Bill Text: CA AB2442 | 2011-2012 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: State property: California Hope Public Trust.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Vetoed) 2012-09-29 - Consideration of Governor's veto pending. [AB2442 Detail]
Download: California-2011-AB2442-Amended.html
Bill Title: State property: California Hope Public Trust.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Vetoed) 2012-09-29 - Consideration of Governor's veto pending. [AB2442 Detail]
Download: California-2011-AB2442-Amended.html
BILL NUMBER: AB 2442 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 25, 2012
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Williams
FEBRUARY 24, 2012
An act to amend Sections 11011 and 54221 of, and to add and repeal
Part 11.5 (commencing with Section 15870) of Division 3 of Title 2
of, the Government Code, relating to state property.
LEGISLATIVE COUNSEL'S DIGEST
AB 2442, as amended, Williams. State property: California Hope
Public Trust.
Existing law requires each state agency to report annually to the
Department of General Services any proprietary state lands under the
jurisdiction of that agency that are in excess of the foreseeable
needs of that agency. Existing law provides certain exceptions from
this requirement, including, among others, lands under the
jurisdiction of specified state entities. Existing law authorizes the
Director of General Services to require a state agency to transfer
to the department jurisdiction over any land declared excess by a
state agency. Existing law authorizes the department to take
specified actions with respect to that property, including, among
others, asking permission from the Legislature to sell or dispose of
the property. Existing law authorizes the department to give priority
to any property that involves the exchange of surplus lands listed
in specified reports. Existing law requires the department to
maintain a complete and accurate statewide inventory of all real
property held by the state.
This bill would exempt additional agencies from the requirement to
report annually to the Department of General Services any property
held by that agency that is in excess of its needs. The bill would
authorize the department to give priority to proposals to further the
purposes of the provisions governing the California Hope Public
Trust.
The bill would establish the California Hope Public Trust in state
government, to be governed and administered by a 9-member board, as
specified. The bill would require the Department of General Services
by March 31, 2013, and annually thereafter, to submit to
the trust a complete and thorough inventory of all state-owned real
estate and property and all lease agreements between any state agency
and private or nonpublic management groups. The bill would require
the trust by January 1, 2014, and at least every 5 years
annually thereafter, to review that inventory of
state-owned property, and to determine which properties should be
controlled by the trust. The bill would require the trust, by January
1, 2014, and annually thereafter, to request that the
Legislature enact legislation that would authorize the trust to
control any of those properties.
The bill would require the trust to accomplish various objectives,
including, among others, to generate a return on real estate
holdings in the possession of the trust, and to use private sector
management and accounting methods to provide for the efficient and
effective utilization of state assets. The bill would authorize the
trust to carry out various powers, including, among others, to
acquire or dispose of any property, to construct and maintain any
building, to lease property to public or private entities, to approve
loan agreements, to issue tax-exempt revenue bonds subject to
certain requirements and procedures, and to sell property owned by
the trust and lease that property back in order to generate a profit.
This bill would prohibit the trust from selling or disposing of
any land reported as excess or any surplus state real property under
certain statutes.
The bill would require all net proceeds received or generated as a
result of activities of the trust to be paid to the California Hope
Public Trust Fund, which would be created by this bill, and require
the trust to use the money in that fund, upon appropriation by the
Legislature in the annual Budget Act in accordance with a
specified schedule , to support the California State University
, California Community Colleges, and University of
California systems.
Commencing on or before July 1, 2015, and each year thereafter,
the bill would require the trust to report to the Legislature on the
activities undertaken by the trust and to include a financial
statement showing the assets, liabilities, revenues, and expenditures
of the trust, and a summary of net proceeds.
The bill would repeal these provisions on January 1, 2019, unless
legislation is enacted that becomes effective before that date, that
transfers management and control over property to the trust.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) Historically, California's institutions of higher education
have prepared significant numbers of educated, responsible people who
contribute to California's schools, economy, culture, and future.
These institutions of education are often conduits for innovation in
the fields of technology, science, engineering, and the arts.
(b) The prosperity of California's future economy and the
well-being of its families depend not just on our natural resources
and the quality of our environment, but on the skills and knowledge
of California's people. Economists widely agree that the 21st
century, even more than the 20th century, will be the "human capital"
century, and that expanding the number of Californians with higher
education degrees is critical to continued economic growth and
expanded opportunity.
(c) The future of California depends on an educated populace to
form a solid and dependable economy. It is projected that 41 percent
of California's jobs will require a bachelor's degree in 2025 and
only 35 percent of working-age adults are projected to have a
bachelor's degree at that time.
(d) Unemployment rates are lower for college graduates as compared
to working-age adults with less education. College graduates also
earn higher wages than workers with only a high school diploma. This
is confirmed by United States Census Bureau data that shows that the
wages of college graduates are about 90 percent higher than the wages
of workers with only a high school diploma.
(e) To respond to the challenges of protecting California's
investment in our young people, this act will establish the
California Hope Public Trust. The California Hope Public Trust will
be funded by a transfer of state-owned property, including offices,
industrial property, warehouses, and nonenvironmentally sensitive
urban land clearly suitable for development.
(f) The California Hope Public Trust shall manage properties
transferred to it with the goal of increasing the value of its
holdings and earning revenue for the California State University
, California Community Colleges, and University of
California systems in ways consistent with its duty to provide
cost-effective real estate services and to develop high-quality,
environmentally responsible projects.
(g) The purpose of the California Hope Public Trust is to increase
revenue for higher education by developing state properties that are
currently underutilized. The California Hope Public Trust is not
intended to compete with state agencies for property management
services.
SEC. 2. Section 11011 of the Government Code is amended to read:
11011. (a) On or before December 31 of each year, each state
agency shall make a review of all proprietary state lands, other than
tax-deeded land, land held for highway purposes, lands under the
jurisdiction of the State Lands Commission, the State Coastal
Conservancy, the Department of Parks and Recreation, the Department
of Fish and Game, the Wildlife Conservation Board, and other state
conservancies, and land that has escheated to the state or that has
been distributed to the state by court decree in estates of deceased
persons, over which it has jurisdiction to determine what, if any,
land is in excess of its foreseeable needs and report thereon in
writing to the Department of General Services. These lands shall
include, but not be limited to, the following:
(1) Land not currently being utilized, or currently being
underutilized, by the state agency for any existing or ongoing state
program.
(2) Land for which the state agency has not identified any
specific utilization relative to future programmatic needs.
(3) Land not identified by the state agency within its master
plans for facility development.
(b) Jurisdiction of all land reported as excess shall be
transferred to the Department of General Services, when requested by
the Director of General Services, for sale or disposition under this
section or as may be otherwise authorized by law.
(c) The Department of General Services shall report to the
Legislature annually, the land declared excess and request
authorization to dispose of the land by sale or otherwise.
(d) The Department of General Services shall review and consider
reports submitted to the Director of General Services pursuant to
Sections 15878 and 66907.12 of this code and Section 31104.3 of the
Public Resources Code prior to recommending or taking any action on
surplus land, and shall also circulate the reports to all agencies
that are required to report excess land pursuant to this section. In
recommending or determining the disposition of surplus lands, the
Director of General Services may give priority to proposals by the
state that further the purposes of the California Hope Public Trust
(Part 11.5 (commencing with Section 15870)) or that involve the
exchange of surplus lands for lands listed in those reports.
(e) Except as otherwise provided by any other law, whenever any
land is reported as excess pursuant to this section, the Department
of General Services shall determine whether or not the use of the
land is needed by any other state agency. If the Department of
General Services determines that any land is needed by any other
state agency it may transfer the jurisdiction of this land to the
other state agency upon the terms and conditions as it may deem to be
for the best interests of the state.
(f) When authority is granted for the sale or other disposition of
lands declared excess, and the Department of General Services has
determined that the use of the land is not needed by any other state
agency, the Department of General Services shall sell the land or
otherwise dispose of the same pursuant to the authorization, upon any
terms and conditions and subject to any reservations and exceptions
as the Department of General Services may deem to be for the best
interests of the state. The Department of General Services shall
report to the Legislature annually, with respect to each parcel of
land authorized to be sold under this section, giving the following
information:
(1) A description or other identification of the property.
(2) The date of authorization.
(3) With regard to each parcel sold after the next preceding
report, the date of sale and price received, or the value of the land
received in exchange.
(4) The present status of the property, if not sold or otherwise
disposed of at the time of the report.
(g) Except as otherwise specified by law, the net proceeds
received from any real property disposition, including the sale,
lease, exchange, or other means, that is received pursuant to this
section shall be paid into the Deficit Recovery Bond Retirement
Sinking Fund Subaccount, established pursuant to subdivision (f) of
Section 20 of Article XVI of the California Constitution, until the
time that the bonds issued pursuant to the Economic Recovery Bond Act
(Title 18 (commencing with Section 99050)), approved by the voters
at the March 2, 2004, statewide primary election, are retired.
Thereafter, the net proceeds received pursuant to this section shall
be deposited in the Special Fund for Economic Uncertainties.
For purposes of this section, net proceeds shall be defined as
proceeds less any outstanding loans from the General Fund, or
outstanding reimbursements due to the Property Acquisition Law Money
Account for costs incurred prior to June 30, 2005, related to the
management of the state's real property assets, including, but not
limited to, surplus property identification, legal research,
feasibility statistics, activities associated with land use, and due
diligence.
(h) The Director of Finance may approve loans from the General
Fund to the Property Acquisition Law Money Account, which is hereby
created in the State Treasury, for the purposes of supporting the
management of the state's real property assets.
(i) Any rentals or other revenues received by the department from
real properties, the jurisdiction of which has been transferred to
the Department of General Services under this section, shall be
deposited in the Property Acquisition Law Money Account and shall be
available for expenditure by the Department of General Services upon
appropriation by the Legislature.
(j) Nothing contained in this section shall be construed to
prohibit the sale, letting, or other disposition of any state lands
pursuant to any law now or hereafter enacted authorizing the sale,
letting, or disposition.
(k) (1) The disposition of a parcel of surplus state real
property, pursuant to Section 11011.1, made on an "as is" basis 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 and to Chapter 3 (commencing with Section
21100) to Chapter 6 (commencing with Section 21165), inclusive, of
Division 13 of the Public Resources Code.
(2) If the disposition of a parcel of surplus state real property,
pursuant to Section 11011.1, is not made on an "as is" basis and
close of escrow is contingent on the satisfaction of a local
governmental land use entitlement approval requirement or compliance
by the local government with Chapter 3 (commencing with Section
21100) to Chapter 6 (commencing with Section 21165), inclusive, of
Division 13 of the Public Resources Code, the execution of the
purchase and sale agreement or of the exchange agreement by all
parties to the agreement 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.
(3) For the purposes of this subdivision, "disposition" means the
sale, exchange, sale combined with an exchange, or transfer of a
parcel of surplus state property.
SEC. 3. Part 11.5 (commencing with Section 15870) is added to
Division 3 of Title 2 of the Government Code, to read:
PART 11.5. California Hope Public Trust
CHAPTER 1. GENERAL PROVISIONS
15870. This act shall be known and may be cited as the California
Hope Public Trust.
15870.5. The California Hope Public Trust is hereby established
in state government. The trust shall be funded by transfers of
state-owned property, including offices, industrial property,
warehouses, and other lands that are not environmentally sensitive
and are clearly suitable for development. The California Hope Public
Trust shall manage properties transferred to it with the goal of
increasing the value of its holdings and earning revenue for the
California State University , California Community Colleges,
and University of California systems in ways consistent with
its duty to provide cost-effective real estate services and to
develop high-quality, environmentally responsible projects.
15871. For the purposes of this part, the following terms have
the following meanings:
(a) "Board" means the board of directors of the California Hope
Public Trust.
(b) "Bonds" means bonds, including structured, senior, and
subordinated bonds or other securities; loans; notes, including bond,
revenue, tax, or grant anticipation notes; commercial paper;
floating rate and variable maturity securities; and any other
evidences of indebtedness or ownership, including certificates of
participation or beneficial interest, asset backed certificates, or
lease-purchase or installment purchase agreements, whether taxable or
excludable from gross income for federal income taxation purposes.
(c) "Cost" as applied to a project or portion of that project
financed under this division, means all or any part of the cost of
construction, renovation, and acquisition of all lands, structures,
real or personal property, rights, rights-of-way, franchises,
licenses, easements, and interests acquired or used for a project;
the cost of demolishing or removing any buildings or structures on
land so acquired, including the cost of acquiring any lands to which
the buildings or structures may be moved; the cost of all machinery,
equipment, and financing charges; interest prior to, during, and for
a period after completion of construction, renovation, or
acquisition, as determined by the California Hope Public Trust;
provisions for working capital; reserves for principal and interest
and for extensions, enlargements, additions, replacements,
renovations, and improvements; and the cost of architectural,
engineering, financial and legal services, plans, specifications,
estimates, administrative expenses, and other expenses necessary or
incidental to determining the feasibility of any project or
incidental to the construction, acquisition, or financing of any
project.
(d) "Executive director" means the executive director of the trust
appointed pursuant to Section 15873.
(e) "Project" means the acquisition, sale, or transfer of real
property and the construction, rehabilitation, removal, and
renovation of any buildings or structures related to that property,
for the purpose of maximizing the return on the state's investment in
the property.
(f) "Revenues" means all receipts, purchase payments, loan
repayments, lease payments, and all other income or receipts derived
by the California Hope Public Trust from the sale, lease, or other
financing arrangement undertaken by the trust, its operations,
including, all receipts from a bond purchase agreement, and any
income or revenue derived from the investment of any money in any
fund or account of the trust. Revenues shall not include moneys in
the General Fund.
(g) "Trust" means the California Hope Public Trust.
15872. (a) The trust shall be governed and administered by a
board of directors, which shall consist of nine members, to be
selected as follows:
(1) Four members shall be appointed by the Governor, subject to
confirmation by the Senate, who have demonstrated expertise in real
estate, finance, and urban planning.
(2) One member shall be appointed by the Speaker of the Assembly.
(3) One member shall be appointed by the Senate Committee on
Rules.
(4) (A) The Secretary for State and Consumer Services, the
Treasurer, and the Controller shall serve as ex officio members of
the board.
(B) Each ex officio member of the board may designate a deputy,
who is employed under the member's authority, to act in his or her
place and stead on the board. While serving on the board, the deputy
may exercise the same powers that the ex officio member could
exercise if he or she were personally present.
(b) Members of the board shall serve four-year terms, except that
the members appointed by the Governor shall, upon creation of the
board, classify themselves by lot so that the terms of those members
shall expire as follows:
(1) Two members on January 1, 2015.
(2) Two members on January 1, 2017.
(c) The board shall elect a president from its membership. Four
members shall constitute a quorum for the purposes of conducting
board duties.
(d) Each member of the board shall serve without compensation but
shall be reimbursed for traveling and other expenses actually and
necessarily incurred in the performance of his or her duties.
(e) The members of the board are subject to the Political Reform
Act of 1974 (Title 9 (commencing with Section 81000)).
(f) All meetings of the board shall be subject to the requirements
of the Bagley-Keene Open Meeting Act (Article 9 (commencing with
Section 11120) of Chapter 1 of Part 1).
15873. (a) The board shall appoint and, notwithstanding Sections
19816, 19825, and 19826, fix the compensation of an executive
director, a chief investment officer, and any other investment
officer and portfolio manager whose position is designated managerial
pursuant to Section 18801.1.
(b) When fixing the compensation for any position specified in
subdivision (a), the board shall be guided by the principles
contained in Sections 19826 and 19829, consistent with the board's
responsibilities to the state to recruit and retain highly qualified
and effective employees for these positions.
(c) When a position specified in subdivision (a) is filled through
a general civil service appointment, it shall be filled from an
eligible list based on an examination held on an open basis, and
tenure in the position shall be subject to Article 2 (commencing with
Section 19590) of Chapter 7 of Part 2 of Division 5. In addition to
the causes for action specified in that article, the board may take
action under the article for any cause related to its fiduciary
responsibility to the state, including the employee's failure to meet
specified performance objectives.
(d) The trust shall be subject to Section 19050.9 and any other
requirements generally applicable to state agencies concerning
officers and employees.
15874. (a) The executive director of the trust shall be exempt
from civil service and shall be appointed by, and serve at the
pleasure of, the board.
(b) The executive director shall administer the affairs of the
trust, employ staff, be responsible to the trust for program
performance, and shall be considered the head of the department
within the meaning of Chapter 2 (commencing with Section 11150) of
Part 1.
15875. The board shall determine, by majority vote, where to
maintain its office and shall hold meetings at that office or
elsewhere upon call of the president or four members of the board.
The board shall not relocate its office more than once upon
establishment of the board's first location.
CHAPTER 2. POWERS AND DUTIES
15876. On or before March 31, 2013, and annually thereafter,
the Department of General Services shall submit to the trust a
complete and thorough inventory of all state-owned real estate and
property. The Department of General Services shall also submit to the
trust on or before March 31, 2013, an inventory of all lease
agreements between any state agency and private or nonpublic
management groups.
15877. (a) On or before January 1, 2014, and annually
thereafter, the trust shall review the inventory of state-owned
real estate and property submitted to it pursuant to Section 15876,
and determine which properties should be controlled by the trust. In
making this determination, the trust shall consider, at a minimum,
all offices, industrial property, warehouses, and nonenvironmentally
sensitive urban land clearly suitable for development, including the
properties controlled, managed, or leased by the Department of
General Services. The trust shall prepare a plan for assuming
responsibility for providing real estate services to the state
agencies and departments located in those properties and enter into
customer service agreements to provide for their space needs. The
plan shall include an estimate, on a fiscal year basis, of the net
proceeds, as defined in subdivision (b) of Section 15882, that the
trust expects to transfer pursuant to this part.
(b) On or before January 1, 2014, and annually thereafter,
the trust shall submit a request to the Legislature to enact
legislation that would authorize the trust to control any state-owned
real property that the trust determines pursuant to subdivision (a)
should be controlled by the trust.
(c) Notwithstanding subdivision (a), the trust shall not consider
for transfer any of the following real property owned by the state:
(1) Lands in the possession of the Department of Transportation
that are used for existing highways or airspace, and properties
acquired for highway projects.
(2) Lands that are part of the State Park System.
(3) Lands under the jurisdiction of the State Lands Commission.
(4) Lands in the possession of the Department of Corrections
and Rehabilitation and the California Youth Authority
Department of Corrections and Rehabilitation, Division
of Juvenile Facilities, that are used explicitly for the
incarceration of inmates.
(5) The State Capitol.
(6) Any land, building, or property determined to be of historical
or cultural significance.
(7) Any property subject to Section 1 of Article XIX of the
California Constitution.
(8) Lands under the jurisdiction of the University of California.
(9) Lands under the jurisdiction of the California State
University.
(10) Lands under the jurisdiction of the California Community
Colleges.
15878. On an annual basis, the executive director of the trust
shall report to the Director of General Services regarding land or
property classified as excess pursuant to Section 11011 and identify
that land or property that would assist the trust to effectuate its
purposes.
15879. (a) The trust shall accomplish all of the following
objectives:
(1) Generate a return on real estate holdings in the possession of
the trust.
(2) Provide land and buildings it manages and controls for the
accommodation of all state agencies, by lease or license or any other
arrangement, for their use and occupation.
(3) Fulfill an obligation to the state to provide innovative
stewardship of real property and infrastructure.
(4) Provide for the efficient and effective utilization of state
assets.
(5) Ensure that all projects undertaken by the trust satisfy
state, regional, and local land-use and environmental requirements
that apply to private sector projects.
(6) Ensure that projects undertaken by the trust meet the smart
growth principles of Executive Order D-46-01 of 2001.
(b) The trust may do all of the following:
(1) Acquire and dispose of any property, subject to
subdivision subdivisions (c) and (d)
.
(2) Construct and maintain buildings, subject to subdivision (c).
(3) Conduct studies or surveys with regard to future office space
and building needs of the state.
(4) Lease any property under the management and control of the
trust to any person or any public or private entity.
(5) Enter into joint ventures with other public or private
entities for the construction or development of buildings and land
for joint-use purposes.
(6) Acquire by purchase, rental or otherwise, equipment, fixtures,
and other property, real or personal, required for any property
managed or controlled by the trust.
(7) Accept donations of property from private donors.
(8) Approve loans or other financing for projects undertaken by
the trust.
(9) Contract with the Department of General Services for the
management and maintenance of property in the possession of the
trust.
(10) Issue revenue bonds, as provided in this part, to obtain
funds to pay the cost of projects, secure the payment of revenue
bonds and interest thereon by pledging all or part of its revenues,
rentals, and receipts, and provide for the security of the revenue
bonds and the rights of the holders thereof.
(11) Sell property owned by the trust and lease the property back
so as to generate proceeds of sale to be used for purposes of the
California Hope Public Trust , subject to subdivision (d)
.
(c) The trust shall notify the chair of the fiscal committee of
each house prior to approving the acquisition or disposition of land
and buildings pursuant to paragraph (1) of subdivision (b) or the
construction of buildings pursuant to paragraph (2) of subdivision
(b).
(d) The trust shall not sell or dispose of any land reported as
excess pursuant to Section 11011 or any surplus state real property
as defined in Section 11011.1.
15880. On or before July 1, 2015, and each year thereafter, the
trust shall report to the Legislature on the activities undertaken by
the trust. The report shall be submitted in compliance with Section
9795. The report shall include, but is not limited to, all of the
following topics:
(a) A financial statement showing the assets and liabilities of
the trust at the end of the previous fiscal year.
(b) A summary of the operations of the trust for the previous
fiscal year.
(c) A summary of the revenues and expenditures of the trust for
the previous fiscal year.
(d) A summary of net proceeds, as defined in subdivision (b) of
Section 15882. The summary shall identify which proceeds may be
allocated from the trust and which proceeds may not be allocated from
the trust. For those proceeds that may not be allocated from the
trust, the summary shall identify the proceeds by any applicable
special fund origin.
15881. (a) (1) There is hereby created the
California Hope Public Trust Fund. The trust shall, upon
appropriation by the Legislature in the annual Budget Act as set
forth in paragraph (2) , use the moneys in the fund to support
the California State University , California Community
Colleges, and University of California systems.
(2) The amount appropriated by the Legislature pursuant to this
section shall be appropriated in accordance with the following
schedule:
(A) Fifty percent to the California State University.
(B) Twenty-five percent to the University of California.
(C) Twenty-five percent to the California Community Colleges.
(b) Except as otherwise specified by law, all net proceeds
received or generated as a result of actions taken pursuant to this
part shall be paid to the California Hope Public Trust Fund
established pursuant to subdivision (a).
(c) For purposes of this section, "net proceeds" means gross
proceeds less all costs directly related to the administration of the
trust and management of state property.
(d) The trust shall account for proceeds received or generated
that are derived from real estate procured with special fund revenue.
(e) (1) It is the intent of the Legislature that moneys in the
fund not be used to enter into or renew a contract that provides for
an increase in compensation for a University of California or
California State University administrator.
(2) For purposes of this subdivision the following terms have the
following meanings:
(A) "Administrator" includes, but is not limited to, the
Chancellor of the California State University, a vice chancellor of
the university, an executive vice chancellor of the university, the
general counsel of the university, the trustees' secretary, and the
president of a campus. "Administrator" also includes, but is not
limited to, the President of the University of California; any vice
president of the university; the regents'
secretary; the treasurer of the university; the
general counsel of the university; the chancellor of each campus of
the university; all assistant chancellors, associate chancellors, and
vice chancellors of each campus of the university; all provosts and
vice provosts of each campus of the university; and the chief legal
counsel, or equivalent, of each campus of the university.
(B) "Compensation" includes salary, benefits, perquisites,
severance payments, retirement benefits, or any other form of
compensation.
(f) It is the intent of the Legislature to establish an
administrative cap on the trust once the trust becomes fully
operational.
CHAPTER 3. REVENUE BONDS
15882. (a) The trust may, from time to time, issue its revenue
bonds in the principal amount that the trust determines necessary to
provide sufficient funds to accomplish any power or duty of the trust
described in Section 15879 or as otherwise set out in this part,
including, but not limited to, the power or duty to finance the
purchase or construction of property, to establish reserves to secure
bonds, refunding previously issued bonds, and to pay other
expenditures of the trust incident to the issue or bonds or refunding
bonds.
(b) (1) Sale of the bonds of the trust shall be coordinated by the
Treasurer. To obtain a date for the sale of bonds, the trust shall
inform the Treasurer of the amount of the proposed issue. Upon that
notification, the Treasurer shall provide three 10-day periods,
within the 90 days next following, when the bonds can be sold. The
trust may choose any date during the suggested periods or any other
date to which the agency and the Treasurer have mutually agreed. The
Treasurer shall sell the bonds on the date chosen according to terms
approved by the trust.
(2) The trust shall exercise its powers with due regard for the
right of the bondholders of the trust at any time outstanding, and
nothing in, or done pursuant to, this section shall limit, restrict,
or alter the obligation or powers of the trust or any member,
officer, or representative of the trust or the Treasurer to carry out
and perform each and every covenant, agreement, or contract at any
time made or entered into on behalf of the trust with respect to its
bonds or its benefits, or the security of the bondholders.
15883. Bonds may be issued in one or more series and may be
issued as serial bonds, term bonds, or as a combination thereof. The
bonds shall be authorized by resolution of the board and shall, as
provided by the resolution, bear the date of issuance, the time of
maturity, which shall not exceed 50 years from the date of issuance,
bear the rate of interest, be payable at the time provided, be in the
denominations provided, be in the form provided, carry the
registration privileges provided, be executed in the manner provided,
be payable in lawful money of the United States, or other designated
currency, at the place provided, and be subject to any terms of
redemption or tender provided in the resolution. The bonds of the
trust shall be sold at public or private sale by the Treasurer at,
above, or below the par value, on such terms and conditions and for
such consideration in such medium of payment as the trust shall
determine by resolution prior to the sale.
15884. The trust may, from time to time, issue (a) bonds to renew
bonds and (b) other bond obligations to pay bonds including the
interest thereon, and, whenever it deems refunding expedient, to
refund any bonds by the issuance of new bonds, whether the bonds to
be refunded have or have not matured and to issue bonds partly to
refund bonds then outstanding and partly for any of its purposes.
15885. The trust may include any of the following provisions,
which shall also be included as a part of the contract with the
bondholders to be authorized, in a resolution authorizing the
issuance of bonds pursuant to this chapter:
(a) Provisions pledging all or any part of the revenues of the
trust to secure the payment of the bonds or of any particular issue
of bonds, subject to such agreements with bondholders as may then
exist and consistent with Section 1 of Article XVI of the California
Constitution.
(b) Provisions setting out the rentals, fees, purchase payments,
loan repayments, and other charges, and the amounts to be raised in
each year by those rents, and the use and disposition of the
revenues.
(c) Provisions setting aside reserves or sinking funds, or
providing for the use of subordinated classes of bonds by the trust,
and the regulation and disposition thereof.
(d) Provisions that impose limitations on the issuance of
additional bonds, the terms that additional bonds may be issued and
secured, and the refunding of outstanding bonds.
(e) Provisions that specify the procedure, if any, that the terms
of any contract with bondholders may be amended or abrogated, the
amount of bonds and the holders of those bonds that are required to
give consent to the amendment or abrogation, and the manner that the
consent of the holders of those bonds may be given.
(f) Provisions that define acts or omissions to act that
constitute a default in the duties of the trust to holders of its
obligations, and providing the rights and remedies of a trustee or of
the holders in the event of a default.
(g) Provisions that impose limitations on the trust's expenditures
for operation and administration, or other expenses.
(h) Provisions for credit enhancements, including bond insurance
or bank credit or liquidity agreements, or swaps or hedging
arrangements, and the repayment thereof.
15886. The members of the board, the executive director of the
trust, or any other person executing the notes or bonds shall not be
subject to any personal liability or accountability by reason of the
issuance of those bonds.
15887. The trust may provide that any bonds issued under this
chapter be secured by a trust agreement between the trust and a
trustee or trustees, that may include the Treasurer or any trust
company or trust having the powers of a trust company within or
without the state. The trust agreement may contain any provision
deemed necessary or appropriate by the board, including any provision
set out in Section 15885. The trust agreement, indenture, or the
resolution providing for the issuance of the bonds may pledge or
assign revenues to be received or proceeds of any contract or
contracts pledged, and may also contain any provisions necessary to
protect and enforce the rights and remedies of the bondholders.
15888. (a) Bonds issued under this chapter shall not constitute a
debt or liability of the state or of any political subdivision
thereof, other than the trust, or a pledge of the full faith and
credit of the state or any of its political subdivisions, other than
the trust, but are payable solely from the funds provided therefor
under this chapter and shall be consistent with Sections 1 and 18 of
Article XVI of the California Constitution. This subdivision shall
not preclude bond guarantees or enhancements pursuant to this part.
All bonds shall contain on the face thereof a statement to the
following effect:
"Neither the full faith and credit nor the taxing power of the
State of California or any political subdivision is pledged to the
payment of the principal of, or interest on, this bond."
(b) The issuance of bonds under this chapter shall not directly,
indirectly, or contingently obligate the state or any political
subdivision thereof to levy or to pledge any form of taxation
therefor or to make any appropriation for their payment.
15889. Any bonds issued by the trust, their transfer and any
income earned from the transfer, shall at all times be free from
taxation of every kind by the state and by all political subdivisions
of the state.
15890. The trust may obtain, prior to or after sale, a legal
opinion from private counsel as to the validity of the tax-exempt
nature of the bonds if the trust deems that it will increase the
likelihood that the bonds will be sold or the price of the bonds to
obtain that opinion.
15891. The trust may employ financial consultants, advisers, and
accountants, as may be necessary in its judgment, in connection with
the issuance and sale of any bonds of the trust. Payment for these
services may be made out of the proceeds of the sale of the bonds.
15892. Sections 10295 and 10382 of the Public Contract Code shall
not apply to any agreement entered into by the trust in connection
with the sale of bonds or notes authorized under this division.
15893. Notwithstanding any other law, bonds issued by the trust
are legal investments for all trust funds, the funds of all insurance
companies, banks, both commercial and savings, trust companies,
executors, administrators, trustees, and other fiduciaries, for state
school funds, pension funds, and for any funds that may be invested
in county, school, or municipal bonds. These bonds are securities
that may legally be deposited with, and received by, any state or
municipal officer or agency or political subdivision of the state for
any purpose for which the deposit of bonds or obligations of the
state is now, or may hereafter be, authorized by law, including,
deposits to secure public funds.
15894. This chapter shall be deemed to provide a complete,
additional, and alternative method for doing the things authorized in
its provisions, and shall be regarded as supplemental and additional
to the powers conferred by other laws. The issuance of bonds and
refunding bonds under this chapter shall comply with any other law
applicable to the issuance of bonds including, but not limited to,
Division 13 (commencing with Section 21000) of the Public Resources
Code. Except as otherwise provided in this chapter, the financing of
a project pursuant to this article shall not exempt a project from
any requirement of law which otherwise would be applicable to the
project.
15895. To the extent that this part, with respect to the
financing of projects, is inconsistent with any general statute or
special act or parts thereof, this part shall be deemed controlling.
CHAPTER 4. REPEAL DATE REPEAL DATE
15896. This part shall be repealed on January 1, 2019, unless
legislation is enacted that becomes effective on or before January 1,
2019, to transfer to the trust pursuant to Section 15877, management
and control of any or all of the state-owned real estate that the
trust recommends for transfer. At the time of the transfer, the trust
shall assume from the Department of General Services responsibility
for providing real estate services to the state agencies and
departments located in those properties, including planning of future
projects.
SEC. 4. Section 54221 of the Government Code is amended to read:
54221. (a) As used in this article, the term "local agency" means
every city, whether organized under general law or by charter,
county, city and county, and district, including school districts of
any kind or class, empowered to acquire and hold real property.
(b) As used in this article, the term "surplus land" means land
owned by any local agency, that is determined to be no longer
necessary for the agency's use, except property being held by the
agency for the purpose of exchange.
(c) As used in this article, the term "open-space purposes" means
the use of land for public recreation, enjoyment of scenic beauty, or
conservation or use of natural resources.
(d) As used in this article, the term "persons and families of low
or moderate income" means the same as provided under Section 50093
of the Health and Safety Code.
(e) As used in this article, the term "exempt surplus land" means
either of the following:
(1) Surplus land that is transferred pursuant to Section 25539.4.
(2) Surplus land that is (A) less than 5,000 square feet in area,
(B) less than the minimum legal residential building lot size for the
jurisdiction in which the parcel is located, or 5,000 square feet in
area, whichever is less, or (C) has no record access and is less
than 10,000 square feet in area; and is not contiguous to land owned
by a state or local agency that is used for park, recreational,
open-space, or low- and moderate-income housing purposes and is
located neither within an enterprise zone pursuant to Section 7073
nor a designated program area as defined in Section 7082. If the
surplus land is not sold to an owner of contiguous land, it is not
considered exempt surplus land and is subject to this article.
(f) Notwithstanding subdivision (e), the following properties are
not considered exempt surplus land and are subject to this article:
(1) Lands within the coastal zone.
(2) Lands within 1,000 yards of a historical unit of the State
Parks System.
(3) Lands within 1,000 yards of any property that has been listed
on, or determined by the State Office of Historic Preservation to be
eligible for, the National Register of Historic Places.
(4) Lands within the Lake Tahoe region as defined in Section
66905.5.
(5) Lands transferred to the California Hope Public Trust pursuant
to a statute implementing Part 11.5 (commencing with Section 11870)
of Division 3 of Title 2.
