BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1813


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          Date of Hearing:  March 14, 2016


                        ASSEMBLY COMMITTEE ON TRANSPORTATION


                                 Jim Frazier, Chair


          AB 1813  
          (Frazier) - As Introduced February 8, 2016


          SUBJECT:  High-Speed Rail Authority:  membership


          SUMMARY:  Adds one member of the California State Assembly and  
          one member of the California State Senate to the California  
          High-Speed Rail Authority (Authority) Board of Directors, as  
          ex-officio, non-voting members.  Specifically, this bill:  


          1)Provides for the addition of two ex-officio, non-voting  
            members to the California High-Speed Rail Authority Board of  
            Directors:  one member of the California State Senate  
            appointed by the Senate Committee on Rules and one member of  
            the California State Assembly appointed by the Speaker of the  
            Assembly.  


          2)Provides that the ex-officio members would not vote on issues  
            before the Authority Board of Directors but shall participate  
            in the activities of the Authority to the extent that  
            participation is not incompatible with their positions as  
            Members of the Legislature.  


          3)Clarifies that only voting members of the Authority Board of  
            Directors shall elect a chairperson, constitute a quorum,  








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            receive compensation for Authority business, and receive  
            reimbursement for actual travel expenses.  


          EXISTING LAW:  


          1)Creates the Authority with specific powers and duties relative  
            to the development and implementation of an intercity  
            high-speed rail system in California.  


          2)Defines that the be composed of nine members with five members  
            appointed by the Governor, two members appointed by the Senate  
            Committee on Rules, and two members appointed by the Speaker  
            of the Assembly.  


          3)Defines the terms for office and filling vacancies.


          4)Authorizes members of the Authority to compensation for  
            authority business and actual travel expenses.  


          5)Authorizes the Authority to appoint an Executive Director and  
            key executives for various areas of management.  


          FISCAL EFFECT:  Unknown


          COMMENTS:  According to the author, the State of California and  
          its voters have committed billions of dollars of public funds to  
          the largest infrastructure project in the United States, and the  
          oversight of its ongoing development and construction is of  
          utmost importance to the Legislature.  To that end, by adding  
          two ex officio members, one member of the Assembly and one  
          member of the Senate, to the Authority Board of Directors  








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          consistent oversight regarding the development and construction  
          of the system could be enhanced.  Additionally, the ex-officio  
          members can serve as direct liaisons to the Legislature for  
          Members to have a better understanding of the workings of the  
          project and offer counsel and assistance from the legislative  
          branch perspective.  





          Currently, the Authority's Board of Directors provides oversight  
          of the planning, design and construction of the high-speed rail  
          system.  The Board of Directors reviews and approves contracts  
          entered into by the Authority and oversees ongoing work of the  
          Authority with public and private partners.  Additionally, the  
          Board of Directors oversees the hiring of the Executive Director  
          of the Authority, the top state executive; and the Authority's  
          Risk Manager and Auditor report directly to the Board to  
          identify risks or concerns for the project.  





          California's voters approved Proposition 1A in 2008 to provide  
          $9.95 billion in General Obligation bonds for the planning,  
          design and building of a high-speed rail system to connect San  
          Francisco and Los Angeles through the Central Valley.  In July  
          2012, the Legislature approved SB 1029 (Committee on Budget and  
          Fiscal Review), Chapter 152, Statutes of 2012, which  
          appropriated nearly $8 billion in federal funds and state bond  
          funds to begin the construction of the Initial Operating Section  
          (IOS) from Madera to Bakersfield.  Additionally, as part of the  
          2014-15 state budget, 25 percent of cap and trade revenues were  
          dedicated to the project.  In February 2016, the Authority  
          released its draft 2016 Business Plan which reconfigures the IOS  
          to travel from north of Bakersfield to San Jose by 2025 at a  
          cost of $20.9 billion with the full Phase one, from San  








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          Francisco to Los Angeles/Anaheim, projected to cost $64.2  
          billion.  





          In addition to the Authority Board of Directors, a critical part  
          of oversight of the high-speed rail project was created by AB  
          3034 (Galgiani), Chapter 267, Statues of 2008, which established  
          a Peer Review Group whose duty is to evaluate the Authority's  
          funding plans and prepare an independent judgment as to the  
          feasibility and the reasonableness of the Authority's plans,  
          appropriateness of assumptions, analyses and estimates, and any  
          observations or evaluations the group deems necessary.  As an  
          advisor to the Legislature on the Authority, the group has  
          recommended that the Legislature increase its direct oversight  
          of the program.  Adding two ex-officio members to the Authority  
          Board is a step in that direction. 





          Numerous other boards and commissions in California have  
          ex-officio, non-voting seats for members of the Assembly and the  
          Senate.  For example, in addition to the commissioners appointed  
          by the Governor and the Legislature, one member of the Assembly  
          and one member of the Senate are appointed to the California  
          Transportation Commission (CTC).  Currently, Assemblymember Jim  
          Frazier (D-Oakley), Chair of the Assembly Transportation  
          Committee, and Senator Jim Beall (D-San Jose), Chair of the  
          Senate Transportation and Housing Committee serve on the  
          commission. These members help provide critical oversight of the  
          Commission's programs, including the approval of thousands of  
          highway and rail projects and the expenditure of billions of  
          dollars in public funds.  Participation on the CTC by members of  
          the Legislature has provided valuable insight into the workings  
          of the state's transportation system, including the roles of  








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          regional and local government partners and stakeholders.   
          Attendance at meetings and access to briefing materials and  
          department staff keep legislative members involved on a more  
          consistent basis than legislative oversight hearings may afford.  
           





          In addition to the CTC, members of the Legislature also serve on  
          the Delta Protection Commission, the Central Valley Flood  
          Protection Board and the California State Park and Recreation  
          Commission.    





          Related Legislation: AB 2382 (Lopez) which would add at least  
          one member to the High-Speed Rail Authority who works directly  
          with communities in the state that are most significantly  
          burdened by, and vulnerable to, high levels of pollution.  AB  
          2382 is currently awaiting hearing in this committee.





          REGISTERED SUPPORT / OPPOSITION:




          Support


          Association for California High Speed Trains









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          Opposition


          None on file




          Analysis Prepared by:Melissa White / TRANS. / (916) 319-2093