SB 940: High-Speed Rail Authority: eminent domain: right of first refusal.
- Session Year: 2015-2016
- House: Senate
- Latest Version Date: 2016-08-22
Existing law creates the High-Speed Rail Authority with specified powers, including the power to acquire rights-of-way through purchase or eminent domain, and duties relating to the development and implementation of an intercity high-speed rail system. Existing law, pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, authorizes $9.95 billion in general obligation bonds for high-speed rail development and other related purposes.
Under existing law, if the authority determines that real property or an interest therein acquired by the state for high-speed rail purposes is no longer necessary for those purposes, the authority is authorized to sell or exchange the real property or interest therein at fair market value as specified.
This bill would require the authority, if selling the real property or interest therein, to send notification by certified mail to the last known owner of the real property or interest therein at his or her last known address, advising him or her that the real property or interest therein will be offered for sale. The bill would require the authority to wait at least 30 days after the notification has been sent to sell the real property or interest therein.
This bill would declare that it is to take effect immediately as an urgency statute.
Existing law creates the High-Speed Rail Authority with specified powers, including the power to acquire rights-of-way through purchase or eminent domain, and duties relating to the development and implementation of an intercity high-speed rail system. Existing law, pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, authorizes $9.95 billion in general obligation bonds for high-speed rail development and other related purposes.
Under existing law, if the authority determines that real property or an interest therein acquired by the state for high-speed rail purposes is no longer necessary for those purposes, the authority is authorized to sell or exchange the real property or interest therein at fair market value as specified.
This bill would require the authority, if selling the real property or interest therein, to send notification by certified mail to the last known owner of the real property or interest therein at his or her last known address, advising him or her that the real property or interest therein will be offered for sale. The bill would require the authority to wait at least 30 days after the notification has been sent to sell the real property or interest therein.
This bill would declare that it is to take effect immediately as an urgency statute.
Existing law creates the High-Speed Rail Authority with specified powers, including the power to acquire rights-of-way through purchase or eminent domain, and duties relating to the development and implementation of an intercity high-speed rail system. Existing law, pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, authorizes $9.95 billion in general obligation bonds for high-speed rail development and other related purposes.
Under existing law, if the authority determines that real property or an interest therein acquired by the state for high-speed rail purposes is no longer necessary for those purposes, the authority is authorized to sell or exchange the real property or interest therein at fair market value as specified.
This bill would instead require the authority to sell or exchange the real property or interest therein if it is no longer necessary for high-speed rail purposes. The bill would also require the authority to offer the person, or his or her next of kin, from whom the real property or interest therein was acquired the right of first refusal to purchase the property at fair market value, unless the authority acting in good faith is unable to locate the person, or his or her next of kin, within 180 days of the authoritys initial attempt to locate the person. authority, if selling the real property or interest therein, to send notification by certified mail to the last known owner of the real property or interest therein at his or her last known address, advising him or her that the real property or interest therein will be offered for sale. The bill would require the authority to wait at least 30 days after the notification has been sent to sell the real property or interest therein.
This bill would declare that it is to take effect immediately as an urgency statute.
Existing law creates the High-Speed Rail Authority with specified powers, including the power to acquire rights-of-way through purchase or eminent domain, and duties relating to the development and implementation of an intercity high-speed rail system. Existing law, pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, authorizes $9.95 billion in general obligation bonds for high-speed rail development and other related purposes.
This bill would declare the intent of the Legislature to enact legislation that would establish a right of first refusal for landowners to reacquire land that was taken for high-speed rail through eminent domain, if the land is later determined to not be necessary for high-speed rail.
Under existing law, if the authority determines that real property or an interest therein acquired by the state for high-speed rail purposes is no longer necessary for those purposes, the authority is authorized to sell or exchange the real property or interest therein at fair market value as specified.
This bill would instead require the authority to sell or exchange the real property or interest therein if it is no longer necessary for high-speed rail purposes. The bill would also require the authority to offer the person, or his or her next of kin, from whom the real property or interest therein was acquired the right of first refusal to purchase the property at fair market value, unless the authority acting in good faith is unable to locate the person, or his or her next of kin, within 180 days of the authoritys initial attempt to locate the person.
This bill would declare that it is to take effect immediately as an urgency statute.
Existing law creates the High-Speed Rail Authority with specified powers, including the power to acquire rights-of-way through purchase or eminent domain, and duties relating to the development and implementation of an intercity high-speed rail system. Existing law, pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, authorizes $9.95 billion in general obligation bonds for high-speed rail development and other related purposes.
This bill would declare the intent of the Legislature to enact legislation that would establish a right of first refusal for landowners to reacquire land that was taken for high-speed rail through eminent domain, if the land is later determined to not be necessary for high-speed rail.
(a)If the authority determines that real property or an interest therein, previously or hereafter acquired by the state for high-speed rail purposes, is no longer necessary for those purposes, the authority may sell or exchange the real property or interest therein at fair market value in the manner set forth in this section.
(b)Prior to selling the real property or interest therein in any other manner authorized under this section, the authority shall send notification by certified mail to the last known owner of the real property or interest therein at his or her last known address, advising him or her that the real property or interest therein will be offered for sale. The authority shall not sell the real property or interest therein until at least 30 days after the notification has been sent.
(c)The authority may sell the property to an adjoining landowner if it makes either of the following findings:
(1)(A)That the property is of a size or shape that it is below the average normal standard size and shape of other privately owned properties in the immediate neighborhood, and that if the property were sold to other than the adjoining owner, it would give rise to a land use development thereof that would be below and not consistent with the normal land use of other properties in that neighborhood, (B) that the sale of the property to a party other than the adjoining owner may cause an undue or unfair hardship to the adjoining owner in the normal land use development or operation of his or her property, (C) that the property considered as part of the adjoining property would have a higher and better use than under separate ownership, and (D) that the fair market value of the property considered as part of the adjoining property would be higher than under separate ownership.
(2)(A)That the sale of the excess parcel to other than the adjoining owner would deprive the adjoining owner of an existing vested right of access to a public highway and thereby create a possible cause of action against the authority or the state.
(B)A sale to an adjoining landowner pursuant to this subdivision may be by contract to sell or trust deed. The payment period in a contract of sale or sale by trust deed shall not extend longer than 10 years from the time the contract of sale or trust deed is executed, and a transaction involving a contract of sale or sale by trust deed to private parties shall require a downpayment of at least 30 percent of the purchase price.
(d)The authority may sell the property to municipalities or other local agencies at their request, without calling for competitive bids, at a price representing the fair market value thereof, and upon a determination that the intended use is for a public purpose.
(e)If it is improved property, the property may be sold to a former owner who has remained in occupancy, or to a residential tenant of a tenure of five years or more with all rent obligations current or paid in full.
(f)Any real property or interest therein may in like manner be exchanged, either as whole or part consideration, for any other real property or interest therein as needed for high-speed rail purposes. This provision does not authorize exchanges where the value of the state-owned property exceeds the value of the property the authority seeks to acquire, unless the excess value is incidental and subdivision of the state-owned property, in order to produce a smaller parcel of equal value to the value of the property the authority seeks to acquire, would reduce the total value of the state-owned property.
(g)Except as otherwise provided in this section, property shall be sold either by receipt of competitive sealed bids, or at public auction, whichever method is determined by the authority to be more likely to achieve the higher sales price.
(h)Any payments received under this section for the sale of real property no longer necessary for high-speed rail purposes shall be deposited in the High-Speed Rail Property Fund created pursuant to Section 185045, and shall be available to the authority upon appropriation as provided in that section.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to protect private property rights, it is necessary for this act to take effect immediately.
(a)If the authority determines that real property or an interest therein, previously or hereafter acquired by the state for high-speed rail purposes, is no longer necessary for those purposes, the authority may sell or exchange the real property or interest therein at fair market value in the manner set forth in this section.
(b)Prior to selling the real property or interest therein in any other manner authorized under this section, the authority shall send notification by certified mail to the last known owner of the real property or interest therein at his or her last known address, advising him or her that the real property or interest therein will be offered for sale. The authority shall not sell the real property or interest therein until at least 30 days after the notification has been sent.
(c)The authority may sell the property to an adjoining landowner if it makes either of the following findings:
(1)(A)That the property is of a size or shape that it is below the average normal standard size and shape of other privately owned properties in the immediate neighborhood, and that if the property were sold to other than the adjoining owner, it would give rise to a land use development thereof that would be below and not consistent with the normal land use of other properties in that neighborhood, (B) that the sale of the property to a party other than the adjoining owner may cause an undue or unfair hardship to the adjoining owner in the normal land use development or operation of his or her property, (C) that the property considered as part of the adjoining property would have a higher and better use than under separate ownership, and (D) that the fair market value of the property considered as part of the adjoining property would be higher than under separate ownership.
(2)(A)That the sale of the excess parcel to other than the adjoining owner would deprive the adjoining owner of an existing vested right of access to a public highway and thereby create a possible cause of action against the authority or the state.
(B)A sale to an adjoining landowner pursuant to this subdivision may be by contract to sell or trust deed. The payment period in a contract of sale or sale by trust deed shall not extend longer than 10 years from the time the contract of sale or trust deed is executed, and a transaction involving a contract of sale or sale by trust deed to private parties shall require a downpayment of at least 30 percent of the purchase price.
(d)The authority may sell the property to municipalities or other local agencies at their request, without calling for competitive bids, at a price representing the fair market value thereof, and upon a determination that the intended use is for a public purpose.
(e)If it is improved property, the property may be sold to a former owner who has remained in occupancy, or to a residential tenant of a tenure of five years or more with all rent obligations current or paid in full.
(f)Any real property or interest therein may in like manner be exchanged, either as whole or part consideration, for any other real property or interest therein as needed for high-speed rail purposes. This provision does not authorize exchanges where the value of the state-owned property exceeds the value of the property the authority seeks to acquire, unless the excess value is incidental and subdivision of the state-owned property, in order to produce a smaller parcel of equal value to the value of the property the authority seeks to acquire, would reduce the total value of the state-owned property.
(g)Except as otherwise provided in this section, property shall be sold either by receipt of competitive sealed bids, or at public auction, whichever method is determined by the authority to be more likely to achieve the higher sales price.
(h)Any payments received under this section for the sale of real property no longer necessary for high-speed rail purposes shall be deposited in the High-Speed Rail Property Fund created pursuant to Section 185045, and shall be available to the authority upon appropriation as provided in that section.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to protect private property rights, it is necessary for this act to take effect immediately.
(a)If the authority determines that real property or an interest therein, previously or hereafter acquired by the state for high-speed rail purposes, is no longer necessary for those purposes, the authority shall may sell or exchange the real property or interest therein at fair market value in the manner set forth in this section.
(b)(1)Notwithstanding subdivision (c) and prior Prior to selling the real property or interest therein in any other manner authorized under this section, the authority shall offer the person, or his or her next of kin, from whom the real property or interest therein was acquired the right of first refusal to purchase the property at fair market value. send notification by certified mail to the last known owner of the real property or interest therein at his or her last known address, advising him or her that the real property or interest therein will be offered for sale. The authority shall not sell the real property or interest therein until at least 30 days after the notification has been sent.
(2)This requirement shall be met if the person, or his or her next of kin, from whom the real property or interest therein was acquired does not choose to purchase the property within a reasonable time and at fair market value, or if the authority acting in good faith is unable to locate the person, or his or her next of kin, from whom the property was acquired within 180 days of the authoritys initial attempt to locate the person.
(c)The authority may sell the property to an adjoining landowner if it makes either of the following findings:
(1)(A)That the property is of a size or shape that it is below the average normal standard size and shape of other privately owned properties in the immediate neighborhood, and that if the property were sold to other than the adjoining owner, it would give rise to a land use development thereof that would be below and not consistent with the normal land use of other properties in that neighborhood, (B) that the sale of the property to a party other than the adjoining owner may cause an undue or unfair hardship to the adjoining owner in the normal land use development or operation of his or her property, (C) that the property considered as part of the adjoining property would have a higher and better use than under separate ownership, and (D) that the fair market value of the property considered as part of the adjoining property would be higher than under separate ownership.
(2)(A)That the sale of the excess parcel to other than the adjoining owner would deprive the adjoining owner of an existing vested right of access to a public highway and thereby create a possible cause of action against the authority or the state.
(B)A sale to an adjoining landowner pursuant to this subdivision may be by contract to sell or trust deed. The payment period in a contract of sale or sale by trust deed shall not extend longer than 10 years from the time the contract of sale or trust deed is executed, and a transaction involving a contract of sale or sale by trust deed to private parties shall require a downpayment of at least 30 percent of the purchase price.
(d)The authority may sell the property to municipalities or other local agencies at their request, without calling for competitive bids, at a price representing the fair market value thereof, and upon a determination that the intended use is for a public purpose.
(e)If it is improved property, the property may be sold to a former owner who has remained in occupancy, or to a residential tenant of a tenure of five years or more with all rent obligations current or paid in full.
(f)Any real property or interest therein may in like manner be exchanged, either as whole or part consideration, for any other real property or interest therein as needed for high-speed rail purposes. This provision does not authorize exchanges where the value of the state-owned property exceeds the value of the property the authority seeks to acquire, unless the excess value is incidental and subdivision of the state-owned property, in order to produce a smaller parcel of equal value to the value of the property the authority seeks to acquire, would reduce the total value of the state-owned property.
(g)Except as otherwise provided in this section, property shall be sold either by receipt of competitive sealed bids, or at public auction, whichever method is determined by the authority to be more likely to achieve the higher sales price.
(h)Any payments received under this section for the sale of real property no longer necessary for high-speed rail purposes shall be deposited in the High-Speed Rail Property Fund created pursuant to Section 185045, and shall be available to the authority upon appropriation as provided in that section.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to protect private property rights, it is necessary for this act to take effect immediately.
(a)If the authority determines that real property or an interest therein, previously or hereafter acquired by the state for high-speed rail purposes, is no longer necessary for those purposes, the authority may shall sell or exchange the real property or interest therein at fair market value in the manner set forth in this section.
(b)(1)Notwithstanding subdivision (c) and prior to selling the real property or interest therein in any other manner authorized under this section, the authority shall offer the person, or his or her next of kin, from whom the real property or interest therein was acquired the right of first refusal to purchase the property at fair market value.
(2)This requirement shall be met if the person, or his or her next of kin, from whom the real property or interest therein was acquired does not choose to purchase the property within a reasonable time and at fair market value, or if the authority acting in good faith is unable to locate the person, or his or her next of kin, from whom the property was acquired within 180 days of the authoritys initial attempt to locate the person.
(b)
(c)The authority may sell the property to an adjoining landowner if it makes either of the following two findings:
(1)(A)That the property is of a size or shape that it is below the average normal standard size and shape of other privately owned properties in the immediate neighborhood, and that if the property were sold to other than the adjoining owner, it would give rise to a land use development thereof that would be below and not consistent with the normal land use of other properties in that neighborhood, (B) that the sale of the property to a party other than the adjoining owner may cause an undue or unfair hardship to the adjoining owner in the normal land use development or operation of his or her property, (C) that the property considered as part of the adjoining property would have a higher and better use than under separate ownership, and (D) that the fair market value of the property considered as part of the adjoining property would be higher than under separate ownership.
(2)(A)That the sale of the excess parcel to other than the adjoining owner would deprive the adjoining owner of an existing vested right of access to a public highway and thereby create a possible cause of action against the authority or the state.
A
(B)A sale to an adjoining landowner pursuant to this subdivision may be by contract to sell or trust deed. The payment period in a contract of sale or sale by trust deed shall not extend longer than 10 years from the time the contract of sale or trust deed is executed, and a transaction involving a contract of sale or sale by trust deed to private parties shall require a downpayment of at least 30 percent of the purchase price.
(c)
(d)The authority may sell the property to municipalities or other local agencies at their request, without calling for competitive bids, at a price representing the fair market value thereof, and upon a determination that the intended use is for a public purpose.
(d)
(e)If it is improved property, the property may be sold to a former owner who has remained in occupancy, or to a residential tenant of a tenure of five years or more with all rent obligations current or paid in full.
(e)
(f)Any real property or interest therein may in like manner be exchanged, either as whole or part consideration, for any other real property or interest therein as needed for high-speed rail purposes. This provision does not authorize exchanges where the value of the state-owned property exceeds the value of the property the authority seeks to acquire, unless the excess value is incidental and subdivision of the state-owned property, in order to produce a smaller parcel of equal value to the value of the property the authority seeks to acquire, would reduce the total value of the state-owned property.
(f)
(g)Except as otherwise provided in this section, property shall be sold either by receipt of competitive sealed bids, or at public auction, whichever method is determined by the authority to be more likely to achieve the higher sales price.
(g)
(h)Any payments received under this section for the sale of real property no longer necessary for high-speed rail purposes shall be deposited in the High-Speed Rail Property Fund created pursuant to Section 185045, and shall be available to the authority upon appropriation as provided in that section.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to protect private property rights, it is necessary for this act to take effect immediately.
SECTION 1.It is the intent of the Legislature to enact legislation that would establish a right of first refusal for a landowner to reacquire land that was taken for high-speed rail through eminent domain, if the land is later determined to not be necessary for high-speed rail.
It is the intent of the Legislature to enact legislation that would establish a right of first refusal for a landowner to reacquire land that was taken for high-speed rail through eminent domain, if the land is later determined to not be necessary for high-speed rail.
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Date
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Status
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|---|---|
| May 16, 2016 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8. |
| Aug 22, 2016 | Chaptered by Secretary of State. Chapter 169, Statutes of 2016. |
| Aug 22, 2016 | Approved by the Governor. |
| Aug 10, 2016 | Enrolled and presented to the Governor at 10 a.m. |
| Aug 4, 2016 | Read third time. Urgency clause adopted. Passed. (Ayes 77. Noes 0. Page 5719.) Ordered to the Senate. |
| Aug 4, 2016 | Read third time. Urgency clause adopted. Passed. Ordered to the Senate. |
| Aug 4, 2016 | In Senate. Ordered to engrossing and enrolling. |
| Jun 30, 2016 | Read second time. Ordered to consent calendar. |
| Jun 29, 2016 | From committee: Do pass. Ordered to consent calendar. (Ayes 18. Noes 0.) (June 29). |
| Jun 14, 2016 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 15. Noes 0.) (June 13). Re-referred to Com. on APPR. |
| Jun 1, 2016 | Referred to Coms. on TRANS. and JUD. |
| May 23, 2016 | Read third time. Urgency clause adopted. Passed. (Ayes 38. Noes 0.) Ordered to the Assembly. |
| May 23, 2016 | Read third time. Urgency clause adopted. Passed. (Ayes 38. Noes 0. Page 3927.) Ordered to the Assembly. |
| May 23, 2016 | In Assembly. Read first time. Held at Desk. |
| May 17, 2016 | Read second time. Ordered to third reading. |
| Feb 3, 2016 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
| May 6, 2016 | Set for hearing May 16. |
| May 4, 2016 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (May 3). Re-referred to Com. on APPR. |
| May 4, 2016 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0. Page 3766.) (May 3). Re-referred to Com. on APPR. |
| Apr 21, 2016 | Set for hearing May 3. |
| Apr 20, 2016 | From committee: Do pass and re-refer to Com. on JUD. (Ayes 10. Noes 0.) (April 19). Re-referred to Com. on JUD. |
| Apr 20, 2016 | From committee: Do pass and re-refer to Com. on JUD. (Ayes 10. Noes 0. Page 3615.) (April 19). Re-referred to Com. on JUD. |
| Apr 12, 2016 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on T. & H. |
| Apr 7, 2016 | Set for hearing April 19. |
| Apr 6, 2016 | April 12 hearing postponed by committee. |
| Mar 24, 2016 | Set for hearing April 12. |
| Mar 16, 2016 | Re-referred to Coms. on T. & H. and JUD. |
| Mar 9, 2016 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Feb 18, 2016 | Referred to Com. on RLS. |
| Feb 4, 2016 | From printer. May be acted upon on or after March 5. |
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Date
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Description
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Location
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Votes
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|---|---|---|---|---|
| Aug 4, 2016 | SB 940 Vidak Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
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| Jun 29, 2016 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jun 13, 2016 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Transportation |
Passed |
|
| May 23, 2016 | Senate 3rd Reading SB940 Vidak Urgency Clause | Senate Floor |
Passed |
|
| May 3, 2016 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Judiciary |
Passed |
|
| Apr 19, 2016 | Do pass, but first be re-referred to the Committee on [Judiciary] | Senate Standing Committee on Transportation and Housing |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| Citizens for California High Speed Rail Accountability | ** Support | May 23, 2016 |
| Kings County Board of Supervisors | ** Support | May 23, 2016 |
| Southwest California Legislative Council | ** Support | May 23, 2016 |
Date of Hearing: June 29, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SBPCA Bill Id:SB 940
Author:(Vidak) – As Amended Ver:April 12, 2016
Policy Committee: | Transportation | Vote: | 15 - 0 |
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Urgency: Yes State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill requires the High-Speed Rail Authority (Authority), prior to selling surplus property, to notify by certified mail the last known owner of the property and to not sell the property until at least 30 days following the notification.
FISCAL EFFECT:
Minor absorbable costs for the Authority to provide the required notifications in a timely manner.
COMMENTS:
Purpose. AB 481 (Lowenthal), Chapter 132, Statutes of 2013, allows the Authority to dispose of properties that it deems no longer necessary, but does not provide the original landowner the right to be notified that the property will be sold. SB 940 does not require a first right of refusal for the previous owner, but does, at least, provide notification that a property will be sold, thereby improving the opportunity for the previous owner to purchase the property.
Analysis Prepared by: Chuck Nicol / APPR. / (916) 319-2081
Date of Hearing: June 13, 2016
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
SBPCA Bill Id:SB 940
Author:(Vidak) – As Amended Ver:April 12, 2016
SENATE VOTE: 38-0
SUBJECT: High-Speed Rail Authority: surplus property
SUMMARY: Requires the California High-Speed Rail Authority (Authority), when selling surplus property, to send notification that the property is being offered for sale to the last known owner. Specifically, this bill:
- Requires the Authority, prior to selling previous acquired real property and interest therein, to send notification by certified mail to the last known owner of the property, at his or her last known address, to advise him or her that the property will be offered for sale.
- Prohibits the Authority from selling the property until at least 30 days after the notification has been sent.
- Is an urgency measure.
EXISTING LAW:
- Establishes the Authority and vests with it the responsibility to develop and implement a high-speed rail system in California.
- Authorizes the sale of $9.95 billion in general obligation bonds for the development and construction of California's high-speed rail system, including the acquisition of real property and rights-of-way.
- Authorizes the Authority to sell or exchange real property determined to be no longer necessary for high-speed rail purposes and establishes a process for selling the real property.
- Allows the proceeds from any property sold to be appropriated for use in the development, improvement, and maintenance of the high-speed rail system.
FISCAL EFFECT: Unknown
COMMENTS: As part of the development and construction of the high-speed rail system in California, the Authority is authorized to purchase real property from affected land owners in the project area. The Authority follows a process similar to other state and local entities in the acquisition of property, including an independent appraisal of the property and an offer to purchase the property at fair market value. If that process is not successful, the State Public Works Board, on behalf of the Authority, may use the state’s eminent domain authority to acquire the property. If any real property is deemed no longer necessary for project purposes, the Authority may sell the property at fair market value or exchange the property for other property needed for the project.
The author introduced SB 940 to improve the opportunity for individuals to reacquire property acquired by the Authority for the high-speed rail project. In 2013 the Legislature passed and the Governor signed AB 481 (Lowenthal), Chapter 132, Statutes of 2013, which stated that the Authority may dispose of properties that it deems no longer necessary. The legislation did not provide the original landowner the right to be notified that the property will be sold. Consequently, the Authority is under no obligation to make any effort to reunite previous owners with property that has been declared surplus. SB 940 does not require a first right of refusal for the previous owner, but does, at least, provide notification that a property will be sold, thereby improving the opportunity for the previous owner to buy back the property.
According to the Authority, roughly 1,600 parcels will need to be acquired for the Madera to north of Bakersfield segment in the Central Valley as identified in the 2016 Business Plan. To date, no property has been sold as excess, or not necessary, as construction is under way and it is too early to determine what property may not be needed for the project. As the project continues, with construction of the Initial Operating Segment (IOS) expected to be complete in 2024, the sale of excess property may not happen for 10 years or more after the original acquisition.
Double referral: This bill will be referred to the Assembly Judiciary Committee should it pass out of this committee.
Previous legislation: AB 481 (Lowenthal), Chapter 132, Statutes of 2013, authorized the Authority to manage real property acquired for high-speed rail purposes, including selling or exchanging the real property or interest therein no longer needed for the project at fair market value.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
None on file
Analysis Prepared by: Melissa White / TRANS. / (916) 319-2093
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
THIRD READING
Bill No: SB 940
:
SENATE TRANS. & HOUSING COMMITTEE: 10-0, 4/19/16
AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva, McGuire, Mendoza, Roth
NO VOTE RECORDED: Wieckowski
SENATE JUDICIARY COMMITTEE: 6-0, 5/3/16
AYES: Jackson, Moorlach, Anderson, Leno, Monning, Wieckowski
NO VOTE RECORDED: Hertzberg
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
DIGEST: This bill requires the High-Speed Rail Authority (HSRA), when real property is deemed unnecessary and is proposed to be sold or exchanged, to provide notification to the last known landowner, as specified.
Existing law:
- Creates the California HSRA to direct development and implementation of intercity high-speed rail service that is fully coordinated with other public transportation services. In 2008, voters approved Proposition 1A (Prop 1A), authorizing $9.95 billion in general obligation bonds for the high-speed rail project. Prop 1A authorizes HSRA to use bond funds for, among other things, acquisition of real property and rights-of-way for the purpose of constructing the rail system.
- Allows HSRA to sell or exchange previously acquired real property at fair market value if it’s determined that the property is no longer necessary for the completion of the project, as specified.
This bill:
- Requires HSRA to provide notification to the last known landowner of the real property purchased by HSRA that the property is deemed unnecessary and will be sold or exchanged at fair market value.
- Prohibits HSRA from selling the property within 30 days of sending the notification.
- Includes an urgency measure.
Comments
- Purpose. The author notes that “in 2013, the legislature passed and the Governor signed AB 481 (Lowenthal, Chapter 132, Statutes of 2013), which stated that the HSRA may dispose of properties that it deems no longer necessary.” However, the author further notes, AB 481 did not direct the HSRA to subsequently notify the last known landowner that the property has been deemed unnecessary and will be sold or exchanged at fair market value. SB 940 will provide the last known landowner of the property with a notice that the property will be up for sale just in case they are interested in purchasing back the property.
- Existing process. Like other governmental agencies, HSRA attempts to purchase any necessary property related to project construction by offering the appraised fair market value of that property to the owner. If the transaction is unable to proceed in this way, the State Public Works Board, on behalf of HSRA, may use the state’s eminent domain authority to acquire the property. Property acquisition processes, including eminent domain proceedings, generally result in a settlement transferring the ownership of private property to a governmental entity for public use, typically at a justified and documented price based on sound business practices.
- Is notification necessary? Currently, no example exists of HSRA attempting to sell real property where the prior landowner was reportedly unaware or was denied the opportunity to repurchase the property at fair market value. However, this bill merely sets up a notification process that allows the last known landowner to receive notice that the property will be up for sale or exchanged at fair market value. Upon sending the notification, the HSRA will be able to move forward with the current selling/exchange process set forth in existing law 30 days after sending the notification.
- Double-referral. This bill was heard in both the Senate Transportation and Housing and Judiciary Committees.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
Citizens for California High Speed Rail Accountability
Kings County Board of Supervisors
Southwest California Legislative Council
OPPOSITION: (Verified 5/16/16)
None received
5/18/16 16:27:49
**** END ****
Senator Hannah-Beth Jackson, Chair
2015-2016 Regular Session
Bill No: SB 940 (Author:Vidak)
Version: April 12, 2016
Hearing Date: May 3, 2016
Fiscal: Yes
Urgency: Yes
Consultant: TH
SUBJECT
High-Speed Rail Authority: Eminent Domain: Right of First Refusal
DESCRIPTION
This bill would require the California High-Speed Rail Authority, prior to selling an interest in excess real property, to send notification by certified mail to the last known owner of the real property prior to acquisition by the Authority at his or her last known address, advising him or her that the real property will be offered for sale. This bill would restrict the authority from selling the real property until at least 30 days after the notification has been sent.
BACKGROUND
In 1993, California established the Intercity High-Speed Rail Commission to develop a framework for creating a statewide high-speed rail system. Following a study released by the Commission in 1996 indicating the feasibility of such a statewide system, the Legislature passed SB 1420 (Costa et al., Ch. 796, Stats. 1996), which established the California High-Speed Rail Authority (Authority) and directed it to continue planning for the system. The Authority serves as the administrative body with primary responsibility for overseeing the planning and construction of the high-speed rail system. (See Pub. Util. Code Sec. 185024.)
Several years later, on November 4, 2008, the voters of California passed Proposition 1A, the Bond Act, “to initiate the construction of a high-speed train system that connects the San Francisco Transbay Terminal to Los Angeles Union Station and Anaheim, and links the state’s major population centers, including Sacramento, the San Francisco Bay Area, the Central Valley, Los Angeles, the Inland Empire, Orange County, and San Diego . . .” (Sts. & Hy. Code Sec. 2704.04.) The Bond Act authorized the issuance and sale of $9 billion in general obligation bonds “upon appropriation by the Legislature” to begin construction of the high-speed train system. (Id.) Among other capital costs, the Bond Act authorized the Authority to incur costs for “all activities necessary for acquisition of interests in real property and rights-of-way and improvement thereof,” as well as “relocation assistance for displaced property owners and occupants.” (Id.)
In 2013, the Legislature vested the Authority with independent power to manage property acquired for the high-speed rail system with the passage of AB 481 (Lowenthal, Ch. 132, Stats. 2013). Without such independent power, property acquisition and management duties and responsibilities for state agencies generally rest with the Department of General Services. Under this independent grant of power, the Authority may sell or exchange real property or interest therein at fair market value if it determines that the property, having been acquired by the state for the high-speed rail project, is no longer necessary for that purpose. (Pub. Util. Code Sec. 185040(a).) Existing law provides specific procedures for the Authority to follow when selling excess property to adjoining landowners, as well as to public sector entities like municipalities and local agencies. Absent specific procedures, existing law requires the Authority to sell excess property either by receipt of competitive sealed bids, or at public auction, depending on which method is more likely to achieve the higher sales price. (Pub. Util. Code Sec. 185040(f).)
This bill would require the Authority, prior to selling excess property, to send a notice by certified mail to the last known owner of the property at his or her last known address, advising that the property will be offered for sale. This bill would also restrict the Authority from selling the property until at least 30 days after the notification to the prior owner has been sent.
CHANGES TO EXISTING LAW
Existing law declares the intent of the Legislature to initiate the construction of a high-speed train system that connects the San Francisco Transbay Terminal to Los Angeles Union Station and Anaheim, and links the state’s major population centers, including Sacramento, the San Francisco Bay Area, the Central Valley, Los Angeles, the Inland Empire, Orange County, and San Diego, as specified. (Sts. & Hy. Code Sec. 2704.04(a).)
Existing law states that the net proceeds received from the sale of $9 billion dollars of bonds shall be used for planning and engineering for the high-speed train system and for other capital costs, as specified. (Sts. & Hy. Code Sec. 2704.04(b).)
Existing law specifies that capital costs payable or reimbursable include, with respect to the high-speed train system or any portion thereof, all activities necessary for acquisition of interests in real property and rights-of-way and improvement thereof; acquisition and construction of tracks, structures, power systems, and stations; acquisition of rolling stock and related equipment; mitigation of direct or indirect environmental impacts; relocation assistance for displaced property owners and occupants; other related capital facilities and equipment; and such other purposes related to the foregoing, for the procurement thereof, and for the financing or refinancing thereof, as specified. (Sts. & Hy. Code Sec. 2704.04(c).)
Existing law directs the California High-Speed Rail Authority (Authority) to develop and implement an intercity high-speed rail service that is fully integrated with the state’s existing intercity rail and bus network, consisting of interlinked conventional and high-speed rail lines and associated feeder buses. Existing law specifies that the intercity network shall be fully coordinated and connected with commuter rail lines and urban rail transit lines developed by local agencies, as well as other transit services, through the use of common station facilities whenever possible. (Pub. Util. Code Sec. 185030.)
Existing law empowers the Authority to do any of the following, as specified:
- enter into contracts with private or public entities for the design, construction, and operation of high-speed trains;
- acquire rights-of-way through purchase or eminent domain;
- issue debt, secured by pledges of state funds, federal grants, or project revenues;
- enter into cooperative or joint development agreements with local governments or private entities;
- set fares and schedules; and
- relocate highways and utilities. (Pub. Util. Code Sec. 185036.)
Existing law provides that if the Authority determines real property or an interest therein, previously or hereafter acquired by the state for high-speed rail purposes, is no longer necessary for those purposes, the Authority may sell or exchange the real property or interest therein at fair market value. (Pub. Util. Code Sec. 185040(a).)
Existing law states that the Authority may sell excess property to an adjoining landowner if it makes either of the following two findings:
- that the property is of a size or shape that is below the average, normal standard size and shape of other privately owned properties in the immediate neighborhood, and that if the property were sold to other than the adjoining owner, it would give rise to a land use development that would be below and not consistent with the normal land use of other properties in that neighborhood, that the sale of the property to a party other than the adjoining owner may cause an undue or unfair hardship to the adjoining owner in the normal land use development or operation of his or her property, that the property considered as part of the adjoining property would have a higher and better use than under separate ownership, and that the fair market value of the property considered as part of the adjoining property would be higher than under separate ownership; or
- that the sale of the excess parcel to other than the adjoining owner would deprive the adjoining owner of an existing vested right of access to a public highway and thereby create a possible cause of action against the authority or the state. (Pub. Util. Code Sec. 185040(b).)
Existing law provides that the Authority may sell excess property to municipalities or other local agencies at their request, without calling for competitive bids, at a price representing the fair market value thereof, and upon a determination that the intended use is for a public purpose. (Pub. Util. Code Sec. 185040(c).)
Existing law provides that if it is improved property, excess property may be sold to a former owner who has remained in occupancy, or to a residential tenant of a tenure of five years or more with all rent obligations current or paid in full. (Pub. Util. Code Sec. 185040(d).)
Existing law provides that any real property or interest therein may in like manner be exchanged, either as whole or part consideration, for any other real property or interest therein as needed for high-speed rail purposes, as specified. (Pub. Util. Code Sec. 185040(e).)
Existing law provides that the Authority may sell or lease excess right-of-way parcels to municipalities or other local agencies for public purposes, and may accept as all or part of the consideration for the sale or lease any substantial benefits the state will derive from the municipality or other local agency’s undertaking maintenance or landscaping costs that would otherwise be the obligation of the state. (Pub. Util. Code Sec. 185041.)
Existing law states that, except as provided, excess property shall be sold either by receipt of competitive sealed bids, or at public auction, whichever method is determined by the authority to be more likely to achieve the higher sales price. (Pub. Util. Code Sec. 185040(f).)
This bill requires the Authority, prior to selling excess real property or an interest therein, to send notification by certified mail to the last known owner of the real property or interest therein at his or her last known address, advising him or her that the real property or interest therein will be offered for sale.
This bill states that the Authority shall not sell the excess real property or interest therein until at least 30 days after the notification required in the above provision has been sent.
COMMENT
- Stated need for the bill
According to the author:
Nearly 1,300 individual properties have been identified by the High-Speed Rail (HSR) Authority as necessary to complete the planned 120 mile route from Madera to Bakersfield. Many of these properties have been in families for generations, and HSR may end up splitting properties or severely limit the productivity of any remaining property. While these 1,300 properties have been identified as necessary to complete the current alignment, there is always a possibility that the preferred route may change or that the project is never completed, leaving the state holding onto properties it no longer needs.
In 2013 the Legislature passed, and the Governor signed, AB 481 which stated that the Authority may dispose of properties that it deems no longer necessary. Unfortunately this legislation did not require the Authority to dispose of unneeded properties. Additionally, AB 481 did not provide the original landowner, or their family, an opportunity to repurchase the land.
Under current law, it is possible for the Authority to decide that a property they acquired is no longer necessary and they could decide to hold onto the property in perpetuity or decide to sell it to someone else, without even contacting the original property owner to see if they are interested in buying the property back. Senate Bill 940 would require the High-Speed Rail Authority to notify previous landowners and their families of excess land that the Authority has deemed not necessary for High-Speed Rail (HSR) and that the Authority plans to sell.
- Informing prior owners of land sales
Real property, unlike many other saleable assets, is considered somewhat unique under the law. At common law, because land was viewed as immovable and, to some extent, eternal, English courts and the resulting case law considered each parcel of land to be distinguishable from all others. The unique character of land under the law has passed into California’s Civil Code in various forms, including in Section 3387, which provides specific remedies for breaches of agreements to transfer real property not normally applicable to the performance of contractual obligations.[1]
This bill, in a way, follows this common law tradition by establishing a notification process for prior owners of land held by the California High-Speed Rail Authority to learn that it will be offered for sale. The bill would require the Authority to notify the prior owner, at their last known address, by certified mail that land they once owned has been deemed in excess to the Authority’s requirements and will be sold, ostensibly so the prior owner can seek to repurchase the land. The bill would also require the Authority to refrain from selling the land for at least 30 days after sending the notice to the prior owner. However, the bill would not provide the prior owner with any special right to purchase the land, such as a right of first refusal. Rather, the prior owner would have to purchase the land on the open market through the Authority’s sale process just as any other prospective purchaser, unless the prior owner received priority under some other provision of law, such as that provided to former owners of improved property who have remained in occupancy.
- Logistical concerns
While this bill may be useful in reuniting certain prior owners with land they formerly owned, its notification provision could become largely obsolete the further that period of prior ownership is from the point in time at which the Authority offers the land for sale. Under the bill, the authority would only be obligated to send a notice of sale to the prior owner of an excess parcel at their last known address. If a period of years has elapsed, it is quite possible that the prior owner will have moved away, rendering the notification process ineffective. If a significant period of time elapses, the remote chance of notifying a prior owner of a pending sale may be outweighed by the time and expense endured by the Authority to retain the necessary records and go through the notification process.
Support: Citizens for California High Speed Rail Accountability; Kings County Board of Supervisors; Southwest California Legislative Council
Opposition: None Known
HISTORY
Source: Author
Related Pending Legislation: None Known
Prior Legislation:
AB 1138 (Patterson, 2015) would have prohibited the High-Speed Rail Authority, or the State Public Works Board acting on behalf of the Authority, from adopting a resolution of necessity to commence an eminent domain proceeding to acquire a parcel of real property along a corridor, or usable segment thereof, for the high-speed train system unless the resolution identified the sources of all funds to be invested in the corridor or usable segment, and certified that the Authority had completed all necessary project level environmental clearances necessary to proceed to construction, as specified. This bill died in the Assembly Transportation Committee.
AB 481 (Lowenthal, Ch. 132, Stats. 2013) granted the High-Speed Rail Authority (HSRA) independent authority to manage property acquired for high-speed rail purposes, similar to the independent authority provided to the Department of Transportation. Among other things, this bill authorized the HSRA to acquire, grant access to, and quitclaim easements and rights-of-way on property owned or being acquired by the state, and to sell property no longer needed for high-speed rail purposes at fair market value to an adjacent property owner, a local agency, or former owner, as specified.
SB 1420 (Costa et al., Ch. 796, Stats. 1996) created the High-Speed Rail Authority and required the Authority to develop and implement high speed rail services that interconnect with existing intercity rail and bus services. Among other things, this bill authorized the Authority, upon receiving either legislative or voter approval, to contract for the design, construction and operation of a high-speed rail network, and to take associated implementation steps, including acquiring land and rights-of-way for the high-speed rail network.
Prior Vote: Senate Transportation and Housing Committee (Ayes 10, Noes 0)
**************
Civil Code Section 3387 states:
It is to be presumed that the breach of an agreement to transfer real property cannot be adequately relieved by pecuniary compensation. In the case of a single-family dwelling which the party seeking performance intends to occupy, this presumption is conclusive. In all other cases, this presumption is a presumption affecting the burden of proof. ↑
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: Hearing Date: 4/19/2016
Author: | Vidak | ||
Version: | 4/12/2016 Amended | ||
Urgency: | Yes | Fiscal: | Yes |
Consultant: | Manny Leon | ||
SUBJECT:
DIGEST: This bill requires the High-Speed Rail Authority (HSRA), when real property is deemed unnecessary and is proposed to be sold or exchanged, to provide notification to the last known landowner, as specified.
ANALYSIS:
Existing law created the California HSRA in 1996 to direct development and implementation of intercity high-speed rail service that is fully coordinated with other public transportation services. In 2008, voters approved Proposition 1A (Prop 1A), authorizing $9.95 billion in general obligation bonds for the high-speed rail project. Prop 1A authorizes HSRA to use bond funds for, among other things, acquisition of real property and rights-of-way for the purpose of constructing the rail system.
Existing law allows HSRA to sell or exchange previously acquired real property at fair market value if it’s determined that the property is no longer necessary for the completion of the project, as specified.
This bill:
- Requires HSRA to provide notification to the last known landowner of the real property purchased by HSRA that the property is deemed unnecessary and will be sold or exchanged at fair market value.
- Prohibits HSRA from selling the property within 30 days of sending the notification.
- Includes an urgency measure.
COMMENTS:
- Purpose. The author notes that “in 2013, the legislature passed and the Governor signed AB 481(Lowenthal, Chapter 132, Statutes of 2013), which stated that the HSRA may dispose of properties that it deems no longer necessary.” However, the author further notes, AB 481 did not direct the HSRA to subsequently notify the last known landowner that the property has been deemed unnecessary and will be sold or exchanged at fair market value. SB 940 will provide the last known landowner of the property with a notice that the property will be up for sale just in case they are interested in purchasing back the property.
- Existing process. Like other governmental agencies, HSRA attempts to purchase any necessary property related to project construction by offering the appraised fair market value of that property to the owner. If the transaction is unable to proceed in this way, the State Public Works Board (PWB), on behalf of HSRA, may use the state’s eminent domain authority to acquire the property. Property acquisition processes, including eminent domain proceedings, generally result in a settlement transferring the ownership of private property to a governmental entity for public use, typically at a justified and documented price based on sound business practices.
- Is notification necessary? Currently, no example exists of HSRA attempting to sell real property where the prior landowner was reportedly unaware or was denied the opportunity to repurchase the property at fair market value. However, this bill merely sets up a notification process that allows the last known landowner to receive notice that the property will be up for sale or exchanged at fair market value. Upon sending the notification, the HSRA will be able to move forward with the current selling/exchange process set forth in existing law 30 days after sending the notification.
- Double-referral. This bill has also been referred to the Senate Judiciary Committee.
Related Legislation:
AB 481 (Lowenthal, Chapter 132, Statutes of 2013) — makes a number of changes to HSRA, including allowing HSRA to sell or exchange the real property or interest therein at fair market value if HSRA determines that real property is not necessary for the construction of the project.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
POSITIONS: (Communicated to the committee before noon on Wednesday,
April 13, 2016.)
SUPPORT:
None received
OPPOSITION:
None received
-- END --
Discussed in Hearing
1MIN
Senate Floor
4MIN
Senate Standing Committee on Transportation and Housing
Bill Author
Bill Co-Author(s):