BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          AB 1813           Hearing Date:     June 14,  
          2016
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          |Author:   |Frazier                                               |
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          |Version:  |2/8/2016                                              |
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          |Urgency:  |No                     |Fiscal:      |Yes             |
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          |Consultant|Manny Leon                                            |
          |:         |                                                      |
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          SUBJECT:  High-Speed Rail Authority:  membership


            DIGEST:  This bill adds one member of the California State  
          Assembly and one member of the California State Senate to the  
          California High-Speed Rail Authority (HSRA) Board of Directors,  
          as ex-officio, non-voting members.

          ANALYSIS:
          
          Existing law:
          
          1)Creates the HSRA with specific powers and duties relative to  
            the development and implementation of an intercity high-speed  
            rail system in California. 
           
          2)Defines that the HSRA board 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 the HSRA to appoint an executive director and key  
            executives for various areas of management.  

          This bill:

          1)Provides for the addition of two ex-officio, non-voting  







          AB 1813 (Frazier)                                  Page 2 of ?
          
          
            members to the HSRA 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 HSRA Board of Directors but shall participate in  
            the activities of the HSRA to the extent that participation is  
            not incompatible with their positions as Members of the  
            Legislature.  

          3)Clarifies that only voting members of the HSRA Board of  
            Directors shall elect a chairperson, constitute a quorum,  
            receive compensation for HSRA business, and receive  
            reimbursement for actual travel expenses.  

          COMMENTS:

          1)Purpose.  The author asserts, "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 HSRA Board of Directors,  
            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."

          2)Brief history of HSRA.  In 1993, California established the  
            Intercity High-Speed Rail Commission to develop a framework  
            for creating a statewide high-speed rail system.  Following a  
            study released by the Commission in 1996 indicating the  
            feasibility of such a statewide system, the Legislature passed  
            SB 1420 (Kopp, Chapter 796, Statutes of 1996), which  
            established the HSRA and directed it to continue planning for  
            the system.  HSRA serves as the administrative body, with  
            primary responsibility for overseeing the planning and  
            construction of the high-speed rail system. 

            Several years later, on November 4, 2008, the voters of  
            California passed Proposition 1A, "to initiate the  








          AB 1813 (Frazier)                                  Page 3 of ?
          
          
            construction of a high-speed train system that connects the  
            San Francisco Transbay Terminal to Los Angeles Union Station  
            and Anaheim, and links the state's major population centers,  
            including Sacramento, the San Francisco Bay Area, the Central  
            Valley, Los Angeles, the Inland Empire, Orange County, and San  
            Diego."  Proposition 1A authorized the issuance and sale of  
            $9.95 billion in general obligation bonds "upon appropriation  
            by the Legislature" to begin construction of the high-speed  
            train system.  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 are to be continuously appropriated  
            to the project.

          3)Other state commissions.  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, the Assembly and Senate each appoint one  
            ex-officio member to the California Transportation Commission.

          RELATED LEGISLATION: 


          AB 2847 (Patterson) - requires the HSRA to include projected  
          financing costs, for a proposed segment or combination of  
          segments, in the business plan.  Further, requires HSRA to  
          identify any significant changes in scope for segments  
          identified in the previous business plan or project update  
          report, and provide an explanation of adjustments in cost and  
          schedule attributable to those changes. This bill is pending  
          hearing in this committee.


          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  Yes     
          Local:  No


          Assembly Votes:

            Floor:         76-0
            Approps:  18-0








          AB 1813 (Frazier)                                  Page 4 of ?
          
          
            Trans:         16-0
          


          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  Yes     
          Local:  No


            POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          June 8, 2016.)
          
            SUPPORT:  

          Association for California High Speed Trains

          OPPOSITION:

          None received 
          
          

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