BILL ANALYSIS �
AB 481
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Date of Hearing: May 1, 2013
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Jim Frazier, Chair
AB 481 (Lowenthal) - As Amended: April 1, 2013
SUBJECT : High-speed rail
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.
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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.
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.
1)EXISTING LAW 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.
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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
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 : This bill, which is sponsored by the HSRA, will
provide the HSRA the authority to manage property acquired for
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the high speed rail project. Specifically, the bill would allow
the HSRA to negotiate with landowners for access, exchange
properties between adjoining landowners, sell excess properties,
lease properties, and generally manage its properties.
The Department of General Services plays a major in managing
most state agencies' properties. However, current law provides
Caltrans the authority to manage its own property as that
department holds title to thousands of property parcels
throughout the state as part of the highway system. The HSRA
contends that for the sake of efficiency, it should have similar
property management authority as Caltrans since the high-speed
rail project is similar to the state highway system. The bill
mirrors Caltrans' property management authority.
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.
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 was also referred to the Assembly
Committee on Transportation. It was passed and re-referred to
the Committee on Accountability and Administrative Review on
April 8, 2013 by an 11 to 5 vote.
REGISTERED SUPPORT / OPPOSITION :
Support
California High-Speed Rail Authority (sponsor)
California State Association of Electrical Workers
California State Pipe Trades Council
Western States Council of Sheet Metal Workers
AB 481
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Opposition
None on File
Analysis Prepared by : Scott Herbstman / A. & A.R. / (916)
319-3600