BILL ANALYSIS Ó AB 492 Page 1 Date of Hearing: May 4, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 492 (Galgiani) - As Introduced: February 15, 2011 Policy Committee: TransportationVote:12-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill authorizes the High-Speed Rail Authority (HSRA), when awarding contracts or purchasing trains and related equipment, to consider, to the extent permitted by federal law and all other applicable provisions of state law, the creation of jobs in California. FISCAL EFFECT Potential minor administrative costs to the extent the authority conducts enhanced outreach to California contractors and suppliers prior to awarding contracts, however, the bill neither requires nor allows the authority to award contracts to other than the lowest bidder, or in the case of negotiated contracts, to the most qualified firm. COMMENTS 1)Purpose . The High-Speed Rail Bond Act, approved by the voters 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. According to the author, this bill "seeks to maximize the number of California-based jobs that will be created by contracts for the construction of the High-Speed Train (HST) project and the purchase of materials related to it as a means to improve and strengthen the California economy and job base. AB 492 Page 2 2)Prior Legislation . In 2010, AB 733 (Galgiani), which was identical to this bill, was vetoed by Governor Schwarzenegger, who expressed concern that the bill "could result in unnecessary additional costs and delays and may jeopardize the success of the project in securing the billions of dollars that are needed to construct this project." Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081