AB 1501, as amended, Patterson. High-speed rail.
Existing law creates the High-Speed Rail Authority with specified powers and duties relating to the development and implementation of an intercity high-speed rail system. Existing law, pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, authorizes $9.95 billion in general obligation bonds for high-speed rail development and other related purposes. The federal American Recovery and Reinvestment Act of 2009 (ARRA) and other federal acts provide funding for allocation nationally to high-speed rail projects. The Budget Act of 2012 appropriates federal funds, and state funds in the High-Speed Passenger Train Bond Fund, to the authority for various purposes related to the high-speed rail project, including right-of-way acquisition and construction.
This bill would prohibit the authority from expending the federal funds appropriated to the authority pursuant to the Budget Act of 2012 unless state funds appropriated from the High-Speed Passenger Train Bond Fund or from another state funding source are immediately available to the authority for the purpose of providing matching state funds for the federal funds. This requirement would apply regardless of whether the federal government has authorized the expenditure of the federal funds without the immediate availability of the nonfederal match that is a condition for the award of the federal funds. The bill would also make legislative findings and declarations.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
The Legislature finds and declares all of the
2following:
3(a) When voters approved Proposition 1A on November 4, 2008,
4they authorized the state to issue $9.95 billion in general obligation
5bonds and expend the proceeds for the construction of a 520-mile
6high-speed rail system between San Francisco and Los
7Angeles/Anaheim. In the official title and summary approved by
8the Legislature, voters were promised that the only cost to the
9state’s General Fund would be “to pay bond principal and interest.”
10(b) Neither the Legislature nor the voters have approved the
11direct expenditure of state
General Fund dollars for high-speed
12rail construction.
13(c) On July 6, 2012, the Legislature enacted SB 1029 (Chapter
14152 of the Statutes of 2012), amending the 2012−13 Budget Act
15to appropriate $4.7 billion in state bond funds and $3.3 billion in
16federal high-speed rail funds to initiate high-speed rail construction.
17Under an agreement with the federal government, the federal funds
18require state matching funds. It was the intent of the Legislature
19in enacting SB 1029 that the appropriated state bond funds would
20be used to provide this match.
21(d) On August 16, 2013, a Sacramento Superior Court judge
22ruled that the High-Speed Rail Authority had not yet met the legal
23requirements to access and spend Proposition 1A bond funds for
24high-speed rail construction.
25(e) In its October 11, 2013, response, the High-Speed Rail
26Authority did not dispute this finding, but argued that, even if it
27cannot access or spend Proposition 1A bond fundsbegin insert for constructionend insert,
28it can proceed with construction using federal funds. Because
29federal funds must be matched with state funds, the authority
30argued that other sources of state funds, including, but not limited
P3 1to, the state’s General Fund, can be used to fulfill this matching
2requirement.
3(f) This course of action enables the High-Speed Rail Authority
4to unilaterally obligate the state to provide more than $3 billion in
5state resources toward high-speed rail construction that may
6otherwise be designated for
purposes such as education, health
7care, or public safety, without any prior review or approval by the
8Legislature.
9(g) It is the intent of the Legislature in enacting this act to ensure
10that, if the High-Speed Rail Authority cannot legally spend state
11matching funds appropriated by the Legislature, it may not obligate
12the state to provide additional sources of state funds that have not
13yet been appropriated by the Legislature.
Section 185036.2 is added to the Public Utilities Code,
15to read:
The authority may not expend the federal funds
17appropriated to the authority pursuant to Chapter 152 of the Statutes
18of 2012 unless state funds appropriated from the High-Speed
19Passenger Train Bond Fund or from another state funding source
20are immediately available to the authority for the purpose of
21providing matching state funds for the federal funds. This
22requirement shall apply regardless of whether the federal
23government has authorized the expenditure of the federal funds
24without the immediate availability of the nonfederal match that is
25a condition for the award of the federal funds.
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