Amended in Senate June 12, 2013

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 amend Sections 11007.1, 14255, 14662, 14666, 14666.6, 14666.8, and 14667 of the Government 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 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 leasesbegin insert, sales,end insert or other conveyances of property begin insertowned or end insertcontrolled by the authority to be deposited 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 purposes.

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 11007.1 of the Government Code is
2amended to read:

3

11007.1.  

(a) The Department of Transportation, when it has
4acquired title to any real property for highway purposes and leases
5that property for commercial or business uses to the former owner
6for a term exceeding six months, may secure insurance against the
7risk of damage or destruction by fire where the former owner
8requests this coverage and the premium therefor is included in the
9rental agreed to be paid.

10(b) The High-Speed Rail Authority, when it has acquired title
11to any real property for high-speed rail purposes and leases that
12property for commercial or business uses to the former owner for
13a 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

SEC. 2.  

Section 14255 of the Government Code is amended
18to read:

19

14255.  

Whenever provision is made by law for any project
20that is not under the jurisdiction of the Department of Water
P3    1Resources, the Department of Boating and Waterways pursuant
2to Article 2.5 (commencing with Section 65) of Chapter 2 of
3Division 1 of the Harbors and Navigation Code, the Department
4of Corrections and Rehabilitation pursuant to Chapter 11
5(commencing with Section 7000) of Title 7 of Part 3 of the Penal
6Code, the High-Speed Rail Authority, or the Department of General
7Services, the project shall be under the sole charge and direct
8control of the Department of Transportation.

9

SEC. 3.  

Section 14662 of the Government Code is amended
10to read:

11

14662.  

The Director of General Services may acquire any
12easements or rights-of-way which the director determines to be
13necessary for the proper utilization of real property owned or being
14acquired by the state.

15This section does not apply to land, easements, or rights-of-way
16to be acquired by the Department of Transportation or the
17High-Speed Rail Authority.

18

SEC. 4.  

Section 14666 of the Government Code is amended
19to read:

20

14666.  

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

34

SEC. 5.  

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 highway or high-speed rail
39purposes, for those purposes and subject to those conditions,
40limitations, restrictions, and reservations determined by the director
P4    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.

17(c) Thebegin insert Chief Executive Officer of theend insert High-Speed Rail Authority
18shall negotiate, in the name of the state, access to state-owned
19 high-speed rail rights-of-way for those purposes and subject to
20those conditions, limitations, restrictions, and reservations
21determined by thebegin insert chief executive officer of theend insert authority to be in
22the best interest of the state. To the extent permitted under existing
23law, thebegin insert chief executive officer of theend insert authority shall determine the
24amount of consideration for that access, and any means of access,
25which means shall include, but not be limited to, any of the
26following: lease, permit, or other form of providing a monetary or
27service consideration for the access.

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

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

36(f) Any payments received under the provisions of this section
37for a grant or conveyance through land or facilities controlled by
38the High-Speed Rail Authority, including, but not limited to,
39rights-of-way along the high-speed rail system, shall be deposited
40in the High-Speed Rail Property Fund, created pursuant to Section
P5    1begin delete 185044end deletebegin insert 185045end insert of the Public Utilities Code, and shall be available
2to the authority upon appropriation by the Legislature as provided
3in that section.

4

SEC. 6.  

Section 14666.8 of the Government Code is amended
5to read:

6

14666.8.  

(a) The director shall, within 120 days of the
7operative date of this section, compile and maintain an inventory
8of state-owned real property that may be available for lease to
9providers of wireless telecommunications services for location of
10wireless telecommunications facilities. This inventory shall be the
11state’s sole inventory of state-owned real property available for
12this purpose. The term “state-owned real property,” as used in this
13section, excludes property owned or managed by the Department
14of Transportation, property owned or managed by the High-Speed
15Rail Authority, and property subject to Section 7901 of the Public
16Utilities Code.

17(b) The director shall provide, in a cost-effective manner, upon
18payment of any applicable fee, a requesting party a copy of the
19inventory.

20(c) On behalf of the state, the director may negotiate and enter
21into an agreement to lease department-managed and state-owned
22real property to any provider of wireless telecommunications
23services for location of its facilities. A lease for this purpose shall
24do all of the following:

25(1) Provide for fair market value to be paid by the provider of
26wireless telecommunications service to the state to the extent
27permitted under existing state law.

28(2) Designate a lease term that is acceptable to the director and
29the state agency that has control over the property. The duration
30 of the initial lease term for any wireless facility may not exceed
3110 years, and the lease may provide for a negotiated number of
32renewal terms, not to exceed five years for each term.

33(3) Provide for the use of the wireless provider’s facilities
34located on the state-owned real property by any appropriate state
35agency if technically, legally, aesthetically, and economically
36feasible.

37(4) Facilitate, to the greatest extent possible, agreements among
38providers of wireless telecommunications services forbegin delete colocationend delete
39begin insert collocation end insert of their facilities on state-owned real property.

P6    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. 7.  

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,
23and interest of the state in and to easements and rights-of-way
24owned by the state, other than those acquired for highway purposes
25or for high-speed rail purposes, which the director 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.

P7    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, when disposing of that easement or right-of-way, shall
4make a reasonable effort to obtain as the price for the sale thereof
5an amount approximately equivalent to the current market value
6at the time of disposition.

7

SEC. 8.  

Chapter 4 (commencing with Section 185040) is added
8to Division 19.5 of the Public Utilities Code, to read:

9 

10Chapter  4. Rights-of-Way
11

 

12

185040.  

(a) If the authority determines that real property or
13an interest therein, previously or hereafter acquired by the state
14for high-speed rail purposes, is no longer necessary for those
15purposes, the authority may sell or exchange the real property or
16interest therein at fair market value in the manner set forth in this
17section.

18(b) The authority may sell the property to an adjoining
19landowner if it makes either of the following two findings:

20(1) (A) That the property is of a size or shape that it is below
21the average normal standard size and shape of other privately
22owned properties in the immediate neighborhood, and that if the
23property were sold to other than the adjoining owner, it would give
24rise to a land use development thereof that would be below and
25not consistent with the normal land use of other properties in that
26neighborhood, (B) that the sale of the property to a party other
27than the adjoining owner may cause an undue or unfair hardship
28to the adjoining owner in the normal land use development or
29operation of his or her property, (C) that the property considered
30as part of the adjoining property would have a higher and better
31use than under separate ownership, and (D) that the fair market
32value of the property considered as part of the adjoining property
33would be higher than under separate ownership.

34(2) That the sale of the excess parcel to other than the adjoining
35owner would deprive the adjoining owner of an existing vested
36right of access to a public highway and thereby create a possible
37cause of action against the authority or the state.

38A sale to an adjoining landowner pursuant to this subdivision
39may be by contract to sell or trust deed. The payment period in a
40contract of sale or sale by trust deed shall not extend longer than
P8    110 years from the time the contract of sale or trust deed is executed,
2and a transaction involving a contract of sale or sale by trust deed
3to private parties shall require a downpayment of at least 30 percent
4of the purchase price.

5(c) The authority may sell the property to municipalities or other
6local agencies at their request, without calling for competitive bids,
7at a price representing the fair market value thereof, and upon a
8determination that the intended use is for a public purpose.

9(d) If it is improved property, the property may be sold to a
10former owner who has remained in occupancy, or to a residential
11tenant of a tenure of five years or more with all rent obligations
12current or paid in full.

13(e) Any real property or interest therein may in like manner be
14exchanged, either as whole or part consideration, for any other
15real property or interest therein as needed for high-speed rail
16purposes. This provision does not authorize exchanges where the
17value of the state-owned property exceeds the value of the property
18the authority seeks to acquire, unless the excess value is incidental
19and subdivision of the state-owned property, in order to produce
20a smaller parcel of equal value to the value of the property the
21authority seeks to acquire, would reduce the total value of the
22state-owned property.

23(f) Except as otherwise provided in this section, property shall
24be sold either by receipt of competitive sealed bids, or at public
25auction, whichever method is determined by the authority to be
26more likely to achieve the higher sales price.

begin insert

27(g) Any payments received under this section for the sale of real
28property no longer necessary for high-speed rail purposes shall
29be deposited in the High-Speed Rail Property Fund created
30pursuant to Section 185045, and shall be available to the authority
31upon appropriation as provided in that section.

end insert
32

185041.  

The authority may sell or lease excess right-of-way
33parcels to municipalities or other local agencies for public purposes,
34and may accept as all or part of the consideration for the sale or
35lease any substantial benefits the state will derive from the
36municipality or other local agency’s undertaking maintenance or
37landscaping costs that would otherwise be the obligation of the
38state.

39

185042.  

The authority may lease nonoperating right-of-way
40areas to municipalities or other local agencies for public purposes,
P9    1and may contribute toward the cost of developing local parks and
2other recreational facilities on those areas. The authority may
3accept as all or part of the consideration for the lease or for the
4state contribution any substantial benefits the state will derive from
5the municipality or other local agency’s undertaking maintenance
6or landscaping costs that would otherwise be the obligation of the
7state. Those leases shall contain a provision that whenever the
8leased land is needed for high-speed rail operating purposes the
9lease shall terminate. The authority is authorized to classify
10portions of high-speed rail rights-of-way as nonoperating.

11

185044.  

The authority may lease to public agencies or private
12entities or individuals for any term not to exceed 99 years the use
13of areas above or below operating rights-of-way and portions of
14property not currently being used as operating rights-of-way,
15subject to any reservations, restrictions, and conditions that it
16deems necessary to ensure adequate protection of the safety and
17adequacy of high-speed rail facilities and of abutting or adjacent
18land uses. Prior to entering into any lease, the authority shall
19determine that the proposed use is not in conflict with the zoning
20regulations of the local government concerned. The leases shall
21be made in accordance with procedures to be prescribed by the
22authority, except that, in the cases of leases with private entities
23or individuals, the leases shall be made only after competitive
24 bidding. The possibilities of entering into the leases, and the
25consequent benefits to be derived therefrom, may be considered
26by the authority in designing and constructing the high-speed rail
27system. Revenues from the leases shall be deposited in the
28High-Speed Rail Propertybegin delete Fund, which is hereby created in the
29State Treasury, and shall be available to the authority, upon
30appropriation by the Legislature, for use in the development,
31improvement, and maintenance of the high-speed rail systemend delete
begin insert Fund
32created pursuant to Section 185045end insert
.

begin insert
33

begin insert185045.end insert  

The High-Speed Rail Property Fund is hereby created
34in the State Treasury for the deposit of revenue received from the
35sale, lease, or grant of any interest in or use of real property owned
36or managed by the High-Speed Rail Authority. Revenues in the
37fund shall be available to the authority, upon appropriation by the
38Legislature, for use in the development, improvement, and
39maintenance of the high-speed rail system, consistent with
40appropriate uses for each funding source.

end insert


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