BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 845
                                                                  Page  1

          Date of Hearing:   May 2, 2011

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                   AB 845 (Ma) - As Introduced:  February 17, 2011
           
          SUBJECT  :  Safe, Reliable High-Speed Passenger Train Bond Act for 
          the 21st Century:  intercity, commuter and urban rail bonds

           SUMMARY :  Sets forth provisions to govern the distribution of 
          $950 million in bond funds authorized in the Safe, Reliable 
          High-Speed Passenger Train Bond Act for the 21st Century (Bond 
          Act) for intercity, commuter, and urban rail lines.  
          Specifically,  this bill  :  

          1)Requires the distribution of the funds to be based on the most 
            current available data in the National Transit Database of the 
            Federal Transit Administration.  

          2)Directs the California Transportation Commission (CTC) to 
            accept from each eligible recipient of the funds a priority 
            list of project; projects must meet criteria set forth in the 
            Bond Act.  

          3)Directs the CTC to require that matching funds are to be 
            provided from non-state funds, as defined.  

          4)Provides that the required match for commuter and urban rail 
            projects begins with expenditures made subsequent to the 
            adoption of the program by the CTC.  

           EXISTING LAW:  

          1)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.  

          2)Of the $9.95 billion provided for in the Bond Act, authorizes 
            $950 million in bonds to be allocated to eligible recipients 
            for capital improvements to intercity rail lines, commuter 
            rail lines, and urban rail systems that: 1) provide direct 
            connectivity to the high-speed train system and its 
            facilities; 2) are a part of the construction of the 
            high-speed train system; or, 3) provide capacity enhancements 








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            and safety improvements.  

          3)Of this amount, $190 million is for allocation to intercity 
            rail lines and the $760 million is to be allocated to other 
            eligible recipients.  

          4)Defines "eligible recipients" to mean public agencies and 
            joint powers authorities that operate regularly scheduled 
            passenger rail service in commuter, light, and heavy rail and 
            cable cars.  

          5)Directs the CTC to allocate the bond funds to eligible 
            recipients and to develop related guidelines, in consultation 
            with the High-Speed Rail Authority.  

          6)Prescribes that funds are to be distributed by formula based 
            on track miles, annual vehicle miles, and passenger trips.  

          7)Specifically provides that bond funds are to be used for 
            projects to provide or improve connectivity with the 
            high-speed train system or for the rehabilitation or 
            modernization of, or safety improvements to tracks utilized 
            for public passenger rail service, signals, structures, 
            facilities, and rolling stock; explicitly provides that 
            eligible recipients may use the funds for any one of these 
            elements.  

          8)Requires eligible recipients to match bond dollars 1:1.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  In 2008, California voters approved the Bond Act via 
          Proposition 1A, a $9.95 billion bond measure to build the 
          country's first high-speed rail train system.  Within 
          Proposition 1A, voters supported $950 million to be used for 
          local capital modernization and improvement projects on existing 
          rail facilities in California to provide a tight web of 
          connectivity to high-speed rail and to assure that our existing 
          rail properties were in an adequate state of repair to 
          accommodate the additional capacity necessary for providing 
          connecting services to high-speed rail.  

          In February 2010, the CTC adopted guidelines to implement both 
          the Intercity Rail Program (for the $190 million in bond 
          proceeds) and the Commuter and Urban Rail Program (for the 








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          remaining $760 million in bond proceeds).   In its guidelines 
          for the Commuter and Urban Rail Program, the CTC provided that 
          it will give priority to those projects that provide direct 
          connectivity to the high-speed train system.  

          The CTC adopted it initial three-year program of projects for 
          these two programs in May 2010 and last year's budget included 
          appropriations of bond funds to begin funding the programs.  
          However, the Governor apparently did not agree with the program 
          adopted by the CTC and vetoed roughly $133 million in bond act 
          appropriations, stating: "The High-Speed Rail Authority, the 
          Department of Transportation, and local jurisdictions should 
          work together to develop a statewide strategy and an associated 
          list of projects that will best accomplish the goal of moving 
          passengers between destinations around the state in the 
          quickest, most efficient and cost effective way, by utilizing 
          these funds to advance the construction of facilities for joint 
          use where possible and by providing better connectivity to the 
          future high-speed rail system."  

          AB 845 codifies a portion of the CTC guidelines.  Specifically, 
          the bill codifies elements of the guidelines relating to 
          distribution of funds for the Commuter and Urban Rail Program 
          for the modernization of intercity, commuter, and urban rail 
          transit systems.  

           Author's amendments:   The bill would have the distribution of 
          the funds be based on the most current available data in the 
          National Transit Database of the Federal Transit Administration. 
           However, the program adopted by the CTC was based on 2007 data. 
           The bill should be amended so that it consistent with the 
          program adopted by the CTC.  
           
           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Bay Area Rapid Transit (sponsor)

           Opposition 
           
          None on file
           

          Analysis Prepared by  :   Janet Dawson / TRANS. / (916) 319-2093 








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