BILL NUMBER: SB 325 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 21, 2011
INTRODUCED BY Senator Rubio
FEBRUARY 14, 2011
An act to add Title 12.5 (commencing with Section 93300) to the
Government Code, relating to railroads.
LEGISLATIVE COUNSEL'S DIGEST
SB 325, as amended, Rubio. Central California Railroad Authority.
Existing law authorizes the creation of railroad authorities in
various parts of the state.
This bill would state the intent of the Legislature
relative to the creation of enact the Central
California Railroad Authority Act to create the Central
California Railroad Authority as an alternative for ensuring
continuation of short-line railroad operations
service in the Counties of Kern, Kings, Tulare,
and Fresno. The bill would require the authority to be governed
by a board of directors who would be required to be appointed by the
regional transportation planning agencies of the Counties of Kern,
Kings, Tulare, and Fresno, thereby imposing a state-mandated local
program. The bill would require the authority to conduct its first
meeting not later than 120 days after abandonment or discontinuance
of service on, or the bankruptcy or sale of, the San Joaquin Valley
Railroad line. The bill would authorize the authority to acquire and
operate railroads or select a franchisee to operate a rail
transportation system, to prepare a plan for acquisition and
operation of specified railroad lines, and establish criteria for the
award of a franchise for the acquisition, financing, and operation
of the railroad system. The bill would further authorize the
authority to issue revenue bonds pursuant to the Revenue Bond Law of
1941. The bill would provide that the state is not liable for any
contract, debt, or obligation of the authority. The bill
would also state the intent of the Legislature in enacting the
authority.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Title 12.5 (commencing with Section 93300) is added to
the Government Code, to read:
TITLE 12.5. CENTRAL CALIFORNIA RAILROAD AUTHORITY
CHAPTER 1. GENERAL PROVISIONS
93300. This title shall be known, and may be cited, as the
Central California Railroad Authority Act.
93301. The Legislature finds and declares all of the following:
(a) It is the intent of the Legislature, in enacting this title,
to provide an alternative for ensuring continuation of
railroad service if the Surface Transportation Board
authorizes the abandonment or discontinuance of service
on, or in the event of bankruptcy or sale of, or
sale of, the existing short-line railroad operations
the San Joaquin Valley Railroad line in the Counties of Kern,
Kings, Tulare, and Fresno.
(b) It is further the intent of the Legislature
to provide a means to consider and, if justified, to pursue economic
development opportunities and projects related to rail service
on the affected short lines described in subdivision (a)
along railroad lines in participating counties .
(c) It is further the intent of the Legislature
that enactment of this title not provide a justification for the
Surface Transportation Board to grant a petition for abandonment or
discontinuance of service on the affected short lines.
(d) It is further the intent of the Legislature
that the coverage of this title authority
be expanded to include short-line railroad operations
in the Counties of Madera, Merced, Stanislaus, and San
Joaquin if that becomes feasible those
counties request to be included at a future date.
(e) It is the intent of the Legislature that the authority be
administered through a joint powers agreement among the regional
transportation planning agencies in each of the named counties.
93302. The Legislature finds and declares that creation
of the Central California Railroad Authority and the retention of
maintaining a railroad service through
central California will provide economic and other
related benefits, as follows:
(a) Continuation of short-line railroad service in affected
counties.
(b) The opportunity to explore expanded freight service operations
between the Port of Oakland and the affected counties.
(c) The reduced reliance on motor vehicles and the benefits that
result from use of alternative transportation means.
(d) Reduced traffic congestion on and deterioration of State
Highway Routes 5 and 99.
(e) The provision of convenient and attractive alternative
transportation options for shippers in central California and
elsewhere.
93303. It is the
intent of the Legislature to enact legislation that would create the
Central California Railroad Authority. It is also the intent of the
Legislature that the authority, when created, shall be a local agency
for purposes of the Disaster Assistance Act (Chapter 7.5 (commencing
with Section 8680) of Division 1 of Title 2).
benefits and do all of the following:
(a) Ensure continuing short-line freight railroad service between
Kern County and Fresno County.
(b) Enable opportunities for the improvement of short-line rail
service, including passenger service connecting to high-speed rail
stations, extending from Kern County to the Port of Oakland.
(c) Reduce reliance on motor vehicles and encourage the use of
rail service as an alternative transportation means.
(d) Reduce traffic congestion on and deterioration of State
Highway Routes 5 and 99.
(e) Provide convenient and attractive short-line transportation
service for shippers through central California.
93303. As used in this title, "authority" means the Central
California Railroad Authority.
93304. The authority is a local agency for purposes of the
Disaster Assistance Act (Chapter 7.5 (commencing with Section 8680)
of Division 1 of Title 2).
CHAPTER 2. CREATION OF THE CENTRAL CALIFORNIA
RAILROAD AUTHORITY
93307. (a) The Central California Railroad Authority is hereby
created, having a service area comprised of the Counties of Kern,
Kings, Tulare, and Fresno, to provide rail passenger and freight
service within those counties.
(b) The Counties of Madera, Merced, Stanislaus, and San Joaquin
may elect to join the authority and, if that election is made, the
authority is expanded to include those counties.
93308. (a) The authority shall be governed by a board of
directors, composed of two persons appointed by each of the regional
transportation planning agencies of the Counties of Kern, Kings,
Tulare, and Fresno. If the Counties of Madera, Merced, Stanislaus, or
San Joaquin elect to join the authority, the regional transportation
planning agencies of the counties so joining shall appoint two
persons to the board of directors.
(b) All directors, except the ex officio director, shall serve for
terms of two years and until their successors have qualified.
(c) Notwithstanding any other provision of law that precludes the
simultaneous holding of incompatible offices, a local government
officer may be appointed and may serve as a member of the authority's
board of directors if the person also meets the other applicable
qualifications of this title.
93309. The authority shall conduct its first meeting no later
than 120 days after abandonment or discontinuance of service on any
railroad line specified in Section 93301.
CHAPTER 3. POWERS AND DUTIES OF THE AUTHORITY
93312. The authority has all of the following powers:
(a) To acquire, own, operate, and lease real and personal property
reasonably related to the operation and maintenance of railroads.
(b) To issue revenue bonds pursuant to Section 93316 for any
purpose of the authority.
(c) To acquire property by purchase, lease, gift, or through
exercise of the power of eminent domain.
(d) To operate railroads, including those outside its boundaries
in order to connect its lines with the lines of another railroad
corporation.
(e) To accept grants or loans from state or federal agencies.
(f) To select a franchisee, which may be a public or private
entity, to acquire or operate a rail transportation system within the
area of the authority's jurisdiction.
93313. The authority may acquire, own, lease, and operate
railroad lines and equipment, including, but not limited to, real and
personal property, tracks, rights-of-way, equipment, and facilities.
93314. The authority may prepare a plan for the acquisition and
operation of any railroad line specified in Section 93301, at no
expense to the state, to achieve the purposes set forth in Section
93302.
93315. After preparation of a plan pursuant to Section 93314, the
authority may do any of the following:
(a) Conduct engineering and other studies related to the
acquisition of any railroad line.
(b) Evaluate alternative plans from the private sector to acquire,
finance, and operate a railroad system in a manner which achieves
the purposes specified in Section 93302.
(c) Establish criteria for the award of a franchise.
(d) Select a franchisee to acquire, finance, and operate the
railroad system.
(e) Accept grants, gifts, fees, or allocations from other
entities, including private and public sources.
(f) Employ an executive officer, other staff, and consultants
deemed appropriate for support of the activities of the authority.
93316. (a) The authority may issue bonds, payable from revenues
of any facility or enterprise to be acquired or constructed by the
authority, in the manner provided by the Revenue Bond Law of 1941
(Chapter 6 (commencing with Section 54300) of Part 1 of Division 2 of
Title 5).
However, an election is not required in the case of revenue bonds
authorized by the board of directors for railroad facilities, and any
addition, extension, and improvement thereto, and all other
facilities authorized to be acquired, constructed, or completed by
the authority under this title.
(b) The authority is a local agency within the meaning of the
Revenue Bond Law of 1941. The term "enterprise," as used in that law,
includes railroad facilities, and any addition, extension, and
improvement thereto, and all other facilities authorized to be
acquired, constructed, or completed by the authority under this
title.
93317. The state is not liable for any contracts, debts, or other
obligations of the authority.
SEC. 2. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district are the result of a program for which
legislative authority was requested by that local agency or school
district, within the meaning of Section 17556 of the Government Code
and Section 6 of Article XIII B of the California Constitution.