BILL ANALYSIS �
SB 557
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Date of Hearing: August 14, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 557 (Hill) - As Amended: May 2, 2013
Policy Committee:
TransportationVote:13-2
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill restates various provisions related to restrictions on
the use of bond funds appropriated for development of the
high-speed rail system in the San Francisco Bay Area.
Specifically, this bill:
1)Makes funds available only for improvements consistent with
the Memorandum of Understanding (MOU) approved between the
California High-Speed Rail Authority (HSRA) and local Bay Area
partners prior to the appropriation.
2)Prohibits funds dedicated to the San Francisco-to-San Jose
segment from being used to expand the project beyond the
agreed-upon "blended system" with existing commuter rail
service or to build a four-track system.
3)Provides that the requirement to use funds consistent with the
MOU and the prohibition on the use of funds for purposes other
than the San Francisco-to-San Jose segment remain in effect as
long as the appropriation for the "bookend" segments remains
available for encumbrance.
4)Requires approval from all parties to the MOU to expand the
system beyond the "blended system" planned for the Peninsula
corridor.
FISCAL EFFECT
Negligible fiscal impact, as this bill restates current
requirements for expenditure of the appropriated funds.
SB 557
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COMMENTS
1)Background . SB 1029 (Committee on Budget and Fiscal
Review)/Chapter 152 of 2012 appropriated the state bond and
federal funds necessary to award the design-build construction
contracts for the first segment of the high-speed rail
project. The bill also appropriated $1.1 billion in bond funds
for investment in the "bookend" segments of the system located
in the northern and southern California regions. SB 1029
included extensive reporting requirements and expenditure
restrictions.
2)Purpose . According to the author, this bill closes potential
loopholes to make sure that funds cannot be transferred from
the San Francisco Peninsula segment to other segments of the
high-speed rail system. In addition, the bill clarifies that
appropriated funds will be used solely to implement the
negotiated two-track blended system on the San Francisco
Peninsula. Finally, the author contends this bill provides a
critical safeguard against expansion of the shared system by
requiring HSRA to obtain approval for any changes from all
nine entities that were party to the original MOU involving
the San Francisco Peninsula segment. The author feels that
these protections are important to ensure that the HSRA
continues to honor existing agreements and funding
restrictions.
Despite the fact that this bill simply restates existing law
and highlights existing agreements, the author feels it is
important to explicitly outline existing agreements between
the HSRA and MOU signatory entities and conditions set forth
in the budget.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081