BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 455
                                                                  Page  1

          Date of Hearing:   July 15, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                  SB 455 (Lowenthal) - As Amended:  April 16, 2009 

          Policy Committee:                               
          TransportationVote:10-4

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill provides the High-Speed Rail Authority (HSRA) with  
          eminent domain powers and places additional administrative and  
          reporting requirements on the authority.  Specifically, this  
          bill:

          1)Exempts HSRA from various statutory provisions related to the  
            acquisition and disposal of property, rights-of way, and  
            easements that otherwise require approval of the Department of  
            General Services, the State Public Works Board, or the  
            Department of Finance.  These provisions provide HSRA with  
            similar statutory authority granted to the Department of  
            Transportation (Caltrans) and several other state agencies in  
            property matters. 

          2)Requires a project schedule, including project delivery  
            milestones, to be presented to HSRA board each calendar  
            quarter, beginning March 31, 2010.  Copies of the report must  
            be submitted to the Legislature and Legislative Analyst's  
            Office.  

          3)Requires HSRA, beginning with the first board meeting after  
            March 31, 2010, to approve a quarterly report on the status of  
            any contracts with firms providing professional services and  
            requires HSRA to approve any amendments to contracts at a  
            scheduled board meeting.  

          4)Requires capital outlay projects undertaken by HSRA to be  
            consistent with one or more specified criteria.  

          5)Requires Senate confirmation of the five governor-appointed  








                                                                  SB 455
                                                                  Page  2

            members of the HSRA board.

           FISCAL EFFECT  

          1)Additional ongoing bond-funded costs of around $100,000 for an  
            additional staff person to accommodate the quarterly reporting  
            and other administrative requirements.

          2)Likely administrative costs savings from providing the HSRA  
            with direct authority over property-related matters.

           COMMENTS  

           1)Purpose  .  With passage of the High-Speed Rail Bond Act in  
            November 2008, HSRA will be transitioning from a small study  
            and planning organization to a multi-billion dollar  
            engineering and construction agency.  This bill provides HSRA  
            with authority to facilitate the development of the high-speed  
            rail service, establish legislative priorities for high-speed  
            rail investments, consistent with the statutory authority  
            conferred, and provide a structure intended to ensure  
            accountability in the performance of its functions and  
            activities.  

            Few projects compare in scope and complexity to projects such  
            as the California high-speed rail passenger project.  Such  
            mega-projects often experience large cost escalations and  
            schedule delays.  The quarterly reporting required in this  
            bill will provide the Legislature and HSRA board with  
            consistent and continuous reporting on the project's status.

           2)Related Legislation  .  SB 783 (Ashburn), also on today's  
            committee agenda, revises the contents of the HSRA business  
            plan and requires it to prepare, publish, and adopt the plan  
            on a continuing basis, starting on January 1, 2012, and every  
            two years thereafter. 

            AB 153 (Ma), pending in the Senate Transportation and Housing  
            Committee, clarifies HSRA's ability to exercise eminent domain  
            and authorizes the authority to employ its own legal staff or  
            to contract with other state agencies for legal services.

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