Bill Text: CA SB1 | 2011-2012 | Regular Session | Amended

California Senate Bill 1 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: State Race Track Leasing Commission.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-08-29 - Chaptered by Secretary of State. Chapter 216, Statutes of 2012. [SB1 Detail]

Download: California-2011-SB1-Amended.html

BILL NUMBER: SB 1	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 4, 2012

INTRODUCED BY   Senator Kehoe

                        DECEMBER 6, 2010

   An act to  add Sections 3873.1 and 3873.2 to 
 amend Section 4351 of  the Food and Agricultural Code,
relating to  agricultural districts, and making an
appropriation therefor   the State Race Track Leasing
Commission  .


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1, as amended, Kehoe.  22nd District Agricultural
Association: Del Mar Race Track and Fairgrounds: sale of state
property.   State Race Track Leasing Commission. 

   Existing law establishes the State Race Track Leasing Commission
and authorizes the commission to enter into leases or other
agreements for the use of the Del Mar Race Track and any other
property owned or controlled by the 22nd District Agricultural
Association that the commission deems necessary to provide horse
racing at Del Mar Race Track. Existing law repeals the commission on
January 1, 2013.  
   This bill would delete the repeal date, thereby indefinitely
extending the existence of the commission.  
   Existing law provides that the state is divided into agricultural
districts in which 50 or more persons, who are residents of a
district, may form a district agricultural association for specified
purposes, including holding fairs and constructing, maintaining, and
operating recreational facilities. Existing law provides that
District 22 is the County of San Diego.  
   Existing law authorizes the Director of General Services to
dispose of surplus state property, subject to specified conditions,
including that the net proceeds of the sale be paid into the Deficit
Recovery Bond Retirement Sinking Fund Subaccount, which is a
continuously appropriated fund.  
   This bill would create District 22a, which would consist of all of
that real property and personal property that is a portion of
District 22 that is commonly known as the Del Mar Race Track and
Fairgrounds located in the City of Del Mar and certain other property
in the City of San Diego, and would prescribe certain matters
applicable to officers of the 22nd District Agricultural Association
and the District 22a Agricultural Association. The bill would, among
other things, authorize the Department of General Services to sell
all or any portion of the real property that comprises District 22a
and related personal property to the City of Del Mar and require the
net sale proceeds to be deposited into the District 22a Disposition
Fund, which the bill would create in the State Treasury. 

   This bill would require, upon sale of all property that comprises
District 22a, that District 22a be abolished and that all funds in
the District 22a Disposition Fund ultimately be deposited into the
Deficit Recovery Bond Retirement Sinking Fund Subaccount, a
continuously appropriated fund, thereby resulting in an
appropriation. 
   Vote: majority. Appropriation:  yes   no
 . Fiscal committee: yes. State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 4351 of the   Food and
Agricultural Code   is amended to read: 
   4351.   (a)    There is hereby
created the State Race Track Leasing Commission which shall be
composed of the Director of Food and Agriculture, the Director of
Finance, and the Director of General Services and three individuals,
appointed by the Governor, who are members of the Board of Directors
of the 22nd District Agricultural Association. The Director of
Finance shall serve as chairperson of the commission. All meetings of
the commission shall be open and public. 
   (b) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.  
  SECTION 1.    Section 3873.1 is added to the Food
and Agricultural Code, to read:
   3873.1.  (a) There is hereby created District 22a, which consists
of all of that real property and any personal property that is a
portion of District 22 that is commonly known as the Del Mar Race
Track and Fairgrounds located in the City of Del Mar and that real
property in the City of San Diego with parcel numbers 299-042-01,
299-042-02, 302-090-11, and 304-020-17. Notwithstanding any other
law, any officer of the District 22a Agricultural Association may
also be an officer of the 22nd District Agricultural Association and
shall be a resident of District 22.
   (b) The Department of General Services is authorized to transfer
title of the property described in subdivision (a) to the District
22a Agricultural Association, and the 22nd District Agricultural
Association shall cooperate in this transfer.
   (c) District 22a and the District 22a Agricultural Association
shall be the successors to District 22 and the 22nd District
Agricultural Association. All rights and obligations of the 22nd
District Agricultural Association as it relates to the real property
and personal property of the 22nd District Agricultural Association
shall be transferred to the District 22a Agricultural Association
pursuant to this section.
   (d) Notwithstanding Chapter 9 (commencing with Section 4351), the
State Race Track Leasing Commission shall not enter into any
agreement, lease, or contract for the use of the Del Mar Race Track
or any other property owned or controlled by the 22nd District
Agricultural Association or the District 22a Agricultural Association
unless the agreement, lease, or contract is terminable or assignable
at the option of the Department of General Services, and at no cost
or liability to the State of California, its agencies and
departments, the 22nd District Agricultural Association, and the
District 22a Agricultural Association.
   (e) Any reference to the 22nd District Agricultural Association in
Chapter 9 (commencing with Section 4351) shall be deemed to refer to
the District 22a Agricultural Association.
   (f) All otherwise applicable ethical duties, including those in
Section 1090 of the Government Code, subdivision (a) of Section 8920
of the Government Code, and the Political Reform Act of 1974 (Title 9
(commencing with Section 81000) of the Government Code), shall apply
to the officers of both the 22nd District Agricultural Association
and the District 22a Agricultural Association, and shall apply in
regard to the transactions contemplated by Section 3873.2. 

  SEC. 2.    Section 3873.2 is added to the Food and
Agricultural Code, to read:
   3873.2.  (a) The District 22a Disposition Fund is hereby created
in the State Treasury.
   (b) The Department of General Services may sell all or any portion
of the real property that comprises District 22a and related
personal property to the City of Del Mar under terms and conditions
satisfactory to the Director of General Services, including, but not
limited to, seller financing, notes, or security, and the security
for notes. Neither the District 22a Agricultural Association nor the
22nd District Agricultural Association shall enter into any contract,
lease, or other agreement affecting the use or operation of the real
property for a period that exceeds three months, and all of these
contracts, leases, or other agreements shall contain a provision that
they may be canceled upon a 30-day notice from the Department of
General Services. The Department of General Services shall be
reimbursed for any reasonable cost or expense incurred for the
transactions described in this section. Additionally, to the extent
bonds issued by the State Public Works Board or other entity involve
the property to be sold pursuant to this section, all issuer and
trustee related costs associated with the review of any proposed
sale, together with the costs related to the defeasance or retirement
of any bonds, which may include the cost of nationally recognized
bond counsel, shall be paid from the proceeds of any sale or lease
authorized by this section. The net proceeds from the sale shall be
deposited into the District 22a Disposition Fund.
   (c) The sale of the real property authorized by this section may
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 property, or may be a negotiated
sale to the City of Del Mar. If a public bidding process is used, a
notice of this bidding process shall be posted by the Department of
General Services on its Internet Web site for at least 30 days prior
to the sale of the real property. The provisions of Section 11011.1
of the Government Code are not applicable to the sale of real
property authorized under this section.
   (d) Thirty days prior to executing a transaction for the sale of
real and personal property as authorized by this section, the
Director of General Services shall report in writing to the chairs 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 real property and
the terms listed in paragraph (1).
   (3) Any basis for agreeing to terms and conditions other than fair
market value.
   (e) As to the real property sold pursuant to this section, the
Director of General Services shall except and reserve to the state
all mineral deposits, as defined in Section 6407 of the Public
Resources Code, together with the right to prospect for, mine, and
remove the deposits. If, however, the Director of General Services
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 real property
conveyed that the director determines to be reasonably necessary for
the removal of the deposits.
   (f) Upon the sale of all property that comprises District 22a,
District 22a shall be abolished and all funds in the District 22a
Disposition Fund shall be transferred to the General Fund for use
consistent with subdivision (g) of Section 11011 of the Government
Code and Section 9 of Article III of the California Constitution.
   (g) (1) The disposition of state real property or buildings
specified in subdivision (b) that are made on an "as is" basis shall
be exempt from Chapter 3 (commencing with Section 21100) to Chapter 6
(commencing with Section 21165), inclusive, of Division 13 of the
Public Resources Code. Upon title to the parcel vesting in the
purchaser or transferee of the property, the purchaser or transferee
shall be subject to any local governmental land use entitlement
approval requirements and to Chapter 3 (commencing with Section
21100) to Chapter 6 (commencing with Section 21165), inclusive, of
Division 13 of the Public Resources Code.
   (2) If the disposition of state real property or buildings
specified in subdivision (b), is not made on an "as is" basis and
close of escrow is contingent on the satisfaction of a local
governmental land use entitlement approval requirement or compliance
by the local government with Chapter 3 (commencing with Section
21100) to Chapter 6 (commencing with Section 21165), inclusive, of
Division 13 of the Public Resources Code, the execution of the
purchase and sale agreement or of the exchange agreement by all
parties to the agreement shall be exempt from Chapter 3 (commencing
with Section 21100) to Chapter 6 (commencing with Section 21165),
inclusive, of Division 13 of the Public Resources Code.
   (3) For the purposes of this subdivision, "disposition" means the
sale, lease, or repurchase of state property or buildings specified
in subdivision (b).