BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 557|
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THIRD READING
Bill No: SB 557
Author: Hill (D), et al.
Amended: 5/2/13
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 9-1, 4/30/13
AYES: DeSaulnier, Beall, Cannella, Galgiani, Hueso, Lara, Liu,
Pavley, Wyland
NOES: Roth
NO VOTE RECORDED: Gaines
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : San Francisco Bay Area high-speed rail expenditures
SOURCE : Author
DIGEST : This bill reiterates a number of restrictions
contained in existing law related to bond funds that the
Legislature appropriated for the development of high-speed rail
in the San Francisco Bay Area.
ANALYSIS : Existing law created the California High-Speed Rail
Authority (HSRA) in 1996 to direct development and
implementation of inter-city high-speed rail service that is
fully coordinated with other public transportation services. In
2008, voters approved Proposition 1A (Prop 1A) authorizing $9.95
billion in general obligation bonds for the project. The
Legislature appropriates bond funds for expenditure and the bond
act includes requirements for reporting and expenditure of bond
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funds.
Prop 1A set aside $950 million in bond funds for capital
improvements to intercity, urban, and commuter rail that provide
direct connectivity to high-speed rail, while Prop 1A dedicates
the remaining $9 billion specifically to high-speed rail
projects.
In 2012, the Legislature passed SB 1029 (Committee on Budget and
Fiscal Review, Chapter 152) which appropriated the state bond
and federal funds necessary to award the design-build
construction contracts for the first segment of the high-speed
rail project. SB 1029 also appropriated $1.1 billion in bond
funds for investment in the "bookend" segments of the system
located in the northern and southern California regions. SB
1029 includes extensive reporting requirements and expenditure
restrictions. With respect to the appropriation for projects in
the "bookend" segments, SB 1029 contains a number of
restrictions, including:
1.Making funds available only for improvements consistent with
the memorandums of understanding (MOUs) approved prior to the
appropriation between HSRA and the local partners.
2.Prohibiting funds dedicated to the San Francisco-to-San Jose
Peninsula corridor from being used to expand the project
beyond the agreed-upon "blended system" with existing commuter
rail service or to build a four-track system.
3.Requiring HSRA to enter into a project management and funding
agreement with the local sponsor of the project.
4.Subjecting expenditures to audits to affirm HSRA spent them in
accordance with established criteria and existing agreements.
5.Making funds available for encumbrance or liquidation until
June 30, 2018.
This bill reiterates a number of restrictions contained in
existing law related to bond funds that the Legislature
appropriated for the development of high-speed rail in the San
Francisco Bay Area. Specifically, restrictions in this bill
include:
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1.Making funds available only for improvements consistent with
the MOUs approved prior to the appropriation between HSRA and
the local partners.
2.Prohibiting funds dedicated to the San Francisco-to-San Jose
Peninsula corridor from being used to expand the project
beyond the agreed-upon "blended system" with existing commuter
rail service or to build a four-track system.
3.Provides items #1 and #2 above remain in effect as long as the
appropriation contained in SB 1029 for the "bookend" segments
remains available for encumbrance or liquidation.
4.Requiring approval from all nine parties of the Bay Area MOU
to expand beyond the "blended system" planned for the
Peninsula corridor.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/20/13)
City of Palo Alto
City of San Carlos
Mayor of Redwood City
Peninsula Corridor Joint Powers Authority (Caltrain)
San Mateo Transit District
San Mateo Transportation Authority
ARGUMENTS IN SUPPORT : According to the author's office, this
bill closes potential loopholes to make sure that funds cannot
be transferred from the San Francisco Peninsula segment to other
segments of the high-speed rail system. In addition, the bill
clarifies that appropriated funds will be used solely to
implement the negotiated two-track "blended system" on the
Peninsula. Finally, the author's office contends this bill
provides a critical safeguard against expansion of the shared
system by requiring HSRA to obtain approval of any changes from
all nine entities that were party to the original MOU involving
the Peninsula segment. These protections are important because
of the level of mistrust of HSRA that exists with Bay Area
Peninsula residents and communities.
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JA:ej 5/21/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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