BILL NUMBER: SB 796 CHAPTERED 09/19/02 CHAPTER 696 FILED WITH SECRETARY OF STATE SEPTEMBER 19, 2002 APPROVED BY GOVERNOR SEPTEMBER 19, 2002 PASSED THE SENATE AUGUST 30, 2002 PASSED THE ASSEMBLY AUGUST 27, 2002 AMENDED IN ASSEMBLY AUGUST 25, 2002 AMENDED IN ASSEMBLY MARCH 11, 2002 AMENDED IN ASSEMBLY JULY 5, 2001 AMENDED IN ASSEMBLY JUNE 26, 2001 AMENDED IN SENATE APRIL 5, 2001 INTRODUCED BY Senator Costa FEBRUARY 23, 2001 An act to amend Sections 185020 and 185034 of, and to add Section 185038 to, the Public Utilities Code, relating to transportation. LEGISLATIVE COUNSEL'S DIGEST SB 796, Costa. High-Speed Rail Authority. Existing law creates the High-Speed Rail Authority with specified powers and duties relating to the development and implementation of an intercity high-speed rail system. Existing law provides for termination of the authority on December 31, 2003. Existing law authorized the authority to submit a high-speed rail financial plan, including various financing mechanisms, to the Secretary of State for placement on the general election ballot of 1998 or 2000 for voter approval. This bill would delete the termination date and the now-obsolete provisions relating to submission of the plan to the voters at the 1998 or 2000 general election. The bill would instead authorize the authority to submit the financial plans to the Legislature and the Governor and to keep the public informed of its activities. Existing law allows an action against a state agency that is required to be filed in a court in the County of Sacramento to also be filed in a court in any county in which the Attorney General has an office. This bill would require any legal or equitable action against the authority to be filed solely in an appropriate court in the County of Sacramento. This bill would incorporate additional changes to Section 185020 of the Public Utilities Code proposed by SB 1799, to become effective only if SB 1799 and this bill are enacted and become effective on or before January 1, 2002, and this bill is enacted last. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 185020 of the Public Utilities Code is amended to read: 185020. (a) There is in state government a High-Speed Rail Authority. (b) (1) The authority is composed of nine members as follows: (A) Five members appointed by the Governor. (B) Two members appointed by the Senate Committee on Rules. (C) Two members appointed by the Speaker of the Assembly. (2) For the purposes of making appointments to the authority, the Governor, the Senate Committee on Rules, and the Speaker of the Assembly shall take into consideration geographical diversity to ensure that all regions of the state are adequately represented. (c) Except as provided in subdivision (d), and until their successors are appointed, members of the authority shall hold office for terms of four years. A vacancy shall be filled by the appointing power making the original appointment, by appointing a member to serve the remainder of the term. (d) (1) On and after January 1, 2001, the terms of all persons who are then members of the authority shall expire, but those members may continue to serve until they are reappointed or until their successors are appointed. In order to provide for evenly staggered terms, persons appointed or reappointed to the authority after January 1, 2001, shall be appointed to initial terms to expire as follows: (A) Of the five persons appointed by the Governor, one shall be appointed to a term which expires on December 31, 2002, one shall be appointed to a term which expires on December 31, 2003, one shall be appointed to a term which expires on December 31, 2004, and two shall be appointed to terms which expires on December 31, 2005. (B) Of the two persons appointed by the Senate Committee on Rules, one shall be appointed to a term which expires on December 31, 2002, and one shall be appointed to a term which expires on December 31, 2004. (C) Of the two persons appointed by the Speaker of the Assembly, one shall be appointed to a term which expires on December 31, 2003, and one shall be appointed to a term which expires on December 31, 2005. (2) Following expiration of each of the initial terms provided for in this subdivision, the term shall expire every four years thereafter on December 31. (e) Members of the authority are subject to the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)). (f) From among its members, the authority shall elect a chairperson, who shall preside at all meetings of the authority, and a vice chairperson to preside in the absence of the chairperson. The chairperson shall serve a term of one year. (g) Five members of the authority constitute a quorum for taking any action by the authority. SEC. 1.5. Section 185020 of the Public Utilities Code is amended to read: 185020. (a) There is in state government a High-Speed Rail Authority. (b) (1) The authority is composed of nine members as follows: (A) Five members appointed by the Governor. (B) Two members appointed by the Senate Committee on Rules. (C) Two members appointed by the Speaker of the Assembly. (2) For the purposes of making appointments to the authority, the Governor, the Senate Committee on Rules, and the Speaker of the Assembly shall take into consideration geographical diversity to ensure that all regions of the state are adequately represented. Not less than two members shall be residents of the San Joaquin Valley. (c) Except as provided in subdivision (d), and until their successors are appointed, members of the authority shall hold office for terms of four years. A vacancy shall be filled by the appointing power making the original appointment, by appointing a member to serve the remainder of the term. (d) (1) On and after January 1, 2001, the terms of all persons who are then members of the authority shall expire, but those members may continue to serve until they are reappointed or until their successors are appointed. In order to provide for evenly staggered terms, persons appointed or reappointed to the authority after January 1, 2001, shall be appointed to initial terms to expire as follows: (A) Of the five persons appointed by the Governor, one shall be appointed to a term which expires on December 31, 2002, one shall be appointed to a term which expires on December 31, 2003, one shall be appointed to a term which expires on December 31, 2004, and two shall be appointed to terms which expire on December 31, 2005. (B) Of the two persons appointed by the Senate Committee on Rules, one shall be appointed to a term which expires on December 31, 2002, and one shall be appointed to a term which expires on December 31, 2004. (C) Of the two persons appointed by the Speaker of the Assembly, one shall be appointed to a term which expires on December 31, 2003, and one shall be appointed to a term which expires on December 31, 2005. (2) Following expiration of each of the initial terms provided for in this subdivision, the term shall expire every four years thereafter on December 31. (e) Members of the authority are subject to the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)). (f) From among its members, the authority shall elect a chairperson, who shall preside at all meetings of the authority, and a vice chairperson to preside in the absence of the chairperson. The chairperson shall serve a term of one year. (g) Five members of the authority constitute a quorum for taking any action by the authority. (h) The authority shall prepare a report for submission to the Legislature on or before December 1, 2003, that includes recommendations for changes to the composition of the membership of the authority in a manner that improves representation. The recommendations shall be developed with input from the public during regularly scheduled hearings of the authority, and shall include, but not be limited to, consideration of the most recent legislative changes to the composition of the membership of the authority and how the membership may best be structured in order to ensure equitable, regional representation. SEC. 2. Section 185034 of the Public Utilities Code is amended to read: 185034. The authority may do any of the following: (1) Conduct engineering and other studies related to the selection and acquisition of rights-of-way and the selection of a franchisee, including, but not limited to, environmental impact studies, socioeconomic impact studies, and financial feasibility studies. (2) Evaluate alternative high-speed rail technologies, systems and operators, and select an appropriate high-speed rail system. (3) Establish criteria for the award of a franchise. (4) Accept grants, fees, and allocations from the state, from political subdivisions of the state or from the federal government, foreign governments, and private sources. (5) Select a proposed franchisee, a proposed route, and proposed terminal sites. (6) Enter into contracts with public and private entities for the preparation of the plan. (7) Prepare a detailed financing plan, including any necessary taxes, fees, or bonds to pay for the construction of the high-speed train network. (8) Develop a proposed high-speed rail financial plan, including necessary taxes, bonds, or both, or other indebtedness, and submit the plan to the Legislature and to the Governor. (9) Keep the public informed of its activities. SEC. 3. Section 185038 is added to the Public Utilities Code, to read: 185038. Any legal or equitable action brought against the authority shall be brought in a court of competent jurisdiction in the County of Sacramento. For purposes of this section, subdivision (1) of Section 401 of the Code of Civil Procedure does not apply. SEC. 4. Section 1.5 of this bill incorporates amendments to Section 185020 of the Public Utilities Code proposed by both this bill and SB 1799. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2003, (2) each bill amends Section 185020 of the Public Utilities Code, and (3) this bill is enacted after SB 1799, in which case Section 185020 of the Public Utilities Code as amended by SB 1799, shall remain operative only until the operative date of this bill, at which time Section 1.5 of this bill shall become operative, and Section 1 of this bill shall not become operative.