BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 615|
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THIRD READING
Bill No: AB 615
Author: Bonnie Lowenthal (D), et al.
Amended: 8/31/11
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 6-2, 7/5/11
AYES: DeSaulnier, Huff, Kehoe, Lowenthal, Pavley, Rubio
NOES: Gaines, Harman
NO VOTE RECORDED: Simitian
SENATE APPROPRIATIONS COMMITTEE : 6-3, 8/25/11
AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
NOES: Walters, Emmerson, Runner
ASSEMBLY FLOOR : 59-16, 6/1/11 - See last page for vote
SUBJECT : High-speed rail
SOURCE : Author
DIGEST : This bill provides the High-Speed Rail Authority
with independent authority over property acquisition and
management of lands for the high-speed rail project through
contracts with the Department of Transportation.
ANALYSIS : In November 2008, California voters approved
Proposition 1A, the Safe, Reliable High-Speed Passenger
Train Bond Act for the 21st Century of 2008 (Proposition
1A). The $9.95 billion bond measure provides $950 million
for improving conventional rail services connecting to the
CONTINUED
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high-speed rail line and $9 billion for high-speed rail
development. Of the remaining $9 billion, $900 million is
for the project's planning, environmental analysis, and
preliminary engineering. Proposition 1A limits the
expenditure of the $8 billion available for construction to
not more than 50 percent of the cost of building the
systems. Proposition 1A identifies the Phase I corridor
for high-speed rail as an alignment from the San Francisco
Transbay Terminal to the Los Angeles Union State and
Anaheim via the San Joaquin Valley. The total estimated
cost of Phase I is between $43 and $65 billion.
Proposition 1A defines the capital cost for which bond
revenues may be used to include acquisition of property,
acquisition and construction of tracks, structures, power
systems, and stations; acquisition of train equipment;
mitigation of direct and indirect environmental impacts;
relocation assistance; and other related capital
facilities, including financing and refinancing if
authorized by a subsequent statute. It also authorizes the
HSRA to contract for services and equipment for developing
and operating the high-speed train service.
In January 2010, HSRA received an American Recovery and
Reinvestment Act (ARRA) grant of $2.25 billion to aid in
the development of the Phase I project. Of that amount,
$400 million is for constructing the basement of the new
Transbay Terminal in San Francisco to accommodate
high-speed trains. According to the Federal Railroad
Administration's (FRA) announcement of its ARRA award, the
remaining $1.85 billion is for purchasing right-of-way,
constructing track, signaling systems, and stations, and
completing environmental reviews and engineering documents
for the Los Angeles/ Anaheim segment, the San Francisco/San
Jose segment, the Fresno/ Bakersfield segment, and the
Merced/Fresno segment. In a second round of federal
funding the HSRA received approximately $1.3 billion, and
in a third round of funding the HSRA received $300 million
from funds declined by Florida. The HSRA and the FRA
jointly selected a segment from near Fresno to near
Bakersfield as the first construction segment. Between
federal funds and state bond funds, the HSRA has committed
about $5.7 billion for this Central Valley project. As a
condition of the ARRA grants, the HSRA must complete
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construction by September 30, 2017.
Existing law governing the acquisition and disposal of real
property by state agencies:
1. Authorizes the Director of the Department of General
Services (DGS) to approve the receipt of real property
by state agencies but exempts the Department of
Transportation (Caltrans) from this requirement for the
acquisition of highway right-of-way, the Coastal
Conservancy for property providing access to the
coastline, and the Department of Parks and Recreation
for historical property.
2. Exempts Caltrans from obtaining the approval of DGS when
acquiring or disposing of real property obtained for
highway purposes. The State Lands Commission, the
Controller, and the State Compensation Insurance Fund
enjoy a similar exemption when acquiring property.
3. Authorizes the governing bodies of several state
agencies, including the California Transportation
Commission (CTC) on behalf of Caltrans, to adopt a
resolution of necessity to initiate eminent domain.
4. Requires DGS to develop an inventory of state property,
but excludes from that inventory property owned by the
Legislature, the University of California, the State
Lands Commission, and Caltrans. These entities, with
the exception of the Legislature, must provide a
separate submittal to DGS.
5. Exempts Caltrans from obtaining the approval of the
Department of Finance or the State Public Works Board
when expending funds appropriated for capital outlay
purposes. All other state agencies must obtain
approvals from both agencies.
6. Requires any acquisition of land or other real property
authorized in any appropriation, except an appropriation
to Caltrans, to be subject to the provisions of the
State's Property Acquisition Law.
7. Exempts Caltrans from using DGS to negotiate, in the
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name of the state, access to right-of-way it owns,
including the value of the right of access.
8. Authorizes DGS, with the exception of state highways, to
quitclaim in the name of the state, the right, title,
and interest of the state in and to easements and
rights-of-way owned by the state.
9. Requires DGS to have sole charge and direct control of
state capital outlay projects, except projects
undertaken by the Department of Water Resources (DWR),
Caltrans, the Department of Boating and Waterways, the
Department of Corrections and Rehabilitation, and the
Military Department.
10.Authorizes Caltrans to enter into leases with public
agencies or private entities for any term not to exceed
99 years.
11.Provides general authority to the HSRA for the
development and implementation of the high-speed rail
project, including the acquisition of rights-of-way
through purchase and eminent domain.
This bill:
1. Authorizes the HSRA to purchase property, easements, and
other property rights to the authority granted to other
state agencies, such as Caltrans and DWR.
2. Authorizes the HSRA to adopt a resolution of necessity
to initiate eminent domain.
3. Authorizes HSRA, when it has acquired title to any real
property for high-speed rail purposes and leases that
property for commercial or business uses to the former
owner for a term exceeding six months, to secure
insurance against the risk of damage or destruction by
fire where the former owner requests this coverage, with
the premium included in the rental agreement. This is
similar to the authority existing law confers upon
Caltrans.
4. Provides an exemption, similar to the exemptions
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accorded to Caltrans, the University of California,
State Lands Commission, and the Legislature, from the
property inventory reporting to DGS.
5. Prohibits DGS from granting easements or acquiring
rights-of-way across the property of the HSRA.
6. Authorizes the HSRA to negotiate, in the name of the
state, access to rights-of-way it owns, including the
value of the right of access. The revenues received
would be deposited in the High-Speed Rail Property Fund
for use in the development, improvement, and maintenance
of the high-speed rail system, upon appropriation of the
Legislature.
7. Distinguishes HSRA's role from DGS's in terms of state
quitclaims and its role in public contracting for
capital outlay projects.
8. Authorizes HSRA to lease property for any term not to
exceed 99 years, as Caltrans may.
9. Requires HSRA to contract with Caltrans for all the
independent powers and duties provided in this bill.
10.Appropriates $4 million from the High-Speed Passenger
Train Bond Fund for acquisition and design of the Los
Angeles to San Diego segment.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/30/11)
California High-Speed Rail Authority
Californians for High-Speed Rail
ASSEMBLY FLOOR : 59-16, 6/1/11
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Davis, Dickinson, Eng, Feuer,
Fletcher, Fong, Fuentes, Galgiani, Gatto, Gordon, Hagman,
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Hall, Hayashi, Roger Hernández, Hill, Huber, Hueso,
Huffman, Jones, Lara, Bonnie Lowenthal, Ma, Mendoza,
Mitchell, Monning, Norby, Olsen, Pan, Perea, V. Manuel
Pérez, Portantino, Skinner, Smyth, Solorio, Swanson,
Torres, Wieckowski, Williams, Yamada, John A. Pérez
NOES: Conway, Cook, Donnelly, Beth Gaines, Garrick, Grove,
Halderman, Harkey, Knight, Logue, Mansoor, Morrell,
Nestande, Nielsen, Valadao, Wagner
NO VOTE RECORDED: Furutani, Gorell, Jeffries, Miller,
Silva
JJA:mw 8/31/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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