BILL NUMBER: SB 940 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 9, 2016
INTRODUCED BY Senator Vidak
FEBRUARY 3, 2016
An act to amend Section 185040 of the Public Utilities Code,
relating to transportation.
transportation, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
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.
Under 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.
This 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.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: no yes .
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 185040 of the Public
Utilities Code is amended to read:
185040. (a) If the authority determines that real property or an
interest therein, previously or hereafter acquired by the state for
high-speed rail purposes, is no longer necessary for those purposes,
the authority may shall sell or exchange
the real property or interest therein at fair market value in the
manner set forth in this section.
(b) (1) Notwithstanding subdivision (c) and prior to selling the
real property or interest therein in any other manner authorized
under this section, the authority shall 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.
(2) This requirement shall be met if the person, or his or her
next of kin, from whom the real property or interest therein was
acquired does not choose to purchase the property within a reasonable
time and at fair market value, or if the authority acting in good
faith is unable to locate the person, or his or her next of kin, from
whom the property was acquired within 180 days of the authority's
initial attempt to locate the person.
(b)
(c) The authority may sell the property to an adjoining
landowner if it makes either of the following two
findings:
(1) (A) That the property is of a size or shape that it is below
the average normal standard size and shape of other privately owned
properties in the immediate neighborhood, and that if the property
were sold to other than the adjoining owner, it would give rise to a
land use development thereof that would be below and not consistent
with the normal land use of other properties in that neighborhood,
(B) that the sale of the property to a party other than the adjoining
owner may cause an undue or unfair hardship to the adjoining owner
in the normal land use development or operation of his or her
property, (C) that the property considered as part of the adjoining
property would have a higher and better use than under separate
ownership, and (D) that the fair market value of the property
considered as part of the adjoining property would be higher than
under separate ownership.
(2) (A) That the sale of the excess parcel
to other than the adjoining owner would deprive the adjoining owner
of an existing vested right of access to a public highway and thereby
create a possible cause of action against the authority or the
state.
A
(B) A sale to an adjoining
landowner pursuant to this subdivision may be by contract to sell or
trust deed. The payment period in a contract of sale or sale by trust
deed shall not extend longer than 10 years from the time the
contract of sale or trust deed is executed, and a transaction
involving a contract of sale or sale by trust deed to private parties
shall require a downpayment of at least 30 percent of the purchase
price.
(c)
(d) The authority may sell the property to
municipalities or other local agencies at their request, without
calling for competitive bids, at a price representing the fair market
value thereof, and upon a determination that the intended use is for
a public purpose.
(d)
(e) If it is improved property, the property may be
sold to a former owner who has remained in occupancy, or to a
residential tenant of a tenure of five years or more with all rent
obligations current or paid in full.
(e)
(f) Any real property or interest therein may in like
manner be exchanged, either as whole or part consideration, for any
other real property or interest therein as needed for high-speed rail
purposes. This provision does not authorize exchanges where the
value of the state-owned property exceeds the value of the property
the authority seeks to acquire, unless the excess value is incidental
and subdivision of the state-owned property, in order to produce a
smaller parcel of equal value to the value of the property the
authority seeks to acquire, would reduce the total value of the
state-owned property.
(f)
(g) Except as otherwise provided in this section,
property shall be sold either by receipt of competitive sealed bids,
or at public auction, whichever method is determined by the authority
to be more likely to achieve the higher sales price.
(g)
(h) Any payments received under this section for the
sale of real property no longer necessary for high-speed rail
purposes shall be deposited in the High-Speed Rail Property Fund
created pursuant to Section 185045, and shall be available to the
authority upon appropriation as provided in that section.
SEC. 2. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to protect private property rights, it is necessary for
this act to take effect immediately.
SECTION 1. It is the intent of the Legislature
to enact legislation that would establish a right of first refusal
for a landowner 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.