BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  SB 652
          Author:   Huff (R)
          Amended:  4/30/09
          Vote:     27 - Urgency

           
           SENATE LOCAL GOVERNMENT COMMITTEE  :  4-0, 5/6/09
          AYES:  Wiggins, Cox, Kehoe, Wolk
          NO VOTE RECORDED:  Aanestad


           SUBJECT  :    Alameda Corridor-East Construction Authority

           SOURCE  :     Alameda Corridor-East Construction Authority


           DIGEST  :    This bill declares that the San Gabriel Valley  
          Council of Governments and the Alameda Corridor-East  
          Construction Authority are political subdivisions of the  
          state.  This bill states that this provision is declaratory  
          of existing law.  This bill also states that the San  
          Gabriel Valley Council of Government and the Alameda  
          Corridor-East Construction Authority are eligible to apply  
          for state and federal funds, including the Federal Railroad  
          Administration Capital Grants Program for Rail Line  
          Relocation and Improvement Projects.

           ANALYSIS  :    The Joint Exercise of Powers Act allows two or  
          more public agencies to exercise their common powers by  
          signing a joint powers agreement.  Sometimes an agreement  
          creates a joint powers authority (JPA).  The San Gabriel  
          Valley Council of Governments (COG) is a JPA consisting of  
          29 cities in the San Gabriel Valley of Los Angeles County,  
                                                           CONTINUED





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          the County of Los Angeles, and three municipal water  
          districts.

          This bill declares that the San Gabriel Valley Council of  
          Governments and the Alameda Corridor-East Construction  
          Authority are political subdivisions of the state.  This  
          bill states that this provision is declaratory of existing  
          law.  This bill also states that the San Gabriel Valley  
          Council of Government and the Alameda Corridor-East  
          Construction Authority are eligible to apply for state and  
          federal funds, including the Federal Railroad  
          Administration Capital Grants Program for Rail Line  
          Relocation and Improvement Projects.

           Comments
           
          A JPA can delegate its functions to an "administrative  
          entity" for the purposes of program development, policy  
          formulation, or program implementation.  In 1998, the San  
          Gabriel Valley COG created the Alameda Corridor-East (ACE)  
          Construction Authority to develop and implement the "ACE  
          Project," a collection of construction projects aimed at  
          mitigating the effects of rail traffic in the San Gabriel  
          Valley.  The ACE Project includes grade crossing safety  
          improvements, traffic signal control measures, roadway  
          widenings, and grade separations.  Federal, state, local,  
          and private funds pay for the ACE projects. 

          In 2008, the ACE Construction Authority submitted an  
          application to the Federal Railroad Administration (FRA)  
          Capital Grants Program for Rail Line Relocation and  
          Improvement Projects.  This federal grant program is open  
          to states, political subdivisions of states, and the  
          District of Columbia.  Although the grant program  
          regulations do not define "political subdivision of a  
          state," the FRA determined that the ACE Construction  
          Authority is not a political subdivision of a state and,  
          thus, ineligible to apply for the FRA's funds.  In an  
          effort to convince the FRA to reconsider its determination,  
          the ACE Construction Authority wants the Legislature to  
          declare in statute that the San Gabriel Valley COG and the  
          ACE Construction Authority are political subdivisions of  
          California.








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          This bill includes an urgency clause because federal  
          funding for rail relocation and improvement projects is  
          available now and the ACE Construction Authority does not  
          want to miss its chance to apply for those funds.

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

           SUPPORT  :   (Verified  5/6/09)

          Alameda Corridor-East Construction Authority


          AGB:do  5/6/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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