Nov 142007
VETOED DATE: 10/14/2007

To the Members of the California State Assembly:

I am returning Assembly Bill 1438 without my signature.

This bill would allow the State to sell or lease certain real
property. However, it does not contain an exemption from the
California Environmental Quality Act (CEQA).

The Department of General Services is required by law to submit a
bill to the Legislature to dispose of any surplus land by sale,
lease, or exchange. This process has worked well for over a decade.
Over the years, the State has been authorized to sell or exchange
dozens of properties, generating millions of dollars for the State of
California, and these transactions contained legislatively
authorized exemptions from CEQA.

However, beginning in 2005, the Legislature has selectively chosen to
add millions of dollars in potential costs to this process by
applying CEQA requirements prior to the sale of the State property.
Under the provisions of voter approved Proposition 60A, revenues
generated from the sale of surplus property are to be used to reduce
the debt from the Economic Recovery Bonds approved in March 2004.
Instead of generating revenue for the State to pay down debt, the
Legislature has effectively placed properties like these at risk of
incurring additional cost of administration and potential litigation
? costs that are eventually passed on to the taxpayer. As I have
stated repeatedly over the past two years, there is no reason to
apply CEQA to properties that are being sold. CEQA is properly
applied when the use and zoning of real property is changed not when
it is simply sold.

I would be willing to consider this bill in the future, should it
contain the CEQA exemption. Until that time, I am unable to sign
this measure.


Arnold Schwarzenegger

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