BILL ANALYSIS Ó
AB 16
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 16 (Perea)
As Amended August 22, 2012
Majority vote
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|ASSEMBLY: |57-19|(June 2, 2011) |SENATE: |25-10|(August 28, |
| | | | | |2012) |
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Original Committee Reference: TRANS.
SUMMARY : Requires the High-Speed Rail Authority (Authority) to
make every effort to purchase high-speed train rolling stock and
related equipment that is manufactured in California, consistent
with federal law and any other applicable provision of state
law.
The Senate amendments declare that the bill's provisions do not
create a private right of action in any civil litigation.
EXISTING LAW :
1)Establishes the Authority and charges it with the
responsibility to plan, design, construct, operate, and
maintain a state-of-the-art high-speed train system for
California.
2)Enacts the Safe, Reliable High-Speed Passenger Train Bond Act
for the 21st Century (Act). The Act, approved as Proposition
1A in November 2008, 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.
3)Authorizes the Legislature to establish conditions and
criteria on the use of funds appropriated for planning and
capital costs.
4)Requires the Authority, prior to seeking an initial
appropriation for capital expenditures and prior to expending
bond funding for the construction and acquisition of equipment
and property, to submit detailed funding plans to the
Legislature.
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5)Requires contracts for the purchase of supplies for state or
local government use to include provisions granting
preferences for supplies grown, manufactured, or produced in
California. Authorizes the use of the preference when
in-state products and supplies do not exceed more than 5% of
the price of the lowest bid for goods and supplies
manufactured out-of-state.
6)Establishes procedures for competitive bidding of certain
contracts by public entities and requires them to give
California companies preference on construction contracts
against nonresident contractors. The preference is equal to
any preference that the nonresident contractor receives on
public works contracts in its state of residency.
7)Prohibits, generally, the use of American Recovery and
Reinvestment Act of 2009 (ARRA) funds for a project unless all
of the iron, steel, and manufactured goods used in the project
are produced in the United States.
AS PASSED BY THE ASSEMBLY , this bill requires the High-Speed
Rail Authority (Authority) to make every effort to purchase
high-speed train rolling stock and related equipment that is
manufactured in California, consistent with federal law and any
other applicable provision of state law.
FISCAL EFFECT : According to Assembly Appropriations Committee,
potential minor administrative costs to the extent the Authority
conducts enhanced outreach to California suppliers prior to
contracting for equipment purchases.
COMMENTS : Following the statewide voter approval of Proposition
1A authorizing $9 billion for the development of a high-speed
rail system in California, the Authority is transitioning from a
small study and planning organization to a multi-billion dollar
engineering and construction entity. The Authority may soon be
tasked to approve major purchases of train rolling stock and
equipment. This bill imposes a requirement upon the Authority
to try to buy California manufactured rolling stock and
equipment.
California workers have reason to be concerned that high-speed
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rail manufacturing may otherwise be outsourced. Foreign firms
are lobbying hard to secure work from the Authority. China, for
example, has announced plans to build United States high-speed
train lines and is stepping up exports of its rail technology.
French, Spanish, and Japanese firms have also indicated their
interests in securing contracts with the Authority.
The sponsor of this bill, the California Labor Federation,
asserts that, "As construction progresses, California will need
to contract with a company to purchase new high-speed trains.
Currently all high-speed rail manufacturers are located
overseas. But California has an opportunity to use public
dollars to attract new manufacturers to California to build
high-speed rail trains here, creating new jobs and a new
industry."
Previous legislation: AB 1830 (Galgiani) of 2010 was nearly
identical to this bill. It passed the Legislature but was
vetoed by Governor Schwarzenegger who wrote: "While I support
job creation in the state, this bill could result in unnecessary
additional costs and delays in the constructing of high-speed
rail in California and for this reason I am unable to sign it."
Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093
FN: 0005502