The amendment specifically allows state agencies to engage local brokers for the sale of surplus properties when appropriate, streamlining the sale process and potentially leading to increased efficiency. Furthermore, any sale concluded through a broker will be documented and reported, reinforcing accountability and transparency concerning state property transactions. This provision aims to make better use of state resources and improve the disposition of surplus properties.
Assembly Bill 2825, introduced by Assembly Member Petrie-Norris, seeks to amend Section 11011.5 of the Government Code regarding the disposition of surplus state property. The bill clarifies that when there is no demand from state agencies or public entities for specific surplus state-owned real property, designated state agencies may hire local licensed real estate brokers for the sale of that property. This process is conditioned on the approval of the Department of General Services to ensure that employing a broker would result in a cost-saving for the state. The brokerage commission will only be paid from the proceeds of the sale.
While the bill mostly introduces nonsubstantive changes to enhance procedural clarity, it does spark discussions regarding the transparency and fairness of non-competitive bidding practices in the sale of state property. Concerns may arise related to the selection criteria and practices in hiring brokers. Advocacy groups could question whether local brokers always provide the best possible service or value, especially if there's a predisposition towards certain firms. Thus, while the bill promotes localized decision-making, it also raises opportunities for oversight and ensuring competitive practices are upheld.