BILL ANALYSIS                                                                                                                                                                                                    




SENATE RULES COMMITTEE                           SB 1420
Office of Senate Floor Analyses
1020 N Street, Suite 524
(916) 445-6614         Fax: (916) 327-4478
                                                              
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                    UNFINISHED BUSINESS
                                                              
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Bill No:  SB 1420
Author:   Kopp (I) & Costa (D)
Amended:  8/27/96
Vote:     21
                                                              
                                                             
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 SENATE TRANSPORTATION COMMITTEE:   9-0, 3/19/96
AYES:  Ayala, Boatwright, Hayden, Johnston, Monteith,  
  Polanco, Russell, Kelley, Kopp

 SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

 SENATE FLOOR:   37-0, 5/24/96
AYES:  Alquist, Ayala, Beverly, Boatwright, Calderon,  
  Costa, Dills, Greene, Hayden, Haynes, Hughes,  
  Johannessen, Johnson, Johnston, Kelley, Killea, Kopp,  
  Leonard, Leslie, Lewis, Lockyer, Maddy, Marks, Mello,  
  Monteith, Mountjoy, O'Connell, Peace, Petris, Polanco,  
  Rogers, Rosenthal, Sher, Solis, Thompson, Watson, Wright
NOT VOTING:  Craven, Hurtt, Russell

 ASSEMBLY FLOOR:  56-13, 8/29/96 - See last page for vote
                                                              
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SUBJECT:    High-speed Rail Act

 SOURCE:     Author
                                                              
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DIGEST:    This bill would create the High-Speed Rail  
Authority, consisting of nine members.
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As this bill left the Senate, it was the vehicle for these  
provisions.  All provisions of the bill were placed into  
this bill in the Assembly.
 ANALYSIS:    SCR 6 (Kopp) of 1993 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 final report is expected to be adopted by the end of  
1996.

According to the author's office, this bill was introduced  
as a vehicle to implement the recommendations of the  
commission when those recommendations are adopted.  The  
author has made the commitment to bring this bill back to  
the Senate Transportation Committee when specifics are  
amended into the bill.

This bill 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.  The Authority  
   would terminate on December 31, 2000.

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  
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   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 (e.g., issue  
   debt, acquire right of way, set fares and schedules).

 FISCAL EFFECT:   Appropriation:  No   Fiscal Com.:  Yes    
Local:  No


 SUPPORT:  (Verified 8/29/96)
---

 OPPOSITION:  (Verified 8/29/96)

Business, Transportation and Housing Agency

 ARGUMENTS IN SUPPORT:    According to the author's office,  
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  
one-fourth 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.  The Business,  
Transportation and Housing Agency argues that all authority  
members should be appointed by the Governor and that any  
financial plan which includes bonding be approved by the  
Legislature prior to being presented to the voters.

 ASSEMBLY FLOOR:
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AYES:  Ackerman, Aguiar, Alby, Alpert, Baca, Baldwin,  
  Bates, Battin, Boland, Bordonaro, Bowen, Bowler, Brewer,  
  Brown, Brulte, Burton, Bustamante, Cannella, Conroy,  
  Cunneen, Davis, Ducheny, Escutia, Figueroa, Firestone,  
  Friedman, Gallegos, Goldsmith, Hannigan, Harvey, Hauser,  
  Hoge, House, Isenberg, Katz, Knight, Knox, Kuykendall,  
  Machado, Martinez, Mazzoni, McPherson, Morrow, K. Murray,  
  W. Murray, Napolitano, Poochigian, Rainey, Rogan, Speier,  
  Sweeney, Takasugi, Tucker, Vasconcellos, Villaraigosa,  
  Weggeland
NOES:  Baugh, Frusetta, Hawkins, Kaloogian, Knowles,  
  Margett, Migden, Miller, Morrissey, Olberg, Thompson,  
  Woods, Pringle
NOT VOTING:  Archie-Hudson, Caldera, Campbell, Cortese,  
  Granlund, Kuehl, Lee, Richter, Setencich

RJG:ctl  8/30/96  Senate Floor Analyses
            SUPPORT/OPPOSITION:  NONE RECEIVED
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