AB 3278

Bill Subjects

Abstract

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, statewide general election, provides for the issuance of $9,000,000,000 in general obligation bonds for high-speed rail purposes. Existing law requires the High-Speed Rail Authority, before committing those bond proceeds for expenditure for construction and real property and equipment acquisition, to have approved and concurrently submitted to the Director of Finance and the Chairperson of the Joint Legislative Budget Committee both a detailed funding plan and a report, prepared by one or more financial services firms, financial consulting firms, or other consultants involved in funding or constructing the high-speed train system, indicating that, among other things, the planned passenger train service to be provided by the authority, or pursuant to its authority, will not require an operating subsidy. This bill would state that passenger train service is provided by the authority, or pursuant to its authority for those purposes when high-speed train service uses the high-speed train system owned by the authority, regardless of whether the service is provided directly by the authority or provided by a third party pursuant to a lease agreement with the authority.