BILL NUMBER: SB 1029	ENROLLED
	BILL TEXT

	PASSED THE SENATE  JULY 6, 2012
	PASSED THE ASSEMBLY  JULY 5, 2012
	AMENDED IN ASSEMBLY  JULY 3, 2012

INTRODUCED BY   Committee on Budget and Fiscal Review

                        FEBRUARY 6, 2012

   An act 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, 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.
   Appropriation: yes.


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 Item 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.