Bill Text: CA SB944 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Surplus state property.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2014-09-20 - Chaptered by Secretary of State. Chapter 515, Statutes of 2014. [SB944 Detail]

Download: California-2013-SB944-Introduced.html

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BILL NUMBER: SB 944	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Torres

                        FEBRUARY 5, 2014

   An act to amend Section 11011.1 of the Government Code, relating
to state government.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 944, as introduced, Torres. Surplus state property.
   Existing law requires the Department of General Services to
dispose of surplus state real property in a specified manner,
including, but not limited to, prescribing the priority of
disposition of the property before the department offers it for sale
to private entities or individuals.
   This bill would make technical, nonsubstantive changes to these
provisions.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 11011.1 of the Government Code is amended to
read:
   11011.1.  (a) Notwithstanding any other  provision of
 law, except Article 8.5 (commencing with Section 54235) of
Chapter 5 of Part 1 of Division 2 of Title 5, the disposal of surplus
state real property by the Department of General Services 
shall be   is  subject to the requirements of this
section. For purposes of this section, "surplus state real property"
means real property declared surplus by the Legislature and directed
to be disposed of by the Department of General Services, including
any real property previously declared surplus by the Legislature but
not yet disposed of by the Department of General Services prior to
the enactment of this section.
   (b) (1) The department may dispose of surplus state real property
by sale, lease, exchange, a sale combined with an exchange, or other
manner of disposition of property, as authorized by the Legislature,
upon any terms and conditions and subject to any reservations and
exceptions the department deems to be in the best interests of the
state.
   (2) (A) The Legislature finds and declares that the provision of
decent housing for all Californians is a state goal of the highest
priority. The disposal of surplus state real property is a direct and
substantial public purpose of statewide concern and will serve an
important public purpose, including mitigating the environmental
effects of state activities. Therefore, it is the intent of the
Legislature that priority be given, as specified in this section, to
the disposal of surplus state real property to housing for persons
and families of low or moderate income, where land is suitable for
housing and there is a need for housing in the community.
   (B) Surplus state real property that has been determined by the
department not to be needed by any state agency shall be offered to
any local agency, as defined in subdivision (a) of Section 54221, and
then to nonprofit affordable housing sponsors,  prior to
  before  being offered for sale to private
entities or individuals. As used in this subdivision, "nonprofit
affordable housing sponsor" means any of the following:
   (i) A nonprofit corporation incorporated pursuant to Division 2
(commencing with Section 5000) of Title 1 of the Corporations Code.
   (ii) A cooperative housing corporation which is a stock
cooperative, as defined by Section 11003.2 of the Business and
Professions Code.
   (iii) A limited-dividend housing corporation.
   (C) The department, subject to this section, shall maintain a list
of surplus state real property in a conspicuous place on its
Internet Web site. The department shall provide local agencies and,
upon request, members of the public, with electronic notification of
updates to the list of properties.
   (D) To be considered as a potential priority buyer of the surplus
state real property, a local agency or nonprofit affordable housing
sponsor shall notify the department of its interest in the surplus
state real property within 90 days of the department posting on its
Internet Web site the notice of the availability of the surplus state
real property. The local agency or nonprofit affordable housing
sponsor shall demonstrate, to the satisfaction of the department,
that the surplus state real property, or portion of that surplus
state real property, is to be used by the local agency or nonprofit
affordable housing sponsor for open space, public parks, affordable
housing projects, or development of local government-owned
facilities. When more than one local agency expresses an interest in
the surplus state real property, priority shall be given to the local
agency that intends to use the surplus state real property for
affordable housing. If no agreement or transfer of title occurs, the
priority shall next be given to the local agency that intends to use
the surplus state real property for open space, public parks, or
development of local government-owned facilities. The sales agreement
shall be executed by the local agency or nonprofit affordable
housing sponsor within 60 days after the director determines the
local agency or nonprofit affordable housing sponsor is to receive
the surplus state real property. The sale of the surplus state real
property to a local agency or nonprofit affordable housing sponsor
pursuant to this section shall be completed, and title transferred,
within 60 days of the date the department executes the sales
agreement, or, if required by law, no later than 60 days after the
State Public Works Board has authorized the sale. If the sale of a
surplus state real property to a local agency or nonprofit affordable
housing sponsor is not completed within the timeframe specified in
this subparagraph, then the department shall proceed with the process
for disposal to other private entities or individuals.
   (c) (1) If more than one local agency desires the surplus state
real property for use as an open space, a public park, or the
development of a local government-owned facility, the department
shall transfer the surplus state real property to the local agency
offering the highest price above fair market value. If more than one
local agency desires the surplus state real property for use as an
affordable housing project, the department shall transfer the surplus
state real property to the local agency offering the greatest number
of affordable housing units. If more than one nonprofit affordable
housing sponsor desires the surplus state real property for use as an
affordable housing project, the department shall transfer the
surplus state real property to the nonprofit affordable housing
sponsor offering the greatest number of affordable housing units.
   (2) If no local agency or nonprofit affordable housing sponsor is
interested, or an agreement, as provided above, is not reached, then
the disposal of the surplus state real property to private entities
or individuals shall be pursuant to a public bidding process designed
to obtain the highest most certain return for the state from a
responsible bidder, and any transaction based on such a bidding
process shall be deemed to be the fair market value for the purposes
of the reporting requirements pursuant to subdivision (d).
   (3) Notwithstanding any other  provision of  law,
the department may sell surplus state real property, or a portion of
surplus state real property, to a local agency, or to a nonprofit
affordable housing sponsor if no local agency is interested in the
surplus state real property, for affordable housing projects at a
sales price less than fair market value if the department determines
that such a discount will enable the provision of housing for persons
and families of low or moderate income. Nothing shall preclude a
local agency that purchases the surplus state real property for
affordable housing from reconveying the surplus state real property
to a nonprofit affordable housing sponsor for development of
affordable housing. Transfer of title to the surplus state real
property or lease of the surplus state real property for affordable
housing shall be conditioned upon continued use of the surplus state
real property as housing for persons and families of low and moderate
income for at least 40 years and the department shall record a
regulatory agreement that imposes affordability covenants,
conditions, and restrictions on the surplus state real property. The
regulatory agreement shall be a first priority lien on the surplus
state real property and last for a period of at least 40 years, and
if another state agency is lending funds for a project, a combined
regulatory agreement shall be utilized. Notwithstanding any other
provision of law, the regulatory agreement shall not be subordinated
to any other lien or encumbrance except for any federal loan program
the statutes or regulations of which require a first priority lien
for that federal loan.
   (4) Notwithstanding any other  provision of  law,
the Director of General Services may transfer surplus state real
property to a local agency for less than fair market value if the
local agency uses the surplus state real property for parks or
open-space purposes. The deed or other instrument of transfer shall
provide that the surplus state real property would revert to the
state if the use changed to a use other than parks or open-space
purposes during the period of 25 years after the transfer date. For
the purpose of this paragraph, "open-space purposes" means the use of
land for public recreation, enjoyment of scenic beauty, or
conservation or use of natural resources.
   (d) Thirty days prior to executing a transaction for a sale,
lease, exchange, a sale combined with an exchange, or other manner of
disposition of the surplus state real property for less than fair
market value or for affordable housing, or as authorized by the
Legislature, the Director of General Services shall report to the
chairpersons 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 surplus state real
property and the terms listed in paragraph (1).
   (3) The basis for agreeing to terms and conditions other than fair
market value.
   (e) As to surplus state real property sold or exchanged pursuant
to this section, the director shall except and reserve to the state
all mineral deposits, as described in Section 6407 of the Public
Resources Code, together with the right to prospect for, mine, and
remove the deposits. If, however, the director 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 surplus state real property conveyed
that the director determines to be reasonably necessary for the
removal of the deposits.
   (f) The failure to comply with this section, except for
subdivision (d), shall not invalidate the transfer or conveyance of
surplus state real property to a purchaser for value.
   (g) For purposes of this section, fair market value is established
by an appraisal and economic evaluation conducted by the department
or approved by the department.