BILL NUMBER: SB 517 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 17, 2011
AMENDED IN SENATE APRIL 25, 2011
INTRODUCED BY Senator Lowenthal
( Principal coauthor: Senator
Steinberg )
(Coauthor: Senator DeSaulnier)
FEBRUARY 17, 2011
An act to amend Section 13975 of, and to add Section 13976.1 to,
the Government Code, and to amend Sections 185020 and 185024 of the
Public Utilities Code, relating to high-speed rail.
LEGISLATIVE COUNSEL'S DIGEST
SB 517, as amended, Lowenthal. High-Speed Rail Authority.
Existing law creates the High-Speed Rail Authority in state
government with specified powers and duties relative to development
and implementation of a high-speed train system. The authority is
composed of 9 members, including 5 members appointed by the Governor.
Existing law creates the Business, Transportation and Housing
Agency, which consists of various state agencies, including the
Department of Transportation.
This bill would place the High-Speed Rail Authority within the
Business, Transportation and Housing Agency. The bill would provide
for the Secretary of Business, Transportation and Housing to serve on
the authority as a nonvoting, ex officio member. The bill would
require the secretary to propose an annual budget for the authority
upon consultation with the authority. The bill would require the
members of the authority appointed by the Governor to be appointed
with the advice and consent of the Senate. The bill would provide for
the members that are appointed to have specified background or
experience, as specified.
Existing law provides that the terms of authority members expire
every 4 years on December 31.
This bill would vacate the membership of the authority and provide
for the appointment or reappointment of members as of January 1,
2012, for staggered terms, as specified. This bill would thereafter
provide that the terms expire every 4 years on December 31.
Existing law provides for the authority to appoint an executive
director to serve at the pleasure of the authority and who is exempt
from civil service.
This bill would provide that the executive director is subject to
appointment with the advice and consent of the Senate. The bill would
provide that an employment agreement for the executive director
shall be agreed to but not executed until Senate confirmation.
This bill would enact various conflict-of-interest provisions
applicable to members of the authority and its staff, as specified,
and would prohibit a person from serving on the authority in certain
circumstances.
This bill would enact other related provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 13975 of the Government Code is amended to
read:
13975. The Business and Transportation Agency in state government
is hereby renamed the Business, Transportation and Housing Agency.
The agency consists of the Department of Alcoholic Beverage Control,
the Department of the California Highway Patrol, the Department of
Corporations, the Department of Housing and Community Development,
the Department of Motor Vehicles, the Department of Real Estate, the
Department of Transportation, the Department of Financial
Institutions, the Department of Managed Health Care, the High-Speed
Rail Authority, and the Board of Pilot Commissioners for the Bays of
San Francisco, San Pablo, and Suisun; and the California Housing
Finance Agency is also located within the Business, Transportation
and Housing Agency, as specified in Division 31 (commencing with
Section 50000) of the Health and Safety Code.
SEC. 2. Section 13976.1 is added to the Government Code, to read:
13976.1. The Secretary of Business, Transportation and Housing
shall propose an annual budget for the High-Speed Rail Authority upon
consultation with the authority.
SEC. 3. Section 185020 of the Public Utilities Code is amended to
read:
185020. (a) There is in the Business, Transportation and Housing
Agency the High-Speed Rail Authority.
(b) (1) The authority is composed of 10 members as follows:
(A) Five members appointed by the Governor, with the advice and
consent of the Senate. Of the members appointed by the Governor, one
shall be an engineer with experience in the planning and design of
large transportation infrastructure projects; one shall be an
economist with background and experience in the field of
transportation economics; one shall have background and experience in
the field of environmental protection or the study of ecosystems;
one shall have expertise in project financing; and one shall be an
attorney with experience in dealing with the legal issues associated
with procurement strategies and construction issues associated with
large , one-of-a-kind infrastructure projects.
(B) Two members appointed by the Senate Committee on Rules, one of
whom shall represent organized labor.
(C) Two members appointed by the Speaker of the Assembly, one of
whom shall represent organized labor.
(D) The Secretary of Business, Transportation and Housing, who
shall be a nonvoting, ex officio member.
(2) For the purposes of making appointments to the authority, the
Governor, the Senate Committee on Rules, and the Speaker of the
Assembly shall take into consideration geographical diversity to
ensure that all regions of the state are adequately represented.
(c) Except as provided in subdivision (d), and until their
successors are appointed, members of the authority shall hold office
for terms of four years. A vacancy shall be filled by the appointing
power making the original appointment, by appointing a member to
serve the remainder of the term.
(d) (1) On January 1, 2012, the terms of all persons who are then
members of the authority shall expire, but those members may continue
to serve until they are reappointed or until their successors are
appointed. Appointing powers may designate appointees to fill the
positions to be vacated on January 1, 2012, prior to that date, and
the Senate may act to confirm appointees of the Governor prior to
that date. In order to provide for evenly staggered terms, persons
appointed or reappointed to the authority on or after January 1,
2012, shall be appointed to initial terms to expire as follows:
(A) Of the five persons appointed by the Governor, one shall be
appointed to a term which expires on December 31, 2012, one shall be
appointed to a term which expires on December 31, 2013, one shall be
appointed to a term which expires on December 31, 2014, and two shall
be appointed to terms which expire on December 31, 2015.
(B) Of the two persons appointed by the Senate Committee on Rules,
one shall be appointed to a term which expires on December 31, 2012,
and one shall be appointed to a term which expires on December 31,
2014.
(C) Of the two persons appointed by the Speaker of the Assembly,
one shall be appointed to a term which expires on December 31, 2013,
and one shall be appointed to a term which expires on December 31,
2015.
(2) Following expiration of each of the initial terms provided for
in this subdivision, the term shall expire every four years
thereafter on December 31.
(e) Members of the authority are subject to the Political Reform
Act of 1974 (Title 9 (commencing with Section 81000)).
(f) From among its members, the authority shall elect a
chairperson, who shall preside at all meetings of the authority, and
a vice chairperson to preside in the absence of the chairperson. The
chairperson shall serve a term of one year.
(g) Five voting members of the authority constitute a quorum for
taking any action by the authority.
(h) (1) The members of the authority shall have an affirmative
duty to carry out the terms and conditions of the Safe, Reliable
High-Speed Passenger Train Bond Act for the 21st Century (Chapter 20
(commencing with Section 2704) of Division 3 of the Streets and
Highways Code).
(2) While serving on the authority, the members shall exercise
their independent judgment as officers of the state on behalf of the
interests of the entire state in furthering the purposes of this
division.
(3) No person shall be a member of the authority if the person
holds any other elected or appointed public office, except as
otherwise provided in subparagraph (A) or (C) of paragraph (1) of
subdivision (a). No person shall be a member of the authority if the
person has, during the two years prior to appointment as a member,
received any substantial portion of his or her income directly or
indirectly from any firm that is under contract with the authority at
the time of appointment or that supplies or manufactures rolling
stock or other equipment particular to, or essentially particular to,
construction and implementation of a high-speed rail system.
(4) A member of the authority shall not be employed by any
contractor or supplier of the authority or any firm that supplies or
manufactures rolling stock or other equipment particular to, or
essentially particular to, construction and implementation of a
high-speed rail system within two years after he or she ceases to be
a member of the authority.
(5) A member of the authority shall not participate in decisions
of, formulating recommendations of, or rendering advice to the
authority if the member, his or her spouse, minor child, or partner,
to the best of the member's knowledge, has had a direct or indirect
financial interest in the matter that is the subject of the decision,
recommendations, or advice within two years of his or her
appointment.
SEC. 4. Section 185024 of the Public Utilities Code is amended to
read:
185024. (a) The authority shall appoint an executive director,
exempt from civil service, who shall serve at the pleasure of the
authority, to administer the affairs of the authority as directed by
the authority. The executive director shall be appointed with the
advice and consent of the Senate.
(b) For purposes of managing and administering the ongoing work of
the authority in implementing the high-speed train project, the
Governor, upon the recommendation of the executive director, may
appoint up to six additional individuals, exempt from civil service,
who shall serve at the pleasure of the executive director. Pursuant
to this subdivision, the Governor may appoint persons only for the
following positions:
(1) Chief program manager.
(2) Up to three regional directors.
(3) Chief financial officer.
(4) Director of risk management and project controls.
(c) The compensation of the executive director and the additional
persons authorized by subdivision (b) shall be established by the
authority, and approved by the Department of Personnel
Administration, in an amount that is reasonably necessary, in the
discretion of the authority, to attract and hold a person of superior
qualifications. The authority shall cause to be conducted, through
the use of independent outside advisers, a salary survey to determine
the compensation for the positions under this subdivision. The
Department of Personnel Administration may, in its discretion, accept
a previously completed salary survey that meets the requirements of
this subdivision, and shall review the methodology used in the
survey. The salary survey shall consider both of the following:
(1) Other state, regional, and local transportation agencies that
are most comparable to the authority and its responsibilities.
(2) Other relevant labor pools.
The compensation set by the authority shall not exceed the highest
comparable compensation for a position of that type, as determined
by the salary survey. Based on the salary survey, these positions
shall be paid a salary established by the authority and approved by
the Department of Personnel Administration.
(d) The employment agreement of the executive director may be
agreed to by the authority but shall not be executed until the
appointment is confirmed by the Senate. With respect to the incumbent
executive director as of the date the act amending this section in
the 2011-12 Regular Session of the Legislature becomes operative, an
extension or modification of the employment agreement pertaining to
that person shall not be entered into by the authority unless the
appointment of that person is submitted to and confirmed by the
Senate.
(e) The executive director may, as authorized by the authority,
appoint necessary staff to carry out the provisions of this part.
(f) No person shall be an employee or contract employee of the
authority if the person has, during the two years prior to
appointment as an employee or contract employee, received any
substantial portion of his or her income directly or indirectly from
any firm that is under contract with the authority at the time of
appointment or that supplies or manufactures rolling stock or other
equipment particular to, or essentially particular to, construction
and implementation of a high-speed rail system.
(g) An employee of the authority shall not participate in
decisions of, formulating recommendations of, or rendering advice to
the authority if the employee, his or her spouse, minor child, or
partner, to the best of the employee's knowledge, has had a direct or
indirect financial interest in the matter that is the subject of the
decision, recommendations, or advice within two years of his or her
appointment.