BILL ANALYSIS
AB 3034
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Date of Hearing: May 7, 2008
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mark Leno, Chair
AB 3034 (Galgiani) - As Amended: April 21, 2008
Policy Committee: Transportation
Vote: 10-0
Urgency: Yes State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill modifies the Safe, Reliable High-Speed Passenger Train
Bond Act, as originally enacted by SB 1856 (Costa) - Chapter
697, Statutes of 2002, to reflect activities and project design
changes that occurred over the past six years, and to better
present the bond authorization measure to voters at the November
4, 2008 statewide election.
FISCAL EFFECT
Potentially substantial reallocation, if voters approve the
High-Speed Rail Bond on the November 2008 statewide ballot, of
general obligation bond proceeds due to the changes made to the
allocation and spending process outlined in 2002 by SB 1856.
The total $9.95 billion bond authorization amount remains
unchanged.
SUMMARY CONTINUED
Specifically, this bill:
1)Eliminates language specifying that, after the initial
investment from the state to construct the initial segment,
operating revenues and funds from the federal government and
the private sector will be used to pay for expansion of the
system.
2)Replaces language that requires the $9 billion of bond
proceeds earmarked for high-speed rail to first be spent on
the segment between San Francisco Transbay Terminal and Los
Angeles Union Station, with language that requires bond
AB 3034
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proceeds to be spent generally on all high-speed rail segments
and the Altamont Corridor between the Central Valley and the
East Bay. This bill requires the High Speed Rail Authority
(HSRA) to give priority to those system segments that require
the least amount of bond funding as a percentage of total
cost, to consider the utility of that segment for other
passenger rail services, and to ensure that other services
will not result in any operating or maintenance cost to the
authority.
3)References the 2005 High Speed Rail Environmental Impact
Report instead of the High Speed Rail Final Business Plan of
2000.
4)Allows up to 10% of bond proceeds earmarked for the high-speed
rail system (a maximum $900 million) to be used for
environmental studies, planning and engineering activities.
5)Specifies that the $950 million in bond proceeds earmarked for
intercity and commuter rail lines and urban rail systems can
be allocated to systems that are part of the construction of
the high-speed rail system.
6)Prohibits the siting of a high-speed rail station between the
Merced station and the Gilroy station.
COMMENTS
1)Rationale . This bill, sponsored by the HSRA, makes
modifications to the original SB 1856 high speed rail bond
bill to reflect activities, progress, and changes in focus and
priorities that have occurred since the bill's enactment in
2002. The HSRA believes the changes made by AB 3034 will
better reflect the system proposed to be designed and
constructed, and give voters at the November 4, 2008 statewide
election a better picture of the whole high speed rail
project.
2)Legislative History . SB 1856 submitted the High-Speed Bond
Act for voter approval at the November 2, 2004 statewide
election. Primarily due to budgetary concerns and competition
with other bond authorization priorities, SB 1169 (Murray) -
Chapter 71, Statutes of 2004 delayed bond authorization to the
November 7, 2006 statewide election, and AB 713 (Torrico) -
Chapter 44, Statutes of 2006 delayed it again to November 4,
AB 3034
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2008.
3)Train Station Prohibition . While the HSRA has never planned
on siting a high-speed train station between the Merced
station and the Gilroy station, there was concern that somehow
a station would be located in Los Banos. This amendment
eliminates those concerns.
4)November 2008 Statewide Ballot . The Safe, Reliable High-Speed
Passenger Train Bond Act for the 21st Century is the only bond
act currently qualified to appear on the November 2008
statewide ballot. If all $9.95 billion worth of G.O. bonds
are issued and sold as 30-year bonds at an average interest
rate of 5%, the total principal and interest cost over this
period is $19.4 billion, or $647 million of debt service per
year for 30 years.
5)Urgency Measure . The deadline for a legislative measure to
qualify for the November 4, 2008 statewide ballot is June 26.
If the changes proposed by this bill to the original High
Speed Bond Act are to be reflected without incurring the
additional costs of preparing a supplemental ballot pamphlet,
AB 3034 would have to be enacted by the Legislature within the
next seven weeks.
Analysis Prepared by : Steve Archibald / APPR. / (916)
319-2081