BILL ANALYSIS Ó SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: AB 845 SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: Ma VERSION: 5/10/11 Analysis by: Art Bauer FISCAL: yes Hearing date: July 5, 2011 SUBJECT: High speed rail bond funds DESCRIPTION: This bill codifies guidelines adopted by the California Transportation Commission for the expenditure of bond funds for conventional rail services connecting to high-speed rail trains. 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 $9 billion for high-speed rail development and $950 million for improving the safety or capacity of conventional rail services connecting to the high-speed rail line. Included in the connectivity funds is $190 million for the intercity rail program managed by the Department of Transportation (Caltrans) and $760 million for commuter rail operators and public mass transit agencies. Proposition 1A requires a dollar-for-dollar match from non-state funds. The California Transportation Commission (CTC) adopted guidelines for allocating the conventional rail funds in 2010. The 2010-2011 state budget appropriated $101 million from Proposition 1A conventional rail funds for the installation of positive train control systems, a modern rail safety technology. In addition, the 2011-2012 budget appropriates $154.3 million for local and commuter transit operators and $108.1 million to Caltrans for the intercity rail program. This bill: 1.Requires the distribution of the Proposition 1A conventional rail funds to be based on data in the National Transit AB 845 (MA) Page 2 Database of the Federal Transit Administration. 2.Directs the CTC to accept from each eligible bond fund recipient a priority list of projects that meet the criteria for receiving funds, including projects that create capacity for conventional intercity rail, commuter rail, or rail mass transit services that connect to high-speed rail service or funds a safety improvement. 3. Directs the CTC to require that matching funds are to be provided from non-state funds. 4.Provides that the required match for commuter and urban rail projects may begin with expenditures a bond fund recipient makes on a project after the CTC adopts the program through which the project is funded. COMMENTS: 1.Purpose . According to the author, this bill "confirms" the guidelines upon which the CTC allocation was made for the conventional rail fund, and ensures that the CTC implements the vision of the voters in Proposition 1A. 2.Is this bill needed ? Typically, the Legislature does not codify CTC guidelines. This is done for many reasons. For example, the allocation of the Proposition 1A funds is underway, and the existing guidelines are basically a restatement of the terms and conditions governing the allocation as specified in the proposition. The program is functioning. Once the funds are allocated, the guidelines and this bill become moot. In addition, the Legislature does not enact CTC guidelines because on occasion the underlying federal law changes and the guidelines may need to be amended. This would create delay in program implementation and getting projects out the door. Finally, the sponsor has informed the committee that, with the enactment of the budget, the bill is no longer necessary. Assembly Votes: Floor: 75-0 Appr: 17-0 Trans: 14-0 POSITIONS: (Communicated to the Committee before noon on Wednesday, AB 845 (MA) Page 3 June 29, 2011) SUPPORT: Bay Area Rapid Transit District (sponsor) OPPOSED: None received.