SB 747 — Land use: surplus land.

Summary

Existing law prescribes requirements for the disposal of surplus land by a local agency. Existing law defines terms for these purposes. Existing law defines "surplus land" to generally mean land owned in fee simple by a local agency for which the local agency's governing body takes formal action in a public meeting declaring that the land is surplus and not necessary for the agency's use. Existing law defines "agency's use" to include land that is being used, is planned to be used pursuant to a written plan adopted by the local agency's governing board, or is disposed of to support agency work or operations. Existing law excludes from "agency's use" commercial or industrial uses or activities, or property disposed of for the sole purpose of investment or generation of revenue, unless the local agency is a district, except as specified, and the agency's governing body takes specified actions in a public meeting. Existing law excludes from these requirements the disposal of exempt surplus land by an agency of the state or any local government. Existing law requires a local agency to declare land as either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it. Under existing law, exempt surplus land includes, among other types of land, property that is used by a district for an "agency's use" as expressly authorized, land for specified developments, including a mixed-use development, if put out to open, competitive bid by a local agency, as specified, and surplus land that is subject to specified valid legal restrictions. This bill would define the term "dispose" for these purposes to mean the sale of the surplus property or a lease of any surplus property entered into on or after January 1, 2024, for a term longer than 15 years, including renewal options, as specified. The bill would provide that "dispose" does not include entering a lease for surplus land on which no development or demolition will occur, regardless of the term of the lease. The bill would also redefine the term "agency's use" to include property owned by a port that is used to support logistics uses, sites for broadband equipment or wireless facilities, and waste disposal sites. This bill would revise and recast certain provisions related to exempt surplus land, including exempting surplus land that is less than one-half acre and not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate- income housing purposes, and provisions related to mixed-use developments, among others. The bill would add various new categories of exempt surplus land, including (1) specified land that is owned by a California public-use airport on which residential uses are prohibited, (2) surplus land owned by a local agency whose primary mission or purpose is to supply the public with a transportation system that is developed for commercial, or industrial uses or activities, for the sole purpose of investment if certain conditions are met, and (3) land transferred to a community land trust, as specified. The bill would also specify that certain legal restrictions are valid legal restrictions and would require that for surplus land that is subject to valid legal restrictions to be considered exempt surplus land, a declaration of exemption must be supported by documentary evidence, as provided. This bill would specify that the law governing surplus land does not require a local agency to dispose of land that is determined to be surplus. Existing law requires a local agency disposing of surplus land to send a written notice of availability of the property to specified local agencies and housing sponsors before disposing of the property or participating in negotiations. This bill would specify additional actions that are not considered "participating in negotiations" for purposes of the above-described notice of availability requirement, including issuing a request for proposals or negotiating a lease for purposes of complying with specified provisions of law. Existing law requires the Department of Housing and Community Development to maintain on its internet website a list of all notices of availability throughout the state. This bill would require the department to also maintain on its internet website a list of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing. Existing law requires an entity proposing to use surplus land for developing low- and moderate-income housing shall agree to make available not less than 25 percent of the total number of units developed on the parcels at affordable housing cost for a period of at least 55 years. This bill would instead require the entity to agree to make available not less than 25 percent of the total number of units developed on the parcels at affordable housing cost for a minimum of 55 years for rental housing, 45 years for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands. Under existing law, a local agency that disposes of surplus land after receiving a notification from the Department of Housing and Community Development that the agency is in violation of the law governing surplus land is liable for 30% of the final sale price of the land. Existing law authorizes certain entities and interested persons to bring an action to enforce these provisions. This bill would instead make a local agency that is in violation of these provisions liable for 30% of the applicable disposition value, which the bill would define. This bill would prohibit the penalties for violating these provisions from applying to nonsubstantive violations that do not impact the availability or construction of housing affordable to lower income households or the ultimate disposition of the land, as specified. Existing law further requires the department to review, adopt, amend, or repeal guidelines to establish uniform standards to implement certain provisions and exempts those guidelines from the Administrative Procedure Act. This bill would remove that exemption from the Administrative Procedure Act. By imposing new duties on local agencies, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. This bill would incorporate additional changes to Section 54221 of the Government Code proposed by Assembly Bill 480 to be operative only if this bill and Assembly Bill 480 are enacted and this bill is enacted last. This bill would make its operation contingent on the enactment of Assembly Bill 480 of the 2023-24 Regular Session.

Bill Text

• Chaptered 10/11/23 - Chaptered Current pdf October 11, 2023
• Enrolled 09/19/23 - Enrolled pdf September 19, 2023
• Amended 09/08/23 - Amended Assembly pdf September 08, 2023
• Amended 08/14/23 - Amended Assembly pdf August 14, 2023
• Amended 06/30/23 - Amended Assembly pdf June 30, 2023
• Amended 05/18/23 - Amended Senate pdf May 18, 2023
• Amended 05/01/23 - Amended Senate pdf May 01, 2023
• Amended 04/13/23 - Amended Senate pdf April 13, 2023
• Amended 03/22/23 - Amended Senate pdf March 22, 2023
• Introduced 02/17/23 - Introduced pdf February 17, 2023
• SB747 View text html

Action History

1. October 11, 2023

   Chaptered by Secretary of State. Chapter 786, Statutes of 2023.

2. October 11, 2023

   Approved by the Governor.

3. September 21, 2023

   Enrolled and presented to the Governor at 4 p.m.

4. September 14, 2023

   Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2797.) Ordered to engrossing and enrolling.

5. September 13, 2023

   In Senate. Concurrence in Assembly amendments pending.

6. September 13, 2023

   Read third time. Passed. (Ayes 80. Noes 0. Page 3356.) Ordered to the Senate.

7. September 08, 2023

   Ordered to third reading.

8. September 08, 2023

   Read third time and amended.

9. September 05, 2023

   Read second time. Ordered to third reading.

10. September 01, 2023

    From committee: Do pass. (Ayes 16. Noes 0.) (September 1).

11. August 23, 2023

    August 23 set for first hearing. Placed on suspense file.

12. August 14, 2023

    Read second time and amended. Re-referred to Com. on APPR.

13. July 18, 2023

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (July 12).

14. June 30, 2023

    Read second time and amended. Re-referred to Com. on H. & C.D.

15. June 29, 2023

    From committee: Do pass as amended and re-refer to Com. on H. & C.D. (Ayes 8. Noes 0.) (June 28).

16. June 15, 2023

    Referred to Coms. on L. GOV. and H. & C.D.

17. June 01, 2023

    In Assembly. Read first time. Held at Desk.

18. May 31, 2023

    Read third time. Passed. (Ayes 38. Noes 0. Page 1396.) Ordered to the Assembly.

19. May 22, 2023

    Read second time. Ordered to third reading.

20. May 18, 2023

    Read second time and amended. Ordered to second reading.

21. May 18, 2023

    From committee: Do pass as amended. (Ayes 7. Noes 0. Page 1182.) (May 18).

22. May 16, 2023

    Set for hearing May 18.

23. May 15, 2023

    May 15 hearing: Placed on APPR suspense file.

24. May 05, 2023

    Set for hearing May 15.

25. May 01, 2023

    Read second time and amended. Re-referred to Com. on APPR.

26. April 27, 2023

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0. Page 875.) (April 24).

27. April 20, 2023

    Set for hearing April 24.

28. April 19, 2023

    Re-referred to Com. on HOUSING.

29. April 13, 2023

    Read second time and amended. Re-referred to Com. on RLS.

30. April 12, 2023

    From committee: Do pass as amended and re-refer to Com. on RLS. (Ayes 8. Noes 0. Page 684.) (April 12).

31. March 28, 2023

    Set for hearing April 12.

32. March 22, 2023

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on GOV. & F.

33. March 01, 2023

    Referred to Com. on GOV. & F.

34. February 21, 2023

    From printer. May be acted upon on or after March 20.

35. February 17, 2023

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

• Anna M. Caballero · Primary
• Kelly Seyarto · Cosponsor
• Ting · Cosponsor

Votes

Subjects