BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1511|
|Office of Senate Floor Analyses | |
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|327-4478 | |
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CONSENT
Bill No: AB 1511
Author: Bradford (D)
Amended: 5/14/12 in Assembly
Vote: 21
SENATE JUDICIARY COMMITTEE : 5-0, 6/19/12
AYES: Evans, Harman, Blakeslee, Corbett, Leno
ASSEMBLY FLOOR : 77-0, 5/21/12 - See last page for vote
SUBJECT : Real property: transmission pipelines
disclosures
SOURCE : Author
DIGEST : This bill requires real estate sale contracts to
include a specified notice informing purchasers of
residential property about the existence of a database
where information regarding gas and hazardous liquid
transmission pipelines can be obtained.
ANALYSIS : Existing law requires a real property seller,
or the seller's agent, to disclose to buyers any material
facts that would have a significant and measurable effect
on the value or desirability of the property (if the buyer
does not know, and would not reasonably discover, those
facts). (Karoutas v. Homefed Bank (1991) 232 Cal.App.3d
767; Reed v. King (1983) 145 Cal.App.3d 261.)
Existing law requires a seller's real estate broker to
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conduct a reasonably competent and diligent visual
inspection of a property offered for sale, and to disclose
to potential buyers any facts revealed that would
materially affect the value or desirability of the
property. (Civil Code (CIV) Section 2079)
Existing law requires a seller of real property to make the
following disclosures, among others, if the seller has
actual knowledge of the information disclosed:
environmentally hazardous substances, materials, or
products are on the property; and (CIV Section 1102.6)
the property is either adjacent to an industrial use or
affected by a nuisance created by such a use (CIV
Section 1102.17).
This bill requires every contract of sale of residential
real property entered into on or after July 1, 2013 to
contain the following notice in not less than 8-point type:
NOTICE REGARDING GAS AND HAZARDOUS LIQUID TRANSMISSION
PIPELINES
This notice is being provided simply to inform you that
information about the general location of gas and
hazardous liquid transmission pipelines is available to
the public via the National Pipeline Mapping System
(NPMS) Internet Web site maintained by the United States
Department of Transportation at
http://www.npms.phmsa.dot.gov/. To seek further
information about possible transmission pipelines near
the property, you may contact your local gas utility or
other pipeline operators in the area. Contact
information for pipeline operators is searchable by ZIP
Code and county on the NPMS Internet Web site.
This bill provides that, upon delivery of the above notice,
the seller or broker is not required to provide information
in addition to the notice regarding gas and hazardous
transmission pipelines, as specified. The information in
the notice would be deemed adequate to inform the
transferee about the existence of a statewide database of
transmission pipelines.
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This bill provides that nothing in the section added by
this bill shall alter any existing duty under any other
statute or decisional law imposed upon the seller or
broker, as specified.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/21/12)
Consumer Federation of California
First American Real Estate Disclosures
ARGUMENTS IN SUPPORT : According to the author, "The bill
seeks to remedy the problem that homeowners impacted by the
pipeline explosion in San Bruno were unaware of any
pipeline near their property. This bill will provide a
notice that prospective property buyers can obtain pipeline
locations through the National Pipeline Mapping System
�(NPMS)] or the local gas utility or pipeline operator in
their area. This notification is modeled after Megan's Law
related disclosure (Civil Code 2079.10a)."
ASSEMBLY FLOOR : 77-0, 5/21/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fong, Fuentes, Furutani, Beth
Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove,
Hagman, Halderman, Hall, Harkey, Hayashi, Hill, Huber,
Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue,
Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan,
V. Manuel P�rez, Portantino, Silva, Skinner, Smyth,
Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski,
Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Fletcher, Roger Hern�ndez, Perea
RJG:k 6/21/12 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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