BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 492
                                                                  Page  1

          Date of Hearing:   May 4, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                AB 492 (Galgiani) - As Introduced:  February 15, 2011 

          Policy Committee:                              
          TransportationVote:12-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  


          This bill authorizes the High-Speed Rail Authority (HSRA), when 
          awarding contracts or purchasing trains and related equipment, 
          to consider, to the extent permitted by federal law and all 
          other applicable provisions of state law, the creation of jobs 
          in California.


          FISCAL EFFECT  

          Potential minor administrative costs to the extent the authority 
          conducts enhanced outreach to California contractors and 
          suppliers prior to awarding contracts, however, the bill neither 
          requires nor allows the authority to award contracts to other 
          than the lowest bidder, or in the case of negotiated contracts, 
          to the most qualified firm.

           COMMENTS  


           1)Purpose  . The High-Speed Rail Bond Act, approved by the voters 
            in November 2008, provides $9.95 billion in general obligation 
            bond authority to fund the planning and construction of a 
            high-speed passenger train system and complementary 
            improvements to other specified rail systems in the state.  
            According to the author, this bill "seeks to maximize the 
            number of California-based jobs that will be created by 
            contracts for the construction of the High-Speed Train (HST) 
            project and the purchase of materials related to it as a means 
            to improve and strengthen the California economy and job base.








                                                                  AB 492
                                                                  Page  2



           2)Prior Legislation  . In 2010, AB 733 (Galgiani), which was 
            identical to this bill, was vetoed by Governor Schwarzenegger, 
            who expressed concern that the bill "could result in 
            unnecessary additional costs and delays and may jeopardize the 
            success of the project in securing the billions of dollars 
            that are needed to construct this project."

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081