BILL ANALYSIS AB 153 Page 1 Date of Hearing: April 29, 2009 ASSEMBLY COMMITTEE ON APPROPRIATIONS Kevin De Leon, Chair AB 153 (Ma) - As Amended: January 23, 2009 Policy Committee: TransportationVote:9-0 Judiciary 7-2 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill clarifies the powers and duties of the High-Speed Rail Authority and authorizes the authority to employ its own legal counsel. Specifically, this bill: 1)Authorizes the authority to employ its own legal staff and/or to contract with other state agencies for legal services. 2)Includes the authority as one of several state agencies exempt from provisions requiring property to be acquired for the state to be acquired by the State Public Works Board. 3)Clarifies that the authority is among those state agencies able to exercise eminent domain authority for property acquisition. 4)Extends the authority's ability to enter into contracts to include contracts for the financing and maintenance of high-speed trains. FISCAL EFFECT Probably no net state costs, as the authority's legal costs will either be attributed to in-house attorneys or through legal services provided by the Department of Justice (DOJ). The authority is currently using DOJ attorney services at the AB 153 Page 2 equivalent of more than one full-time position. The authority does not expect to seek an in-house attorney position in the short-term, however. COMMENTS 1)Purpose . According to the HSRA (sponsor), with voter approval of Proposition 1A in November 2008, which authorized the issuance of $10 billion in general obligation bonds for high-speed rail, the authority will now begin transitioning into a more traditional state agency. The HSRA anticipates a greater need for legal counsel when, for example, it decides to exercise its eminent domain power to acquire rights-of-way for train tracks, maintenance facilities, storage yards, and related structures. These ongoing activities will only grow in size and complexity, thus necessitating the availability of legal services on a more regular basis. In addition, current law specifically grants the power authority to acquire rights-of-way through purchase or eminent domain. This bill clarifies that the authority, similar to other specified agencies, may independently exercise its eminent domain powers rather than having to rely on the Public Works Board to do so. The bill does not alter any statutory requirements related to the exercise of eminent domain by the state. 2)Related Legislation . AB 1375 (Galgiani), pending in Assembly Transportation, reestablishes the HSRA as strictly a policy-making body and establishes a new Department of High-Speed Trains, to be responsible for implementing decisions of the authority. 3)Prior Legislation . The provisions of this bill regarding legal staff were included in AB 981 (Ma) of 2007, but that bill was subsequently amended in the Senate to address an unrelated subject. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081