BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 940|
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THIRD READING
Bill No: SB 940
Author: Vidak (R)
Amended: 4/12/16
Vote: 27 - Urgency
SENATE TRANS. & HOUSING COMMITTEE: 10-0, 4/19/16
AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva,
McGuire, Mendoza, Roth
NO VOTE RECORDED: Wieckowski
SENATE JUDICIARY COMMITTEE: 6-0, 5/3/16
AYES: Jackson, Moorlach, Anderson, Leno, Monning, Wieckowski
NO VOTE RECORDED: Hertzberg
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: High-Speed Rail Authority: eminent domain: right
of first refusal
SOURCE: Author
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:
1)Creates the California HSRA to direct development and
implementation of intercity high-speed rail service that is
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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.
2)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
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, on behalf
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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.
4)Double-referral. This bill was heard in both the Senate
Transportation and Housing and Judiciary Committees.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
SUPPORT: (Verified 5/16/16)
Citizens for California High Speed Rail Accountability
Kings County Board of Supervisors
Southwest California Legislative Council
OPPOSITION: (Verified 5/16/16)
None received
Prepared by:Manny Leon / T. & H. / (916) 651-4121
5/18/16 16:27:49
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