BILL ANALYSIS Ó AB 1779 Page 1 Date of Hearing: May 9, 2012 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 1779 (Galgiani) - As Amended: April 19, 2012 Policy Committee: TransportationVote:11-0 Local Government 7-1 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill provides for the establishment of a joint powers agency (JPA) to administer intercity rail service in the San Joaquin Valley. Specifically, this bill: 1)Provides that the Secretary of Business, Transportation, and Housing, upon a determination that transferring responsibility for intercity rail service to a JPA would yield cost reductions, should authorize Caltrans to enter into an interagency transfer agreement. 2)States legislative intent that state funding, for an intercity rail corridor for which administrative responsibility has been transferred to a JPA, should be maintained at least at the current funding level for at least five years. 3)Establishes the San Joaquin Joint Powers Authority Board of up to 11 members, and defines the "San Joaquin Corridor" as covering the Los Angeles-Bakersfield-Fresno-Stockton-Sacramento-San Francisco Bay Area intercity passenger rail corridor. 4)Requires that the interagency agreement between Caltrans and the San Joaquin JPA be executed by December 31, 2013. 5)Prohibits, with respect to the San Joaquin Corridor, use of local resources to offset any reduction or redirection of state resources for intercity rail operations. FISCAL EFFECT AB 1779 Page 2 1)One-time special fund cost to Caltrans in the range of $150,000 to implement a transfer agreement with the JPA, including supporting the transition of Caltrans' equipment and facilities. Following implementation of the JPA, Caltrans would realize ongoing administrative savings of about $300,000. 2)Fulfilling legislative intent to maintain current funding state levels to the SJC for at least five years could create cost pressure if overall state funding for intercity rail were to be reduced during this time. COMMENTS 1)Background . Intercity passenger rail service is a component of the state's overall transportation system and operates between several regions of the state. Intercity services include three state-supported corridor routes and four Amtrak long-distance routes. The three in-state intercity routes were funded, planned and administered by Caltrans until July 1998, when the Capitol Corridor JPA assumed administration of the Auburn-Sacramento-Oakland-San Jose corridor. (The CCJPA was established through SB 457 (Kelley)/Chapter 263 of 1996.) The other two intercity rail passenger services, the Pacific Surfliner and the San Joaquin continue to be administered by Caltrans. 2)Purpose . This bill authorizes creation of a regionally-based JPA to assume administrative responsibility from Caltrans for the San Joaquin Corridor via an interagency transfer agreement. The JPA would be initially composed of not more than 11 members (representing public agencies in Sacramento, San Joaquin, Stanislaus, Merced, Madera, Fresno, Kings, Tulare, Kern, Contra Costa and Alameda Counties). The author contends that the CCJPA has successfully managed the Capitol Corridor. "In addition to more cost effective administration and operations, the CCJPA has shown that there are several other potential benefits to local authority AB 1779 Page 3 administration of intercity passenger service including: the ability to have a stronger voice in advocating for service improvements and expansions; local decision-making that is more responsive and adaptive to passenger issues; the ability to take better advantage of joint marketing and partnerships with local agencies; and more engagement by local communities to support the service." 3)Related Legislation . SB 1225 (Padilla), pending in Senate Appropriations, similarly authorizes Caltrans to transfer administration of the Pacific Surfliner corridor (San Diego-Los Angeles-San Luis Obispo) to a JPA. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081