BILL ANALYSIS �
AB 145
Page 1
ASSEMBLY THIRD READING
AB 145 (Galgiani and Bonnie Lowenthal)
As Amended March 16, 2011
Majority vote
TRANSPORTATION 12-0 APPROPRIATIONS 12-5
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|Ayes:|Bonnie Lowenthal, |Ayes:|Fuentes, Blumenfield, |
| |Jeffries, Achadjian, | |Bradford, Charles |
| |Bonilla, Buchanan, | |Calderon, Campos, Davis, |
| |Mitchell, Galgiani, | |Gatto, Hall, Hill, Lara, |
| |Logue, Miller, Norby, | |Mitchell, Solorio |
| |Portantino, Solorio | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Harkey, Donnelly, |
| | | |Nielsen, Norby, Wagner |
| | | | |
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SUMMARY : Repeals and recasts provisions establishing the High-Speed
Rail Authority and establishes the Department of High-Speed Trains
(DHST). Specifically, this bill :
1)Expresses the intent of the Legislature to provide an efficient
governmental structure for the development of high-speed train
operations in the state.
2)Repeals and recasts provisions establishing the High-Speed Rail
Authority (Authority) and prescribing its membership and duties.
3)Requires the Authority to establish policies, in consultation with
DHST, to direct the development and implementation of intercity
high-speed train service that is fully integrated with the state's
existing intercity rail and bus network; requires DHST to
implement the policies.
4)Repeals the requirement that the Authority prepare, adopt, and
submit a business plan to the Legislature every two years.
5)Repeals and recasts the requirement that the Authority establish
an independent peer review group for the purpose of reviewing the
planning, engineering, financing, and other elements of the
Authority's plans.
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6)Transfers certain existing powers and responsibilities of the
Authority to DHST, and specifies additional powers and duties of
the Authority and DHST relative to implementation of the
high-speed rail project.
7)Specifies the powers, duties, and responsibilities of the
Authority as follows:
a) Select the routes of the high-speed train system;
b) Serve as the governing body of DHST, for purposes of the
adoption of resolutions of necessity (related to
condemnations);
c) Advise the Business, Transportation and Housing Agency
(BT&H) and DHST concerning high-speed rail matters;
d) Adopt criteria for the award of franchises; and,
e) Set fares or establish guidelines for the setting of fares.
8)Directs the Authority to adopt and submit to the Legislature and
the Governor by October 1 of each year, a six-year high-speed
program. The program is to cover six fiscal years and is to be a
statement of intent by DHST to request funding in the annual
Budget Act for the ensuing six years.
9)Requires the high-speed train program to include a listing of all
capital improvement projects for which Budget Act appropriation is
anticipated from all funding sources for the following six years.
10)Requires that the program specify the expenditure amount and
expenditure year for each project phase.
11)Creates DHST within BT&H.
12)Provides that the DHST director would be appointed by the
Governor and hold office at the pleasure of the Authority.
13)Requires that the director perform all duties, exercise all
powers and jurisdiction, assume and discharge all
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responsibilities, and carry out and effect all purposes vested by
law in the department.
14)Authorizes up to ten executive employees of DHST who would be
exempt from civil service, appointed by the Governor, and serve at
the pleasure of the director. Authorizes the Authority to set the
salary of the executive employees and director in amounts that are
reasonably necessary to attract and hold a person of superior
qualifications.
15)Grants explicit authority for the Governor, the secretary of
BT&H, and DHST to enter into any agreement necessary to receive
and expend federal funds in connection with mass transportation
programs and projects for which federal funds are available.
16)Provides authority to DHST for property acquisition and
disposition and authorization to employ its own legal staff or
contract out.
EXISTING LAW :
1)Creates the Authority to be responsible for planning,
constructing, and operating a high-speed train system serving
California's major metropolitan areas. The Authority has a
nine-member policy board (five appointed by the Governor, two
appointed by the Senate and two appointed by the Assembly). Its
executive director is selected by, and reports directly to, the
Authority's policy board.
2)Establishes the California Transportation Commission (CTC) for the
development and implementation of a single, unified California
transportation policy. CTC is responsible for the programming and
allocating of funds for the construction of highway, passenger
rail and transit improvements throughout California. The CTC also
advises and assists the BT&H and the Legislature in formulating
and evaluating state policies and plans for California's
transportation programs.
3)Establishes the California Department of Transportation (Caltrans)
by consolidating the Department of Public Works and the State
Aeronautics Board and establishing six divisions: transportation
planning, highways, mass transportation, aeronautics,
administrative services, and legal.
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FISCAL EFFECT : According to the Assembly Appropriations Committee,
likely moderate additional administrative and operating costs
associated with establishing a separate department, distinct from
the existing authority, to implement the high-speed rail program.
These costs are unknown, but would be in the range of several
hundred thousand dollars annually (bond funds).
COMMENTS : The Authority was created by SB 1420 (Kopp) Chapter 796,
Statutes of 1996, which vested it with the responsibility to direct
the development and implementation of intercity high-speed rail
service. SB 1420 directed the Authority to prepare a plan for the
construction and operation of a high-speed train network for the
state and to submit that plan to the Legislature and the Governor or
to the voters of the state for approval. That bill prescribed
various powers of the Authority relative to planning and contracting
for the construction, financing, and operation of a high-speed rail
system.
In 1996, the Authority's chief responsibility was to plan for a
high-speed train network. Today, the Authority's chief
responsibility is to implement the plan. The current cost estimate
for the initial phase of the 800-mile network is $43 billion. To
complete the project, the Authority will initially oversee
consultant contracts amounting to hundreds of millions of dollars,
with billions of dollars in right of way acquisition and
construction contracts to follow.
The governance structure set forth in this bill mirrors, to a large
extent, the existing organizational relationship between the CTC and
Caltrans. The CTC consists of eleven voting members and two
non-voting ex-officio members. Of the eleven voting members, nine
are appointed by the Governor, one is appointed by the Senate Rules
Committee, and one is appointed by the Speaker of the Assembly. The
two ex-officio non-voting members are appointed from the State
Senate and Assembly, usually the respective chairs of the
transportation policy committee in each house.
The CTC is responsible for programming and allocating funds for the
construction of highway, passenger rail and transit improvements
throughout California. The CTC also advises and assists the
secretary of BT&H and the Legislature in formulating and evaluating
state policies and plans for California's transportation programs,
reviews and comments on findings in environmental documents under
state and federal environmental laws, adopts and rescinds specific
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highway route alignments, and approves resolutions of necessity
(related to condemnations).
Caltrans, on the other hand, is vested with full possession and
control of all state highways and all property rights in property
acquired for state highway purposes. It is authorized and directed
to lay out and construct all state highways between the termini
designated by law and on the locations as determined by the CTC and
to do any act necessary, convenient or proper for the construction,
improvement, maintenance or use of all highways which are under its
jurisdiction, possession or control.
This bill creates a new DHST as part of state government, distinct
from the Authority, and revises the role of the Authority. Under
this bill, DHST will carry out the day-to-day activities of
constructing and implementing the high-speed rail project while the
Authority will continue as the policy-making body. According to the
author, this bill will help protect the state's interests and
establish further oversight in the activities and use of the funds
to be invested in high-speed rail.
The organizational structure set forth in this bill has the
potential to reap benefits, including:
1)Assigning the Authority with the responsibility to set policy and
DHST with the responsibility to implement that policy insulates
the high-speed rail project from undue political pressure that
could otherwise thwart progress of the project and instills a more
appropriate balance of power to govern the project.
2)Despite its unique characteristics and its rather autonomous
existence in state government, the Authority is a state agency and
responsibility for its success or failure rests entirely with the
Governor. Placing DHST within the BT&H will ensure the needs of
the Authority and of the project are considered in the Governor's
cabinet-level discussions.
Assembly Transportation Committee concerns: There are over two
dozen high-speed bills currently pending before the Legislature so
it is not surprising that there is a lot overlap, duplication, or
contradiction in some of the individual provisions. Consequently,
there will inevitably be the need to reconcile the bills as they
proceed through the process. Examples of some of the provisions in
this bill that overlap with provisions in other bills include those
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related to exempt positions, Authority member appointments, and
reporting requirements.
Related legislation:
AB 1164 (Gordon) requires gubernatorial Authority appointees to be
confirmed by the Senate. That bill is on the Assembly Third
Reading.
SB 517 (Lowenthal) provides for the reorganization of the Authority
and a reconstitution of the Authority board. That bill passed out
of Senate Appropriations on May 26, 2011.
Previous legislation:
AB 1375 (Galgiani) 2010, would have created the Department of High
Speed Trains. That bill was eventually amended to provide exempt
positions and ultimately died in Senate Transportation and Housing
Committee.
AB 733 (Galgiani) 2009, among other matters, would have allowed the
Authority to hire its own legal counsel. That bill died in Assembly
Appropriations Committee.
SB 409 (Ducheny), 2009, would have created a Department of Railroads
within BT&H and the Authority would have been a division within the
Department of Railroads. That bill died in the Assembly
Appropriations Committee on suspense.
SB 53 (Ducheny) Chapter 53, Statutes of 2008, requires the
California Research Bureau, in consultation with specified others,
to study the consolidation of various rail functions currently
performed by several state entities, including the high-speed rail
functions; requires the development of a report with transmittal to
the Legislature by May 1, 2009.
Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093 FN:
0000932