Bill Text: CA SB325 | 2011-2012 | Regular Session | Amended

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

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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-Amended.html

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BILL NUMBER: SB 325	AMENDED
	BILL TEXT

	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, as amended, 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 regional transportation planning agencies of 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 joint the
authority. 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 member regional transportation
agencies 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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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.

   (e) It is the intent of the Legislature that the authority be
administered through a joint powers agreement among the regional
transportation planning agencies in each of the named counties.

   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  passenger
and  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 of one  person   board
member  appointed by each of the regional transportation
planning agencies of the Counties of Kern, Kings, Tulare, Fresno, and
Merced. 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.
   (b) All directors  , except the ex officio director,
 shall serve for terms of two years and until their
successors have qualified.
   (c) 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.
   93309.  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 have formed a joint exercise of
powers agreement to implement and manage the authority  . 
   93310.  The regional transportation planning agencies 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 state or 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.