BILL NUMBER: AB 3034	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 21, 2008
	AMENDED IN ASSEMBLY  APRIL 9, 2008

INTRODUCED BY   Assembly Members Galgiani and Ma
   (Principal coauthor: Assembly Member Davis)
   (  Coauthor:   Assembly Member 
 Aghazarian   Coauthors:   Assembly
Members   Aghazarian,   Karnette,   and
Solorio  )
   (  Coauthor:   Senator  
Steinberg   Coauthors:   Senators  
Alquist,   Steinberg,   and Torlakson  )

                        FEBRUARY 22, 2008

   An act to amend Sections 2704.04, 2704.06, 2704.08, 2704.09, and
2704.095 of the Streets and Highways Code, and to amend Sections 1,
3, and 4 of Chapter 697 of the Statutes of 2002, relating to
transportation, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 3034, as amended, Galgiani. Safe, Reliable High-Speed Passenger
Train Bond Act for the 21st Century.
   Existing law, Chapter 697 of the Statutes of 2002, as amended by
Chapter 71 of the Statutes of 2004 and Chapter 44 of the Statutes of
2006, provides for submission of the Safe, Reliable High-Speed
Passenger Train Bond Act for the 21st Century to the voters for
approval at the November 4, 2008, general election. Subject to voter
approval, the act would provide for the issuance of $9.95 billion of
general obligation bonds, $9 billion of which would be available in
conjunction with any available federal funds for planning and
construction of a high-speed train system pursuant to the business
plan of the High-Speed Rail Authority, and $950 million of which
would be available for capital projects on other passenger rail lines
to provide connectivity to the high-speed train system and for
capacity enhancements and safety improvements to those lines.
   This bill would make various revisions to the bond act to be
submitted to the voters. The bill would refer to construction of a
high-speed train system consistent with the authority's certified
environmental impact report of November 2005, rather than with the
final business plan of June 2000. The bill would revise the
descriptions of route corridors of the proposed high-speed train
system. The bill would require excess revenues from operation of the
high-speed train system beyond the amount needed for high-speed train
purposes, as determined by the authority, to be used to finance
construction of the high-speed train system, and any remaining
revenue to be deposited in the General Fund. The bill would require
that not more than 10% of bond proceeds be used for environmental
studies, planning, and preliminary engineering activities, and would
require the authority to have a detailed funding plan for each
segment of the system that identifies the full cost of construction
and the sources of revenues for that segment, prior to awarding a
construction contract for the segment. The bill would require the
authority to give priority in selecting segments for construction to
those segments that are expected to require the least amount of bond
funds as a percentage of total cost of construction, among other
considerations.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1 of Chapter 697 of the Statutes of 2002, as
amended by Section 1 of Chapter 71 of the Statutes of 2004, is
amended to read:
   Section 1.  (a) The continuing growth in California's population
and the resulting increase in traffic congestion, air pollution,
greenhouse gas emissions, and the continuation of urban sprawl make
it imperative that the state proceed quickly to construct a
state-of-the-art high-speed passenger train system to serve major
metropolitan areas.
   (b) The High-Speed Rail Authority, after extensive studies and
analysis, proposes the construction of a high-speed train system that
serves major population centers in the state and that links regional
and local transit systems to form an integrated transportation
system throughout the state. The system will link all of the state's
major population centers, including Sacramento, the Bay Area, the
 central valley   Cent   ral Valley
 , Los Angeles, the Inland Empire, Orange County, and San Diego.

   (c) The high-speed train system proposed by the authority will
cost about one-third of what it would cost to provide the same level
of mobility and service with highway and airport improvements and
will contribute significantly toward a reduction in air pollution and
global warming.
   (d) The high-speed train system, once it is completed and becomes
operational, will contribute significantly toward the goal of
reducing greenhouse gas emissions and other air pollutants and will
help reduce California's dependence on foreign energy sources.
   (e) The high-speed passenger train bond funds are intended to
encourage the federal government and the private sector to make a
significant contribution toward the construction of the high-speed
train system.
   (f) It is the intent of the Legislature that the entire high-speed
train system shall be constructed as quickly as possible in order to
maximize ridership and the mobility of Californians, and that it be
completed no later than 2020, and that all phases shall be built in a
manner that yields maximum benefit consistent with available
revenues.
  SEC. 2.  Section 2704.04 of the Streets and Highways Code, as added
by Section 2 of Chapter 697 of the Statutes of 2002, is amended to
read:
   2704.04.  (a) It is the intent of the Legislature by enacting this
chapter and of the people of California by approving the bond
measure pursuant to this chapter to initiate the construction of a
high-speed train system consistent with the authority's certified
environmental impact report of November 2005.
   (b) (1) Nine billion dollars ($9,000,000,000) of the proceeds of
bonds authorized pursuant to this chapter, as well as federal funds
and other revenues made available to the authority, to the extent
consistent with federal and other fund source conditions, shall be
used for planning and eligible capital costs, as defined in
subdivision (c), for the purpose of including, but not limited to,
the following high-speed train system corridors:
   (A) Sacramento to Stockton to Fresno.
   (B) San Francisco Transbay Terminal to San Jose to Fresno.
   (C) Oakland to San Jose.
   (D) Fresno to Bakersfield to Palmdale to Los Angeles Union
Station.
   (E) Los Angeles Union Station to Riverside to San Diego.
   (F) Los Angeles Union Station to Anaheim to Irvine.
   (G) Altamont Corridor connecting the  central valley to
the east bay   Central Valley to the East Bay  .

   (2) Nothing in this section shall prejudice the authority's
determination and selection of the alignment from the Central Valley
to the Bay Area in its certification of the environmental impact
report.  
   (2) 
    (3)  Revenues of the authority, generated by operations
of the high-speed train system above and beyond operating and
maintenance costs and financing obligations, as determined by the
authority, shall be used to finance construction of the high-speed
train system. If, after satisfaction of the foregoing, there remain
additional revenues, those revenues shall be deposited in the General
Fund.
   (c) Capital costs eligible to be paid from proceeds of bonds
authorized for high-speed train purposes pursuant to this chapter
include all activities necessary for acquisition of right-of-way,
construction of tracks, structures, power systems, and stations,
purchase of rolling stock and related equipment, and other related
capital facilities and equipment.
   (d) Proceeds of bonds authorized pursuant to this chapter shall
not be used for any operating or maintenance costs of trains or
facilities.
   (e) The State Auditor shall perform periodic audits of the
authority's use of proceeds of bonds authorized pursuant to this
chapter for consistency with the requirements of this chapter.
  SEC. 3.  Section 2704.06 of the Streets and Highways Code, as added
by Section 2 of Chapter 697 of the Statutes of 2002, is amended to
read:
   2704.06.  Nine billion dollars ($9,000,000,000) of the money in
the fund, upon appropriation by the Legislature, shall be available,
without regard to fiscal years, for planning and construction of a
high-speed train system in this state, consistent with the authority'
s certified environmental impact report of November 2005, as
subsequently modified pursuant to environmental studies conducted by
the authority.
  SEC. 4.  Section 2704.08 of the Streets and Highways Code, as added
by Section 2 of Chapter 697 of the Statutes of 2002, is amended to
read:
   2704.08.  (a) Proceeds of bonds authorized for high-speed train
purposes pursuant to this chapter shall not be used for more than
one-half of the total cost of construction of track and station costs
of each segment of the high-speed train system.
   (b) Not more than 10 percent of the proceeds of bonds authorized
pursuant to this chapter shall be used for environmental studies,
planning, and preliminary engineering activities.
   (c) In selecting each specific segment for construction and prior
to awarding a construction contract, the authority shall have a
detailed funding plan for that segment that identifies the full cost
of constructing the segment and the sources of all revenues needed to
complete construction of the segment.
   (d) In selecting segments for construction, the authority shall
give priority to those segments that are expected to require the
least amount of bond funds as a percentage of total cost of
construction, shall consider the utility of those segments for
passenger rail services other than the high-speed train system, and
shall ensure that any passenger service other than the high-speed
train system provided on those segments will not result in any
unreimbursed operating or maintenance cost to the authority.
  SEC. 5.  Section 2704.09 of the Streets and Highways Code, as added
by Section 2 of Chapter 697 of the Statutes of 2002, is amended to
read:
   2704.09.  The high-speed train system to be constructed pursuant
to this chapter shall have the following characteristics:
   (a) Electric trains that are capable of sustained maximum revenue
operating speeds of no less than 200 miles per hour.
   (b) Maximum nonstop service travel times for each corridor that
shall not exceed the following:
   (1) San Francisco-Los Angeles Union Station: two hours, 42
minutes.
   (2) Oakland-Los Angeles Union Station: two hours, 42 minutes.
   (3) San Francisco-San Jose: 31 minutes.
   (4) San Jose-Los Angeles: two hours, 14 minutes.
   (5) San Diego-Los Angeles: one hour.
   (6) Inland Empire-Los Angeles: 29 minutes.
   (7) Sacramento-Los Angeles: two hours, 22 minutes.
   (8) Sacramento-San Jose: one hour, 12 minutes.
   (c) Achievable operating headway (time between successive trains)
shall be five minutes or less.
   (d) The total number of stations to be served by high-speed trains
for all of the corridors described in subdivision (b) of Section
2704.04 shall not exceed 24. There shall be no station between the
Gilroy station and the Merced station.
   (e) Trains shall have the capability to transition intermediate
stations, or to bypass those stations, at mainline operating speed.
   (f) For each corridor described in subdivision (b), passengers
shall have the capability of traveling from any station on that
corridor to any other station on that corridor without being required
to change trains.
   (g) In order to reduce impacts on communities and the environment,
the alignment for the high-speed train system shall follow existing
transportation or utility corridors to the extent possible and shall
be financially viable, as determined by the authority.
   (h) Stations shall be located in areas with good access to local
mass transit or other modes of transportation.
   (i) The high-speed train system shall be planned and constructed
in a manner that minimizes urban sprawl and impacts on the natural
environment.
   (j) Preserving wildlife corridors and mitigating impacts to
wildlife movement, where feasible as determined by the authority, in
order to limit the extent to which the system may present an
additional barrier to wildlife's natural movement.
  SEC. 6.  Section 2704.095 of the Streets and Highways Code, as
added by Section 2 of Chapter 697 of the Statutes of 2002, is amended
to read:
   2704.095.  (a) (1) Of the proceeds of bonds authorized pursuant to
this chapter, nine hundred fifty million dollars ($950,000,000)
shall be allocated to eligible recipients for capital improvements to
intercity and commuter rail lines and urban rail systems that
provide direct connectivity to the high-speed train system and its
facilities, or that are part of the construction of the high-speed
train system as that system is described in subdivision (b) of
Section 2704.04, or that provide capacity enhancements and safety
improvements. Funds under this section shall be available upon
appropriation by the Legislature in the Annual Budget act for the
eligible purposes described in subdivision (d).
   (2) Twenty percent (one hundred ninety million dollars
($190,000,000)) of the amount authorized by this section shall be
allocated for intercity rail to the Department of Transportation, for
state-supported intercity rail lines that provide regularly
scheduled service and use public funds to operate and maintain rail
facilities, rights-of-way, and equipment. A minimum of 25 percent of
the amount available under this paragraph (forty-seven million five
hundred thousand dollars ($47,500,000)) shall be allocated to each of
the state's three intercity rail corridors.
   The California Transportation Commission shall allocate the
available funds to eligible recipients consistent with this section
and shall develop guidelines, in consultation with the authority, to
implement the requirements of this section. The guidelines shall
include provisions for the administration of funds, including, but
not limited to, the authority of the intercity corridor operators to
loan these funds by mutual agreement between intercity rail
corridors.
   (3) Eighty percent (seven hundred sixty million dollars
($760,000,000)) of the amount authorized by this section shall be
allocated to eligible recipients, except intercity rail, as described
in subdivision (c) based upon a percentage amount calculated to
incorporate all of the following:
   (A) One-third of the eligible recipient's percentage share of
statewide track miles.
   (B) One-third of the eligible recipient's percentage share of
statewide annual vehicle miles.
   (C) One-third of the eligible recipient's percentage share of
statewide annual passenger trips.
   The California Transportation Commission shall allocate the
available funds to eligible recipients consistent with this section
and shall develop guidelines to implement the requirements of this
section.
   (b) For the purposes of this section, the following terms have the
following meanings:
   (1) "Track miles" means the miles of track used by a public agency
or joint powers authority for regular passenger rail service.
   (2) "Vehicle miles" means the total miles traveled, commencing
with pullout from the maintenance depot, by all locomotives and cars
operated in a train consist for passenger rail service by a public
agency or joint powers authority.
   (3) "Passenger trips" means the annual unlinked passenger
boardings reported by a public agency or joint powers authority for
regular passenger rail service.
   (4) "Statewide" when used to modify the terms in paragraphs (A),
(B), and (C) of paragraph (3) of subdivision (a) means the combined
total of those amounts for all eligible recipients.
   (c) Eligible recipients for funding under paragraph (3) of
subdivision (a) shall be public agencies and joint powers authorities
that operate regularly scheduled passenger rail service in the
following categories:
   (1) Commuter rail.
   (2) Light rail.
   (3) Heavy rail.
   (4) Cable car.
   (d) Funds allocated pursuant to this section shall be used for
connectivity with the high-speed train system or for the
rehabilitation or modernization of, or safety improvements to, tracks
utilized for public passenger rail service, signals, structures,
facilities, and rolling stock.
   (e) Eligible recipients may use the funds for any eligible rail
element set forth in subdivision (d).
   (f) In order to be eligible for funding under this section, an
eligible recipient under paragraph (3) of subdivision (a) shall
provide matching funds in an amount not less than the total amount
allocated to the recipient under this section.
   (g) An eligible recipient of funding under paragraph (3) of
subdivision (a) shall certify that it has met its matching funds
requirement, and all other requirements of this section, by
resolution of its governing board, subject to verification by the
California Transportation Commission.
   (h) Funds made available to an eligible recipient under paragraph
(3) of subdivision (a) shall supplement existing local, state, or
federal revenues being used for maintenance or rehabilitation of the
passenger rail system. Eligible recipients of funding under paragraph
(3) of subdivision (a) shall maintain their existing commitment of
local, state, or federal funds for these purposes in order to remain
eligible for allocation and expenditure of the additional funding
made available by this section.
   (i) In order to receive any allocation under this section, an
eligible recipient under paragraph (3) of subdivision (a) shall
annually expend from existing local, state, or federal revenues being
used for the maintenance or rehabilitation of the passenger rail
system in an amount not less than the annual average of its
expenditures from local revenues for those purposes during the
1998-99, 1999-2000, and 2000-01 fiscal years.
   (j) Funds allocated pursuant to this section to the Southern
California Regional Rail Authority for eligible projects within its
service area shall be apportioned each fiscal year in accordance with
memorandums of understanding to be executed between the Southern
California Regional Rail Authority and its member agencies. The
memorandum or memorandums of understanding shall take into account
the passenger service needs of the Southern California Regional Rail
Authority and of the member agencies, revenue attributable to member
agencies, and separate contributions to the Southern California
Regional Rail Authority from the member agencies.
  SEC. 7.  Section 3 of Chapter 697 of the Statutes of 2002, as
amended by Section 3 of Chapter 44 of the Statutes of 2006, is
amended to read:
   Sec. 3.  Section 2 of Chapter 697 of the Statutes of 2002, as
amended by Sections 2 and 3 of Chapter 71 of the Statutes of 2004, as
further amended by Sections 1 and 2 of Chapter 44 of the Statutes of
2006, and as further amended by Sections 2 to 6, inclusive, of the
act amending this section in the 2007-08 Regular Session, shall take
effect upon the adoption by the voters of the Safe, Reliable
High-Speed Passenger Train Bond Act for the 21st Century, as set
forth in Section 2 of Chapter 697 of the Statutes of 2002, as amended
by Sections 2 and 3 of Chapter 71 of the Statutes of 2004, as
further amended by Sections 1 and 2 of Chapter 44 of the Statutes of
2006, and as further amended by Sections 2 to 6, inclusive, of the
act amending this section in the 2007-08 Regular Session.
  SEC. 8.  Section 4 of Chapter 697 of the Statutes of 2002, as
amended by Section 4 of Chapter 44 of the Statutes of 2006, is
amended to read:
   Sec. 4.  (a) Section 2 of Chapter 697 of the Statutes of 2002, as
amended by Sections 2 and 3 of Chapter 71 of the Statutes of 2004, as
further amended by Sections 1 and 2 of Chapter 44 of the Statutes of
2006, and as further amended by Sections 2 to 6, inclusive, of the
act amending this section in the 2007-08 Regular Session, shall be
submitted to the voters at the November 4, 2008, general election in
accordance with provisions of the Government Code and the Elections
Code governing the submission of statewide measures to the voters.
   (b) Notwithstanding any other provision of law, all ballots of the
November 4, 2008, general election shall have printed thereon and in
a square thereof, exclusively, the words "Safe, Reliable High-Speed
Passenger Train Bond Act for the 21st Century" and in the same square
under those words, the following in 8-point type: "This act provides
for the Safe, Reliable High-Speed Passenger Train Bond Act for the
21st Century. For the purpose of reducing traffic on the state's
highways and roadways, upgrading commuter transportation, improving
people's ability to get safely from city to city, alleviating
congestion at airports, reducing air pollution, and providing for
California's growing population, shall the state build a high-speed
train system and improve existing passenger rail lines serving the
state's major population centers by creating a rail trust fund that
will issue bonds totaling $9.95 billion, paid from existing state
funds at an average cost of ____ dollars ($____) per year over the
30-year life of the bonds, with all expenditures subject to an
independent audit?" The blank space in the question to appear on the
ballot pursuant to this subdivision shall be filled in by the
Attorney General with the appropriate figure provided by the
Legislative Analyst relative to the annual average cost of the bonds.
Opposite the square, there shall be left spaces in which the voters
may place a cross in the manner required by law to indicate whether
they vote for or against the measure.
   (c) Notwithstanding Sections 13247 and 13281 of the Elections
Code, the language in subdivision (b) shall be the only language
included in the ballot label for the condensed statement of the
ballot title, and the Attorney General shall not supplement, subtract
from, or revise that language, except that the Attorney General may
include the financial impact summary prepared pursuant to Section
9087 of the Elections Code and Section 88003 of the Government Code.
The ballot label is the condensed statement of the ballot title and
the financial impact summary.
   (d) Where the voting in the election is done by means of voting
machines used pursuant to law in the manner that carries out the
intent of this section, the use of the voting machines and the
expression of the voters' choice by means thereof are in compliance
with this section.
  SEC. 9.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to modify the provisions of a general obligation bond
measure on the November 4, 2008, general election ballot that would
authorize the issuance and sale of bonds for the financing of a
high-speed passenger train system and for other related purposes, it
is necessary that this act take effect immediately.