BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1830
                                                                  Page  1

          Date of Hearing:   April 21, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 1830 (Galgiani) - As Amended:  April 8, 2010

          Policy Committee:                               
          TransportationVote:12-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the California High-Speed Rail Authority to  
          make every effort to purchase high-speed train rolling stock and  
          related equipment manufactured in California, consistent with  
          federal law and any other applicable provision of state law. 

           FISCAL EFFECT  


          No direct fiscal effect.  The bill does not exempt the authority  
          from following any provisions of applicable state or federal law  
          with respect to awarding purchase contracts.


           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.   
            With the passage of the Bond Act plus California's award and  
            pending receipt of $2.25 billion in federal ARRA high-speed  
            rail funds, the authority will soon be tasked to approve major  
            purchases of train rolling stock and equipment.  By requiring  
            the authority to make every effort to purchase train equipment  
            and rolling stock manufactured in California, this bill,  
            sponsored by the California Labor Federation, is intended to  
            spur companies to relocate to this state. 

           2)Related Legislation  .  AB 1747, also on today's committee  








                                                                  AB 1830
                                                                  Page  2

            agenda, authorizes the 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.

           3)Prior Legislation  .  Last year, the author's AB 733, which was  
            identical to AB 1830, 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