LEGISLATIVE COUNSEL'S DIGEST


AB 22, as amended, Evans. Budget Act of 2009.
State property: Orange County Fair: inventory: leases: sale and
leaseback.
(1) Existing law provides that the state is divided into
agricultural districts within the boundaries of which district
agricultural associations may be formed. Existing law provides that
District 32 is the County of Orange.
This bill would create District 32a, which would consist of all of
that real property that is a portion of District 32 that is commonly
known as the Orange County Fair located in the City of Costa Mesa,
and would prescribe certain matters applicable to officers of
District 32 and District 32a. The bill would, among other things, (A)
authorize the Department of General Services to sell all or any
portion of the real property that composes District 32a pursuant to a
public bidding process, as provided; (B) prohibit District 32a from
entering into any contract, lease, or other agreement affecting the
use or operation of that real property for a period that exceeds 3
months; (C) require those contracts, leases, or agreements to contain
a certain cancellation notice; (D) authorize the department to be
reimbursed for reasonable costs or expenses; (E) authorize bonds
involving District 32a property to be paid from the proceeds of any
sale or lease of District 32a property; (F) require the Director of
General Services to report specified information to the chairs of the
fiscal committees of the Legislature 30 days prior to executing a
transaction for the sale of the real property; (G) require the
director to include a reservation to the state of mineral rights in
the sale of the real property; (H) require the net sale proceeds to
be deposited into the District 32a Disposition Fund, which the bill
would create in the State Treasury; and (I) require the department to
report annually to the Legislature on the status of the sale of the
real property.
This bill would require District 32a to be abolished and all funds
in the District 32a Disposition Fund to be transferred to the
General Fund upon sale of all property that composes District 32a.

(2) Existing law requires the Department of General Services to
offer for sale land that is declared excess or is declared surplus by
the Legislature, and that is not needed by any state agency, to
local agencies and private entities and individuals, subject to
specified conditions. Existing law also authorizes the Director of
General Services, with the consent of the state agency involved, to
let for a period not to exceed 5 years, any real or personal property
that belongs to the state, subject to specified conditions. Any
money received in connection with these leases is required to be
deposited in the Property Acquisition Law Money Account and be
available to the Department of General Services upon appropriation by
the Legislature.
This bill would authorize the Department of General Services to
lease specified real property without certain existing restrictions,
if the Director of General Services determines that the real property
is of no immediate need to the state but may have a potential future
use. This bill would require the Department of General Services to
annually report to the Legislature on certain leases entered into
under the authority of these provisions. The bill would also specify
procedures for the reimbursement of costs incurred pursuant to
entering into a lease under these provisions and require the
Department of Finance to deposit, into the General Fund, the net
proceeds of a lease after the reimbursement of those costs.

This bill would authorize the Department of General Services to
enter into a sale or long-term lease of certain listed properties,
including entering into an option to repurchase that property or
building. The bill would authorize the Department of General Services
to sell real property or buildings if the proceeds of the sale would
be used to defense or otherwise retire lease revenue bonds only if
the issuer and trustee for the bonds approves the sales transaction.
The bill would require the Director of General Services to make an
annual report, on or before June 30 of each year, to the fiscal
committees of the Legislature regarding the prior year's sales and
leases pursuant to these provisions and at least 30 days prior to
entering into any sale or lease pursuant to these provisions. If the
proceeds of the sale would be used to defease or retire the bonds,
those proceeds would be appropriated to the Department of General
Services for that purpose.
The bill would specify procedures for the reimbursement of costs
incurred pursuant to these provisions. The Department of Finance
would be required to deposit, in the General Fund, the net proceeds
of a sale or lease after the reimbursement of certain costs.

(3) Existing law requires each agency, as defined, to furnish the
Department of General Services with a record of each parcel of real
property it possesses and to update its real property holdings,
reflecting any changes, by July 1 of each year, including specified
information regarding project uses during the next 3 years.

This bill would define terms for purposes of this requirement and
would require the update of the real property holdings to include
additional information regarding specific programmatic uses, whether
the property is fully utilized, partially utilized, or excess with
regard to an existing or ongoing program of the agency, agreements
relating to the use of the property, and projected future uses during
the next 5 years, as identified pursuant to the 5-year
infrastructure plan, the agency's master plan, or as specified. The
bill would require the head of each agency to make a specified annual
certification and would require the Department of General Services
to maintain the certification notices on its Internet Web site.

(4) The California Environmental Quality Act (CEQA) requires a
lead agency to prepare, or cause to be prepared, and certify the
completion of, an environmental impact report on a project that it
proposes to carry out or approve that may have a significant effect
on the environment or to adopt a negative declaration if it finds
that the project will not have that effect. CEQA generally requires a
lead agency to prepare a mitigated negative declaration for a
project that may have a significant effect on the environment if
revisions in the project would avoid or mitigate that effect and
there is no substantial evidence that the project, as revised, would
have a significant effect on the environment. CEQA also provides some
exemptions from its requirements for specified projects.
This bill would exempt the sale, lease, or repurchase of the
Orange County Fair or specified state real property or buildings
subject to the bill that is made on an "as is" basis from designated
provisions of CEQA. The bill would also exempt from those provisions
of CEQA the execution of the purchase and sale agreement or the
exchange agreement for this property or these buildings if the
disposition is not made on an "as is" basis and the close of escrow
is contingent on a specified requirement and compliance with CEQA.

(5) This bill would state the Legislature's finding and
declaration that specified provisions apply to every transaction
undertaken pursuant to the authority of this act.
(6) The bill would authorize the Director of Finance to provide a
loan from the General Fund in the amount of not more than $10,000,000
to augment Item 1760-001-0002 of Section 2 of the Budget Act of 2009
and to adjust the amounts appropriated in Item 1760-001-0002 of
Section 2 of the Budget Act of 2009, for the purposes of supporting
the management of the state's real property assets to implement the
bill, thereby making an appropriation.
(7) The California Constitution authorizes the Governor to declare
a fiscal emergency and to call the Legislature into special session
for that purpose. The Governor issued a proclamation declaring a
fiscal emergency, and calling a special session for this purpose, on
July 1, 2009.
This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on July 1, 2009,
pursuant to the California Constitution.
(8) This bill would declare that it is to take effect immediately
as an urgency statute.
This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2009.

The California Constitution authorizes the Governor to declare a
fiscal emergency and to call the Legislature into special session for
that purpose. The Governor issued a proclamation declaring a fiscal
emergency, and calling a special session for this purpose, on July 1,
2009.
This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on July 1, 2009,
pursuant to the California Constitution.

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