BILL NUMBER: AB 1779 CHAPTERED
BILL TEXT
CHAPTER 801
FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2012
APPROVED BY GOVERNOR SEPTEMBER 29, 2012
PASSED THE SENATE AUGUST 29, 2012
PASSED THE ASSEMBLY AUGUST 30, 2012
AMENDED IN SENATE AUGUST 24, 2012
AMENDED IN SENATE AUGUST 21, 2012
AMENDED IN SENATE AUGUST 6, 2012
AMENDED IN SENATE JUNE 27, 2012
AMENDED IN ASSEMBLY MAY 25, 2012
AMENDED IN ASSEMBLY APRIL 19, 2012
AMENDED IN ASSEMBLY APRIL 17, 2012
AMENDED IN ASSEMBLY APRIL 9, 2012
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Galgiani
(Coauthors: Assembly Members Dickinson, Olsen, and Perea)
(Coauthors: Senators Cannella, Padilla, and Wolk)
FEBRUARY 21, 2012
An act to amend Sections 14031.8, 14070.2, 14070.4, and 14070.6
of, and to repeal and add Article 5.4 (commencing with Section 14074)
of Chapter 1 of Part 5 of Division 3 of Title 2 of, the Government
Code, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 1779, Galgiani. Intercity rail agreements.
Existing law authorizes the Department of Transportation to
contract with Amtrak for intercity rail passenger services and
provides funding for these services from the Public Transportation
Account. Existing law, until December 31, 1996, authorized the
department, subject to approval of the Secretary of Business,
Transportation and Housing, to enter into an interagency transfer
agreement under which a joint powers board assumes responsibility for
administering the state-funded intercity rail service in a
particular corridor. Existing law, with respect to a transferred
corridor, requires the board to demonstrate the ability to meet
performance standards established by the secretary.
This bill would authorize the department, with approval of the
secretary, to enter into interagency transfer agreements for
additional intercity rail corridors, to be entered into between June
30, 2014, and June 30, 2015. The bill would require the agreements to
cover the initial 3-year period after the transfer, and would
authorize subsequent extensions by mutual agreement. If agreements
are not entered into by that the expiration of that period, the bill
would require the secretary to report to the Governor and the
Legislature by June 30, 2016, as specified.
This bill would specifically authorize an additional interagency
transfer agreement to be entered into with respect to the San Joaquin
Corridor, as defined, if a joint powers authority and governing
board are created and organized. In that regard, the bill would
provide for the creation of the San Joaquin Corridor Joint Powers
Authority, to be governed by a board of not more than 11 members. The
bill would provide that the board shall be organized when at least 6
of the 11 agencies elect to appoint members. The bill would provide
for the authority to be created when the member agencies enter into a
joint powers agreement, as specified. The bill would provide for
future appointments of additional members if the service boundaries
of the San Joaquin Corridor are expanded.
Existing law requires the level of service to be funded by the
state pursuant to a transfer agreement to not be less than the
current number of intercity round trips operated in a corridor and
serving the same endpoints.
This bill would require the level of service funded by the state
to remain the same during the first 3 years following the effective
date of the transfer agreement, and would require the entity assuming
responsibility for a corridor to provide that level of service. The
bill would prohibit termination of feeder bus services except for
specified reasons.
Existing law provides for the allocation of state funds by the
secretary to a joint powers board under an interagency transfer
agreement based on the annual business plan for the intercity rail
corridor and subsequent appropriation of state funds. Existing law
states that the interagency transfer agreement may provide that any
additional funds required to operate the intercity rail service
during a fiscal year shall be provided by a joint powers board from
jurisdictions that receive service.
This bill, if local resources are made available for operating the
intercity rail service, would require a vote of the local agency
providing the resources, and would require the concurrence of the
joint powers board in that regard.
This bill would authorize the secretary to adopt new performance
standards for intercity rail services. The bill would require the San
Joaquin Joint Powers Authority to protect existing services and
facilities and seek to expand service, as specified.
Existing law authorizes the department and any entity that assumes
administrative responsibility for passenger rail services through an
interagency transfer agreement to contract with specified entities
for the use of tracks and other facilities and for the provision of
passenger rail services.
This bill would require a contractor under an agreement described
above to agree that its labor relations shall be governed by a
specified federal act relating to labor relations on railroads.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. This act shall be known and may be cited as the
Intercity Passenger Rail Act of 2012.
SEC. 2. (a) The Legislature finds and declares all of the
following:
(1) An intercity rail passenger system, linking major urban
centers and complemented by feeder bus services that provide access
to outlying areas and destinations, is an important element of the
state's transportation system, and shall remain a state-funded
program.
(2) The state has a continuing interest in the provision of
cost-effective intercity rail passenger services and has a
responsibility to coordinate intercity rail passenger services
statewide.
(3) Since 1976, the state has invested over one billion eight
hundred million dollars ($1,800,000,000) in capital improvements and
operating support for intercity rail passenger service and must
ensure the protection of that investment.
(4) Intercity rail service and ridership increases will result in
more jobs, improve air quality, and help promote sustainable
development.
(b) The Legislature, through the enactment of this act, intends
all of the following:
(1) The Secretary of Business, Transportation and Housing shall be
responsible for the overall planning, coordination, and budgeting of
the intercity passenger rail service.
(2) If the secretary determines that transferring responsibility
for intercity passenger rail service in a particular corridor or
corridors to a statutorily created joint powers agency would result
in administrative or operating cost reductions, the secretary may
authorize the Department of Transportation to enter into an
interagency transfer agreement to effect a transfer of those
administrative functions, consistent with this act.
(3) Any intercity rail corridor for which administrative
responsibility has been transferred to a joint powers board through
an interagency transfer agreement shall remain as a component of the
statewide system of intercity rail corridors.
(4) The public interest requires expansion of the state intercity
rail program in order to keep pace with the needs of an expanding
population.
(5) For not less than a three-year period following the effective
date of the interagency transfer agreement, the level of state
funding for intercity rail service in each corridor shall be
maintained at a level equal to at least the level of service funded
by the state in the corridor as of the effective date of the
interagency transfer agreement, thus providing fiscal stability that
will allow appropriate planning and operation of these services.
SEC. 3. Section 14031.8 of the Government Code is amended to read:
14031.8. (a) The Secretary of Business, Transportation and
Housing shall establish, through an annual budget process, the level
of state funding available for the operation of intercity passenger
rail service in each corridor.
(b) Where applicable, operating funds shall be allocated by the
secretary to the joint powers board in accordance with an interagency
transfer agreement that includes mutually agreed-upon rail services.
Funds for the administration and marketing of services, as
appropriate, shall also be transferred by the secretary to the joint
powers board, subject to the terms of the interagency transfer
agreement.
(c) The joint powers board or local or regional entities may
augment state-provided resources to expand intercity passenger rail
services, or to address funding shortfalls in achieving agreed-upon
performance standards. The joint powers board or local or regional
agencies may identify and secure new supplemental sources of funding
for the purpose of expanding or maintaining intercity rail passenger
service levels, which may include state and federal intercity rail
resources. Local resources may be available to offset any
redirection, elimination, reduction, or reclassification by the state
of state resources for operating intercity passenger rail services
identified in subdivision (b) only if the local resources are
dedicated by a vote of the local agency providing funds, with the
concurrence of the joint powers board.
(d) The department may provide any support services as may be
mutually agreed upon by the joint powers board and the department.
(e) Operating costs shall be controlled by dealing with, at a
minimum, the Amtrak cost allocation formula and the ability to
contract out to Amtrak or other rail operators as a part of federal
legislation dealing with Amtrak reauthorization.
(f) (1) Not later than June 30, 2014, the secretary shall
establish a set of uniform performance standards for all corridors
and operators to control cost and improve efficiency.
(2) To the extent necessary, as determined by the secretary,
performance standards may be modified not later than July 30, 2015,
or the effective date of the interagency transfer agreement,
whichever comes first.
(3) Feeder bus services that provide connections for intercity
rail passengers shall not be terminated unless the bus services fail
to meet the cost-effectiveness standard described in paragraph (3) of
subdivision (a) of Section 14035.2.
SEC. 4. Section 14070.2 of the Government Code is amended to read:
14070.2. (a) If authorized by the secretary, the department may,
through an interagency transfer agreement, transfer to a joint powers
board, and the board may assume, all responsibility for
administering intercity passenger rail service in the corridor,
including associated feeder bus service. Upon the date specified in
the agreement, the board shall succeed to the department's powers and
duties relative to that service, except that the department shall
retain responsibility for developing budget requests for the service,
consistent with the annual business plan as approved by the
secretary for the service, through the state budget process, which
shall be developed in consultation with the board, and for
coordinating service in the corridor with other intercity passenger
rail services in the state.
(b) An interagency transfer agreement may be executed on or after
June 30, 2014, but not later than June 30, 2015, subject to
negotiation and approval by the state and the board. The interagency
transfer agreement between the department and the board shall cover
the initial three-year period after the transfer, but may be extended
thereafter by mutual agreement. If an interagency agreement is not
entered into on or before June 30, 2015, the secretary shall provide
a report to the Governor and the Legislature on or before June 30,
2016, explaining why an acceptable agreement has not been developed,
with specific recommendations for developing an acceptable
interagency agreement.
(c) The secretary shall require the board to demonstrate the
ability to meet the performance standards established by the
secretary pursuant to subdivision (f) of Section 14031.8.
SEC. 5. Section 14070.4 of the Government Code is amended to read:
14070.4. (a) An interagency transfer agreement between the
department and a joint powers board, when approved by the secretary,
shall do all of the following:
(1) Specify the date and conditions for the transfer of
responsibilities and identify the annual level of funding for the
initial three years following the transfer and ensure that the level
of funding is consistent with and sufficient for the planned service
improvements within the corridor.
(2) Identify, for the initial year and subsequent years, the funds
to be transferred to the board including state operating subsidies
made available for intercity rail services in the corridor, and funds
currently used by the department for administration and marketing of
the corridor, with the amounts adjusted annually for inflation and
in accordance with the business plan.
(3) Specify the level of service to be provided, the respective
responsibilities of the board and the department, the methods that
the department will use to assure the coordination of services with
other rail passenger and feeder bus services in the state, and the
methods that the department will use for the annual review of the
business plan and annual proposals on funding and appropriations.
(4) Describe the terms of use by the board of car and locomotive
train sets and other equipment and property owned by the department
and required for the intercity service in the corridor, including,
but not limited to, the number of units to be provided, liability
coverage, maintenance and warranty responsibilities, and
indemnification issues.
(5) Describe auditing responsibilities and process requirements,
reimbursement and billing procedures, the responsibility for funding
shortfalls, if any, during the course of each fiscal year, an
operating contract oversight review process, performance standards
and reporting procedures, the level of rail infrastructure
maintenance, and other relevant monitoring procedures.
(b) Use of the annual state funding allocation, as set forth in
the interagency transfer agreement, shall be described in an annual
business plan submitted by the board to the secretary for review and
recommendation by April 1 of each year. The business plan, when
approved by the secretary, shall be deemed accepted by the state. The
budget proposal developed by the department for the subsequent year
shall be based upon the business plan approved by the secretary. The
business plan shall be consistent with the interagency agreement and
shall include a report on the recent as well as historical
performance of the corridor service, an overall operating plan
including proposed service enhancements to increase ridership and
provide for increased traveler demands in the corridor for the
upcoming year, short-term and long-term capital improvement programs,
funding requirements for the upcoming fiscal year, and an action
plan with specific performance goals and objectives. The business
plan shall document service improvements to provide the planned level
of service, inclusion of operating plans to serve peak period work
trips, and consideration of other service expansions and
enhancements. The initial business plan shall be consistent with the
immediately previous plans developed by the department pursuant to
Section 14036 and the January 2014 business plan developed by the
High-Speed Rail Authority pursuant to Section 185033 of the Public
Utilities Code. Subsequent business plans shall be consistent with
the immediately previous plans developed by the department and the
authority. The business plan shall clearly delineate how funding and
accounting for state-sponsored intercity rail passenger services
shall be separate from locally sponsored services in the corridor.
Proposals to expand or modify passenger services shall be accompanied
by the identification of all associated costs and ridership
projections. The business plan shall establish, among other things:
fares, operating strategies, capital improvements needed, and
marketing and operational strategies designed to meet performance
standards established in the interagency transfer agreement.
(c) Based on the annual business plan and the subsequent
appropriation by the Legislature, the secretary shall allocate state
funds on an annual basis to the board. As provided in the interagency
agreement, any additional funds that are needed to operate the
passenger rail service during the fiscal year shall be provided by
the board from jurisdictions that receive service. In addition, the
board may use any cost savings or farebox revenues to provide service
improvements related to intercity service. In any event, the board
shall report the fiscal results of the previous year's operations as
part of the annual business plan.
(d) The level of service funded by the state during the first
three years following the effective date of the transfer agreement
shall in no case be less than the number of intercity round trips
operated in a corridor and serving the end points served by the
intercity rail corridor as of the effective date of the interagency
transfer agreement. Subject to Section 14035.2, the level of service
funded by the state shall also include feeder bus service with
substantially the same number of route miles as the current feeder
system, to be operated in conjunction with the trains. For that same
three-year period, the board shall continue to provide at least the
same level of intercity rail and feeder bus services as were in
operation on the effective date of the interagency transfer
agreement, except that the interagency transfer agreement shall not
prohibit the board from reducing the number of feeder bus route miles
if the board determines that a feeder bus route is not cost
effective as provided in Section 14035.2.
(e) Nothing in this article shall be construed to preclude
expansion of state-approved intercity rail service.
(f) Local resources may be available to offset any redirection,
elimination, reduction, or reclassification by the state of state
resources for operating intercity rail services identified in
subdivision (b) only if the local resources are dedicated by a vote
of the local agency providing the funds, with the concurrence of the
board.
SEC. 6. Section 14070.6 of the Government Code is amended to read:
14070.6. The department and any entity that assumes
administrative responsibility for intercity passenger rail services
through an interagency transfer agreement, may, through a competitive
solicitation process, contract with the National Railroad Passenger
Corporation (Amtrak) or with organizations not precluded by state or
federal law to provide intercity passenger rail services, and may
contract with rail corporations and other rail operators for the use
of tracks and other facilities and for the provision of intercity
passenger services on terms and conditions as the parties may agree.
The department is deemed to be a third-party beneficiary of the
contract, and the contract shall not contain any provision or
condition that would negatively impact on or conflict with any other
contracts the department has regarding intercity passenger rail
services. Any entity that succeeds the department as sponsor of
state-supported intercity passenger rail services through an
interagency transfer agreement is deemed an agency of the state for
all purposes related to intercity passenger rail services, including
Section 5311 of Title 49 of the United States Code. If the intercity
passenger rail service is operated by a contractor, the contractor
shall, as a condition of entering into an operating agreement with
the entity, agree that its labor relations shall be governed by the
federal Railway Labor Act (45 U.S.C. Sec. 151 et seq.).
SEC. 7. Article 5.4 (commencing with Section 14074) of Chapter 1
of Part 5 of Division 3 of Title 2 of the Government Code is
repealed.
SEC. 8. Article 5.4 (commencing with Section 14074) is added to
Chapter 1 of Part 5 of Division 3 of Title 2 of the Government Code,
to read:
Article 5.4. San Joaquin Corridor
14074. As used in this article, the following terms have the
following meanings:
(a) "Authority" or "San Joaquin Joint Powers Authority" means a
joint exercise of powers agency formed under Chapter 5 (commencing
with Section 6500) of Division 7 of Title 1 for purposes of assuming
administrative responsibility for the San Joaquin Corridor under an
interagency transfer agreement pursuant to Article 5 (commencing with
Section 14070).
(b) "Board" means the governing board of the San Joaquin Joint
Powers Authority established under Section 14074.2.
(c) "San Joaquin Corridor" or "corridor" means the Los
Angeles-Bakersfield-Fresno-Stockton-Sacramento-Oakland intercity
passenger rail corridor.
14074.2. (a) There shall be created the San Joaquin Joint Powers
Authority Board, subject to being organized pursuant to the
provisions of this article. Except as otherwise provided in
subdivisions (b) and (c), the board shall be composed of not more
than 11 members, as follows:
(1) One member of the board of directors of the Sacramento
Regional Transit District, appointed by that board.
(2) One member of the board of directors of the San Joaquin
Regional Rail Commission, appointed by that board, who shall be a
resident of San Joaquin County.
(3) One member of the board of directors of the Stanislaus Council
of Governments, appointed by that board.
(4) One member of the board of directors of the Merced County
Association of Governments, appointed by that board.
(5) One member of the board of directors of the Madera County
Transportation Commission, appointed by that board.
(6) One member of the board of directors of the Fresno Council of
Governments, appointed by that board.
(7) One member of the board of directors of the Kings County
Association of Governments, appointed by that board.
(8) One member of the board of directors of the Tulare County
Association of Governments, appointed by that board.
(9) One member of the board of directors of the Kern Council of
Governments, appointed by that board.
(10) One member of the board of directors of a regional
transportation agency or rail transit operator that serves Contra
Costa County, appointed by the Contra Costa Transportation Authority,
who shall be a resident of the county.
(11) One member of a regional transportation agency or rail
transit operator that serves Alameda County, appointed by the Board
of Supervisors, who shall be a resident of the county.
(b) The board shall be organized when at least six of the agencies
described in paragraphs (1) to (11), inclusive, of subdivision (a)
elect to appoint a member to serve on the board prior to December 31,
2013. Once organized, those agencies described in paragraphs (1) to
(11), inclusive, of subdivision (a) that have not yet appointed
members to serve on the board may elect to appoint a member to serve
and be represented on the board at any time thereafter.
(c) If the rail service boundaries of the San Joaquin Corridor are
extended, an additional member from each additional county receiving
rail service may be added to the board pursuant to Section 14074.6.
(d) The authority shall protect existing services and facilities
and seek to expand service as warranted by ridership and available
revenue.
14074.4. The authority shall be created only if the agencies that
would be represented on the board enter into a joint exercise of
powers agreement to form the authority.
14074.6. The board shall make its decisions in accordance with
the votes of its members, with a majority vote required for all
matters with the exception of the approval of the business plan,
revisions to that plan, and the addition of new members pursuant to
subdivision (c) of Section 14074.2, which shall require a two-thirds
vote of the members.
14074.8. The Steering Committee of the Caltrans Rail Task Force
shall remain in existence. If a joint powers authority is formed
pursuant to this article and an interagency transfer agreement is
executed pursuant to subdivision (b) of Section 14070.2, the Steering
Committee of the Caltrans Rail Task Force shall become the Steering
Committee of the San Joaquin Joint Powers Authority for the purpose
of advising the joint powers board.