BILL NUMBER: SB 783	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 23, 2009
	AMENDED IN SENATE  MAY 28, 2009
	AMENDED IN SENATE  APRIL 30, 2009
	AMENDED IN SENATE  APRIL 13, 2009

INTRODUCED BY   Senator Ashburn

                        FEBRUARY 27, 2009

   An act to amend Section 185033 of the Public Utilities Code,
relating to high-speed rail.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 783, as amended, Ashburn. High-speed rail.
   Existing law creates the High-Speed Rail Authority with specified
powers and duties relating to the development and implementation of
an intercity high-speed rail system. Existing law requires the
authority to prepare and to submit to the Legislature a revised
business plan containing specified elements by September 1, 2008.
   This bill would require the authority to prepare, publish, adopt,
and submit to the Legislature a business plan addressing specified
elements no later than January 1, 2012, and every 2 years thereafter,
with a draft of the business plan to be available at least 60 days
in advance for public review and comment, followed by a public
hearing.
   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.  Section 185033 of the Public Utilities Code is amended
to read:
   185033.  (a) The authority shall prepare, publish, adopt, and
submit to the Legislature, not later than January 1, 2012, and every
two years thereafter, a business plan. At least 60 days prior to the
publication of the plan, the authority shall publish a draft business
plan for public review and comment. The draft plan shall also be
submitted to the Senate Committee on Transportation and Housing
 and   ,  the Assembly Committee on
Transportation  , the Senate Committee on Budget and Fiscal
Review, and the Assembly Committee on Budget . The business plan
shall identify all of the following: the type of service the
authority anticipates it will develop, such as local, express,
commuter, regional, or interregional; a description of the primary
benefits the system will provide; a forecast of the anticipated
patronage, operating  and maintenance  costs, and capital
costs for the system; an estimate and description of the total
anticipated federal, state, local, and other funds the authority
intends to access to fund the construction and operation of the
system; and the proposed chronology for the construction of the
eligible corridors of the statewide high-speed train system. The
business plan shall also include a discussion of all reasonably
foreseeable risks the project may encounter, including, but not
limited to, risks associated with the project's finances, patronage
 ,   right of way acquisition, environmental clearances
 , construction, equipment, and technology, and other risks
associated with the project's development. The plan shall describe
the authority's strategies, processes, or other actions it intends to
utilize to manage those risks.
    (b) (1) In addition to the requirements of subdivision (a), the
business plan shall include, but need not be limited to, all of the
following elements:
   (A) Using the most recent patronage forecast for the system,
develop a forecast of the expected patronage and service levels for
the Phase 1 corridor as identified in paragraph (2) of subdivision
(b) of Section 2704.04 of the Streets and Highways Code and by each
segment or combination of segments for which a project level
environmental analysis is being prepared for Phase 1. The forecast
shall assume a high, medium, and low level of patronage and a
realistic operating planning scenario for each level of service.
Alternative fare structures shall be considered when determining the
level of patronage.
   (B) Based on the patronage forecast in subparagraph (A), develop
alternative financial pro formas for the different levels of service,
and identify the operating break-even points for each alternative.
Each pro forma shall assume the terms of subparagraph (J) of
paragraph (2) of subdivision (c) of Section 2704.08 of the Streets
and Highways Code.
   (C) Identify the expected schedule for completing environmental
review, and initiating and completing construction for each segment
of Phase 1.
   (D) Identify the source of federal, state, and local funds
available for the project that will augment funds from the bond act
and the level of confidence for obtaining each type of funding.
   (E) Identify written agreements with public or private entities to
fund components of the high-speed rail system, including stations
and terminals, any impediments to the completion of the system, such
as the inability to gain access to existing railroad rights-of-way.
   (F) Identify alternative public-private development strategies for
the implementation of Phase 1.
   (2) The authority shall hold at least one public hearing on the
business plan and shall adopt the plan at a regularly scheduled
meeting. When adopting the plan, the authority shall take into
consideration comments from the public hearing and written comments
that it receives in that regard, and any hearings that the
Legislature may hold prior to adoption of the plan.