BILL NUMBER: AB 145 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 13, 2011
AMENDED IN SENATE JUNE 21, 2011
AMENDED IN ASSEMBLY JUNE 1, 2011
AMENDED IN ASSEMBLY MARCH 16, 2011
INTRODUCED BY Assembly Members Galgiani, Bonnie Lowenthal, and
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
Rail 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, pursuant
to that act, specifies the powers and duties of the authority, which
include entering into contracts with private and public entities for
the design, construction, and operation of high-speed trains, the
acquisition of rights-of-way through purchase or eminent domain, and
the relocation of highways and utilities, among other things.
Existing law requires the authority to adopt and submit to the
Legislature, every 2 years, a business plan. Existing law authorizes
the authority to appoint an executive director, and
authorizes the Governor to appoint up to 6 additional persons exempt
from civil service. Existing law provides for the authority to
establish an independent peer review group. 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
repeal all of the provisions of the California
High-Speed Rail Act. The bill would enact a new California High-Speed
Rail Act . The bill would continue the High-Speed Rail
Authority in existence with limited responsibilities and would
place the authority within the Business, Transportation and Housing
Agency . 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, subject to Senate confirmation.
The bill would authorize the authority to appoint an
executive director, and would provide for the Governor to appoint up
to 6 additional individuals exempt from civil service as authority
staff. The bill would require the authority to adopt policies
directing the development and implementation of high-speed rail,
prepare and adopt a business plan and high-speed train capital
program, establish a peer review group, select alignments for the
routes of the high-speed train system established by law, adopt
criteria for the award of franchises, and set fares or establish
guidelines for the setting of fares. 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
and places the authority 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; the High-Speed Rail Authority;
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. 3. Division 19.5 (commencing with Section 185000) of the
Public Utilities Code is repealed.
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)
(b) "High-speed train" means intercity passenger train
service that utilizes an alignment and technology that makes it
capable of sustained speeds of 125 200
miles per hour or greater.
(d)
(c) "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.
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.
185114. (a) The authority shall appoint an executive director,
exempt from civil service, who shall serve at the pleasure of the
authority, to administer the affairs of the authority as directed by
the authority.
(b) For purposes of managing and administering the ongoing work of
the authority in implementing the high-speed train project, the
Governor, upon the recommendation of the executive director, may
appoint up to six additional individuals, exempt from civil service,
who shall serve at the pleasure of the executive 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.
(c) The compensation of the executive director and the additional
persons authorized by subdivision (b) shall be established by the
authority, and approved by the Department of Personnel
Administration, in an amount that is reasonably necessary, in the
discretion of the authority, to attract and hold a person of superior
qualifications. The authority shall cause to be conducted, through
the use of independent outside advisers, a salary survey to determine
the compensation for the positions under this subdivision. 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 authority 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 by the authority and approved by
the Department of Personnel Administration.
(d) The executive director may, as authorized by the authority,
appoint necessary staff to carry out the provisions of this part.
185117. The authority may sue or be sued.
Article 2. Policies of the Authority
185120. In consultation with the department, the
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 adopt criteria for the selection
of the routes of the high-speed train system select
the alignments for the routes of the high-speed train system
established pursuant to Section 2704.04 of the Streets and Highways
Code .
(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.
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.
185131. (a) The authority shall prepare, publish, adopt, and
submit to the Legislature, not later than January 1, 2012, and every
two years thereafter, a business plan. At least 60 days prior to the
publication of the plan, the authority 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
authority 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 authority 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, and technology,
and other risks associated with the project's development. The plan
shall describe the authority's strategies, processes, or other
actions it intends to utilize to manage those risks.
(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. The authority shall
hold at least one public hearing on the business plan and shall
adopt the plan at a regularly scheduled meeting. When adopting the
plan, the authority shall take into consideration comments from the
public hearing and written comments that it receives in that regard,
and any hearings that the Legislature may hold prior to adoption of
the plan.
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. (a) The authority shall prepare, publish, and adopt, and
subsequently submit 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 authority 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 authority may deem appropriate.
185133. 185134. 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 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 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 all the powers, duties, and
responsibilities of the authority under the Safe, Reliable
High-Speed Passenger Train Bond Act for the 21st Century (Chapter 20
(commencing with Section 2704) of Division 3 of the Streets and
Highways Code), 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.
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:
(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.
(2) Evaluate alternative high-speed train technologies, systems
and operators, and select an appropriate high-speed train system.
(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.
(4) Select franchisees, routes, and terminal sites consistent with
criteria adopted by the authority.
(5) Enter into contracts with public and private entities for the
preparation of high-speed train system plans.
(6) Prepare a detailed financing plan, including any necessary
taxes, fees, or bonds to pay for the construction of the high-speed
train network.
(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.
(8) Keep the public informed of its activities.
(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.
(10) Acquire rights-of-way through purchase or eminent domain.
(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.
(12) Enter into cooperative or joint development agreements with
local governments or private entities.
(13) Relocate highways and utilities.
(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.
(15) Acquire, sell, and lease passenger rail rolling stock, power
units, and associated equipment.
(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, 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.
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. 3. LEGAL MATTERS
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.