[Senate Report 105-127]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 241
105th Congress                                                   Report
                                 SENATE

 1st Session                                                    105-127
_______________________________________________________________________


 
 TO VALIDATE CERTAIN CONVEYANCES IN THE CITY OF TULARE, TULARE COUNTY, 
                               CALIFORNIA
                                _______
                                

                October 31, 1997.--Ordered to be printed

_______________________________________________________________________


  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 960]

    The Committee on Energy and Natural Resources, to which was 
referred the Act (H.R. 960) to validate certain conveyances in 
the City of Tulare, Tulare County, California, and for other 
purposes, having considered the same, reports favorably thereon 
without amendment and recommends that the Act do pass.

                                purpose

    The purpose of H.R. 960 is to validate certain conveyances 
of the Southern Pacific Railroad Right-of-Way through the city 
of Tulare, California to the City's Redevelopment Authority.

                          background and need

    From 1862 to 1871, the Congress passed the Pacific Railroad 
Acts to promote a system of railroads in the Western United 
States. The Acts granted the Southern Pacific Railroad Company 
(the ``Railroad'') a right-of-way along the route where the 
tracks were eventually constructed. In Tulare, California, this 
right-of-way measures 220 feet on both sides of the tracks. 
That portion of the right-of-way which passes through Tulare 
falls within the city's Downtown Redevelopment Area.
    The courts have characterized the Pacific Railroad Act 
right-of-way grants as ``limited fee made on an implied 
condition of reverter'' if the Railroad ceases to sue the 
right-of-way for the purposes for which it was granted. If the 
Railroad ever forfeited or abandoned the land for railroad use, 
ownership would automatically revert back to the United States. 
If this were to happen, the Bureau of Land Management (BLM) 
would assume management of these lands.
    Over 100 years have passed since the Railroad started using 
this right-of-way, and its successor, Union Pacific, still runs 
over 30 trains per day through the city. However, because the 
Railroad is unable to pass clear title to the land within the 
right-of-way, redevelopment along the tracks is practically 
impossible. Consequently, the city of Tulare has a barren strip 
of weeds, sand, and abandoned buildings 200 feet wide on both 
sides of the tracks.
    H.R. 960 will facilitate redevelopment of the city's 
downtown area by validating the conveyance of these rights-of-
way (comprising approximately 60 acres) from the Southern 
Pacific Railroad (and its successor, the Union Pacific 
Railroad) to the Tulare Redevelopment Agency. With the transfer 
completed, the Agency will be able to pursue its ten-year 
redevelopment program. In order to proceed with financing, 
marketing, and other redevelopment activities, the Agency must 
have the ability to acquire clear title to all these parcels 
without the incombrance of the federal reversionary interest.
    The BLM has examined the lands in question along with the 
city's redevelopment plans, and has concluded that the parcels 
are best suited for local development.

                          legislative history

    H.R. 960, sponsored by Congressman William M. Thomas, was 
passed by the House of representatives by a voice vote on July 
8, 1997. On September 25, 1997 the Senate Subcommittee on 
Forests and Public Land Management held a hearing on the bill.

           committee recommendation and tabulations of votes

    The Senate Committee on Energy and Natural Resources, in 
open business session on October 22, 1997, by voice vote of a 
quorum present, recommends that the Senate pass H.R. 960 
without amendment.

                      section-by-section analysis

    Section 1 contains congressional findings.
    Section 2(a) validates all conveyances to the Redevelopment 
Agency of the city of Tulare, California for the lands 
described in Sec. 2(b) by the Southern Pacific Transportation 
Company or its successors.
    Subsection (b) identifies the lands for which the 
conveyances are validated.
    Subsection (c) clarifies that nothing in the bill impairs 
existing access across the lands described in Subsection (b).
    Subsection (d) relinquished all Federal right of surface 
entry to the mineral estate of the lands described in Section 
2(b).

                   cost and budgetary considerations

    The following estimate of the cost of this measure has been 
provided by the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, October 23, 1997.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources, U.S. Senate, 
        Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 960, an act to 
validate certain conveyances in the city of Tulare, Tulare 
County, California, and for other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Victoria V. 
Heid (for federal costs) and Marjorie Miller (for the state and 
local impact).
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

               congressional budget office cost estimate

H.R. 960--An act to validate certain conveyances in the city of Tulare, 
        Tulare County, California, and for other purposes

    H.R. 960 would give the Southern Pacific Transportation 
Company or its successors the right to convey title to certain 
lands in the city of Tulare, California, that form part of a 
right-of-way previously granted to the railroad by the federal 
government. Hence, the act would validate land conveyances 
where the federal government owns the underlying title and the 
railroad controls the right-of-way. The legislation would apply 
to both past and future conveyances. CBO estimates that 
enacting H.R. 960 would have little or no impact on the federal 
budget.
    Under current law, if the railroad ceased to operate on the 
right-of-way, then land comprising the right-of-way would 
revert to federal ownership. According to the Bureau of Land 
Management (BLM), if the agency were to receive the land it 
would have no interest in retaining ownership and would either 
sell it, exchange it, or transfer it to local government. BLM 
estimates that the portion of the right-of-way that would be 
affected by H.R. 960 has a market value of about $300,000.
    Enacting H.R. 960 would affect direct spending if property 
that would have reverted to the federal government and been 
sold under current law is not sold because of conveyances made 
pursuant to this bill. Because H.R. 960 could affect direct 
spending, pay-as-you-go procedures would apply. But the 
likelihood of any income to the Treasury from sale of the 
affected property over the next 10 years is small.
    H.R. 960 contains no intergovernmental of private-sector 
mandates as defined in the Unfunded Mandates Reform Act of 1995 
and would impose no costs on state, local, or tribal 
governments. The bill would benefit the city of Tulare by 
clearing the title to one parcel of land already purchased by 
the city and allowing the Tulare Redevelopment Agency to 
purchase and develop several additional parcels.
    On July 3, 1997, CBO prepared a cost estimate for H.R. 960 
as ordered reported by the House Committee on Resources on June 
25, 1997. The two versions of H.R. 960 are identical, as are 
the cost estimates.
    The CBO staff contacts for this estimate are Victoria V. 
Heid (for federal costs) and Marjorie Miller (for the state and 
local impact). The estimate was approved by Paul N. Van de 
Water, Assistant Director for Budget Analysis.

                      regulatory impact evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out H.R. 960. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from 
enactment of H.R. 960 as ordered reported.

                        executive communications

    The legislative report received by the Committee from the 
Department of the Interior setting forth Executive agency 
recommendations relating to H.R. 960 is set forth below:

                   U.S. Department of the Interior,
                                   Office of the Secretary,
                                  Washington, DC, October 21, 1997.
Hon. Frank Murkowski,
Chairman, Senate Committee on Energy and Natural Resources, Washington, 
        DC
    Dear Mr. Chairman. Thank you for the opportunity to present 
the views of the Department of the Interior (Interior) on H.R. 
960, a bill to extinguish the Federal government's right of 
reversion to lands encumbered by a railroad right-of-way within 
Tulare, California. Interior testified on this bill before the 
Subcommittee on Forests and Public Land Management on September 
25, 1997. Interior also testified before the House Resources 
Subcommittee on National Parks and Public Lands on May 20, 
1997. In the House, Interior testified it would support the 
bill if certain changes were made to the bill. Those changes 
have been made in the bill as passed by the House. Interior 
therefore supports passage of H.R. 960.
    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.
    The Office of Management and Budget has advised that there 
is no objection to the presentation of this report from the 
standpoint of the President's program.
            Sincerely,
                                             Bob Armstrong,
              Assistant Secretary for Land and Minerals Management.

                        changes in existing law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by the Act H.R. 960, as 
ordered reported.