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California Public Contract Code Section 20365

Legal Research Home > California Laws > Public Contract Code > California Public Contract Code Section 20365

20365.  (a) The commission and the department may enter into
agreements with each other that define the responsibilities of each
party in implementing the program pursuant to this article. The
department may exercise any power it possesses to facilitate the
implementation of, and use of rights-of-way for, rail transit systems
and related facilities pursuant to this article.
   (b) At the request of the commission, the department shall lease
to the commission for up to 99 years, pursuant to subdivision (c),
and the commission may sublease to third parties in accordance with
this article, the use of areas above or below that portion of
existing state highways and any portion other than the traveled
portion of the right-of-way of state highways, to be directly used
for rail transit systems, intermodal facilities, and related
commercial development, so long as the improvements are feasible from
an engineering standpoint, in conformity with established safety
design standards, not in conflict with improvements to the affected
state highway the department reasonably contemplated at the time of
the lease, consistent with good ecological and environmental
planning, and not in conflict with the zoning regulations of the
local government concerned.
   (c) The commission shall pay to the department one dollar ($1) per
year for 35 years in consideration for the lease. Thereafter, the
commission shall pay to the department an amount equal to 50 percent
of the fair market value of the remainder of the lease.
   (d) The revenues the commission receives from any sublease shall
reflect a fair market return over the term of the sublease, giving
consideration to the improvements, dedications, fees, and other
contributions the sublessee agrees to make for the rail transit
system, intermodal facilities and other public facilities, and shall
be deposited in a special fund, kept separate and apart from other
funds, and used solely to pay or reimburse the commission for all
costs it has incurred or will incur in connection with the
development, operation, and maintenance of the rail transit system to
which the sublease is related. However, if revenues exceed those
costs and an adequate reserve for anticipated future costs, the
department shall be entitled to the excess revenues.

Last modified: February 22, 2013