BILL ANALYSIS �
AB 145
Page 1
ASSEMBLY THIRD READING
AB 145 (Galgiani)
As Amended June 1, 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)Declares that the Authority Board is solely an advisory body
and has no authority to exercise any state powers or
responsibilities.
4)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.
5)Repeals the requirement that the Authority prepare, adopt, and
submit a business plan to the Legislature every two years.
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6)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.
7)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.
8)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.
9)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.
10)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.
11)Requires that the program specify the expenditure amount and
expenditure year for each project phase.
12)Creates DHST within BT&H.
13)Provides that the DHST director would be appointed by the
Governor and hold office at the pleasure of the Authority.
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14)Requires that the director 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.
15)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.
16)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.
17)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:
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transportation planning, highways, mass transportation,
aeronautics, administrative services, and legal.
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.
AB 145 was originally introduced to establish a governance
structure that mirrors, to a large extent, the existing
organizational relationship between the CTC and Caltrans.
However, recent developments (most notably a report on
high-speed rail by the Legislative Analyst's Office) offer
strong recommendations for alternative governance structures.
These alternative governance structure concepts have not yet
been fully developed and/or vetted. Consequently, provisions in
the bill that declare the Authority to be solely an advisory
body with no state powers conflict with other provisions in the
bill that describe various responsibilities and duties of the
Authority and/or the newly created DHST. These conflicts will
be resolved as the bill moves forward.
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There are, in fact, over two dozen high-speed rail bills before
the Legislature this year 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 related to
exempt positions, Authority member appointments, and reporting
requirements.
Related legislation:
AB 41 (Hill) expands reporting and other requirements of the
Political Reform Act for members of the Authority to match the
requirements placed on other specified high-ranking public
officials. That bill is in the Senate Elections and
Constitutional Amendments Committee.
AB 615 (Lowenthal) authorizes, with regard to the Authority,
property disposal, leasing, rental, and management. Further,
authorizes alternate processes for the Authority separate from
the real estate procurement processes and approvals from the
Department of General Services, the State Public Works Board,
and the Department of Finance. That bill is on the Assembly
Third Reading.
AB 952 (Jones) imposes specific conflict of interest
requirements and limitations on the Authority, its employees,
businesses, and consultants that are doing, or want to do,
business with the Authority. AB 952 is on the Assembly Third
Reading.
AB 1164 (Gordon) requires gubernatorial Authority appointees to
be confirmed by the Senate. AB 1164 is on the Assembly Third
Reading.
SB 517 (Lowenthal) provides for the reorganization of the
Authority and a reconstitution of the Authority board. SB 517
is on the Senate Third Reading.
Previous legislation:
AB 1375 (Galgiani) 2010 would have created the Department of
High Speed Trains. That bill was eventually amended to provide
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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) of 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: 0001183