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
AB 615
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Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093