AB 1594 California Assembly · 2025-2026 Regular Session

Surplus nonresidential property: sales by the Department of Transportation: net equity.

Summary

Existing law establishes priorities and procedures that any state agency disposing of surplus property is required to follow. Existing law sets forth an order of priority for the disposal of surplus nonresidential property. In this regard, existing law requires a tenant in good standing of a nonresidential property who is a city or a nonprofit organization to be given priority to purchase the property at the lesser of fair market value or value in use, as specified. Existing law prohibits the Department of Transportation from selling a nonresidential property to a tenant as described above at a value below the minimum sales price, as defined. Existing law requires an offer to sell surplus nonresidential property as described above at less than fair market value to be subject to appropriate terms, conditions, and restrictions, as specified. This bill would create an exception from that prohibition for a tenant who is a nonprofit organization that operates multiple residential structures primarily for the purposes of familial habitation during medical treatment and related administrative activities. Specifically, the bill would prohibit the tenant from being required to pay to the Department of Transportation any amounts in excess of the lesser of fair market value or value in use, as specified, regardless of any contractual obligation to pay those amounts. The bill would require the tenant to be required to repay any amounts not paid pursuant to the above provision if the tenant sells the property or no longer qualifies as a nonprofit organization. The bill would require the Department of Transportation to include that requirement in the terms, conditions, and restrictions of the offer to the tenant. The bill would make its provisions retroactive and applicable to any contracts entered into between the Department of Transportation and a qualified tenant. This bill would make legislative findings and declarations as to the necessity of a special statute for certain nonresidential tenants carrying long-term debt obligations to the Department of Transportation. This bill would make legislative findings and declarations related to a gift of public funds.

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Aug 2026

Assembly Passage

Apr 2026

Senate Passage

Governor

Introduced Jan 16, 2026 Last action Aug 13, 2026

Maddy AI version diff · 4 comparisons

What changed between versions

03/04/26 - Amended Assembly → 06/09/26 - Amended Senate · 5 edits · Jun 9, 2026

MODERATE

The Senate amendment completely removed the California Citrus Commission provisions (approximately 20 pages of new code establishing a producer-governed commission with assessment authority, voting implementation procedures, and enforcement powers) and replaced them with a narrow provision creating an exception for certain nonprofit medical-habitation tenants purchasing surplus Caltrans property. The fairs committee language changes were retained. This represents a fundamental shift in the bill's purpose from creating a new agricultural regulatory body to addressing a specific surplus property sale issue.

Scope change

The bill's scope shifted dramatically from a broad agricultural regulatory framework (creating an entirely new state commission with assessment and enforcement powers over the citrus industry) to a targeted surplus property sale exception for a specific class of nonprofit medical-habitation tenants, while retaining the narrower fairs committee terminology changes.

SCOPE

The entire California Citrus Commission framework was removed, including: commission structure (20 producer members plus 1 public member across 3 districts), powers and duties (education, promotion, marketing, pest/disease eradication, grade standards), implementation referendum requirements (40% participation threshold with dual majority/volume tests), assessment authority (up to 12 cents per carton monthly), civil penalties (up to $1,000 for false reports or record destruction), and enforcement mechanisms including writs of attachment and injunctive relief.

A new provision amending Government Code Section 54237 was added, creating an exception to the prohibition on Caltrans selling surplus nonresidential property below minimum sales price. The exception applies to nonprofit tenants operating multiple residential structures primarily for familial habitation during medical treatment and related administrative activities.

FISCAL

The provision suspending the existing Section 5919 monthly citrus assessment upon establishment of the commission was removed, along with all assessment collection, record-keeping, and penalty provisions for the new commission. The bill's appropriation designation changed from yes to no.

ELIGIBILITY

The new provision allows qualifying nonprofit tenants to be prohibited from paying Caltrans any amounts in excess of the lesser of fair market value or value in use, regardless of contractual obligations to pay those amounts. The provision is made retroactive and applicable to contracts already entered into between Caltrans and qualified tenants.

TECHNICAL

The bill's title and digest were updated to reflect the new surplus property topic alongside the retained fairs committee changes. Legislative findings regarding necessity of a special statute for nonresidential tenants with long-term debt obligations and findings related to a gift of public funds were added.

Floor votes · Assembly Apr 9, 2026

How they voted

64–0

Passed · 15 other

Total votes 79

Apr 9, 2026

D Democratic59

47 Yea 12

79% Yea

R Republican20

17 Yea 3

85% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Aug 13, 2026

Upper · Passed

In committee: Held under submission.

upper

Aug 3, 2026

Committee

In committee: Referred to APPR. suspense file.

upper

Jul 2, 2026

Upper · Passed

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

upper

Jul 1, 2026

Introduced

From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (June 30).

upper

Jun 15, 2026

Committee

Re-referred to Com. on TRANS.

upper

Jun 10, 2026

Committee

Re-referred to Com. on RLS.

upper

Jun 9, 2026

Introduced

From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on AGRI.

upper

May 6, 2026

Committee

Referred to Com. on AGRI.

upper

Apr 9, 2026

Lower · Passed

Read third time. Passed. Ordered to the Senate. (Ayes 64. Noes 0. Page 4557.)

lower

Mar 26, 2026

Lower · Passed

From committee: Do pass. To Consent Calendar. (Ayes 8. Noes 0.) (March 25).

lower

Mar 5, 2026

Committee

Re-referred to Com. on AGRI.

lower

Mar 4, 2026

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on AGRI. Read second time and amended.

lower

Feb 2, 2026

Committee

Referred to Com. on AGRI.

lower

Jan 17, 2026

Lower · Passed

From printer. May be heard in committee February 16.

lower

1 primary · 0 co-sponsors