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 ----------------------------------------------------------------- |Author: |Frazier | |----------+------------------------------------------------------| |Version: |2/8/2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Manny Leon | |: | | ----------------------------------------------------------------- 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 -- END --