BILL ANALYSIS Ó AB 427 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 427 (John A. Pérez) As Amended August 15, 2011 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |72-0 |(May 12, 2011) |SENATE: |36-0 |(August 29, | | | | | | |2011) | ----------------------------------------------------------------- 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 AB 427 Page 2 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 AB 427 Page 3 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 FN: 0001896