BILL NUMBER: SB 1029	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JULY 3, 2012

INTRODUCED BY   Committee on Budget and Fiscal Review

                        FEBRUARY 6, 2012

   An act  relating to the Budget Act of 2012.  
to amend the Budget Act of 2012 by adding Items 2660-104-6043, 2660-
  304-6043, 2665-104-6043, 2665-304-0890, 2665-304-6043,
2665-305-0890, 2665-305-6043, 2665-306-0890, and 2665-306-6043 to
Section 2.00 of that act, relating to the state budget, and making an
appropriation therefor, to take effect immediately, budget bill.




	LEGISLATIVE COUNSEL'S DIGEST


   SB 1029, as amended, Committee on Budget and Fiscal Review. Budget
Act of 2012. 
   The Budget Act of 2012 makes appropriations for the support of
state government for the 2012-13 fiscal year.  
   This bill would amend the Budget Act of 2012 by adding items of
appropriation relating to a high-speed rail system in the state.
 
   This bill would declare that it is to take effect immediately as a
Budget Bill.  
   This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2012. 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee:  no   yes  .
State-mandated local program: no.


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

   SECTION 1.    Item 2660-104-6043 is added to Section
2.00 of the   Budget Act of 2012   , to read: 
 
 2660-104-6043--For local assistance, 
 Department of Transportation, payable 
 from the High-Speed Passenger Train Bond 
 Fund...................................... 713,333,000 
     Schedule: 
     (1)   30.10-Mass 
           Transportation......  713,333,000 
     Provisions: 
     1.    These funds shall be available 
           for encumbrance or liquidation 
           until June 30, 2018. 
     2.    The funds appropriated in this 
           item shall be available for 
           capital improvement projects to 
           intercity and commuter rail 
           lines and urban rail systems 
           that provide direct connectivity 
           to the high-speed train system 
           and its facilities, or that are 
           part of the construction of the 
           high-speed train system, as 
           adopted by the California 
           Transportation Commission, 
           pursuant to Section 2704.095 of 
           the Streets and Highways Code. 
     4.    Any funds appropriated in this 
           item for projects in the San 
           Francisco to San Jose corridor, 
           consistent with the blended 
           system strategy identified in 
           the April 2012 California High- 
           Speed Rail Program Revised 2012 
           Business Plan, shall not be used 
           to expand the blended system to 
           a dedicated four-track system. 
     5.    The funds appropriated in this 
           item shall only be made 
           available for expenditure upon 
           the enactment of an 
           appropriation of $3,240,676,000 
           in Item 2665-306-0890, an 
           appropriation of $2,609,076,000 
           in Item 2665-306-6043 for the 
           Initial Operating Segment of the 
           High-Speed Rail System, and an 
           appropriation of $1,100,000,000 
           in Item 2665-104-6043 for 
           ""Bookend'' funding, as 
           articulated in the 2012 High- 
           Speed Rail Authority Final 
           Business Plan. 
 

   SEC. 2.    Item 2660-304-6043 is added to Section
2.00 of the   Budget Act of 2012   , to read: 
 
 2660-304-6043--For capital outlay, 
 Department of Transportation, payable 
 from the High-Speed Passenger Train Bond 
 Fund ..................................... 106,000,000 
     Schedule: 
     (1)   30-Mass 
           Transportation......  106,000,000 
     Provisions: 
     1.    These funds shall be available 
           for encumbrance or liquidation 
           until June 30, 2018. 
     2.    The funds appropriated in this 
           item shall be available for 
           capital improvement projects to 
           intercity and commuter rail 
           lines and urban rail systems 
           that provide direct connectivity 
           to the high-speed train system 
           and its facilities, or that are 
           part of the construction of the 
           high-speed train system, as 
           adopted by the California 
           Transportation Commission, 
           pursuant to Section 2704.095 of 
           the Streets and Highways Code. 
     4.    Any funds appropriated in this 
           item for projects in the San 
           Francisco to San Jose corridor, 
           consistent with the blended 
           system strategy identified in 
           the April 2012 California High- 
           Speed Rail Program Revised 2012 
           Business Plan, shall not be used 
          to expand the blended system to 
           a dedicated four-track system. 
     5.    The funds appropriated in this 
           item shall only be made 
           available for expenditure upon 
           the enactment of an 
           appropriation of $3,240,676,000 
           in Item 2665-306-0890, an 
           appropriation of $2,609,076,000 
           in Item 2665-306-6043 for the 
           Initial Operating Segment of the 
           High-Speed Rail System, and an 
           appropriation of $1,100,000,000 
           in Item 2665-104-6043 for 
           ""Bookend'' funding, as 
           articulated in the 2012 High- 
           Speed Rail Authority Final 
           Business Plan. 
 

   SEC. 3.    Item 2665-104-6043 is added to Section
2.00 of the   Budget Act of 2012   , to read: 
 
 2665-104-6043--For local assistance, 
 High-Speed Rail Authority, payable from 
 the High-Speed Passenger Train Bond 
 Fund ................................... 1,100,000,000 
       Provisions: 
       1.      These funds shall be 
               available for early 
               improvement projects in 
               the Phase 1 blended 
               system, consistent with 
               the Metropolitan 
               Transportation Commission 
               Memorandum of 
               Understanding, as approved 
               by the High-Speed Rail 
               Authority on April 12, 
               2012, in High-Speed Rail 
              Authority Resolution 12-11 
               and the Southern 
              California Memorandum of 
               Understanding, as approved 
               by the High-Speed Rail 
               Authority on April 12, 
               2012, in High-Speed Rail 
               Authority Resolution 12- 
               10. The funds are 
               available for encumbrance 
               or liquidation until June 
               30, 2018. 
       2.      The amount appropriated in 
               this item is available for 
               expenditure for state 
               operations, local 
               assistance, or capital 
               outlay, and may be 
               transferred to Item 2665- 
               004-6043 or Item 2665-306- 
               6043. These transfers 
               shall require the prior 
               approval of the Department 
              of Finance. 
       3.      Any funds appropriated in 
               this item for projects in 
               the San Francisco to San 
               Jose corridor, consistent 
               with the blended system 
               strategy identified in the 
               April 2012 California High- 
               Speed Rail Program Revised 
               2012 Business Plan, shall 
               not be used to expand the 
               blended system to a 
               dedicated four-track 
               system. 
       4.      Provisions 4 to 11, 
               inclusive, of Item 2665- 
               306-6043 shall also apply 
               to this item. 
       5.      No funds appropriated in 
               this item shall be 
               encumbered prior to the 
               High-Speed Rail Authority 
               submitting a detailed 
               funding plan for the 
               project or projects in 
               accordance with 
               subdivision (d) of Section 
               2704.08 of the Streets and 
               Highways Code to (a) the 
               Department of Finance, (b) 
               the Chairperson of the
               Joint Legislative Budget 
               Committee, and (c) the 
               peer review group 
               established pursuant to 
               Section 185035 of the 
               Public Utilities Code. 
       6.      No funds appropriated in 
               this item shall be 
               encumbered for 
               construction of a project 
               prior to completion of all 
               project-level 
               environmental clearances 
               necessary to proceed to 
               construction and the final 
               notices being contained in 
               the funding plan for the 
               project. 
       7.      Prior to the obligation of 
               funds to any specific 
               project, and subject to 
               the approval of the 
               Department of Finance, the 
               High-Speed Rail Authority 
               Board shall develop an 
               accountability plan, 
               consistent with Executive 
               Order S-02-07, to 
               establish criteria and 
               procedures to govern the 
               expenditure of the bond 
               funds in this 
               appropriation, and the 
               outcomes that such 
               expenditures are intended 
               to achieve, including a 
               detailed project 
               description and project 
               cost. The procedures shall 
               ensure that the 
               investments comply with 
               requirements of applicable 
               state and federal laws, 
               and are consistent with 
               and advance the state high- 
               speed train system. 
       8.      The High-Speed Rail 
               Authority shall enter into 
               a project management and 
               funding agreement with the 
               local sponsor of the 
               funded project, and the 
               agreement shall require 
               the local agencies to 
               report to the authority on 
               a quarterly basis to 
               ensure that all bond- 
               funded activities are 
               within the scope and cost 
               outlined in the agreement. 
               Prior to the authority 
               entering into any project 
               management and funding 
               agreement pursuant to this 
               provision, the agreement 
               shall be approved by the 
               Department of Finance. 
       9.      Expenditures of bond 
               proceeds under this item 
               shall be subject to audit 
               to determine whether the 
               expenditures made from 
               bond proceeds were made 
               according to the 
               established criteria and 
               processes, were consistent 
               with all legal 
               requirements, and achieved 
               the intended outcomes. The 
               High-Speed Rail Authority 
              shall contract with the 
               Office of State Audits and 
               Evaluations for the 
               performance of these 
               audits unless alternative 
               audit arrangements are 
               made with the concurrence 
               of the Office of State 
               Audits and Evaluations. 
       10.     The funds appropriated in 
               this item shall only be 
               made available for 
               expenditure upon the 
               enactment of an 
               appropriation of 
               $3,240,676,000 in Item
               2665-306-0890, an 
               appropriation of 
               $2,609,076,000 in Item 
               2665-306-6043 for the 
               Initial Operating Segment 
               of the High-Speed Rail 
               System, an appropriation 
               of $106,000,000 in Item 
               2660-304-6043, and an 
               appropriation of 
               $713,333,000 in Item 2660- 
               104-6043 for Connectivity 
               funding. 
 

   SEC. 4.    Item 2665-304-0890 is added to Section
2.00 of the   Budget Act of 2012   , to read: 
 
 2665-304-0890--For capital outlay, High- 
 Speed Rail Authority, payable from the 
 Federal Trust Fund .......................... 28,310,000 
      Schedule: 
      (1)    20.15.010-San 
             Francisco to San Jose- 
             -Acquisition..........   5,135,000 
      (3)    20.30.010-Merced to 
             Fresno--Acquisition...   2,297,000 
      (4)    20.40.010-Fresno to 
             Bakersfield- 
             -Acquisition..........   3,119,000 
      (5)    20.45.010-Bakersfield 
             to Palmdale- 
             -Acquisition..........           0 
      (6)    20.50.010-Palmdale to 
             Los Angeles- 
             -Acquisition..........   2,566,000 
      (7)    20.60.010-Los Angeles 
             to Anaheim- 
             -Acquisition..........   4,299,000 
      (8)    20.99.010-Project 
             Management and Agency 
             Costs--Acquisition....  10,894,000 
     Provisions: 
      1.     The projects identified in this 
             item may be managed by the High- 
             Speed Rail Authority. 
      2.     The projects identified in this 
             item are subject to review by the 
             State Public Works Board. 
      3.     Notwithstanding any other 
             provision of law, each project in 
             Schedules (1) to (7), inclusive, 
             of this item shall be the same as 
             the respectively coded project in 
             Schedules (1) to (7), inclusive, 
             of Items 2665-304-6043, 2665-305- 
             0890, and 2665-305-6043. For a 
             given project, funds appropriated 
             in this item may be transferred 
             to the same project in Item 2665- 
             305-0890. These transfers shall 
             require the prior approval of the 
             Department of Finance. The 
             Department of Finance shall 
             report annually on May 1 to the 
            Joint Legislative Budget 
             Committee a summary of any 
             transfers that have been made 
             pursuant to this provision. 
      4.     Notwithstanding any other 
             provision of law, the project in 
             Schedule (8) of this item shall 
             be the same as Schedule (8) of 
             Item 2665-305-0890 and Schedule 
             (11) of Items 2665-304-6043 and 
             2665-305-6043. Funds appropriated 
             in Schedule (8) of this item may 
             be transferred to the same 
             schedule in Item 2665-305-0890 
             upon approval of the Department 
             of Finance. The Department of 
             Finance shall report annually on 
             May 1 to the Joint Legislative 
             Budget Committee a summary of any 
             transfers that have been made 
             pursuant to this provision. 
 

   SEC. 5.    Item 2665-304-6043 is added to Section
2.00 of the   Budget Act of 2012   , to read: 
 
 2665-304-6043--For capital outlay, High- 
 Speed Rail Authority, payable from the 
 High-Speed Passenger Train Bond Fund ..... 124,067,000
     Schedule: 
     (1)    20.15.010-San 
            Francisco to San 
            Jose--Acquisition...   5,135,000 
     (3)    20.30.010-Merced to 
            Fresno--Acquisition.   2,297,000 
     (4)    20.40.010-Fresno to
            Bakersfield- 
            -Acquisition........   3,119,000 
    (5)    20.45.010- 
            Bakersfield to 
            Palmdale- 
            -Acquisition........           0 
     (6)    20.50.010-Palmdale 
            to Los Angeles- 
            -Acquisition........   2,566,000 
     (7)    20.60.010-Los 
            Angeles to Anaheim- 
            -Acquisition........   4,299,000 
     (8)    20.70.010-Los 
            Angeles to San 
            Diego--Acquisition..  37,055,000 
     (9)    20.80.010-Merced to 
            Sacramento- 
            -Acquisition........  29,700,000 
     (10)   20.90.010-Altamont 
            Pass--Acquisition...  20,375,000 
     (11)   20.99.010-Project 
            Management and 
            Agency Costs- 
            -Acquisition........  19,521,000 
     Provisions: 
     1.     The projects identified in this 
            item may be managed by the High- 
            Speed Rail Authority. 
     2.     The projects identified in this 
            item are subject to review by 
            the State Public Works Board. 
     3.     Notwithstanding any other 
            provision of law, each project 
            in Schedules (1) to (10), 
            inclusive, of this item shall 
            be the same as the respectively 
            coded project in Schedules (1) 
           to (7), inclusive, of Items 
            2665-304-0890, 2665-305-0890, 
            and 2665-305-6043, and 
            Schedules (8) to (10), 
            inclusive, of Item 2665-305- 
            6043. For a given project, 
            funds appropriated in this item 
            may be transferred to the same 
            project in Items 2665-305-6043. 
            These transfers shall require 
            the prior approval of the 
            Department of Finance. The 
            Department of Finance shall 
            report annually on May 1 to the 
            Joint Legislative Budget 
            Committee a summary of any 
            transfers that have been made 
            pursuant to this provision. 
     4.     Notwithstanding any other 
            provision of law, the project 
            in Schedule (11) of this item 
            shall be the same as Schedule 
            (11) of Item 2665-305-6043 and 
            Schedule (8) of Items 2665-304- 
            0890 and 2665-305-0890. Funds 
            appropriated in Schedule (11) 
            of this item may be transferred 
            to the same schedule in Item 
            2665-305-6043 upon approval of 
            the Department of Finance. The 
            Department of Finance shall 
            report annually on May 1 to the 
            Joint Legislative Budget 
            Committee a summary of any 
            transfers that have been made 
            pursuant to this provision. 
 

   SEC. 6.    Item 2665-305-0890 is added to Section
2.00 of the   Budget Act of 2012   , to read: 
 
 2665-305-0890--For capital outlay, High- 
 Speed Rail Authority, payable from the
 Federal Trust Fund .......................... 20,044,000 
      Schedule: 
      (1)    20.15.010-San 
             Francisco to San Jose- 
             -Design...............      74,000 
      (3)    20.30.010-Merced to 
             Fresno--Design........   4,987,000 
      (4)    20.40.010-Fresno to 
             Bakersfield--Design...   8,246,000 
      (5)    20.45.010-Bakersfield 
             to Palmdale--Design...     195,000 
      (6)    20.50.010-Palmdale to 
             Los Angeles--Design...           0 
      (7)    20.60.010-Los Angeles 
             to Anaheim--Design....           0 
      (8)    20.99.010-Project 
             Management and Agency 
             Costs--Design.........   6,542,000 
      Provisions: 
      1.     The projects identified in this 
             item may be managed by the High- 
             Speed Rail Authority. 
      2.     The projects identified in this 
             item are subject to review by the 
            State Public Works Board. 
      3.     Notwithstanding any other 
             provision of law, each project in 
             Schedules (1) to (7), inclusive, 
             of this item shall be the same as 
             the respectively coded project in 
             Schedules (1) to (7), inclusive, 
             of Items 2665-304-0890, 2665-304- 
             6043, and 2665-305-6043. For a 
             given project, funds appropriated 
             in this item may be transferred 
             to the same project in Item 2665- 
             304-0890. These transfers shall 
             require the prior approval of the 
             Department of Finance. The 
             Department of Finance shall 
             report annually on May 1 to the 
             Joint Legislative Budget 
             Committee a summary of any 
             transfers that have been made 
             pursuant to this provision. 
      4.     Notwithstanding any other 
             provision of law, the project in 
             Schedule (8) of this item shall 
             be the same as Schedule (8) of 
             Item 2665-304-0890 and Schedule 
             (11) of Items 2665-304-6043 and 
             2665-305-6043. Funds appropriated 
             in Schedule (8) of this item may 
             be transferred to the same 
             schedule in Item 2665-304-0890 
             upon approval of the Department 
             of Finance. The Department of 
             Finance shall report annually on 
             May 1 to the Joint Legislative 
             Budget Committee a summary of any 
             transfers that have been made in 
             respect to this provision. 
 

   SEC. 7.    Item 2665-305-6043 is added to Section
2.00 of the   Budget Act of 2012   , to read: 
 
 2665-305-6043--For capital outlay, High- 
 Speed Rail Authority, payable from the 
 High-Speed Passenger Train Bond Fund....... 80,106,000 
      Schedule: 
      (1)    20.15.010-San 
             Francisco to San 
             Jose--Design........      74,000 
      (3)    20.30.010-Merced to 
             Fresno--Design......   4,987,000 
      (4)    20.40.010-Fresno to 
             Bakersfield--Design.   8,246,000 
      (5)    20.45.010- 
             Bakersfield to
             Palmdale--Design....     195,000 
      (6)    20.50.010-Palmdale 
             to Los Angeles- 
             -Design.............           0 
      (7)    20.60.010-Los 
             Angeles to Anaheim- 
             -Design.............           0 
      (8)    20.70.010-Los 
             Angeles to San 
             Diego--Design.......  19,068,000 
      (9)    20.80.010-Merced to 
             Sacramento--Design..  24,176,000 
      (10)   20.90.010-Altamont 
             Pass--Design........  16,055,000 
      (11)   20.99.010-Project 
             Management and 
             Agency Costs- 
             -Design.............   7,305,000 
      Provisions: 
      1.     The projects identified in this 
             item may be managed by the High- 
             Speed Rail Authority. 
      2.     The projects identified in this 
             item are subject to review by 
             the State Public Works Board. 
      3.     Notwithstanding any other 
             provision of law, each project 
             in Schedules (1) to (10), 
             inclusive, of this item shall 
             be the same as the respectively 
             coded project in Schedules (1) 
             to (7), inclusive, of Items 
             2665-304-0890, 2665-304-6043, 
             and 2665-305-0890, and 
             Schedules (8) to (10), 
             inclusive, of Item 2665-304- 
             6043. For a given project, 
             funds appropriated in this item 
             may be transferred to the same 
             project in Items 2665-304-6043. 
             These transfers shall require 
             the prior approval of the 
             Department of Finance. The 
             Department of Finance shall 
             report annually on May 1 to the 
             Joint Legislative Budget 
             Committee a summary of any 
             transfers that have been made 
             pursuant to this provision. 
      4.     Notwithstanding any other 
             provision of law, the project 
             in Schedule (11) of this item 
             shall be the same as Schedule 
             (11) of Item 2665-304-6043 and 
             Schedule (8) of Items 2665-304- 
             0890 and 2665-305-0890. Funds 
             appropriated in Schedule (11) 
             of this item may be transferred 
             to the same schedule in Item 
             2665-304-6043 upon approval of 
             the Department of Finance. The 
             Department of Finance shall 
             report annually on May 1 to the 
             Joint Legislative Budget 
             Committee a summary of any 
             transfers that have been made 
             pursuant to this provision. 


   SEC. 8.    Item 2665-306-0890 is added to Section
2.00 of the   Budget Act of 2012   , to read: 
 
 2665-306-0890--For capital outlay, High- 
 Speed Rail Authority, payable from the 
 Federal Trust Fund ....................... 3,240,676,000 
     Schedule: 
     (1)   20.01.010-Initial 
           Operating Segment, 
           Section 1- 
           -Acquisition and     3,240,676,00 
           Build...............            0 
     Provisions: 
     1.    The project identified in this 
           item may be managed by the High- 
           Speed Rail Authority. 
     2.    The expenditure of funds 
           appropriated in this item are 
           governed by Section 13332.19 of 
           the Government Code. The project 
           identified in this item is 
           subject to review and oversight 
           by the State Public Works Board. 
           The project may be implemented 
           using several design-build
           contracts, each of which will 
           have its own set of performance 

     criteria or performance criteria 
           and concept drawings. Funds 
           appropriated for the build 
           portion of this project may only 
           be expended after the Department 
           of Finance and the State Public 
           Works Board have approved
           performance criteria or 
           performance criteria and concept 
           drawings for the design-build 
           contract. These approvals may be 
           provided for each design-build 
           contract, from time to time, and 
           build funds associated with that 
           design-build contract may be 
           expended at that time. 
     3.    Notwithstanding Section 1.80, 
           the appropriation made in this 
           item is available for 
           encumbrance until June 30, 2018. 
     4.    Provisions 4 to 11, inclusive, 
           of Item 2665-306-6043 shall also 
           apply to this item. 
     5.    The funds appropriated in this 
           item shall only be made 
           available for expenditure upon 
           the enactment of an 
           appropriation of $106,000,000 in 
           Item 2660-304-6043, an 
           appropriation of $713,333,000 in 
           Item 2660-104-6043 for 
           ""Connectivity'' funding, and an 
           appropriation of $1,100,000,000 
           in Item 2665-104-6043 for 
           ""Bookend'' funding, as 
           articulated in the 2012 High- 
           Speed Rail Authority Final 
           Business Plan. 
 

   SEC. 9.    Item 2665-306-6043 is added to Section
2.00 of the   Budget Act of 2012   , to read: 
 
 2665-306-6043--For capital outlay, High- 
 Speed Rail Authority, payable from the 
 High-Speed Passenger Train Bond Fund ..... 2,609,076,000 
     Schedule: 
     (1)  20.01.010-Initial 
          Operating Segment, 
          Section 1- 
          -Acquisition and 
          Build............... 2,609,076,000 
     Provisions: 
     1.   The project identified in this 
          item may be managed by the High- 
          Speed Rail Authority. 
     2.   The expenditure of funds 
          appropriated in this item are 
          governed by Section 13332.19 of 
          the Government Code. The project 
          identified in this item is 
          subject to review and oversight 
          by the State Public Works Board. 
          The project may be implemented 
          using several design-build 
          contracts, each of which will 
          have its own set of performance 
          criteria or performance criteria 
          and concept drawings. Funds 
          appropriated for the build 
          portion of this project may only 
         be expended after the Department 
          of Finance and the State Public 
          Works Board have approved 
          performance criteria or 
          performance criteria and concept 
          drawings for the design-build 
          contract. These approvals may be 
          provided for each design-build 
          contract, from time to time, and 
          build funds associated with that 
          design-build contract may be 
          expended at that time. 
     3.   Notwithstanding Section 1.80, the 
          appropriation made in this item 
          is available for encumbrance 
          until June 30, 2018. 
     4.   On or before March 1 and November 
          15 of each year for which funding
          appropriated in this item is 
          encumbered, the High-Speed Rail 
          Authority shall provide a Project 
          Update Report approved, as 
          consistent with the criteria in 
          this provision, by the Secretary 
          of Business, Transportation and 
          Housing to the budget committees 
          and the appropriate policy 
          committees of both houses of the 
          Legislature on the development 
          and implementation of intercity 
          high-speed train service pursuant 
          to Section 185030 of the Public 
          Utilities Code. The report, at a 
          minimum, shall include a 
          programwide summary, as well as 
          details by project segment, with 
          all information necessary to 
          clearly describe the status of 
          the project, including, but not 
          limited to, all of the following: 
          (a)   A summary describing the 
                overall progress of the 
                project. 
          (b)   The baseline budget for all 
                project phase costs, by 
                segment or contract, 
                beginning with the 
                California High-Speed Rail 
                Program Revised 2012 
                Business Plan. 
          (c)   The current and projected 
                budget, by segment or 
                contract, for all project 
                phase costs. 
         (d)   Expenditures to date, by 
                segment or contract, for 
                all project phase costs. 
          (e)   A comparison of the current 
                and projected work schedule 
               and the baseline schedule 
                contained in the California 
                High-Speed Rail Program 
                Revised 2012 Business Plan. 
          (f)   A summary of milestones 
                achieved during the prior 
                year and milestones 
                expected to be reached in 
                the coming year. 
          (g)   Any issues identified 
                during the prior year and 
                actions taken to address 
                those issues. 
          (h)   A thorough discussion of 
                various risks to the 
                project and steps taken to 
                mitigate those risks. 
     5.   (a)   With respect to contracts 
                scheduled to be awarded in 
                December 2012 to commence 
                construction of the first 
                construction segment of the 
                initial operating section 
                of the high-speed rail 
                system, as described in the 
                California High-Speed Rail 
                Program Revised 2012 
                Business Plan adopted by 
                the authority on April 12, 
                2012 (revised business 
                plan), the authority shall 
                submit the following 
                reports approved, as 
                consistent with the 
                criteria in this provision, 
                by the Secretary of 
                Business, Transportation 
                and Housing to the Senate 
                Committee on Transportation 
                and Housing, the Assembly 
                Committee on 
                Transportation, and the 
                Senate and Assembly 
                committees on budget: 
                (1)     By October 1, 2012, 
                        prior to awarding a 
                        contract to 
                        commence 
                        construction of the 
                        first construction 
                        segment or 
                        committing funds 
                        for the contract, 
                        and prior to 
                        advertising 
                        contracts to be 
                        awarded for the 
                        first construction 
                        segment in 
                        September 2013 and 
                        October 2013, a 
                        comprehensive staff 
                        management report 
                        that includes: 
                (i)     An organizational 
                        chart for the 
                        authority, detailed 
                        description of each 
                        executive manager's 
                        function and 
                        responsibilities, 
                        summary of staffing 
                        changes in the 
                        preceding year, a 
                        strategy for 
                        filling vacancies 
                        and the recruitment 
                        and staffing plans 
                        for the 2012-13 
                        fiscal year. 
                (ii)    The management 
                        approach, including 
                        number, skill 
                        level, position, 
                        and hiring and 
                        retention plan of 
                        staff and outside
                        consultants 
                        required to 
                        adequately oversee 
                        each of the planned 
                        construction 
                        contracts funded in 
                        this act. 
                (iii)   Proposed steps and 
                        procedures that 
                        will be employed to 
                        ensure adequate 
                        oversight and 
                        management of 
                        contractors 
                        involved in the 
                        construction 
                        contracts funded in 
                        this act. 
                (iv)    Procedures to 
                        detect and prevent 
                        contract splitting. 
                (2)     Prior to awarding a 
                        contract to 
                        commence 
                        construction of the 
                        first construction 
                        segment, a report 
                        certifying that the 
                        amount awarded 
                        under the contract 
                        is within the 
                        budgeted funding 
                        and is consistent 
                        with the completion 
                        schedule deadlines 
                        set by the federal 
                        Department of 
                        Transportation. 
          (b)   Each of the reports 
                required pursuant to 
                subdivision (a) for the 
                contracts described in that 
                subdivision shall also be 
                required with respect to 
                the contract scheduled to 
                be awarded in March 2017. 
                The authority shall submit 
                the reports for those 
                contracts no later than 60 
                days prior to advertising 
                for bids on each contract. 
     7.   Sixty days prior to awarding the 
          contracts scheduled to be awarded 
          in December 2012 to commence 
          construction of the first 
          construction segment of the 
          initial operating section, the 
          High-Speed Rail Authority shall 
          fill the positions of chief 
          executive officer, risk manager, 
          chief program manager, and chief 
          financial officer and report 
         those hiring to the Joint 
          Legislative Budget Committee. 
     8.   Prior to awarding the contracts 
          scheduled to be awarded in 
          December 2012 to commence 
          construction of the first 
          construction segment of the 
          initial operating section, the 
          High-Speed Rail Authority shall 
          prepare and submit a report 
          approved, as consistent with the 
          criteria in this provision, by 
          the Secretary of Business, 
          Transportation and Housing to the 
          Senate Committee on 
          Transportation and Housing, the 
          Assembly Committee on 
          Transportation, and the Senate 
          and Assembly committees on budget 
          detailing elements of risk in the 
          high-speed rail project, 
          including all of the following: 
          (a)   A comprehensive risk 
                management plan that 
                defines roles and 
                responsibilities for risk 
                management and addresses 
                the process by which the 
                authority will identify and 
                quantify project risks, 
                implement and track risk 
                response activities, and 
                monitor and control risks 
                throughout the duration of 
                each project. 
          (b)   Quantification of the 
                effect of identified risks 
                in financial terms. 
          (c)   Development documents to 
                track identified risks and 
                related mitigation steps. 
          (d)   Plans for regularly 
                updating its estimates of 
                capital and support costs. 
          (e)   Plans for regularly 
                reassessing its reserves 
                for potential claims and 
                unknown risks, 
                incorporating information 
                related to risks identified 
                and quantified through its 
                risk assessment processes. 
          (f)   Plans for regularly 
                integrating estimates for 
                capital, support costs, and 
                contingency reserves in 
                required reports. 
     9.   The High-Speed Rail Authority 
          shall, as part of its January 1, 
          2014, Business Plan, include: a 
          proposed approach for improving 
          (a) demand projections, (b) 
          operations and maintenance cost 
          models, and (c) benefit-cost 
          analysis as applied to future 
          project decisions. The authority 
          shall also submit a copy of the 
          study by the Union Internationale 
          des Chemins de Fer (the 
          international union of railways) 
          examining how the authority's 
          estimated operating costs for 
          high-speed rail compare to high- 
          speed rail systems in other 
          countries. These business plan 
          components approved, as 
          consistent with the criteria in 
          this provision, by the Secretary 
          of Business, Transportation and 
          Housing shall be based on 
          recommendations of the 
          authority's peer review panel, 
          advice from the domestic and 
          international rail community, and 
          external academic review. 
     10.  On or before June 30, 2013, the
          High-Speed Rail Authority shall 
          prepare and submit a report 
          approved, as consistent with the 
          criteria in this provision, by 
          the Secretary of Business, 
          Transportation and Housing that 
          provides an analysis of the net 
          impact of the high-speed rail 
          program on the state's greenhouse 
          gas emissions. The report shall 
          be submitted to the Senate 
          Committee on Transportation and 
          Housing, the Assembly Committee 
          on Transportation, and the Senate 
          and Assembly committees on budget. 
     11.  Within 10 days of executing a 
          valid memorandum of understanding 
          (MOU) with regional 
          transportation agencies relative 
          to the Northern California 
          Unified Service, the High-Speed 
          Rail Authority shall make a copy 
          of the MOU available to the 
          Senate Committee on 
          Transportation and Housing, the 
          Assembly Committee on 
          Transportation, and the Senate 
          and Assembly committees on budget. 
     12.  The safeguards and oversight 
          rules and processes of Sections 
          13332.11 or 13332.19 of the 
          Government Code, as appropriate, 
          shall apply to the High-Speed 
          Rail Authority. 
     13.  The funds appropriated in this 
          item shall only be made available 
          for expenditure upon the 
          enactment of an appropriation of 
          $106,000,000 in Item 2660-304- 
          6043, an appropriation of 
          $713,333,000 in Item 2660-104- 
          6043 for ""Connectivity'' 
          funding, and an appropriation of 
          $1,100,000,000 in Item 2665-104- 
          6043 for ""Bookend'' funding, as 
          articulated in the 2012 High- 
          Speed Rail Authority Final 
          Business Plan. 
 

   SEC. 10.    This act is a Budget Bill within the
meaning of subdivision (e) of Section 12 of Article IV of the
California Constitution and shall take effect immediately. 

  SECTION 1.    It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2012.