BILL ANALYSIS �
AB 1779
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ASSEMBLY THIRD READING
AB 1779 (Galgiani)
As Amended May 25, 2012
Majority vote
TRANSPORTATION 11-0 LOCAL GOVERNMENT 7-1
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|Ayes:|Bonnie Lowenthal, |Ayes:|Smyth, Alejo, Bradford, |
| |Achadjian, Blumenfield, | |Campos, Davis, Gordon, |
| |Bonilla, Buchanan, Eng, | |Hueso |
| |Ma, Galgiani, Miller, | | |
| |Portantino, Solorio | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Norby |
| | | | |
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APPROPRIATIONS 12-5
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|Ayes:|Fuentes, Blumenfield, | | |
| |Bradford, Charles | | |
| |Calderon, Campos, Davis, | | |
| |Gatto, Ammiano, Hill, | | |
| |Lara, Mitchell, Solorio | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Harkey, Donnelly, | | |
| |Nielsen, Norby, Wagner | | |
| | | | |
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SUMMARY : Reauthorizes a locally-controlled joint powers
authority (JPA), upon specified conditions and until December
31, 2013, to assume administrative responsibilities for the
state-supported San Joaquin intercity rail passenger service
(San Joaquin). Specifically, this bill :
1)Provides that the Secretary of the Business, Transportation
and Housing Agency (Secretary), upon a determination that
transferring responsibility for intercity rail service to a
JPA would yield cost reductions, may authorize the Department
of Transportation (Caltrans) to enter into an interagency
transfer agreement.
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2)States legislative intent that state funding, for an intercity
rail corridor for which administrative responsibility has been
transferred to a JPA, should be maintained at least at the
current funding level for at least three years.
3)Establishes the board of the San Joaquin JPA comprising up to
11 members, and defines the "San Joaquin Corridor" as covering
the Los Angeles-Bakersfield-Fresno-Stockton-Sacramento-San
Francisco-Oakland intercity passenger rail corridor.
4)Requires that the interagency agreement between Caltrans and
the San Joaquin JPA be executed by December 31, 2013.
5)Prohibits, with respect to the San Joaquin Corridor, use of
local resources to offset any reduction or redirection of
state resources for intercity rail operations.
6)Repeals and recasts the Steering Committee of the Caltrans
Rail Task Force to advise the JPA.
EXISTING LAW :
1)Authorizes Caltrans, in cooperation with local transportation
officials, to develop guidelines to implement the intercity
rail program and defines the intercity rail corridors within
which rail projects are eligible for funding. Requires
Caltrans to develop a comprehensive statewide rail passenger
and freight system plan.
2)Authorizes Caltrans to contract with Amtrak for intercity rail
passenger services and provides funding for these services
from the Public Transportation Account.
3)Authorized, until December 31, 1996, Caltrans, subject to
approval of the Secretary, to enter into an interagency
transfer agreement under which a JPA assumes responsibility
for administering the state-funded intercity rail service in a
particular corridor, including the San Joaquin Corridor.
4)Establishes the terms of the interagency transfer agreements,
when approved by the Secretary, to include various elements as
specified.
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5)Authorizes the establishment of the San Joaquin JPA upon
agreement of the represented agencies for the purpose of
assuming responsibility for intercity passenger rail services
in the San Joaquin corridor. Specifies the membership of the
agency, including members from the Capitol Corridor JPA and
from the County of Los Angeles.
6)Establishes the San Joaquin Valley Rail Committee to be
comprised of elected officials and members of the public
representing 13 counties along the San Joaquin train route.
7)Authorizes the Steering Committee of the Caltrans Rail Task
Force to confer with the Secretary to coordinate intercity
passenger rail service for the San Joaquin Corridor, including
assisting in the development of an appropriate management
structure for the San Joaquin corridor as an element of a
coordinated statewide intercity rail system.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, this bill will have a one-time special fund cost to
Caltrans in the range of $150,000 to implement a transfer
agreement with the JPA, including supporting the transition of
Caltrans' equipment and facilities. Following implementation of
the JPA, Caltrans would realize ongoing administrative savings
of about $300,000. That committee further indicates that
fulfilling legislative intent to maintain current funding state
levels to the San Joaquin Corridor for at least three years
could create cost pressure if overall state funding for
intercity rail were to be reduced during this time.
COMMENTS : Intercity passenger rail service is a component of
the state's overall transportation system and operates between
several regions of the state. Accordingly, intercity rail
travel services are provided between metropolitan areas and to
rural areas. For California, intercity rail passenger services
include three state-supported corridor routes and four Amtrak
long-distance routes. The three in-state intercity rail routes
were funded, planned and administered by Caltrans until July
1998, when the Capitol Corridor JPA assumed administration of
the Capitol Corridor (Auburn-Sacramento-Oakland-San Jose). The
other two intercity rail passenger services, the Pacific
Surfliner (service between San Luis Obispo and San Diego through
Santa Barbara and Los Angeles) and the San Joaquin (serving
Central Valley, linking Los Angeles and Bakersfield with
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Sacramento and the Bay Area) continue to be administered by
Caltrans.
In California, Amtrak operates all three state-supported
intercity rail services, although for the Capitol Corridor,
there is an agreement with the Capitol Corridor JPA that Amtrak
continue to operate that intercity service. The state of
California, through Caltrans, funds 70% of the operating deficit
of the Pacific Surfliner with Amtrak funding the remaining 30%
operating deficit (ridership farebox revenues minus operational
costs). For the San Joaquin and the Capitol Corridor service,
Caltrans funds 100% of the operating deficit. Amtrak pays 30%
of the operating deficit for the San Diego service as it was a
part of the basic national passenger train service. Lastly,
California pays for the majority of capital improvements to
these intercity rail services.
Purpose of the bill: This bill would reauthorize a
locally-controlled JPA, until December 31, 2013, to assume
administrative responsibilities for the state-supported San
Joaquin. The author cites the 15-year period of successful
operation of the Capitol Corridor JPA since the administration
of the Capitol Corridor was transferred to that JPA from
Caltrans. The author indicates the success was accomplished
without the direct financial contribution by the member agencies
of the Capitol Corridor JPA and cites that beyond the "more cost
effective administration and operations, the Capitol Corridor
JPA has shown that there are several other potential benefits to
local authority administration of intercity passenger service
including: the ability to have a stronger voice in advocating
for service improvements and expansions; local decision-making
that is more responsive and adaptive to passenger issues; the
ability to take better advantage of joint marketing and
partnerships with local agencies; and more engagement by local
communities to support the service."
The author further indicates that the Central Valley Rail
Working Group is working with other entities to explore the
development of a regional JPA that would enable regional
governance of the San Joaquin, similar to the Capitol Corridor
JPA. This legislation furthers that effort.
Arguments in support:
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1)Writing in support of this bill, numerous cities and regional
entities within the San Joaquin Valley contend that with a
more efficient administration and stronger local/regional
support, a regionally managed San Joaquin service can result
in much higher frequencies of service and increases in
ridership and revenue - similar to the Capitol Corridor JPA.
They cite that the increases in service and ridership will
result in more jobs, improve air quality, and help promote
sustainable development.
2)Upon implementation of the agreement between Altamont Commuter
Express and the current San Joaquin operations, the Unified
Service will facilitate the effective integration of the these
services with the early implementation of the California
High-Speed Rail Authority's (Authority's) initial high-speed
rail construction segment, scheduled for construction in 2018.
Further, upon completion of the rail linkage between
Bakersfield and the San Fernando Valley, higher speed service
for the California's intercity rail spine will be seamless and
operational.
3)As the Secretary has presumptive approval authority to
effectuate the state's transfer of responsibilities and assets
to the local JPA, it will do so only upon the determination
that such a transfer will result in administrative or
operating cost reductions.
4)The terms of the interagency transfer agreement, as specified
under existing law, serve to protect the interests of the
joint powers authority as well as the state. Further, as an
element of the interagency transfer agreement, the requirement
for the JPA business plan will provide a roadmap on how the
entity will proceed and provide some level of confidence to
state decisionmakers.
5)This bill requires the Steering Committee of the Caltrans Rail
Task Force to advise the JPA. As Caltrans has improved the
services to high ridership levels, its expertise in continuing
successful operations of this corridor could prove invaluable.
6)According to the sponsors, the formation of a JPA could
"provide stronger negotiating strength with the freight
railroads for new passenger services or dealing with freight
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conflicts."
7)SB 1225 (Padilla), currently being considered in the Senate,
makes significant changes to the elements of the interagency
transfer agreement and, accordingly, both bills will need to
be harmonized in the near term.
Arguments in opposition:
1)This bill may be premature, especially as California is
undertaking a major high-speed rail planning and
implementation project. A large component of this effort
focuses on "blending" high-speed rail services and
conventional commuter and intercity passenger rail services in
the San Joaquin corridor. Considering the technical,
operational, and policy issues that need to be resolved by the
Authority, Caltrans, and other agencies, at this point in
time, a change in administration of the San Joaquin may be
problematic.
2)Rail service in this corridor is not a regional function. The
San Joaquin corridor acts as the "spine" of intercity
passenger rail in the state, connecting with other rail and
public transportation services in northern and southern
California. Coordination with the state-administered
Surfliner Corridor would be more difficult, particularly with
the extensive bus-train linkages between the two corridors.
3)Any additional capacity of the railroads operating within the
San Joaquin corridor may not materialize, making it difficult
to achieve additional rail passenger services.
4)The bill requires that the current level of rail service be
maintained for at least three years. However, if funding
shortfalls should come about because of revenue declines, the
bill does not specify sources of additional funding.
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093
FN: 0003822
AB 1779
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