BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 427
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 427 (John A. Pérez)
          As Amended  August 15, 2011
          Majority vote
           
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          |ASSEMBLY:  |72-0 |(May 12, 2011)  |SENATE: |36-0 |(August 29,    |
          |           |     |                |        |     |2011)          |
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           Original Committee Reference:    TRANS.
           
           SUMMARY  :  Modifies the Highway Safety, Traffic Reduction, Air 
          Quality, and Port Security Bond Act of 2006 (bond act) 
          provisions to allow regional transit agencies and the California 
          Emergency Management Agency (CEMA) to re-direct bond funds to 
          projects that are ready to bid for purposes of transit system 
          safety, security, and disaster response.  

           The Senate amendments  :  
          
          1)Authorize, explicitly the eligibility of safety projects for 
            funding from the account as approved by CEMA, pursuant to 
            specified requirements.  

          2)Require funds allocated for use on the southern California 
            regional commuter rail system (Metrolink) that serves a five 
            county region to be allocated to each of the county 
            transportation commissions served by Metrolink.  

           EXISTING LAW  :  

          1)Authorizes, pursuant to the bond act, the issuance of $19.925 
            billion of general obligation bonds for specified purposes.  
            Of this amount, requires the deposit of $1 billion of the bond 
            proceeds into the account to be used, upon appropriation, for 
            capital projects that provide increased protection against a 
            security and safety threat, and for capital expenditures to 
            increase the capacity of transit operators to develop disaster 
            response transportation systems that can move people, goods, 
            and emergency personnel and equipment in the aftermath of a 
            disaster impairing that movement.  

          2)Establishes CEMA, merging the Office of Emergency Services and 
            the Office of Homeland Security, responsible for overseeing 








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            and coordinating emergency preparedness, response, recovery, 
            and homeland security activities.  

          3)Designates CEMA as the administrative agency for the account 
            and requires the separate allocation of capital expenditures 
            to transportation planning agencies, county transportation 
            commissions, and certain other transit-related agencies; 
            intercity passenger rail systems and commuter rail systems; 
            and, San Francisco Bay Area regional public water ferry 
            services.  

          4)Provides that operators that receive those funds for intercity 
            passenger rail systems and commuter rail systems are not 
            eligible for those funds designated for capital expenditures 
            of transportation planning agencies, county transportation 
            commissions, and other specified transit-related agencies.  

           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar 
          to the version passed by the Senate.  

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, minor, one-time costs for CEMA administration.  
          Likely less than $50,000 to update guidelines for reallocations. 
           

           COMMENTS  :  This bill provides further refinements to the bond 
          act's Transit System Safety, Security, and Disaster Response 
          Program to ensure the timely expenditures of capital projects 
          and allowing flexibility to transit and intercity rail operators 
          who have ready-to-go transit system safety, security and 
          disaster response projects.  

          According to the author, "In 2007, the Legislature approved SB 
          88 (Senate Budget and Fiscal Review Committee) Chapter 181, 
          Statutes of 2007, that implemented various Proposition 1B 
          programs including the implementation of the Transit System 
          Safety, Security, and Disaster Response Program.  Overall, the 
          program implementation has been successful; however, 
          opportunities for refinement have become apparent.  The $1 
          billion bond program is subdivided into three sub programs:  60% 
          Mass Transit Program, 25% Regional Public Water Transit Agency 
          in the Bay Area, 15% Intercity Rail.  The 60% Mass Transit 
          Program is governed by the State Transit Assistance (STA) 
          formula.  Current law does not allow CEMA to re-direct funds in 
          the event that an STA eligible agency doesn't have need for the 








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          funding.  This bill allows bond funds to be re-directed to 
          shovel ready projects only in cases where the eligible agency 
          signals that they do not have needs for the funds.  Current law 
          does not allow an entity receiving funds from the 15% Intercity 
          Rail Program to be eligible to receive funds from the 60% Mass 
          Transit Program."  This bill removes that prohibition in order 
          to clarify and address the ambiguity in how this prohibition is 
          being implemented.  

          Related legislation:  AB 1350 (Nuñez) of 2007, would have 
          modified provisions to the Transit System Safety, Security, and 
          Disaster Response Program.  AB 1350 (Nuñez) was held in the 
          Senate Appropriations Committee as its provisions were 
          incorporated into SB 88 (Senate Budget and Fiscal Review 
          Committee) Chapter 181, Statutes of 2007.  

          AB 105 (Assembly Budget Committee) Chapter 6, Statutes of 2011, 
          among other items in the transportation budget trailer bill, 
          allows waterborne transit agencies an additional year to expend 
          bond act funds.  
           

          Analysis Prepared by  :    Ed Imai / TRANS. / (916) 319-2093 


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