BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 615
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          Date of Hearing:   April 25, 2011

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
               AB 615 (Bonnie Lowenthal) - As Amended:  April 25, 2011

           SUBJECT  :  California High-Speed Rail Authority - rights-of-way 
          powers

           SUMMARY  :  Aligns the authority of the California High-Speed Rail 
          Authority (HSRA) for the purchase of property, easements, and 
          other property rights consistent with the authorities of other 
          state entities.  Further, provides authorities for property 
          disposal, leasing, rental, and management, as well as 
          establishes where revenues from these activities will be 
          deposited.  Authorizes alternate processes for the HSRA separate 
          from the real estate procurement processes and approvals from 
          the Department of General Services (DGS), the State Public Works 
          Board (SPWB), and the Department of Finance (DOF).  
          Specifically,  this bill  :  

          1)Aligns the authority of HSRA to purchase of property, 
            easements, and other property rights consistent with the 
            authorities of other state entities, such as the Department of 
            Transportation (Caltrans) and the Department of Water 
            Resources (DWR).  

          2)Authorizes HSRA, 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, to secure insurance against the risk of 
            damage or destruction by fire where the former owner requests 
            this coverage, with the premium included in the rental 
            agreement.  This is similar to the authority conferred upon 
            the Caltrans.  

          3)Provides an exemption, similar to the exemptions accorded to 
            Caltrans, the University of California, State Lands 
            Commission, and the Legislature, from the property inventory 
            reporting to DGS.  

          4)Accords similar treatment to HSRA from the provisions of the 
            state's property acquisition law, that provides exceptions to 
            California Water Project and Caltrans.  









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          5)Provides that Caltrans does not have sole charge and direct 
            control of HSRA projects.  

          6)Prohibits DGS from granting easements or acquiring 
            rights-of-way across the property of the HSRA.  

          7)Authorizes the HSRA to negotiate, in the name of the state, 
            access to rights-of-way it owns, including the value of the 
            right of access.  The revenues received to be deposited with 
            HSRA for use in the development, improvement, and maintenance 
            of the high-speed rail system.  

          8)Separates HSRA's role from DGS in terms of state quitclaims 
            and the DGS role in public contracting for projects.  

          9)Similar to the authority granted to the State Lands 
            Commission, authorizes HSRA to exercise property takings.  

          10)Authorizes HSRA to lease property for any term not to exceed 
            99 years, similar to authority conferred to Caltrans.  

           EXISTING LAW  :  

          1)Enacts the Safe, Reliable High-Speed Passenger Train Bond Act 
            for the 21st Century (High-Speed Rail Bond Act).  The 
            High-Speed Rail Bond Act, approved as Proposition 1A in 
            November 2008, provides $9.95 billion in general obligation 
            bond authority to fund the planning and construction of a 
            high-speed passenger train system and complementary 
            improvements to other specified rail systems in the state.  
            The law authorizes the HSRA bond funds to be used for "all 
            activities necessary for acquisition of interests in real 
            property and rights-of-way and improvement" as well as 
            relocation assistance for displaced property owners and 
            occupants.  Places a cap on the amount of such funds expended. 
             Authorizes HSRA to contract with Caltrans for right-of-way 
            activities.  Requires HSRA to use established processes for 
            right-of-way acquisition pursuant to the state's public 
            acquisition law.  

          2)Requires every gift or dedication to the state of personal or 
            real property to be approved by DOF and every contract for the 
            acquisition or hiring of real property is to be approved by 
            DGS.  Exempts Caltrans, State Compensation Insurance Fund, 
            Department of Parks and Recreation, and State Coastal 








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            Conservancy from these provisions as specified.  

          3)Requires the approval of DGS before a state agency may 
            acquire, or dispose, of real property but exempts real 
            property obtained for highway purposes by Caltrans, State 
            Lands Commission, the Controller, or the State Compensation 
            Insurance Fund.  

          4)Authorizes Caltrans, 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, to secure insurance against the risk of 
            damage or destruction by fire where the former owner requests 
            this coverage, with the premium included in the rental 
            agreement.  

          5)Requires DGS to develop an inventory of state property.  
            Excludes from that inventory the Legislature, the University 
            of California, the State Lands Commission, and Caltrans.  
            Requires these entities, with the exception of the 
            Legislature, to provide a separate submittal to DGS.  

          6)Requires state agencies to get approvals of DOF or SPWB when 
            expending funds appropriated for capital outlay purposes, with 
            the exceptions for Caltrans and the California Exposition and 
            State Fair.  

          7)Requires any acquisition of land or other real property 
            authorized in any appropriation, except an appropriation from 
            the California Water Fund or to Caltrans, to be subject to the 
            provisions of the Property Acquisition Law.  

          8)Requires Caltrans to have sole charge and direct control over 
            projects that are not under the jurisdiction of the Department 
            of Water Resources, the Department of Boating and Waterways, 
            the Department of Corrections and Rehabilitation, or the 
            Department of General Services.  

          9)Authorizes DGS to acquire or grant easements or rights-of-way 
            for the proper utilization of real property owned or being 
            acquired by the state, with the exception of Caltrans property 
            to be acquired or owned.  

          10)Requires DGS to negotiate, in the name of the state, access 
            to right-of-way it owns, including the value of the right of 








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            access.  Exempts properties involving Caltrans.  

          11)With the exception of state highways, authorizes DGS to 
            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.  

          12)Requires DGS to have sole charge and direct control of 
            projects excluding those projects undertaken by the Department 
            of Water Resources, Caltrans, the Department of Boating and 
            Waterways, the Department of Corrections and Rehabilitation, 
            and the Military Department.  

          13)Specifies general HSRA powers and duties relative to 
            development and implementation of the project, including the 
            acquisition of rights-of-way through purchase and eminent 
            domain.  

          14)Authorizes a public entity to exercise the power of eminent 
            domain only if it has adopted a resolution of necessity that 
            meets the specified requirements.  

          15)Authorizes Caltrans to enter into leases with public agencies 
            or private entities for any term not to exceed 99 years.  

          16)Requires that, no later than 90 days prior to the submittal 
            to the Legislature and the Governor of the initial request for 
            appropriation of state bond funds, the HSRA shall have 
            approved and submitted to DOF, the peer review group, and 
            specified legislative committees, a detailed funding plan for 
            that corridor or usable segment.   

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  Following the passage of the High-Speed Rail Bond 
          Act, HSRA is transitioning from a small study and planning 
          organization to a multi-billion dollar engineering and 
          construction entity.  Subsequent to the approvals of federal and 
          state environmental documents for their central valley corridor 
          project and as HSRA enters the project construction phase, the 
          HSRA will be engaged in surveying the real property alignment 
          for the high-speed rail train trackage.  As that stage of the 
          project is approaching, this bill will ensure that property 
          acquisition procedures and requirements are in place that will 
          protect the interests of the State of California as well as 








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          private individuals.  

          This bill will conform the HSRA's authority to that of Caltrans 
          and other large state agencies that develop large construction 
          projects.  According to HSRA writing in support of this bill, 
          "The current process in place is arduous and, if unchanged by 
          legislation, could seriously jeopardize the project's schedule 
          and cost.  In order to remain on track and fulfill the promise 
          of high-speed rail to the people of California, it is essential 
          that the process by which the Authority obtains right-of-way be 
          appropriate and in line with the needs of successful project 
          delivery.  Treating the Authority similarly to the state 
          Department of Transportation regarding the process of property 
          acquisition is appropriate."  
           Related bills  :  SB 455 (Alan Lowenthal) of 2009, as passed in 
          the Senate had similar right-of-way provisions as contained in 
          this bill.  SB 455 passed out of the Senate with bipartisan 
          support but was later amended in the Assembly to delete the 
          right-of-way provisions, leaving the Senate confirmation of HSRA 
          board members as the remaining focus of bill.  That bill was 
          ultimately vetoed by Governor Schwarzenegger.  

          AB 1375 (Galgiani) of 2009, would have re-established HSRA as 
          the Department of High-Speed Trains, along with other provisions 
          authorizing it to acquire property.  That bill was held in the 
          Senate Transportation and Housing Committee due to the 
          reorganization provisions.  

          AB 153 (Ma) Chapter 226, Statutes of 2010, would have clarified 
          HSRA's ability to exercise eminent domain power, authorized it 
          to employ its own legal staff or to contract with other state 
          agencies for legal services, and would have made changes to its 
          authority governing project development.  Those provisions 
          pertaining to HSRA were deleted in the Senate, changing AB 153 
          into a water bond bill that was subsequently signed into law.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California High-Speed Rail Authority
           
          Opposition 
           
          None on file








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          Analysis Prepared by  :   Ed Imai / TRANS. / (916) 319-2093