Bill Text: CA SB325 | 2011-2012 | Regular Session | Chaptered
Bill Title: Central California Railroad Authority.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2011-09-06 - Chaptered by Secretary of State. Chapter 234, Statutes of 2011. [SB325 Detail]
Download: California-2011-SB325-Chaptered.html
BILL NUMBER: SB 325 CHAPTERED
BILL TEXT
CHAPTER 234
FILED WITH SECRETARY OF STATE SEPTEMBER 6, 2011
APPROVED BY GOVERNOR SEPTEMBER 6, 2011
PASSED THE SENATE AUGUST 22, 2011
PASSED THE ASSEMBLY AUGUST 18, 2011
AMENDED IN ASSEMBLY JUNE 9, 2011
AMENDED IN SENATE MAY 11, 2011
AMENDED IN SENATE APRIL 26, 2011
AMENDED IN SENATE APRIL 4, 2011
AMENDED IN SENATE MARCH 21, 2011
INTRODUCED BY Senator Rubio
FEBRUARY 14, 2011
An act to add Title 12.5 (commencing with Section 93300) to the
Government Code, relating to railroads.
LEGISLATIVE COUNSEL'S DIGEST
SB 325, Rubio. Central California Railroad Authority.
Existing law authorizes the creation of railroad authorities in
various parts of the state.
This bill would enact the Central California Railroad Authority
Act to create the Central California Railroad Authority as an
alternative for ensuring short-line railroad service in the Counties
of Kern, Kings, Tulare, Fresno, and Merced. The bill would require
the authority to be governed by a board of directors who would be
appointed by the council of governments or county association of
governments within the Counties of Kern, Kings, Tulare, Fresno, and
Merced, thereby imposing a state-mandated local program. The bill
would authorize the Counties of Madera, Stanislaus, and San Joaquin
to elect to join the authority. The bill would set forth the powers
and duties of the authority, as specified. The bill would require the
authority to conduct its first meeting not later than 120 days after
abandonment or discontinuance of service on, or the bankruptcy or
sale of, the short-line railroads in the member counties if the
members have formed a joint exercise of powers agreement to implement
and manage the authority. The bill would authorize the authority to
acquire and operate railroads or select a franchisee to operate a
rail transportation system, to prepare a plan for acquisition and
operation of specified railroad lines, and establish criteria for the
award of a franchise for the acquisition, financing, and operation
of the railroad system. The bill would further authorize the
authority to issue revenue bonds pursuant to the Revenue Bond Law of
1941. The bill would provide that the state is not liable for any
contract, debt, or obligation of the authority. The bill would
prohibit the authority from being a claimant for Transportation
Development Act funds or from receiving funds from the Public
Transportation Account. The bill would also state the intent of the
Legislature in enacting the authority.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Title 12.5 (commencing with Section 93300) is added to
the Government Code, to read:
TITLE 12.5. CENTRAL CALIFORNIA RAILROAD AUTHORITY
CHAPTER 1. GENERAL PROVISIONS
93300. This title shall be known, and may be cited, as the
Central California Railroad Authority Act.
93301. The Legislature finds and declares all of the following:
(a) It is the intent of the Legislature, in enacting this title,
to provide an alternative for ensuring railroad service if the
Surface Transportation Board authorizes the abandonment or
discontinuance of service on, or in the event of bankruptcy or sale
of, short-line railroads in the Counties of Kern, Kings, Tulare,
Fresno, and Merced.
(b) It is the intent of the Legislature to provide a means to
consider and, if justified, to pursue economic development
opportunities and projects related to rail service along railroad
lines in participating counties.
(c) It is the intent of the Legislature that enactment of this
title not provide a justification for the Surface Transportation
Board to grant a petition for abandonment or discontinuance of
service on the affected short lines.
(d) It is the intent of the Legislature that the authority be
expanded to include the Counties of Madera, Stanislaus, and San
Joaquin if those counties request to be included at a future date.
93302. The Legislature finds and declares that maintaining a
railroad service through central California will provide economic
benefits and do all of the following:
(a) Ensure continuing short-line freight railroad service between
Kern County and Merced County.
(b) Enable opportunities for the improvement of short-line rail
service, including passenger service connecting to high-speed rail
stations, extending from Kern County to the Port of Oakland.
(c) Reduce reliance on motor vehicles and encourage the use of
rail service as an alternative transportation means.
(d) Reduce traffic congestion on and deterioration of state and
federal highway systems and local roads in central California.
(e) Provide convenient and attractive short-line transportation
service for shippers and receivers through central California.
93303. As used in this title, "authority" means the Central
California Railroad Authority.
93304. The authority is a local agency for purposes of the
Disaster Assistance Act (Chapter 7.5 (commencing with Section 8680)
of Division 1 of Title 2).
CHAPTER 2. CREATION OF THE CENTRAL CALIFORNIA RAILROAD
AUTHORITY
93307. (a) The Central California Railroad Authority is hereby
created, having a service area comprised of the Counties of Kern,
Kings, Tulare, Fresno, and Merced, to provide rail freight service
within those counties.
(b) The Counties of Madera, Stanislaus, and San Joaquin may elect
to join the authority and, if that election is made, the service area
of the authority is expanded to include those counties.
93308. (a) The authority shall be governed by a board of
directors, composed as follows:
(1) One member appointed by the Kern Council of Governments.
(2) One member appointed by the Kings County Association of
Governments.
(3) One member appointed by the Tulare County Association of
Governments.
(4) One member appointed by the Fresno Council of Governments.
(5) One member appointed by the Merced County Association of
Governments.
(b) If the Counties of Madera, Stanislaus, or San Joaquin elect to
join the authority, the regional transportation planning agencies of
the counties so joining shall each appoint one person to the board
of directors.
(c) A board member appointed pursuant to subdivision (a) or (b)
shall be both an elected official of a city or county that belongs to
the regional transportation planning agency or council of
governments appointing him or her and a board member of that planning
agency or council of governments.
(d) All members of the board of directors shall serve for terms of
two years and until their successors have qualified.
(e) Notwithstanding any other provision of law that precludes the
simultaneous holding of incompatible offices, a local government
officer may be appointed and may serve as a member of the authority's
board of directors if the person also meets the other applicable
qualifications of this title.
(f) (1) The board of directors may provide, by motion, ordinance,
or resolution, that each of its members may receive compensation in
an amount not to exceed one hundred dollars ($100) for each day of
service. A member of the board of directors shall not receive
compensation for more than six days of service in a month.
(2) The board of directors, by ordinance adopted pursuant to the
procedures and standards specified in Chapter 2 (commencing with
Section 20200) of Division 10 of the Water Code, may increase the
amount of compensation that may be received by members of the board
of directors.
(3) The board of directors may provide, by motion, ordinance, or
resolution, that its members may receive their actual and necessary
traveling and incidental expenses incurred while on official
business. Reimbursement for these expenses is subject to Sections
53232.2 and 53232.3.
(4) A member of the board of directors may waive any or all of the
payments permitted by this section.
(5) For the purposes of this subdivision, a "day of service" means
any of the following:
(A) A meeting conducted pursuant to the Ralph M. Brown Act
(Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of
Title 5).
(B) Representation of the authority at a public event, provided
that the board of directors has previously approved the member's
representation at a board of directors' meeting and that the member
delivers a written report to the board of directors regarding the
member's representation at the next board of directors' meeting
following the public event.
(C) Representation of the authority at a public meeting or a
public hearing conducted by another public agency, provided that the
board of directors has previously approved the member's
representation at a board of directors' meeting and that the member
delivers a written report to the board of directors regarding the
member's representation at the next board of directors' meeting
following the public meeting or public hearing.
(D) Representation of the authority at a meeting of a public
benefit nonprofit corporation on whose board the authority has
membership, provided that the board of directors has previously
approved the member's representation at a board of directors' meeting
and the member delivers a written report to the board of directors
regarding the member's representation at the next board of directors'
meeting following the corporation's meeting.
(E) Participation in a training program on a topic that is
directly related to the authority, provided that the board of
directors has previously approved the member's participation at a
board of directors' meeting, and that the member delivers a written
report to the board of directors regarding the member's participation
at the next board of directors' meeting following the training
program.
(g) A majority of the members of the authority constitutes a
quorum for the transaction of business, and all official acts of the
authority require the affirmative vote of a majority of the members
of the authority.
(h) The acts of the authority shall be expressed by motion,
resolution, or ordinance.
(i) All meetings of the authority shall be conducted pursuant to
the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of
Part 1 of Division 2 of Title 5).
93309. (a) The authority shall do all of the following:
(1) Adopt an annual budget.
(2) Adopt an administrative code, by ordinance, which prescribes
the powers and duties of the authority officers, the method of
appointment of the authority employees, and methods, procedures, and
systems of operation and management of the authority.
(3) Cause a postaudit of the financial transactions and records of
the authority to be made at least annually by a certified public
accountant.
(4) Do any and all things necessary to carry out the purposes of
this title.
(b) Notice of the time and place of a public hearing on the
adoption of the annual budget shall be published pursuant to Section
6061 not later than 15 days prior to the hearing.
(c) The proposed annual budget shall be available for public
inspection at least 15 days prior to the hearing.
(d) The authority may sue and be sued, except as provided by law,
in all actions and proceedings, in all courts and tribunals of
competent jurisdiction.
(e) All claims for money or damages against the authority are
governed by Division 3.6 (commencing with Section 810) of Title 1,
except as provided therein, or by other statute or regulation
expressly applicable thereto.
93310. The authority shall conduct its first meeting no later
than 120 days after abandonment or discontinuance of service on any
railroad line specified in Section 93301, provided the member
regional transportation agencies or councils of governments have
formed a joint exercise of powers agreement to implement and manage
the authority.
93311. The regional transportation planning agencies or councils
of governments for the Counties of Fresno, Merced, Kern, Kings, and
Tulare, and any regional transportation planning agencies of other
counties that may elect to join the authority, may operate freight
rail service within the area of jurisdiction of the authority.
CHAPTER 3. POWERS AND DUTIES OF THE AUTHORITY
93312. The authority has all of the following powers:
(a) To acquire, own, operate, and lease real and personal property
reasonably related to the operation and maintenance of railroads.
(b) To issue revenue bonds pursuant to Section 93316 for any
purpose of the authority.
(c) To acquire property by purchase, lease, gift, or through
exercise of the power of eminent domain, within its area of
jurisdiction.
(d) To operate railroads, including those outside its boundaries
in order to connect its lines with the lines of another railroad
corporation, provided the service begins within the authority's area
of jurisdiction.
(e) To accept grants or loans from federal agencies.
(f) To select a franchisee, which may be a public or private
entity, to acquire or operate a rail transportation system within the
area of the authority's jurisdiction.
93313. The authority may acquire, own, lease, and operate
railroad lines and equipment, including, but not limited to, real and
personal property, tracks, rights-of-way, equipment, and facilities.
93314. The authority may prepare a plan for the acquisition and
operation of any railroad line specified in Section 93301, at no
expense to the state, to achieve the purposes set forth in Section
93302.
93315. After preparation of a plan pursuant to Section 93314, the
authority may do any of the following:
(a) Conduct engineering and other studies related to the
acquisition of any railroad line.
(b) Evaluate alternative plans from the private sector to acquire,
finance, and operate a railroad system in a manner which achieves
the purposes specified in Section 93302.
(c) Establish criteria for the award of a franchise.
(d) Select a franchisee to acquire, finance, and operate the
railroad system.
(e) Accept grants, gifts, fees, or allocations from other
entities, including private and public sources.
(f) Employ an executive officer, other staff, and consultants
deemed appropriate for support of the activities of the authority.
93316. (a) The authority may issue bonds, payable from revenues
of any facility or enterprise to be acquired or constructed by the
authority, in the manner provided by the Revenue Bond Law of 1941
(Chapter 6 (commencing with Section 54300) of Part 1 of Division 2 of
Title 5).
However, an election is not required in the case of revenue bonds
authorized by the board of directors for railroad facilities, and any
addition, extension, and improvement thereto, and all other
facilities authorized to be acquired, constructed, or completed by
the authority under this title.
(b) The authority is a local agency within the meaning of the
Revenue Bond Law of 1941. The term "enterprise," as used in that law,
includes railroad facilities, and any addition, extension, and
improvement thereto, and all other facilities authorized to be
acquired, constructed, or completed by the authority under this
title.
93317. The state is not liable for any contracts, debts, or other
obligations of the authority.
93318. Agencies forming the joint powers agreement implementing
the authority shall be liable for all debts and obligations of the
authority.
93319. The authority may not utilize or be a claimant for
Transportation Development Act funds and shall not be entitled to
receive funds from the Public Transportation Account.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district are the result of a program for which legislative authority
was requested by that local agency or school district, within the
meaning of Section 17556 of the Government Code and Section 6 of
Article XIII B of the California Constitution.
