BILL NUMBER: SB 409	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 21, 2009

INTRODUCED BY   Senator Ducheny
    (   Coauthor:   Assembly Member  
Torres   ) 

                        FEBRUARY 26, 2009

   An act to add Part 5.1 (commencing with Section 14460) to Division
3 of Title 2 of the Government Code,   and to amend Section
185020   of, and to repeal Section 185024 of, the Public
Utilities Code,   relating to transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 409, as amended, Ducheny. Department of Railroads.
   Existing law creates the Department of Transportation in the
Business, Transportation and Housing Agency, with various powers and
duties relative to the intercity rail passenger program, among other
transportation programs. Existing law creates the High-Speed Rail
Authority, with various powers and duties relative to development and
implementation of a high-speed passenger train system. Existing law
creates the Public Utilities Commission, with various powers and
duties relative to railroads, among other responsibilities.
   This bill would create the Department of Railroads in the
Business, Transportation and Housing Agency, and create the positions
of director and deputy director within the department, to be
appointed by the Governor, as specified.  The director would be
subject to Senate confirmation.  The bill would transfer to the
department responsibility for various state railroad programs
currently administered by the above-referenced agencies. The bill
would specify new duties of the department relative to an analysis of
the state's freight rail transportation system. The bill would
provide that the department shall 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.  The bill would require the Secretary of Business,
Transportation and Housing to convene a joint task force cochaired by
the Director of Transportation, the Director of Railroads, and a
representative of the Public Utilities Commission for the purpose of
resolving i   ssues relative to overlapping jurisdiction of
the agencies.  
   Existing law provides for the Governor to appoint 5 members of the
High-Speed Rail Authority. Existing law provides for the authority
to elect a chairperson from among its members and to appoint an
executive director.  
   This bill would revise these provisions by requiring one of these
appointees to be the Director of Railroads, who would be subject to
Senate confirmation. The Director of Railroads would serve as the
chairperson of the authority. The bill would reconstitute the
authority as a division of the Department of Railroads, with the
chief of the division to be nominated by the Director of Railroads
and approved by the authority, and would delete the provision for an
executive director. 
   Vote: 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) California has a network of 5,488 miles of Class I railroads
and 1,409 miles of shortline and terminal railroads. On an annual
basis, 7,578,465 carloads of freight carrying 177,907,810 tons are
carried by these railroads. In addition, over 28 million intercity
and commuter rail passengers traveled in 2006 on tracks owned by
Class I railroads or on tracks owned by public agencies, over which
Class I railroads may operate.
   (b) Over 47 percent of the containers used in the nation's foreign
trade either enter or leave the United States via the Ports of Long
Beach, Los Angeles, and Oakland. The dominance of California's ports
is due to (1) the proximity to Asia, (2) the fact that California,
with a growing population projected to reach 49 million in 2030, is
itself a major consumer market, and (3) because the railroad
infrastructure of the state is fully integrated into the national
railroad network. As a result of being the nation's port of entry,
the number of train miles in the state are increasing, resulting in a
greater intensity of use of railroad tracks, the reduction in some
cases of average speed, and the potential reduction in the
performance of passenger rail services in some corridors.
   (c) California is the largest single state market for intercity
passenger rail travel in the country, with the three lines being
operated under contract to Amtrak carrying 42 percent of the
passengers that travel on the trains that Amtrak operates under
contract for California and 12 other states. In addition, the three
California corridors--the Pacific Surfliner in southern California,
the San Joaquins between the Bay Area/Sacramento and the San Joaquin
Valley, and the Capitol Corridor between the Bay Area and
Sacramento--carry nearly 20 percent of all Amtrak passengers.
   (d) The railroad freight industry and the commuter and intercity
passenger railroads operating in California employ 15,000 people in
the state, with total wages of $1,042,945,000 in 2005.
   (e) California voters have recognized the importance of a
passenger rail system, including high-speed rail, for improving
mobility, addressing greenhouse gas concerns, and contributing to
improvements in air quality.
   (f) It is in the public interest for California to create a
Department of Railroads to work cooperatively with private firms and
public agencies to ensure that the state's railroad infrastructure
meets the commercial needs of California, including the interchange
of freight between various modes of surface transportation, the
provision of reliable passenger services in commuter and intercity
corridors, and the deployment of a cost-effective high-speed train
system.
  SEC. 2.  Part 5.1 (commencing with Section 14460) is added to
Division 3 of Title 2 of the Government Code, to read:

      PART 5.1.  DEPARTMENT OF RAILROADS


      CHAPTER 1.  GENERAL


   14460.  There is within the Business, Transportation and Housing
Agency a Department of Railroads. An undersecretary of the agency
shall be assigned to give attention to rail matters.
   14460.1.  (a) The department is under the control of an executive
officer known as the Director of Railroads. The director is appointed
by the Governor, subject to confirmation by the Senate, and holds
office at the pleasure of the Governor. The annual salary of the
director shall be the same as provided for the Director of
Transportation pursuant to Chapter 6 (commencing with Section 11550)
of Part 1. The director shall perform all duties, exercise all powers
and jurisdiction, assume and discharge all responsibilities, and
carry out and effect all purposes vested by law in the department,
except as otherwise expressly provided by law.
   (b) There shall be within the department the position of Deputy
Director of Railroads. The deputy director is appointed by the
Governor, upon recommendation of the director, and shall serve at the
pleasure of the director. The annual salary shall be fixed by the
director in accordance with law. The deputy director shall have the
duties that may be assigned to him or her by the director and shall
be responsible to the director for the performance of those duties.
   (c) As used in this part, the following terms shall have the
following meanings:
   (1) "Department" means the Department of Railroads.
   (2) "Director" means the Director of Railroads.
   (3) "Secretary" means the Secretary of Business, Transportation
and Housing.
   14460.2.  For the purpose of administration, the director shall
organize the department with the approval of the Governor and the
secretary.
   14460.3.  The department may expend funds appropriated for the
administration of laws and programs under the jurisdiction of the
department. The expenditure of those funds shall be made in
accordance with law in carrying out the work for which the
appropriations were made.
      CHAPTER 2.  POWERS AND DUTIES


   14461.  (a) The department shall be responsible for all of the
following programs:
   (1) The intercity rail program and related matters (Sections
14031.6, 14031.7, 14031.8, and 14034 to 14040, inclusive). The
department shall assume the duties of the Department of
Transportation pursuant to Article 4 (commencing with Section 14060),
Article 5 (commencing with Section 14070), Article 5.2 (commencing
with Section 14072), Article 5.4 (commencing with Section 14074), and
Article 5.6 (commencing with Section 14076) of Chapter 1 of Part 5.
   (2) The High-Speed Rail Program (Division 19.5 (commencing with
Section 185000) of the Public Utilities Code).
   (3) The rail goods movement program (Article 9 (commencing with
Section 7700) of Chapter 1 of Division 4 of the Public Utilities
Code) and the rail portion of the goods movement programs currently
administered by the Department of Transportation's Office of Goods
Movement and the Business, Transportation and Housing Agency. In
connection with goods movement, the department, at least every two
years, shall conduct an analysis of the state's freight rail
transportation system that considers its relationship to other modes
of transportation and to commerce, assesses system performance,
identifies future trends, and recommends system improvements. The
director shall ensure that the activities associated with this
analysis are coordinated with the freight railroad industry, other
sectors of the logistics industry, commuter rail operators,
applicable, federal agencies, seaports and airports, regional
transportation planning agencies, and other relevant public and
private entities. The analysis shall identify those improvements
where public funding is appropriate and the sources of public
funding. Before preparing the analysis, the department shall develop
and publish for review a set of performance indicators that it will
use in the analysis. The performance indicators shall include, but
not be limited to, freight rail transportation system connectivity,
safety, and capacity within California.
   (4) The rail-highway grade crossing and rail-highway grade
separation programs (Chapter 6 (commencing with Section 1201) and
Chapter 6.5 (commencing with Section 1231) of Part 1 of Division 1 of
the Public Utilities Code, and Sections 190, 191, and 191.5 of, and
Chapter 10 (commencing with Section 2450) of Division 3 of, the
Streets and Highways Code).
   (5) Coordination of regional transportation planning efforts
throughout the state relative to rail transportation.
   (b) Notwithstanding any other provision of law, the department
shall succeed to and be vested with all of the duties, powers,
purposes, and responsibilities with respect to the programs
identified in subdivision (a). Any reference to the Department of
Transportation or the Public Utilities Commission with respect to
those programs shall be deemed to refer to the department, unless the
context otherwise requires.
   (c) The secretary shall convene a joint task force, cochaired by
the director  and Director of Transportation   ,
the Director of Transportation, and a representative of the Public
Utilities Commission  , for the purpose of resolving issues
between their  two departments   agencies 
relative to overlapping jurisdiction.
   14462.  (a) The department shall be responsible for developing a
proposed budget. Any reference to budgetary duties of the Department
of Transportation or the Public Utilities Commission relative to a
funding source that supports programs that have been transferred to
the department pursuant to Section 14461 shall refer to the
department. The Department of Transportation or the Public Utilities
Commission shall cooperate with the department to ensure a smooth
transition. The Department of Transportation shall further cooperate
with the department relative to the programming process for
transportation funds that may be allocated to transportation projects
under the jurisdiction of either department, including, but not
limited to, interregional transportation program funds governed by
Section 14526 of this code and paragraph (1) of subdivision (a) of
Section 164 of the Streets and Highways Code. Funds allocated under
subdivision (f) of Section 99315 of the Public Utilities Code shall
be allocated to the department consistent with the department's
responsibilities.
   (b) The department shall succeed to the responsibilities of the
Department of Transportation with respect to general obligation bond
funds made available for rail purposes under the Passenger Rail and
Clean Air Bond Act of 1990 (Part 11.5 (commencing with Section 99600)
of the Public Utilities Code), the Clean Air and Transportation
Improvement Act of 1990 (Chapter 17 (commencing with Section 2700) of
Division 3 of the Streets and Highways Code), and the Highway
Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of
2006 (Chapter 12.49 (commencing with Section 8879.20) and Chapter
12.491 (commencing with Section 8879.50) of Division 1 of Title 2 of
this code).
    (c) The department shall be the only state agency eligible to
apply for and receive grant and loan funds from the federal
government or other sources for intercity rail, high-speed rail, or
freight rail purposes. Responsibility for grants and loans made
available to the state prior to the enactment of this part shall be
transferred to the department.
   14463.  The California Transportation Commission shall continue to
be responsible for the programming of transportation capital
projects pursuant to Chapter 2 (commencing with Section 14520) of
Part 5.3.
   14464.  The High-Speed Rail Authority shall be a division of the
department. The  executive director of the authority
  chief of the division shall be exempt from civil
service and shall be nominated by the director and approved by the
authority. The chief of the division  shall report to the
director. The budget for  the high-speed rail program overseen by
 the authority shall be developed by the board of the authority
in cooperation with the director. 
   14465.  There shall be within the department a division of
railroad-highway grade separation and grade crossing protection.

   SEC. 3.    Section 185020 of the   Public
Utilities Code   is amended to read: 
   185020.  (a) There is in state government a High-Speed Rail
Authority.
   (b) (1) The authority is composed of nine members as follows:
   (A)  Five   Four  members appointed by
the Governor.
   (B) Two members appointed by the Senate Committee on Rules.
   (C) Two members appointed by the Speaker of the Assembly. 
   (D) The Director of Railroads, who shall be subject to appointment
and confirmation pursuant to subdivision (a) of Section 14460.1 of
the Government Code. 
   (2) For the purposes of making appointments to the authority, the
Governor, the Senate Committee on Rules, and the Speaker of the
Assembly shall take into consideration geographical diversity to
ensure that all regions of the state are adequately represented.
   (c) Except as provided in subdivision (d), and until their
successors are appointed, members of the authority  , other than
the Director of Railroads,  shall hold office for terms of four
years. A vacancy shall be filled by the appointing power making the
original appointment, by appointing a member to serve the remainder
of the term.
   (d) (1) On and after January 1, 2001, the terms of all persons who
are then members of the authority shall expire, but those members
may continue to serve until they are reappointed or until their
successors are appointed. In order to provide for evenly staggered
terms, persons appointed or reappointed to the authority after
January 1, 2001, shall be appointed to initial terms to expire as
follows:
   (A) Of the  five  persons appointed by the
Governor, one shall be appointed to a term which expires on December
31, 2002, one shall be appointed to a term which expires on December
31, 2003, one shall be appointed to a term which expires on December
31, 2004, and two shall be appointed to terms which expires on
December 31, 2005.
   (B) Of the two persons appointed by the Senate Committee on Rules,
one shall be appointed to a term which expires on December 31, 2002,
and one shall be appointed to a term which expires on December 31,
2004.
   (C) Of the two persons appointed by the Speaker of the Assembly,
one shall be appointed to a term which expires on December 31, 2003,
and one shall be appointed to a term which expires on December 31,
2005.
   (2) Following expiration of each of the initial terms provided for
in this subdivision, the term shall expire every four years
thereafter on December 31. 
   (3) Paragraphs (1) and (2) shall not apply to the Director of
Railroads, who shall be initially appointed to a term which expires
on December 31, 2009, pursuant to subparagraph (A) of paragraph (1).

   (e) Members of the authority are subject to the Political Reform
Act of 1974 (Title 9 (commencing with Section 81000)).
   (f)  From among its members, the authority shall elect a
chairperson, who shall preside at all meetings of the authority, and
a vice chairperson to preside in the absence of the chairperson. The
chairperson shall serve a term of one year   The
Director of Railroads shall be the chairperson of the authority and
shall preside at all meetings  .
   (g) Five members of the authority constitute a quorum for taking
any action by the authority.
   SEC. 4.    Section 185024 of the   Public
Utilities Code   is repealed.  
   185024.  (a) The authority shall appoint an executive director,
who shall serve at the pleasure of the authority, to administer the
affairs of the authority as directed by the authority.
   (b) The executive director is exempt from civil service and shall
be paid a salary established by the authority and approved by the
Department of Personnel Administration.
   (c) The executive director may, as authorized by the authority,
appoint necessary staff to carry out the provisions of this part.