SB 940, as amended, Vidak. High-Speed Rail Authority: eminent domain: right of first refusal.
Existing law creates the High-Speed Rail Authority with specified powers, including the power to acquire rights-of-way through purchase or eminent domain, and duties relating to the development and implementation of an intercity high-speed rail system. Existing law, pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, authorizes $9.95 billion in general obligation bonds for high-speed rail development and other related purposes.
This bill would declare the intent of the Legislature to enact legislation that would establish a right of first refusal for landowners to reacquire land that was taken for high-speed rail through eminent domain, if the land is later determined to not be necessary for high-speed rail.
end deleteUnder existing law, if the authority determines that real property or an interest therein acquired by the state for high-speed rail purposes is no longer necessary for those purposes, the authority is authorized to sell or exchange the real property or interest therein at fair market value as specified.
end insertbegin insertThis bill would instead require the authority to sell or exchange the real property or interest therein if it is no longer necessary for high-speed rail purposes. The bill would also require the authority to offer the person, or his or her next of kin, from whom the real property or interest therein was acquired the right of first refusal to purchase the property at fair market value, unless the authority acting in good faith is unable to locate the person, or his or her next of kin, within 180 days of the authority’s initial attempt to locate the person.
end insertbegin insertThis bill would declare that it is to take effect immediately as an urgency statute.
end insertVote: begin deletemajority end deletebegin insert2⁄3end insert.
Appropriation: no.
Fiscal committee: begin deleteno end deletebegin insertyesend insert.
State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 185040 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is
2amended to read:end insert
(a) If the authority determines that real property or
4an interest therein, previously or hereafter acquired by the state
5for high-speed rail purposes, is no longer necessary for those
6purposes, the authoritybegin delete mayend deletebegin insert shallend insert sell or exchange the real property
7or interest therein at fair market value in the manner set forth in
8this section.
9(b) (1) Notwithstanding subdivision (c) and prior to selling the
10real property or interest therein in any other manner authorized
11under
this section, the authority shall offer the person, or his or
12her next of kin, from whom the real property or interest therein
13was acquired the right of first refusal to purchase the property at
14fair market value.
15(2) This requirement shall be met if the person, or his or her
16next of kin, from whom the real property or interest therein was
17acquired does not choose to purchase the property within a
18reasonable time and at fair market value, or if the authority acting
19in good faith is unable to locate the person, or his or her next of
20kin, from whom the property was acquired within 180 days of the
21authority’s initial attempt to locate the person.
22(b)
end delete
23begin insert(c)end insert The authority may sell the property to an adjoining
24landowner if it makes either of the followingbegin delete twoend delete findings:
25(1) (A) That the property is of a size or shape that it is below
26the average normal standard size and shape of other privately
27owned properties in the immediate neighborhood, and that if the
P3 1property were sold to other than the adjoining owner, it would give
2rise to a land use development thereof that would be below and
3not consistent with the normal land use of other properties in that
4neighborhood, (B) that the sale of the property to a party other
5than the adjoining owner may cause an undue or unfair hardship
6to the adjoining owner in the normal land use
development or
7operation of his or her property, (C) that the property considered
8as part of the adjoining property would have a higher and better
9use than under separate ownership, and (D) that the fair market
10value of the property considered as part of the adjoining property
11would be higher than under separate ownership.
12(2) begin insert(A)end insertbegin insert end insert That the sale of the excess parcel to other than the
13adjoining owner would deprive the adjoining owner of an existing
14vested right of access to a public highway and thereby create a
15possible cause of action against the authority or the state.
16A
end delete
17begin insert(B)end insertbegin insert end insertbegin insertAend insert sale to an adjoining landowner pursuant to this subdivision
18may be by contract to sell or trust deed. The payment period in a
19contract of sale or sale by trust deed shall not extend longer than
2010 years from the time the contract of sale or trust deed is executed,
21and a transaction involving a contract of sale or sale by trust deed
22to private parties shall require a downpayment of at least 30 percent
23of the purchase price.
24(c)
end delete
25begin insert(d)end insert The authority may sell the property to municipalities or other
26local
agencies at their request, without calling for competitive bids,
27at a price representing the fair market value thereof, and upon a
28determination that the intended use is for a public purpose.
29(d)
end delete
30begin insert(e)end insert If it is improved property, the property may be sold to a
31former owner who has remained in occupancy, or to a residential
32tenant of a tenure of five years or more with all rent obligations
33current or paid in full.
34(e)
end delete
35begin insert(f)end insert Any real property or interest therein may in like manner be
36exchanged, either as whole or part consideration, for any other
37real property or interest therein as needed for high-speed rail
38purposes. This provision does not authorize exchanges where the
39value of the state-owned property exceeds the value of the property
40the authority seeks to acquire, unless the excess value is incidental
P4 1and subdivision of the state-owned property, in order to produce
2a smaller parcel of equal value to the value of the property the
3authority seeks to acquire, would reduce the total value of the
4state-owned property.
5(f)
end delete
6begin insert(g)end insert Except as otherwise provided in this section,
property shall
7be sold either by receipt of competitive sealed bids, or at public
8auction, whichever method is determined by the authority to be
9more likely to achieve the higher sales price.
10(g)
end delete
11begin insert(h)end insert Any payments received under this section for the sale of
12real property no longer necessary for high-speed rail purposes shall
13be deposited in the High-Speed Rail Property Fund created
14pursuant to Section 185045, and shall be available to the authority
15upon appropriation as provided in that section.
This act is an urgency statute necessary for the
17immediate preservation of the public peace, health, or safety within
18the meaning of Article IV of the Constitution and shall go into
19immediate effect. The facts constituting the necessity are:
20In order to protect private property rights, it is necessary for
21this act to take effect immediately.
It is the intent of the Legislature to enact
23legislation that would establish a right of first refusal for a
24landowner to reacquire land that was taken for high-speed rail
25through eminent domain, if the land is later determined to not be
26necessary for high-speed rail.
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