BILL NUMBER: SB 1225	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 1, 2012
	AMENDED IN SENATE  APRIL 9, 2012

INTRODUCED BY   Senator Padilla

                        FEBRUARY 23, 2012

   An act to amend Sections 14031.8, 14070.2, 14070.4, and 14070.6
of, and to repeal and add Article 5.2 (commencing with Section 14072)
of Chapter 1 of Part 5 of Division 3 of Title 2 of, the Government
Code, relating to transportation.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1225, as amended, Padilla. Intercity rail agreements.
   Existing law authorizes the Department of Transportation to
contract with Amtrak for intercity  rail  passenger
 rail  services and provides funding for these services from
the Public Transportation Account. Existing law, until December 31,
1996, authorized the department, subject to approval of the Secretary
of the Business, Transportation and Housing Agency, to enter into an
interagency transfer agreement under which a joint powers board
assumes responsibility for administering the state-funded intercity
rail service in a particular corridor. Existing law, with respect to
a transferred corridor, requires the board to demonstrate the ability
to meet performance standards established by the secretary.
   This bill would authorize the department, with the approval of the
secretary, to enter into an additional interagency transfer
agreement with respect to the LOSSAN Corridor, defined to mean the
intercity passenger rail corridor between San Diego, Los Angeles, and
San Luis Obispo, if the LOSSAN Agency, an existing joint powers
agency, is reconstituted through an amended joint powers agreement
approved by the governing boards of its members to enable that agency
to enter into an interagency transfer agreement with the secretary
relative to the LOSSAN Corridor.
   This bill would require an interagency transfer agreement for the
LOSSAN Corridor to cover the initial 5-year period after the
transfer. The bill would require the secretary, if an agreement is
not entered into by  December 31, 2013   June
30, 2014  , to report to the Governor and the Legislature by
 January   July  31, 2014, as specified.
   Existing law provides for the allocation of state funds by the
secretary to a joint powers board under an interagency transfer
agreement based on the annual business plan for the intercity rail
corridor and subsequent appropriation of state funds. Existing law
states that the interagency transfer agreement may provide that any
additional funds required to operate the passenger rail service
during a fiscal year shall be provided by the joint powers board from
jurisdictions that receive service.
   This bill would delete the provision requiring additional funds to
be provided by the board, and would instead provide that those funds
may be provided by the board. The bill, with respect to the LOSSAN
Corridor, would provide that local resources shall not be available
to offset any redirection, elimination, reduction, or
reclassification of state resources for operating intercity rail
services.  In addition, with regard to that corridor, the bill
would require the passenger rail equipment used for intercity
passenger rail services to be the same type of equipment used on
other state-funded intercity passenger rail services. The bill would
prohibit termination of feeder bus services connecting the LOSSAN and
San Joaquin Corridors except for specified reasons. 
   This bill would authorize the secretary to adopt new performance
standards by December 31, 2014, for intercity rail services.
   This bill would repeal now-obsolete provisions authorizing the
Southern California Regional Rail Authority to be a party to an
interagency transfer agreement for intercity rail services in
specified counties.
   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.  This act shall be known and may be cited as the
Intercity Passenger Rail Act of 2012.
  SEC. 2.  (a) The Legislature finds and declares all of the
following:
   (1) An intercity  rail  passenger  rail 
system, linking major urban centers and complemented by feeder bus
services that provide access to outlying areas and destinations, is
an important element of the state's transportation system, and shall
remain a state-funded program.
   (2) The state has a continuing interest in the provision of
cost-effective intercity  rail  passenger  rail
 services and has a responsibility to coordinate intercity
 rail  passenger  rail  services statewide.

   (3) Since 1976, the state has invested over one billion eight
hundred million dollars ($1,800,000,000) in capital improvements and
operating support for intercity  rail  passenger
 rail  service and must ensure the protection of that
investment.
   (b) The Legislature, through the enactment of this act, intends
all of the following:
   (1) The Secretary of Business, Transportation and Housing 
shall   to  be responsible for the overall
planning, coordination, and budgeting of the intercity passenger rail
service  consistent with this act  .
   (2) If the secretary determines that transferring responsibility
for intercity  passenger  rail service in a particular
corridor or corridors to a statutorily created joint powers agency
would result in administrative or operating cost reductions, the
secretary may authorize the Department of Transportation to enter
into an interagency transfer agreement to effect a transfer of those
administrative functions  , consistent with this act  .
   (3) Any intercity  passenger  rail corridor for which
administrative responsibility has been transferred to a joint powers
board through an interagency transfer agreement  shall
  to  remain  as  a component of
the statewide system of intercity  passenger  rail
corridors.
   (4) The public interest requires expansion of the state intercity
 passenger  rail program in order to keep pace with the
needs of an expanding population.
   (5)  For not less than a five-year period,  
It is desirable that  the level of state funding for intercity
 passenger  rail service in each corridor  should
 be maintained at a level equal to at least the current
level of service in the corridor  for not less than a five-year
period  , thus providing fiscal stability that will allow
appropriate planning and operation of these services. 
   (6) It is in the public interest to ensure fiscal accountability
that the intercity passenger rail service operating in the LOSSAN
Corridor maintain a ratio of fare revenue to operating cost of no
less than 58 percent.  
   (7) It is in the public interest that the LOSSAN Corridor Joint
Powers Agency retain an individual to manage the contract with the
state who has previous experience operating or managing intercity or
commuter passenger rail services. 
  SEC. 3.  Section 14031.8 of the Government Code is amended to read:

   14031.8.  (a) The Secretary of Business, Transportation and
Housing shall establish, through an annual budget process, the level
of state funding available for the operation of intercity passenger
rail service in each corridor.
   (b) Where applicable, operating funds shall be allocated by the
secretary to the joint powers board in accordance with an interagency
transfer agreement that includes mutually agreed-upon rail services.
Funds for the administration and marketing of services, as
appropriate, shall also be transferred by the secretary to the joint
powers board, subject to the terms of the interagency transfer
agreement.
   (c) The joint powers board or local or regional entities may, but
shall not be required to, augment state-provided resources to expand
intercity passenger rail services using local resources, or to
address funding shortfalls in achieving agreed-upon performance
standards.
   (d) The department may provide any support services as may be
mutually agreed upon by the board and the department.
   (e) Operating costs shall be controlled by dealing with, at a
minimum, the current Amtrak cost allocation formula, which, beginning
in federal fiscal year 2013-14, will be subject to Section 209 of
the federal Passenger Rail Investment and Improvement Act, and the
ability to contract out to Amtrak or other rail operators as a part
of federal legislation dealing with Amtrak reauthorization.
   (f) Not later than December 31, 1997, the secretary shall
establish a set of uniform performance standards for all corridors
and operators to control cost and improve efficiency. To the extent
necessary, as determined by the secretary, performance standards may
be modified not later than December 31, 2014, relative to including
the  LOSSAN   San Diego-Los Angeles-San Luis
Obispo (LOSSAN)  Corridor among the corridors subject to an
interagency transfer agreement.
   (g) Notwithstanding any other provision of this section, with
regard to the LOSSAN Corridor, local resources described in
subdivision (c) shall not be available for expenditure to offset any
redirection, elimination, reduction, or reclassification of state
resources for operating intercity  passenger  rail services
 as identified in subdivision (b)  .
  SEC. 4.  Section 14070.2 of the Government Code is amended to read:

   14070.2.  (a) If authorized by the secretary, the department may,
through an interagency transfer agreement, transfer to a joint powers
board, and the board may assume, all responsibility for
administering state-funded intercity passenger rail service in the
corridor. Upon the date specified in the agreement, the board shall
succeed to the department's powers and duties relative to that
service, except that the department shall retain responsibility for
developing budget requests for the service through the state budget
process, which shall be developed in consultation with the board, and
for coordinating service in the corridor with other intercity
passenger rail services in the state.
   (b) (1) Except as otherwise provided in paragraph (2), the
interagency transfer agreement shall be executed on or before
December 31, 1996.
   (2) With respect to the LOSSAN Corridor, if an interagency
transfer agreement for that corridor is not entered into on or before
 December 31, 2013   June 30, 2014  , the
secretary shall provide a report to the Governor and the Legislature
on or before  January   July  31, 2014,
explaining why an acceptable agreement has not been developed, with
specific recommendations for developing an acceptable agreement.
   (c) The secretary shall require the board to demonstrate the
ability to meet the performance standards established by the
secretary pursuant to subdivision (f) of Section 14031.8.
  SEC. 5.  Section 14070.4 of the Government Code is amended to read:

   14070.4.  (a) An interagency transfer agreement between the
department and a joint powers board, when approved by the secretary,
shall do all of the following:
   (1) Specify the date and conditions for the transfer of
responsibilities and identify the annual level of funding and ensure
that the level of funding is consistent with and sufficient for the
planned service improvements within the corridor. For purposes of the
LOSSAN Corridor, the interagency transfer agreement shall cover the
initial five-year period after the transfer, but may be extended
thereafter by mutual agreement.
   (2) Identify, for the initial year and subsequent years, the funds
to be transferred to the board including state operating subsidies
made available for intercity rail services in the corridor, and funds
currently used by the department for administration and marketing of
the corridor, with the amounts adjusted annually for inflation and
in accordance with the business plan.
   (3) Specify the level of service to be provided, the respective
responsibilities of the board and the department, the methods that
the department will use to  assure   ensure
 the coordination of services with other rail passenger services
in the state, and the methods that the department will use for the
annual review of the business plan and annual proposals on funding
and appropriations.
   (4) Describe the terms for transferring to the joint exercise of
powers agency car and locomotive train sets, and other equipment and
property owned by the department and required for the intercity 
passenger rail  service in the corridor  ,  including,
but not limited to, the number of units to be provided, liability
coverage, maintenance and warranty responsibilities, and
indemnification issues.
   (5) Describe auditing responsibilities and process requirements,
reimbursement and billing procedures, the responsibility for funding
shortfalls, if any, during the course of each fiscal year, an
operating contract oversight review process, performance standards
and reporting procedures, the level of rail infrastructure
maintenance, and other relevant monitoring procedures. The
description shall contain an evaluation of the impact of any transfer
of equipment on other intercity corridors. The agreement shall
endeavor to minimize the impact and maximize the efficient use of the
equipment, including continued joint use of equipment that is
currently shared by one or more corridors.
   (b) Use of the annual state funding allocation, as set forth in
the interagency transfer agreement, shall be described in an annual
business plan submitted by the board to the secretary for review and
recommendation by April 1 of each year. The business plan, when
approved by the secretary, shall be deemed accepted by the state. The
budget proposal developed by the department for the subsequent year
shall be based upon the business plan approved by the secretary. The
business plan shall be consistent with the interagency transfer
agreement and shall include a report on the recent as well as
historical performance of the corridor service, an overall operating
plan including proposed service enhancement to increase ridership and
provide for increased traveler demands in the corridor for the
upcoming year, short-term and long-term capital improvement programs,
funding requirements for the upcoming fiscal year, and an action
plan with specific performance goals and objectives. The business
plan shall document service improvements to provide the planned level
of service, inclusion of operating plans to serve peak period work
trips, and consideration of other service expansions and
enhancements. With respect to the LOSSAN Corridor, the initial
business plan shall be consistent with the immediately previous State
Rail Plan developed by the department pursuant to Section 14036. The
business plan shall clearly delineate how funding and accounting for
state-sponsored  rail   intercity 
passenger  rail  services shall be separate from locally
sponsored services in the corridor. Proposals to expand or modify
 intercity  passenger  rail  services shall be
accompanied by the identification of all associated costs and
ridership projections. The business plan shall establish, among other
things: fares, operating strategies, capital improvements needed,
and marketing and operational strategies designed to meet performance
standards established in the interagency transfer agreement.
   (c) Based on the annual business plan and the subsequent
appropriation by the Legislature, the secretary shall allocate state
funds on an annual basis to the board. As provided in the interagency
transfer agreement, any additional funds that are needed to operate
the passenger rail service during a fiscal year may be provided by
the board from jurisdictions that receive service. In addition, the
board may use any cost savings or farebox revenues to provide service
improvements related to intercity service. In any event, the board
shall report the fiscal results of the previous year's operations as
part of the annual business plan.
   (d) The level of service funded by the state shall in no case be
less than the current number of intercity round trips operated in a
corridor and serving the end points currently served by the intercity
rail corridor. For purposes of the LOSSAN Corridor, the level of
service funded by the state shall be no less than the level of
service funded as of January 1, 2013. Subject to Section 14035.2, the
level of service funded by the state shall also include feeder bus
service with substantially the same number of route miles as the
current feeder system, to be operated in conjunction with the trains.
However, the interagency transfer agreement shall not prohibit the
joint powers board from reducing the number of feeder bus route miles
if the joint powers board determines that a feeder bus route is not
cost effective as provided in Section 14035.2. 
   (e) Feeder bus services that provide connections for intercity
rail passengers from the LOSSAN Corridor to the state-supported San
Joaquin passenger rail service shall not be terminated unless the bus
services fail to meet the cost-effectiveness standard described in
paragraph (3) of subdivision (a) of Section 14035.2.  
   (e) 
    (f)  Nothing in this article shall be construed to
preclude expansion of state-approved intercity rail service. 

   (f) 
    (g)  Notwithstanding any other provision of this
section, with regard to the LOSSAN Corridor, local resources
described in subdivision (c) shall not be available for expenditure
to offset any redirection, elimination, reduction, or
reclassification of state resources for operating intercity 
passenger  rail services. 
   (h) The passenger rail equipment regularly used for intercity
passenger rail service on the LOSSAN Corridor shall be the same type
of equipment regularly used on other intercity corridors funded by
the state. The purpose of this requirement is to ensure that there is
a statewide pool of common intercity passenger rail equipment for
purposes of interoperability among the state-funded corridors and for
vehicle fleet management. 
  SEC. 6.  Section 14070.6 of the Government Code is amended to read:

   14070.6.  The department and any entity that assumes
administrative responsibility for intercity passenger rail services
through an interagency transfer agreement, may, through a competitive
solicitation process, contract with the National Railroad Passenger
Corporation (Amtrak) or with organizations  not precluded
  authorized  by state or federal law to provide
intercity passenger rail services, and may contract with rail
corporations and other rail operators for the use of tracks and other
facilities and for the provision of intercity passenger  rail
 services on terms and conditions as the parties may agree. The
department is deemed to be a third-party beneficiary of the contract,
and the contract shall not contain any provision or condition that
would negatively impact on or conflict with any other contracts the
department has regarding intercity passenger rail services. Any
entity that succeeds the department as sponsor of state-supported
intercity passenger rail services through an interagency transfer
agreement, is deemed an agency of the state for all purposes related
to intercity passenger rail services, including Section 5311 of Title
49 of the United States Code.
  SEC. 7.  Article 5.2 (commencing with Section 14072) of Chapter 1
of Part 5 of Division 3 of Title 2 of the Government Code is
repealed.
  SEC. 8.  Article 5.2 (commencing with Section 14072) is added to
Chapter 1 of Part 5 of Division 3 of Title 2 of the Government Code,
to read:

      Article 5.2.  LOSSAN Corridor


   14072.  (a) The  Los Angeles-San Diego-San Luis Obispo
  LOSSAN  Rail Corridor Agency, also known as the
LOSSAN Agency, is an existing joint powers authority established to
provide an organization capable of implementing the recommendations
contained in the State Rail Corridor Study Group's June 1987 report
entitled "Los Angeles-San Diego State Rail Corridor Study" and
undertaking related efforts to improve intercity services and
facilities in the corridor and to coordinate subcorridor commuter
rail services with intercity services. The LOSSAN Agency is 
comprised   composed  of voting members, as
specified in the joint powers agreement.
   (b) "LOSSAN Corridor"  or "LOSSAN Rail Corridor"  means
the San Diego-Los Angeles-San Luis Obispo intercity passenger rail
corridor.
   14072.2.  This article shall be applicable only if the members of
the LOSSAN Agency enter into an amended joint powers agreement to
expand the authority of the agency to permit the administration of
state-funded intercity passenger rail services on the LOSSAN 
corridor   Corridor  , and the LOSSAN Agency
thereafter elects to become a party to an interagency transfer
agreement pursuant to Article 5 (commencing with Section 14070). The
amended joint powers agreement shall establish the terms and
conditions for the joint powers agency and is subject to the approval
of the governing board of each member agency of the LOSSAN Agency.
Only the LOSSAN Agency operating under the amended joint powers
agreement, and not the LOSSAN Agency existing on January 1, 2013, may
exercise jurisdiction over intercity rail services on the LOSSAN
Corridor under an interagency transfer agreement.