California Legislature—2013–14 Regular Session

Assembly BillNo. 481


Introduced by Assembly Member Lowenthal

February 19, 2013


An act to amend Section 1245.210 of the Code of Civil Procedure, to amend Sections 11005, 11005.2, 11007.1, 11011.13, 13332.11, 13332.12, 14255, 14662, 14666, 14666.6, 14666.8, and 14667 of the Government Code, to amend Sections 10106 and 10107 of the Public Contract Code, and to add Chapter 4 (commencing with Section 185040) to Division 19.5 of the Public Utilities Code, relating to high-speed rail.

LEGISLATIVE COUNSEL’S DIGEST

AB 481, as introduced, Lowenthal. High-speed rail.

Existing law creates the High-Speed Rail Authority with specified powers and duties relative to development and implementation of a high-speed train system, including the acquisition of rights-of-way through purchase and eminent domain. Existing law, pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, approved by the voters as Proposition 1A at the November 4, 2008, general election, provides for the issuance of $9.95 billion for high-speed train capital projects and other associated purposes.

Existing law generally requires the approval of the Department of General Services before a state agency may acquire, hire, dispose of, or let real property in fee or in a lesser interest, subject to certain exceptions, including real property obtained for highway purposes by the Department of Transportation. Existing law requires the Department of General Services to inventory state-owned property, other than property owned by the Department of Transportation and certain other state agencies. Existing law provides that property acquired by the Department of Transportation for highway purposes and leased back for commercial or business uses to the former owner for a term exceeding 6 months may be insured for loss by fire at the request of the former owner with the premium for the insurance included in the rent.

This bill would enact similar exceptions and authorizations relative to real property obtained for high-speed rail purposes by the High-Speed Rail Authority. The bill would make various additional conforming changes. The bill would also enact new provisions governing acquisition or disposal of right-of-way property by the authority. The bill would require payments for leases or other conveyances of property controlled by the authority to be deposited with the authority for use in development, improvement, and maintenance of the high-speed rail system.

Existing law requires a resolution of necessity to be adopted by the governing body of a public entity before the entity may commence an eminent domain proceeding for the taking of property.

This bill would provide that the governing body in the case of a taking by the High-Speed Rail Authority is the authority.

Existing law generally requires the approval of the Department of Finance and the State Public Works Board before a state agency may expend funds from an appropriation for capital outlay purposes. These provisions do not apply to the Department of Transportation and certain other state agencies.

This bill would also make these provisions inapplicable to the High-Speed Rail Authority.

Existing law provides that the Department of General Services is the responsible agency for projects for various purposes under the Public Contract Code, except with respect to projects under the jurisdiction of other specified state agencies.

This bill would provide that the High-Speed Rail Authority is the responsible agency for projects under its jurisdiction.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 1245.210 of the Code of Civil Procedure
2 is amended to read:

3

1245.210.  

As used in this article, “governing body” means:

P3    1(a) In the case of a taking by a local public entity, the legislative
2body of the local public entity.

3(b) In the case of a taking by the Sacramento and San Joaquin
4Drainage District, the State Reclamation Board.

5(c) In the case of a taking by the State Public Works Board
6pursuant to the Property Acquisition Law (Part 11 (commencing
7with Section 15850) of Division 3 of Title 2 of the Government
8Code), the State Public Works Board.

9(d) In the case of a taking by the Department of Fish and Game
10pursuant to Section 1348 of the Fish and Game Code, the Wildlife
11Conservation Board.

12(e) In the case of a taking by the Department of Transportation
13(other than a taking pursuant to Section 21633 of the Public
14Utilities Code or Section 30100 of the Streets and Highways Code),
15the California Transportation Commission.

16(f) In the case of a taking by the Department of Transportation
17pursuant to Section 21633 of the Public Utilities Code, the
18California Transportation Commission.

19(g) In the case of a taking by the Department of Transportation
20pursuant to Section 30100 of the Streets and Highways Code, the
21California Transportation Commission.

22(h) In the case of a taking by the Department of Water
23Resources, the California Water Commission.

24(i) In the case of a taking by the University of California, the
25Regents of the University of California.

26(j) In the case of a taking by the State Lands Commission, the
27State Lands Commission.

28(k) In the case of a taking by Hastings College of Law, the board
29of directors of that college.

begin insert

30(l) In the case of a taking by the High-Speed Rail Authority, the
31High-Speed Rail Authority.

end insert
32

SEC. 2.  

Section 11005 of the Government Code is amended
33to read:

34

11005.  

(a) Unless the Legislature specifically provides that
35approval is not required, every gift or dedication to the state of
36personal property, or every gift to the state of real property in fee
37or in any lesser estate or interest, shall be approved by the Director
38of Finance, and every contract for the acquisition or hiring of real
39property in fee or in any lesser estate or interest, entered into by
40or on behalf of the state, shall be approved by the Director of
P4    1General Services. Any contract entered into in violation of this
2section is void. This section applies to any state agency that, by
3general or specific statute, is expressly or impliedly authorized to
4enter into transactions referred to in this section.

5(b) This section does not apply (1) to unconditional gifts of
6money, (2) to the acquisition or hiring by the Department of
7Transportation of real property in fee or in any lesser estate or
8interest for highway purposes, but does apply to the hiring by that
9department of office space in any office building, (3) to contracts
10entered into under the authority of Chapter 4 (commencing with
11Section 11770) of Part 3 of Division 2 of the Insurance Code, (4)
12to the receipt of donated, unencumbered personal property from
13private sources received in conjunction with the administration of
14the Federal Surplus Personal Property Program by the Department
15of General Services, (5) to the receipt of gifts of personal property
16in the form of interpretive or historical objects, each valued at
17fifteen thousand dollars ($15,000) or less, by the Department of
18Parks and Recreation,begin delete orend delete (6)begin insert toend insert the acceptance by the State Coastal
19Conservancy of offers to dedicate public accessways made pursuant
20to Division 20 (commencing with Section 30000) of the Public
21Resources Codebegin insert, or (7) to the acquisition or hiring by the
22High-Speed Rail Authority of real property in fee or in any lesser
23estate or interest for high-speed rail purposes, but does apply to
24the hiring by that authority of office space in any office buildingend insert
.

25

SEC. 3.  

Section 11005.2 of the Government Code is amended
26to read:

27

11005.2.  

Unless the Legislature specifically provides that
28approval by the Director of General Services is not required, every
29conveyance, contract, or agreement whereby an interest of the state
30in any real property is conveyed, demised, or let to any person,
31shall, before the conveyance, contract, or agreement is executed
32or entered into, be approved by the Director of General Services.
33Any conveyance, contract, or agreement executed or entered into
34in violation of this section is void. This section shall apply to any
35state agency which, by general or specific statute, is expressly or
36impliedly authorized to enter into transactions referred to in this
37section.

38This section does not apply to real property acquired by the
39Department of Transportation for highway purposesbegin insert, real property
40acquired by the High-Speed Rail Authority for high-speed rail
P5    1purposes,end insert
or real property administered by the State Lands
2Commission, the Controller, or the State Compensation Insurance
3Fund.

4

SEC. 4.  

Section 11007.1 of the Government Code is amended
5to read:

6

11007.1.  

begin insert(a)end insertbegin insertend insertThe Department of Transportation, when it has
7acquired title to any real property for highway purposes and leases
8begin delete suchend deletebegin insert thatend insert property for commercial or business uses to the former
9owner for a term exceeding six months, may secure insurance
10against the risk of damage or destruction by fire where the former
11owner requests this coverage and the premium therefor is included
12in the rental agreed to be paid.

begin insert

13(b) The High-Speed Rail Authority, when it has acquired title
14to any real property for high-speed rail purposes and leases that
15property for commercial or business uses to the former owner for
16a term exceeding six months, may secure insurance against the
17risk of damage or destruction by fire where the former owner
18requests this coverage and the premium therefor is included in the
19rental agreed to be paid.

end insert
20

SEC. 5.  

Section 11011.13 of the Government Code is amended
21to read:

22

11011.13.  

For purposes of Section 11011.15, the following
23definitions shall apply:

24(a) “Agency” means a state agency, department, division,
25bureau, board, commission, district agricultural association, and
26the California State University. “Agency” does not mean the
27Legislature, the University of California, the State Lands
28Commission,begin delete orend delete the Department of Transportationbegin insert, or the
29High-Speed Rail Authorityend insert
.

30(b) “Fully utilized” means that 100 percent of the property is
31being appropriately utilized by a program of an agency every
32business day of the year.

33(c) “Partially utilized” means one or more of the following:

34(1) Less than 100 percent of the property is appropriately utilized
35by a program of an agency.

36(2) The property is not used every business day of the year by
37an agency.

38(3) The property is used by other nonstate governmental entities
39or private parties.

P6    1(d) “Excess land” means property that is no longer needed for
2either an existing or ongoing state program or a function of an
3agency.

4

SEC. 6.  

Section 13332.11 of the Government Code is amended
5to read:

6

13332.11.  

(a) (1) Except as otherwise specified in paragraph
7(2), no funds appropriated for capital outlay may be expended by
8any state agency, including the University of California, the
9California State University, the California Community Colleges,
10and the Judicial Council until the Department of Finance and the
11State Public Works Board have approved preliminary plans for
12the project to be funded from a capital outlay appropriation.

13(2) Paragraph (1) shall not apply to any of the following:

14(A) Amounts for acquisition of real property in fee, or any other
15lesser interest.

16(B) Amounts for equipment or minor capital outlay projects.

17(C) Amounts appropriated for preliminary plans, surveys, and
18studies.

19(b) Notwithstanding subdivision (a), approvals by the State
20Public Works Board and the Department of Finance for the
21University of California and the California Community Colleges
22shall apply only to the allocation of state capital outlay funds
23appropriated by the Legislature, including land acquisition and
24equipment funds.

25(c) Any appropriated amounts for working drawings or
26construction where the working drawings or construction have
27been started by any state agency prior to approval of the
28preliminary plans by the State Public Works Board shall be reverted
29to the fund from which the appropriation was made, as approved
30by the Department of Finance. No major project for which a capital
31outlay appropriation is made shall be put out to bid until the
32working drawings have been approved by the Department of
33Finance. No substantial change shall be made to the approved
34preliminary plans or approved working drawings without written
35approval by the Department of Finance. Any proposed construction
36bid alternates shall be approved by the Department of Finance.

37(d) The Department of Finance shall approve the use of funds
38from a capital outlay appropriation for the purchase of any
39significant unit of equipment.

P7    1(e) The State Public Works Board may augment a major project
2in an amount of up to 20 percent of the total of the capital outlay
3appropriations for the project, irrespective of whether any such
4appropriation has reverted. For projects authorized through multiple
5fund sources, including, but not limited to, general obligation bonds
6and lease-revenue bonds, to the extent otherwise permissible, the
7Department of Finance shall have full authority to determine which
8of the fund sources will bear all or part of an augmentation. The
9board shall defer all augmentations in excess of 20 percent of the
10amount appropriated for each capital outlay project until the
11Legislature makes additional funds available for the specific
12project.

13(f) In addition to the powers provided by Section 15849.6, the
14State Public Works Board may further increase the additional
15amount in Section 15849.6 to include a reasonable construction
16reserve within the construction fund for any capital outlay project
17without augmenting the project. The amount of the construction
18reserve shall be within the 20 percent augmentation limitation.
19The board may use this amount to augment the project, when and
20if necessary, after the lease revenue bonds are sold to assure
21completion of the project. Upon completion of the project, any
22amount remaining in the construction reserve funds shall be used
23to offset rental payments.

24(g) Augmentations in excess of 10 percent of the amount
25appropriated for each capital outlay project shall be reported to
26the Chairperson of the Joint Legislative Budget Committee, or his
27or her designee, 20 days prior to board approval, or not sooner
28than whatever lesser time the chairperson, or his or her designee,
29may in each instance determine.

30(h) (1) The Department of Finance may change the
31administratively or legislatively approved scope for major capital
32outlay projects.

33(2) If the Department of Finance changes the approved scope
34pursuant to paragraph (1), the department shall report the changes
35and associated cost implications to the Chairperson of the Joint
36Legislative Budget Committee, the chairpersons of the respective
37fiscal committees, and the legislative advisers of the State Public
38Works Board 20 days prior to the proposed board action to
39recognize the scope change.

P8    1(i) The State Public Works Board shall defer action with respect
2to approval of an acquisition project, when it is determined that
3the estimated cost of the total acquisition project, as approved by
4the Legislature is in excess of 20 percent of the amount
5appropriated, unless it is determined that a lesser portion of the
6property is sufficient to meet the objectives of the project approved
7by the Legislature, and the Chairperson of the Joint Legislative
8Budget Committee, or his or her designee, is provided a 20-day
9prior notification of the proposed reductions in the acquisition
10project, or whatever lesser period the chairperson, or his or her
11designee, may in each instance determine.

12(j) The Department of Finance shall report to the Chairperson
13of the Joint Legislative Budget Committee, the chairpersons of the
14respective fiscal committees, and legislative advisers of the State
15Public Works Board 20 days prior to the proposed board approval
16of preliminary plans when it is determined that the estimated cost
17of the total capital outlay construction project is in excess of 20
18percent of the amount recognized by the Legislature.

19(k) Nothing in this section shall be construed to limit or control
20the Department of Transportationbegin insert, the High-Speed Rail Authority,end insert
21 or the California Exposition and State Fair in the expenditure of
22all funds appropriated tobegin delete the departmentend deletebegin insert any of these entitiesend insert for
23capital outlay purposes.

24

SEC. 7.  

Section 13332.12 of the Government Code is amended
25to read:

26

13332.12.  

(a) Any acquisition of land or other real property
27authorized in any appropriation, except an appropriation from the
28California Water Fundbegin delete andend deletebegin insert orend insert an appropriation to the Department
29of Transportationbegin insert or the High-Speed Rail Authorityend insert for capital
30outlay purposes, shall be subject to the provisions of the Property
31Acquisition Law. Nothing in this section shall be construed as
32exempting the California Coastal Commission from this section.

33(b) All property acquisitions, including those exempted pursuant
34to subdivision (a), shall be reported to the State Public Works
35Board.

36

SEC. 8.  

Section 14255 of the Government Code is amended
37to read:

38

14255.  

Whenever provision is made by law for any project
39begin delete whichend deletebegin insert thatend insert is not under the jurisdiction of the Department of Water
40Resources, the Department of Boating and Waterways pursuant
P9    1to Article 2.5 (commencing with Section 65) of Chapter 2 of
2Division 1 of the Harbors and Navigation Code, the Department
3of Correctionsbegin insert and Rehabilitationend insert pursuant to Chapter 11
4(commencing with Section 7000) of Title 7 of Part 3 of the Penal
5Code,begin insert the High-Speed Rail Authority,end insert or the Department of General
6Services, the project shall be under the sole charge and direct
7control of the Department of Transportation.

8

SEC. 9.  

Section 14662 of the Government Code is amended
9to read:

10

14662.  

The Director of General Services may acquire any
11easements or rights-of-way whichbegin delete heend deletebegin insert the directorend insert determines to
12be necessary for the proper utilization of real property owned or
13being acquired by the state.

14This section does not apply to land, easements, or rights-of-way
15to be acquired by the Department of Transportationbegin insert or the
16High-Speed Rail Authorityend insert
.

17

SEC. 10.  

Section 14666 of the Government Code is amended
18to read:

19

14666.  

With the approval of the state agency concerned, the
20director may grant and convey in the name of the state, easements
21and rights-of-way across real property belonging to the state not
22used for highway rights-of-waybegin insert or high-speed rail rights-of-wayend insert,
23forbegin delete suchend deletebegin insert thoseend insert purposes and uponbegin delete suchend deletebegin insert thatend insert consideration and
24subject tobegin delete suchend deletebegin insert thoseend insert conditions, limitations, restrictions, and
25reservations asbegin delete heend deletebegin insert the directorend insert deems are in the interest of the state.
26All revenue received in connection with the granting and conveying
27ofbegin delete suchend deletebegin insert thoseend insert easements and rights-of-way, including charges made
28for administrative costs, shall be deposited in the General Fund
29for appropriation as provided in Section 15863. Any expenditure
30in connection with the granting and conveying ofbegin delete saidend deletebegin insert thoseend insert
31 easements and rights-of-way or investigating proposed gifts of
32real property to the state may be allocated from the appropriation
33made pursuant to Section 15863.

34

SEC. 11.  

Section 14666.6 of the Government Code is amended
35to read:

36

14666.6.  

(a) With the approval of the state agency concerned,
37the director shall negotiate in the name of the state, access to
38state-owned property, not used for highwaybegin insert or high-speed railend insert
39 purposes, for those purposes and subject to those conditions,
40limitations, restrictions, and reservations determined by the director
P10   1to be in the best interest of the state. To the extent permitted under
2existing law, the director shall determine the amount of
3consideration for, and means of access, which means shall include,
4but not be limited to, any of the following: lease, permit, or other
5form of providing a monetary or service consideration for the
6access.

7(b) The Director of Transportation shall negotiate in the name
8of the state, access to state-owned highway rights-of-way, for those
9purposes and subject to those conditions, limitations, restrictions,
10and reservations determined by the Director of Transportation to
11be in the best interest of the state. To the extent permitted under
12existing law, the Director of Transportation shall determine the
13amount of consideration for, and means of access, which means
14shall include, but not be limited to, any of the following: lease,
15permit, or other form of providing a monetary or service
16consideration for the access.

begin insert

17(c) The High-Speed Rail Authority shall negotiate, in the name
18of the state, access to state-owned high-speed rail rights-of-way
19for those purposes and subject to those conditions, limitations,
20 restrictions, and reservations determined by the authority to be in
21the best interest of the state. To the extent permitted under existing
22law, the authority shall determine the amount of consideration for
23that access, and any means of access, which means shall include,
24but not be limited to, any of the following: lease, permit, or other
25form of providing a monetary or service consideration for the
26access.

end insert
begin delete

27(c)

end delete

28begin insert(d)end insert This section applies to various telecommunications and
29information technologies, including, but not limited to, voice data,
30video, and fiber-optic technologies.

begin delete

31(d)

end delete

32begin insert(e)end insert Any payments received under the provisions of this section
33for a grant or conveyance through land or facilities controlled by
34the Department of Transportation, including but not limited to
35rights-of-way along the state highway system, shall be deposited
36in the State Transportation Fund.

begin insert

37(f) Any payments received under the provisions of this section
38for a grant or conveyance through land or facilities controlled by
39the High-Speed Rail Authority, including, but not limited to,
40rights-of-way along the high-speed rail system, shall be deposited
P11   1with the authority for use in the development, improvement, and
2maintenance of the high-speed rail system.

end insert
3

SEC. 12.  

Section 14666.8 of the Government Code is amended
4to read:

5

14666.8.  

(a) The director shall, within 120 days of the
6operative date of this section, compile and maintain an inventory
7of state-owned real property that may be available for lease to
8providers of wireless telecommunications services for location of
9wireless telecommunications facilities. This inventory shall be the
10state’s sole inventory of state-owned real property available for
11this purpose. The term “state-owned real property,” as used in this
12section, excludes property owned or managed by the Department
13of Transportationbegin insert, property owned or managed by the High-Speed
14Rail Authority,end insert
and property subject to Section 7901 of the Public
15Utilities Code.

16(b) The director shall provide, in a cost-effective manner, upon
17payment of any applicable fee, a requesting party a copy of the
18inventory.

19(c) On behalf of the state, the director may negotiate and enter
20into an agreement to lease department-managed and state-owned
21real property to any provider of wireless telecommunications
22services for location of its facilities. A lease for this purpose shall
23do all of the following:

24(1) Provide for fair market value to be paid by the provider of
25wireless telecommunications service to the state to the extent
26permitted under existing state law.

27(2) Designate a lease term that is acceptable to the director and
28the state agency that has control over the property. The duration
29of the initial lease term for any wireless facility may not exceed
3010 years, and the lease may provide for a negotiated number of
31renewal terms, not to exceed five years for each term.

32(3) Provide for the use of the wireless provider’s facilities
33located on the state-owned real property by any appropriate state
34agency if technically, legally, aesthetically, and economically
35feasible.

36(4) Facilitate, to the greatest extent possible, agreements among
37providers of wireless telecommunications services for colocation
38of their facilities on state-owned real property.

P12   1(d) Nothing in this section alters any existing rights of telegraph
2or telephone corporations pursuant to Section 7901 of the Public
3Utilities Code.

4(e) Notwithstanding any other provision of law, any revenue
5collected from a lease entered into pursuant to this section to use
6property that was acquired with money from a fund other than the
7General Fund shall be deposited into the fund from which the
8money was obtained. Money received and deposited into a fund
9pursuant to this section shall be available upon appropriation by
10the Legislature, notwithstanding any other provision of law.

11(f) Before making any state-owned real property that is part of
12the State Water Resources Development System, as described in
13Section 12931 of the Water Code, available for leasing under this
14section, the director shall consult with the Department of Water
15Resources as to whether the proposed location of a wireless
16telecommunication facility is technically, legally, environmentally,
17and economically feasible for wireless telecommunication
18purposes.

19

SEC. 13.  

Section 14667 of the Government Code is amended
20to read:

21

14667.  

With the approval of the state agency concerned, the
22director may quitclaim in the name of the state, the right, title and
23interest of the state in and to easements and rights-of-way owned
24by the state, other than those acquired for highway purposesbegin insert or
25for high-speed rail purposesend insert
, whichbegin delete heend deletebegin insert the directorend insert determines are
26no longer needed for state purposes.

27(a) Unless the conveyance of the easement or right-of-way is
28made to the federal government, or an agency thereof, or to a
29county, city, district, or other local governmental agency of this
30state, the director shall comply with the provisions of this
31subdivision. Prior to the disposition of any easement or
32right-of-way owned by the state pursuant to this section, notice
33thereof shall be published pursuant to Section 6061 of the
34Government Code in a newspaper published in the county in which
35the easement or right-of-way is situated, and if there is no
36newspaper published in such county, notice shall be published in
37a newspaper published in an adjoining county and shall be posted
38in at least three public places in the county in which the easement
39or right-of-way is situated, including one posting on the real
40property in which the easement or right-of-way is located.

P13   1(b) If the easement or right-of-way was acquired by the state
2for a price approximating its market value at the time of acquisition,
3the director, whenbegin delete he disposesend deletebegin insert disposingend insert ofbegin delete suchend deletebegin insert thatend insert easement or
4right-of-waybegin insert,end insert shall make a reasonable effort to obtain as the price
5for the sale thereof an amount approximately equivalent to the
6current market value at the time ofbegin delete suchend delete disposition.

7

SEC. 14.  

Section 10106 of the Public Contract Code is amended
8to read:

9

10106.  

For purposes of this chapter:

10(a) “Department” means any of the following:

11(1) The Department of Water Resources as to any project under
12the jurisdiction of that department.

13(2) The Department of Transportation as to any project under
14the jurisdiction of that department.

15(3) The Department of Boating and Waterways as to any project
16under the jurisdiction of that department pursuant to Article 2.5
17(commencing with Section 65) of Chapter 2 of Division 1 of the
18Harbors and Navigation Code.

19(4) The Department of Corrections and Rehabilitation with
20respect to any project under its jurisdiction pursuant to Chapter 11
21(commencing with Section 7000) of Title 7 of Part 3 of the Penal
22Code.

23(5) The Military Department as to any project under the
24jurisdiction of that department.

begin insert

25(6) The High-Speed Rail Authority as to any project under the
26jurisdiction of that authority.

end insert
begin delete

27(6)

end delete

28begin insert(7)end insert The Department of General Services as to all other projects.

29(b) “Director” means the director of each department as defined
30herein respectivelybegin insert, or the executive director in the case of the
31High-Speed Rail Authorityend insert
.

32

SEC. 15.  

Section 10107 of the Public Contract Code is amended
33to read:

34

10107.  

Whenever provision is made by law for any project
35that is not under the jurisdiction of the Department of Water
36Resources, the Department of Boating and Waterways pursuant
37to Article 2.5 (commencing with Section 65) of Chapter 2 of
38Division 1 of the Harbors and Navigation Code, the Department
39of Corrections and Rehabilitation pursuant to Chapter 11
40(commencing with Section 7000) of Title 7 of Part 3 of the Penal
P14   1Code, the Department of Transportation,begin insert the High-Speed Rail
2Authority,end insert
or the Military Department, the project shall be under
3the sole charge and direct control of the Department of General
4Services.

5

SEC. 16.  

Chapter 4 (commencing with Section 185040) is
6added to Division 19.5 of the Public Utilities Code, to read:

7 

8Chapter  4. Rights-of-Way
9

 

10

185040.  

(a) If the authority determines that real property or
11an interest therein, previously or hereafter acquired by the state
12for high-speed rail purposes, is no longer necessary for those
13purposes, the authority may sell or exchange the real property or
14interest therein at fair market value in the manner set forth in this
15section.

16(b) The authority may sell the property to an adjoining
17landowner if it makes either of the following two findings:

18(1) (A) That the property is of a size or shape that it is below
19the average normal standard size and shape of other privately
20owned properties in the immediate neighborhood, and that if the
21property were sold to other than the adjoining owner, it would give
22rise to a land use development thereof that would be below and
23not consistent with the normal land use of other properties in that
24neighborhood, (B) that the sale of the property to a party other
25than the adjoining owner may cause an undue or unfair hardship
26to the adjoining owner in the normal land use development or
27operation of his or her property, (C) that the property considered
28as part of the adjoining property would have a higher and better
29use than under separate ownership, and (D) that the fair market
30value of the property considered as part of the adjoining property
31would be higher than under separate ownership.

32(2) That the sale of the excess parcel to other than the adjoining
33owner would deprive the adjoining owner of an existing vested
34right of access to a public highway and thereby create a possible
35cause of action against the authority or the state.

36A sale to an adjoining landowner pursuant to this subdivision
37may be by contract to sell or trust deed. The payment period in a
38contract of sale or sale by trust deed shall not extend longer than
3910 years from the time the contract of sale or trust deed is executed,
40and a transaction involving a contract of sale or sale by trust deed
P15   1to private parties shall require a downpayment of at least 30 percent
2of the purchase price.

3(c) The authority may sell the property to municipalities or other
4local agencies at their request, without calling for competitive bids,
5at a price representing the fair market value thereof, and upon a
6determination that the intended use is for a public purpose.

7(d) If it is improved property, the property may be sold to a
8former owner who has remained in occupancy, or to a residential
9tenant of a tenure of five years or more with all rent obligations
10current or paid in full.

11(e) Any real property or interest therein may in like manner be
12exchanged, either as whole or part consideration, for any other
13real property or interest therein as needed for high-speed rail
14purposes. This provision does not authorize exchanges where the
15value of the state-owned property exceeds the value of the property
16the authority seeks to acquire, unless the excess value is incidental
17and subdivision of the state-owned property, in order to produce
18a smaller parcel of equal value to the value of the property the
19authority seeks to acquire, would reduce the total value of the
20state-owned property.

21(f) Except as otherwise provided in this section, property shall
22be sold either by receipt of competitive sealed bids, or at public
23auction, whichever method is determined by the authority to be
24more likely to achieve the higher sales price.

25

185041.  

The authority may sell or lease excess right-of-way
26parcels to municipalities or other local agencies for public purposes,
27and may accept as all or part of the consideration for the sale or
28lease any substantial benefits the state will derive from the
29municipality or other local agency’s undertaking maintenance or
30landscaping costs that would otherwise be the obligation of the
31state.

32

185042.  

The authority may lease nonoperating right-of-way
33areas to municipalities or other local agencies for public purposes,
34and may contribute toward the cost of developing local parks and
35other recreational facilities on those areas. The authority may
36accept as all or part of the consideration for the lease or for the
37state contribution any substantial benefits the state will derive from
38the municipality or other local agency’s undertaking maintenance
39or landscaping costs that would otherwise be the obligation of the
40state. Those leases shall contain a provision that whenever the
P16   1leased land is needed for high-speed rail operating purposes the
2lease shall terminate. The authority is authorized to classify
3portions of high-speed rail rights-of-way as nonoperating.

4

185043.  

The authority may acquire, by purchase, lease, or
5eminent domain, any property necessary for the development and
6implementation of the state’s high-speed train program. The power
7of eminent domain shall be exercised in accordance with Title 7
8(commencing with Section 1230.010) of Part 3 of the Code of
9Civil Procedure.

10

185044.  

The authority may lease to public agencies or private
11entities or individuals for any term not to exceed 99 years the use
12of areas above or below operating rights-of-way and portions of
13property not currently being used as operating rights-of-way,
14subject to any reservations, restrictions, and conditions that it
15deems necessary to ensure adequate protection of the safety and
16adequacy of high-speed rail facilities and of abutting or adjacent
17land uses. Prior to entering into any lease, the authority shall
18determine that the proposed use is not in conflict with the zoning
19regulations of the local government concerned. The leases shall
20be made in accordance with procedures to be prescribed by the
21authority, except that, in the cases of leases with private entities
22or individuals, the leases shall be made only after competitive
23 bidding. The possibilities of entering into the leases, and the
24consequent benefits to be derived therefrom, may be considered
25by the authority in designing and constructing the high-speed rail
26system. Revenues from the leases shall be deposited with the
27authority for use in the development, improvement, and
28maintenance of the high-speed rail system.



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