BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 409|
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                                 THIRD READING


          Bill No:  SB 409
          Author:   Ducheny (D)
          Amended:  1/26/10
          Vote:     21

           
          PRIOR VOTES NOT RELEVANT


           SUBJECT  :    High-Speed Rail Authority

           SOURCE  :     Author


           DIGEST  :    This bill places the High-Speed Rail Authority  
          (HSRA) within the Business, Transportation and Housing  
          Agency (BT&H), requires the five members appointed to the  
          HSRA by the Governor be confirmed by the Senate, requires  
          the HSRA submit an annual funding plan to the California  
          Transportation Commission for approval, and requires BT&H  
          to prepare a five-year Strategic Rail Connectivity plan.

           Senate Floor Amendments  of 1/26/10 delete the prior content  
          of the bill, which created a Department of Railroads in the  
          BT&H, and instead add the current language.

           ANALYSIS  :    

          Existing law:  

          1. Creates the Department of Transportation (Caltrans) in  
             the BT&H.  An undersecretary of the BT&H is required to  
             oversee Caltrans matters. 
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          2. Creates within Caltrans a division of rail, which is  
             responsible for the development of a comprehensive rail  
             passenger system and the preparation of the rail  
             passenger development plan.

          3. Requires capital expenditures for intercity rail  
             projects funded from the state's Public Transit Account  
             to be included in the State Transportation Improvement  
             Program, which is a five-year state transportation  
             capital outlay program, adopted every two-years by the  
             California Transportation Commission (CTC). 

          4. Authorizes that the state rail program be funded from  
             the Public Transit Account for state operations and from  
             the State Highway Account for the grade separation  
             program and the grade crossing program.

          5. Authorizes $400 million for rail capital programs from  
             Proposition 1B, the Highway Safety, Traffic Reduction,  
             Air Quality, and Port Security Bond Act of 2006, and  
             $190 million for capital programs from 2008's  
             Proposition 1A, the Safe, Reliable High-Speed Passenger  
             Train Bond Act for the 21st Century.

          6. Establishes the HSRA, which is governed by five members  
             appointed by the Governor, two members appointed by the  
             Senate Rules Committee, and two members appointed by the  
             Speaker of the Assembly. 

          This bill:

          1. Incorporates the HSRA into BT&H. 

          2. Requires Senate confirmation of the Governor's five  
             appointees to the HSRA.  

          3. Requires the HSRA to submit an annual funding plan to  
             the CTC for approval.  The plan shall include  
             investments to be made during the upcoming fiscal year  
             and the amount of bond sales necessary to finance the  
             investments.

          4. Makes BT&H responsible for the preparation of a  







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             Strategic Rail Connectivity plan.  The purpose of the  
             Strategic Rail Connectivity plan is to identify  
             opportunities for passenger rail system improvements  
             that ensure there are linkages between the proposed  
             high-speed rail system and the conventional intercity  
             and commuter rail services in the state.  The strategic  
             plan shall be submitted to the CTC for approval on 
          September 1, 2011, and every five years thereafter.  When  
             allocating passenger rail funds, the CTC shall insure  
             that the projects are consistent with the adopted  
             Strategic Rail Connectivity plan. 

           Background  

          In 1996, the California High-Speed Rail Authority was  
          created with responsibility for planning, constructing, and  
          operating a high-speed train system serving California's  
          major metropolitan areas.  With passage of Proposition 1A,  
          the Safe, Reliable High-Speed Passenger Train Bond Act for  
          the 21st Century, the HSRA is responsible for developing  
          high-speed rail service between Anaheim-Los  
          Angeles-Bakersfield-San Jose-San Francisco. This service is  
          to be developed as a public-private partnership, with  
          private, state, and federal funding. Proposition 1A  
          specified that the service cannot rely upon state, federal,  
          or local operating subsidies. 

           Related Legislation
           
          SB 455 (Lowenthal) requires the Governor's appointees to  
          the HSRA to be subject to Senate confirmation, establishes  
          criteria for selecting high-speed rail projects, and  
          provides the HSRA with eminent domain authority similar to  
          the authority assigned to Caltrans and the Department of  
          Water Resources.

          AB 1375 (Galgiani) creates a Department of High-Speed Rail  
          to manage and implement the high-speed rail program  
          described in Proposition 1A and other statutes. The  
          management of this department is overseen by the governing  
          board of the HSRA. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No







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           Unknown.


          JJA:mw  1/27/10   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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