BILL NUMBER: AB 145	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 21, 2011
	AMENDED IN ASSEMBLY  JUNE 1, 2011
	AMENDED IN ASSEMBLY  MARCH 16, 2011

INTRODUCED BY   Assembly Members  Galgiani  
  and Bonnie Lowenthal   Galgiani,
  Bonnie Lowenthal,   and Gordon 
    (   Coauthor:  
Assembly Member   Gordon   )


                        JANUARY 13, 2011

   An act to  amend Section 13975 of the Government Code, and to
 repeal and add Division 19.5 (commencing with Section 185000)
of the Public Utilities Code, relating to high-speed rail.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 145, as amended, Galgiani. High-speed rail.
   Existing law, the California High-Speed Train Act, creates the
High-Speed Rail Authority  with 9 members  to develop and
implement a high-speed train system in the state, with specified
powers and duties. Existing law, the Safe, Reliable High-Speed
Passenger Train Bond Act for the 21st Century, approved by the voters
as Proposition 1A at the November 4, 2008, general election,
provides for the issuance of $9.95 billion in general obligation
bonds for high-speed rail and related purposes.  Existing law
requires the authority to adopt and submit to the Legislature, every
two years, a business plan. 
   This bill would revise and recast these provisions by repealing
and reenacting the California High-Speed Train Act. The bill would
continue the High-Speed Rail Authority in existence  solely
as an advisory body, notwithstanding any other provision of law
  with limited responsibilities. The 5 members of the
authority appointed by the Governor would be subject to Senate
confirmation, but existing members could continue to serve the
remainder of their terms  . The bill would create the Department
of High-Speed Trains within the Business, Transportation and Housing
Agency. The bill would transfer certain of the existing powers and
responsibilities of the authority to the department and would specify
additional powers and duties of the department relative to
implementation of the high-speed rail project.  The bill would
require the department to prepare the existing high-speed train
business plan and a new high-speed train capital program every 2
years, which would both be reviewed and adopted by the authority
after a public hearing prior to submittal to the Legislature. 
The director of the department would be appointed by the Governor
 , and the Governor would be authorized to appoint up to 10
officers of the department who would be exempt from civil service and
serve at the pleasure of the director. The bill would provide for
acquisition and disposition by the department of rights-of-way for
the high-speed rail project   , subject to Senate
confirmation  . The bill would enact other related provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  (a) It is the intent of the Legislature to do all of
the following:
   (1) Further the transportation system of the state through the
successful development and construction of the 800-mile high-speed
train system described in Proposition 1A, approved by the voters on
November 4, 2008.
   (2) Protect the state's interests and provide for the exercise of
continuing oversight of the funds to be invested in the high-speed
train project following voter approval of Proposition 1A.
   (3) Ensure that an adequate public forum maintains the
transparency of the development of the high-speed train project.
   (4) Provide an efficient governmental structure for the
development of high-speed train operations in the state.
   (b) This act continues in existence the High-Speed Rail Authority;
creates a new Department of High-Speed Trains within the Business,
Transportation and Housing Agency; apportions between the authority
and the new department existing and new powers, duties, rights, and
obligations; and defines the relationship between the authority and
the new department.
   SEC. 2.   Section 13975 of the   Government
Code   is amended to read: 
   13975.  The Business and Transportation Agency in state government
is hereby renamed the Business, Transportation and Housing Agency.
The agency consists of the State Department of Alcoholic Beverage
Control, the Department of the California Highway Patrol, the
Department of Corporations, the Department of Housing and Community
Development, the Department of Motor Vehicles, the Department of Real
Estate, the Department of Transportation,  the Department of
High-Speed Trains,  the Department of Financial Institutions,
the Department of Managed Health Care, and the Board of Pilot
Commissioners for the Bays of San Francisco, San Pablo, and Suisun;
and the California Housing Finance Agency is also located within the
Business, Transportation and Housing Agency, as specified in Division
31 (commencing with Section 50000) of the Health and Safety Code.
   SEC. 2.   SEC. 3.  Division 19.5
(commencing with Section 185000) of the Public Utilities Code is
repealed.
   SEC. 3.   SEC. 4.   Division 19.5
(commencing with Section 185000) is added to the Public Utilities
Code, to read:

      DIVISION 19.5.  CALIFORNIA HIGH-SPEED RAIL ACT


      CHAPTER 1.  GENERAL PROVISIONS, FINDINGS, AND DEFINITIONS


   185000.  This division shall be known, and may be cited, as the
California High-Speed Rail Act.
   185002.  The Legislature hereby finds and declares all of the
following:
   (a) California, over the past decades, has built an extensive
network of freeways and airports to meet the state's growing
transportation needs.
   (b) These facilities are not adequate to meet the mobility needs
of the current population.
   (c) The population of the state and the travel demands of its
citizens are expected to continue to grow at a rapid rate.
   (d) The cost of expanding the current network of highways and
airports fully to meet current and future transportation needs is
prohibitive, and a total expansion strategy would be detrimental to
air quality.
   (e) Intercity train service, when coordinated with urban transit
and airports, is an efficient, practical, and less polluting
transportation mode that can fill the gap between future demand and
present capacity.
   (f) Advances in rail and train technologies have allowed intercity
train systems in Europe and Japan to attain speeds of up to 220
miles per hour and compete effectively with air travel for trips in
the 200- to 500-mile range.
   (g) Development of a high-speed train system is a necessary and
viable alternative to automobile and air travel in the state.
   (h) In order for the state to have a comprehensive network of
high-speed intercity train systems by the year 2020, similar to
California's former freeway plan, it is necessary to designate an
entity with stable and predictable funding sources to implement the
plan.
   (i) Utilizing existing human and manufacturing resources to build
a large network of high-speed trains will generate jobs and economic
growth for today's population and produce a transportation network
for future generations.
   (j) Upon confirmation of the need and costs by detailed studies,
the private sector, together with the state, can build and operate
new high-speed intercity train systems utilizing private and public
financing.
   185004.  As used in this division, unless the context requires
otherwise, the following terms have the following meanings:
   (a) "Authority" means the High-Speed Rail Authority. The members
of the authority constitute the board of the authority.
   (b) "Department" means the Department of High-Speed Trains.
   (c) "High-speed train" means intercity passenger train service
that utilizes an alignment and technology that makes it capable of
sustained speeds of  200   125  miles per
hour or greater.
   (d) "Secretary" means the Secretary of Business, Transportation
and Housing.
      CHAPTER 2.  THE HIGH-SPEED RAIL AUTHORITY



      Article 1.  Members of the Authority


   185110.  (a) The High-Speed Rail Authority in state government is
hereby continued in existence.
   (b) (1) The authority is composed of nine members as follows:
   (A) Five members appointed by the Governor  , with the advice
and consent of the Senate  .
   (B) Two members appointed by the Senate Committee on Rules.
   (C) Two members appointed by the Speaker of the Assembly.
   (2) For the purposes of making appointments to the authority, the
Governor, the Senate Committee on Rules, and the Speaker of the
Assembly shall take into consideration geographical diversity to
ensure that all regions of the state are adequately represented.
   (c) Members of the authority shall hold office for terms of four
years, and until their successors are appointed. A vacancy shall be
filled by the appointing power making the original appointment, by
appointing a member to serve the remainder of the term.
   (d) The term of a member shall expire on December 31 of the fourth
year of the member's term.
   (e) Members of the authority are subject to the Political Reform
Act of 1974 (Title 9 (commencing with Section 81000)).
   (f) From among its members, the authority shall elect a
chairperson, who shall preside at all meetings of the authority, and
a vice chairperson to preside in the absence of the chairperson. The
chairperson shall serve a term of one year.
   (g) Five members of the authority constitute a quorum for taking
any action by the authority.  Nothing in the foregoing shall
limit any law requiring a vote of more than a simple majority for the
taking of any action by the authority.  
    (h) Nothing in this section shall require the existing membership
of the authority on the effective date of this section to be
reconstituted as of that date. 
   185112.  (a) Each member of the authority shall receive
compensation of one hundred dollars ($100) for each day that the
member is attending to the business of the authority, but shall not
receive more than five hundred dollars ($500) in any calendar month.
   (b) Members of the authority shall be reimbursed for their actual
travel expenses incurred in attending to the business of the
authority. 
   185113.  Notwithstanding any other provision of law, including,
but not limited to, Article 2 (commencing with Section 185120) and
Article 3 (commencing with Section 185130) of this chapter, and
Chapter 3 (commencing with Section 185210), the authority is solely
an advisory body, and shall exercise no state powers or
responsibilities other than to provide advice. This section shall
supersede, and take precedence over, any other provision of law
inconsistent with this section.  
   185114.  The authority shall appoint an executive director for the
authority who shall serve at the pleasure of the authority. The
executive director shall receive the salary established by the
Director of Finance for exempt officials.  
   185115.  The executive director shall administer the affairs of
the authority as directed by the authority and shall direct the staff
of the authority.  
   185116.  The executive director may appoint, with the approval of
the authority, such staff as necessary to carry out the provisions of
this chapter. The authority may request the department, and the
department shall have the authority to perform such work as the
authority deems necessary to carry out its duties and
responsibilities. The authority shall consider the expertise and
resources available in the department for purposes of carrying out
its duties and responsibilities. However, this does not preclude the
authority from utilizing the services of other public or private
entities.  
   185117.  The authority may sue or be sued. 

      Article 2.  Policies of the Authority


   185120.  In consultation with the department, the authority shall
establish policies directing the development and implementation of
intercity high-speed train service that is fully integrated with the
state's existing intercity rail and bus network, consisting of
interlinked conventional and high-speed train lines and associated
feeder buses. The intercity network in turn shall be fully
coordinated and connected with commuter train lines and urban transit
lines developed by local agencies, as well as other transit
services, through the use of common station facilities whenever
possible. The department shall implement those policies.
   185122.  (a) The authority shall establish an independent peer
review group for the purpose of reviewing the planning, engineering,
financing, and other elements of the authority's plans and issuing an
analysis of appropriateness and accuracy of the authority's
assumptions and an analysis of the viability of the authority's
financing plan, including the funding plan for each corridor required
pursuant to subdivision (c) of Section 2704.08 of the Streets and
Highways Code.
   (b) The peer review group shall include all of the following:
   (1) Two individuals with experience in the construction or
operation of high-speed trains in Europe, Asia, or both, designated
by the Treasurer.
   (2) Two individuals, one with experience in engineering and
construction of high-speed trains and one with experience in project
finance, designated by the Controller.
   (3) One representative from a financial services or financial
consulting firm who shall not have been a contractor or subcontractor
of the authority for the previous three years, designated by the
Director of Finance.
   (4) One representative with experience in environmental planning,
designated by the secretary.
   (5) Two expert representatives from agencies providing intercity
or commuter passenger train services in California, designated by the
secretary.
   (c) The peer review group shall evaluate the authority's funding
plans and prepare its independent judgment as to the feasibility and
reasonableness of the plans, appropriateness of assumptions,
analyses, and estimates, and any other observations or evaluations it
deems necessary.
   (d) The authority and the department shall provide the peer review
group any and all information that the peer review group may request
to carry out its responsibilities.
   (e) The peer review group shall report its findings and
conclusions to the Legislature no later than 60 days after receiving
the plans.

      Article 3.  Powers, Duties, and Responsibilities of the
Authority


   185130.  The authority has all of the following powers, duties,
and responsibilities:
   (a) The authority shall  select   adopt
criteria for the selection of  the routes of the high-speed
train system.
   (b) The authority shall serve as the governing body of the
department, within the meaning of Section 1245.210 of the Code of
Civil Procedure, for purposes of the adoption of resolutions of
necessity.
   (c) The authority shall advise the secretary and the director
concerning high-speed rail matters, which advice shall be considered
by the department in exercising its powers and duties pursuant to
this division.
   (d) The authority shall adopt criteria for the award of
franchises.
   (e) The authority shall set fares or establish guidelines for the
setting of fares. 
   185132.  (a) The authority shall adopt and submit to the
Legislature and the Governor, not later than October 1 each year, a
high-speed train program. The program shall cover a period of six
fiscal years, beginning July 1 of the year following the year it is
adopted, and shall be a statement of intent by the department to
request funding in the annual Budget Act for the following six years.
The program shall be submitted annually notwithstanding Section
10231.5 of the Government Code.
   (b) The high-speed train program shall include a listing of all
capital improvement projects that are expected to require
appropriation in the annual Budget Act, including state, federal,
local, and private funds, during the following six fiscal years.
   (c) For each segment, the program shall specify the expenditure
amount and the expenditure year for each of the following project
components:
   (1) Completion of all permits and environmental studies.
   (2) Preparation of plans, specifications, and estimates.
   (3) The acquisition of rights-of-way, including, but not limited
to, support activities.
   (4) Construction and construction management and engineering,
including surveys and inspection.  
   185131.  The authority shall not be involved with the day-to-day
operation of the department and is specifically prohibited from
taking part in the employment of department personnel.  
   185132.  The authority shall hold at least one public hearing on
the business plan prepared by the department pursuant to Section
185224. The authority shall review the plan, and adopt the plan at a
regularly scheduled meeting. When reviewing and adopting the plan,
the authority shall take into consideration comments from the public
at the public hearing, written comments that it receives in that
regard, and comments from any hearings that the Legislature may hold
prior to adoption by the authority.  
   185133.  The authority shall hold at least one public hearing on
the high-speed train capital program prepared by the department
pursuant to Section 185226. The authority shall review the program,
and adopt the program at a regularly scheduled meeting. When
reviewing and adopting the program, the authority shall take into
consideration comments from the public at the public hearing and
written comments that it receives in that regard. 
      CHAPTER 3.  DEPARTMENT OF HIGH-SPEED TRAINS



      Article 1.  Organization of the Department


   185210.  There is in the Business, Transportation and Housing
Agency a Department of High-Speed Trains.
   185211.  The department is under the control of a director known
as the Director of High-Speed Trains.
   185212.  The director shall be appointed by the Governor, 
with the advice and consent of the Senate,  and hold office at
the pleasure of the  authority   Governor 
.
   185213.  The director shall perform all duties, exercise all
powers and jurisdiction, assume and discharge all responsibilities,
and carry out and effect all purposes vested by law in the
department, except as otherwise expressly provided by law.
   185214.  The director shall organize the department from time to
time in the manner the director deems necessary to properly segregate
and conduct the work of the department. The director may organize
the department into as many divisions as, in the director's judgment,
will provide for the efficient administration of the high-speed
train project and planning, construction, and operation of the
high-speed train system. 
   185215.  (a) For purposes of overseeing the ongoing work of the
department, the organization of the department may include provision
for up to 10 officers exempt from civil service who shall constitute
the executive staff of the department, who shall be appointed by the
Governor, and who shall serve at the pleasure of the director.
   (b) Notwithstanding Sections 19816 and 19825 of the Government
Code, the compensation of key exempt management, including the
director and the exempt positions described in subdivision (a), shall
be established by the authority board in amounts that are reasonably
necessary, in the discretion of the board, to attract and hold a
person of superior qualifications.
   (c) (1) To determine the compensation for the positions described
in this section, the authority shall cause to be conducted, through
the use of independent outside advisers, salary surveys of both of
the following:
   (A) Other state, regional, and local transportation agencies that
are most comparable to the department.
   (B) Other relevant labor pools.
   (2) The salaries so set by the board shall not exceed the highest
comparable salary for a position of that type, as determined by the
survey.
   (d) The Department of Personnel Administration shall review the
methodology used in these salary surveys.  
   185216.  The Governor, the secretary, and the department may enter
into any agreements, execute any documents, establish and manage any
accounts and deposits, and take any other action that may be
appropriate, in accordance with federal law and rules and
regulations, to receive and expend funds from the federal government
in connection with mass transportation programs and projects for
which federal funds are available.  
   185217.  The department shall prepare and submit to the
Legislature and to the authority board an annual report, no later
than December 1 of each year. The report shall include a description
of the progress made and the high-speed train program adopted by the
authority. The report shall be submitted annually, notwithstanding
Section 10231.5 of the Government Code.  
   185215.  (a) For purposes of managing and administering the
ongoing work of the department in implementing the high-speed train
project, the Governor, upon the recommendation of the director, may
appoint up to six additional individuals, exempt from civil service,
who shall serve at the pleasure of the director. Pursuant to this
subdivision, the Governor may appoint persons only for the following
positions:
   (1) Chief program manager.
   (2) Up to three regional directors.
   (3) Chief financial officer.
   (4) Director of risk management and project controls.
   (b) The compensation of the director and the additional persons
authorized by subdivision (a) shall be established by the Department
of Personnel Administration in an amount that is reasonably necessary
to attract and hold a person of superior qualifications. The
Department of Personnel Administration shall cause to be conducted,
through the use of independent outside advisers, a salary survey to
determine the compensation for the positions under Section 185212 and
this section. The Department of Personnel Administration may, in its
discretion, accept a previously completed salary survey that meets
the requirements of this subdivision, and shall review the
methodology used in the survey. The salary survey shall consider both
of the following:
   (1) Other state, regional, and local transportation agencies that
are most comparable to the authority and its responsibilities.
   (2) Other relevant labor pools.
   The compensation set by the Department of Personnel Administration
shall not exceed the highest comparable compensation for a position
of that type, as determined by the salary survey. Based on the salary
survey, these positions shall be paid a salary established and
approved by the Department of Personnel Administration.
   (c) Persons appointed for the six additional positions by the
authority pursuant to subdivisions (b) and (c) of former Section
185024, as amended by Chapter 6 of the Statutes of 2011, may be
retained by the department to serve at the pleasure of the director
in the capacities referenced in subdivision (a) without the
requirement for reappointment.
   (d) If, as of the effective date of this division, the Governor
has not appointed a person to serve as director of the department,
the person serving as executive director of the authority immediately
prior to the effective date of this division shall become the
director on the effective date of this division. If, as of the
effective date of this division, the Governor has appointed a person
to serve as director of the department, that person shall become the
director upon the effective date of this division, and upon taking
office, and the person serving as executive director of the authority
immediately prior to the effective date of this division shall serve
as interim director of the department until the Governor's appointee
takes office. 
   185218.  (a) The authorization and responsibility for planning,
construction, and operation of high-speed passenger train service at
speeds exceeding 125 miles per hour in this state is exclusively
granted to the department.
   (b) Except as provided in paragraph (a), nothing in this chapter
precludes other local, regional, or state agencies from exercising
powers provided by law with regard to planning or operating, or both,
passenger rail service.

      Article 2.  Powers and Duties of the Department


   185220.   (a)    The department shall have
 those   all the  powers, duties, and
responsibilities  delegated to   of  the
authority  pursuant to   under  the Safe,
Reliable High-Speed Passenger Train Bond Act  of 2008
  for the 21st Century  (Chapter 20 (commencing
with Section 2704) of Division 3 of the Streets and Highways Code),
 except as provided otherwise in Article 3 (commencing with
Section 185130) of Chapter 2. In that regard and to that extent,
  and  the department shall be the successor of the
authority pursuant to subdivision (b) of Section 2704.01 of the
Streets and Highways Code  for all purposes under that bond act
 .  Subject   However, nothing in this
section modifies Section 2704.12 of the Streets and Highways Code.

    (b)     Subject  to the other
provisions of this division, the department shall have the powers and
duties to do the following: 
   (a) 
    (1)  Conduct engineering and other studies related to
the selection and acquisition of rights-of-way and the selection of a
franchisee, including, but not limited to, environmental impact
studies, socioeconomic impact studies, and financial feasibility
studies. 
   (b) 
    (2)  Evaluate alternative high-speed train technologies,
systems and operators, and select an appropriate high-speed train
system. 
   (c) Award franchises consistent with criteria adopted by the
authority.  
   (d) 
    (3)  Accept grants, fees, and allocations from the
state, from political subdivisions of the state, or from the federal
government, foreign governments, and private sources. 
   (e) 
    (4)  Select  a proposed franchisee, a proposed
route, and proposed   franchisees, routes, and 
terminal sites  consistent with criteria adopted by the authority
 . 
   (f)
    (5)  Enter into contracts with public and private
entities for the preparation of  the plan  
high-speed train system plans  . 
   (g) 
    (6)  Prepare a detailed financing plan, including any
necessary taxes, fees, or bonds to pay for the construction of the
high-speed train network. 
   (h) 
    (7)  Develop a proposed high-speed train financial plan,
including necessary taxes, bonds, or both, or other indebtedness,
and submit the plan to the Legislature and to the Governor. 
   (i) 
    (8)  Keep the public informed of its activities.

   (j) 
    (9)  Enter into contracts with private or public
entities, including contracts for the design, construction, and
operation of high-speed trains. The contracts may be separated into
individual tasks or segments or may include all tasks and segments,
including any combination of one or more of such tasks as design,
build, finance, operate, and maintain. 
   (k) 
    (10)  Acquire rights-of-way through purchase or eminent
domain. 
   (l) 
    (11   )  Subject to approval by the authority
board, issue debt, secured by pledges of state funds, federal grants,
or project revenues. The pledge of state funds shall be limited to
those funds expressly authorized by statute or voter-approved
initiatives. 
   (m) 
    (12)  Enter into cooperative or joint development
agreements with local governments or private entities. 
   (n) 
    (13)  Relocate highways and utilities. 
   (o) 
    (14)  Plan, construct, and operate the high-speed train
system, or enter into contracts for the planning, construction, or
operation of the system, including the acquisition of equipment,
including rolling stock, necessary for the operation of the system.

   (p) 
    (15)  Acquire, sell, and lease passenger rail rolling
stock, power units, and associated equipment. 
   (q) 
    (16)  Acquire, lease, design, construct, and improve
track lines and related facilities, and contract with the private
sector for the design, improvement, or construction of track lines
and related facilities.
   185222.  (a) Notwithstanding any other provision of law, 
and subject to approval by the authority board,  for any
project along the high-speed rail network, the department may
contract with the Department of Transportation to perform project
design and engineering services, including construction inspection
services.
   (b) For purposes of this section, "project design and engineering
services, including construction inspection services" means
preliminary engineering, planning, prebid services, right-of-way
acquisitions, preparation of environmental documents, preparation of
plans, specifications, and estimates, construction inspection
including surveying and materials testing, quality control inspection
including highway and utility relocation, and grade separations.


      Article 3.  Rights-of-Way


   185230.  (a) If the department determines that real property or an
interest therein, previously or hereafter acquired by the state for
high-speed rail purposes, is no longer necessary for those purposes,
the department may sell, contract to sell, sell by trust deed, or
exchange the real property or interest therein in the manner and upon
terms, standards, and conditions established by the authority. The
payment period in a contract of sale or sale by trust deed shall not
extend longer than 10 years from the time the contract of sale or
trust deed is executed, and a transaction involving a contract of
sale or sale by trust deed to private parties shall require a
downpayment of at least 30 percent of the purchase price.
   (b) A conveyance under this section shall be approved by the
authority and shall be executed on behalf of the state by the
director and the purchase price shall be paid into the State Treasury
to the credit of any fund, available to the department for
high-speed rail purposes, that the authority designates.
   (c) Any real property or interest therein may in like manner be
exchanged, either as whole or part consideration, for any other real
property or interest therein as needed for high-speed rail purposes.
   185232.  The director may sell or lease excess right-of-way
parcels to municipalities or other local agencies for public
purposes, and may accept as all or part of the consideration for the
sale or lease any substantial benefits the state will derive from the
municipality or other local agency's undertaking maintenance or
landscaping costs that would otherwise be the obligation of the
state.
   185234.  The director may lease nonoperating right-of-way areas to
municipalities or other local agencies for public purposes, and may
contribute toward the cost of developing local parks and other
recreational facilities on those areas. The director may accept as
all or part of the consideration for the lease or for the state
contribution any substantial benefits the state will derive from the
municipality or other local agency's undertaking maintenance or
landscaping costs that would otherwise be the obligation of the
state. Those leases shall contain a provision that whenever the
leased land is needed for high-speed rail operating purposes the
lease shall terminate. The department is authorized to classify
portions of high-speed rail rights-of-way as nonoperating.
   185236.  (a) The department may acquire, by purchase, lease, or
eminent domain, any property necessary for the development and
implementation of the state's high-speed train program. The power of
eminent domain shall be exercised in accordance with Title 7
(commencing with Section 1230.010) of Part 3 of the Code of Civil
Procedure.
   (b) The authority constitutes the department's "governing body"
within the meaning of Section 1245.210 of the Code of Civil
Procedure, for purposes of the adoption of resolutions of necessity.
   (c) To the extent that the activities authorized by subdivision
(a) exceed the capacity of the department's existing workforce, the
department may contract with qualified individuals or firms for
engineering, surveying, and related technical services in exercising
its authority pursuant to subdivision (a).  
   185224.  (a) The department shall prepare, publish, and submit to
the authority for review and adoption, and subsequent submittal to
the Legislature, not later than January 1, 2012, and September 1,
2014, and every two years thereafter, a business plan. At least 60
days prior to the publication of the plan, the department shall
publish a draft business plan for public review and comment. The
draft plan shall also be submitted to the Senate Committee on
Transportation and Housing, the Assembly Committee on Transportation,
the Senate Committee on Budget and Fiscal Review, and the Assembly
Committee on Budget. The business plan shall identify all of the
following: the type of service the department anticipates it will
develop, such as local, express, commuter, regional, or
interregional; a description of the primary benefits the system will
provide; a forecast of the anticipated patronage, operating and
maintenance costs, and capital costs for the system; an estimate and
description of the total anticipated federal, state, local, and other
funds the department intends to access to fund the construction and
operation of the system; and the proposed chronology for the
construction of the eligible corridors of the statewide high-speed
train system. The business plan shall also include a discussion of
all reasonably foreseeable risks the project may encounter,
including, but not limited to, risks associated with the project's
finances, patronage, right-of-way acquisition, environmental
clearances, construction, equipment, technology, and other risks
associated with the project's development. The business plan shall
describe the department's strategies, processes, or other actions it
intends to utilize to manage those risks. The business plan shall be
submitted pursuant to this section notwithstanding Section 10231.5 of
the Government Code.
   (b) (1) In addition to the requirements of subdivision (a), the
business plan shall include, but need not be limited to, all of the
following elements:
   (A) Using the most recent patronage forecast for the system,
develop a forecast of the expected patronage and service levels for
the Phase 1 corridor as identified in paragraph (2) of subdivision
(b) of Section 2704.04 of the Streets and Highways Code and by each
segment or combination of segments for which a project level
environmental analysis is being prepared for Phase 1. The forecast
shall assume a high, medium, and low level of patronage and a
realistic operating planning scenario for each level of service.
Alternative fare structures shall be considered when determining the
level of patronage.
   (B) Based on the patronage forecast in subparagraph (A), develop
alternative financial pro formas for the different levels of service,
and identify the operating break-even points for each alternative.
Each pro forma shall assume the terms of subparagraph (J) of
paragraph (2) of subdivision (c) of Section 2704.08 of the Streets
and Highways Code.
   (C) Identify the expected schedule for completing environmental
review, and initiating and completing construction for each segment
of Phase 1.
   (D) Identify the source of federal, state, and local funds
available for the project that will augment funds from the bond act
and the level of confidence for obtaining each type of funding.
   (E) Identify written agreements with public or private entities to
fund components of the high-speed rail system, including stations
and terminals, any impediments to the completion of the system, such
as the inability to gain access to existing railroad rights-of-way.
   (F) Identify alternative public-private development strategies for
the implementation of Phase 1.
   (2) To the extent feasible, the business plan should draw upon
information and material developed according to other requirements,
including, but not limited to, the preappropriation review process
and the preexpenditure review process in the Safe, Reliable
High-Speed Passenger Train Bond Act for the 21st Century pursuant to
Section 2704.08 of the Streets and Highways Code.  
   185226.  (a) The department shall prepare, publish, and submit to
the authority for review and adoption, and subsequent submittal to
the Legislature and the Governor, not later than November 1 of each
even-numbered year, a high-speed train capital program. The program
shall cover a period of six fiscal years, beginning July 1 of the
year following the year it is submitted, and shall be a statement of
intent by the department to request funding in the annual Budget Act
for the following six years. The program shall be submitted pursuant
to this section notwithstanding Section 10231.5 of the Government
Code.
   (b) The high-speed train capital program shall include a listing
of all capital improvement projects that are expected to require
appropriation in the annual Budget Act, including state, federal,
local, and private funds, during the following six fiscal years.
   (c) For each segment, the program shall specify the expenditure
amount and the expenditure year for each of the following project
components:
   (1) Completion of all permits and environmental studies.
   (2) Preparation of plans, specifications, and estimates.
   (3) The acquisition of rights-of-way, including, but not limited
to, support activities.
   (4) Construction and construction management and engineering,
including surveys and inspection.
   (5) Any additional components the department may deem appropriate.

      CHAPTER 4.  LEGAL MATTERS


   185300.  The department may employ its own legal staff or contract
with other state agencies for legal services, or both. The
department's legal counsel may represent the authority and the
department in any judicial proceeding. 
    185302.   185300.   Any legal or
equitable action brought against the authority or the department
shall be brought in a court of competent jurisdiction in the County
of Sacramento. For purposes of this section, subdivision (1) of
Section 401 of the Code of Civil Procedure does not apply.