AB 2139 California Assembly · 2025-2026 Regular Session

Surplus lands: exempt surplus land: City of Ontario.

Summary

Existing law prescribes requirements for the disposal of surplus land by a local agency. Existing law defines "surplus land" for these purposes to mean land owned in fee simple by any local agency for which the local agency's governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agency's use. Existing law requires that land be declared either "surplus land" or "exempt surplus land," as supported by written findings, before a local agency may take any action to dispose of it consistent with an agency's policies or procedures. Existing law provides that an agency is not required to follow the requirements for the disposal of surplus land for "exempt surplus land." Existing law defines "exempt surplus land" to include certain types of land. Existing law makes a local agency that disposes of surplus land, in violation of the requirements for the disposal of surplus land after receiving specified notification from the department that the local agency is in violation, liable for a penalty of 30% of the applicable disposition value for a first violation and 50% for any subsequent violation, as provided. This bill would expand the definition of "exempt surplus land" to include certain land owned by the City of Ontario that satisfies specified requirements. The bill would require that these requirements be contained in a covenant or restriction recorded against the surplus land at the time of disposition, as provided. The bill would require that the city meet specified requirements to declare exempt surplus land pursuant to these provisions, including depositing funds from the deposition into a local housing-specific set-aside account, as provided. The bill would require the city to provide the Department of Housing and Community Development a written notification of its declaration and findings at least 30 days prior to disposing of land declared "exempt surplus land" pursuant to these provisions, and would require the department to notify the city if the department has determined the city is in violation of these provisions, as provided. The bill would provide that a violation these provisions would be considered a 2nd or subsequent violation of the requirements for the disposal of surplus land, as provided. This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Ontario.

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Jul 2026

Assembly Passage

May 2026

Senate Passage

Governor

Introduced Feb 18, 2026 Last action Jul 1, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

04/16/26 - Amended Assembly → AB2139 · 1 edit

MINOR

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TECHNICAL

The document was re-rendered from a formatted legislative text layout into a web page format with navigation menus, search fields, version dropdowns, and site metadata. No substantive policy language was added, removed, or altered.

04/07/26 - Amended Assembly → 04/16/26 - Amended Assembly · 6 edits · Apr 16, 2026

MODERATE

The April 16 amendment removed a broad new exemption (Section 54222.3) that would have allowed any local agency to dispose of property acquired on or after January 1, 2029, for economic opportunity purposes without following surplus land disposal requirements. The bill now focuses exclusively on the City of Ontario sports and entertainment district exemption. In exchange, the amendment added significant enforcement and accountability mechanisms, including penalties, a housing set-aside fund requirement, and mandatory notification to the state Department of Housing and Community Development.

SCOPE

Removed the addition of new Section 54222.3, which would have exempted any local agency from surplus land disposal requirements for property acquired on or after January 1, 2029, for economic opportunity purposes. This was a broad statewide exemption that applied to all local agencies.

ENFORCEMENT

Added penalty provisions: a violation of the City of Ontario exempt surplus land provisions would be treated as a second or subsequent violation under existing law, triggering a 50% penalty of the applicable disposition value (rather than the 30% first-violation penalty).

REQUIREMENT

Added a requirement that the City of Ontario deposit funds from the disposition into a local housing-specific set-aside account, creating a financial obligation tied to the land disposal.

Added a requirement that the City of Ontario provide written notification to the Department of Housing and Community Development at least 30 days before disposing of land declared exempt surplus land under these provisions, and that the department notify the city if it determines a violation has occurred.

Added a requirement that conditions attached to the disposition be contained in a covenant or restriction recorded against the surplus land at the time of disposition, making them enforceable against future owners.

FISCAL

The fiscal committee determination changed from 'yes' to 'no,' indicating the bill no longer carries a state-mandated local program with fiscal impact requiring fiscal committee review.

02/18/26 - Introduced → 04/07/26 - Amended Assembly · 5 edits · Apr 7, 2026

MODERATE

The amended version of AB 2139 adds a specific exemption for the City of Ontario's approximately 199-acre 'Ontario Sports Empire' sports and entertainment district from Surplus Land Act disposal requirements, while retaining the original provision that exempts surplus land acquired on or after January 1, 2029 for economic opportunity purposes. The amendment also adds legislative findings declaring that a special statute is necessary under the California Constitution due to the unique characteristics of this master-planned project. This matters because it allows the City of Ontario to dispose of publicly owned land within that district without following standard Surplus Land Act procedures, but explicitly excludes residential development from the exemption.

Scope change

The bill's scope expanded from a general exemption for any local agency disposing of surplus land acquired on or after January 1, 2029 for economic opportunity purposes, to also include a specific, named exemption for the City of Ontario's Ontario Sports Empire district. The amendment narrows the Ontario exemption to nonresidential uses within a defined geographic boundary and requires a formally adopted master plan and City Council resolution findings.

SCOPE

Added a new exemption (subparagraph T) to the definition of 'exempt surplus land' in Government Code Section 54221(f)(1) specifically for land owned by the City of Ontario within the Ontario Sports Empire district. The land must be subject to a formally adopted master plan, be conveyed for specified nonresidential purposes (stadiums, sports facilities, public plazas, parking, hotels, office uses), and require a City Council resolution with specific findings.

Added legislative findings and declarations (new Section 1) stating that the project is an approximately 199-acre multiphase regional sports and entertainment district in San Bernardino County, that strict application of the Surplus Land Act would impair the city's ability to implement a cohesive development strategy, and that a special statute is necessary under Article IV, Section 16 of the California Constitution.

ELIGIBILITY

Explicitly stated that the new Ontario Sports Empire exemption does not apply to residential development, limiting the scope to nonresidential uses only.

TECHNICAL

The bill now amends Section 54221 of the Government Code (definitions) in addition to adding Section 54222.3.2, rather than solely adding a new section as in the introduced version.

FISCAL

Fiscal committee recommendation changed from 'yes' to 'no', indicating the bill no longer carries a fiscal committee appropriation or funding recommendation.

Floor votes · Assembly May 28, 2026

How they voted

70–0

Passed · 9 other

Total votes 79

May 28, 2026

D Democratic59

51 Yea 8

86% Yea

R Republican20

19 Yea 1

95% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jul 1, 2026

Upper · Passed

In committee: Set, first hearing. Hearing canceled at the request of author.

upper

Jun 10, 2026

Committee

Referred to Com. on L. GOV.

upper

May 28, 2026

Lower · Passed

Read third time. Passed. Ordered to the Senate. (Ayes 70. Noes 1. Page 5523.)

lower

May 13, 2026

Lower · Passed

From committee: Do pass. (Ayes 14. Noes 0.) (May 13).

lower

Apr 23, 2026

Lower · Passed

From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 1.) (April 22). Re-referred to Com. on APPR.

lower

Apr 20, 2026

Committee

Re-referred to Com. on H. & C.D.

lower

Apr 16, 2026

Introduced

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

lower

Apr 16, 2026

Lower · Passed

From committee: Do pass and re-refer to Com. on H. & C.D. (Ayes 10. Noes 0.) (April 15). Re-referred to Com. on H. & C.D.

lower

Apr 8, 2026

Committee

Re-referred to Com. on L. GOV.

lower

Apr 7, 2026

Introduced

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

lower

Mar 9, 2026

Committee

Referred to Com. on L. GOV.

lower

Feb 19, 2026

Lower · Passed

From printer. May be heard in committee March 21.

lower

1 primary · 0 co-sponsors