BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Kevin Murray, Chairman

                                           1010 (Florez)
          
          Hearing Date:  1/19/06          Amended: 1/4/06
          Consultant:  John Decker        Policy Vote: EU&C, 6-2
                                 /Mark McKenzie
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   SB 1010 requires freight railroads operating in  
          the state to report annually on its track use and capacity.  It  
          also authorizes the City of Shafter to establish a special  
          district to develop and operate an intermodal rail facility.  
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2006-07      2007-08       2008-09     Fund
           Administrative costs   $150                             Special*
          *The Public Utilities Commission is financed with several fees  
          on ratepayers.
          _________________________________________________________________ 
          ____

          STAFF COMMENTS:  SUSPENSE FILE.
          
          The bill requires freight railroads owning or operating lines in  
          California to report annually on track use and capacity.  The  
          railroad are to file the report with the state Public Utilities  
          Commission, the Air Resources Board and CalTrans.  These  
          agencies are directed by the bill to develop procedures for the  
          railroads to use when making the  annual reports.

          The bill also authorizes the City of Shafter to create a special  
          district, but delegates to the city all governance issues.  The  
          bill directs that all revenues paid to the district to be used  
          for intermodal rail.

          Although the Public Utilities Commission does not have a  
          specific estimate for the costs of this bill, it expects costs  
          to be "significant" - in excess of $150,000-to develop standards  
          for the report.

          Staff note that most special districts are established by  
          statutory provision and are subject to requirements of open  










          meetings, fair political practices, LAFCO  and the California  
          Environmental Quality Act, among others.  Staff recommend that  
          the district created under this bill be subject to these laws.

          Moreover, special districts derive their fee and tax authority  
          from legislative delegation.  Staff recommend that if the  
          author's intent is to have the district levy fees, charges or  
          taxes, then the bill should circumscribe the revenue authority.   
          If, instead, the district is to rely solely on enterprise  
          revenue, then the bill should state this limitation.