BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1889 (Mullin) - High-Speed Rail Authority:  high-speed train  
          operation
          
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          |Version: August 1, 2016         |Policy Vote: T. & H. 6 - 4      |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 11, 2016   |Consultant: Mark McKenzie       |
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          *********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
             The following information is revised to reflect amendments 
                     adopted by the committee on August 11, 2016






          Bill  
          Summary:  AB 1889 would explicitly allow for the expenditure of  
          specified bond proceeds on a high-speed rail corridor or usable  
          segment if the project would enable high-speed trains to operate  
          either immediately or after additional planned investments are  
          made.  


          Fiscal  
          Impact:  
           Potential accelerated expenditure of $1.1 billion in  
            previously-appropriated bond funds, relative to current law  
            (High-Speed Passenger Train Bond Fund).  This bill would  







          AB 1889 (Mullin)                                       Page 1 of  
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            explicitly allow for expenditure of bond funds in the  
            near-term for projects that benefit passenger train service  
            without providing all necessary funding for investments in a  
            usable segment that would be necessary for the immediate  
            operation of high-speed trains.  Absent the bill, these funds  
            may not be available for project expenditures prior to the  
            expiration of the June 30, 2018 encumbrance limitation tied to  
            the previous appropriation of bond funds.




          Author  
          Amendments:  Make several technical and clarifying changes to  
          the bill. Specifically this bill would:
           Clarify that investments in the bookends are consistent with  
            Proposition 1A and the definition of the system, as specified  
            in SB 1029 (Budget and Fiscal Review Committee), Chap.  
            152/2012.


           Explicitly specify that the bond proceeds referenced in the  
            bill are those appropriated by SB 1029.


           Add co-authors and make several technical changes.




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