BILL ANALYSIS Ó AB 1511 Page 1 ASSEMBLY THIRD READING AB 1511 (Bradford) As Amended May 14, 2012 Majority vote JUDICIARY 10-0 ----------------------------------------------------------------- |Ayes:|Feuer, Wagner, Atkins, | | | | |Dickinson, Gorell, Huber, | | | | |Jones, Monning, | | | | |Wieckowski, Bonnie | | | | |Lowenthal | | | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- 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 AB 1511 Page 2 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 AB 1511 Page 3 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 AB 1511 Page 4