BILL NUMBER: AB 1768	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Gallagher
   (Principal coauthor: Assembly Member Wilk)
   (Coauthors: Assembly Members Travis Allen, Baker, Brough, Harper,
Jones, Obernolte, and Patterson)

                        FEBRUARY 3, 2016

   An act to add Section 2704.096 to the Streets and Highways Code,
relating to bond proceeds, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1768, as introduced, Gallagher. Bonds: transportation.
   Existing law, the Safe, Reliable High-Speed Passenger Train Bond
Act for the 21st Century, approved by the voters as Proposition 1A at
the November 4, 2008, statewide general election, provides for the
issuance of $9 billion in general obligation bonds for high-speed
rail purposes and $950,000,000 for other related rail purposes.
Article XVI of the California Constitution requires measures
authorizing general obligation bonds to specify the single object or
work to be funded by the bonds and further requires a bond act to be
approved by a 2/3 vote of each house of the Legislature and a
majority of the voters.
   This bill would provide that no further bonds shall be sold for
high-speed rail purposes pursuant to the Safe, Reliable High-Speed
Passenger Train Bond Act for the 21st Century, expect as specifically
provided with respect to an existing appropriation for high-speed
rail purposes for early improvement projects in the Phase 1 blended
system. The bill, subject to the above exception, would require
redirection of the unspent proceeds received from outstanding bonds
issued and sold for other high-speed rail purposes prior to the
effective date of these provisions, upon appropriation, for use in
retiring the debt incurred from the issuance and sale of those
outstanding bonds. The bill, subject to the above exception, would
also require the net proceeds of other bonds subsequently issued and
sold under the high-speed rail portion of the bond act to be made
available, upon appropriation, to fund projects in the state highway
operation and protection program. The bill would make no changes to
the authorization under the bond act for issuance of $950,000,000 for
rail purposes other than high-speed rail. These provisions would
become effective only upon approval by the voters at the next
statewide election.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 2704.096 is added to the Streets and Highways
Code, to read:
   2704.096.  (a) (1) Notwithstanding any other provision of this
chapter, and except as provided in paragraph (2), no further bonds
shall be issued and sold for purposes of Section 2704.06 on and after
the effective date of this section.
   (2) This section shall not apply to bonds issued and sold for
purposes of Section 2704.06 with respect to the appropriation in Item
2665-104-6043 of Section 2.00 of the Budget Act of 2012, as added by
Section 3 of Chapter 152 of the Statutes of 2012.
   (b) Notwithstanding any other provision of this chapter, and
except as otherwise provided in paragraph (2) of subdivision (a), the
unspent proceeds received from outstanding bonds issued and sold
pursuant to Section 2704.06 prior to the effective date of this
section shall, upon appropriation by the Legislature, be redirected
from high-speed rail purposes for use in retiring the debt incurred
from the issuance and sale of those outstanding bonds.
   (c) Notwithstanding any other provision of this chapter, the
remaining unissued bonds, as of the effective date of this section,
that were previously authorized pursuant to Section 2704.06, except
as otherwise provided in paragraph (2) of subdivision (a), are hereby
authorized to be issued and sold, with the net proceeds to be made
available, upon appropriation by the Legislature, to fund projects in
the state highway operation and protection program.
  SEC. 2.  Section 1 of this act would modify the single object or
work of a general obligation bond act previously submitted to the
voters by the Legislature pursuant to Section 1 of Article XVI of the
California Constitution, and subsequently approved by the voters as
Proposition 1A at the November 4, 2008, statewide general election.
Accordingly, Section 1 of this act shall become effective only upon
approval by the voters. The Secretary of State shall submit Section 1
of this act to the voters on the ballot of the next statewide
election.
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to provide for the submission of modifications of a
general obligation bond act to the voters as quickly as possible, it
is necessary for this act to take effect immediately.