BILL ANALYSIS
AB 289
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 289 (Galgiani)
As Amended August 27, 2010
Majority vote
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|ASSEMBLY: | |(May 18, 2009) |SENATE: |21-9 |(August 27, |
| | | | | |2010) |
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(vote not relevant)
Original Committee Reference: TRANS.
SUMMARY : Provides guidance to the California High-Speed Rail
Authority (Authority) over the expenditures of $2.25 billion in
federal American Recovery and Reinvestment Act (ARRA) grant
funds. Authorizes the Governor to appoint additional executive
staff and establishes intent language to create an Office for
Project Controls and Risk Management.
The Senate amendments :
1)Authorize the Governor, upon recommendation of the executive
director and subject to annual budget authority, to appoint up
to six additional executive staff exempt from civil service
who would serve in specified positions at the pleasure of the
executive director. Require 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.
2)State the intention of the Legislature to approve additional
positions to staff an Office for Project Controls and Risk
Management.
3)Require that $2.25 billion ARRA federal funds, upon
appropriation by the Legislature, are used for planning,
engineering, and capital outlay for the high-speed train
system, consistent with federal guidelines, rules, and the
provisions of SB 965 (DeSaulnier) of 2010. Require federal
high-speed rail funds, received on a reimbursement basis from
ARRA, to be deposited in the federal trust fund.
4)Require any Passenger Rail Investment and Improvement Act of
AB 289
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2008 (PRIIA) funds, upon appropriation, to be used for
planning and engineering of corridors not included in Phase I
of the high-speed rail project.
5)Add contingent enactment language indicating that this bill
will become enacted only if SB 965 is enacted.
6)Include an urgency clause.
EXISTING LAW :
1)Enacts the High-Speed Rail Bond Act, as approved as
Proposition 1A in November 2008, that 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. Authorizes the Legislature to establish conditions
and criteria on funds appropriated for planning and capital
costs.
2)Requires Authority, prior to expending bond funding for the
construction and acquisition of equipment and property, to
submit to the Department of Finance, the Joint Legislative
Budget Committee, the peer review group as established, and
the transportation and fiscal policy committees of the
Legislature, a detailed funding plan for each corridor or
usable segment.
3)Establishes Authority with a nine member governing board that
is authorized to appoint an executive director. With the
approval of the governing board, authorizes the executive
director to appoint staff.
4)Enacts federal law, PRIIA and the ARRA, that provide funding,
nationally, to high-speed rail projects. Authorizes $1.85
billion of ARRA funds to the Authority for high-speed rail
passenger services in California.
AS PASSED BY THE ASSEMBLY , this bill originally pertained to the
exemption from the provisions of the California Environmental
Quality Act the grade separation projects proposed by the
Authority.
FISCAL EFFECT : Unknown
AB 289
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COMMENTS : Following the passage of the High-Speed Rail Bond
Act, the Authority will be transitioning from a small study and
planning organization to a multi-billion dollar engineering and
construction entity. Supplementing state revenues for the
high-speed rail project pursuant to the High-Speed Rail Bond
Act, California has received approval from the federal
government for $2.25 billion in ARRA funds. AB 289 would
provide guidance related to the expenditure of federal
high-speed rail funds, based upon existing federal law and
regulations that govern agreements between Authority and the
federal government.
Authority administration: For purposes of administering the
work of the Authority and managing its contracts, the bill
provides direction on hiring six additional executive staff
positions as well as the creation of an Office for Project
Controls and Risk Management. These are the initial critical
positions necessary for the Authority to properly expend and
administer the federal and state funds available. These
provisions were included in AB 1375 (Galgiani) of 2010, that was
passed by the Assembly Transportation Committee. Further, the
new office will provide needed oversight, accountability, and
risk management functions critical for a project of its nature,
size, and funding issues.
Federal process: This bill clarifies and establishes the
ability of the Authority to expend federal PRIIA funds.
Further, the current process requires the Authority to enter
into a cooperative agreement with the Federal Railroad
Administration (FRA) over the expenditure of federal project
funds. Once the agreement is consummated, the FRA will
reimburse the state for 50% of the project's costs.
Double-joint: This bill is double-jointed with SB 965, that was
approved by the Assembly Transportation Committee and is on the
Assembly Third Reading File.
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093 FN:
0006595