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 departmentsagencies 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 authoritychief 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) FiveFour 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 fivepersons 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 yearThe 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.