BILL ANALYSIS Ó AB 481 Page 1 Date of Hearing: April 8, 2013 ASSEMBLY COMMITTEE ON TRANSPORTATION Bonnie Lowenthal, Chair AB 481 (Lowenthal) - As Amended: April 1, 2013 SUBJECT : High-Speed Rail Authority: property management SUMMARY : Grants authorities to the High-Speed Rail Authority (HSRA) related to property disposal, leasing, rental, and management. Specifically, this bill : 1)Authorizes HSRA to secure fire insurance for properties it owns and leases for commercial or business use. 2)Provides that HSRA, not the Department of Transportation (Caltrans), has sole charge and direct control of HSRA projects. 3)Provides that the Department of General Services' (DGS's) broad authority to acquire easement or rights of way on behalf of the state does not apply to land, easements, or rights of way to be acquired by HSRA; similarly, provides that DGS's authority to grant or convey easements and rights of way over state properties does not apply to HSRA right of way. 4)Authorizes HSRA to negotiate, in the name of the state, access to rights of way it owns and the value for such access. Provides that access may include, but is not limited to, lease, permit, or other form of providing a monetary or service consideration for access. 5)Directs any revenues from payments received into the High-Speed Rail Property Fund, as created, to be used as appropriated by the Legislature for the use in development, improvement, and maintenance of the high-speed rail system. 6)Provides an exemption for HSRA from the requirement that DGS maintain an inventory, and negotiate leases for, state-owned property that could be available for lease to providers of wireless communications facilities. 7)Exempts properties and easements acquired for high-speed rail purposes from DGS's broad authority to quitclaim rights, titles, and interests in state-owned property and easements. AB 481 Page 2 8)Authorizes HSRA to sell or exchange any excess property and sets forth provisions governing such sales or exchanges, including the authority to sell as follows: a) To an adjoining property owner, under certain circumstances; b) To municipalities or other local agencies, at fair market value, without calling for competitive bids if the property is intended to be used for a public purpose; accept as all or part of the consideration for the sale or lease the benefits the state would derive from the local agency's undertaking maintenance or landscaping costs; and, c) To a former owner if that person is still an occupant or to a long-term tenant. 9)Authorizes HSRA to lease non-operating right of way areas to local agencies for public purposes and to contribute toward the cost of developing parks in those areas, under certain conditions. 10)Authorizes HSRA to lease air space (i.e., areas above or below operating rights of way) and portions of property not currently being used as right of way for any term, not to exceed 99 years; leases to private entities must be done by competitive bid. EXISTING LAW : 1)Enacts the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century (High-Speed Rail Bond Act). The High-Speed Rail Bond Act, approved as Proposition 1A in November 2008, provides $9.95 billion in general obligation bond authority to fund the planning and construction of a high-speed passenger train system and complementary improvements to other specified rail systems in the state. 2)Authorizes Caltrans to secure fire insurance for properties it owns and leases for commercial or business use. 3)Requires Caltrans to have sole charge and direct control over projects that are not under the jurisdiction of the Department AB 481 Page 3 of Water Resources, the Department of Boating and Waterways, the Department of Corrections and Rehabilitation, or the Department of General Services. 4)Authorizes DGS to acquire or grant easements or rights of way for the proper utilization of real property owned or being acquired by the state, with the exception of Caltrans property to be acquired or owned. 5)Vests responsibility with DGS to maintain an inventory of, and negotiate leases for, state-owned property that could be available for lease to providers of wireless communications facilities; exempts from these provisions property owned by Caltrans. 6)Requires DGS to negotiate, in the name of the state, access to right of way it owns, including the value of the right of access. Exempts Caltrans-owned properties from DGS's purview. 7)With the exception of state highways, authorizes DGS to quitclaim in the name of the state, the right, title and interest of the state in and to easements and rights of way owned by the state. 8)Requires DGS to have sole charge and direct control of projects excluding those projects undertaken by the Department of Water Resources, Caltrans, the Department of Boating and Waterways, the Department of Corrections and Rehabilitation, and the Military Department. FISCAL EFFECT : Unknown, but would likely result in cost-saving administrative efficiencies and generate revenue from leases, thus reducing overall project costs. COMMENTS : HSRA is responsible for planning, designing, building and operating California's high-speed rail system. The system promises to connect the mega-regions of the state, contribute to economic development and a cleaner environment, create jobs, and preserve agricultural and protected lands. By 2029, the system will run from San Francisco to the Los Angeles basin. In addition, HSRA is working with regional partners to implement a statewide rail modernization plan that will invest billions of dollars in local and regional rail lines. AB 481 Page 4 AB 481 mirrors provisions of existing law, regulation, and policy governing Caltrans' authority to manage its properties and to sell its excess land. This bill will enable HSRA to effectively manage property acquired for the high-speed rail project by allowing it to negotiate with impacted landowners for continued access, exchange property between adjoining landowners to help mitigate impacts to existing uses, sell excess property no longer required for the project, and lease property to interested parties as a means of creating additional revenue sources for the project. According to the author, AB 481 is intended to allow HSRA to better plan for the project's short and long-term needs by exclusively managing access to property acquired for the high-speed rail project. Double referral : This bill is also referred to the Assembly Committee on Accountability and Administrative Review. REGISTERED SUPPORT / OPPOSITION : Support California High-Speed Rail Authority (sponsor) Opposition None on file Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093