Code   , to read:  
   3873.2.  (a) The District 22a Disposition Fund is hereby created
in the State Treasury.
   (b) Notwithstanding any other law, the Department of General
Services may sell all of the real property that comprises District
22a and related personal property to the City of Del Mar for one
hundred twenty million dollars ($120,000,000) or such other price as
the Department of General Services deems to be the reasonable fair
market value of the property, under terms and conditions satisfactory
to the Director of General Services. The District 22a Agricultural
Association shall not enter into any contract, lease, or other
agreement affecting the use or operation of the real property for a
period that exceeds three months, and all of these contracts, leases,
or other agreements shall contain a provision that they may be
canceled upon a 30-day notice from the Department of General
Services. The Department of General Services shall be reimbursed from
the proceeds of the sale of the property for any reasonable cost or
expense incurred for the transactions described in this section.
Additionally, to the extent bonds issued by the State Public Works
Board or other entity involve the property to be sold pursuant to
this section, all issuer and trustee related costs associated with
the review of any proposed sale, together with the costs related to
the defeasance or retirement of any bonds, which may include the cost
of nationally recognized bond counsel, shall be paid from the
proceeds of any sale or lease authorized by this section. The net
proceeds from the sale shall be deposited into the District 22a
Disposition Fund.
   (c) Thirty days prior to executing a transaction for the sale of
real and personal property as authorized by this section, the
Director of General Services shall report in writing to the chairs of
the fiscal committees of the Legislature all of the following:
   (1) The financial terms of the transaction.
   (2) A comparison of fair market value for the real property and
the terms listed in paragraph (1).
   (3) Any basis for agreeing to terms and conditions other than fair
market value.
   (d) As to the real property sold pursuant to this section, the
Director of General Services shall except and reserve to the state
all mineral deposits, as defined in Section 6407 of the Public
Resources Code, together with the right to prospect for, mine, and
remove the deposits. If, however, the Director of General Services
determines that there is little or no potential for mineral deposits,
the reservation may be without surface right of entry above a depth
of 500 feet, or the rights to prospect for, mine, and remove the
deposits shall be limited to those areas of the real property
conveyed that the director determines to be reasonably necessary for
the removal of the deposits.
   (e) The Department of General Services shall report in writing to
the Legislature on or before June 30 of each year on the status of
the payments by the purchaser toward the balance of the purchase
price for the sale of property authorized by this section, until the
balance is fully paid. A report to be submitted pursuant to this
subdivision shall be submitted in compliance with Section 9795 of the
Government Code.
   (f) Upon the sale of all property that comprises District 22a,
District 22a shall be abolished and all funds in the District 22a
Disposition Fund shall be transferred to the General Fund for use
consistent with subdivision (g) of Section 11011 of the Government
Code and Section 9 of Article III of the California Constitution.
   (g) The sale of the real property authorized by subdivision (b) is
made on an "as is" basis, without the customary representations and
warranties as to known conditions, including any unresolved issues
involving those portions of the property that are subject to the
public trust doctrine, and shall be exempt from Chapter 3 (commencing
with Section 21100) to Chapter 6 (commencing with Section 21165),
inclusive, of Division 13 of the Public Resources Code. Upon title to
the parcel vesting in the purchaser or transferee of the property,
the purchaser or transferee shall be subject to any local
governmental land use entitlement approval requirements, including
local zoning as adopted by the Cities of Del Mar and San Diego within
their respective jurisdictions. Uses for the property within the
jurisdiction of the City of Del Mar shall be consistent with the
existing uses at the time of the property transfer that are
permissible under the City of Del Mar's "Fairgrounds - Racetrack"
land use designation as provided in the City of Del Mar's certified
local coastal program, which shall serve as the applicable local
coastal program for the property within the City of Del Mar until the
City of Del Mar adopts and the California Coastal Commission
certifies an amendment to the local coastal program pursuant to
Article 2 (commencing with Section 30510) of Chapter 6 of Division 20
of the Public Resources Code. Upon title to the parcel vesting in
the purchaser or transferee of the property, the purchaser or
transferee shall also be subject to Chapter 3 (commencing with
Section 21100) to Chapter 6 (commencing with Section 21165),
inclusive, of Division 13 of the Public Resources Code. 
   SEC. 3.   Article 11 (commencing with Section 54260)
is added to Chapter 5 of Part 1 of Division 2 of Title 5 of the 
 Government Code   , to read:  

      Article 11.  Del Mar Race Track and Fairgrounds


   54260.  For purposes of this article, the following terms shall
have the following meanings:
   (a) "City" means the City of Del Mar located in San Diego County.
   (b) "Del Mar property" means the real property that comprises
District 22a as described in Section 3873.1 of the Food and
Agricultural Code, and any related personal property.
   (c) "Revenue bond" means any bond, warrant, note, or other
evidence of indebtedness payable from funds other than the proceeds
of the city's ad valorem taxes or assessments levied without
limitation as to rate or amount upon property in the city.
   54261.  Notwithstanding any other law, the city may enter into an
agreement with the Department of General Services for the purchase of
the Del Mar property, consistent with the requirements of this
section and Section 3873.2 of the Food and Agricultural Code. The
purchase price shall be one hundred twenty million dollars
($120,000,000) or such other price as the Department of General
Services deems to be the reasonable fair market value of the
property.
   54262.  (a) The city may issue revenue bonds, pursuant to this
article or any other revenue bond law under which the city is
otherwise authorized to issue revenue bonds, for the purpose of
financing or refinancing the acquisition, operation, improvement, or
maintenance of the Del Mar property and any costs related thereto,
including, but not limited to, the funding of reserve funds and the
costs of issuing and carrying the revenue bonds.
   (b) The city may issue the revenue bonds after the city council
authorizes the issuance of the revenue bonds by adopting a resolution
or enacting an ordinance to that effect. The resolution or ordinance
may provide, among other things, for the following:
   (1) The bonds be issued as serial bonds, term bonds, installment
bonds, or any combination thereof.
   (2) The date or dates to be borne by the bonds.
   (3) The time or times of maturity of the bonds.
   (4) The interest, whether fixed or variable, to be borne by the
bonds.
   (5) The time or times when the bonds shall be payable.
   (6) The place or places where the bonds shall be payable.
   (7) The denominations, form, and registration privileges of the
bonds.
   (8) The manner of execution of the bonds.
   (9) The terms of redemption.
   (10) Any other terms or conditions that the city determines to be
necessary.
   (c) The city may issue the bonds at public or private sale or on a
negotiated sale basis and at the prices, above or below par, as the
city determines.
   54263.  The principal and interest of revenue bonds issued by the
city pursuant to this article shall be payable from the nontax
revenues derived from the operation of the Del Mar property, and
neither the payment of the principal nor interest of the bonds
constitutes a debt, liability, or obligation of the city, except as
described in this section, or of the State of California. All bonds
issued by the city pursuant to this article shall contain a recital
on their face that neither the payment of the principal nor any part
thereof nor any interest thereon constitutes a debt, liability, or
obligation of the city, except as described in this section, or of
the state.
   54264.  (a) If the city exercises its authority to purchase the
Del Mar property, revenues derived by the city from the operation of
the Del Mar property, including, but not limited to, revenues from
fairs, expositions, and exhibitions, and lease payments for the race
track or other facilities on the property, shall be deposited into
the Del Mar Property Revenue Fund, to be established by the city. The
fund shall be comprised only of these revenues and no other moneys
shall be deposited into the fund. Moneys in the fund shall be used
for the purpose of retiring revenue bond debt and any other property
purchase obligations incurred pursuant to this article, as provided
in subdivision (b).
   (b) Subject to any priorities created by the pledge of particular
moneys in the fund to secure any issuance of bonds of the city, to
the operation and maintenance costs incurred in the operation of the
Del Mar property, to reserve funds set aside for the renewal and
replacement of, and improvement to, the facilities of the Del Mar
property, and to reasonable administrative costs incurred by the city
in implementing this article, all moneys in the Del Mar Property
Revenue Fund shall be held in trust for the security and payment of
bonds and other property purchase obligations, and shall not be used
or pledged for any other purpose while any bonds or other property
purchase obligations are outstanding and unpaid.
   54265.  To the extent that the provisions of this article are
inconsistent with any other provisions of any general statute or
special act or parts thereof, the provisions of this article shall be
deemed controlling.
   54266.  The holder of any bond issued pursuant to this article may
by mandamus or other appropriate proceeding require and compel the
performance of any of the duties imposed upon the city or upon any
official or employee or assumed by any thereof, in connection with
the purchase, acquisition, operation, improvement, or maintenance of
the Del Mar property, or the collection, deposit, investment,
application, and disbursement of revenues derived from the Del Mar
property, or in connection with the deposit, investment, and
disbursement of the proceeds received from the sale of bonds under
this article. The enumeration of these rights and remedies does not,
however, exclude the exercise or prosecution of any other rights or
remedies available to the holders of bonds issued pursuant to this
article.
   54267.  (a) If the city purchases the Del Mar property pursuant to
this article, the city shall form a nonprofit corporation, with the
city as the sole member of the corporation, to oversee the operation
and maintenance of the Del Mar property. The nonprofit corporation
shall be established by city ordinance which, consistent with the
provisions of this section, shall provide for, at a minimum, the
board of directors and the administrative authority of the
corporation, including the authority to operate and maintain the Del
Mar property.
   (b) The corporation shall consist of nine members, to be appointed
by the city, as follows:
   (1) The city shall appoint the executive director of the San
Dieguito River Park Joint Powers Authority. The executive director
may be represented at board meetings by a deputy who is designated by
the executive director.
   (2) The city shall appoint directors nominated as follows, if the
nominated directors meet the qualifications in subdivision (c):
   (A) Five directors nominated by the City of Del Mar.
   (B) One director nominated by the City of Solana Beach.
   (C) One director nominated by the City of San Diego.
   (D) One director nominated by the County of San Diego.
   (c) The directors appointed pursuant to paragraph (2) of
subdivision (b) shall meet the following qualifications:
   (1) The nominated director shall be a resident of the nominating
jurisdiction.
   (2) The nominated director shall not be an elected official.
   (3) The nominated director shall have no fewer than 10 years of
experience in the business, administrative, or legal fields and have
any other skills or qualifications, as determined by the city,
necessary to carry out the duties and responsibilities related to the
operation and maintenance of the Del Mar property.
   (4) The initial board of directors shall include no more than
three of the District 22a Agricultural Association board of
directors. A director from the District 22a Agricultural Association
board nominated pursuant to this paragraph shall serve a term of one
year. To the extent not prohibited by the charter of the nonprofit
corporation, the City of Del Mar may renominate a director who is
appointed pursuant to this paragraph to serve subsequent terms.
   (d) The nonprofit corporation established pursuant to this section
shall be subject to the requirements of the Ralph M. Brown Act
(Chapter 9 (commencing with Section 54950)), the Political Reform Act
of 1974 (Chapter 1 (commencing with Section 81000) of Title 9), and
the California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1).
   (e) To the extent not prohibited by law, the nonprofit corporation
shall retain personnel of the District 22a Agricultural Association
for a period of at least one year and honor any union personnel
contracts in place at the time that the city acquires the Del Mar
property.
   (f) (1) The nonprofit corporation shall report annually to the
city regarding the operation and maintenance of the Del Mar property,
as directed by the city.
   (2) The city shall report annually to the Legislature regarding
the operations of the fairgrounds and the race track. The city shall
also continue communications with the Department of Food and
Agriculture regarding fair operations. 
   SEC. 4.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
 
   In order to enable the Department of General Services to generate
revenues for the state at the earliest possible time, it is necessary
for this act to take effect immediately.  
  SECTION 1.    The Legislature hereby finds and
declares all of the following:
   (a) The imposition by the Governor of a third furlough day each
month for state employees is unlikely to achieve its goal of saving
approximately four hundred twenty-five million dollars ($425,000,000)
from the General Fund in the 2009-10 fiscal year.
   (b) The third furlough day will likely result in all of the
following:
   (1) Revenue loss of up to three hundred sixty million dollars
($360,000,000) from the General Fund in the 2009-10 fiscal year.
   (2) Additional and significant loss of federal funds due to the
inflexible manner in which the furloughs have been implemented across
the whole of the executive branch without regard to fund source.
   (3) Diminished and delayed services to the public.
   (4) Additional and unnecessary hardship on state employees who
have already endured a nearly 10-percent reduction in compensation
due to the imposition of two furlough days each month.
   (c) It is the intent of the Legislature to eliminate the need for
the third furlough day by providing the Governor with the authority
to achieve, through other means, savings equivalent to those
originally anticipated to occur as a result of the implementation of
the third furlough day.  
  SEC. 2.    Section 3.90 of the Budget Act of 2009
is amended to read:
  Sec. 3.90.  (a) Notwithstanding any other provision of this act,
each item of appropriation in this act, with the exception of those
items for the California State University, the University of
California, Hastings College of the Law, the Bureau of State Audits,
the Legislature (including the Legislative Counsel Bureau), and the
judicial branch, shall be reduced, as appropriate, to reflect a
reduction in employee compensation achieved through the collective
bargaining process for represented employees or through existing
administration authority and a proportionate reduction for
nonrepresented employees (utilizing existing authority of the
administration to adjust compensation for nonrepresented employees)
in the total amounts of $1,052,917,000 from General Fund items and
$658,058,000 from items relating to other funds. The Director of
Finance shall allocate the necessary reductions to each item of
appropriation to accomplish the employee compensation reductions
required by this section.
   (b) The Department of Personnel Administration shall transmit
proposed memoranda of understanding to the Legislature promptly and
shall include with each such transmission estimated savings pursuant
to this section of each agreement.
   (c) Nothing in this section shall change or supersede the
provisions of the Ralph C. Dills Act (Chapter 10.3 (commencing with
Section 3512) of Division 4 of Title 1 of the Government Code).
 
  SEC. 3.    Section 3.91 is added to the Budget Act
of 2009, to read:
  Sec. 3.91.  (a) Notwithstanding any other provision of this act,
the Director of Finance shall reduce items of appropriation in this
act for state operations in the 2009-10 fiscal year, with the
exception of those items for the Bureau of State Audits, the
Legislature (including the Legislative Counsel Bureau), the judicial
branch, and constitutional officers, in the total amounts of
$425,000,000 from General Fund items and $315,000,000 from items
relating to other funds.
   (b) The authority conferred upon the Director of Finance by this
section shall not become operative until Executive Order S-13-09 is
either rescinded or is amended to impose no more than two furlough
days each month on state employees, and shall remain operative only
while no more than two furlough days each month are imposed on state
employees. Nothing in this section confers any authority upon the
Director of Finance to modify or eliminate any other provision of
existing law.
   (c) Not later than February 15, 2010, the Director of Finance
shall report to the Chairperson of the Joint Legislative Budget
Committee and the chairpersons of the committees of each house of the
Legislature that consider appropriations the amount of reductions
made in each item of appropriation pursuant to this section. The
report shall include each specific reduction by department, agency,
and program; a description of programmatic effects; the number and
description of positions affected; and any other description
necessary to fully disclose the reduction's impact. 

  SEC. 4.    This act is an urgency statute
necessary for the immediate preservation of the public peace, health,
or safety within the meaning of Article IV of the Constitution and
shall go into immediate effect. The facts constituting the necessity
are:
   In order to prevent losses to the General Fund, and to avoid
diminished services to the public as well as hardship on state
employees as a result of the imposition of a third furlough day each
month, it is necessary that this act go into immediate effect.