BILL NUMBER: AB 385	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 25, 2011

INTRODUCED BY   Assembly Member Harkey
    (   Coauthors:   Assembly Members 
 Donnelly,   Grove,   Hagman,   Jones,
  Logue,   and Wagner   ) 
    (   Coauthor:   Senator  La Malfa
  ) 

                        FEBRUARY 14, 2011

    An act relating to high-speed rail.   An act
to add Section 2704.77 to the Streets and Highways Code, relating to
high-speed rail. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 385, as amended, Harkey. High-speed rail. 
   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, the California High-Speed Rail Act,
creates the High-Speed Rail Authority to develop and implement a
high-speed train system in the state, with specified powers and
duties. Existing law requires the authority to approve and submit to
the Director of Finance, a specified peer review group, the
transportation policy committees and fiscal committees of the
Legislature, a detailed funding plan for that corridor or a usable
segment thereof of the high-speed train system. Existing law requires
the funding plan to include certain information and meet specified
requirements.  
   This bill would require the authority to approve an investment
grade analysis, to be prepared by the State Auditor, and to submit
that investment grade analysis to those same entities. The bill would
require that investment grade analysis to include certain
information and meet specified requirements.  
   Existing law creates the High-Speed Rail Authority, with various
powers and duties relative to development and implementation of
high-speed train service.  
   This bill would state the intent of the Legislature to enact
legislation relative to the implementation of high-speed rail.

   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 2704.77 is added to the 
 Streets and Highways Code   , to read:  
   2704.77.  Notwithstanding any other provision of law, the
High-Speed Rail Authority created pursuant to Section 185020 of the
Public Utilities Code, or its successor, shall have approved and
submitted to the Director of Finance, the peer review group
established pursuant to Section 185035 of the Public Utilities Code,
and the policy committees with jurisdiction over transportation
matters and the fiscal committees in both houses of the Legislature,
an investment grade analysis, for the corridor or a usable segment
thereof of the high-speed train system. The State Auditor shall
prepare the analysis and submit that analysis to the authority.
   The analysis shall include all of the following:
   (a) Identification of the corridor, or usable segment thereof, in
which the authority is proposing to invest bond proceeds.
   (b) A description of the expected terms and conditions associated
with any lease agreement or franchise agreement proposed to be
entered into by the authority and any other party for the
construction or operation of passenger train service along the
corridor or usable segment thereof.
   (c) The estimated full cost of constructing the corridor or usable
segment thereof, including an estimate of cost escalation during
construction and appropriate reserves for contingencies.
   (d) The sources of all funds to be invested in the corridor, or
usable segment thereof, and the anticipated time of receipt of those
funds based on expected commitments, authorizations, agreements,
allocations, or other means.
   (e) The projected ridership and operating revenue estimate based
on projected high-speed passenger train operations on the corridor or
usable segment.
   (f) All known or foreseeable risks associated with the
construction and operation of high-speed passenger train service
along the corridor or usable segment thereof and the process and
actions the authority will undertake to manage those risks.
   (g) Whether construction of the corridor or usable segment thereof
can be completed as proposed in the plan.
   (h) Whether the corridor or usable segment thereof would be
suitable and ready for high-speed train operation.
   (i) The extent to which the corridors include facilities contained
therein to enhance the connectivity of the high-speed train network
to other modes of transit, including, but not limited to,
conventional rail (intercity rail, commuter rail, light rail, or
other transit), bus auto or air and the level of expenditures needed
to make them viable and cost effective.
   (j) Over a 5-, 10-, 15-, 20-, and 25- year event horizon, a
description of anticipated ridership, ticket prices, frequency of
trains, and costs of maintenance, including how these prices would
compare with other transportation modes from a cost perspective, and
with a sensitivity to the environmental positives and negatives when
compared to transportation modes of the future, such as future
planes, automobiles, and buses based on anticipated developments.
This analysis shall include the assumptions used to develop the
projections and demonstrate that these assumptions have been
carefully developed and evaluated to produce the highest levels of
confidence.  
  SECTION 1.    It is the intent of the Legislature
to enact legislation relative to the implementation of high-speed
rail.