BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1747
                                                                  Page  1

          Date of Hearing:   April 21, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 1747 (Galgiani) - As Amended:  April 14, 2010

          Policy Committee:                               
          TransportationVote:13-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill authorizes the High-Speed Rail Authority, when  
          awarding major contracts or purchasing high-speed trains and  
          related equipment, to consider, to the extent permitted by  
          federal law and all other applicable provisions of state law,  
          the creation of jobs in California.

           FISCAL EFFECT  


          No direct fiscal effect, as the bill neither requires nor allows  
          the authority to award contracts to other than the lowest  
          bidder, except in cases where current state law provides a  
          preference for in-state products or services.  In the case of  
          negotiated contracts, the authority would still have to award  
          contracts to the most qualified firm.


           COMMENTS  

           1)Purpose  .  The High-Speed Rail Bond Act, approved by the voters  
            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.  
            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 1747
                                                                  Page  2


           2)Related Legislation  .  AB 1830 (Galgiani), also on today's  
            committee agenda, requires the authority to make every effort  
            to purchase high-speed train rolling stock and related  
            equipment manufactured in California.

           3)Prior Legislation  .  Last year, the author's identical bill (AB  
            733), was vetoed.  The governor argued 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."

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081