SB 615

Current law provides that a person who acquires an interest in property for

valuable consideration without notice that there is a prior adverse interest takes the

interest free and clear of the prior interest, if that prior interest is based on any of

a number of situations specified in current law. Current law also provides exceptions

for certain prior interests in real estate, such as real estate owned by a public service

corporation, railroad corporation, electric cooperative, or the United States, the

state, or a political subdivision. This bill creates an additional exception for real

estate owned by a "natural gas company," as defined under a federal law that

provides that "natural gas company" means a person engaged in the following: 1) the

transportation of natural gas in interstate commerce; or 2) the sale in interstate

commerce of natural gas for resale.

Current law also bars a person from commencing an action related to an

interest in real property unless an instrument expressly referring to the existence

of that interest has been recorded in the register of deeds of the county where the real

estate is located within 30 years before the date of commencing the action. In

addition, current law bars all claims to an interest in real property unless, within the

last 30 years, an instrument has been recorded expressly referring to the interest in

the real property. Current law also provides an exception to these provisions if the

record title of the property remains with a railroad corporation, a public service

corporation, a electric cooperative, the state, or a political subdivision of the state.

This bill creates an additional exception if the record title of the property remains

with a natural gas company, which is defined as described above.

Current law also allows any combination of municipalities of this state that

operate electric generation, transmission, or distribution facilities to establish a

municipal electric company for the joint production, transmission, or distribution of

electric power for the benefit of the municipalities. Current law defines

"municipality" for this purpose as a city, village, or town. This bill defines

"municipality" also to include an electric utility, or combined utility, that is owned or

operated by a city, village, or town. In addition, the bill allows any combination of

municipalities of this state and another state to establish a municipal electric

company. Current law also allows a municipal electric company to undertake certain

projects and enter into certain contracts and other agreements with other persons

and public agencies. Current law defines "person" to include business entities

organized under the laws of any state or the United States. This bill defines "person"

to also include business entities organized under the laws of any foreign nation or

subdivision of any foreign nation. Current law defines "public agency" to include

municipal and other governmental entities created under the laws of any state or the

United States, as well as any state or the United States. The bill defines "public

agency" to also include municipal and other governmental entities created under the

laws of any foreign nation or subdivision of any foreign nation, as well as any foreign