BILL NUMBER: AB 3034	CHAPTERED
	BILL TEXT

	CHAPTER  267
	FILED WITH SECRETARY OF STATE  AUGUST 26, 2008
	APPROVED BY GOVERNOR  AUGUST 26, 2008
	PASSED THE SENATE  AUGUST 7, 2008
	PASSED THE ASSEMBLY  AUGUST 13, 2008
	AMENDED IN SENATE  AUGUST 6, 2008
	AMENDED IN SENATE  JULY 10, 2008
	AMENDED IN SENATE  JULY 7, 2008
	AMENDED IN SENATE  JUNE 26, 2008
	AMENDED IN ASSEMBLY  APRIL 21, 2008
	AMENDED IN ASSEMBLY  APRIL 9, 2008

INTRODUCED BY   Assembly Members Galgiani and Ma
   (Principal coauthors: Assembly Members Davis and Parra)
   (Coauthors: Assembly Members Adams, Aghazarian, Arambula, Beall,
Berryhill, Caballero, Charles?Calderon, Carter, Coto, De?Leon,
Dymally, Houston, Huffman, Karnette, Leno, Lieu, Maze, Mullin, Price,
Ruskin, Saldana, Solorio, Torrico, and Wolk)
   (Coauthors: Senators Alquist, Cedillo, Florez, Kuehl, Scott,
Simitian, Steinberg, Torlakson, and Wiggins)

                        FEBRUARY 22, 2008

   An act to add Sections 185033, 185035, and 185037 to the Public
Utilities Code, to add Chapter 20 (commencing with Section 2704) to
Division 3 of the Streets and Highways Code, and to repeal Sections
1, 2, 3, and 4 of Chapter 697 of the Statutes of 2002, relating to
financing a high-speed passenger train system by providing the funds
necessary therefor through the issuance and sale of bonds of the
State of California and by providing for the handling and disposition
of those funds, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 3034, 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 repeal the above-referenced provisions and enact
new provisions submitting a $9.95 billion general obligation bond act
to the voters for approval at the November 4, 2008, general election
for the same purposes. The bill would revise and recast the
previously proposed bond act. The bill would refer to construction of
a high-speed train system consistent with the authority's certified
environmental impact reports of November 2005 and July 9, 2008,
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
operating and maintenance costs and financing obligations, as
determined by the authority, to be used for construction, expansion,
improvement, replacement, and rehabilitation of the high-speed train
system. The bill would require that not more than 10% of high-speed
rail bond proceeds be used for environmental studies, planning, and
preliminary engineering activities and that not more than 2.5% of
high-speed rail bond proceeds be used for administrative expenses,
except as specified. The bill would generally require the authority
to complete various funding plans and financial analyses, as
specified, prior to submitting a request for appropriation of bond
funds for eligible capital costs and prior to committing bond
proceeds for expenditure for construction and real property and
equipment acquisition, but would also provide that up to 7.5% of
high-speed rail bond proceeds may be used for specified expenditures
outside of those requirements. The bill would require the authority
to give priority in selecting corridors for construction to those
corridors that are expected to require the least amount of bond funds
as a percentage of total cost of construction, among other
considerations. The bill would provide for the bonds to have a final
maturity of not more than 40 years.
   This bill would require the bond measure to appear first on the
November 4, 2008, general election ballot and to be designated as
Proposition 1A. The bill would specify the ballot label and title and
summary to be used for the measure.
   Existing law creates the High-Speed Rail Authority with specified
powers and duties relative to the development and implementation of a
high-speed train system. Existing law makes the Department of
Transportation responsible for improving and maintaining the state
highway system.
   This bill would require the authority to revise its business plan
by September 1, 2008, as specified, and to submit the revised plan to
the Legislature. The bill would also require the authority to
establish an independent peer review group for the purpose of
reviewing the planning, engineering, financing, and other elements of
the authority's plans and issuing an analysis of appropriateness and
accuracy of the authority's assumptions and an analysis of the
viability of the authority's funding plan for each corridor. This
bill would, for any project along the high-speed rail network,
authorize the authority to contract with the department to perform
project design and engineering services, including construction
inspection services, as defined.
   Existing law authorizes the authority to, among other things,
enter into contracts for the design, construction, and operation of
high-speed trains upon approval by the voters of a specified
financial plan.
   This bill would provide that approval by the voters of the Safe,
Reliable High-Speed Passenger Train Bond Act constitutes approval of
a financial plan for purposes of that provision.
   This bill would declare that it is to take effect immediately as
an urgency statute.


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

  SECTION 1.  Section 185033 is added to the Public Utilities Code,
to read:
   185033.  The authority shall prepare, publish, and submit to the
Legislature, not later than September 1, 2008, a revised business
plan that identifies all of the following: the type of service it
anticipates it will develop, such as local, express, commuter,
regional, or interregional; a description of the primary benefits the
system will provide; a forecast of the anticipated patronage,
operating costs, and capital costs for the system; an estimate and
description of the total anticipated federal, state, local, and other
funds the authority intends to access to fund the construction and
operation of the system; and the proposed chronology for the
construction of the eligible corridors of the statewide high-speed
train system. The revised business plan shall also include a
discussion of all reasonably foreseeable risks the project may
encounter, including, but not limited to, risks associated with the
project's finances, patronage, construction, equipment, and
technology, and other risks associated with the project's
development. The plan shall describe the authority's strategies,
processes, or other actions it intends to utilize to manage those
risks.
  SEC. 2.  Section 185035 is added to the Public Utilities Code, to
read:
   185035.  (a) The authority shall establish an independent peer
review group for the purpose of reviewing the planning, engineering,
financing, and other elements of the authority's plans and issuing an
analysis of appropriateness and accuracy of the authority's
assumptions and an analysis of the viability of the authority's
financing plan, including the funding plan for each corridor required
pursuant to subdivision (b) of Section 2704.08 of the Streets and
Highways Code.
   (b) The peer review group shall include all of the following:
   (1) Two individuals with experience in the construction or
operation of high-speed trains in Europe, Asia, or both, designated
by the Treasurer.
   (2) Two individuals, one with experience in engineering and
construction of high-speed trains and one with experience in project
finance, designated by the Controller.
   (3) One representative from a financial services or financial
consulting firm who shall not have been a contractor or subcontractor
of the authority for the previous three years, designated by the
Director of Finance.
   (4) One representative with experience in environmental planning,
designated by the Secretary of Business, Transportation and Housing.
   (5) Two expert representatives from agencies providing intercity
or commuter passenger train services in California, designated by the
Secretary of Business, Transportation and Housing.
   (c) The peer review group shall evaluate the authority's funding
plans and prepare its independent judgment as to the feasibility and
reasonableness of the plans, appropriateness of assumptions,
analyses, and estimates, and any other observations or evaluations it
deems necessary.
   (d) The authority shall provide the peer review group any and all
information that the peer review group may request to carry out its
responsibilities.
   (e) The peer review group shall report its findings and
conclusions to the Legislature no later than 60 days after receiving
the plans.
  SEC. 3.  Section 185037 is added to the Public Utilities Code, to
read:
   185037.  (a) Notwithstanding any other provision of law, for any
project along the high-speed rail network, the authority may contract
with the department to perform project design and engineering
services, including construction inspection services.
   (b) For purposes of this section, "project design and engineering
services, including construction inspection services" means
preliminary engineering, planning, prebid services, right-of-way
acquisition, preparation of environmental documents, preparation of
plans, specifications, and estimates, construction inspection
including surveying and materials testing, quality control inspection
including highway and utility relocation, and grade separations.
  SEC. 4.  Section 1 of Chapter 697 of the Statutes of 2002, as
amended by Section 1 of Chapter 71 of the Statutes of 2004, is
repealed.
  SEC. 5.  Section 2 of Chapter 697 of the Statutes of 2002, as
amended by Sections 1 and 2 of Chapter 44 of the Statutes of 2006, is
repealed.
  SEC. 6.  Section 3 of Chapter 697 of the Statutes of 2002, as
amended by Section 3 of Chapter 44 of the Statutes of 2006, is
repealed.
  SEC. 7.  Section 4 of Chapter 697 of the Statutes of 2002, as
amended by Section 4 of Chapter 44 of the Statutes of 2006, is
repealed.
  SEC. 8.  (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 San Francisco Bay
Area, the Central 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. 9.  Chapter 20 (commencing with Section 2704) is added to
Division 3 of the Streets and Highways Code, to read:
      CHAPTER 20.  SAFE, RELIABLE HIGH-SPEED PASSENGER TRAIN BOND ACT
FOR THE 21ST CENTURY



      Article 1.  General Provisions


   2704.  This chapter shall be known and may be cited as the Safe,
Reliable High-Speed Passenger Train Bond Act for the 21st Century.
   2704.01.  As used in this chapter, the following terms have the
following meanings:
   (a) "Committee" means the High-Speed Passenger Train Finance
Committee created pursuant to Section 2704.12.
   (b) "Authority" means the High-Speed Rail Authority created
pursuant to Section 185020 of the Public Utilities Code, or its
successor.
   (c) "Fund" means the High-Speed Passenger Train Bond Fund created
pursuant to Section 2704.05.
   (d) "High-speed train" means a passenger train capable of
sustained revenue operating speeds of at least 200 miles per hour
where conditions permit those speeds.
   (e) "High-speed train system" means a system with high-speed
trains and includes, but is not limited to, the following components:
right-of-way, track, power system, rolling stock, stations, and
associated facilities.
   (f) "Corridor" means a portion of the high-speed train system as
described in Section 2704.04.
   (g) "Usable segment" means a portion of a corridor that includes
at least two stations.

      Article 2.  High-Speed Passenger Train Financing Program


   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 that connects the San Francisco Transbay
Terminal to Los Angeles Union Station and Anaheim, and links the
state's major population centers, including Sacramento, the San
Francisco Bay Area, the Central Valley, Los Angeles, the Inland
Empire, Orange County, and San Diego consistent with the authority's
certified environmental impact reports of November 2005 and July 9,
2008.
   (b) (1) Net proceeds received from the sale of nine billion
dollars ($9,000,000,000) principal amount of bonds authorized
pursuant to this chapter, upon appropriation by the Legislature in
the annual Budget Act, shall be used for (A) planning and engineering
for the high-speed train system and (B) capital costs, as described
in subdivision (c).
   (2) As adopted by the authority in May 2007, Phase 1 of the
high-speed train project is the corridor of the high-speed train
system between San Francisco Transbay Terminal and Los Angeles Union
Station and Anaheim.
   (3) Upon a finding by the authority that expenditure of bond
proceeds for capital costs in corridors other than the corridor
described in paragraph (2) would advance the construction of the
system, would be consistent with the criteria described in
subdivision (f) of Section 2704.08, and would not have an adverse
impact on the construction of Phase 1 of the high-speed train
project, the authority may request funding for capital costs, and the
Legislature may appropriate funds described in paragraph (1) in the
annual Budget Act, to be expended for any of the following high-speed
train 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) Merced to Stockton to Oakland and San Francisco via the
Altamont Corridor.
   (4) Nothing in this section shall prejudice the authority's
determination and selection of the alignment from the Central Valley
to the San Francisco Bay Area and its certification of the
environmental impact report.
   (5) Revenues of the authority, generated by operations of the
high-speed train system above and beyond operating and maintenance
costs and financing obligations, including, but not limited to,
support of revenue bonds, as determined by the authority, shall be
used for construction, expansion, improvement, replacement, and
rehabilitation of the high-speed train system.
   (c) Capital costs payable or reimbursable from proceeds of bonds
described in paragraph (1) of subdivision (b) include, with respect
to the high-speed train system or any portion thereof, all activities
necessary for acquisition of interests in real property and
rights-of-way and improvement thereof; acquisition and construction
of tracks, structures, power systems, and stations; acquisition of
rolling stock and related equipment; mitigation of any direct or
indirect environmental impacts of activities authorized by this
chapter; relocation assistance for displaced property owners and
occupants; other related capital facilities and equipment; and such
other purposes related to the foregoing, for the procurement thereof,
and for the financing or refinancing thereof, as may be set forth in
a statute hereafter enacted. The method of acquisition of any of the
foregoing may also be set forth in a statute hereafter enacted.
   (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.
   2704.05.  Subject to Section 2704.18, the proceeds of bonds issued
and sold pursuant to this chapter shall be deposited in the
High-Speed Passenger Train Bond Fund, which is hereby created.
   2704.06.  The net proceeds received from the sale of nine billion
dollars ($9,000,000,000) principal amount of bonds authorized
pursuant to this chapter, upon appropriation by the Legislature in
the annual Budget Act, shall be available, and subject to those
conditions and criteria that the Legislature may provide by statute,
for (a) planning the high-speed train system and (b) capital costs
set forth in subdivision (c) of Section 2704.04, consistent with the
authority's certified environmental impact reports of November 2005
and July 9, 2008, as subsequently modified pursuant to environmental
studies conducted by the authority.
   2704.07.  The authority shall pursue and obtain other private and
public funds, including, but not limited to, federal funds, funds
from revenue bonds, and local funds, to augment the proceeds of this
chapter.
   2704.08.  (a) Proceeds of bonds described in paragraph (1) of
subdivision (b) of Section 2704.04 shall not be used for more than 50
percent of the total cost of construction of each corridor or usable
segment thereof of the high-speed train system, except for bond
proceeds used for the purposes of subdivision (g).
   (b) Not more than 10 percent of the proceeds of bonds described in
paragraph (1) of subdivision (b) of Section 2704.04 shall be used
for environmental studies, planning, and preliminary engineering
activities.
   (c) (1)  No later than 90 days prior to the submittal to the
Legislature and the Governor of the initial request for appropriation
of proceeds of bonds authorized by this chapter for any eligible
capital costs on each corridor, or usable segment thereof, identified
in subdivision (b) of Section 2704.04, other than costs described in
subdivision (g), the authority shall have approved and submitted to
the Director of Finance, the peer review group established pursuant
to Section 185035 of the Public Utilities Code, and the policy
committees with jurisdiction over transportation matters and the
fiscal committees in both houses of the Legislature, a detailed
funding plan for that corridor or a usable segment thereof.
   (2) The plan shall include, identify, or certify to all of the
following:
   (A) The corridor, or usable segment thereof, in which the
authority is proposing to invest bond proceeds.
   (B) A description of the expected terms and conditions associated
with any lease agreement or franchise agreement proposed to be
entered into by the authority and any other party for the
construction or operation of passenger train service along the
corridor or usable segment thereof.
   (C) The estimated full cost of constructing the corridor or usable
segment thereof, including an estimate of cost escalation during
construction and appropriate reserves for contingencies.
   (D) The sources of all funds to be invested in the corridor, or
usable segment thereof, and the anticipated time of receipt of those
funds based on expected commitments, authorizations, agreements,
allocations, or other means.
   (E) The projected ridership and operating revenue estimate based
on projected high-speed passenger train operations on the corridor or
usable segment.
   (F) All known or foreseeable risks associated with the
construction and operation of high-speed passenger train service
along the corridor or usable segment thereof and the process and
actions the authority will undertake to manage those risks.
   (G) Construction of the corridor or usable segment thereof can be
completed as proposed in the plan.
   (H) The corridor or usable segment thereof would be suitable and
ready for high-speed train operation.
   (I) One or more passenger service providers can begin using the
tracks or stations for passenger train service.
   (J) The planned passenger service by the authority in the corridor
or usable segment thereof will not require a local, state, or
federal operating subsidy.
   (K) The authority has completed all necessary project level
environmental clearances necessary to proceed to construction.
   (d) Prior to committing any proceeds of bonds described in
paragraph (1) of subdivision (b) of Section 2704.04 for expenditure
for construction and real property and equipment acquisition on each
corridor, or usable segment thereof, other than for costs described
in subdivision (g), the authority shall have approved and
concurrently submitted to the Director of Finance and the Chairperson
of the Joint Legislative Budget Committee the following: (1) a
detailed funding plan for that corridor or usable segment thereof
that (A) identifies the corridor or usable segment thereof, and the
estimated full cost of constructing the corridor or usable segment
thereof, (B) identifies the sources of all funds to be used and
anticipates time of receipt thereof based on offered commitments by
private parties, and authorizations, allocations, or other assurances
received from governmental agencies, (C) includes a projected
ridership and operating revenue report, (D) includes a construction
cost projection including estimates of cost escalation during
construction and appropriate reserves for contingencies, (E) includes
a report describing any material changes from the plan submitted
pursuant to subdivision (c) for this corridor or usable segment
thereof, and (F) describes the terms and conditions associated with
any agreement proposed to be entered into by the authority and any
other party for the construction or operation of passenger train
service along the corridor or usable segment thereof; and (2) a
report or reports, prepared by one or more financial services firms,
financial consulting firms, or other consultants, independent of any
parties, other than the authority, involved in funding or
constructing the high-speed train system, indicating that (A)
construction of the corridor or usable segment thereof can be
completed as proposed in the plan submitted pursuant to paragraph
(1), (B) if so completed, the corridor or usable segment thereof
would be suitable and ready for high-speed train operation, (C) upon
completion, one or more passenger service providers can begin using
the tracks or stations for passenger train service, (D) the planned
passenger train service to be provided by the authority, or pursuant
to its authority, will not require operating subsidy, and (E) an
assessment of risk and the risk mitigation strategies proposed to be
employed. The Director of Finance shall review the plan within 60
days of its submission by the authority and, after receiving any
communication from the Joint Legislative Budget Committee, if the
director finds that the plan is likely to be successfully implemented
as proposed, the authority may enter into commitments to expend bond
funds that are subject to this subdivision and accept offered
commitments from private parties.
   (e) Subsequent to approval of the detailed funding plan required
under subdivision (d), the authority shall promptly inform the
Governor and the Legislature of any material changes in plans or
project conditions that would jeopardize completion of the corridor
as previously planned and shall identify means of remedying the
conditions to allow completion and operation of the corridor.
   (f) In selecting corridors or usable segments thereof for
construction, the authority shall give priority to those corridors or
usable segments thereof that are expected to require the least
amount of bond funds as a percentage of total cost of construction.
Among other criteria it may use for establishing priorities for
initiating construction on corridors or usable segments thereof, the
authority shall include the following: (1) projected ridership and
revenue, (2) the need to test and certify trains operating at speeds
of 220 miles per hour, (3) the utility of those corridors or usable
segments thereof for passenger train services other than the
high-speed train service that will not result in any unreimbursed
operating or maintenance cost to the authority, and (4) the extent to
which the corridors include facilities contained therein to enhance
the connectivity of the high-speed train network to other modes of
transit, including, but not limited to, conventional rail (intercity
rail, commuter rail, light rail, or other rail transit), bus, or air
transit.
   (g) Nothing in this section shall limit use or expenditure of
proceeds of bonds described in paragraph (1) of subdivision (b) of
Section 2704.04 up to an amount equal to 7.5 percent of the aggregate
principal amount of bonds described in that paragraph for
environmental studies, planning, and preliminary engineering
activities, and for (1) acquisition of interests in real property and
right-of-way and improvement thereof (A) for preservation for
high-speed rail uses, (B) to add to third-party improvements to make
them compatible with high-speed rail uses, or (C) to avoid or to
mitigate incompatible improvements or uses; (2) mitigation of any
direct or indirect environmental impacts resulting from the
foregoing; and (3) relocation assistance for property owners and
occupants who are displaced as a result of the foregoing.
   (h) Not more than 2.5 percent of the proceeds of bonds described
in paragraph (1) of subdivision (b) of Section 2704.04 shall be used
for administrative purposes. The amount of bond proceeds available
for administrative purposes shall be appropriated in the annual
Budget Act. The Legislature may, by statute, adjust the percentage
set forth in this subdivision, except that the Legislature shall not
increase that percentage to more than 5 percent.
   (i) No failure to comply with this section shall affect the
validity of the bonds issued under this chapter.
   2704.09.  The high-speed train system to be constructed pursuant
to this chapter shall be designed to achieve 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, 40
minutes.
   (2) Oakland-Los Angeles Union Station: two hours, 40 minutes.
   (3) San Francisco-San Jose: 30 minutes.
   (4) San Jose-Los Angeles: two hours, 10 minutes.
   (5) San Diego-Los Angeles: one hour, 20 minutes.
   (6) Inland Empire-Los Angeles: 30 minutes.
   (7) Sacramento-Los Angeles: two hours, 20 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 feasible 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.
   2704.095.  (a) (1) Net proceeds received from the sale of nine
hundred fifty million dollars ($950,000,000) principal amount of
bonds authorized by this chapter 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 upon appropriation as set forth in this section 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 subparagraphs
(A), (B), and (C) of paragraph (3) of subdivision (a) means the
combined total in the state 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 to pay
or reimburse the costs of projects to provide or improve 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.

      Article 3.  Fiscal Provisions


   2704.10.  (a) Bonds in the total amount of nine billion nine
hundred fifty million dollars ($9,950,000,000), exclusive of
refunding bonds issued in accordance with Section 2704.19, or so much
thereof as is necessary, may be issued and sold to provide a fund to
be used for carrying out the purposes expressed in this chapter and
to be used to reimburse the General Obligation Bond Expense Revolving
Fund pursuant to Section 16724.5 of the Government Code. The bonds,
when sold, shall be and constitute a valid and binding obligation of
the State of California, and the full faith and credit of the State
of California is hereby pledged for the punctual payment of both
principal of, and interest on, the bonds as the principal and
interest become due and payable.
   (b) The Treasurer shall sell the bonds authorized by the committee
pursuant to this section. The bonds shall be sold upon the terms and
conditions specified in a resolution to be adopted by the committee
pursuant to Section 16731 of the Government Code.
   2704.11.  (a) Except as provided in subdivision (b), the bonds
authorized by this chapter shall be prepared, executed, issued, sold,
paid, and redeemed as provided in the State General Obligation Bond
Law, Chapter 4 (commencing with Section 16720) of Part 3 of Division
4 of Title 2 of the Government Code, and all of the provisions of
that law apply to the bonds and to this chapter and are hereby
incorporated in this chapter as though set forth in full in this
chapter.
   (b) Notwithstanding any provision of the State General Obligation
Bond Law, each issue of bonds authorized by the committee shall have
a final maturity of not more than 40 years from the date of original
issuance thereof.
   2704.12.  (a) Solely for the purpose of authorizing the issuance
and sale of the bonds authorized by this chapter and the making of
those determinations and the taking of other actions as are
authorized by this chapter, pursuant to the State General Obligation
Bond Law, the High-Speed Passenger Train Finance Committee is hereby
created. For purposes of this chapter, the High-Speed Passenger Train
Finance Committee is "the committee" as that term is used in the
State General Obligation Bond Law. The committee consists of the
Treasurer, the Director of Finance, the Controller, the Secretary of
Business, Transportation and Housing, and the chairperson of the
authority. Notwithstanding any other provision of law, any member of
the committee may designate a representative to act as that member in
his or her place and stead for all purposes, as though the member
were personally present. The Treasurer shall serve as chairperson of
the committee. A majority of the committee shall constitute a quorum
of the committee, and may act for the committee.
   (b) For purposes of the State General Obligation Bond Law, the
authority is designated the "board."
   2704.13.  The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
chapter in order to carry out the actions specified in Sections
2704.06 and 2704.095 and, if so, the amount of bonds to be issued and
sold. Successive issues of bonds may be issued and sold to carry out
those actions progressively, and it is not necessary that all of the
bonds authorized be issued and sold at any one time. The committee
shall consider program funding needs, revenue projections, financial
market conditions, and other necessary factors in determining the
term for the bonds to be issued. In addition to all other powers
specifically granted in this chapter and the State General Obligation
Bond Law, the committee may do all things necessary or convenient to
carry out the powers and purposes of this article, including the
approval of any indenture relating to the bonds, and the delegation
of necessary duties to the chairperson and to the Treasurer as agent
for the sale of the bonds. Any terms of any bonds issued under this
chapter may be provided under an indenture instead of under a
resolution, as determined by the committee.
   2704.14.  There shall be collected each year and in the same
manner and at the same time as other state revenue is collected, in
addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year. It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act which is necessary to collect that additional sum.
   2704.15.  Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this chapter, an amount equal to the
total of the following: (a) that sum annually necessary to pay the
principal of, and interest on, bonds issued and sold pursuant to this
chapter, as the principal and interest become due and payable, and
(b) the sum necessary to carry out Section 2704.17, appropriated
without regard to fiscal years.
   2704.16.  The board may request the Pooled Money Investment Board
to make a loan from the Pooled Money Investment Account, in
accordance with Section 16312 of the Government Code, for purposes of
this chapter. The amount of the request shall not exceed the amount
of the unsold bonds which the committee has, by resolution,
authorized to be sold for the purpose of this chapter, less any
amount borrowed pursuant to Section 2701.17. The board shall execute
such documents as required by the Pooled Money Investment Board to
obtain and repay the loan. Any amount loaned shall be deposited in
the fund to be allocated by the board in accordance with this
chapter.
   2704.17.  For the purpose of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount or amounts not to exceed the amount of unsold bonds
which have been authorized by the committee to be sold for the
purpose of carrying out this chapter, less any amount borrowed
pursuant to Section 2704.16. Any amount withdrawn shall be deposited
in the fund. Any money made available under this section shall be
returned to the General Fund, plus the interest that the amounts
would have earned in the Pooled Money Investment Account, from the
sale of bonds for the purpose of carrying out this chapter.
   2704.18.  All money deposited in the fund which is derived from
premium on bonds sold shall be available to pay costs of issuing the
bonds, and to the extent not so needed, together with accrued
interest derived from sale of the bonds, shall be available for
transfer to the General Fund as a credit to expenditures for bond
interest.
   2704.19.  The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of the State General Obligation Bond
Law. Approval by the electors of the state for the issuance of bonds
shall include approval of the issuance of any bonds issued to refund
any bonds originally issued or any previously issued refunding bonds.

   2704.20.  The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this chapter
are not "proceeds of taxes" as that term is used in Article XIII B of
the California Constitution, the disbursement of these proceeds is
not subject to the limitations imposed by that article.
   2704.21.  Notwithstanding any provision of this chapter or the
State General Obligation Bond Law, if the Treasurer sells bonds
pursuant to this chapter that include a bond counsel opinion to the
effect that the interest on the bonds is excluded from gross income
for federal tax purposes under designated conditions, the Treasurer
may maintain separate accounts for the bond proceeds invested and the
investment earnings on those proceeds, and may use or direct the use
of those proceeds or earnings to pay any rebate, penalty, or other
payment required under federal law, or take any other action with
respect to the investment and use of those bond proceeds, as may be
required or desirable under federal law in order to maintain the
tax-exempt status of those bonds and to obtain any other advantage
under federal law on behalf of the funds of this state.
  SEC. 10.  Section 9 of this act 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 9 of this act.
  SEC. 11.  (a) Section 9 of this act shall be submitted by the
Secretary of State to the voters at the November 4, 2008, general
election, notwithstanding the requirements of Sections 9040, 9043,
9044, and 9061 of the Elections Code or any other provision of law.
   (b) Notwithstanding Sections 13115 and 13117 of the Elections
Code, the bond measure described in subdivision (a) shall be placed
as the first ballot measure on the November 4, 2008, general election
ballot and shall be designated as Proposition 1A.
   (c) Notwithstanding any other provision of law, all ballots of the
November 4, 2008, general election shall have printed thereon as the
ballot label for Proposition 1A the following:


   "SAFE, RELIABLE HIGH-SPEED PASSENGER TRAIN BOND ACT. To provide
Californians a safe, convenient, affordable, and reliable alternative
to driving and high gas prices; to provide good-paying jobs and
improve California's economy while reducing air pollution, global
warming greenhouse gases, and our dependence on foreign oil, shall
$9.95 billion in bonds be issued to establish a clean, efficient
high-speed train service linking Southern California, the
Sacramento/San Joaquin Valley, and the San Francisco Bay Area, with
at least 90 percent of bond funds spent for specific projects, with
federal and private matching funds required, and all bond funds
subject to independent audits?"


   At the appropriate location on the ballot, in the manner
prescribed by law, there shall be provided the opportunity for voters
to indicate whether they vote for or against the measure.
   (d) Notwithstanding Sections 13247 and 13281 of the Elections
Code, the language in subdivision (c) 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
shall 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 summary and the financial impact summary.
   (e) 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.
   (f) (1) Notwithstanding any other provision of law, the Secretary
of State shall use the following as the ballot title and summary for
Proposition 1A:


   "SAFE, RELIABLE HIGH-SPEED PASSENGER TRAIN BOND ACT.
   Provides long-distance commuters with a safe, convenient,
affordable, and reliable alternative to driving and high gas prices.
   Reduces traffic congestion on the state's highways and at the
state's airports.
   Reduces California's dependence on foreign oil.
   Reduces air pollution and global warming greenhouse gases.
   Establishes a clean, efficient 220 MPH transportation system.
   Improves existing passenger rail lines serving the state's major
population centers.
   Provides for California's growing population.
   Provides for a bond issue of $9.95 billion to establish high-speed
train service linking Southern California counties, the
Sacramento/San Joaquin Valley, and the San Francisco Bay Area.
   Provides that at least 90% of these bond funds shall be spent for
specific construction projects, with federal and private sector
matching funds required.
   Requires that use of all bond funds is subject to independent
audits.
   Appropriates money from the General Fund to pay bond principal and
interest."


   (2) Notwithstanding any other provision of law, the language in
paragraph (1) shall be the only language included in the ballot title
and summary, and the Attorney General shall not supplement, subtract
from, or otherwise revise that language, except that the Attorney
General shall include the financial impact summary prepared pursuant
to Section 9087 of the Elections Code and Section 88003 of the
Government Code.
   (g) The Secretary of State shall include, in the ballot pamphlets
mailed pursuant to Section 9094 of the Elections Code, the
information specified in Section 9084 of the Elections Code regarding
the bond act described in subdivision (a). If that inclusion is not
possible, the Secretary of State shall publish a supplemental ballot
pamphlet regarding the bond act described in subdivision (a), to be
mailed with the ballot pamphlet. If the supplemental ballot pamphlet
cannot be mailed with the ballot pamphlet, the supplemental ballot
pamphlet shall be mailed separately.
   (h) Notwithstanding Section 9054 of the Elections Code or any
other provision of law, the translations of the ballot title and the
condensed statement of the ballot title required pursuant to Section
9054 may be made available for public examination at a later date
than the start of the public examination period for the ballot
pamphlet, provided that the translations of the ballot title and the
condensed statement of the ballot title must remain available for
public examination for eight days.
   (i) Notwithstanding Section 13282 of the Elections Code or any
other provision of law, the public shall be permitted to examine the
condensed statement of the ballot title for not more than eight days.
Any voter may seek a writ of mandate for the purpose of requiring
any statement of the ballot title, or portion thereof, to be amended
or deleted only within that eight-day period.
  SEC. 12.  Notwithstanding any other provision of law, the bond act
proposed by 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 and
Sections 1 and 2 of Chapter 44 of the Statutes of 2006, shall not be
placed by the Secretary of State on the November 4, 2008, general
election ballot, or, if already on the ballot, shall be removed
therefrom.
  SEC. 13.  Approval by the voters of the Safe, Reliable High-Speed
Passenger Train Bond Act shall constitute approval of a financial
plan for purposes of Section 185036 of the Public Utilities Code.
  SEC. 14.  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 replace 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 with
a new measure for similar purposes, it is necessary that this act
take effect immediately.