BILL NUMBER: AB 289	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 27, 2010
	AMENDED IN SENATE  AUGUST 20, 2010
	AMENDED IN SENATE  AUGUST 17, 2010
	AMENDED IN SENATE  AUGUST 2, 2010
	AMENDED IN SENATE  JULY 15, 2010
	AMENDED IN SENATE  JUNE 22, 2010
	AMENDED IN SENATE  MAY 28, 2010
	AMENDED IN SENATE  APRIL 21, 2010
	AMENDED IN SENATE  JANUARY 25, 2010
	AMENDED IN SENATE  AUGUST 17, 2009
	AMENDED IN ASSEMBLY  APRIL 14, 2009

INTRODUCED BY   Assembly Member Galgiani
   (Principal coauthor: Senator DeSaulnier)
   (Coauthors: Assembly Members Adams, Arambula, Bass, Beall, Bill
Berryhill, Tom Berryhill, Bradford, Brownley, Buchanan, Charles
Calderon, Davis, Eng, Hayashi, Hill, Huffman, Jones, Lieu,
Portantino, Salas, Solorio, Torres, and Torrico)
   (Coauthor: Senator Florez)

                        FEBRUARY 13, 2009

   An act to amend Section 185024 of the Public Utilities Code, and
to add Chapter 20.1 (commencing with Section 2704.25) to Division 3
of the Streets and Highways Code, relating to high-speed rail
 , and declaring the urgency thereof, to take effect
immediately  .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 289, as amended, Galgiani. High-speed rail.
   Existing law, the California High-Speed Rail Act, creates the
High-Speed Rail Authority to develop and implement a high-speed rail
system in the state, with specified powers and duties. Existing law,
pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act
for the 21st Century, approved by the voters as Proposition 1A at the
November 4, 2008, general election, provides for the issuance of
$9.95 billion in general obligation bonds for high-speed rail and
related purposes. The federal Passenger Rail Investment and
Improvement Act of 2008 (PRIIA) and the federal American Recovery and
Reinvestment Act of 2009 (ARRA) provide funding for allocation
nationally to high-speed rail projects.
   This bill would require federal high-speed rail funds received on
a reimbursement basis from ARRA to be deposited in the federal trust
fund. The bill would require certain ARRA funds to be used for
planning and engineering, and for capital costs, for the high-speed
train system consistent with federal law and regulations and
specified provisions of SB 965 of the 2009-10 Regular Session. The
bill would identify the corridors eligible for federal PRIIA funds.
The above provisions would become operative only if SB 965 is also
enacted and becomes operative.
   Existing law provides for appointment of an executive director by
the authority, who is exempt from civil service and serves at the
pleasure of the authority. Under existing law, the salary of the
executive director is established by the authority and approved by
the Department of Personnel Administration.
   This bill, for purposes of managing and administering the ongoing
work of the authority in implementing the high-speed rail project,
would authorize the Governor, upon recommendation of the executive
director and subject to an appropriation, to appoint up to 6
additional executive staff exempt from civil service who would serve
in specified positions at the pleasure of the executive director. The
bill would require the authority to cause a salary survey to be
conducted to determine the compensation for the executive director
and additional exempt staff, and would require the salaries to be
approved by the Department of Personnel Administration. The bill
would state the intent of the Legislature to approve additional
positions at the authority for purposes of creating an Office for
Project Controls and Risk Management in the authority. 
   This bill would declare that it is to take effect immediately as
an urgency statute. 
   Vote:  2/3   majority  . Appropriation:
no. Fiscal committee: yes. State-mandated local program: no.


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

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) With the enactment of the federal American Recovery and
Reinvestment Act (ARRA) (Public Law 111-5) on February 17, 2009, the
federal government made available a grant program in which states
could apply for up to $8 billion in federal funds for the development
of high-speed rail throughout the nation.
   (b) On October 2, 2009, the High-Speed Rail Authority (HSRA)
submitted to the Federal Railroad Administration (FRA) of the United
States Department of Transportation an application for $4.73 billion
in federal funds to further the development of high-speed rail in
California.
   (c) On January 28, 2010, the federal government awarded the HSRA
$2.25 billion to advance the development of a high-speed rail system
in this state.
   (d) The HSRA estimates that 90,000 jobs will be created or
maintained by the investment of these ARRA funds, along with matching
state bond funds, in the dozens of construction projects along the
eligible corridors throughout California.
   (e) It is necessary to provide the HSRA with unambiguous statutory
authority to receive and expend federal funds awarded to the HSRA
for the purposes described in its application of October 2, 2009, and
consistent with the award of those federal funds.
   (f) Moreover, it is in the state's interest to obligate and expend
awarded funds as expeditiously as possible and in a manner
consistent with the voters' expectations when they approved the Safe,
Reliable High-Speed Passenger Train Bond Act for the 21st Century
(Chapter 20 (commencing with Section 2704) of Division 3 of the
Streets and Highways Code) in November 2008, in order to expand job
creation and to complete vital infrastructure improvements as soon as
possible.
  SEC. 2.  Section 185024 of the Public Utilities Code is amended to
read:
   185024.  (a) The authority shall appoint an executive director,
exempt from civil service, who shall serve at the pleasure of the
authority, to administer the affairs of the authority as directed by
the authority.
    (b) It is the intent of the Legislature to approve additional
positions at the authority for purposes of creating an Office for
Project Controls and Risk Management, which shall report directly to
the executive director. For purposes of managing and administering
the ongoing work of the authority in implementing the high-speed
train project, upon recommendation of the executive director and
subject to an appropriation in the annual Budget Act, the Governor
may appoint up to six additional employees, exempt from civil
service, who shall serve at the pleasure of the executive director.
Pursuant to this subdivision, the Governor may appoint employees only
for the following positions:
   (1) Chief program manager.
    (2) Regional director.
   (3) Chief financial officer.
    (4) Director of risk management and project controls.
   (c) The compensation of the executive director and the additional
employees authorized by subdivision (b) shall be established by the
authority, and approved by the Department of Personnel
Administration, in an amount that is reasonably necessary, in the
discretion of the authority, to attract and hold a person of superior
qualifications. The authority shall cause to be conducted, through
the use of independent outside advisers, a salary survey to determine
the compensation for the positions under this subdivision. The
Department of Personnel Administration may, in its discretion, accept
a previously completed salary survey that meets the requirements of
this subdivision, and shall review the methodology used in the
survey. The salary survey shall consider both of the following:
   (1) Other state, regional, and local transportation agencies that
are most comparable to the authority and its responsibilities.
   (2) Other relevant labor pools.
   The compensation set by the authority shall not exceed the highest
comparable compensation for a position of that type, as determined
by the salary survey. Based on the salary survey, these positions
shall be paid a salary established by the authority and approved by
the Department of Personnel Administration.
   (d) The executive director may, as authorized by the authority,
appoint necessary staff to carry out the provisions of this part.
  SEC. 3.  Chapter 20.1 (commencing with Section 2704.25) is added to
Division 3 of the Streets and Highways Code, to read:
      CHAPTER 20.1.  HIGH-SPEED RAIL IMPLEMENTATION AND OVERSIGHT



      Article 1.  General Provisions


   2704.25.  As used in this chapter, the following terms have the
following meanings:
   (a) "ARRA" means the federal American Recovery and Reinvestment
Act of 2009 (Public Law 111-5).
   (b) "Authority" means the High-Speed Rail Authority created
pursuant to Section 185020 of the Public Utilities Code, or its
successor.
   (c) "Bond act" means the Safe, Reliable High-Speed Passenger Train
Bond Act for the 21st Century (Chapter 20 (commencing with Section
2704).
   (d) "PRIIA" means the Passenger Rail Investment and Improvement
Act of 2008 (Public Law 110-432).

      Article 2.  Federal High-Speed Rail Funds


   2704.50.  Federal funds for high-speed rail purposes received on a
reimbursement basis from Title XII of ARRA shall be deposited in the
federal trust fund and shall be used in a manner consistent with
federal law and regulations and Section 185036.5 of the Public
Utilities Code.
   2704.51.  The sum of two billion two hundred fifty million dollars
($2,250,000,000) in federal funds made available to the state for
high-speed rail purposes pursuant to Title XII of Division A of ARRA
shall, upon appropriation by the Legislature, be used for (a)
planning and engineering for the high-speed train system and (b)
capital costs, consistent with federal guidelines, rules, and
regulations, and Section 185036.5 of the Public Utilities Code.
   2704.52.  Funds received from PRIIA for 2010-11 shall, upon
appropriation, be available for planning and engineering for any of
the following corridors, without reference to any individual corridor
or corridors:
   (a) Merced to Sacramento.
   (b) Los Angeles to San Diego.
   (c) The Altamont Corridor.

      Article 3.  Operation


   2704.55.  This chapter shall become operative only if SB 965 of
the 2009-10 Regular Session is enacted and becomes operative.

  SEC. 4.    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 ensure that California may secure the maximum amount
of funds available for high-speed rail development and to provide for
necessary staff in that regard as quickly as possible, it is
necessary that this act take effect immediately. 
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