Bill Text: CA AB1866 | 2015-2016 | Regular Session | Introduced

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Bill Title: High-speed rail bond proceeds: redirection: water projects.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Failed) 2016-11-30 - From committee without further action. [AB1866 Detail]

Download: California-2015-AB1866-Introduced.html

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BILL NUMBER: AB 1866	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Wilk
   (Principal coauthors: Assembly Members Bigelow and Gallagher)

                        FEBRUARY 10, 2016

   An act to add Section 2704.096 to the Streets and Highways Code,
relating to bond proceeds.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1866, as introduced, Wilk. High-speed rail bond proceeds:
redirection: water projects.
   Existing law, the Safe, Reliable High-Speed Passenger Train Bond
Act for the 21st Century, approved by the voters as Proposition 1A at
the November 4, 2008, general election, provides for the issuance of
general obligation bonds in the amount of $9 billion in general
obligation bonds for high-speed rail purposes and $950 million for
other related rail purposes. Article XVI of the California
Constitution requires measures authorizing general obligation bonds
to specify the single object or work to be funded by the bonds and
further requires a bond act to be approved by a 2/3 vote of each
house of the Legislature and a majority of the voters.
   This bill would provide that no further bonds shall be sold for
high-speed rail purposes pursuant to the Safe, Reliable High-Speed
Passenger Train Bond Act for the 21st Century, except as specifically
provided with respect to an existing appropriation for high-speed
rail purposes for early improvement projects in the Phase 1 blended
system. The bill, subject to the above exception, would require
redirection of the unspent proceeds received from outstanding bonds
issued and sold for other high-speed rail purposes prior to the
effective date of these provisions, upon appropriation, for use in
retiring the debt incurred from the issuance and sale of those
outstanding bonds. The bill, subject to the above exception, would
also require the net proceeds of other bonds subsequently issued and
sold under the high-speed rail portion of the bond act to be made
available, upon appropriation, to fund capital expenditures for water
projects, including the construction of desalination facilities,
wastewater treatment and recycling facilities, reservoirs, water
conveyance infrastructure, and aquifer recharge. The bill would make
no changes to the authorization under the bond act for the issuance
of $950 million in bonds for rail purposes other than high-speed
rail. These provisions would become effective only upon approval by
the voters at the next statewide election.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 2704.096 is added to the Streets and Highways
Code, to read:
   2704.096.  (a) (1) Notwithstanding any other provision of this
chapter, and except as provided in paragraph (2), no further bonds
shall be issued and sold for purposes of Section 2704.06 on and after
the effective date of this section.
   (2) This section shall not apply to bonds issued and sold for
purposes of Section 2704.06 with respect to the appropriation in Item
2665-104-6043 of Section 2.00 of the Budget Act of 2012, as added by
Section 3 of Chapter 152 of the Statutes of 2012.
   (b) Notwithstanding any other provision of this chapter, and
except as otherwise provided in paragraph (2) of subdivision (a), the
unspent proceeds received from outstanding bonds issued and sold
pursuant to Section 2704.06 prior to the effective date of this
section shall, upon appropriation by the Legislature, be redirected
from high-speed rail purposes for use in retiring the debt incurred
from the issuance and sale of those outstanding bonds.
   (c) Notwithstanding any other provision of this chapter, the
remaining unissued bonds, as of the effective date of this section,
that were previously authorized pursuant to Section 2704.06, except
as otherwise provided in paragraph (2) of subdivision (a), are hereby
authorized to be issued and sold, with the net proceeds, upon
appropriation by the Legislature, to be made available to fund
construction of water capital projects, including the construction of
desalination facilities, wastewater treatment and recycling
facilities, reservoirs, water conveyance infrastructure, and aquifer
recharge.
  SEC. 2.   Section 1 of this act would modify the single object or
work of a general obligation bond act previously submitted to the
voters by the Legislature pursuant to Section 1 of Article XVI of the
California Constitution, and subsequently approved by the voters as
Proposition 1A at the November 4, 2008, statewide general election.
Accordingly, Section 1 of this act shall become effective only upon
approval by the voters. The Secretary of State shall submit Section 1
of this act to the voters on the ballot of the next statewide
election.