BILL ANALYSIS
AB 1747
Page 1
ASSEMBLY THIRD READING
AB 1747 (Galgiani)
As Amended April 14, 2010
Majority vote
TRANSPORTATION 13-1 APPROPRIATIONS 15-1
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|Ayes:|Bonnie Lowenthal, |Ayes:|Fuentes, Conway, Ammiano, |
| |Jeffries, | |Bradford, Charles |
| |Bill Berryhill, | |Calderon, Coto, Davis, |
| |Blumenfield, Buchanan, | |Nava, Hall, Miller, |
| |Eng, Furutani, Galgiani, | |Nielsen, Skinner, |
| |Hayashi, Miller, Niello, | |Solorio, Torlakson, |
| |Portantino, Solorio | |Torrico |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Norby |Nays:|Norby |
| | | | |
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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, including,
but not limited to, the purchasing of 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.
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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)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.
5)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.
6)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, no direct fiscal effect, as this 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 : 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?This bill 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."
Various existing state laws currently require, to some extent,
specific state agencies to use California preferences in the
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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 passed out of the Assembly Transportation
Committee and the Assembly Appropriations Committee.
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093
FN: 0003979