BILL ANALYSIS Ó
SB 940
Page 1
Date of Hearing: June 13, 2016
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
SB
940 (Vidak) - As Amended April 12, 2016
SENATE VOTE: 38-0
SUBJECT: High-Speed Rail Authority: surplus property
SUMMARY: Requires the California High-Speed Rail Authority
(Authority), when selling surplus property, to send notification
that the property is being offered for sale to the last known
owner. Specifically, this bill:
1)Requires the Authority, prior to selling previous acquired
real property and interest therein, to send notification by
certified mail to the last known owner of the property, at his
or her last known address, to advise him or her that the
property will be offered for sale.
2)Prohibits the Authority from selling the property until at
least 30 days after the notification has been sent.
3)Is an urgency measure.
SB 940
Page 2
EXISTING LAW:
1)Establishes the Authority and vests with it the responsibility
to develop and implement a high-speed rail system in
California.
2)Authorizes the sale of $9.95 billion in general obligation
bonds for the development and construction of California's
high-speed rail system, including the acquisition of real
property and rights-of-way.
3)Authorizes the Authority to sell or exchange real property
determined to be no longer necessary for high-speed rail
purposes and establishes a process for selling the real
property.
4)Allows the proceeds from any property sold to be appropriated
for use in the development, improvement, and maintenance of
the high-speed rail system.
FISCAL EFFECT: Unknown
COMMENTS: As part of the development and construction of the
high-speed rail system in California, the Authority is
authorized to purchase real property from affected land owners
in the project area. The Authority follows a process similar to
other state and local entities in the acquisition of property,
including an independent appraisal of the property and an offer
to purchase the property at fair market value. If that process
is not successful, the State Public Works Board, on behalf of
the Authority, may use the state's eminent domain authority to
SB 940
Page 3
acquire the property. If any real property is deemed no longer
necessary for project purposes, the Authority may sell the
property at fair market value or exchange the property for other
property needed for the project.
The author introduced SB 940 to improve the opportunity for
individuals to reacquire property acquired by the Authority for
the high-speed rail project. In 2013 the Legislature passed and
the Governor signed AB 481 (Lowenthal), Chapter 132, Statutes of
2013, which stated that the Authority may dispose of properties
that it deems no longer necessary. The legislation did not
provide the original landowner the right to be notified that the
property will be sold. Consequently, the Authority is under no
obligation to make any effort to reunite previous owners with
property that has been declared surplus. SB 940 does not
require a first right of refusal for the previous owner, but
does, at least, provide notification that a property will be
sold, thereby improving the opportunity for the previous owner
to buy back the property.
According to the Authority, roughly 1,600 parcels will need to
be acquired for the Madera to north of Bakersfield segment in
the Central Valley as identified in the 2016 Business Plan. To
date, no property has been sold as excess, or not necessary, as
construction is under way and it is too early to determine what
property may not be needed for the project. As the project
continues, with construction of the Initial Operating Segment
(IOS) expected to be complete in 2024, the sale of excess
property may not happen for 10 years or more after the original
acquisition.
SB 940
Page 4
Double referral: This bill will be referred to the Assembly
Judiciary Committee should it pass out of this committee.
Previous legislation: AB 481 (Lowenthal), Chapter 132, Statutes
of 2013, authorized the Authority to manage real property
acquired for high-speed rail purposes, including selling or
exchanging the real property or interest therein no longer
needed for the project at fair market value.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
None on file
SB 940
Page 5
Analysis Prepared by:Melissa White / TRANS. / (916)
319-2093