BILL ANALYSIS
AB 1747
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Date of Hearing: April 5, 2010
ASSEMBLY COMMITTEE ON TRANSPORTATION
Bonnie Lowenthal, Chair
AB 1747 (Galgiani) - As Introduced: February 28, 2010
SUBJECT : California High-Speed Rail Authority: California job
creation
SUMMARY : Authorizes the California High-Speed Rail Authority
(Authority) to consider, to the extent permitted by federal law
and all other applicable provisions of state law, the creation
of jobs in California when awarding major contracts or
purchasing high-speed trains and related equipment and supplies.
EXISTING LAW :
1)Requires contracts for the purchase of supplies for state or
local government use to include provisions granting
preferences for supplies grown, manufactured, or produced in
California. Authorizes the use of the preference when
in-state products and supplies do not exceed more than 5% of
the price of the lowest bid for goods and supplies
manufactured out-of-state.
2)Establishes procedures for competitive bidding of certain
contracts by public entities and requires them to give
California companies preference on construction contracts
against nonresident contractors. The preference is equal to
any preference that the nonresident contractor receives on
public works contracts in its state of residency.
3)Requires state and local governmental entities, for the
construction or repair of public works or for the purchasing
of materials and supplies for public use, to utilize, with
certain exceptions, materials produced in the United States.
4)Requires the Employment Development Department, the Employment
Training Panel, the local Job Training Partnership Act service
delivery area, and the local community colleges, to the extent
funds are available, to develop and provide appropriate
training programs for local workers for the construction and
operation of the Superconducting Super Collider project.
Requires that preference be given to the hiring of qualified
AB 1747
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local workers.
5)Requires the California Energy Commission, in maximizing the
goals of the Alternative and Renewable Fuel and Vehicle
Technology Program, to provide preferential funding based upon
criteria that includes, among other items, to those projects
that "provides economic benefits for California by promoting
California-based technology firms, jobs, and businesses."
6)Establishes the Authority and charges it with the planning,
designing, constructing, operating, and maintaining a
state-of-the-art high-speed train system for California.
7)Enacts the Safe, Reliable High-Speed Passenger Train Bond Act
for the 21st Century (Bond Act). The Bond Act, 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.
8)Authorizes, through enactment of the American Recovery and
Reinvestment Act of 2009 (the recently enacted federal
economic stimulus package), $2.25 billion for the planning and
construction of Phase 1 of the high-speed rail passenger
system in California.
FISCAL EFFECT : According to the Assembly Appropriations
Committee's analysis of AB 733 (Galgiani) of 2009, an identical
bill introduced by the author last year, the bill would
"probably have no direct fiscal effect, as the bill neither
requires nor allows the Authority to award contracts to other
than the lowest bidder, or in the case of negotiated contracts,
to the most qualified firm."
COMMENTS : According to the author, this bill "seeks to maximize
the number of California-based jobs that will be created by
contracts for the construction of the High-Speed Train (HST)
project and the purchase of materials related to it as a means
to improve and strengthen the California economy and job base?AB
733 simply authorizes the Authority to consider the creation of
California jobs as an additional criterion or factor when
awarding major construction, equipment or supply contracts for
the HST project. The permission would extend only as far as
other applicable provisions of state or federal law permit."
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Various existing state laws currently require, to some extent,
specific state agencies to use California preferences in the
purchase of goods and supplies as well as in the letting of
certain construction contracts. This bill, however, does not
require the Authority to impose a California preference but
authorizes it to consider, to the extent allowed by federal and
state laws, the creation of California jobs when it awards a
contract for the high-speed rail project.
This bill is a reintroduction of AB 733 (Galgiani) of 2009. The
Governor vetoed AB 733, indicating that the bill "could result
in unnecessary additional costs and delays and may jeopardize
the success of the project in securing the billions of dollars
that are needed to construct this project."
Related bill : AB 1830 (Galgiani) of 2010, requires the
Authority to make every effort to purchase high-speed train
rolling stock and related equipment that are manufactured in
California. AB 1830 is being heard in this committee.
REGISTERED SUPPORT / OPPOSITION :
Support
State Building and Construction Trades Council of California
Opposition
None on file
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093