BILL ANALYSIS Ó
SB 557
Page 1
SENATE THIRD READING
SB 557 (Hill)
As Amended May 2, 2013
Majority vote
SENATE VOTE :30-5
TRANSPORTATION 13-2 APPROPRIATIONS 13-4
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|Ayes:|Lowenthal, Linder, |Ayes:|Gatto, Bocanegra, |
| |Achadjian, Ammiano, | |Bradford, |
| |Bloom, Bonta, Buchanan, | |Ian Calderon, Campos, |
| |Daly, Gordon, Gatto, | |Eggman, Gomez, Hall, |
| |Holden, Nazarian, | |Holden, Linder, Pan, |
| |Quirk-Silva | |Quirk, Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Morrell, Patterson |Nays:|Harkey, Bigelow, |
| | | |Donnelly, Wagner |
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SUMMARY : Restates various provisions in existing law related to
funds appropriated by the Legislature for the development of
high-speed rail in the San Francisco Bay Area. Specifically,
this bill :
1)Makes funds available only for improvements consistent with
the Memorandum of Understanding (MOU) approved prior to the
appropriation between California High-Speed Rail Authority
(HSRA) and local partners.
2)Prohibits 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 that the requirement to use funds consistent with the
MOU and the prohibition on the use of funds for purposes other
than the San Francisco-to-San Jose Peninsula corridor remain
in effect as long as the appropriation for the "bookend"
segments remains available for encumbrance.
4)Requires approval from all parties to the MOU to expand the
system beyond the "blended system" planned for the Peninsula
SB 557
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corridor.
EXISTING LAW :
1)Creates the HSRA to direct development and implementation of
inter-city high-speed rail service.
2)Authorizes, by voter approval of Proposition 1A, $9.95 billion
in general obligation bonds for the high-speed rail project.
3)Appropriates bond funds for expenditure, including $1.1
billion for investment in the "bookend" segments of the system
located in the northern and southern California regions.
4)Requires extensive reporting by the HSRA with respect to the
appropriation for projects in the "bookend" segments and makes
funds available only for improvements consistent with the MOU
approved prior to the appropriation between HSRA and the local
partners.
5)Prohibits 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.
6)Requires HSRA to enter into a project management and funding
agreement with the local sponsor of the project.
7)Requires audits of bond fund expenditures to affirm HSRA acts
accordance with established criteria and existing agreements.
8)Makes funds available for encumbrance or liquidation until
June 30, 2018.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, negligible fiscal impact, as this bill restates
current requirements for expenditure of the appropriated funds.
COMMENTS : According to the author, 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
SB 557
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appropriated funds will be used solely to implement the
negotiated two-track blended system on the San Francisco
Peninsula. Finally, the author contends this bill provides a
critical safeguard against expansion of the shared system by
requiring HSRA to obtain approval for any changes from all nine
entities that were party to the original MOU involving the San
Francisco Peninsula segment. The author feels that these
protections are important to ensure that the HSRA continues to
honor existing agreements and funding restrictions.
All of the protections provided in this bill already exist
either explicitly or implicitly in current law. Additionally,
all provisions in the state budget appropriations remain
attached to the funds as long as the funds are available for
expenditure and cannot be changed or adjusted without new
legislation. Therefore, all the restrictions stated in existing
law as well as in this bill will continue to govern the
high-speed rail fund expenditures unless the Legislature passes,
and the Governor approves, legislation directing otherwise.
Despite the fact that this bill simply restates existing law and
highlights existing agreements, the author feels it is important
to explicitly outline existing agreements between the HSRA and
MOU signatory entities and conditions set forth in the budget.
Analysis Prepared by : Victoria Alvarez / TRANS. / (916) 319-
2093
FN: 0001679