BILL NUMBER: AB 615	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 13, 2011
	AMENDED IN ASSEMBLY  APRIL 28, 2011
	AMENDED IN ASSEMBLY  APRIL 25, 2011

INTRODUCED BY   Assembly Member Bonnie Lowenthal
    (   Coauthor:   Assembly Member  
Perea  ) 

                        FEBRUARY 16, 2011

   An act to amend Section 1245.210 of the Code of Civil Procedure,
to amend Sections 11005, 11005.2, 11007.1, 11011.13, 13332.11,
13332.12, 14255, 14662, 14666, 14666.6, 14666.8, and 14667 of, and to
add Section 11011.23 to, the Government Code, to amend Sections
10106 and 10107 of the Public Contract Code, and to add Chapter 4
(commencing with Section  185040)   185400)
 to Division 19.5 of the Public Utilities Code, relating to
high-speed rail.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 615, as amended, Bonnie Lowenthal. High-speed rail.
   Existing law creates the High-Speed Rail Authority with specified
powers and duties relative to development and implementation of a
high-speed train system, including the acquisition of rights-of-way
through purchase and eminent domain. Existing law, pursuant to the
Safe, Reliable High-Speed Passenger Train Bond Act for the 21st
Century, approved by the voters as Proposition 1A at the November 4,
2008, general election, provides for the issuance of $9.95 billion
for high-speed train capital projects and other associated purposes.
   Existing law generally requires the approval of the Department of
General Services before a state agency may acquire, hire, dispose of,
or let real property in fee or in a lesser interest, subject to
certain exceptions, including real property obtained for highway
purposes by the Department of Transportation. Existing law requires
the Department of General Services to inventory state-owned property,
other than property owned by the Department of Transportation and
certain other state agencies. Existing law provides that property
acquired by the Department of Transportation for highway purposes and
leased back for commercial or business uses to the former owner for
a term exceeding 6 months may be insured for loss by fire at the
request of the former owner with the premium for the insurance
included in the rent.
   This bill would enact similar exceptions, authorizations, and
exemptions relative to real property obtained for high-speed rail
purposes by the High-Speed Rail Authority. The bill would make
various additional conforming changes. The bill would also enact new
provisions governing acquisition or disposal of right-of-way property
by the authority, and would require the authority to provide a
record of real property parcels it owns to the Department of General
Services by July 1, 2014, and annually thereafter. The bill would
require payments for leases or other conveyances of property
controlled by the authority to be deposited with the authority for
use in development, improvement, and maintenance of the high-speed
rail system.  The bill would require the authority to exercise
all of these powers pursuant to a contract between the authority and
the Department of Transportation, and would require the department to
carry out the responsibilities relating to the exercise of those
powers on behalf of the authority pursuant to that contract. 
   Existing law requires a resolution of necessity to be adopted by
the governing body of a public entity before the entity may commence
an eminent domain proceeding for the taking of property.
   This bill would provide that the governing body in the case of a
taking by the  Department of High-Speed Trains is the
 High-Speed Rail Authority  is the authority  .
   Existing law generally requires the approval of the Department of
Finance and the State Public Works Board before a state agency may
expend funds from an appropriation for capital outlay purposes. These
provisions do not apply to the Department of Transportation and
certain other state agencies.
   This bill would also make these provisions inapplicable to the
High-Speed Rail Authority.
   Existing law provides that the Department of General Services is
the responsible agency for projects for various purposes under the
Public Contract Code, except with respect to projects under the
jurisdiction of other specified state agencies.
   This bill would provide that the High-Speed Rail Authority is the
responsible agency for projects under its jurisdiction. 
   This bill would provide that it shall not become operative unless
AB 145 is also enacted and becomes operative. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1245.210 of the Code of Civil Procedure is
amended to read:
   1245.210.  As used in this article, "governing body" means:
   (a) In the case of a taking by a local public entity, the
legislative body of the local public entity.
   (b) In the case of a taking by the Sacramento and San Joaquin
Drainage District, the State Reclamation Board.
   (c) In the case of a taking by the State Public Works Board
pursuant to the Property Acquisition Law (Part 11 (commencing with
Section 15850) of Division 3 of Title 2 of the Government Code), the
State Public Works Board.
   (d) In the case of a taking by the Department of Fish and Game
pursuant to Section 1348 of the Fish and Game Code, the Wildlife
Conservation Board.
   (e) In the case of a taking by the Department of Transportation
(other than a taking pursuant to Section 21633 of the Public
Utilities Code or Section 30100 of the Streets and Highways Code),
the California Transportation Commission.
   (f) In the case of a taking by the Department of Transportation
pursuant to Section 21633 of the Public Utilities Code, the
California Transportation Commission.
   (g) In the case of a taking by the Department of Transportation
pursuant to Section 30100 of the Streets and Highways Code, the
California Transportation Commission.
   (h) In the case of a taking by the Department of Water Resources,
the California Water Commission.
   (i) In the case of a taking by the University of California, the
Regents of the University of California.
   (j) In the case of a taking by the State Lands Commission, the
State Lands Commission.
   (k) In the case of a taking by Hastings College of Law, the board
of directors of that college.
   (l) In the case of a taking by the  Department of
High-Speed Trains   High-Speed Rail Authority  ,
the High-Speed Rail Authority.
  SEC. 2.  Section 11005 of the Government Code is amended to read:
   11005.  (a) Unless the Legislature specifically provides that
approval is not required, every gift or dedication to the state of
personal property, or every gift to the state of real property in fee
or in any lesser estate or interest, shall be approved by the
Director of Finance, and every contract for the acquisition or hiring
of real property in fee or in any lesser estate or interest, entered
into by or on behalf of the state, shall be approved by the Director
of General Services. Any contract entered into in violation of this
section is void. This section applies to any state agency that, by
general or specific statute, is expressly or impliedly authorized to
enter into transactions referred to in this section.
   (b) This section does not apply (1) to unconditional gifts of
money, (2) to the acquisition or hiring by the Department of
Transportation of real property in fee or in any lesser estate or
interest for highway purposes, but does apply to the hiring by that
department of office space in any office building, (3) to contracts
entered into under the authority of Chapter 4 (commencing with
Section 11770) of Part 3 of Division 2 of the Insurance Code, (4) to
the receipt of donated, unencumbered personal property from private
sources received in conjunction with the administration of the
Federal Surplus Personal Property Program by the Department of
General Services, (5) to the receipt of gifts of personal property in
the form of interpretive or historical objects, each valued at
fifteen thousand dollars ($15,000) or less, by the Department of
Parks and Recreation, (6) to the acceptance by the State Coastal
Conservancy of offers to dedicate public accessways made pursuant to
Division 20 (commencing with Section 30000) of the Public Resources
Code, or (7) to the acquisition or hiring by the High-Speed Rail
Authority of real property in fee or in any lesser estate or interest
for high-speed rail purposes, but does apply to the hiring by that
authority of office space in any office building.
  SEC. 3.  Section 11005.2 of the Government Code is amended to read:

   11005.2.  Unless the Legislature specifically provides that
approval by the Director of General Services is not required, every
conveyance, contract, or agreement whereby an interest of the state
in any real property is conveyed, demised, or let to any person,
shall, before the conveyance, contract, or agreement is executed or
entered into, be approved by the Director of General Services. Any
conveyance, contract, or agreement executed or entered into in
violation of this section is void. This section shall apply to any
state agency which, by general or specific statute, is expressly or
impliedly authorized to enter into transactions referred to in this
section.
   This section does not apply to real property acquired by the
Department of Transportation for highway purposes, real property
acquired by the High-Speed Rail Authority for high-speed rail
purposes, or real property administered by the State Lands
Commission, the Controller, or the State Compensation Insurance Fund.

  SEC. 4.  Section 11007.1 of the Government Code is amended to read:

   11007.1.  (a) The Department of Transportation, when it has
acquired title to any real property for highway purposes and leases
that property for commercial or business uses to the former owner for
a term exceeding six months, may secure insurance against the risk
of damage or destruction by fire where the former owner requests this
coverage and the premium therefor is included in the rental agreed
to be paid.
   (b) The High-Speed Rail Authority, when it has acquired title to
any real property for high-speed rail purposes and leases that
property for commercial or business uses to the former owner for a
term exceeding six months, may secure insurance against the risk of
damage or destruction by fire where the former owner requests this
coverage and the premium therefor is included in the rental agreed to
be paid.
  SEC. 5.  Section 11011.13 of the Government Code is amended to
read:
   11011.13.  For purposes of Section 11011.15, the following
definitions shall apply:
   (a) "Agency" means a state agency, department, division, bureau,
board, commission, district agricultural association, and the
California State University. "Agency" does not mean the Legislature,
the University of California, the State Lands Commission, the
Department of Transportation, or the High-Speed Rail Authority.
   (b) "Fully utilized" means that 100 percent of the property is
being appropriately utilized by a program of an agency every business
day of the year.
   (c) "Partially utilized" means one or more of the following:
   (1) Less than 100 percent of the property is appropriately
utilized by a program of an agency.
   (2) The property is not used every business day of the year by an
agency.
   (3) The property is used by other nonstate governmental entities
or private parties.
   (d) "Excess land" means property that is no longer needed for
either an existing or ongoing state program or a function of an
agency.
  SEC. 6.  Section 11011.23 is added to the Government Code, to read:

   11011.23.  (a) The High-Speed Rail Authority, on or before July 1,
2014, shall furnish to the Department of General Services a record
of each parcel of real property that it possesses, including lands,
buildings, office buildings, maintenance stations, equipment yards,
and parking facilities. This requirement shall not apply to
right-of-way property associated with existing trackage and
alignments of the high-speed passenger train system. The record shall
be furnished by the authority to the department in a uniform format
specified by the department. The department shall consult with the
authority on the development of the uniform format. The authority
shall update its record of these real property holdings, reflecting
any changes, by July 1 of each year.
   (b) The record prepared pursuant to subdivision (a) shall include
all of the following information:
   (1) The location of the property, including the county in which it
is located and the size of the property in acres, and any other
relevant property data.
   (2) The manner in which the property was acquired and the purchase
price, if available.
   (3) A description of the current uses of the property and any
projected future uses, if available.
   (4) A concise description of each major structure on the property.

  SEC. 7.  Section 13332.11 of the Government Code is amended to
read:
   13332.11.  (a) (1) Except as otherwise specified in paragraph (2),
no funds appropriated for capital outlay may be expended by any
state agency, including the University of California, the California
State University, the California Community Colleges, and the Judicial
Council until the Department of Finance and the State Public Works
Board have approved preliminary plans for the project to be funded
from a capital outlay appropriation.
   (2) Paragraph (1) shall not apply to any of the following:
   (A) Amounts for acquisition of real property in fee, or any other
lesser interest.
   (B) Amounts for equipment or minor capital outlay projects.
   (C) Amounts appropriated for preliminary plans, surveys, and
studies.
   (b) Notwithstanding subdivision (a), approvals by the State Public
Works Board and the Department of Finance for the University of
California and the California Community Colleges shall apply only to
the allocation of state capital outlay funds appropriated by the
Legislature, including land acquisition and equipment funds.
   (c) Any appropriated amounts for working drawings or construction
where the working drawings or construction have been started by any
state agency prior to approval of the preliminary plans by the State
Public Works Board shall be reverted to the fund from which the
appropriation was made, as approved by the Department of Finance. No
major project for which a capital outlay appropriation is made shall
be put out to bid until the working drawings have been approved by
the Department of Finance. No substantial change shall be made to the
approved preliminary plans or approved working drawings without
written approval by the Department of Finance. Any proposed
construction bid alternates shall be approved by the Department of
Finance.
   (d) The Department of Finance shall approve the use of funds from
a capital outlay appropriation for the purchase of any significant
unit of equipment.
   (e) The State Public Works Board may augment a major project in an
amount of up to 20 percent of the total of the capital outlay
appropriations for the project, irrespective of whether any such
appropriation has reverted. For projects authorized through multiple
fund sources, including, but not limited to, general obligation bonds
and lease-revenue bonds, to the extent otherwise permissible, the
Department of Finance shall have full authority to determine which of
the fund sources will bear all or part of an augmentation. The board
shall defer all augmentations in excess of 20 percent of the amount
appropriated for each capital outlay project until the Legislature
makes additional funds available for the specific project.
   (f) In addition to the powers provided by Section 15849.6, the
State Public Works Board may further increase the additional amount
in Section 15849.6 to include a reasonable construction reserve
within the construction fund for any capital outlay project without
augmenting the project. The amount of the construction reserve shall
be within the 20 percent augmentation limitation. The board may use
this amount to augment the project, when and if necessary, after the
lease revenue bonds are sold to assure completion of the project.
Upon completion of the project, any amount remaining in the
construction reserve funds shall be used to offset rental payments.
   (g) Augmentations in excess of 10 percent of the amount
appropriated for each capital outlay project shall be reported to the
Chairperson of the Joint Legislative Budget Committee, or his or her
designee, 20 days prior to board approval, or not sooner than
whatever lesser time the chairperson, or his or her designee, may in
each instance determine.
   (h) (1) The Department of Finance may change the administratively
or legislatively approved scope for major capital outlay projects.
   (2) If the Department of Finance changes the approved scope
pursuant to paragraph (1), the department shall report the changes
and associated cost implications to the Chairperson of the Joint
Legislative Budget Committee, the chairpersons of the respective
fiscal committees, and the legislative advisers of the State Public
Works Board 20 days prior to the proposed board action to recognize
the scope change.
   (i) The State Public Works Board shall defer action with respect
to approval of an acquisition project, when it is determined that the
estimated cost of the total acquisition project, as approved by the
Legislature is in excess of 20 percent of the amount appropriated,
unless it is determined that a lesser portion of the property is
sufficient to meet the objectives of the project approved by the
Legislature, and the Chairperson of the Joint Legislative Budget
Committee, or his or her designee, is provided a 20-day prior
notification of the proposed reductions in the acquisition project,
or whatever lesser period the chairperson, or his or her designee,
may in each instance determine.
   (j) The Department of Finance shall report to the Chairperson of
the Joint Legislative Budget Committee, the chairpersons of the
respective fiscal committees, and legislative advisers of the State
Public Works Board 20 days prior to the proposed board approval of
preliminary plans when it is determined that the estimated cost of
the total capital outlay construction project is in excess of 20
percent of the amount recognized by the Legislature.
   (k) Nothing in this section shall be construed to limit or control
the Department of Transportation, the High-Speed Rail Authority, or
the California Exposition and State Fair in the expenditure of all
funds appropriated to any of these entities for capital outlay
purposes.
  SEC. 8.  Section 13332.12 of the Government Code is amended to
read:
   13332.12.  (a) Any acquisition of land or other real property
authorized in any appropriation, except an appropriation from the
California Water Fund or an appropriation to the Department of
Transportation or the High-Speed Rail Authority for capital outlay
purposes, shall be subject to the provisions of the Property
Acquisition Law. Nothing in this section shall be construed as
exempting the California Coastal Commission from this section.
   (b) All property acquisitions, including those exempted pursuant
to subdivision (a), shall be reported to the State Public Works
Board.
  SEC. 9.  Section 14255 of the Government Code is amended to read:
   14255.  Whenever provision is made by law for any project that is
not under the jurisdiction of the Department of Water Resources, the
Department of Boating and Waterways pursuant to Article 2.5
(commencing with Section 65) of Chapter 2 of Division 1 of the
Harbors and Navigation Code, the Department of Corrections and
Rehabilitation pursuant to Chapter 11 (commencing with Section 7000)
of Title 7 of Part 3 of the Penal Code, the High-Speed Rail
Authority, or the Department of General Services, the project shall
be under the sole charge and direct control of the Department of
Transportation.
  SEC. 10.  Section 14662 of the Government Code is amended to read:
   14662.  The Director of General Services may acquire any easements
or rights-of-way which the director determines to be necessary for
the proper utilization of real property owned or being acquired by
the state.
   This section does not apply to land, easements, or rights-of-way
to be acquired by the Department of Transportation or the High-Speed
Rail Authority.
  SEC. 11.  Section 14666 of the Government Code is amended to read:
   14666.  With the approval of the state agency concerned, the
director may grant and convey in the name of the state, easements and
rights-of-way across real property belonging to the state not used
for highway rights-of-way or high-speed rail rights-of-way, for those
purposes and upon that consideration and subject to those
conditions, limitations, restrictions, and reservations as the
director deems are in the interest of the state. All revenue received
in connection with the granting and conveying of those easements and
rights-of-way, including charges made for administrative costs,
shall be deposited in the General Fund for appropriation as provided
in Section 15863. Any expenditure in connection with the granting and
conveying of those easements and rights-of-way or investigating
proposed gifts of real property to the state may be allocated from
the appropriation made pursuant to Section 15863.
  SEC. 12.  Section 14666.6 of the Government Code is amended to
read:
   14666.6.  (a) With the approval of the state agency concerned, the
director shall negotiate in the name of the state, access to
state-owned property, not used for highway or high-speed rail
purposes, for those purposes and subject to those conditions,
limitations, restrictions, and reservations determined by the
director to be in the best interest of the state. To the extent
permitted under existing law, the director shall determine the amount
of consideration for, and means of access, which means shall
include, but not be limited to, any of the following: lease, permit,
or other form of providing a monetary or service consideration for
the access.
   (b) The Director of Transportation shall negotiate in the name of
the state, access to state-owned highway rights-of-way, for those
purposes and subject to those conditions, limitations, restrictions,
and reservations determined by the Director of Transportation to be
in the best interest of the state. To the extent permitted under
existing law, the Director of Transportation shall determine the
amount of consideration for, and means of access, which means shall
include, but not be limited to, any of the following: lease, permit,
or other form of providing a monetary or service consideration for
the access.
   (c) The High-Speed Rail Authority shall negotiate, in the name of
the state, access to state-owned high-speed rail rights-of-way for
those purposes and subject to those conditions, limitations,
restrictions, and reservations determined by the authority to be in
the best interest of the state. To the extent permitted under
existing law, the authority shall determine the amount of
consideration for that access, and any means of access, which means
shall include, but not be limited to, any of the following: lease,
permit, or other form of providing a monetary or service
consideration for the access.
   (d) This section applies to various telecommunications and
information technologies, including, but not limited to, voice data,
video, and fiber-optic technologies.
   (e) Any payments received under the provisions of this section for
a grant or conveyance through land or facilities controlled by the
Department of Transportation, including, but not limited to,
rights-of-way along the state highway system, shall be deposited in
the State Transportation Fund.
   (f) Any payments received under the provisions of this section for
a grant or conveyance through land or facilities controlled by the
High-Speed Rail Authority, including, but not limited to,
rights-of-way along the high-speed rail system, shall be deposited
with the authority for use in the development, improvement, and
maintenance of the high-speed rail system.
  SEC. 13.  Section 14666.8 of the Government Code is amended to
read:
   14666.8.  (a) The director shall, within 120 days of the operative
date of this section, compile and maintain an inventory of
state-owned real property that may be available for lease to
providers of wireless telecommunications services for location of
wireless telecommunications facilities. This inventory shall be the
state's sole inventory of state-owned real property available for
this purpose. The term "state-owned real property," as used in this
section, excludes property owned or managed by the Department of
Transportation, property owned or managed by the High-Speed Rail
Authority, and property subject to Section 7901 of the Public
Utilities Code.
   (b) The director shall provide, in a cost-effective manner, upon
payment of any applicable fee, a requesting party a copy of the
inventory.
   (c) On behalf of the state, the director may negotiate and enter
into an agreement to lease department-managed and state-owned real
property to any provider of wireless telecommunications services for
location of its facilities. A lease for this purpose shall do all of
the following:
   (1) Provide for fair market value to be paid by the provider of
wireless telecommunications service to the state to the extent
permitted under existing state law.
   (2) Designate a lease term that is acceptable to the director and
the state agency that has control over the property. The duration of
the initial lease term for any wireless facility may not exceed 10
years, and the lease may provide for a negotiated number of renewal
terms, not to exceed five years for each term.
   (3) Provide for the use of the wireless provider's facilities
located on the state-owned real property by any appropriate state
agency if technically, legally, aesthetically, and economically
feasible.
   (4) Facilitate, to the greatest extent possible, agreements among
providers of wireless telecommunications services for colocation of
their facilities on state-owned real property.
   (d) Nothing in this section alters any existing rights of
telegraph or telephone corporations pursuant to Section 7901 of the
Public Utilities Code.
   (e) Notwithstanding any other provision of law, any revenue
collected from a lease entered into pursuant to this section to use
property that was acquired with money from a fund other than the
General Fund shall be deposited into the fund from which the money
was obtained. Money received and deposited into a fund pursuant to
this section shall be available upon appropriation by the
Legislature, notwithstanding any other provision of law.
   (f) Before making any state-owned real property that is part of
the State Water Resources Development System, as described in Section
12931 of the Water Code, available for leasing under this section,
the director shall consult with the Department of Water Resources as
to whether the proposed location of a wireless telecommunication
facility is technically, legally, environmentally, and economically
feasible for wireless telecommunication purposes.
  SEC. 14.  Section 14667 of the Government Code is amended to read:
   14667.  With the approval of the state agency concerned, the
director may quitclaim in the name of the state, the right, title and
interest of the state in and to easements and rights-of-way owned by
the state, other than those acquired for highway purposes or for
high-speed rail purposes, which the director determines are no longer
needed for state purposes.
   (a) Unless the conveyance of the easement or right-of-way is made
to the federal government, or an agency thereof, or to a county,
city, district, or other local governmental agency of this state, the
director shall comply with the provisions of this subdivision. Prior
to the disposition of any easement or right-of-way owned by the
state pursuant to this section, notice thereof shall be published
pursuant to Section 6061 of the Government Code in a newspaper
published in the county in which the easement or right-of-way is
situated, and if there is no newspaper published in such county,
notice shall be published in a newspaper published in an adjoining
county and shall be posted in at least three public places in the
county in which the easement or right-of-way is situated, including
one posting on the real property in which the easement or
right-of-way is located.
   (b) If the easement or right-of-way was acquired by the state for
a price approximating its market value at the time of acquisition,
the director, when disposing of that easement or right-of-way, shall
make a reasonable effort to obtain as the price for the sale thereof
an amount approximately equivalent to the current market value at the
time of disposition.
  SEC. 15.  Section 10106 of the Public Contract Code is amended to
read:
   10106.  For purposes of this chapter:
   (a) "Department" means any of the following:
   (1) The Department of Water Resources as to any project under the
jurisdiction of that department.
   (2) The Department of Transportation as to any project under the
jurisdiction of that department.
   (3) The Department of Boating and Waterways as to any project
under the jurisdiction of that department pursuant to Article 2.5
(commencing with Section 65) of Chapter 2 of Division 1 of the
Harbors and Navigation Code.
   (4) The Department of Corrections and Rehabilitation with respect
to any project under its jurisdiction pursuant to Chapter 11
(commencing with Section 7000) of Title 7 of Part 3 of the Penal
Code.
   (5) The Military Department as to any project under the
jurisdiction of that department.
   (6) The High-Speed Rail Authority as to any project under the
jurisdiction of that authority.
   (7) The Department of General Services as to all other projects.
   (b) "Director" means the director of each department as defined
herein respectively, or the executive director in the case of the
High-Speed Rail Authority.
  SEC. 16.  Section 10107 of the Public Contract Code is amended to
read:
   10107.  Whenever provision is made by law for any project that is
not under the jurisdiction of the Department of Water Resources, the
Department of Boating and Waterways pursuant to Article 2.5
(commencing with Section 65) of Chapter 2 of Division 1 of the
Harbors and Navigation Code, the Department of Corrections and
Rehabilitation pursuant to Chapter 11 (commencing with Section 7000)
of Title 7 of Part 3 of the Penal Code, the Department of
Transportation, the High-Speed Rail Authority, or the Military
Department, the project shall be under the sole charge and direct
control of the Department of General Services.
  SEC. 17.  Chapter 4 (commencing with Section  185040)
  185400)  is added to Division 19.5 of the Public
Utilities Code, to read:
      CHAPTER 4.  RIGHTS-OF-WAY


    185040.   185400.   (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) 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) 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 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) 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) 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) 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) 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.
    185041.   185401.    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.
    185042.   185402.   The authority may
lease nonoperating right-of-way areas to municipalities or other
local agencies for public purposes, and may contribute toward the
cost of developing local parks and other recreational facilities on
those areas. The authority may accept as all or part of the
consideration for the lease or for the state contribution 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. Those leases
shall contain a provision that whenever the leased land is needed for
high-speed rail operating purposes the lease shall terminate. The
authority is authorized to classify portions of high-speed rail
rights-of-way as nonoperating.
    185043.   185403.   The authority may
acquire, by purchase, lease, or eminent domain, any property
necessary for the development and implementation of the state's
high-speed train program. The power of eminent domain shall be
exercised in accordance with Title 7 (commencing with Section
1230.010) of Part 3 of the Code of Civil Procedure.
    185044.   185404.   The authority may
lease to public agencies or private entities or individuals for any
term not to exceed 99 years the use of areas above or below operating
rights-of-way and portions of property not currently being used as
operating rights-of-way, subject to any reservations, restrictions,
and conditions that it deems necessary to ensure adequate protection
of the safety and adequacy of high-speed rail facilities and of
abutting or adjacent land uses. Prior to entering into any lease, the
authority shall determine that the proposed use is not in conflict
with the zoning regulations of the local government concerned. The
leases shall be made in accordance with procedures to be prescribed
by the authority, except that, in the cases of leases with private
entities or individuals, the leases shall be made only after
competitive bidding. The possibilities of entering into the leases,
and the consequent benefits to be derived therefrom, may be
considered by the authority in designing and constructing the
high-speed rail system. Revenues from the leases shall be deposited
with the authority for use in the development, improvement, and
maintenance of the high-speed rail system. 
   185405.  With respect to the powers granted to the authority
pursuant to this article, and pursuant to Sections 11005, 11007.1,
11011.13, 11011.23, 14255, 14662, 14666, 14666.6, 14666.8, and 14667
of the Government Code, the authority shall exercise those powers
pursuant to a contract between the authority and the Department of
Transportation, and the department shall carry out the
responsibilities relating to the exercise of those powers on behalf
of the authority pursuant to that contract.  
  SEC. 18.    This act shall not become operative
unless Assembly Bill No. 145 of the 2011-12 Regular Session is also
enacted and becomes operative.