BILL ANALYSIS
AB 1375
Page 1
Date of Hearing: January 21, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 1375 (Galgiani) - As Amended: January 15, 2010
Policy Committee:
TransportationVote:9-4
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill establishes a Department of High-Speed Trains, to be
responsible for planning, design, construction, and operation of
high-speed trains in the state. Specifically, this bill:
1)Establishes the department within the Business, Transportation
and Housing Agency (BTHA), to implement policies established
by the High-Speed Rail Authority, which would continue to
exist as the policy and project programming body for
high-speed projects.
2)Transfers certain of the authority's existing powers and
responsibilities to the department, and specifies additional
powers and duties of the authority and department relative to
implementation of the high-speed rail project.
3)Stipulates the director of the department shall be appointed
by and serve at the pleasure of the governor.
4)Provides that the organization of the department may include
an executive staff of up to 10 employees appointed by the
governor and exempt from civil service, who shall serve at the
pleasure of the director.
5)Requires that compensation for the director and exempt
positions be established by the authority at amounts needed to
attach and hold qualified persons, and to be based on a salary
survey, as specified, that the authority must conduct using
independent outside advisors.
6)Authorizes the department to acquire property, including
AB 1375
Page 2
through eminent domain, as deemed necessary for developing the
state's high-speed train program, and to employ its own legal
staff or contract with other state agencies for legal
services.
FISCAL EFFECT
Likely moderate additional administrative and operating costs
associated with establishing a separate department, distinct
from the existing authority, to implement the high-speed rail
program. These costs are unknown, but would be in the range of
several hundred thousand dollars annually (bond funds).
COMMENTS
1)Purpose . The Safe, Reliable High-Speed Passenger Train Bond
Act for the 21st Century, approved as Proposition 1A in
November 2008, provides $9.95 billion in general obligation
bond authority to fund the planning and construction of a
high-speed passenger train system and complementary
improvements to other specified rail systems in the state. The
bond act establishes a 2.5% cap on the use of bond proceeds
for administrative purposes, with actual amounts to be
appropriated in the annual Budget Act. This cap may be
adjusted up to 5% by statute.
According to the author, this bill "helps protect the state's
interests and establishes further oversight of the activities
and use of the funds to be invested in the high-speed train
project following voter approval of Proposition 1A, and
ensures that an adequate public forum and transparency is
maintained regarding the development of the high-speed train
project."
2)Related Legislation . SB 409 (Ducheny), pending in the Senate,
creates a Department of Railroads in the BTHA, with the
authority as a division within the new department.
SB 455 (Lowenthal), 2009, pending in the Assembly, clarifies
AB 1375
Page 3
and expands the authority of the Authority.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081