BILL ANALYSIS Ó
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: SB 940 Hearing Date: 4/19/2016
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|Author: |Vidak |
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|Version: |4/12/2016 Amended |
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|Urgency: |Yes |Fiscal: |Yes |
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|Consultant|Manny Leon |
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SUBJECT: High-Speed Rail Authority: eminent domain: right of
first refusal
DIGEST: This bill requires the High-Speed Rail Authority
(HSRA), when real property is deemed unnecessary and is proposed
to be sold or exchanged, to provide notification to the last
known landowner, as specified.
ANALYSIS:
Existing law created the California HSRA in 1996 to direct
development and implementation of intercity high-speed rail
service that is fully coordinated with other public
transportation services. In 2008, voters approved Proposition
1A (Prop 1A), authorizing $9.95 billion in general obligation
bonds for the high-speed rail project. Prop 1A authorizes HSRA
to use bond funds for, among other things, acquisition of real
property and rights-of-way for the purpose of constructing the
rail system.
Existing law allows HSRA to sell or exchange previously acquired
real property at fair market value if it's determined that the
property is no longer necessary for the completion of the
project, as specified.
This bill:
1) Requires HSRA to provide notification to the last known
landowner of the real property purchased by HSRA that the
SB 940 (Vidak) Page 2 of ?
property is deemed unnecessary and will be sold or exchanged
at fair market value.
2) Prohibits HSRA from selling the property within 30 days of
sending the notification.
3) Includes an urgency measure.
COMMENTS:
1)Purpose. The author notes that "in 2013, the legislature
passed and the Governor signed AB 481(Lowenthal, Chapter 132,
Statutes of 2013), which stated that the HSRA may dispose of
properties that it deems no longer necessary." However, the
author further notes, AB 481 did not direct the HSRA to
subsequently notify the last known landowner that the property
has been deemed unnecessary and will be sold or exchanged at
fair market value. SB 940 will provide the last known
landowner of the property with a notice that the property will
be up for sale just in case they are interested in purchasing
back the property.
2)Existing process. Like other governmental agencies, HSRA
attempts to purchase any necessary property related to project
construction by offering the appraised fair market value of
that property to the owner. If the transaction is unable to
proceed in this way, the State Public Works Board (PWB), on
behalf of HSRA, may use the state's eminent domain authority
to acquire the property. Property acquisition processes,
including eminent domain proceedings, generally result in a
settlement transferring the ownership of private property to a
governmental entity for public use, typically at a justified
and documented price based on sound business practices.
3)Is notification necessary? Currently, no example exists of
HSRA attempting to sell real property where the prior
landowner was reportedly unaware or was denied the opportunity
to repurchase the property at fair market value. However,
this bill merely sets up a notification process that allows
the last known landowner to receive notice that the property
will be up for sale or exchanged at fair market value. Upon
sending the notification, the HSRA will be able to move
forward with the current selling/exchange process set forth in
existing law 30 days after sending the notification.
SB 940 (Vidak) Page 3 of ?
4)Double-referral. This bill has also been referred to the
Senate Judiciary Committee.
Related Legislation:
AB 481 (Lowenthal, Chapter 132, Statutes of 2013) - makes a
number of changes to HSRA, including allowing HSRA to sell or
exchange the real property or interest therein at fair market
value if HSRA determines that real property is not necessary for
the construction of the project.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes
Local: No
POSITIONS: (Communicated to the committee before noon on
Wednesday,
April 13, 2016.)
SUPPORT:
None received
OPPOSITION:
None received
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