BILL ANALYSIS Ó
AB 1511
Page 1
Date of Hearing: May 8, 2012
ASSEMBLY COMMITTEE ON JUDICIARY
Mike Feuer, Chair
AB 1511 (Bradford) - As Amended: April 9, 2012
VOTE ONLY (As Proposed to Be Amended)
SUBJECT : REAL PROPERTY: TRANSMISSION PIPELINES
KEY ISSUE : SHOULD PROSPECTIVE REAL PROPERTY BUYERS RECEIVE A
HELPFUL NOTICE MODELED AFTER THE MEGAN'S LAW NOTICE INFORMING
THEM HOW THEY CAN EASILY OBTAIN INFORMATION ABOUT THE LOCATION
OF GAS AND HAZARDOUS LIQUID TRANSMISSION PIPELINES AND OPERATORS
SHOULD THEY WISH TO OBTAIN SUCH INFORMATION?
FISCAL EFFECT : As currently in print this bill is keyed
non-fiscal.
SYNOPSIS
This non-controversial bill, as proposed to be amended, is a
helpful response to the 2010 explosion of a gas pipeline in San
Bruno whose existence, the author notes, was unknown to many
affected property owners until it exploded. After many
productive discussions, the author has proposed to amend the
bill as follows. As proposed to be amended, the bill now has no
known opposition. The bill, as proposed to be amended, simply
requires a general consumer-friendly notice that informs the
transferee about the existence of the federal NPMS database
containing information about the locations of gas and hazardous
liquid transmission pipelines and the contact information of the
operators of those pipelines. The new disclosure requirement is
modeled after the approach embodied by the current Megan's
Law-related disclosure (Civil Code 2079.10a), which also
involves a database of location-based information (albeit with
respect to registered sex offenders.) This bill similarly
provides that upon delivery of the specified notice, the seller
or broker is not required to provide additional information.
The proposed amendments continue to garner the support of First
American, and have resulted in the California Association of
Realtors switching from "no position" to official support of the
bill. In addition, the proposed amendments have caused
Disclosure Source and Property ID, who previously opposed the
bill, to now take a position of support.
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SUMMARY : Requires real estate sale contracts to include a
specified notice informing the buyer about the existence of a
database where information about transmission pipelines can be
obtained. Specifically, this bill :
1)Requires every contract for the sale of residential real
property entered into on or after July 1, 2013, to contain, in
not less than 8-point type, the following notice:
NOTICE REGARDING GAS AND HAZARDOUS LIQUID TRANSMISSION
PIPELINES
This notice is being provided simply to inform you that
information about general location of gas and hazardous liquid
transmission pipelines is made available to the public via the
National Pipeline Mapping System (NPMS) web site maintained by
the U.S. Department of Transportation at
https://www.npms.phmsa.dot.gov/ . To seek further information
about possible transmission pipelines near the property, it is
recommended you contact your local gas utility or other
pipeline operators in your area. Contact information for
pipeline operators is searchable by zip code and county on the
NPMS website above.
2)Provides that, upon delivery of the above notice to the
transferee of the real property, the seller or broker is not
required to provide information in addition to that contained
in the notice. Further provides that the information in the
notice shall be deemed to be adequate to inform the transferee
about the existence of the NPMS database containing
information about the locations of gas and hazardous liquid
transmission pipelines.
3)Clarifies that nothing in these provisions shall alter any
existing duty of the seller or broker under any other statute
or decisional law.
EXISTING LAW :
1)Requires a seller's real estate broker to conduct a reasonably
competent and diligent visual inspection of a property offered
for sale, and to disclose to potential buyers any facts
revealed that would materially affect the value or
desirability of the property. (Civil Code Section 2079. All
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further references are to this code unless otherwise stated.)
2)Requires every lease or rental agreement for residential real
property entered into on or after July 1, 1999, and every
contract for the sale of residential real property comprised
of one to four dwelling units entered into on or after that
date, to contain a specified notice regarding the proximity of
registered sex offenders to the subject property. (Section
2079.10a(a).)
3)Provides that information in the above notice shall be deemed
to be adequate to inform the lessee or transferee about the
existence of a statewide database of the locations of
registered sex offenders and information from the database
regarding the locations. (Section 2079.10a(b).)
4)Requires the seller of residential real property of one to
four dwelling units to provide the Real Estate Transfer
Disclosure Statement to prospective buyers as soon as
practicable before transfer, or the execution of a sale
contract, as applicable. (Section 1102.3.)
5)Provides that the delivery of any information required to be
disclosed upon transfer of residential property to a
prospective transferee, as specified, shall relieve the
transferor or any listing or selling agent of any further duty
with respect to that item of information. (Section
1102.4(b).)
COMMENTS : According to the author, this bill is in response to
numerous gas transmission pipeline issues over the last few
years, most notably the tragedy that occurred in September 2010
when a natural gas pipeline owned and operated by Pacific Gas &
Electric (PG&E) ruptured and exploded in San Bruno. The author
contends that, prior to the San Bruno incident, many affected
property owners were unaware of the existence of the
transmission pipeline that exploded, and that no state law
currently provides helpful information to assist prospective
property buyers in getting more information about the potential
presence of gas pipelines in the vicinity of the property.
Background on the National Pipeline Mapping System. As proposed
to be amended, the bill requires real property sellers to
provide helpful information to prospective purchasers about how
they can seek out helpful information about possible
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transmission pipelines in the vicinity of the area. The
required notice informs the recipient that "information about
general location of gas and hazardous liquid transmission
pipelines is made available to the public via the National
Pipeline Mapping System (NPMS) web site." The NPMS website is
accessible to the general public and is maintained by the
federal Pipeline and Hazardous Material Administration (PHMA),
within the Department of Transportation. Information in NPMS
reflects what has been submitted to PHMA by pipeline operators
pursuant to federal law. Among the website's features are a map
viewer and a database of contact information for gas utilities
and pipeline operators. By clicking on the link reading "Find
Who's Operating Pipelines in Your Area," the website user can
search by state, county and zip code to produce a list
displaying a contact person's name, address, phone number, fax
number, and email address for each pipeline operator that is
identified by the search.
Author's proposed amendments. After discussions with
stakeholders and Committee counsel, the author has proposed to
amend the bill so it now simply requires a general
consumer-friendly notice that informs the prospective purchaser
about the existence of the NPMS database containing information
about the locations of gas and hazardous liquid transmission
pipelines and the contact information of the operators of those
pipelines. The bill provides that in providing this notice, the
seller or broker is not required to provide any related
information in addition to that contained in the notice.
As proposed to be amended, the bill no longer requires the
report to include a map showing the pipeline as depicted on the
NPMS website. It is believed that this amendment may be
sufficient to address the concerns of many of the dozens of
individuals who wrote to the Committee on this primary point.
Pending Related Legislation: SB 1000 (Yee) seeks to require
Public Utility Commission investigation orders, recommendations,
and accident reports to be made publicly available, pursuant to
the California Public Records Act. This bill is scheduled to be
heard by the Senate Appropriations Committee on May 14, 2012.
AB 578 (Hill) seeks to require the Public Utilities Commission
to implement those recommendations of the National
Transportation Safety Board (NTSB) regarding natural gas
pipeline safety that the PUC determines are appropriate. This
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bill is awaiting hearing in the Senate Energy & Utilities
Committee.
REGISTERED SUPPORT / OPPOSITION :
Support (as proposed to be amended)
California Association of Realtors
First American Real Estate Disclosures (FARED)
Disclosure Source
Property ID
Oppose (as proposed to be amended)
None on file
Analysis Prepared by : Anthony Lew / JUD. / (916) 319-2334