BILL ANALYSIS
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: sb 455
SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: Lowenthal
VERSION: 4/16/09
Analysis by: Art Bauer FISCAL: yes
Hearing date: April 21, 2009
SUBJECT:
High-speed rail
DESCRIPTION:
This bill provides the High-Speed Rail Authority (HSRA) with
certain eminent domain powers, establishes a policy for
prioritizing investments, and provides a process for reporting
on the progress of the high-speed rail project.
ANALYSIS:
Existing law:
1. Creates the HSRA with a nine member governing board,
including five members appointed by the governor, two
members appointed by the Senate Rules Committee, and two
members appointed by the Speaker of the Assembly.
2. Authorizes the HSRA to develop a high-speed rail system
extending from San Diego to Sacramento with Phase I being
between Anaheim-Los Angeles Union
Station-Bakersfield-Fresno-San Jose-San Francisco Transbay
Terminal. Proposition 1A, the Safe, Reliable High-Speed
Passenger Train Bond Act for the 21st Century, approved by
the voters last November provides up to $9 billion for the
development of the high-speed rail system.
3. Requires the approval of the Department of General
Services (DGS) before a state agency may acquire, or
dispose, of real property but exempts real property
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obtained for highway purposes by the Department of
Transportation (Caltrans).
4. Assigns various authorities to the Department of Finance
(DOF), to DGS, and to the State Public Works Board (SPWB)
related to the acquisition of property and the development
of infrastructure projects, but exempts Caltrans and other
large state agencies from these authorities.
5. Requires DGS to inventory state-owned property, other
than property owned by Caltrans.
6. Requires the approval of DOF and SPWB before a state
agency may expend funds from an appropriation for capital
outlay purposes, but exempts Caltrans? the University of
California, the California State University, and the
community colleges from this provision.
This bill:
1. In regard to property matters:
a. Exempts the HSRA from various statutory provisions
related to the acquisition and disposal of property that
requires the approval of the DOF.
b. Exempts the HSRA from securing the approval of DOF
or SPWB when expending funds appropriated for capital
outlay purposes.
c. Authorizes the HSRA to acquire an easement or
right-of-way without the securing the approval of the
director of DGS.
d. Prohibits the director of DGS from granting
easements across the property of the HSRA.
e. Authorizes the HSRA to negotiate, in the name of the
state, access to right-of-way it owns, including the
value of the right of access. The revenue received shall
be deposited in the State Transportation Fund.
f. Prohibits DGS from maintaining a property inventory
of the property owned by the HSRA.
1. Requires the five gubernatorial appointees to the
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HSRA to be confirmed by the Senate.
2. Establishes criteria for making investments with any
funds may available to Phase I of the high-speed rail
project, including:
a Enhancement of railroad access to stations and
terminals, with priority be given to those facilities
that serve the largest employment centers.
b Improvements to travel time, service reliability,
safety, and service frequency for existing commuter and
intercity passenger trains services.
c Improvement of the connection from the San Joaquin
Valley to Southern California and from the San Joaquin
Valley to the Bay Area.
1. Requires changes in contracts entered into by the HSRA
be approved by its governing board.
2. Requires the creation of an overall project schedule
with project delivery milestones for all aspects of the
high-speed rail project and the identification of the
elements of the project schedule that are critical to
ensuring the project remains on schedule. A report of on
the status of the schedule shall be made to the HSRA
governing board, with copies of the report being submitted
quarterly to the Legislature and the Legislative Analyst
Office.
COMMENTS:
1. Purpose . This bill provides the HSRA with authority to
facilitate the development of the high-speed rail service,
establishes legislative priorities for high-speed rail
investments, and provides a structure to ensure
accountability in the performance of its functions and
activities.
The Senate Transportation and Housing Committee has held
four oversight hearings on the HSRA in the last eighteen
months. It is clear from the hearings that the HSRA is
unequipped to move from a planning and promotional entity
to a project development entity without additional
authority and a structure of accountability. The passage of
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Proposition 1A now requires the creation of a structure of
accountability within the HSRA.
2. Management of Property . The HSRA staff has asked for
amendments to existing law that conforms the HSRA's
authority to that of Caltrans and other large state
agencies that develop large construction projects. The
basic laws governing these activities involve DGS, SPWB,
and DOF taking certain actions regarding property or the
contracting of professional and construction services for
most state agencies. Caltrans, the University of
California, and other large agencies are exempt form this
body of law and follow other procedures.
3. Appointees require confirmation . When the HSRA was first
established it was intended to expire after a period of
years. In 2002, legislation made HSRA permanent. With the
approval of Proposition 1A, it is appropriate to address
the appointment process for the governing board of the
HSRA. To this end, requiring the confirmation of the
governor's appointees is a standard practice. For example,
the Energy Commission, the California Transportation
Commission, and other state boards and commissions have
legislative appointees with gubernatorial appointees who
require confirmation by the Senate.
4. Project priorities . Proposition 1A allows the
Legislature to establish expenditure priorities for the
high-speed rail project. Without the establishment of
priorities for expending bond proceeds, there is the
possibility projects may be constructed and remained unused
for several years until the high-speed rail project is
completed and service actually begins. This bill endeavors
to ensure that projects built with bond proceeds have value
to Californians at the time the project is constructed. It
is for this reason that bill emphasizes that project built
for high-speed rail can be used for existing intercity and
commuter rail services until there is high-speed rail
service
5. Managerial accountability . With the HSRA becoming a
project development entity, it is necessary to ensure that
its activities regarding the management of contracts,
project budgets, and schedule are systemized and
transparent. This avoids surprises if projects are delayed
or encounter budgetary problems. SB 66 (Torlakson), Chapter
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375, Statutes of 2005, requires quarterly reports to the
Legislature on the status, including changes to the scope,
schedule and budget, of the Bay Bridge project. The
requirements of this bill are consistent with the practices
established for that project.
POSITIONS: (Communicated to the Committee before noon on
Wednesday,
April 15, 2009)
SUPPORT: None received.
OPPOSED: None received.