Amended in Assembly April 1, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 481


Introduced by Assembly Member Lowenthal

February 19, 2013


An act to amendbegin delete Section 1245.210 of the Code of Civil Procedure, to amendend delete Sectionsbegin delete 11005, 11005.2,end delete 11007.1,begin delete 11011.13, 13332.11, 13332.12,end delete 14255, 14662, 14666, 14666.6, 14666.8, and 14667 of the Government Code,begin delete to amend Sections 10106 and 10107 of the Public Contract Code,end delete 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 amended, 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 depositedbegin delete with the authority for use in development, improvement, and maintenance of the high-speed rail systemend deletebegin insert in the High-Speed Rail Property Fund created by the bill, and would provide that the funds shall be available to the authority upon appropriation by the Legislature for specified purposesend insert.

begin delete

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.

end delete
begin delete

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

end delete
begin delete

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.

end delete
begin delete

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

end delete
begin delete

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.

end delete
begin delete

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

end delete

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

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

begin delete
P3    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:

4(a) In the case of a taking by a local public entity, the legislative
5body of the local public entity.

6(b) In the case of a taking by the Sacramento and San Joaquin
7Drainage District, the State Reclamation Board.

8(c) In the case of a taking by the State Public Works Board
9pursuant to the Property Acquisition Law (Part 11 (commencing
10with Section 15850) of Division 3 of Title 2 of the Government
11Code), the State Public Works Board.

12(d) In the case of a taking by the Department of Fish and Game
13pursuant to Section 1348 of the Fish and Game Code, the Wildlife
14Conservation Board.

15(e) In the case of a taking by the Department of Transportation
16(other than a taking pursuant to Section 21633 of the Public
17Utilities Code or Section 30100 of the Streets and Highways Code),
18the California Transportation Commission.

19(f) In the case of a taking by the Department of Transportation
20pursuant to Section 21633 of the Public Utilities Code, the
21California Transportation Commission.

22(g) In the case of a taking by the Department of Transportation
23pursuant to Section 30100 of the Streets and Highways Code, the
24California Transportation Commission.

25(h) In the case of a taking by the Department of Water
26Resources, the California Water Commission.

27(i) In the case of a taking by the University of California, the
28Regents of the University of California.

29(j) In the case of a taking by the State Lands Commission, the
30State Lands Commission.

31(k) In the case of a taking by Hastings College of Law, the board
32of directors of that college.

33(l) In the case of a taking by the High-Speed Rail Authority, the
34High-Speed Rail Authority.

35

SEC. 2.  

Section 11005 of the Government Code is amended
36to read:

37

11005.  

(a) Unless the Legislature specifically provides that
38approval is not required, every gift or dedication to the state of
39personal property, or every gift to the state of real property in fee
40or in any lesser estate or interest, shall be approved by the Director
P4    1of Finance, and every contract for the acquisition or hiring of real
2property in fee or in any lesser estate or interest, entered into by
3or on behalf of the state, shall be approved by the Director of
4General Services. Any contract entered into in violation of this
5section is void. This section applies to any state agency that, by
6general or specific statute, is expressly or impliedly authorized to
7enter into transactions referred to in this section.

8(b) This section does not apply (1) to unconditional gifts of
9money, (2) to the acquisition or hiring by the Department of
10Transportation of real property in fee or in any lesser estate or
11interest for highway purposes, but does apply to the hiring by that
12department of office space in any office building, (3) to contracts
13entered into under the authority of Chapter 4 (commencing with
14Section 11770) of Part 3 of Division 2 of the Insurance Code, (4)
15to the receipt of donated, unencumbered personal property from
16private sources received in conjunction with the administration of
17the Federal Surplus Personal Property Program by the Department
18of General Services, (5) to the receipt of gifts of personal property
19in the form of interpretive or historical objects, each valued at
20fifteen thousand dollars ($15,000) or less, by the Department of
21Parks and Recreation, (6) to the acceptance by the State Coastal
22Conservancy of offers to dedicate public accessways made pursuant
23to Division 20 (commencing with Section 30000) of the Public
24Resources Code, or (7) to the acquisition or hiring by the
25High-Speed Rail Authority of real property in fee or in any lesser
26estate or interest for high-speed rail purposes, but does apply to
27the hiring by that authority of office space in any office building.

28

SEC. 3.  

Section 11005.2 of the Government Code is amended
29to read:

30

11005.2.  

Unless the Legislature specifically provides that
31approval by the Director of General Services is not required, every
32conveyance, contract, or agreement whereby an interest of the state
33in any real property is conveyed, demised, or let to any person,
34shall, before the conveyance, contract, or agreement is executed
35or entered into, be approved by the Director of General Services.
36Any conveyance, contract, or agreement executed or entered into
37in violation of this section is void. This section shall apply to any
38state agency which, by general or specific statute, is expressly or
39impliedly authorized to enter into transactions referred to in this
40section.

P5    1This section does not apply to real property acquired by the
2Department of Transportation for highway purposes, real property
3acquired by the High-Speed Rail Authority for high-speed rail
4purposes, or real property administered by the State Lands
5Commission, the Controller, or the State Compensation Insurance
6Fund.

end delete
7

begin deleteSEC. 4.end delete
8begin insertSECTION 1.end insert  

Section 11007.1 of the Government Code is
9amended to read:

10

11007.1.  

(a) The Department of Transportation, when it has
11acquired title to any real property for highway purposes and leases
12that property for commercial or business uses to the former owner
13for a term exceeding six months, may secure insurance against the
14risk of damage or destruction by fire where the former owner
15requests this coverage and the premium therefor is included in the
16rental agreed to be paid.

17(b) The High-Speed Rail Authority, when it has acquired title
18to any real property for high-speed rail purposes and leases that
19property for commercial or business uses to the former owner for
20a term exceeding six months, may secure insurance against the
21risk of damage or destruction by fire where the former owner
22requests this coverage and the premium therefor is included in the
23rental agreed to be paid.

begin delete
24

SEC. 5.  

Section 11011.13 of the Government Code is amended
25to read:

26

11011.13.  

For purposes of Section 11011.15, the following
27definitions shall apply:

28(a) “Agency” means a state agency, department, division,
29bureau, board, commission, district agricultural association, and
30the California State University. “Agency” does not mean the
31Legislature, the University of California, the State Lands
32Commission, the Department of Transportation, or the High-Speed
33Rail Authority.

34(b) “Fully utilized” means that 100 percent of the property is
35being appropriately utilized by a program of an agency every
36business day of the year.

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

38(1) Less than 100 percent of the property is appropriately utilized
39by a program of an agency.

P6    1(2) The property is not used every business day of the year by
2an agency.

3(3) The property is used by other nonstate governmental entities
4or private parties.

5(d) “Excess land” means property that is no longer needed for
6either an existing or ongoing state program or a function of an
7agency.

8

SEC. 6.  

Section 13332.11 of the Government Code is amended
9to read:

10

13332.11.  

(a) (1) Except as otherwise specified in paragraph
11(2), no funds appropriated for capital outlay may be expended by
12any state agency, including the University of California, the
13California State University, the California Community Colleges,
14and the Judicial Council until the Department of Finance and the
15State Public Works Board have approved preliminary plans for
16the project to be funded from a capital outlay appropriation.

17(2) Paragraph (1) shall not apply to any of the following:

18(A) Amounts for acquisition of real property in fee, or any other
19lesser interest.

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

21(C) Amounts appropriated for preliminary plans, surveys, and
22studies.

23(b) Notwithstanding subdivision (a), approvals by the State
24Public Works Board and the Department of Finance for the
25University of California and the California Community Colleges
26shall apply only to the allocation of state capital outlay funds
27appropriated by the Legislature, including land acquisition and
28equipment funds.

29(c) Any appropriated amounts for working drawings or
30construction where the working drawings or construction have
31been started by any state agency prior to approval of the
32preliminary plans by the State Public Works Board shall be reverted
33to the fund from which the appropriation was made, as approved
34by the Department of Finance. No major project for which a capital
35outlay appropriation is made shall be put out to bid until the
36working drawings have been approved by the Department of
37Finance. No substantial change shall be made to the approved
38preliminary plans or approved working drawings without written
39approval by the Department of Finance. Any proposed construction
40bid alternates shall be approved by the Department of Finance.

P7    1(d) The Department of Finance shall approve the use of funds
2from a capital outlay appropriation for the purchase of any
3significant unit of equipment.

4(e) The State Public Works Board may augment a major project
5in an amount of up to 20 percent of the total of the capital outlay
6appropriations for the project, irrespective of whether any such
7appropriation has reverted. For projects authorized through multiple
8fund sources, including, but not limited to, general obligation bonds
9and lease-revenue bonds, to the extent otherwise permissible, the
10Department of Finance shall have full authority to determine which
11of the fund sources will bear all or part of an augmentation. The
12board shall defer all augmentations in excess of 20 percent of the
13amount appropriated for each capital outlay project until the
14Legislature makes additional funds available for the specific
15project.

16(f) In addition to the powers provided by Section 15849.6, the
17State Public Works Board may further increase the additional
18amount in Section 15849.6 to include a reasonable construction
19reserve within the construction fund for any capital outlay project
20without augmenting the project. The amount of the construction
21reserve shall be within the 20 percent augmentation limitation.
22The board may use this amount to augment the project, when and
23if necessary, after the lease revenue bonds are sold to assure
24completion of the project. Upon completion of the project, any
25amount remaining in the construction reserve funds shall be used
26to offset rental payments.

27(g) Augmentations in excess of 10 percent of the amount
28appropriated for each capital outlay project shall be reported to
29the Chairperson of the Joint Legislative Budget Committee, or his
30or her designee, 20 days prior to board approval, or not sooner
31than whatever lesser time the chairperson, or his or her designee,
32may in each instance determine.

33(h) (1) The Department of Finance may change the
34administratively or legislatively approved scope for major capital
35outlay projects.

36(2) If the Department of Finance changes the approved scope
37pursuant to paragraph (1), the department shall report the changes
38and associated cost implications to the Chairperson of the Joint
39Legislative Budget Committee, the chairpersons of the respective
40fiscal committees, and the legislative advisers of the State Public
P8    1Works Board 20 days prior to the proposed board action to
2recognize the scope change.

3(i) The State Public Works Board shall defer action with respect
4to approval of an acquisition project, when it is determined that
5the estimated cost of the total acquisition project, as approved by
6the Legislature is in excess of 20 percent of the amount
7appropriated, unless it is determined that a lesser portion of the
8property is sufficient to meet the objectives of the project approved
9by the Legislature, and the Chairperson of the Joint Legislative
10Budget Committee, or his or her designee, is provided a 20-day
11prior notification of the proposed reductions in the acquisition
12project, or whatever lesser period the chairperson, or his or her
13designee, may in each instance determine.

14(j) The Department of Finance shall report to the Chairperson
15of the Joint Legislative Budget Committee, the chairpersons of the
16respective fiscal committees, and legislative advisers of the State
17Public Works Board 20 days prior to the proposed board approval
18of preliminary plans when it is determined that the estimated cost
19of the total capital outlay construction project is in excess of 20
20percent of the amount recognized by the Legislature.

21(k) Nothing in this section shall be construed to limit or control
22the Department of Transportation, the High-Speed Rail Authority,
23or the California Exposition and State Fair in the expenditure of
24all funds appropriated to any of these entities for capital outlay
25 purposes.

26

SEC. 7.  

Section 13332.12 of the Government Code is amended
27to read:

28

13332.12.  

(a) Any acquisition of land or other real property
29authorized in any appropriation, except an appropriation from the
30California Water Fund or an appropriation to the Department of
31Transportation or the High-Speed Rail Authority for capital outlay
32purposes, shall be subject to the provisions of the Property
33Acquisition Law. Nothing in this section shall be construed as
34exempting the California Coastal Commission from this section.

35(b) All property acquisitions, including those exempted pursuant
36to subdivision (a), shall be reported to the State Public Works
37Board.

end delete
38

begin deleteSEC. 8.end delete
39begin insertSEC. 2.end insert  

Section 14255 of the Government Code is amended
40to read:

P9    1

14255.  

Whenever provision is made by law for any project
2that is not under the jurisdiction of the Department of Water
3Resources, the Department of Boating and Waterways pursuant
4to Article 2.5 (commencing with Section 65) of Chapter 2 of
5Division 1 of the Harbors and Navigation Code, the Department
6of Corrections and Rehabilitation pursuant to Chapter 11
7(commencing with Section 7000) of Title 7 of Part 3 of the Penal
8Code, the High-Speed Rail Authority, or the Department of General
9Services, the project shall be under the sole charge and direct
10control of the Department of Transportation.

11

begin deleteSEC. 9.end delete
12begin insertSEC. 3.end insert  

Section 14662 of the Government Code is amended
13to read:

14

14662.  

The Director of General Services may acquire any
15easements or rights-of-way which the director determines to be
16necessary for the proper utilization of real property owned or being
17acquired by the state.

18This section does not apply to land, easements, or rights-of-way
19to be acquired by the Department of Transportation or the
20High-Speed Rail Authority.

21

begin deleteSEC. 10.end delete
22begin insertSEC. 4.end insert  

Section 14666 of the Government Code is amended
23to read:

24

14666.  

With the approval of the state agency concerned, the
25director may grant and convey in the name of the state, easements
26and rights-of-way across real property belonging to the state not
27used for highway rights-of-way or high-speed rail rights-of-way,
28for those purposes and upon that consideration and subject to those
29conditions, limitations, restrictions, and reservations as the director
30deems are in the interest of the state. All revenue received in
31connection with the granting and conveying of those easements
32and rights-of-way, including charges made for administrative costs,
33shall be deposited in the General Fund for appropriation as
34provided in Section 15863. Any expenditure in connection with
35the granting and conveying of those easements and rights-of-way
36or investigating proposed gifts of real property to the state may be
37allocated from the appropriation made pursuant to Section 15863.

38

begin deleteSEC. 11.end delete
39begin insertSEC. 5.end insert  

Section 14666.6 of the Government Code is amended
40to read:

P10   1

14666.6.  

(a) With the approval of the state agency concerned,
2the director shall negotiate in the name of the state, access to
3state-owned property, not used for highway or high-speed rail
4purposes, for those purposes and subject to those conditions,
5limitations, restrictions, and reservations determined by the director
6to be in the best interest of the state. To the extent permitted under
7existing law, the director shall determine the amount of
8consideration for, and means of access, which means shall include,
9but not be limited to, any of the following: lease, permit, or other
10form of providing a monetary or service consideration for the
11access.

12(b) The Director of Transportation shall negotiatebegin insert,end insert in the name
13of the state, access to state-owned highway rights-of-way, for those
14purposes and subject to those conditions, limitations, restrictions,
15and reservations determined by the Director of Transportation to
16be in the best interest of the state. To the extent permitted under
17existing law, the Director of Transportation shall determine the
18amount of consideration for, and means of access, which means
19shall include, but not be limited to, any of the following: lease,
20permit, or other form of providing a monetary or service
21consideration for the access.

22(c) The High-Speed Rail Authority shall negotiate, in the name
23of the state, access to state-owned high-speed rail rights-of-way
24for those purposes and subject to those conditions, limitations,
25 restrictions, and reservations determined by the authority to be in
26the best interest of the state. To the extent permitted under existing
27law, the authority shall determine the amount of consideration for
28that access, and any means of access, which means shall include,
29but not be limited to, any of the following: lease, permit, or other
30form of providing a monetary or service consideration for the
31access.

32(d) This section applies to various telecommunications and
33information technologies, including, but not limited to, voice data,
34video, and fiber-optic technologies.

35(e) Any payments received under the provisions of this section
36for a grant or conveyance through land or facilities controlled by
37the Department of Transportation, including but not limited to
38rights-of-way along the state highway system, shall be deposited
39in the State Transportation Fund.

P11   1(f) Any payments received under the provisions of this section
2for a grant or conveyance through land or facilities controlled by
3the High-Speed Rail Authority, including, but not limited to,
4rights-of-way along the high-speed rail system, shall be deposited
5begin deletewith the authority for use in the development, improvement, and
6maintenance of the high-speed rail systemend delete
begin insert in the High-Speed Rail
7Property Fund, created pursuant to Section 185044 of the Public
8Utilities Code, and shall be available to the authority upon
9appropriation by the Legislature as provided in that sectionend insert
.

10

begin deleteSEC. 12.end delete
11begin insertSEC. 6.end insert  

Section 14666.8 of the Government Code is amended
12to read:

13

14666.8.  

(a) The director shall, within 120 days of the
14operative date of this section, compile and maintain an inventory
15of state-owned real property that may be available for lease to
16providers of wireless telecommunications services for location of
17wireless telecommunications facilities. This inventory shall be the
18state’s sole inventory of state-owned real property available for
19this purpose. The term “state-owned real property,” as used in this
20section, excludes property owned or managed by the Department
21of Transportation, property owned or managed by the High-Speed
22Rail Authority, and property subject to Section 7901 of the Public
23Utilities Code.

24(b) The director shall provide, in a cost-effective manner, upon
25payment of any applicable fee, a requesting party a copy of the
26inventory.

27(c) On behalf of the state, the director may negotiate and enter
28into an agreement to lease department-managed and state-owned
29real property to any provider of wireless telecommunications
30services for location of its facilities. A lease for this purpose shall
31do all of the following:

32(1) Provide for fair market value to be paid by the provider of
33wireless telecommunications service to the state to the extent
34permitted under existing state law.

35(2) Designate a lease term that is acceptable to the director and
36the state agency that has control over the property. The duration
37 of the initial lease term for any wireless facility may not exceed
3810 years, and the lease may provide for a negotiated number of
39renewal terms, not to exceed five years for each term.

P12   1(3) Provide for the use of the wireless provider’s facilities
2located on the state-owned real property by any appropriate state
3agency if technically, legally, aesthetically, and economically
4feasible.

5(4) Facilitate, to the greatest extent possible, agreements among
6providers of wireless telecommunications services for colocation
7of their facilities on state-owned real property.

8(d) Nothing in this section alters any existing rights of telegraph
9or telephone corporations pursuant to Section 7901 of the Public
10Utilities Code.

11(e) Notwithstanding any other provision of law, any revenue
12collected from a lease entered into pursuant to this section to use
13property that was acquired with money from a fund other than the
14General Fund shall be deposited into the fund from which the
15money was obtained. Money received and deposited into a fund
16pursuant to this section shall be available upon appropriation by
17the Legislature, notwithstanding any other provision of law.

18(f) Before making any state-owned real property that is part of
19the State Water Resources Development System, as described in
20Section 12931 of the Water Code, available for leasing under this
21section, the director shall consult with the Department of Water
22Resources as to whether the proposed location of a wireless
23telecommunication facility is technically, legally, environmentally,
24and economically feasible for wireless telecommunication
25purposes.

26

begin deleteSEC. 13.end delete
27begin insertSEC. 7.end insert  

Section 14667 of the Government Code is amended
28to read:

29

14667.  

With the approval of the state agency concerned, the
30director may quitclaimbegin insert,end insert in the name of the state, the right, titlebegin insert,end insert
31 and interest of the state in and to easements and rights-of-way
32owned by the state, other than those acquired for highway purposes
33or for high-speed rail purposes, which the director determines are
34no longer needed for state purposes.

35(a) Unless the conveyance of the easement or right-of-way is
36made to the federal government, or an agency thereof, or to a
37county, city, district, or other local governmental agency of this
38state, the director shall comply with the provisions of this
39subdivision. Prior to the disposition of any easement or
40right-of-way owned by the state pursuant to this section, notice
P13   1thereof shall be published pursuant to Section 6061 of the
2Government Code in a newspaper published in the county in which
3the easement or right-of-way is situated, and if there is no
4newspaper published in such county, notice shall be published in
5a newspaper published in an adjoining county and shall be posted
6in at least three public places in the county in which the easement
7or right-of-way is situated, including one posting on the real
8property in which the easement or right-of-way is located.

9(b) If the easement or right-of-way was acquired by the state
10for a price approximating its market value at the time of acquisition,
11the director, when disposing of that easement or right-of-way, shall
12make a reasonable effort to obtain as the price for the sale thereof
13an amount approximately equivalent to the current market value
14at the time of disposition.

begin delete
15

SEC. 14.  

Section 10106 of the Public Contract Code is amended
16to read:

17

10106.  

For purposes of this chapter:

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

19(1) The Department of Water Resources as to any project under
20the jurisdiction of that department.

21(2) The Department of Transportation as to any project under
22the jurisdiction of that department.

23(3) The Department of Boating and Waterways as to any project
24under the jurisdiction of that department pursuant to Article 2.5
25(commencing with Section 65) of Chapter 2 of Division 1 of the
26Harbors and Navigation Code.

27(4) The Department of Corrections and Rehabilitation with
28respect to any project under its jurisdiction pursuant to Chapter 11
29(commencing with Section 7000) of Title 7 of Part 3 of the Penal
30Code.

31(5) The Military Department as to any project under the
32jurisdiction of that department.

33(6) The High-Speed Rail Authority as to any project under the
34jurisdiction of that authority.

35(7) The Department of General Services as to all other projects.

36(b) “Director” means the director of each department as defined
37herein respectively, or the executive director in the case of the
38High-Speed Rail Authority.

39

SEC. 15.  

Section 10107 of the Public Contract Code is amended
40to read:

P14   1

10107.  

Whenever provision is made by law for any project
2that is not under the jurisdiction of the Department of Water
3Resources, the Department of Boating and Waterways pursuant
4to Article 2.5 (commencing with Section 65) of Chapter 2 of
5Division 1 of the Harbors and Navigation Code, the Department
6of Corrections and Rehabilitation pursuant to Chapter 11
7(commencing with Section 7000) of Title 7 of Part 3 of the Penal
8Code, the Department of Transportation, the High-Speed Rail
9Authority, or the Military Department, the project shall be under
10the sole charge and direct control of the Department of General
11Services.

end delete
12

begin deleteSEC. 16.end delete
13begin insertSEC. 8.end insert  

Chapter 4 (commencing with Section 185040) is added
14to Division 19.5 of the Public Utilities Code, to read:

15 

16Chapter  4. Rights-of-Way
17

 

18

185040.  

(a) If the authority determines that real property or
19an interest therein, previously or hereafter acquired by the state
20for high-speed rail purposes, is no longer necessary for those
21purposes, the authority may sell or exchange the real property or
22interest therein at fair market value in the manner set forth in this
23section.

24(b) The authority may sell the property to an adjoining
25landowner if it makes either of the following two findings:

26(1) (A) That the property is of a size or shape that it is below
27the average normal standard size and shape of other privately
28owned properties in the immediate neighborhood, and that if the
29property were sold to other than the adjoining owner, it would give
30rise to a land use development thereof that would be below and
31not consistent with the normal land use of other properties in that
32neighborhood, (B) that the sale of the property to a party other
33than the adjoining owner may cause an undue or unfair hardship
34to the adjoining owner in the normal land use development or
35operation of his or her property, (C) that the property considered
36as part of the adjoining property would have a higher and better
37use than under separate ownership, and (D) that the fair market
38value of the property considered as part of the adjoining property
39would be higher than under separate ownership.

P15   1(2) That the sale of the excess parcel to other than the adjoining
2owner would deprive the adjoining owner of an existing vested
3right of access to a public highway and thereby create a possible
4cause of action against the authority or the state.

5A sale to an adjoining landowner pursuant to this subdivision
6may be by contract to sell or trust deed. The payment period in a
7contract of sale or sale by trust deed shall not extend longer than
810 years from the time the contract of sale or trust deed is executed,
9and a transaction involving a contract of sale or sale by trust deed
10to private parties shall require a downpayment of at least 30 percent
11of the purchase price.

12(c) The authority may sell the property to municipalities or other
13local agencies at their request, without calling for competitive bids,
14at a price representing the fair market value thereof, and upon a
15determination that the intended use is for a public purpose.

16(d) If it is improved property, the property may be sold to a
17former owner who has remained in occupancy, or to a residential
18tenant of a tenure of five years or more with all rent obligations
19current or paid in full.

20(e) Any real property or interest therein may in like manner be
21exchanged, either as whole or part consideration, for any other
22real property or interest therein as needed for high-speed rail
23purposes. This provision does not authorize exchanges where the
24value of the state-owned property exceeds the value of the property
25the authority seeks to acquire, unless the excess value is incidental
26and subdivision of the state-owned property, in order to produce
27a smaller parcel of equal value to the value of the property the
28authority seeks to acquire, would reduce the total value of the
29state-owned property.

30(f) Except as otherwise provided in this section, property shall
31be sold either by receipt of competitive sealed bids, or at public
32auction, whichever method is determined by the authority to be
33more likely to achieve the higher sales price.

34

185041.  

The authority may sell or lease excess right-of-way
35parcels to municipalities or other local agencies for public purposes,
36and may accept as all or part of the consideration for the sale or
37lease any substantial benefits the state will derive from the
38municipality or other local agency’s undertaking maintenance or
39landscaping costs that would otherwise be the obligation of the
40state.

P16   1

185042.  

The authority may lease nonoperating right-of-way
2areas to municipalities or other local agencies for public purposes,
3and may contribute toward the cost of developing local parks and
4other recreational facilities on those areas. The authority may
5accept as all or part of the consideration for the lease or for the
6state contribution any substantial benefits the state will derive from
7the municipality or other local agency’s undertaking maintenance
8or landscaping costs that would otherwise be the obligation of the
9state. Those leases shall contain a provision that whenever the
10leased land is needed for high-speed rail operating purposes the
11lease shall terminate. The authority is authorized to classify
12portions of high-speed rail rights-of-way as nonoperating.

begin delete
13

185043.  

The authority may acquire, by purchase, lease, or
14eminent domain, any property necessary for the development and
15implementation of the state’s high-speed train program. The power
16of eminent domain shall be exercised in accordance with Title 7
17(commencing with Section 1230.010) of Part 3 of the Code of
18Civil Procedure.

end delete
19

185044.  

The authority may lease to public agencies or private
20entities or individuals for any term not to exceed 99 years the use
21of areas above or below operating rights-of-way and portions of
22property not currently being used as operating rights-of-way,
23subject to any reservations, restrictions, and conditions that it
24deems necessary to ensure adequate protection of the safety and
25adequacy of high-speed rail facilities and of abutting or adjacent
26land uses. Prior to entering into any lease, the authority shall
27determine that the proposed use is not in conflict with the zoning
28regulations of the local government concerned. The leases shall
29be made in accordance with procedures to be prescribed by the
30authority, except that, in the cases of leases with private entities
31or individuals, the leases shall be made only after competitive
32 bidding. The possibilities of entering into the leases, and the
33consequent benefits to be derived therefrom, may be considered
34by the authority in designing and constructing the high-speed rail
35system. Revenues from the leases shall be depositedbegin delete with the
36authority for use in the development, improvement, and
37maintenance of the high-speed rail systemend delete
begin insert in the High-Speed Rail
38Property Fund, which is hereby created in the State Treasury, and
39shall be available to the authority, upon appropriation by the
P17   1Legislature, for use in the development, improvement, and
2maintenance of the high-speed rail systemend insert
.



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