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

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-Amended.html

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BILL NUMBER: SB 944	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 12, 2014

INTRODUCED BY   Senator Torres

                        FEBRUARY 5, 2014

   An act to amend  Section   Sections 
11011.1  and 11011.15  of the Government Code, relating to
state government.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 944, as amended, 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.  Existing law declares that
the provision of decent housing for all Californians is a state goal
of the highest priority and that priority be given to the disposal of
surplus state real property to housing for persons and families of
low or moderate income. 
   This bill would  make technical, nonsubstantive changes to
these provisions.   add to those goals the creation of
sustainable jobs and state the intent that priority be given to the
disposal of surplus state real property to the development of
projects that create sustainable employment opportunities of benefit
to the area and region where the property is located. This bill
would, notwithstanding any other law, prohibit a local government
from rezoning state real property within its jurisdiction that is
declared surplus or identified as unused, underutilized, partially
utilized, or excess, unless the Department of General Services
requests that the property be rezoned or approves the rezoning. This
bill would also make technical, nonsubstantive changes to these
provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . 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 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 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
  and the creation of sustainable jobs are state goals
 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.   community, and to
the development of projects that create sustainable employment
opportunities of benefit to the area and region where the property is
located. 
   (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, 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   If  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 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 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.
   SEC. 2.    Section 11011.15 of the  
Government Code   is amended to read: 
   11011.15.  (a) The Department of General Services shall maintain a
complete and accurate statewide inventory of all real property held
by the state and categorize that inventory by agency and geographical
location. The inventory shall include all information furnished by
agencies pursuant to subdivision (b) and the University of California
pursuant to Section 11011.17. The inventory shall be updated
annually.
   (b) Each agency shall furnish the department, in the format
specified by the department, a record of each parcel of real property
that it possesses. Each agency shall update its real property
holdings through December 31 of the previous year, reflecting any
changes, by July 1 of each year. This record shall include, but is
not limited to, all of the following information:
   (1) The location of the property within the state and the county,
the size of the property, including its acreage, and any other
relevant property data which the department deems necessary. This
latter requirement shall be uniformly applied to all agencies.
   (2) The date of the acquisition of the real property, if
available.
   (3) The manner in which the property was acquired and the purchase
price, if available.
   (4) A detailed description of the current uses of the property,
including specific programmatic uses, and whether the property is
fully utilized, partially utilized, or excess, with regard to either
an existing or ongoing program of the agency. The agency shall also
provide a detailed description of every lease, license, or other
agreement relating to the use of the property.
   (5) Any projected future uses of the property during the next five
years, as identified pursuant to the five-year infrastructure plan
or the agency's master plan. If the property is not included in the
five-year infrastructure plan or the agency's master plan, or is
identified as partially utilized or excess pursuant to paragraph (4),
the agency shall provide detailed information regarding the need to
continue ownership or management of the property. In the case of land
held for state park use, for which the projected use would exceed a
five-year period, the projected use and estimated date of
construction or use shall be furnished.
   (6) A concise description of each major structure located on the
property.
   (7) The estimated value of real property declared surplus by the
agency and real property where the agency has not identified a
current or potential use.
   (c) The department shall prepare a separate report and shall
update the report annually of all properties declared surplus or
properties with no identified current or projected use. The report
shall be made available upon request.
   (d) The head of each agency shall also certify, on or before July
1 annually, that the agency has accurately and completely reported
all property information required by this section and that it has
identified any excess property pursuant to Section 11011. The
Department of General Services shall maintain the certification
notices in a conspicuous place on its Internet Web site. 
   (e) Notwithstanding any other law, a local government that has
state real property within its jurisdiction that is declared surplus
or identified as unused, underutilized, partially utilized, or excess
pursuant to this section, or Section 11011, shall not rezone the
property, unless the Department of General Services requests that the
property be rezoned or approves the rezoning of the property.