BILL ANALYSIS                                                                                                                                                                                                    




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Date of Hearing:  June 24, 1996

                     ASSEMBLY COMMITTEE ON TRANSPORTATION
                              Larry Bowler, Chair

                  SB 1420 (Kopp) - As Amended:  June 17, 1996


 SENATE VOTE:  37-0

 SUBJECT:  High Speed rail

 SUMMARY:  Establishes a High-Speed Rail Authority.  Specifically,  this bill:

1)  Establishes a nine-member High-Speed Rail Authority with five members  
    appointed by the Governor and two each by the Senate Rules Committee and  
    the Speaker of the Assembly.  The authority may appoint an executive  
    director who may appoint necessary staff.

2)  Requires the authority to develop and implement high speed rail service  
    that interconnects with existing intercity rail and bus services and  
    prepare and submit to the Governor and Legislature, for legislative or  
    voter approval, a plan for construction and operation of a high-speed  
    train network consistent with the work of the Intercity High-Speed Rail  
    Commission.

3)  Authorizes the authority to conduct engineering and other project  
    development studies, select an appropriate high-speed rail system,  
    establish criteria for the award of a franchise, accept funds from public  
    and private sources, select a franchisee, select proposed route and  
    terminal sites, enter into contracts for plan preparation, prepare a  
    financing plan, and submit a financial plan for placement on the ballot in  
    November 1998 or November 2000. 

4)  Authorizes the authority, upon receiving either legislative or voter  
    approval, to contract for design, construction and operation of a  
    high-speed rail network, and to take associated implementation steps  
    (issue debt, acquire right of way, set fares and schedules, etc.).

 FISCAL EFFECT:  Unknown.

 EXISTING LAW: 

1)  Establishes a High-Speed Rail Commission.

2)  Directs the commission to prepare a 20-year high-speed rail plan for  
    California.

 BACKGROUND:  SCR 6 (Kopp) of 1996 created the High-Speed Rail Commission and 
directed the commission to prepare a 20-year high-speed rail plan for  
California.  The commission is in the process of completing its work and its 

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final report is expected to be adopted by the end of the year.  This bill is  
intended to build on the efforts of the commission and allow the process to go  
forward to a point where either the Legislature or the voters will be asked to  
authorize a fully-developed plan for the construction and operation of  
high-speed rail in California.

 ARGUMENTS IN SUPPORT:  The state's freeway system is essentially "built out"  
and is incapable of fully meeting current traffic demands, let alone  
increasing demands anticipated as a result of projected population and  
economic growth.  Experience in Europe and Japan indicates that high-speed  
rail is both technologically feasible and capable of achieving significant  
mobility benefits.

 ARGUMENTS IN OPPOSITION:  Preliminary estimates reveal that a high-speed rail  
system is likely to cost in the neighborhood of $15 billion.  Financing  
options include a 1/4 cent sales tax increase or a gasoline sales tax increase  
equivalent to more than five cents per gallon.  With an investment of this  
magnitude, it could be argued that improvements to existing highway, rail, and  
transit systems would have a much higher payoff than would high-speed rail in  
terms of alleviating traffic congestion and associated transportation  
problems.

 REGISTERED SUPPORT / OPPOSITION:

 Support

Unknown

 Opposition

Unknown

 Analysis prepared by:  Howard Posner / atrans / 445-7278



















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