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.