Signed by Governor Arnold Schwarzenegger

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that amends the provisions of the $9.95 billion bond measure that is to be submitted to voters during the November 2008 general election to construct a high-speed rail system, with respect to the oversight process, environmental impact report, business and funding plan, excess revenue, bond proceeds, and funding prioritization.

Highlights:

- Changes the designation of the proposition on the ballot from Proposition 1 to Proposition 1A [sec. 11 (b)]. - Requires that Phase 1 of the High-Speed Rail System be the construction of the corridor between San Francisco Transbay Terminal and Los Angeles Union Station and Anaheim [sec. 9 (2704.04) (b) (2)]. - Authorizes the High-Speed Rail Authority (Authority) to expend bond proceeds on other corridors as long as it does not interfere with the construction of Phase 1 [sec. (9) (2704.04) (b) (3)]. - Establishes a 10 percent cap on the use of bond proceeds for planning, engineering, and capital costs to be used for environmental studies, planning, and preliminary engineering activities [sec. 9 (2704.08) (b)]. - Requires the Authority to give priority in selecting corridors or segments for construction to those that are expected to require the least amount of total bond funds as a percentage of the total cost of construction [sec. 9 (2704.08) (f) (3)]. - Requires the Authority to submit a revised business plan to the Legislature that details the sources of funding, the primary benefits the system will provide, expected patronage, projected costs, foreseeable engineering and financial risks, and the proposed chronology for the system by September 1, 2008 (Sec. 1). - Redefines the systems northernmost corridor as the Merced to Stockton to Oakland and San Francisco via the Altamont Corridor [sec. 9 (2704.04) (b) (3) (G)]. - Requires the initiation of construction of the high-speed train system to be consistent with the Authority's environmental impact report of November 2005, as opposed to the final business plan of June 2000 [sec. 9 (2704.04) (a)]. - Requires the excess revenue from the operation of the high-speed train system to be used for finance construction, expansion, improvement, replacement, and rehabilitation of the system [sec. 9 (2704.04) (b) (5)]. - Requires the Authority to establish an independent peer review group to review the planning, engineering, financing, and financial viability of the plan. The peer review group will consist of [sec. 2 (185035) (a-c)]:

- Two members designated by the Treasurer with experience in engineering and construction of high-speed trains in Europe and/or Asia; - Two members designated by the Controller, one with experience in engineering and construction of high-speed trains and one with experience in project finance; - One member designated by the Director of Finance from a financial services firm; - One member designated by the Secretary of Business, Transportation, and Housing with experience in environmental planning; and - Two members designated by the Secretary of Business, Transportation, and Housing from agencies providing intercity or commuter passenger train service in California.

- Requires the Authority to submit a funding plan that is approved by the peer review group to the Director of Finance no later than 90 days prior to the submittal of the initial request for appropriations that includes the following [sec. 9 (2704.08) (c) (2)]:

- The corridor or segment that the Authority will invest in; - A description of the terms and conditions associated with any lease agreement proposed to be entered into by the Authority for the construction or operation of passenger train services in the corridor; - The estimated full cost of constructing the corridor or segment, an estimate of potential construction cost escalation, and amount of contingency reserves; - The source of all funds to be invested; - The projected ridership and operating revenue; - All possible risks associated with construction and operations; - A statement that construction of the corridor can be completed as proposed; - A statement that the corridor will be suitable and ready for high-speed rail service; - A statement that one or more passenger service providers can begin using the tracks and stations; - A statement that the planned service will not require a local, state, or federal operating subsidy; and - A statement that the Authority has completed all necessary project level environmental clearances necessary to begin construction.

- Establishes a 2.5 percent cap on the use of bond proceeds for administrative purposes [sec. 9 (2704.08) (h)].

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends the provisions of the $9.95 billion bond measure that is to be submitted to voters at the November 2008 general election to construct a high-speed rail system, with respect to the oversight process, environmental impact report, business and funding plan, excess revenue, bond proceeds, and funding prioritization.

Highlights:

- Changes the designation of the proposition on the ballot from Proposition 1 to Proposition 1A [sec. 11 (b)]. - Requires that Phase 1 of the High-Speed Rail System be the construction of the corridor between San Francisco Transbay Terminal and Los Angeles Union Station and Anaheim [sec. 9 (2704.04) (b) (2)]. - Authorizes the High-Speed Rail Authority (Authority) to expend bond proceeds on other corridors as long as it does not interfere with the construction of Phase 1 [sec. (9) (2704.04) (b) (3)]. - Establishes a 10 percent cap on the use of bond proceeds for planning, engineering, and capital costs to be used for environmental studies, planning, and preliminary engineering activities [sec. 9 (2704.08) (b)]. - Requires the Authority to give priority in selecting corridors or segments for construction to those that are expected to require the least amount of total bond funds as a percentage of the total cost of construction [sec. 9 (2704.08) (f) (3)]. - Requires the Authority to submit a revised business plan to the Legislature that details the sources of funding, the primary benefits the system will provide, expected patronage, projected costs, foreseeable engineering and financial risks, and the proposed chronology for the system by September 1, 2008 (Sec. 1). - Redefines the systems northernmost corridor as the Merced to Stockton to Oakland and San Francisco via the Altamont Corridor [sec. 9 (2704.04) (b) (3) (G)]. - Requires the initiation of construction of the high-speed train system to be consistent with the Authority's environmental impact report of November 2005, as opposed to the final business plan of June 2000 [sec. 9 (2704.04) (a)]. - Requires the excess revenue from the operation of the high-speed train system to be used for finance construction, expansion, improvement, replacement, and rehabilitation of the system [sec. 9 (2704.04) (b) (5)]. - Requires the Authority to establish an independent peer review group to review the planning, engineering, financing, and financial viability of the plan. The peer review group will consist of [sec. 2 (185035) (a-c)]:

- Two members designated by the Treasurer with experience in engineering and construction of high-speed trains in Europe and/or Asia; - Two members designated by the Controller, one with experience in engineering and construction of high-speed trains and one with experience in project finance; - One member designated by the Director of Finance from a financial services firm; - One member designated by the Secretary of Business, Transportation, and Housing with experience in environmental planning; and - Two members designated by the Secretary of Business, Transportation, and Housing from agencies providing intercity or commuter passenger train service in California.

- Requires the Authority to submit a funding plan that is approved by the peer review group to the Director of Finance no later than 90 days prior to the submittal of the initial request for appropriations that includes the following [sec. 9 (2704.08) (c) (2)]:

- The corridor or segment that the Authority will invest in; - A description of the terms and conditions associated with any lease agreement proposed to be entered into by the Authority for the construction or operation of passenger train services in the corridor; - The estimated full cost of constructing the corridor or segment, an estimate of potential construction cost escalation, and amount of contingency reserves; - The source of all funds to be invested; - The projected ridership and operating revenue; - All possible risks associated with construction and operations; - A statement that construction of the corridor can be completed as proposed; - A statement that the corridor will be suitable and ready for high-speed rail service; - A statement that one or more passenger service providers can begin using the tracks and stations; - A statement that the planned service will not require a local, state, or federal operating subsidy; and - A statement that the Authority has completed all necessary project level environmental clearances necessary to begin construction.

- Establishes a 2.5 percent cap on the use of bond proceeds for administrative purposes [sec. 9 (2704.08) (h)].

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends the provisions of the $9.95 billion high-speed rail system bond measure that is to be submitted to voters at the November, 2008 general election, with respect to the environmental impact report, business plan, excess revenue, bond proceeds, and funding prioritization.

Highlights:

- Requires the initiation of construction of the high-speed train system to be consistent with the High-Speed Rail Authority's environmental impact report of November 2005, as opposed to the final business plan of June 2000 [sec. 2 (a)]. - Extends funding to the Altamont Corridor connecting Central Valley to the East Bay [sec. 2 (b) (1)]. - Requires excess revenue from the operation of the high-speed train system to be used to finance construction of the high-speed train system, and any remaining revenue to be deposited into the General Fund [sec. 2 (b) (3)]. - Requires that no more than 10 percent of bond proceeds be used for environmental studies, planning, and preliminary engineering activities [sec. 4 (b)]. - Requires the Authority to have a detailed funding plan for each segment of the system that identifies the full cost of construction and the sources of revenues for that segment [sec. 4 (c)]. - Requires the Authority to give priority in selecting segments for construction to those that are expected to require the least amount of total bond funds as a percentage of the total cost of construction [sec. 4 (d)].

Full Bill Text