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AB-1977 State real property: surplus.(2017-2018)

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Date Published: 04/03/2018 04:00 AM
AB1977:v98#DOCUMENT

Amended  IN  Assembly  April 02, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1977


Introduced by Committee on Accountability and Administrative Review

January 31, 2018


An act to amend Section 15854.1 of the Government Code, relating to state government. real property, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 1977, as amended, Committee on Accountability and Administrative Review. State government: property acquisition. real property: surplus.
(1) Existing law provides that the Director of General Services may dispose of surplus state real property where that property is not needed by another state agency and the Legislature has authorized disposal of the property. Existing law also specifies the manner in which the department is to dispose of surplus state real property.
This bill would authorize the director to dispose of a specified state property pursuant to these provisions, subject to conditions specified in the act relating to the approval of the agreement.
(2) The California Constitution requires that the proceeds from the sale of surplus state property be used to pay the principal and interest on bonds issued pursuant to the Economic Recovery Bond Act, until the principal and interest on those bonds are fully paid, the final payment of which was made in the 2015–16 fiscal year, after which these proceeds are required to be deposited into the Special Fund for Economic Uncertainties, a continuously appropriated fund.
By increasing the amount transferred into the Special Fund for Economic Uncertainties, a continuously appropriated fund, this bill would make an appropriation.

The Property Acquisition Law requires that all real property and interests in real property to be acquired by or for any state agency, with specified exceptions, be acquired by the State Public Works Board. Existing law allows the State Public Works Board to enter into payment agreements, including agreements that provide for interest payments, with the owner of property to be acquired.

This bill would require the State Public Works Board to, by January 1, 2020, and annually on that date thereafter, submit a report to the Legislature describing any payment agreement or interest payment resulting from a property acquisition.

Vote: MAJORITY2/3   Appropriation: NOYES   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 (a) The Director of General Services may sell, exchange, sell combined with an exchange, or lease for fair market value, upon those terms and conditions as the Director of General Services determines are in the best interests of the state, all or any part of the following real property pursuant to Section 11011.1 of the Government Code:
A property, consisting of approximately 0.61 acres and improvements, known as a portion of the Department of General Services’ Santa Ana State Building, located at 605 West Santa Ana Boulevard, in Santa Ana, Orange County.
(b) To the extent that bonds issued by the State Public Works Board that involve the property to be sold pursuant to this section are outstanding at the time the purchase, lease, or exchange agreement for the property identified in this section is ready for execution, the board shall approve the purchase, lease, or exchange agreement and all costs associated with the defeasance of the bonds shall be paid from the proceeds from the transaction.
SECTION 1.Section 15854.1 of the Government Code is amended to read:
15854.1.

At the request of the owner of property acquired pursuant to this part, the board may enter into an agreement with the owner specifying the manner of payment of compensation to which the owner is entitled as the result of the acquisition. The agreement may provide that the compensation shall be paid by the board to the owner over a period not to exceed 10 years from the date the owner’s right to compensation accrues. The agreement may also provide for the payment of interest by the board; however, the rate of interest agreed upon may not exceed the maximum rate authorized by Section 16731 or 53531 of the Government Code, as applicable, in connection with the issuance of bonds. The board shall, by January 1, 2020, and annually on that date thereafter, submit a report to the Legislature describing any payment agreement or interest payment resulting from the acquisition. The report required to be submitted pursuant to this section shall be submitted in compliance with Section 9795.