BILL NUMBER: SB 1225	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 30, 2012
	AMENDED IN ASSEMBLY  AUGUST 24, 2012
	AMENDED IN ASSEMBLY  AUGUST 20, 2012
	AMENDED IN ASSEMBLY  AUGUST 6, 2012
	AMENDED IN ASSEMBLY  JUNE 27, 2012
	AMENDED IN SENATE  MAY 29, 2012
	AMENDED IN SENATE  MAY 1, 2012
	AMENDED IN SENATE  APRIL 9, 2012

INTRODUCED BY   Senator Padilla
   (Coauthor: Senator Correa)
   (Coauthors: Assembly Members Davis, Galgiani, and Williams)

                        FEBRUARY 23, 2012

   An act  to amend Sections 14031.8, 14070.2, 14070.4, and
14070.6 of,  to add  Sections 14031.9, 14070.3, 14070.5,
and   Section  14070.7 to, and to repeal and add
Article 5.2 (commencing with Section 14072) of Chapter 1 of Part 5 of
Division 3 of Title 2 of, the Government Code, relating to
transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1225, as amended, Padilla. Intercity rail agreements.
   Existing law authorizes the Department of Transportation to
contract with Amtrak for intercity  passenger  rail
 passenger  services and provides funding for these services
from the Public Transportation Account. Existing law, until December
31, 1996, authorized the department, subject to approval of the
Secretary of the Business, Transportation and Housing  Agency
 , to enter into an interagency transfer agreement under
which a joint powers board assumes responsibility for administering
the state-funded intercity rail service in a particular corridor.
Existing law, with respect to a transferred corridor, requires the
board to demonstrate the ability to meet performance standards
established by the secretary. 
   This bill would authorize the department, with approval of the
secretary, to enter into interagency transfer agreements for
additional intercity rail corridors, to be entered into between June
30, 2014, and June 30, 2015. The bill would require the agreements to
cover the initial 3-year period after the transfer, and would
authorize subsequent extensions by mutual agreement. If agreements
are not entered into by the expiration of that period, the bill would
require the secretary to report to the Governor and the Legislature
by June 30, 2016, as specified. 
   This bill would  specifically  authorize  the
department, with the approval of the secretary, to enter into
 an additional interagency transfer agreement  to be
entered into  with respect to the LOSSAN Corridor, defined to
mean the intercity passenger rail corridor between San Diego, Los
Angeles, and San Luis Obispo, if the LOSSAN Agency, an existing joint
powers agency, is reconstituted through an amended joint powers
agreement approved by the governing boards of its members to enable
that agency to enter into an interagency transfer agreement with the
secretary relative to the LOSSAN Corridor. 
   This bill would require a transfer agreement, as provided above,
to be entered into no later than June 30, 2015, subject to
negotiation and approval by the state and the LOSSAN Corridor Joint
Powers Agency. The bill would require the agreement to cover the
initial 3-year period after the transfer. If an agreement is not
entered into by that date, the bill would require the secretary to
report to the Governor and the Legislature by June 30, 2016, as
specified. 
   Existing law requires the level of service to be funded by the
state pursuant to a transfer agreement to not be less than the
current number of intercity round trips operated in a corridor and
serving the same endpoints.
   This bill would require the service funded by the state 
in the LOSSAN Corridor  to remain the same during the first
3 years following the effective date of  the   a
 transfer agreement, and would require  the LOSSAN
Corridor Joint Powers Agency   the ent   ity
assuming responsibility for a corridor  to provide that level of
service. The bill would prohibit termination of feeder bus services
except for specified reasons.
   Existing law provides for the allocation of state funds by the
secretary to a joint powers board under an interagency transfer
agreement based on the annual business plan for the intercity rail
corridor and subsequent appropriation of state funds. Existing law
states that the interagency transfer agreement may provide that any
additional funds required to operate the  passenger 
 intercity  rail service during a fiscal year shall be
provided by  the   a  joint powers board
from jurisdictions that receive service.
   This bill,  with respect to the LOSSAN Corridor, would,
 if local resources are made available for operating the
intercity rail  services   service  , 
would  require a vote of the local agency providing the
resources, and would require the concurrence of the  LOSSAN
Corridor Joint Powers Agency in that regard   joint
powers board in that regard  .
   This bill would authorize the secretary to adopt new performance
standards for intercity rail services. 
   Existing law authorizes the department and any entity that assumes
administrative responsibility for passenger rail services through an
interagency transfer agreement to contract with specified entities
for the use of tracks and other facilities and for the provision of
passenger rail services.  
   This bill would require a contractor under an agreement specified
above to agree that its labor relations shall be governed by a
specified federal act relating to labor relations on railroads and
would add similar provisions applicable to the LOSSAN Corridor, as
specified. 
   This bill would repeal now-obsolete provisions authorizing the
Southern California Regional Rail Authority to be a party to an
interagency transfer agreement for intercity rail services in
specified counties.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  This act shall be known and may be cited as the
Intercity Passenger Rail Act of 2012.
  SEC. 2.  (a) The Legislature finds and declares all of the
following:
   (1) An intercity passenger rail system, linking major urban
centers and complemented by feeder bus services that provide access
to outlying areas and destinations, is an important element of the
state's transportation system, and shall remain a state-funded
program.
   (2) The state has a continuing interest in the provision of
cost-effective intercity passenger rail services and has a
responsibility to coordinate intercity passenger rail services
statewide.
   (3) Since 1976, the state has invested over one billion eight
hundred million dollars ($1,800,000,000) in capital improvements and
operating support for intercity passenger rail service and must
ensure the protection of that investment.
   (4) Intercity rail service and ridership increases will result in
more jobs, improve air quality, and help promote sustainable
development.
   (b) The Legislature, through the enactment of this act, intends
all of the following:
   (1) The Secretary of Business, Transportation and Housing shall be
responsible for the overall planning, coordination, and budgeting of
the intercity passenger rail service.
   (2) If the secretary determines that transferring responsibility
for intercity passenger rail service in a particular corridor or
corridors to a statutorily created joint powers agency would result
in administrative or operating cost reductions, the secretary may
authorize the Department of Transportation to enter into an
interagency transfer agreement to effect a transfer of those
administrative functions, consistent with this act.
   (3) Any intercity passenger rail corridor for which administrative
responsibility has been transferred to a joint powers board through
an interagency transfer agreement shall remain a component of the
statewide system of intercity passenger rail corridors.
   (4) The public interest requires expansion of the state intercity
passenger rail program in order to keep pace with the needs of an
expanding population.
   (5) For not less than a three-year period following the effective
date of the interagency transfer agreement, the level of state
funding for intercity rail service in each corridor shall be
maintained at a level equal to at least the level of service funded
by the state in the corridor as of the effective date of the
interagency transfer agreement, thus providing fiscal stability that
will allow appropriate planning and operation of these services. 

   (6) It is in the public interest to ensure fiscal accountability
that the intercity rail service operating in the LOSSAN Corridor
maintain a ratio of fare revenue to operating cost of no less than 55
percent.  
  SEC. 3.    Section 14031.9 is added to the
Government Code, to read:
   14031.9.  (a) (1) This section shall apply only to the San
Diego-Los Angeles-San Luis Obispo (LOSSAN) Corridor, and only if that
corridor is the subject of an interagency transfer agreement.
   (2) The Secretary of Business, Transportation and Housing shall
establish, through an annual budget process, the level of state
funding available for the operation of intercity passenger rail
service, including associated feeder bus service, in the LOSSAN
Corridor.
   (b) Where applicable, operating funds shall be allocated by the
secretary to the LOSSAN Corridor Joint Powers Agency in accordance
with the interagency transfer agreement that includes mutually
agreed-upon rail services. Funds for the administration and marketing
of services, as appropriate, shall also be transferred by the
secretary to the LOSSAN Corridor Joint Powers Agency, subject to the
terms of the interagency transfer agreement.
   (c) The LOSSAN Corridor Joint Powers Agency or local or regional
agencies may, but shall not be required to, augment state-provided
resources to expand intercity passenger rail services using local
resources, or to address funding shortfalls in achieving agreed-upon
performance standards. The LOSSAN Corridor Joint Powers Agency or
local or regional agencies may identify and secure new supplemental
sources of funding for the purpose of expanding or maintaining
intercity rail passenger rail service levels, which may include state
and federal intercity rail resources. Local resources may be
available to offset any redirection, elimination, reduction, or
reclassification by the state of state resources for operating
intercity rail services identified in subdivision (b) only if the
resources are dedicated by a vote of the local agency providing the
funds, with the concurrence of the LOSSAN Corridor Joint Powers
Agency.
   (d) The department may provide any support services as may be
mutually agreed upon by the LOSSAN Corridor Joint Powers Agency and
the department.
   (e) Operating costs shall be controlled by dealing with, at a
minimum, the Amtrak cost allocation formula and the ability to
contract out to Amtrak or other rail operators as a part of federal
legislation dealing with Amtrak reauthorization.
   (f) (1) Not later than June 30, 2014, the secretary shall
establish a set of uniform performance standards for all corridors
and operators to control cost and improve efficiency.
   (2) To the extent necessary, as determined by the secretary,
performance standards may be modified not later than July 30, 2015,
or the effective date of the interagency transfer agreement,
whichever comes first.
   (3) Feeder bus services that provide connections for intercity
rail passenger service shall not be terminated unless the bus
services fail to meet the cost-effectiveness standard described in
paragraph (3) of subdivision (a) of Section 14035.2. 

  SEC. 4.    Section 14070.3 is added to the
Government Code, to read:
   14070.3.  (a) If authorized by the secretary, the department may,
through an interagency transfer agreement, transfer to the LOSSAN
Corridor Joint Powers Agency, and that agency may assume, all
responsibility for administering state-funded intercity passenger
rail service, including associated feeder bus service, in the San
Diego-Los Angeles-San Luis Obispo (LOSSAN) Corridor. Upon the date
specified in the agreement, the LOSSAN Corridor Joint Powers Agency
shall succeed to the department's powers and duties relative to that
service, except that the department shall retain responsibility for
developing budget requests for the service, consistent with the
annual business plan as approved by the secretary for the service,
through the state budget process, which shall be developed in
consultation with that agency, and for coordinating service in the
corridor with other intercity passenger rail services in the state.
   (b) With respect to the LOSSAN Corridor, an interagency transfer
agreement may be entered into on or before June 30, 2014, but not
later than June 30, 2015, subject to negotiation and approval by the
state and the LOSSAN Corridor Joint Powers Agency. The interagency
transfer agreement between the department and the LOSSAN Corridor
Joint Powers Agency shall cover the initial three-year period after
the transfer, but may be extended thereafter by mutual agreement. If
an interagency agreement is not entered into on or before June 30,
2015, the secretary shall provide a report to the Governor and the
Legislature on or before June 30, 2016, explaining why an acceptable
agreement has not been developed, with specific recommendations for
developing an acceptable interagency agreement.
   (c) The secretary shall require the LOSSAN Corridor Joint Powers
Agency to demonstrate the ability to meet the performance standards
established by the secretary pursuant to subdivision (f) of Section
14031.9.
   (d) Section 14070.2 shall not apply to the LOSSAN Corridor.
 
  SEC. 5.    Section 14070.5 is added to the
Government Code, to read:
   14070.5.  (a) An interagency transfer agreement between the
department and the LOSSAN Corridor Joint Powers Agency, when approved
by the secretary, shall do all of the following:
   (1) Specify the date and conditions for the transfer of
responsibilities and identify the annual level of funding for the
initial three years following the transfer and ensure that the level
of funding is consistent with and sufficient for the planned service
improvements within the LOSSAN Corridor.
   (2) Identify, for the initial year and subsequent years, the funds
to be transferred to the agency including state operating subsidies
made available for intercity rail services in the corridor, and funds
currently used by the department for administration and marketing of
the corridor, with the amounts adjusted annually for inflation and
in accordance with the business plan.
   (3) Specify the level of service to be provided, the respective
responsibilities of the agency and the department, the methods that
the department will use to ensure the coordination of services with
other rail passenger and feeder bus services in the state, and the
methods that the department will use for the annual review of the
business plan and annual proposals on funding and appropriations.
   (4) Describe the terms of use by the LOSSAN Corridor Joint Powers
Agency of car and locomotive train sets, and other equipment and
property owned by the department and required for intercity passenger
rail service in the LOSSAN Corridor, including, but not limited to,
the number of units to be provided, liability coverage, maintenance
and warranty responsibilities, and indemnification issues.
   (5) Describe auditing responsibilities and process requirements,
reimbursement and billing procedures, the responsibility for funding
shortfalls, if any, during the course of each fiscal year, an
operating contract oversight review process, performance standards
and reporting procedures, the level of rail infrastructure
maintenance, and other relevant monitoring procedures.
   (b) Use of the annual state funding allocation, as set forth in
the interagency transfer agreement, shall be described in an annual
business plan submitted by the LOSSAN Corridor Joint Powers Agency to
the secretary for review and recommendation by April 1 of each year.
The business plan, when approved by the secretary, shall be deemed
accepted by the state. The budget proposal developed by the
department for the subsequent year shall be based upon the business
plan approved by the secretary. The business plan shall be consistent
with the interagency transfer agreement, and shall include a report
on the recent as well as historical performance of the corridor
service, an overall operating plan including proposed service
enhancements to increase ridership and provide for increased traveler
demands in the corridor for the upcoming year, short-term and
long-term capital improvement programs, funding requirements for the
upcoming fiscal year, and an action plan with specific performance
goals and objectives. The business plan shall document service
improvements to provide the planned level of service, inclusion of
operating plans to serve peak period work trips, and consideration of
other service expansions and enhancements. The initial business plan
shall be consistent with the immediately previous State Rail Plan
developed by the department pursuant to Section 14036 and the January
2014 business plan developed by the High-Speed Rail Authority
pursuant to Section 185033 of the Public Utilities Code. Subsequent
business plans shall be consistent with the immediately previous
plans developed by the department and the authority. The business
plan shall clearly delineate how funding and accounting for
state-sponsored intercity passenger rail services shall be separate
from locally sponsored services in the corridor. Proposals to expand
or modify intercity passenger rail services shall be accompanied by
the identification of all associated costs and ridership projections.
The business plan shall establish, among other things: fares,
operating strategies, capital improvements needed, and marketing and
operational strategies designed to meet performance standards
established in the interagency transfer agreement.
   (c) Based on the annual business plan and the subsequent
appropriation by the Legislature the secretary shall allocate state
funds on an annual basis to the LOSSAN Corridor Joint Powers Agency.
As provided in the interagency transfer agreement, any additional
funds that are needed to operate the passenger rail service during a
fiscal year shall be provided by the LOSSAN Corridor Joint Powers
Agency from jurisdictions that receive service. In addition, the
LOSSAN Corridor Joint Powers Agency may use any cost savings or
farebox revenues to provide service improvements related to intercity
service. In any event, the agency shall report the fiscal results of
the previous year's operations as part of the annual business plan.
   (d) The level of service funded by the state during the first
three years following the effective date of the transfer agreement
shall in no case be less than the number of intercity round trips
operated in a corridor and serving the end points currently served by
the intercity rail corridor as of the effective date of the
interagency transfer agreement. Subject to Section 14035.2, the level
of service funded by the state shall also include feeder bus service
with substantially the same number of route miles as the current
feeder system, to be operated in conjunction with the trains. For
that same three-year period, the LOSSAN Corridor Joint Powers Agency
shall continue to provide at least the same level of intercity rail
and feeder bus services as were in operation on the effective date of
the interagency transfer agreement, except that the interagency
transfer agreement shall not prohibit the agency from reducing the
number of feeder bus route miles if the agency determines that a
feeder bus route is not cost effective as provided in Section
14035.2.
   (e) Nothing in this article shall be construed to preclude
expansion of state-approved intercity passenger rail service.
   (f) Local resources may be available to offset any redirection,
elimination, reduction, or reclassification by the state of state
resources for operating intercity rail services identified in
subdivision (b) only if the local resources are dedicated by a vote
of the local agency providing the funds, with the concurrence of the
LOSSAN Rail Corridor Agency.
   (g) Section 14070.4 shall not apply to the LOSSAN Corridor.

   SEC. 3.    Section 14031.8 of the  
Government Code   is amended to read: 
   14031.8.  (a) The Secretary of Business, Transportation and
Housing shall establish, through an annual budget process, the level
of state funding available for the operation of intercity passenger
rail service in each corridor.
   (b) Where applicable, operating funds shall be allocated by the
secretary to the joint powers board in accordance with an interagency
 transfer  agreement  which   that
 includes mutually agreed-upon rail services. Funds for the
administration and marketing of services, as appropriate, shall also
be transferred by the secretary to the joint powers board, subject to
the terms of the interagency agreement.
   (c) The joint powers board or local or regional entities may
augment state-provided resources to expand intercity passenger rail
services, or to address funding shortfalls in achieving agreed-upon
performance standards.  The jo   int powers board or
local or regional agencies may, but shall not be required to,
identify and secure new supplemental sources of funding for the
purpose of expanding or maintaining intercity rail passenger service
levels, which may include state and federal intercity rail resources.
Local resources may be available to offset any redirection,
elimination, reduction, or reclassification by the state of state
resources for operating intercity passenger rail   services
identified in subdivision (b) only if the local resources are
dedicated by a vote of the local agency providing funds, with the
concurrence of the joint powers board. 
   (d) The department may provide any support services as may be
mutually agreed upon by the  joint powers  board and the
department.
   (e) Operating costs shall be controlled by dealing with, at a
minimum, the  current  Amtrak cost allocation
formula and the ability to contract out to Amtrak or other rail
operators as a part of federal legislation dealing with Amtrak
reauthorization.
   (f)  (1)    Not later than  December 31,
1997   June 30, 2014  , the secretary shall
establish a set of uniform performance standards for all corridors
and operators to control cost and improve efficiency. 
   (2) To the extent necessary, as determined by the secretary,
performance standards may be modified not later than July 30, 2015,
or the effective date of the interagency transfer agreement,
whichever comes first.  
   (3) Feeder bus services that provide connections for intercity
rail passengers shall not be terminated unless the bus services fail
to meet the cost-effectiveness standard described in paragraph (3) of
subdivision (a) of Section 14035.2. 
   SEC. 4.    Section 14070.2 of the  
Government Code   is amended to read: 
   14070.2.  (a) If authorized by the secretary, the department may,
through an interagency  transfer  agreement, transfer to a
joint powers board, and the board may assume, all responsibility for
administering  intercity  passenger rail service in the
corridor  , including associated feeder bus service  . Upon
the date specified in the agreement, the board shall succeed to the
department's powers and duties relative to that service, except that
the department shall retain responsibility for developing budget
requests for the service  , consistent with the annual business
plan as approved by the secretary for the service,  through the
state budget process, which shall be developed in consultation with
the board, and for coordinating service in the corridor with other
 intercity  passenger rail services in the state.
   (b)  The   An  interagency  transfer
 agreement shall   may  be executed
on or  before December 31, 1996   after June 30,
2014, but not later than June 30, 2015, subject to negotiation and
approval by the state and the board. The interagency transfer
agreement between the department and the board shall cover the
initial three-year period after the transfer, but may be extended
thereafter by mutual agreement. If an interagency agreement is not
entered into on or before June 30, 2015, the secretary shall provide
a report to the Governor and the Legislature on or before June 30,
2016, explaining why an acceptable agreement has not been developed,
with specific recommendations for developing an acceptable
interagency agreement. 
   (c) The secretary shall require the board to demonstrate the
ability to meet the performance standards established by the
secretary pursuant to subdivision (f) of Section 14031.8.
   SEC. 5.    Section 14070.4 of the  
Government Code   is amended to read: 
   14070.4.  (a) An interagency transfer agreement between the
department and a joint powers board, when approved by the secretary,
shall do all of the following:
   (1) Specify the date and conditions for the transfer of
responsibilities and identify the annual level of funding  for
the initial three years following the transfer  and ensure that
the level of funding is consistent with and sufficient for the
planned service improvements within the corridor.
   (2) Identify, for the initial year and subsequent years, the funds
to be transferred to the board including state operating subsidies
made available for intercity rail services in the corridor, and funds
currently used by the department for administration and marketing of
the corridor, with the amounts adjusted annually for inflation and
in accordance with the business plan.
   (3) Specify the level of service to be provided, the respective
responsibilities of the board and the department, the methods that
the department will use to assure the coordination of services with
other rail passenger  and feeder bus  services in the state,
and the methods that the department will use for the annual review
of the business plan and annual proposals on funding and
appropriations.
   (4) Describe the terms  for transferring to  
of use by  the  joint exercise of powers agency
  board of  car and locomotive train sets 
,  and other equipment and property owned by the department
and required for the intercity service in the corridor including,
but not limited to, the number of units to be provided, liability
coverage, maintenance and warranty responsibilities, and
indemnification issues.
   (5) Describe auditing responsibilities and process requirements,
reimbursement and billing procedures, the responsibility for funding
shortfalls, if any, during the course of each fiscal year, an
operating contract oversight review process, performance standards
and reporting procedures, the level of rail infrastructure
maintenance, and other relevant monitoring procedures.  The
description shall contain an evaluation of the impact of any transfer
of equipment on other intercity corridors. The agreement shall
endeavor to minimize the impact and maximize the efficient use of the
equipment, including continued joint use of equipment that is
currently shared by one or more corridors. 
   (b) Use of the annual state funding allocation, as set forth in
the interagency transfer agreement, shall be described in an annual
business plan submitted by the board to the secretary for review and
recommendation by April 1 of each year. The business plan, when
approved by the secretary, shall be deemed accepted by the state. The
budget proposal developed by the department for the subsequent year
shall be based upon the business plan approved by the secretary. The
business plan shall be consistent with the interagency agreement and
shall include a report on the recent as well as historical
performance of the corridor service, an overall operating plan
including proposed service  enhancement  
enhancements  to increase ridership and provide for increased
traveler demands in the corridor for the upcoming year, short-term
and long-term  capitol   capital 
improvement programs, funding requirements for the upcoming fiscal
year, and an action plan with specific performance goals and
objectives. The business plan shall document service improvements to
provide the planned level of service, inclusion of operating plans to
serve peak period work trips, and consideration of other service
expansions and enhancements.  The initial business plan shall be
consistent with the immediately previous State Rail Plan developed by
the department pursuant to Section 14036 and the January 2014
business plan developed by the High-Speed Rail Authority  
pursuant to Section 185033 of the Public Utilities Code. Subsequent
business plans shall be consistent with the immediately previous
plans developed by the department and the authority.  The 
business  plan shall clearly delineate how funding and
accounting for state-sponsored  intercity  rail passenger
services shall be separate from locally sponsored services in the
corridor. Proposals to expand or modify passenger services shall be
accompanied by the identification of all associated costs and
ridership projections. The business plan shall establish, among other
things: fares, operating strategies, capital improvements needed,
and marketing and operational strategies designed to meet performance
standards established in the interagency  transfer 
agreement.
   (c) Based on the annual business plan and the subsequent
appropriation by the Legislature, the secretary shall allocate state
funds on an annual basis to the board. As provided in the interagency
agreement, any additional funds that are  required 
 needed  to operate the passenger rail service during the
fiscal year shall be provided by the board from jurisdictions that
receive service. In addition, the board may use any cost savings or
farebox revenues to provide service improvements related to intercity
service. In any event, the board shall report the fiscal results of
the previous year's operations as part of the annual business plan.
   (d) The level of service funded by the state  during the first
three years following the effective date of the interagency transfer
agreement  shall in no case be less than the  current
 number of intercity round trips operated in a corridor and
serving the end points  currently
                       served by the intercity rail corridor
 as of the effective date of the interagency transfer agreement
 . Subject to Section 14035.2, the level of service funded by
the state shall also include feeder bus service with substantially
the same number of route miles as the current feeder system, to be
operated in conjunction with the trains.  However, 
 For that same three-year period, the board shall continue to
provide at least the same level of intercity rail and feeder bus
services as were in operation on the effective date of the
interagency transfer agreement, except that  the interagency
agreement shall not prohibit the  joint powers 
board from reducing the number of feeder bus route miles if the
 joint powers  board determines that a feeder bus
route is not cost effective as provided in Section 14035.2.
   (e) Nothing in this article shall be construed to preclude
expansion of state-approved intercity rail service. 
   (f) Local resources may be available to offset any redirection,
elimination, reduction, or reclassification by the state of state
resources for operating intercity rail services identified in
subdivision (b) only if the local resources are dedicated by a vote
of the local agency providing the funds, with the concurrence of the
board. 
   SEC. 6.    Section 14070.6 of the  
Government Code   is amended to read: 
   14070.6.  The department and any entity that assumes
administrative responsibility for  intercity  passenger rail
services through an interagency transfer agreement, may, through a
competitive solicitation process, contract with the National Railroad
Passenger Corporation (Amtrak) or with organizations not precluded
by state or federal law to provide  intercity  passenger
rail services, and may contract with rail corporations and other rail
operators for the use of tracks and other facilities and for the
provision of  intercity  passenger services on terms and
conditions as the parties may agree. The department is deemed to be a
third-party beneficiary of the contract, and the contract shall not
contain any provision or condition that would negatively impact on or
conflict with any other contracts the department has regarding
intercity  passenger  rail services. Any entity that
succeeds the department as sponsor of state-supported  intercity
 passenger rail services through an interagency transfer
agreement, is deemed an agency of the state for all purposes related
to  intercity  passenger rail services, including Section
 1614   5311  of Title 49 of the United
States Code.  If the intercity passenger rail service is operated
by a contractor, the contractor shall, as a condition of entering
into an operating agreement with the entity, agree that its labor
relations shall be governed by the federal Railway Labor Act (45
U.S.C. Sec. 151 et seq.).   
   SEC. 6.   SEC. 7.   Section 14070.7 is
added to the Government Code, to read:
   14070.7.  The department and the LOSSAN Rail Corridor Agency, to
the extent the agency assumes administrative responsibility for
intercity passenger rail services on the LOSSAN Corridor through an
interagency transfer agreement, may, through a competitive
solicitation process, contract with Amtrak or with organizations
authorized by state or federal law to provide intercity passenger
rail services, and may contract with rail corporations and other rail
operators for the use of the tracks and other facilities and for the
provision of intercity passenger rail services on terms and
conditions as the parties may agree. The department is deemed to be a
third-party beneficiary of the contract, and the contract shall not
contain any provision or condition that would negatively impact on or
conflict with any other contracts the department has regarding
intercity passenger rail services. The LOSSAN Rail Corridor Agency,
if it succeeds the department as sponsor of state-supported intercity
passenger rail services on the LOSSAN Corridor through an
interagency transfer agreement, is deemed to be an agency of the
state for all purposes related to intercity passenger rail services,
including Section 5311 of Title 49 of the United States Code. If the
 intercity passenger rail service is operated by a contractor
  LOSSAN Rail Corridor Agency or the entity providing
administrative services enters into a contract for the operation of
those services  , the contractor shall, as a condition of
entering into an operating agreement with the  entity providing
administrative services or the LOSSAN Rail Corridor Agency,
agree that its labor relations shall be governed by the federal
Railway Labor Act (45 U.S.C. Sec. 151 and following).
   Section 14070.6 shall not apply to the LOSSAN Corridor.
   SEC. 7.   SEC. 8.   Article 5.2
(commencing with Section 14072) of Chapter 1 of Part 5 of Division 3
of Title 2 of the Government Code is repealed.
   SEC. 8.   SEC. 9.   Article 5.2
(commencing with Section 14072) is added to Chapter 1 of Part 5 of
Division 3 of Title 2 of the Government Code, to read:

      Article 5.2.  LOSSAN Corridor


   14072.  (a) The LOSSAN Rail Corridor Agency, also known as the
LOSSAN Agency, is an existing joint powers authority established to
provide an organization capable of implementing the recommendations
contained in the State Rail Corridor Study Group's June 1987 report
entitled "Los Angeles-San Diego State Rail Corridor Study" and
undertaking related efforts to improve intercity services and
facilities in the corridor and to coordinate subcorridor commuter
rail services with intercity services. The LOSSAN Agency is composed
of voting members, as specified in the joint powers agreement.
   (b) "LOSSAN Corridor" or "LOSSAN Rail Corridor" means the San
Diego-Los Angeles-San Luis Obispo intercity passenger rail corridor.
   14072.2.  This article shall be applicable only if the members of
the LOSSAN Agency enter into an amended joint powers agreement to
expand the authority of the agency to permit the administration of
state-funded intercity passenger rail services on the LOSSAN
Corridor, and the LOSSAN Agency thereafter elects to become a party
to an interagency transfer agreement pursuant to Article 5
(commencing with Section 14070). The amended joint powers agreement
shall establish the terms and conditions for the joint powers agency
and is subject to the approval of the governing board of each member
agency of the LOSSAN Agency. Only the LOSSAN Agency operating under
the amended joint powers agreement, and not the LOSSAN Agency
existing on January 1, 2013, may exercise jurisdiction over intercity
rail services on the LOSSAN Corridor under an interagency transfer
agreement.