BILL ANALYSIS Ó
AB 427
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CONCURRENCE IN SENATE AMENDMENTS
AB 427 (John A. Pérez)
As Amended August 15, 2011
Majority vote
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|ASSEMBLY: |72-0 |(May 12, 2011) |SENATE: |36-0 |(August 29, |
| | | | | |2011) |
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Original Committee Reference: TRANS.
SUMMARY : Modifies the Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006 (bond act)
provisions to allow regional transit agencies and the California
Emergency Management Agency (CEMA) to re-direct bond funds to
projects that are ready to bid for purposes of transit system
safety, security, and disaster response.
The Senate amendments :
1)Authorize, explicitly the eligibility of safety projects for
funding from the account as approved by CEMA, pursuant to
specified requirements.
2)Require funds allocated for use on the southern California
regional commuter rail system (Metrolink) that serves a five
county region to be allocated to each of the county
transportation commissions served by Metrolink.
EXISTING LAW :
1)Authorizes, pursuant to the bond act, the issuance of $19.925
billion of general obligation bonds for specified purposes.
Of this amount, requires the deposit of $1 billion of the bond
proceeds into the account to be used, upon appropriation, for
capital projects that provide increased protection against a
security and safety threat, and for capital expenditures to
increase the capacity of transit operators to develop disaster
response transportation systems that can move people, goods,
and emergency personnel and equipment in the aftermath of a
disaster impairing that movement.
2)Establishes CEMA, merging the Office of Emergency Services and
the Office of Homeland Security, responsible for overseeing
AB 427
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and coordinating emergency preparedness, response, recovery,
and homeland security activities.
3)Designates CEMA as the administrative agency for the account
and requires the separate allocation of capital expenditures
to transportation planning agencies, county transportation
commissions, and certain other transit-related agencies;
intercity passenger rail systems and commuter rail systems;
and, San Francisco Bay Area regional public water ferry
services.
4)Provides that operators that receive those funds for intercity
passenger rail systems and commuter rail systems are not
eligible for those funds designated for capital expenditures
of transportation planning agencies, county transportation
commissions, and other specified transit-related agencies.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the version passed by the Senate.
FISCAL EFFECT : According to the Senate Appropriations
Committee, minor, one-time costs for CEMA administration.
Likely less than $50,000 to update guidelines for reallocations.
COMMENTS : This bill provides further refinements to the bond
act's Transit System Safety, Security, and Disaster Response
Program to ensure the timely expenditures of capital projects
and allowing flexibility to transit and intercity rail operators
who have ready-to-go transit system safety, security and
disaster response projects.
According to the author, "In 2007, the Legislature approved SB
88 (Senate Budget and Fiscal Review Committee) Chapter 181,
Statutes of 2007, that implemented various Proposition 1B
programs including the implementation of the Transit System
Safety, Security, and Disaster Response Program. Overall, the
program implementation has been successful; however,
opportunities for refinement have become apparent. The $1
billion bond program is subdivided into three sub programs: 60%
Mass Transit Program, 25% Regional Public Water Transit Agency
in the Bay Area, 15% Intercity Rail. The 60% Mass Transit
Program is governed by the State Transit Assistance (STA)
formula. Current law does not allow CEMA to re-direct funds in
the event that an STA eligible agency doesn't have need for the
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funding. This bill allows bond funds to be re-directed to
shovel ready projects only in cases where the eligible agency
signals that they do not have needs for the funds. Current law
does not allow an entity receiving funds from the 15% Intercity
Rail Program to be eligible to receive funds from the 60% Mass
Transit Program." This bill removes that prohibition in order
to clarify and address the ambiguity in how this prohibition is
being implemented.
Related legislation: AB 1350 (Nuñez) of 2007, would have
modified provisions to the Transit System Safety, Security, and
Disaster Response Program. AB 1350 (Nuñez) was held in the
Senate Appropriations Committee as its provisions were
incorporated into SB 88 (Senate Budget and Fiscal Review
Committee) Chapter 181, Statutes of 2007.
AB 105 (Assembly Budget Committee) Chapter 6, Statutes of 2011,
among other items in the transportation budget trailer bill,
allows waterborne transit agencies an additional year to expend
bond act funds.
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093
FN: 0001896