California Senate Bill SB256 Amended / Bill

 BILL NUMBER: SB 256AMENDED BILL TEXT AMENDED IN SENATE MAY 21, 2009 INTRODUCED BY Senator Aanestad FEBRUARY 24, 2009 An act to add Section 14673.3 to the Government Code, relating to state property  , and making an appropriation therefor  . LEGISLATIVE COUNSEL'S DIGEST SB 256, as amended, Aanestad. State property: Department of the California Highway Patrol. Existing law authorizes the Director of General Services to acquire and convey real property for the state, whenever that transfer of the real property is authorized or contemplated by law. This bill would authorize the director to sell, lease, exchange, or any combination thereof  , all or a portion of the Fir Street Property,  approximately 1.69 acres of real property in the City of Chico, currently used by the Department of the California Highway Patrol as its Chico area office, that is specifically declared not to be surplus to the needs of the state.  The bill would also authorize the director to use the proceeds of any sale, lease, exchange, or any combination thereof of all or a portion of the Fir Street Property to acquire the   land and facilities necessary to provide a substitute location for the Chico area office of the Department of the California Highway Patrol capable of accommodating its presently necessary and future expansion, thereby making an appropriation.  The bill would require the director to initially offer the  real property   Fir Street Property  for disposition to the City of Chico. The bill would authorize the director to offer the  real property   Fir Street Property  to the public through a competitive selection process determined by the director to be in the best interest of the state, if the City of Chico is unable to enter an agreement for the disposition of the  real property   Fir Street Property  . The bill would  also authorize the director to enter into one or more agreements or leases for the purpose of providing a substitute location for the Chico area office capable of accommodating its presently necessary and future expansion   also require the Department of General Services to obtain approval from the Department of Finance prior to the execution of any disposition agreement regarding the Fir Street Property, and to notify the Chair of the Senate Committee on Appropriations, the Chair of the Assembly Committee on Appropriations, and the Chair of the Joint Legislative Budget Committee, or his or her designee, in writing of the director's intention to enter into a lease or an agreement, not less than the minimum time that the Chair   of the Joint Legislative Budget Committee may in each instance determine  . Vote:  majority   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 14673.3 is added to the Government Code, to read: 14673.3. (a) The Legislature finds and declares all of the following: (1) The state owns approximately 1.69 acres of real property located at 995 Fir Street in the City of Chico, currently used by the Department of the California Highway Patrol as its Chico area office. (2) For the purposes of this section, the real property described in paragraph (1) shall be referred to as the "Fir Street Property." (3) The Chico area office of the department has outgrown the facilities on the Fir Street Property, and relocating the operations of the Chico area office to a location that will accommodate presently necessary and future expansion will better protect the health and safety of the residents of the state. (4) The Fir Street Property may be sold, exchanged, leased, or any combination thereof  and the proceeds used to carry out the intent of the Legislature to provide a substitute location for the Chico area office of the Department of the California Highway Patrol capable of accommodating its presently necessary and future expansion  . (5) Because the subject property is unsuitable to the needs of the state rather than surplus, the Legislature hereby finds and declares that the disposition of the Fir Street Property authorized by this section does not constitute a sale or other disposition of surplus state property within the meaning of Section 9 of Article III of the California Constitution and shall not be subject to subdivision (g) of Section 11011. (b) The Director of General Services may sell, exchange, lease, or any combination thereof, all or a portion of the Fir Street Property.  The director shall use the proceeds of any sale, exchange, lease, or any combination thereof made pursuant to this subdivision to acquire the land and facilities described in subdivision (g) to provide a substitute location for the Chico area office of the Department of the California Highway Patrol capable of accommodating its presently necessary and future expansion.  (c) The director shall initially offer the Fir Street Property for disposition, pursuant to the authorization described in subdivision (b), to the City of Chico. If the City of Chico is unable to enter into an agreement for the disposition of the Fir Street Property, the director may offer the Fir Street Property for disposition, as described in subdivision (b), to the public through a competitive selection process determined by the director to be in the best interest of the state. (d) Any exchange, lease, or sale of properties carried out pursuant to this section shall be for no less than fair market value, as determined by an independent appraisal or pursuant to a competitive selection process. Compensation for the Fir Street Property may include land, or a combination of land, improvements, and money. (e) The Department of General Services shall be reimbursed for any reasonable cost or expense incurred for the transactions described in this section from the proceeds of the sale, lease, exchange, or combination thereof of the Fir Street Property. (f) For the purposes of this section, the Fir Street Property shall not be subject to the provisions of Section 11011.1 or Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5. (g)  (1)    The director may enter into one or more agreements or leases for the purpose of providing a substitute location for the Chico area office of the Department of the California Highway Patrol capable of accommodating its presently necessary and future expansion.  (2) Upon appropriation by the Legislature, the director shall use the proceeds of any sale, exchange, lease, or combination thereof made pursuant to subdivision (b) to relocate and expand the operations of the Chico area office of the Department of the California Highway Patrol.   (h) (1) Any funds received from the sale, exchange, lease, or any combination thereof, of all or a portion of the Fir Street Property authorized by this section shall be held in trust and used only for the acquisition, lease, lease-purchase, lease with an option to purchase, or lease-purchase finance of the land and facilities identified in subdivision (g) and are hereby appropriated to the Department of General Services for expenditure for the purposes of this subdivision.   (2) For the purposes of this section, the terms "lease" or "leases" mean a lease or the selection and acquisition of a lease-purchase, lease-purchase finance, or lease with an option to purchase.   (h)   (i)  Notwithstanding Section 14669, if the City of Chico fails to enter into an agreement for the disposition of the Fir Street Property, the Department of General Services shall advertise the availability of the Fir Street Property and award the sale, lease, exchange, or any combination thereof, all or a portion of the Fir Street Property to the proposer offering to provide a building or buildings that meet the state's requirements if the director determines that the sale, lease, exchange, or any combination thereof to be in the best interest of the state. The director may also lease all or part of the Fir Street Property for a period not to exceed 66 years.  (i)   (j)  (1) The Department of General Services shall develop the terms and conditions of any disposition agreement regarding the Fir Street Property, and provide them to the Department of Finance for review prior to soliciting bids. (2) The Department of General Services shall obtain approval from the Department of Finance prior to the execution of any disposition agreement regarding the Fir Street Property.  (3) The Department of General Services shall notify the Chair of the Senate Committee on Appropriations, the Chair of the Assembly Committee on Appropriations, and the Chair of the Joint Legislative Budget Committee, or his or her designee, in writing of the director' s intention to enter into a lease or an agreement, not less than the minimum time that the Chair of the Joint Legislative Budget Committee, or his or her designee, may in each instance determine.