Surplus state real property: disposal.

(1) Existing law authorizes the Director of General Services to dispose of surplus state real property subject to a prescribed process and legislative authorization. Existing law requires that surplus state property not needed by a state agency be offered to local agencies and then to nonprofit affordable housing sponsors prior to being offered to private entities or individuals. This bill would authorize the director to dispose of a property known as the San Diego State Office Building, as specified, pursuant to these provisions. If State Public Works Board bonds involving this property are outstanding at the time the director disposes of the property, the bill would require the board to approve the transaction and that all costs associated with the defeasance of the bonds be paid from the proceeds of the transaction. (2) The California Constitution requires that the proceeds from the sale of surplus state property be used to pay the principal and interest on bonds issued pursuant to the Economic Recovery Bond Act until the principal and interest on those bonds are fully paid, after which these proceeds are required to be deposited into the Special Fund for Economic Uncertainties, a continuously appropriated fund. The final payment of principal and interest on these bonds was made in the 2015–16 fiscal year. By increasing the amount transferred into the Special Fund for Economic Uncertainties, a continuously appropriated fund, this bill would make an appropriation.