BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 733|
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THIRD READING
Bill No: AB 733
Author: Galgiani (D)
Amended: As introduced
Vote: 21
SENATE TRANSPORTATION & HOUSING COMM : 9-1, 7/7/09
AYES: Lowenthal, Huff, Ashburn, DeSaulnier, Harman, Kehoe,
Pavley, Simitian, Wolk
NOES: Hollingsworth
NO VOTE RECORDED: Oropeza
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 73-0, 5/14/09 - See last page for vote
SUBJECT : High-Speed Rail Authority
SOURCE : Author
DIGEST : This bill makes the number of jobs created in
California a criterion for awarding contracts to suppliers
of equipment to the High-Speed Rail Authority
ANALYSIS : Existing law:
1.Creates the California High-Speed Rail Authority (HSRA)
with a nine member governing board, including five
members appointed by the governor, two members appointed
by the Senate Rules Committee, and two members appointed
by the Speaker of the Assembly.
CONTINUED
AB 733
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2
2.Authorizes the HSRA to develop a high-speed rail system
extending from San Diego to Sacramento with Phase I being
between Anaheim-Los Angeles Union
Station-Bakersfield-Fresno-San Jose-San Francisco
Transbay Terminal. Proposition 1A, the Safe, Reliable
High-Speed Passenger Train Bond Act for the 21st Century,
approved by the voters last November, provides up to $9
billion for the development of the high-speed rail
system.
3.Limits the expenditure of bond revenues for the
construction of the high-speed rail system to not more
than 50 percent of the cost of building the system.
4.Requires that 90 days prior to submitting to the governor
an initial request for an appropriation of bond proceeds
for capital expenditures, the HSRA shall convene a peer
review committee to review the detailed funding plan for
the proposed project.
5.Authorizes the HSRA to enter into contracts with private
or public entities for the design, construction, and
operation of high-speed trains.
This bill authorizes the HSRA to consider the creation of
jobs in California when awarding major contracts or
purchasing high-speed trains and related equipment and
supplies, to the extent permitted by federal law and other
state laws.
Comments
High-speed rail project will create jobs . The number of
construction jobs created by a heavy engineering project
such as high-speed rail is assumed to be between 18,000 and
32,000 jobs for every $1 billion of expenditure. If it is
assumed that for every $1 billion of heavy construction
approximately 25,000 direct and indirect jobs are created,
the number of jobs create by the project could exceed
800,000. The high-speed rail project will have a very
beneficial effect on the construction sector of the
California's economy.
AB 733
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3
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/18/09)
California Association of Regional Occupational Centers and
Programs
California High Speed Rail Authority
State Building and Construction Trades Council of
California
ARGUMENTS IN SUPPORT : According to the author's office,
this bill seeks to maximize the number of California-based
jobs that will be created by the construction of the
high-speed train project as a means to improve and
strengthen the California economy and job base. The bill
achieves this by encouraging the HSRA to give preference
when awarding contract to suppliers that will manufacture
their products in California. Keeping existing employment
and businesses and growing California's job base and
economic activity will help the state meet its service and
infrastructure needs for the future. The author argues,
"To the extent allowed by law, the state of California
should undertake any actions that will create job growth
and provide a stimulus to the economy."
ASSEMBLY FLOOR :
AYES: Adams, Anderson, Arambula, Beall, Bill Berryhill,
Tom Berryhill, Blakeslee, Block, Blumenfield, Brownley,
Buchanan, Caballero, Charles Calderon, Carter, Chesbro,
Conway, Cook, Coto, Davis, De La Torre, De Leon, Duvall,
Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuller,
Furutani, Galgiani, Garrick, Gilmore, Hagman, Hall,
Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,
Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie
Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,
Niello, Nielsen, John A. Perez, V. Manuel Perez,
Portantino, Price, Ruskin, Salas, Silva, Skinner,
Solorio, Audra Strickland, Swanson, Torlakson, Torres,
Torrico, Tran, Villines, Yamada
NO VOTE RECORDED: Ammiano, DeVore, Fuentes, Gaines,
Saldana, Smyth, Bass
AB 733
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JA:nl 8/18/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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