BILL NUMBER: SB 940	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 12, 2016
	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, 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.
   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.  
authority, if selling the real property or interest therein, to send
notification by certified mail to the last known owner of the real
property or interest therein at his or her last known address,
advising him or her that the real property or interest therein will
be offered for sale. The bill would require the authority to wait at
least 30 days after the notification has been sent to sell the real
property or interest therein. 
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: 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  shall   may  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   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.   send notification
by certified mail to the last known owner of the real property or
interest therein at his or her last known address, advising him or
her that the real property or interest therein will be offered for
sale. The authority shall not sell the real property or interest
therein until at least 30 days after the notification has been 
 sent.  
   (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. 
   (c) The authority may sell the property to an adjoining landowner
if it makes either of the following 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.
   (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.
   (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.
   (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.
   (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.
   (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.
   (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.