BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1164
                                                                  Page  1

          Date of Hearing:   April 25, 2011

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                    AB 1164 (Gordon) - As Amended:  April 7, 2011

           SUBJECT  :  California High-Speed Rail Authority:  members:  
          Senate confirmation

           SUMMARY  :  Requires Senate confirmation of the five members of 
          the High-Speed Rail Authority (Authority) who are appointed by 
          the Governor.  

           EXISTING LAW  :  

          1)Enacts the Safe, Reliable High-Speed Passenger Train Bond Act 
            for the 21st Century (High-Speed Rail Bond Act).  The 
            High-Speed Rail Bond Act, approved as Proposition 1A 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.  

          2)Establishes the Authority and charges it with the planning, 
            designing, constructing, operating, and maintaining a 
            state-of-the-art high-speed train system for California.  

          3)Prescribes the membership of the Authority as follows:  five 
            members appointed by the Governor, two members appointed by 
            the Senate Rules Committee, and two members appointed by the 
            Speaker of the Assembly.  The appointments are not subject to 
            Senate confirmation.  

           FISCAL EFFECT  :  Unknown  

           COMMENTS  :  The Authority was created by SB 1420 (Kopp) Chapter 
          796, Statutes of 1996, which vested it with the responsibility 
          to direct the development and implementation of intercity 
          high-speed rail service.  SB 1420 directed the Authority to 
          prepare a plan for the construction and operation of a 
          high-speed train network for the state and to submit that plan 
          to the Legislature and the Governor, or to the voters of the 
          state, for approval.  That bill prescribed various powers of the 
          Authority relative to planning and contracting for the 
          construction, financing, and operation of a high-speed rail 








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          system.  

          In 1996, the Authority's chief responsibility was to plan for a 
          high-speed train network.  Today, the Authority's chief 
          responsibility is to implement the plan.  The current cost 
          estimate for the initial phase of the 800-mile network is $43 
          billion.  To complete the project, the Authority will initially 
          oversee consultant contracts amounting to hundreds of millions 
          of dollars, with billions of dollars in right of way acquisition 
          and construction contracts to follow.  The ramifications of the 
          Authority's decisions will reverberate throughout the state's 
          transportation programs, the state General Fund and even the 
          federal rail program for years to come.  

          Despite the enormity of their responsibilities, however, 
          existing law prescribes that the membership of the Authority 
          meet one criterion only-geographical diversity.  Members of the 
          Authority are not required, for example, to be elected officials 
          (and, therefore, accountable to voters) nor have any particular 
          expertise or credentials (and, therefore, accountable to, for 
          example, a code of conduct or professional standards).  
          Furthermore, because members serve prescribed terms, individual 
          members are not necessarily accountable to their appointing 
          power, which may or may not still be in office.  

          Subjecting gubernatorial appointees to Senate confirmation is an 
          established means of creating an appropriate balance of power 
          and accountability.  Other state boards and commissions (for 
          example, the Energy Commission, the California State Lottery 
          Commission, the California Transportation Commission, the 
          Workers' Compensation Appeals Board, etc.) have legislative 
          appointees along with gubernatorial appointees whose appointment 
          requires confirmation by the Senate.  This model is frequently 
          used at the federal level as well.  

          This bill does not require the existing members to vacate their 
          current appointments.  The bill is prospective and relates only 
          to future gubernatorial appointees.  

          Given the magnitude of the high-speed rail project, AB 1164 is 
          an appropriate step toward ensuring membership on the Authority 
          is fair and balanced.  
           
            Previous legislation  :  SB 455 (Lowenthal) of 2009 included 
          provisions identical to this bill.  That bill passed the 








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          Legislature but was vetoed by Governor Schwarzenegger based on 
          the following veto message:  "Current law provides that the five 
          members of the High-Speed Rail Board appointed by the Governor 
          are not subject to Senate confirmation.  I see no reason to 
          change this.  I might be persuaded to change my mind if the 
          Legislature were to allow the Executive Branch to confirm its 
          four appointments to the Board."  

           Related legislation:   SB 517 (Lowenthal) reconstitutes the 
          Authority membership.  SB 517 will be heard in Senate 
          Transportation and Housing Committee on April 26, 2011.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file
           
          Opposition 
           
          Californians for High Speed Rail
           

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