BILL ANALYSIS AB 153 Page 1 ASSEMBLY THIRD READING AB 153 (Ma) As Introduced January 23, 2009 Majority vote TRANSPORTATION 9-0 JUDICIARY 7-2 ----------------------------------------------------------------- |Ayes:|Eng, Blumenfield, |Ayes:|Feuer, Brownley, Evans, | | |Buchanan, Furutani, | |Jones, Krekorian, Lieu, | | |Galgiani, | |Monning | | |Bonnie Lowenthal, John A. | | | | |Perez, Solorio, Torlakson | | | | | | | | |-----+--------------------------+-----+--------------------------| | | |Nays:|Knight, Nielsen | | | | | | ----------------------------------------------------------------- APPROPRIATIONS 11-5 ----------------------------------------------------------------- |Ayes:|De Leon, Ammiano, | | | | |Charles Calderon, | | | | |Krekorian, Fuentes, | | | | |Monning, John A. Perez, | | | | |Price, Skinner, Solorio, | | | | |Torlakson | | | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Nielsen, Duvall, Harkey, | | | | |Miller, | | | | |Audra Strickland | | | | | | | | ----------------------------------------------------------------- SUMMARY : Makes various technical changes that clarify and update the governance of the California High-Speed Rail Authority (Authority). Specifically, this bill : 1)Deletes obsolete language and updates the authorization of the Authority relative to the legislative appropriation of funds required to prepare plans for the high-speed train system. 2)Removes obsolete language and clarifies that the Authority can enter into contracts to implement the project, something that AB 153 Page 2 they already are doing. 3)Adds a technical, clarifying cross reference to provisions dealing with eminent domain, stating that in the case of any eminent domain proceedings for the (future) acquisition of right-of-way for the high-speed train system, the reference to "governing body" of the Authority means the Board of the Authority. 4)Adds language permitting the Authority to employ legal counsel on its staff or contract with other state agencies for legal services. (The same provision exists for the California Transportation Commission (CTC) in Government Code Section 14513). 5)Updates and clarifies the types of contracts the Authority may enter into with public agencies and private entities to implement the high-speed train project. EXISTING LAW : 1)Enacts the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century (High-Speed Rail Bond Act). The High-Speed Rail Bond Act, approved as Proposition 1A in November 2008, provides $9.95 billion in general obligation bond authority to fund the planning and construction of a high-speed passenger train system and complementary improvements to other specified rail systems in the state. Up to 10 % of the bond money ($900 million) may be used for environmental review and preliminary engineering and design, while 2.5 % of the funds ($225 million) may be used for administrative costs. 2)Establishes the Authority and charges it with the planning, designing, constructing, operating, and maintaining a state-of-the-art high-speed train system for California. The Authority consists of a nine-member board (five appointed by the Governor, two appointed by the Senate Rules Committee, and two by the Speaker of the Assembly). 3)Authorizes, through enactment of the American Recovery and Reinvestment Act of 2009 (the recently enacted federal economic stimulus package), $8 billion for high-speed rail passenger services throughout the nation. Also, the federal AB 153 Page 3 stimulus package provides additional intercity and commuter rail passenger discretionary funding that potentially could benefit the state. 4)Authorizes, through the passage of Proposition 1B in November 2006, $100 million for high priority highway-railroad at-grade separation projects to be selected by the CTC in consultation with the Authority. 5)Requires the Authority to prepare and publish a revised business plan by September 1, 2008. 6)Prohibits a state agency from employing legal counsel other than the Attorney General unless there is specific statute authorizing such employment. FISCAL EFFECT : According to the Assembly Appropriations Committee, probably no net state costs. COMMENTS : This bill is similar to AB 981 (Ma) of 2007, as passed by the Assembly. While in the Senate, AB 981 was amended to delete the provisions related to the Authority. The proposed statewide high-speed rail passenger train system stretches from San Francisco, Oakland and Sacramento in the north -- with service to the Central Valley -- to Los Angeles and San Diego in the south. With bullet trains operating at speeds up to 200 mph, proponents indicate that the express travel time from downtown San Francisco to Los Angeles will be about 2 hours. Upon completion, intercity travelers (trips between metropolitan regions) along with longer-distance commuters would enjoy the benefits of a system designed to connect with existing rail, air, and highway systems. According to the sponsor of this bill, the Authority, "The Authority was established by the Legislature pursuant to SB 1420 (Kopp), Chapter 796, Statutes of 1996, as the successor agency to the California Intercity High-Speed Rail Commission. The Authority is statutorily-mandated to "direct the development and implementation of intercity high-speed rail service that is fully coordinated with other public transportation services and prepare a plan for the construction and operation of a high-speed train network for the state?" AB 153 Page 4 The Authority prepared and released in 2005, an Implementation Plan to serve as a blueprint for building the high-speed train system in California. In November 2005, the Authority certified the completed statewide program-level environmental impact report/environmental impact statement (EIR/EIS) and the Federal Railroad Administration (FRA) issued a Record of Decision, paving the way for implementation of the project. In November 2009, the Authority released an update to their Final Business Plan and began the environmental process in cooperation with the FRA. The 2006-07 Budget Act provided $14.3 million to the Authority to begin implementation of the high-speed train, including the completion of a financial plan, the commencement of site-specific environmental work, right-of-way acquisition, identification of necessary grade separations, completion of the draft EIR/EIS for the Northern Mountain Crossing into the San Francisco Bay Area, visual simulations and public education, beginning of detailed project design and project management. For the current year, according to the Legislative Analysts Office, the Authority will spend about $45 million on consulting services. For the next fiscal year, the Authority will be expending about $123 million. This bill makes a number of technical and clarifying changes to the statutes governing the powers and duties of the Authority. It authorizes the Authority to employ its own legal staff, or to contract with other state agencies for legal services, in lieu of using the Attorney General's Office for representation in legal proceedings. Further, the bill makes a technical cross reference in provisions related to the acquisition of right-of-way as well as clarifies the Authority's conferred powers for its use of eminent domain. Lastly, this bill updates several provisions pertaining to the Authority's contractual authority with private entities. Many of these changes are consistent with the provisions of Proposition 1A, the High-Speed Rail Bond Act, as passed by the statewide voters in November, 2008, and also facilitate the planning and designing of the individual high-speed rail segments. Currently, there are other bills being considered by the Legislature as identified below. At some point, this bill will need to be reconciled with them. AB 153 Page 5 Related bills this year: AB 1375 (Galgiani) would create the Department of High-Speed Trains within the Business, Transportation and Housing Agency (BT&HA). That department would be conferred eminent domain and legal counsel authority as contemplated by this bill. That bill is currently in the Assembly Appropriations Committee. SB 409 (Ducheny) would create the Department of Railroads in the BT&HA. Among other provisions of that bill, it would provide that the department would be the only state agency eligible to apply for and receive grant and loan funds from the federal government for intercity rail, high-speed rail, or freight rail purposes. That bill is in the Senate Transportation and Housing Committee. Further, SB 409 was introduced in advance of the California Research Bureau rail consolidation study as required by SB 53 (Ducheny), Chapter 612, Statutes of 2008, due May 1, 2009. SB 455 (Lowenthal) among its other provisions, would clarify the Authority's right-of-way acquisition powers. That bill is currently in the Senate Appropriations Committee. Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093 FN: 0000472