BILL NUMBER: SB 985	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator La Malfa
   (Principal coauthor: Senator Dutton)
   (Principal coauthors: Assembly Members Grove, Harkey, and Nielsen)

   (Coauthors: Senators Anderson, Blakeslee, Emmerson, Gaines,
Harman, Huff, Strickland, Walters, and Wyland)
   (Coauthors: Assembly Members Achadjian, Bill Berryhill, Conway,
Cook, Donnelly, Beth Gaines, Garrick, Hagman, Jeffries, Jones,
Knight, Logue, Mansoor, Morrell, Norby, Olsen, Valadao, and Wagner)

                        JANUARY 30, 2012

   An act to add Sections 2704.045 and 2704.096 to the Streets and
Highways Code, relating to transportation bonds, and declaring the
urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 985, as introduced, La Malfa. Transportation bonds.
   Article XVI of the California Constitution requires a general
obligation bond act to specify the single object or work to be funded
by the bonds, and further requires a bond act to be approved by a
2/3 vote of each house of the Legislature and by a majority of the
voters. Article XVI authorizes the Legislature, at any time after the
approval of a general obligation bond act by the voters, to reduce
the amount of the indebtedness authorized by the act to an amount not
less than the amount contracted at the time of the reduction or to
repeal the act if no debt has been contracted. Existing law, pursuant
to the Safe, Reliable High-Speed Passenger Train Bond Act for the
21st Century, approved by the voters as Proposition 1A at the
November 4, 2008, statewide general election, provides for the
issuance of $9.95 billion in general obligation bonds for high-speed
rail and related rail purposes. Existing law creates the High-Speed
Rail Authority with specified powers and duties related to the
development and implementation of a high-speed train system.
   This bill would provide that no further bonds shall be sold for
high-speed rail and related rail purposes pursuant to the Safe,
Reliable High-Speed Passenger Train Bond Act for the 21st Century.
The bill would amend the bond act to authorize redirection of the net
proceeds received from outstanding bonds issued and sold prior to
the effective date of this act, upon appropriation by the
Legislature, from those high-speed rail purposes to retiring the debt
incurred from the issuance and sale of those outstanding bonds.
   This bill would provide that, pursuant to Article XVI of the
California Constitution, these provisions shall become effective only
upon approval by the voters at the next statewide general election.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 2704.045 is added to the Streets and Highways
Code, to read:
   2704.045.  Notwithstanding Section 2704.04, it is the intent of
the Legislature and the people of California that no further bonds
shall be issued and sold for purposes of Sections 2704.06 and
2704.095.
  SEC. 2.  Section 2704.096 is added to the Streets and Highways
Code, to read:
   2704.096.  (a) Notwithstanding any other provision of this
chapter, no further bonds shall be issued and sold for purposes of
Sections 2704.06 and 2704.095 on and after the effective date of the
act adding this section.
   (b) Notwithstanding any other provision of this chapter, the net
proceeds received from outstanding bonds issued and sold pursuant to
Sections 2704.06 and 2704.095 prior to the effective date of the act
adding this section may, upon appropriation by the Legislature, be
redirected from those high-speed rail purposes for use in retiring
the debt incurred from the issuance and sale of those outstanding
bonds.
  SEC. 3.  Sections 1 and 2 of this act would modify the single
object or work of a general obligation bond act previously submitted
to the voters by the Legislature pursuant to Section 1 of Article XVI
of the California Constitution, and subsequently approved by the
voters as Proposition 1A at the November 4, 2008, statewide general
election. Accordingly, Sections 1 and 2 of this act shall become
effective only upon approval by the voters. The Secretary of State
shall submit Sections 1 and 2 of this act to the voters on the ballot
of the next statewide general election.
  SEC. 4.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to make necessary amendments to the Safe, Reliable
High-Speed Passenger Train Bond Act for the 21st Century as quickly
as possible to prevent any further funding of a high-speed passenger
train system that differs in both cost and substance from the project
approved by voters in 2008, it is necessary that this act take
effect immediately.