Real Property Exemption Notice and SB 630 Waiver

SB 630 waiver is a transaction-specific waiver requested by a state agency and granted by DGS that exempts a particular real property transaction from DGS review or approval. The SB 630 Waiver is distinct from the Real Property Exemption Notice, and covers those discretionary waivers permitted through SB 630 beyond Government Code Section 14667.1.

Submission of the Request

To request an SB 630 Waiver, a state agency shall submit a Global CRUISE request to RESD.

Contents of the Request

Requesting agency should include the following information:

1. Detailed description of the proposed transaction.
2. Listing of the proposed parties to the transaction, if known.
3. Citation of the agency’s underlying authority to enter into the transaction.
4. Any known risks or issues unique to the transaction or property.

If the transaction for which the SB 630 Waiver is being requested is a part of any current or planned Capital Outlay project (regardless of whether said project will be managed by DGS), that is considered a known issue and must be disclosed.

1. A description of the agency’s relevant expertise and experience. The agency should consider the following:
• Experience and expertise of both staff and contracted support, where applicable.
• Type/nature of the transactions in terms of risk.
• Agency’s track record in completing such transactions and successfully obtaining DGS approval.
2. Anything else that the agency wishes to provide to make the case for it having the requisite experience and expertise.

Note: DGS reserves the right to request additional information or documentation in evaluating the request.

Timing of the Request

Departments may submit SB 630 Waiver requests at any time during a project’s lifecycle. However, it is advised that departments submit when the project is at a stage at which the required information is known or otherwise can be attested to with reasonable certainty.

Review and Approval Process

Upon receipt of the request, the Real Property Services Section and the Chief of the Asset Management Branch shall concurrently review the request.

DGS shall evaluate the following (see the SB 630 Waivers Flow Chart for additional information on the workflow):

1. Proposed transaction falls under the statutes amended by SB 630.
2. Transaction, and requesting agency, are not already covered under an Exemption Notice.
3. Requesting agency has the authority to undertake the transaction but-for DGS review or approval.
4. Requesting agency has demonstrated that they have the necessary experience and expertise relevant to the nature and risk of the proposed transaction such that DGS may reasonably waive its approval.
5. If the proposed transaction is related to a current or future Capital Outlay project managed by DGS, the Chief of the Project Management and Development Branch agrees with the issuance of an Approval Memo. Alternatively, if the transaction is related to a Capital Outlay project that is not managed by DGS, the requesting agency has demonstrated in writing that the Department of Finance concurs with their request.

Note: In the event that both Chiefs do not agree, the matter shall be elevated to the Deputy Director of RESD.

The Real Property Services Section shall, within four weeks of receiving the Global CRUISE request, recommend approval or denial of the request to the Chief. Upon receiving the recommendation, the Chief shall make their own determination and issue either an Approval Memo or deny the request in writing.