BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1511
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          ASSEMBLY THIRD READING
          AB 1511 (Bradford)
          As Amended May 14, 2012
          Majority vote 

           JUDICIARY           10-0                                        
           
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          |Ayes:|Feuer, Wagner, Atkins,    |     |                          |
          |     |Dickinson, Gorell, Huber, |     |                          |
          |     |Jones, Monning,           |     |                          |
          |     |Wieckowski, Bonnie        |     |                          |
          |     |Lowenthal                 |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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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 available to the public via the 
            National Pipeline Mapping System (NPMS) Internet Web site 
            maintained by the United States Department of Transportation 
            at  http://www.npms.phmsa.dot.gov/  .  To seek further 
            information about possible transmission pipelines near the 
            property, you may contact your local gas utility or other 
            pipeline operators in the area.  Contact information for 
            pipeline operators is searchable by ZIP code and county on the 
            NPMS Internet Web site.  

          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 








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            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.  

          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.  

          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.  

          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.  

          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.  

           FISCAL EFFECT  :  None
           








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          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 researching the potential presence of gas 
          pipelines in the vicinity of the property, if they so wish.

          The bill requires real property sellers to provide a general 
          consumer-friendly notice to prospective purchasers about how 
          they can seek out helpful information about possible 
          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 bill provides 
          that the seller or broker is not required to provide any related 
          information in addition to that contained in the notice, and 
          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.

          The NPMS Web site 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 Web 
          site'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 Web site 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.  


           Analysis Prepared by  :    Anthony Lew / JUD. / (916) 319-2334 

                                                                FN: 0003622








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