BILL NUMBER: AB 58 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 16, 2011
INTRODUCED BY Assembly Member Galgiani
DECEMBER 6, 2010
An act to amend Section 185024 of Sections
185024 and 185035 of, and to add Section 185032.1 to, the
Public Utilities Code, relating to high-speed rail, and declaring the
urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 58, as amended, Galgiani. High-speed rail.
Existing
(1) Existing law, the California
High-Speed Rail Act, creates the High-Speed Rail Authority to develop
and implement a high-speed rail system in the state, with specified
powers and duties. Existing law, pursuant to the Safe, Reliable
High-Speed Passenger Train Bond Act for the 21st Century, approved by
the voters as Proposition 1A at the November 4, 2008, general
election, provides for the issuance of $9.95 billion in general
obligation bonds for high-speed rail and related purposes. Existing
law provides for appointment of an executive director by the
authority, who is exempt from civil service and serves at the
pleasure of the authority.
This bill would authorize the Governor to appoint up to 5
deputy directors exempt from civil service who would serve at the
pleasure of the executive director. , for purposes of
managing and administering the ongoing work of the authority in
implementing the high-speed train project, would authorize the
Governor, upon the recommendation of the executive director, to
appoint up to 6 additional authority officers, exempt from civil
service, who would serve in specified positions at the pleasure of
the executive director. The bill would require a salary survey to be
conducted to determine the compensation for the executive director
and additional exempt officers, and would require the salaries
to be established by the authority and approved by the
Department of Personnel Administration.
The federal American Recovery and Reinvestment Act of 2009
provides funding for allocation nationally to high-speed rail
projects.
This bill would require the High-Speed Rail Authority, to the
extent possible, to use the proceeds of bonds from the Safe, Reliable
High-Speed Passenger Train Bond Act for the 21st Century to match
federal funds made available from the American Recovery and
Reinvestment Act of 2009.
(2) Existing law requires the High-Speed Rail Authority to
establish an independent peer review group for the purpose of
reviewing the authority's plans and issuing analyses of the authority'
s assumptions and the authority's funding plan for each corridor.
Existing law requires the peer review group to consist of persons
meeting specified requirements and to be designated by certain public
officers.
This bill would require the initial designations to the peer group
to be made by January 1, 2012. The bill would require the peer
review group to designate a chairperson and would require the
authority to designate a member of its staff to serve as a liaison to
the peer review group. The bill would require members of the peer
review group to receive specified per diem compensation and
reimbursement for travel expenses.
The bill would require the authority to provide a specified
progress report to the Legislature commencing March 1, 2012, and
biennially thereafter.
This
(3) This bill would declare that
it is to take effect immediately as an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 185024 of the Public
Utilities Code is amended to read:
185024. (a) The authority shall appoint an executive director,
exempt from civil service, 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. For
purposes of managing and administering the ongoing work of the
authority in implementing the high-speed train project, the Governor,
upon the recommendation of the executive director, may
appoint up to six additional officers, exempt from civil service, who
shall serve at the pleasure of the executive director. Pursuant to
this subdivision, the Governor may appoint persons only for the
following positions:
(1) Chief program manager.
(2) Regional director.
(3) Chief financial officer.
(4) Director of risk management and project controls.
(c) The compensation of the executive director and the additional
officers authorized by subdivision (b) shall be established by the
authority, and approved by the Department of Personnel
Administration, in an amount that is reasonably necessary, in the
discretion of the authority, to attract and hold a person of superior
qualifications. The authority shall cause to be conducted, through
the use of independent outside advisers, a salary survey to determine
the compensation for the positions under this subdivision. The
Department of Personnel Administration may, in its discretion, accept
a previously completed salary survey that meets the requirements of
this subdivision, and shall review the methodology used in the
survey. The salary survey shall consider both of the following:
(1) Other state, regional, and local transportation agencies that
are most comparable to the authority and its responsibilities.
(2) Other relevant labor pools.
The compensation set by the authority shall not exceed the highest
comparable compensation for a position of that type, as determined
by the salary survey. Based on the salary survey, these positions
shall be paid a salary established by the authority and approved by
the Department of Personnel Administration.
(c)
(d) The executive director may, as authorized by the
authority, appoint necessary staff to carry out the provisions of
this part.
SEC. 2. Section 185032.1 is added to the
Public Utilities Code , to read:
185032.1. (a) Commencing March 1, 2012, and biannually
thereafter, the authority shall provide a report to the Senate
Committee on Transportation and Housing, the Assembly Committee on
Transportation, the Senate Committee on Budget and Fiscal Review, and
the Assembly Committee on Budget for the development and
implementation of intercity high-speed rail service pursuant to
Section 185030. Notwithstanding Section 10231.5 of the Government
Code, the report shall be submitted biennially.
(b) The report, at a minimum, shall include a programwide summary,
as well as details by project segment, with all information
necessary to clearly describe the status of the project, including,
but not limited to, all of the following:
(1) A summary describing the overall progress of the project.
(2) The baseline budget for all project phase costs, by segment or
contract, beginning with the 2009 business plan.
(3) The current and projected budget, by segment or contract, for
all project phase costs.
(4) Expenditures to date, by segment or contract, for all project
phase costs.
(5) A comparison of the current and projected work schedule and
the baseline schedule contained in the 2009 business plan.
(6) A summary of milestones achieved during the prior year and
milestones expected to be reached in the coming year.
(7) Any issues identified during the prior year and actions taken
to address those issues.
(8) A thorough discussion of various risks to the project and
steps taken to mitigate those risks.
SEC. 3. Section 185035 of the Public
Utilities Code is amended to read:
185035. (a) The authority shall establish an independent peer
review group for the purpose of reviewing the planning, engineering,
financing, and other elements of the authority's plans and issuing an
analysis of appropriateness and accuracy of the authority's
assumptions and an analysis of the viability of the authority's
financing plan, including the funding plan for each corridor required
pursuant to subdivision (b) (c) of
Section 2704.08 of the Streets and Highways Code.
(b) The peer review group shall include all of the following:
(1) Two individuals with experience in the construction or
operation of high-speed trains in Europe, Asia, or both, designated
by the Treasurer.
(2) Two individuals, one with experience in engineering and
construction of high-speed trains and one with experience in project
finance, designated by the Controller.
(3) One representative from a financial services or financial
consulting firm who shall not have been a contractor or subcontractor
of the authority for the previous three years, designated by the
Director of Finance.
(4) One representative with experience in environmental planning,
designated by the Secretary of Business, Transportation and Housing.
(5) Two expert representatives from agencies providing intercity
or commuter passenger train services in California, designated by the
Secretary of Business, Transportation and Housing.
(c) (1) The initial designations to the peer review group
described in subdivision (b) shall be made by January 1, 2012.
(2) The peer review group shall designate a chairperson.
(3) The authority shall designate a specific member of its staff
to serve as a liaison to the peer review group.
(d) (1) Each member of the peer review group shall receive
compensation of one hundred dollars ($100) for each day that the
member is attending to the business of the peer review group, but
shall not receive more than five hundred dollars ($500) in any
calendar month.
(2) Members of the peer review group shall be reimbursed for their
actual travel expenses incurred in attending to the business of the
peer review group.
(c)
(e) The peer review group shall evaluate the authority'
s funding plans and prepare its independent judgment as to the
feasibility and reasonableness of the plans, appropriateness of
assumptions, analyses, and estimates, and any other observations or
evaluations it deems necessary.
(d)
(f) The authority shall provide the peer review group
any and all information that the peer review group may request to
carry out its responsibilities.
(e)
(g) The peer review group shall report its findings and
conclusions to the Legislature no later than 60 days after receiving
the plans.
SECTION 1. The High-Speed Rail Authority shall,
to the extent possible, use the proceed of bonds described in
paragraph (1) of subdivision (b) of Section 2704.04 of the Streets
and Highways Code to match federal funds made available from the
American Recovery and Reinvestment Act of 2009 (Public Law 111-5).
SEC. 2. Section 185024 of the Public Utilities
Code is amended to read:
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.
(d) The Governor may appoint up to five individuals, exempt from
civil service, as deputy directors of the authority, who shall serve
at the pleasure of the executive director.
SEC. 3. SEC. 4. This act is an
urgency statute necessary for the immediate preservation of the
public peace, health, or safety within the meaning of Article IV of
the Constitution and shall go into immediate effect. The facts
constituting the necessity are:
In order to ensure that California may secure the maximum amount
of funds available for high-speed rail development and to provide for
necessary staff in that regard as quickly as possible, it is
necessary that this act take effect immediately.