[Congressional Record Volume 143, Number 95 (Tuesday, July 8, 1997)]
[House]
[Pages H4854-H4857]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     VALIDATING CERTAIN LAND CONVEYANCES IN THE CITY OF TULARE, CA

  Mr. HANSEN. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 960) to validate certain conveyances in the city of Tulare, 
Tulare County, CA, and for other purposes, as amended.
  The Clerk read as follows:

                                H.R. 960

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. FINDINGS.

       The Congress finds that:
       (1) It is in the Federal Government's interest to 
     facilitate local development of jobs in areas of high 
     unemployment.
       (2) Railroad interests in rights-of-way prevent local 
     communities from obtaining clear title to property for 
     development unless the city also obtains the Federal 
     revisionary interest in those rights-of-way.
       (3) For development purposes, in order to secure needed 
     financing, the City of Tulare Redevelopment Agency requires 
     clear title to certain parcels of and within the city's 
     business corridor that are part of a railroad right-of-way.

     SEC. 2. TULARE CONVEYANCE.

       (a) In General.--Subject to subsections (c) and (d), all 
     conveyances to the Redevelopment Agency of the City of 
     Tulare, California, of lands described in subsection (b), 
     heretofore or hereafter, made directly by the Southern 
     Pacific Transportation Company, or its successors, are hereby 
     validated to the extent that the conveyances would be legal 
     or valid if all rights, title, and interest of the United 
     States, except minerals, were held by the Southern Pacific 
     Transportation Company.
       (b) Lands Described.--The lands referred to in subsection 
     (a) are the parcels shown on the map entitled ``Tulare 
     Redevelopment Agency-Railroad Parcels Proposed to be 
     Acquired'', dated 5/29/97, that formed part of a railroad 
     right-of-way granted to the Southern Pacific Railroad 
     Company, or its successors, agents, or assigns, by the 
     Federal Government (including the right-of-way approved by an 
     Act of Congress on July 27, 1866). The map referred to in 
     thus subsection shall be on file and available for public 
     inspection in the offices of the Director of the Bureau of 
     Land Management.
       (c) Preservation of Existing Rights of Access.--Nothing in 
     this section shall impair any existing rights of access in 
     favor of the public or any owner of adjacent lands over, 
     under or across the lands which are referred to in subsection 
     (a).
       (d) Minerals.--The United States disclaims any and all 
     right of surface entry to the mineral estate of lands 
     described in subsection (b).

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Utah [Mr. Hansen] and the gentleman from American Samoa [Mr. 
Faleomavaega] each will control 20 minutes.
  The Chair recognizes the gentleman from Utah [Mr. Hansen].
  Mr. HANSEN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, H.R. 960, introduced by the gentleman from California 
[Mr. Thomas] will give the Tulare Redevelopment Agency the ability to 
purchase lands within the railroad right-of-way that bisects their 
city. This bill would validate the city's title to one parcel of land 
that they bought from the railroad before learning the title was 
clouded by the Federal Government's reversionary interest. It would 
also allow the railroad to pass clear title to parcels of land shown on 
the referenced map.
  This legislation is a reasonable solution to a difficult problem. The 
BLM has studied the issue and concluded that the lands in question are 
best suited for local development as planned by the redevelopment 
agency. The gentleman from California has worked very hard with the BLM 
to craft a bill that would be satisfactory to all concerned. The bill 
has been amended to clarify language that gives the railroad the right 
to pass clear title to only the redevelopment agency. Language has also 
been removed from the bill that the administration felt could be 
construed as a waiver of environmental laws. The current bill would 
also preserve the Federal interest in mineral rights to the lands, 
while at the same time disclaiming any right the Government may have to 
surface entry to the mineral estate. This gives the city the ability to 
go forward with planning, financing and development.
  This bill is intended to resolve an unusual problem within the city 
of Tulare. The bill is not intended to be dispositive of the status of 
other rail properties nor is it intended to set a general policy for 
the treatment of railroad grants. Concerns that this action would set 
an undesirable precedent regarding railroad right-of-way problems are, 
I believe, therefore unfounded.

[[Page H4855]]

  This is a good bill. It is long overdue. I urge my colleagues to 
support it and allow the Tulare Redevelopment Agency to get on with 
their efforts to facilitate development and economic growth within 
their city.
  Mr. Speaker, I reserve the balance of my time.
  Mr. FALEOMAVAEGA. Mr. Speaker, I yield myself such time as I may 
consume and, before addressing the legislation before us, I want to 
thank the Speaker for properly pronouncing the jurisdiction of the 
district that I represent, American Samoa. It is not Somalia, Somoya, 
it is Samoa, and I thank the Speaker for that.
  Mr. Speaker, I commend the gentleman from California [Mr. Thomas] for 
his sponsorship of this legislation. The purpose of H.R. 960, 
introduced by the gentleman from California, is to allow the city of 
Tulare in California to acquire property to then resell or lease in 
order to address redevelopment needs. The property in question is a 
railroad right-of-way comprised of a 400-foot-wide corridor which was 
given to Southern Pacific Transportation Co., now owned by the Union 
Pacific Railroad Co., on a limited fee basis by the United States for 
the construction of a railroad and telegraph line. If and when the 
right-of-way is no longer used for the original intent, the property 
would revert to the United States. Because Union Pacific Railroad Co., 
does not own this property free and clear, it cannot convey a clear 
title unless the United States relinquishes its interest in the land.
  Under current law, the National Trails Systems Act provides that 
railroad rights-of-way lands, once abandoned, will remain in the 
Federal domain. Further, the act establishes a mechanism by which these 
lands can be used for recreation purposes or for recreation trails. 
H.R. 960 would preempt this law.
  In the past, Congress has voted to validate some limited conveyances 
by railroad companies. In those cases, private landowners bought what 
they believed to be clear titles to property only to find out about the 
U.S. interest in the lands when they went to build or resell the 
property.

                              {time}  1515

  Other instances arose where an adjacent landowner mistakenly built a 
garage or add-on to a private home which infringed on the right-of-way. 
Parcels approved in the past have been of little monetary value and 
were mostly used for private housing.
  This legislation will mark the first time a Congress will 
prospectively validate parcels in this manner. Enactment of this 
legislation will be the first time the United States relinquishes its 
interest in its railroad right-of-way lands for the purpose of 
community development.
  By all accounts, the city of Tulare, CA is in need of revitalization. 
Extinguishing Federal rights in this land may help the redevelopment of 
the area, and I hope it does. How much profit Union Pacific Railroad 
Co. seizes from gaining the Federal interest will presumably be 
determined through price negotiation with the city of Tulare. This 
legislation reacts to a specific and unique set of circumstances in the 
city of Tulare.
  In this instance, the Federal Government has determined that if the 
railroad right-of-way lands were to revert to the Federal Government, 
it would not be interested in managing the land and would seek to 
dispose of the land. Passage of this legislation should not be 
perceived as endorsing the concept of the Federal Government giving 
away public rights without compensation.
  With that statement, Mr. Speaker, again I urge my colleagues to 
support this legislation with those bases of clarification; and again I 
thank our good friend from California for his diligence and working 
closely both with the administrators and with Members of this side of 
the aisle.
  The United States gave Southern Pacific Transportation Co. an 
interest in the lands that are the subject of H.R. 960 through a right-
of-way granted under the Pacific Railroads Act of July 1, 1862, ch. 
120, 12 Stat. 489, as amended. Section 2 of the act granted a 400-foot-
wide right-of-way through the public lands of the United States: ``For 
the construction of a railroad and telegraph line.''
  In Northern Pac. Ry. v. Townsend, 190 U.S. 267, 271 (1903), the 
right-of-way grant was characterized as a ``limited fee made on an 
implied condition of reverter'' in the event that the railroad ceased 
to use the right-of-way for the purpose for which it was granted. Under 
these conditions, if the railroad were to cease use of the right-of-
way, and a forfeiture were declared by the Congress or a judicial 
proceeding initiated by the Attorney General of the United States, the 
railroad would lose its interest in the land, which would revert to the 
Federal Government.
  The National Trails System Act, 16 U.S.C. 1241, provides that * * * 
all right, title, interest, and estate of the United States in all 
rights-of-way * * * shall remain in the United States upon the 
abandonment or forfeiture. * * * This act establishes a mechanism by 
which the reverted land can be used for recreation trails. H.R. 960 
would preempt the National Trails System Act by eliminating the 
reversionary interest.
  The city of Tulare wants to buy the right-of-way land alongside the 
railroad to sell or lease through the city of Tulare Redevelopment 
Agency. The railroad, however, does not own the land--the taxpayers 
do--and so the title is not cleared to convey. One parcel in the city 
of Tulare has already been sold by the railroad despite the fact it did 
not own the land. This legislation would validate title to the parcel 
already sold as well as prospectively extinguishing Federal reversion 
rights on all lands within the redevelopment plan area, thereby giving 
Southern Pacific Transportation Co. clear title to sell the lands and 
to profit from their disposal.
  In the past Congress has validated some limited conveyances in 
situations where the new owner purchased the land in good faith without 
realizing there was a reversion interest to the Federal Government. 
Parcels approved in the past have been of little monetary value and 
were mostly used for private housing. This legislation will mark the 
first time that Congress prospectively validated parcels in this manner 
before they were sold and before any party was misled about the title 
of land which it had purchased.
  Enactment of this legislation will be the first time the United 
States relinquishes its interest in railroad rights-of-way lands for 
the purpose of community redevelopment. By all accounts the city of 
Tulare is in need of revitalization. Extinguishing Federal rights to 
this land may help the redevelopment of the area. How much profit 
Southern Pacific Transportation Co. realizes from selling the Federal 
interest will presumably be determined through price negotiations with 
the city of Tulare.
  It should be noted that this legislation responds to a specific and 
unique set of circumstances in the city of Tulare. In this instance, 
the Federal Government has determined that if the railroad right-of-way 
lands were to revert, the Federal Government would not be interested in 
managing the lands. Passage of this legislation should not be perceived 
as endorsing the concept of the Federal Government giving away public 
rights without just compensation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. HANSEN. Mr. Speaker, I yield such time as he may consume to the 
gentleman from California [Mr. Thomas], the sponsor of this 
legislation, who has worked many, many hours to bring this to pass.
  (Mr. THOMAS asked and was given permission to revise and extend his 
remarks.)
  Mr. THOMAS. Mr. Speaker, I thank the gentleman for yielding.
  Mr. Speaker, I want to thank both the chairman and ranking member for 
taking the time that they have in looking at this obviously unique 
situation. I think all of us want to underscore the hours consumed in 
dealing with this issue is because it is a unique situation. It 
probably will remain unique, given the definition of unique, and it 
will not set a precedent.
  The people in the small community of Tulare in the central valley of 
California have got to feel comfortable that people who represent 
American Samoa and Utah, in their subcommittee duties, took enough time 
to understand the uniqueness of this situation that would allow what 
would if it were precedent-setting be an extremely unusual situation to 
go forward. I want to thank both of you for their willingness to work 
with my office and my constituents.
   Mr. Speaker, I am extremely pleased that the House is considering my 
bill, H.R. 960, today because the bill is an essential step toward 
giving the city of Tulare, California's Tulare Redevelopment Agency the 
tools with which to end a blight in the city's downtown area. This bill 
will give local people control over Federal reversionary interest in 
railroad rights of way bisecting the very heart of the city, allowing a 
rural community with high unemployment to bring in new jobs.
  H.R. 960 takes a new approach to the complicated field of Federal 
land grants because

[[Page H4856]]

of the unusual problem confronting the city of Tulare. Our Resources 
Committee colleagues passed the bill by voice vote on June 25, 1997, 
because they saw the need to foster redevelopment in this community. So 
does the Bureau of Land Management. In fact, the Bureau's full support 
of H.R. 960 is expressed in a letter I am submitting for the Record. We 
were able to reach agreement on the legislation because of the 
widespread agreement on the very unique setting H.R. 960 will address.
  Tulare, a city of 40,350 located in California's Central Valley, has 
an unemployment rate of over 15 percent. The surrounding county has a 
similarly high-unemployment rate and residents of the area have median 
incomes that are 30 percent below the rest of California's. City of 
Tulare leaders have been looking for ways to bring more jobs to the 
region for years. Tulare's Redevelopment Agency has been working on a 
redevelopment program as part of that process and the agency needs H.R. 
960 to carry out its program.
  H.R. 960 is a very limited proposal intended to meet unique needs. It 
transfers the Federal reversionary interest in 12 parcels of land in 
the middle of the community to the city of Tulare's Redevelopment 
Agency so that the agency can pursue a 10-year program to finance and 
market a redevelopment program intended to help bring retailing 
opportunities and jobs to the community.
  There is no reason for the lands covered by H.R. 960 to be retained 
at the Federal level for recreational purposes. The parcels are in the 
midst of an urban, largely industrial area. The Bureau of Land 
Management [BLM] does not want these properties back and that the 
agency would seek some way of getting the land to Tulare if the 
railroad ever relinquished control. In similar circumstances, BLM has 
found these urban settings to be a drain on its resources because the 
unoccupied properties become casual dumping grounds which cost BLM 
money to clean up.

  If allowed to redevelop land adjacent to the rail line, the people of 
Tulare believe that it could generate more than 350 jobs in 6 years 
because of the agency's plan to create a retail shopping area.
  The city cannot gain control over the core of this corridor without a 
change in Federal law. In the last century, Congress extended rights of 
way to railroads in order to encourage the creation of a rail transport 
system. The Southern Pacific Railroad received rights for tracks and 
land adjacent to those tracks within what is now Tulare. Because the 
Federal Government has a reversionary interest in the right of way and 
surrounding properties, the redevelopment agency cannot obtain control 
of all the 12 parcels of land along the rail line that the city wishes 
to redevelop. The city cannot condemn the Federal interest and as a 
result, cannot make use of anything the community might secure from the 
railroad.
  The railroad and its successor, Union Pacific, run over 30 trains per 
day through the center of the city and as a result the tracks will 
probably never be abandoned under the law. The railroad will continue 
to argue that it controls the adjoining parcels of land because 
abandonment has not occurred. The Federal interest in these properties 
is at best a highly speculative, prospective one and that is the way 
things are likely to stay. That leaves Tulare with a problem.
  Most of the land along the tracks is empty. Small shops east of the 
rail line and a cotton seed mill and family homes on the other side 
look out on blighted property. There are a few small businesses 
operating on short-term leases and an abandoned gas station on railroad 
property along the corridor. For the most part, however, a visitor can 
see nothing but vacant lots that have cut off business growth from the 
east. The Tulare Redevelopment Agency's plan would preserve the 
railroad tracks while allowing some of this empty space in the center 
of town to be turned into more productive use.
  H.R. 960 clears the path for redevelopment. First, it gives the city 
clear title to one piece of property which Tulare already thought it 
had purchased from Southern Pacific before learning that railroad law 
clouded the title. Second, it transfers the reversionary interest in 11 
other parcels so that the redevelopment agency can deal with the 
railroad and secure the remaining properties.
  It is essential that we pass this bill because the redevelopment plan 
cannot be made to work piecemeal. Following the practices of the past 
and ``confirming'' title in someone who has already bought a clouded 
title only solves part of the city's problem. To ensure coherent 
economic redevelopment, the redevelopment agency has to control all the 
parcels of land so planning, marketing and community financing of the 
development are possible. Giving the city title to one piece of 
property will deny the city resources to continue developing. Forcing 
the city to come back to Congress each time an interest is transferred 
is a waste of the city's time and ours.
  The bill is not intended by the Resources Committee or by me to be 
dispositive of the status of other rail properties not addressed in the 
legislation nor is it intended to set a general policy for the 
treatment of railroad grants. Because the city needs the redevelopment 
H.R. 960 will facilitate, our colleagues decided this unique approach 
should be adopted in this case.
  I urge my colleagues to join me passing H.R. 960 today. Tulare wants 
to take control over its own economic destiny by putting lousy land to 
better use. Unless this bill is enacted, Congress will be in the way of 
a city that badly needs our help.

                                  U.S. Department of the Interior,


                                      Office of the Secretary,

                                    Washington, DC, June 24, 1997.
     Hon. Don Young,
     Chairman, Committee on Resources, House of Representatives, 
         Washington, DC.
       Dear Mr. Chairman: Thank you for this opportunity to 
     comment on H.R. 960, a bill that will extinguish the Federal 
     government's right of reversion to lands encumbered by a 
     railroad right-of-way within Tulare, California. The Bureau 
     of Land Management (BLM), testified at a hearing on May 20, 
     1997, before the Subcommittee on National Parks and Public 
     Lands on this bill. It is my understanding that this bill 
     will soon be marked up by your Committee and we would like 
     our views included for the Record. The Administration 
     supports the legislation as reported to your Committee.
       The BLM testified before the Subcommittee in support of 
     H.R. 960 if certain changes were made to the bill. Those 
     changes were made in Subcommittee markup and we now support 
     this bill.
       H.R. 960 would eliminate all rights of the United States to 
     land within a railroad right-of-way, granted by an Act of 
     Congress on July 27, 1886, in downtown Tulare, California. 
     The City of Tulare has requested this action in order to 
     obtain clear title to those portions of the right-of-way 
     within an Urban Redevelopment Plan adopted by the City. H.R. 
     960 would accomplish this by validating conveyances made 
     prior to or after April 15, 1996, to the City of Tulare's 
     Redevelopment Agency by the Southern Pacific Transportation 
     Company, the holder of the railroad right-of-way (or its 
     successor, presently Union Pacific Railroad).
       Currently, some 30 trains a day cross the tracks in the 
     center of this right-of-way through downtown Tulare and the 
     railroad owner has no plans to stop using the tracks. 
     Therefore, until abandonment is legally determined, the 
     property does not revert to the Federal government.
       Our understanding of the situation is that the City of 
     Tulare attempted to acquire one parcel of land within the 
     right-of-way for redevelopment purposes and was informed by 
     their title company that it would not insure title because of 
     the reversionary nature of the railroad's right-of-way. 
     Because of this, the City did not attempt to acquire any of 
     the remaining lands within its redevelopment area 
     (encompassing approximately 60 acres) pending resolution of 
     this issue.
       The right-of-way granted pursuant to the Act of July 27, 
     1866, is a grant of a limited fee, made on an implied 
     condition of reverter in the event that the company ceased to 
     use or retain the land for the purpose for which it was 
     granted. By the Act of May 24, 1920 (43 U.S.C. 913), the 
     railroad owners were authorized to convey to States, counties 
     or municipalities the outer portions of the right-of-way for 
     use as a public highway or street (such conveyances would 
     still be subject to the possible future reversion to the 
     United States). The 1988 National Trails System Act (16 
     U.S.C. 1248(c)), provides that ``. . . all right, title, 
     interest, and estate of the United States . . . shall remain 
     in the United States upon the abandonment or forfeiture . . 
     .'' of the railroad.
       BLM has examined the lands in downtown Tulare and has 
     concluded that because of their location, and having reviewed 
     the City's plans, the lands are best suited for local 
     development as planned by the Redevelopment Agency.
       BLM is not interested in managing the lands involved even 
     if they did revert to the Federal government. In the interim, 
     the City of Tulare deserves to be able to plan for the 
     development of its downtown and revitalize its business 
     center. The only way that this public goal can be realized is 
     for the Federal government to relinquish its interest in the 
     property involved through legislation such as H.R. 960.
       We made several recommended changes which have been 
     incorporated in the bill, including the deletion of the 
     waiver of environmental laws and revised language clarifying 
     that only conveyances from the railroad to the Redevelopment 
     Agency would be validated. Finally, we requested that a map 
     of this area be on file with the BLM and that we have an 
     opportunity to see such a map before markup. We have reviewed 
     that map and are satisfied with it.
       Thank you for the opportunity to comment on this 
     legislation. The Office of Management and Budget has advised 
     us that it has no objection to the submission of this report 
     from the standpoint of the President's program.
           Sincerely,
                                                      Piet deWitt,
                                Acting Deputy Assistant Secretary.

  Mr. Speaker, I thank the chairman and ranking member once again.
  Mr. FALEOMAVAEGA. Mr. Speaker, I have no additional speakers, and I 
yield back the balance of my time.

[[Page H4857]]

  Mr. HANSEN. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Goodling). The question is on the motion 
offered by the gentleman from Utah [Mr. Hansen] that the House suspend 
the rules and pass the bill, H.R. 960, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________