Bill Text: CA SB1225 | 2011-2012 | Regular Session | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Intercity rail agreements.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Passed) 2012-09-29 - Chaptered by Secretary of State. Chapter 802, Statutes of 2012. [SB1225 Detail]

Download: California-2011-SB1225-Enrolled.html

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BILL NUMBER: SB 1225	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 31, 2012
	PASSED THE ASSEMBLY  AUGUST 31, 2012
	AMENDED IN ASSEMBLY  AUGUST 30, 2012
	AMENDED IN ASSEMBLY  AUGUST 24, 2012
	AMENDED IN ASSEMBLY  AUGUST 20, 2012
	AMENDED IN ASSEMBLY  AUGUST 6, 2012
	AMENDED IN ASSEMBLY  JUNE 27, 2012
	AMENDED IN SENATE  MAY 29, 2012
	AMENDED IN SENATE  MAY 1, 2012
	AMENDED IN SENATE  APRIL 9, 2012

INTRODUCED BY   Senator Padilla
   (Coauthor: Senator Correa)
   (Coauthors: Assembly Members Davis, Galgiani, and Williams)

                        FEBRUARY 23, 2012

   An act to amend Sections 14031.8, 14070.2, 14070.4, and 14070.6
of, to add Section 14070.7 to, and to repeal and add Article 5.2
(commencing with Section 14072) of Chapter 1 of Part 5 of Division 3
of Title 2 of, the Government Code, relating to transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1225, Padilla. Intercity rail agreements.
   Existing law authorizes the Department of Transportation to
contract with Amtrak for intercity rail passenger services and
provides funding for these services from the Public Transportation
Account. Existing law, until December 31, 1996, authorized the
department, subject to approval of the Secretary of Business,
Transportation and Housing, to enter into an interagency transfer
agreement under which a joint powers board assumes responsibility for
administering the state-funded intercity rail service in a
particular corridor. Existing law, with respect to a transferred
corridor, requires the board to demonstrate the ability to meet
performance standards established by the secretary.
   This bill would authorize the department, with approval of the
secretary, to enter into interagency transfer agreements for
additional intercity rail corridors, to be entered into between June
30, 2014, and June 30, 2015. The bill would require the agreements to
cover the initial 3-year period after the transfer, and would
authorize subsequent extensions by mutual agreement. If agreements
are not entered into by the expiration of that period, the bill would
require the secretary to report to the Governor and the Legislature
by June 30, 2016, as specified.
   This bill would specifically authorize an additional interagency
transfer agreement to be entered into with respect to the LOSSAN
Corridor, defined to mean the intercity passenger rail corridor
between San Diego, Los Angeles, and San Luis Obispo, if the LOSSAN
Agency, an existing joint powers agency, is reconstituted through an
amended joint powers agreement approved by the governing boards of
its members to enable that agency to enter into an interagency
transfer agreement with the secretary relative to the LOSSAN
Corridor.
   Existing law requires the level of service to be funded by the
state pursuant to a transfer agreement to not be less than the
current number of intercity round trips operated in a corridor and
serving the same endpoints.
   This bill would require the service funded by the state to remain
the same during the first 3 years following the effective date of a
transfer agreement, and would require the entity assuming
responsibility for a corridor to provide that level of service. The
bill would prohibit termination of feeder bus services except for
specified reasons.
   Existing law provides for the allocation of state funds by the
secretary to a joint powers board under an interagency transfer
agreement based on the annual business plan for the intercity rail
corridor and subsequent appropriation of state funds. Existing law
states that the interagency transfer agreement may provide that any
additional funds required to operate the intercity rail service
during a fiscal year shall be provided by a joint powers board from
jurisdictions that receive service.
   This bill, if local resources are made available for operating the
intercity rail service, would require a vote of the local agency
providing the resources, and would require the concurrence of the
joint powers board in that regard.
   This bill would authorize the secretary to adopt new performance
standards for intercity rail services.
   Existing law authorizes the department and any entity that assumes
administrative responsibility for passenger rail services through an
interagency transfer agreement to contract with specified entities
for the use of tracks and other facilities and for the provision of
passenger rail services.
   This bill would require a contractor under an agreement described
above to agree that its labor relations shall be governed by a
specified federal act relating to labor relations on railroads and
would add similar provisions applicable to the LOSSAN Corridor, as
specified.
   This bill would repeal now-obsolete provisions authorizing the
Southern California Regional Rail Authority to be a party to an
interagency transfer agreement for intercity rail services in
specified counties.


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

  SECTION 1.  This act shall be known and may be cited as the
Intercity Passenger Rail Act of 2012.
  SEC. 2.  (a) The Legislature finds and declares all of the
following:
   (1) An intercity passenger rail system, linking major urban
centers and complemented by feeder bus services that provide access
to outlying areas and destinations, is an important element of the
state's transportation system, and shall remain a state-funded
program.
   (2) The state has a continuing interest in the provision of
cost-effective intercity passenger rail services and has a
responsibility to coordinate intercity passenger rail services
statewide.
   (3) Since 1976, the state has invested over one billion eight
hundred million dollars ($1,800,000,000) in capital improvements and
operating support for intercity passenger rail service and must
ensure the protection of that investment.
   (4) Intercity rail service and ridership increases will result in
more jobs, improve air quality, and help promote sustainable
development.
   (b) The Legislature, through the enactment of this act, intends
all of the following:
   (1) The Secretary of Business, Transportation and Housing shall be
responsible for the overall planning, coordination, and budgeting of
the intercity passenger rail service.
   (2) If the secretary determines that transferring responsibility
for intercity passenger rail service in a particular corridor or
corridors to a statutorily created joint powers agency would result
in administrative or operating cost reductions, the secretary may
authorize the Department of Transportation to enter into an
interagency transfer agreement to effect a transfer of those
administrative functions, consistent with this act.
   (3) Any intercity passenger rail corridor for which administrative
responsibility has been transferred to a joint powers board through
an interagency transfer agreement shall remain a component of the
statewide system of intercity passenger rail corridors.
   (4) The public interest requires expansion of the state intercity
passenger rail program in order to keep pace with the needs of an
expanding population.
   (5) For not less than a three-year period following the effective
date of the interagency transfer agreement, the level of state
funding for intercity rail service in each corridor shall be
maintained at a level equal to at least the level of service funded
by the state in the corridor as of the effective date of the
interagency transfer agreement, thus providing fiscal stability that
will allow appropriate planning and operation of these services.
   (6) It is in the public interest to ensure fiscal accountability
that the intercity rail service operating in the LOSSAN Corridor
maintain a ratio of fare revenue to operating cost of no less than 55
percent.
  SEC. 3.  Section 14031.8 of the Government Code is amended to read:

   14031.8.  (a) The Secretary of Business, Transportation and
Housing shall establish, through an annual budget process, the level
of state funding available for the operation of intercity passenger
rail service in each corridor.
   (b) Where applicable, operating funds shall be allocated by the
secretary to the joint powers board in accordance with an interagency
transfer agreement that includes mutually agreed-upon rail services.
Funds for the administration and marketing of services, as
appropriate, shall also be transferred by the secretary to the joint
powers board, subject to the terms of the interagency agreement.
   (c) The joint powers board or local or regional entities may
augment state-provided resources to expand intercity passenger rail
services, or to address funding shortfalls in achieving agreed-upon
performance standards. The joint powers board or local or regional
agencies may, but shall not be required to, identify and secure new
supplemental sources of funding for the purpose of expanding or
maintaining intercity rail passenger service levels, which may
include state and federal intercity rail resources. Local resources
may be available to offset any redirection, elimination, reduction,
or reclassification by the state of state resources for operating
intercity passenger rail services identified in subdivision (b) only
if the local resources are dedicated by a vote of the local agency
providing funds, with the concurrence of the joint powers board.
   (d) The department may provide any support services as may be
mutually agreed upon by the joint powers board and the department.
   (e) Operating costs shall be controlled by dealing with, at a
minimum, the Amtrak cost allocation formula and the ability to
contract out to Amtrak or other rail operators as a part of federal
legislation dealing with Amtrak reauthorization.
   (f) (1) Not later than June 30, 2014, the secretary shall
establish a set of uniform performance standards for all corridors
and operators to control cost and improve efficiency.
   (2) To the extent necessary, as determined by the secretary,
performance standards may be modified not later than July 30, 2015,
or the effective date of the interagency transfer agreement,
whichever comes first.
   (3) Feeder bus services that provide connections for intercity
rail passengers shall not be terminated unless the bus services fail
to meet the cost-effectiveness standard described in paragraph (3) of
subdivision (a) of Section 14035.2.
  SEC. 4.  Section 14070.2 of the Government Code is amended to read:

   14070.2.  (a) If authorized by the secretary, the department may,
through an interagency transfer agreement, transfer to a joint powers
board, and the board may assume, all responsibility for
administering intercity passenger rail service in the corridor,
including associated feeder bus service. Upon the date specified in
the agreement, the board shall succeed to the department's powers and
duties relative to that service, except that the department shall
retain responsibility for developing budget requests for the service,
consistent with the annual business plan as approved by the
secretary for the service, through the state budget process, which
shall be developed in consultation with the board, and for
coordinating service in the corridor with other intercity passenger
rail services in the state.
   (b) An interagency transfer agreement may be executed on or after
June 30, 2014, but not later than June 30, 2015, subject to
negotiation and approval by the state and the board. The interagency
transfer agreement between the department and the board shall cover
the initial three-year period after the transfer, but may be extended
thereafter by mutual agreement. If an interagency agreement is not
entered into on or before June 30, 2015, the secretary shall provide
a report to the Governor and the Legislature on or before June 30,
2016, explaining why an acceptable agreement has not been developed,
with specific recommendations for developing an acceptable
interagency agreement.
   (c) The secretary shall require the board to demonstrate the
ability to meet the performance standards established by the
secretary pursuant to subdivision (f) of Section 14031.8.
  SEC. 5.  Section 14070.4 of the Government Code is amended to read:

   14070.4.  (a) An interagency transfer agreement between the
department and a joint powers board, when approved by the secretary,
shall do all of the following:
   (1) Specify the date and conditions for the transfer of
responsibilities and identify the annual level of funding for the
initial three years following the transfer and ensure that the level
of funding is consistent with and sufficient for the planned service
improvements within the corridor.
   (2) Identify, for the initial year and subsequent years, the funds
to be transferred to the board including state operating subsidies
made available for intercity rail services in the corridor, and funds
currently used by the department for administration and marketing of
the corridor, with the amounts adjusted annually for inflation and
in accordance with the business plan.
   (3) Specify the level of service to be provided, the respective
responsibilities of the board and the department, the methods that
the department will use to assure the coordination of services with
other rail passenger and feeder bus services in the state, and the
methods that the department will use for the annual review of the
business plan and annual proposals on funding and appropriations.
   (4) Describe the terms of use by the board of car and locomotive
train sets and other equipment and property owned by the department
and required for the intercity service in the corridor including, but
not limited to, the number of units to be provided, liability
coverage, maintenance and warranty responsibilities, and
indemnification issues.
   (5) Describe auditing responsibilities and process requirements,
reimbursement and billing procedures, the responsibility for funding
shortfalls, if any, during the course of each fiscal year, an
operating contract oversight review process, performance standards
and reporting procedures, the level of rail infrastructure
maintenance, and other relevant monitoring procedures.
   (b) Use of the annual state funding allocation, as set forth in
the interagency transfer agreement, shall be described in an annual
business plan submitted by the board to the secretary for review and
recommendation by April 1 of each year. The business plan, when
approved by the secretary, shall be deemed accepted by the state. The
budget proposal developed by the department for the subsequent year
shall be based upon the business plan approved by the secretary. The
business plan shall be consistent with the interagency agreement and
shall include a report on the recent as well as historical
performance of the corridor service, an overall operating plan
including proposed service enhancements to increase ridership and
provide for increased traveler demands in the corridor for the
upcoming year, short-term and long-term capital improvement programs,
funding requirements for the upcoming fiscal year, and an action
plan with specific performance goals and objectives. The business
plan shall document service improvements to provide the planned level
of service, inclusion of operating plans to serve peak period work
trips, and consideration of other service expansions and
enhancements. The initial business plan shall be consistent with the
immediately previous State Rail Plan developed by the department
pursuant to Section 14036 and the January 2014 business plan
developed by the High-Speed Rail Authority pursuant to Section 185033
of the Public Utilities Code. Subsequent business plans shall be
consistent with the immediately previous plans developed by the
department and the authority. The business plan shall clearly
delineate how funding and accounting for state-sponsored intercity
rail passenger services shall be separate from locally sponsored
services in the corridor. Proposals to expand or modify passenger
services shall be accompanied by the identification of all associated
costs and ridership projections. The business plan shall establish,
among other things: fares, operating strategies, capital improvements
needed, and marketing and operational strategies designed to meet
performance standards established in the interagency transfer
agreement.
   (c) Based on the annual business plan and the subsequent
appropriation by the Legislature, the secretary shall allocate state
funds on an annual basis to the board. As provided in the interagency
agreement, any additional funds that are needed to operate the
passenger rail service during the fiscal year shall be provided by
the board from jurisdictions that receive service. In addition, the
board may use any cost savings or farebox revenues to provide service
improvements related to intercity service. In any event, the board
shall report the fiscal results of the previous year's operations as
part of the annual business plan.
   (d) The level of service funded by the state during the first
three years following the effective date of the interagency transfer
agreement shall in no case be less than the number of intercity round
trips operated in a corridor and serving the end points served by
the intercity rail corridor as of the effective date of the
interagency transfer agreement. Subject to Section 14035.2, the level
of service funded by the state shall also include feeder bus service
with substantially the same number of route miles as the current
feeder system, to be operated in conjunction with the trains. For
that same three-year period, the board shall continue to provide at
least the same level of intercity rail and feeder bus services as
were in operation on the effective date of the interagency transfer
agreement, except that the interagency agreement shall not prohibit
the board from reducing the number of feeder bus route miles if the
board determines that a feeder bus route is not cost effective as
provided in Section 14035.2.
   (e) Nothing in this article shall be construed to preclude
expansion of state-approved intercity rail service.
   (f) Local resources may be available to offset any redirection,
elimination, reduction, or reclassification by the state of state
resources for operating intercity rail services identified in
subdivision (b) only if the local resources are dedicated by a vote
of the local agency providing the funds, with the concurrence of the
board.
  SEC. 6.  Section 14070.6 of the Government Code is amended to read:

   14070.6.  The department and any entity that assumes
administrative responsibility for intercity passenger rail services
through an interagency transfer agreement, may, through a competitive
solicitation process, contract with the National Railroad Passenger
Corporation (Amtrak) or with organizations not precluded by state or
federal law to provide intercity passenger rail services, and may
contract with rail corporations and other rail operators for the use
of tracks and other facilities and for the provision of intercity
passenger services on terms and conditions as the parties may agree.
The department is deemed to be a third-party beneficiary of the
contract, and the contract shall not contain any provision or
condition that would negatively impact on or conflict with any other
contracts the department has regarding intercity passenger rail
services. Any entity that succeeds the department as sponsor of
state-supported intercity passenger rail services through an
interagency transfer agreement, is deemed an agency of the state for
all purposes related to intercity passenger rail services, including
Section 5311 of Title 49 of the United States Code. If the intercity
passenger rail service is operated by a contractor, the contractor
shall, as a condition of entering into an operating agreement with
the entity, agree that its labor relations shall be governed by the
federal Railway Labor Act (45 U.S.C. Sec. 151 et seq.).
  SEC. 7.  Section 14070.7 is added to the Government Code, to read:
   14070.7.  The department and the LOSSAN Rail Corridor Agency, to
the extent the agency assumes administrative responsibility for
intercity passenger rail services on the LOSSAN Corridor through an
interagency transfer agreement, may, through a competitive
solicitation process, contract with Amtrak or with organizations
authorized by state or federal law to provide intercity passenger
rail services, and may contract with rail corporations and other rail
operators for the use of the tracks and other facilities and for the
provision of intercity passenger rail services on terms and
conditions as the parties may agree. The department is deemed to be a
third-party beneficiary of the contract, and the contract shall not
contain any provision or condition that would negatively impact on or
conflict with any other contracts the department has regarding
intercity passenger rail services. The LOSSAN Rail Corridor Agency,
if it succeeds the department as sponsor of state-supported intercity
passenger rail services on the LOSSAN Corridor through an
interagency transfer agreement, is deemed to be an agency of the
state for all purposes related to intercity passenger rail services,
including Section 5311 of Title 49 of the United States Code. If the
LOSSAN Rail Corridor Agency or the entity providing administrative
services enters into a contract for the operation of those services,
the contractor shall, as a condition of entering into an operating
agreement with the entity providing administrative services or the
LOSSAN Rail Corridor Agency, agree that its labor relations shall be
governed by the federal Railway Labor Act (45 U.S.C. Sec. 151 and
following).
   Section 14070.6 shall not apply to the LOSSAN Corridor.
  SEC. 8.  Article 5.2 (commencing with Section 14072) of Chapter 1
of Part 5 of Division 3 of Title 2 of the Government Code is
repealed.
  SEC. 9.  Article 5.2 (commencing with Section 14072) is added to
Chapter 1 of Part 5 of Division 3 of Title 2 of the Government Code,
to read:

      Article 5.2.  LOSSAN Corridor


   14072.  (a) The LOSSAN Rail Corridor Agency, also known as the
LOSSAN Agency, is an existing joint powers authority established to
provide an organization capable of implementing the recommendations
contained in the State Rail Corridor Study Group's June 1987 report
entitled "Los Angeles-San Diego State Rail Corridor Study" and
undertaking related efforts to improve intercity services and
facilities in the corridor and to coordinate subcorridor commuter
rail services with intercity services. The LOSSAN Agency is composed
of voting members, as specified in the joint powers agreement.
   (b) "LOSSAN Corridor" or "LOSSAN Rail Corridor" means the San
Diego-Los Angeles-San Luis Obispo intercity passenger rail corridor.
   14072.2.  This article shall be applicable only if the members of
the LOSSAN Agency enter into an amended joint powers agreement to
expand the authority of the agency to permit the administration of
state-funded intercity passenger rail services on the LOSSAN
Corridor, and the LOSSAN Agency thereafter elects to become a party
to an interagency transfer agreement pursuant to Article 5
(commencing with Section 14070). The amended joint powers agreement
shall establish the terms and conditions for the joint powers agency
and is subject to the approval of the governing board of each member
agency of the LOSSAN Agency. Only the LOSSAN Agency operating under
the amended joint powers agreement, and not the LOSSAN Agency
existing on January 1, 2013, may exercise jurisdiction over intercity
rail services on the LOSSAN Corridor under an interagency transfer
agreement.