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News & Press: Sacramento Report

Bill Prohibiting Sale of Federal Lands Sent to Governor

Monday, September 18, 2017  
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Senate Bill 50 (Allen) was sent to the Governor in the legislative session's waning days. As mentioned in a prior enews article, the bill makes any transfer of federal lands void ab initio unless the State Lands Commission waives its first right of refusal. CLTA opposed the measure on the grounds that it is unconstitutional and places innocent property owners and title company employees at risk of being fined.

The bill was amended in the Senate in June to address two narrow types of transfers – it now does not apply to the renewal of an existing lease or the transfer of lands to a Native American tribe. The bill also now allows the State to waive its right to a routine transfer, which includes a federal exchange of lands for equal value with a private party. A July amendment expanded the definition of a "routine" transaction to include one in which the sale of residential property is acquired by a federal agency through a foreclosure proceeding.

The CLTA will request that the Governor veto the bill.

California Land Title Association

1215 K Street #1816 Sacramento, CA 95814-3905
Email:  |  Phone: 916-444-2647  |   Fax: 916-444-2851