BILL NUMBER: AB 95	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 11, 2015

INTRODUCED BY   Committee on Budget (Assembly Members Weber (Chair),
Bloom, Bonta, Campos, Chiu, Cooper, Gordon, Jones-Sawyer, McCarty,
Mullin, Nazarian, O'Donnell, Rodriguez, Thurmond, Ting, and Williams)

                        JANUARY 7, 2015

   An act  relating to the Budget Act of 2015.  
to amend Sections 99314.6 and 185035 of, and to add Section 185033.5
to, the Public Utilities Code, to repeal and add Section 7104.4 of
the Revenue and Taxation Code, to amend Sections 73.1, 156.1, 157.2,
and 894.6 of, to add Sections 156.5, 894.9, and 2106.6 to, to add and
repeal Section 73.2 of, and to repeal Article 4 (commencing with
Section 894.6) of Chapter 8 of Division 1 of, the Streets and
Highways Code, to amend Sections 5205.5 and 22352 of the Vehicle
Code, and to amend Item 2665-306-6043 of Section 2.00 of the Budget
Act of 2012 (Chapter 21 of the Statutes of 2012), relating to
transportation, and making an appropriation therefor, to take effect
immediately, bill related to the budget. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 95, as amended, Committee on Budget.  Budget Act of
2015.   Transportation.  
   (1) Existing law creates the State Transit Assistance program,
under which certain revenues in the Public Transportation Account are
allocated by formula for public transportation purposes. Under that
program, funds may not be allocated to a transit operator for
operating purposes unless the operator meets one of 2 specified
efficiency standards, subject to certain exceptions. However,
existing law suspends those restrictions with respect to allocations
for operating purposes made through the 2014-15 fiscal year. 

   This bill would continue the suspension of those restrictions
through the 2015-16 fiscal year. 
   (2) Existing law, the California High-Speed Rail Act, creates the
High-Speed Rail Authority to develop and implement a high-speed rail
system in the state, with specified powers and duties. Existing law
requires the authority to establish an independent peer review group
for the purpose of reviewing the planning, engineering, financing,
and other elements of the authority's plans and issuing an analysis
of the appropriateness and accuracy of the authority's assumptions
and an analysis of the viability of the authority's funding plan for
each corridor. Existing law specifies the required qualifications for
the members of the peer review group.  
   This bill would revise the required qualifications for certain
members of the peer review group.  
   (3) Existing law, as part of an amendment of the Budget Act of
2012, appropriates $2,609,076,000 from the High-Speed Passenger Train
Bond Fund to the High-Speed Rail Authority for construction of the
high-speed rail project and makes that appropriation available for
encumbrance until June 30, 2018. Existing law requires the authority
to provide a project update report to specified committees of the
Legislature by March 1 and November 1 of each year in which that
funding is encumbered.  
   This bill would instead require the project update report to be
provided to those committees by March 1, 2017, and every 2 years
thereafter.  
   (4) Existing law, in connection with the appropriation referenced
in (3), also requires the High-Speed Rail Authority to provide
various reports relating to authority staffing and contract
management issues with respect to certain contracts to be awarded by
the authority.  
   This bill would repeal those reporting requirements.  
   (5) Existing law defines the authorized routes in the State
Highway System, including State Route 275, which is defined to be the
Tower Bridge from the west side of the Sacramento River near the
City of West Sacramento to the east side of the Sacramento River near
the City of Sacramento. Existing law authorizes the California
Transportation Commission to relinquish any portion of State Route
275 to a city in which it is located with the agreement of that city,
pursuant to terms that the commission finds to be in the best
interest of the state.  
   This bill would authorize the commission to relinquish the Tower
Bridge to one or more cities in which it is located. The bill, until
July 1, 2016, would provide that the Tower Bridge shall be deemed to
be in a state of good repair for these purposes, provided that it is
not structurally deficient and is rated as satisfactory pursuant to
the National Bridge Index.  
   (6) Existing law provides that the Department of Transportation
has full possession and control of all state highways. Existing law,
through the year 2020, requires the department to prepare an annual
report to the Legislature describing the status of the department's
progress in locating, assessing, and remediating barriers to fish
passage, as defined. Existing law requires the department also to
complete assessments of potential barriers to anadromous fish prior
to commencing specified projects using state or federal
transportation funds. Existing law requires the department to submit
these assessments to the Department of Fish and Wildlife. Existing
law also requires new projects to be constructed without presenting
barriers to fish passage.  
   This bill would require the department to prepare the annual
report to the Legislature through the year 2025. The bill would
require the Department of Fish and Wildlife to identify the
above-described projects that present the most significant barriers
to fish passage. The bill would require the Department of
Transportation to prioritize and expedite the remediation of barriers
to fish passage on those projects and would require the department
to include a status report on those projects in each annual report
issued after October 31, 2016. The bill would appropriate $5,000,000
from the State Highway Account to the Department of Transportation
for the identification and remediation of high-priority fish passages
pursuant to these provisions.  
   (7) Existing law provides for apportionment of fuel excise tax
revenues to cities and counties pursuant to various formulas. 

   This bill would authorize the Sacramento County Board of
Supervisors to allocate up to $700,000 from fuel excise tax revenues
apportioned to Sacramento County or from other transportation funds
available to the county for the purpose of building a soundwall in
and around the Walerga Park area adjacent to State Route 80 in
Sacramento County.  
   (8) Existing law creates the Transportation Investment Fund, and
continuously appropriates the moneys in the fund for various
transportation purposes.  
   This bill would require all assets and liabilities of the
Transportation Investment Fund to become assets and liabilities of
the State Highway Account before June 30, 2016.  
   (9) Existing law authorizes the Department of Transportation to
issue Clean Renewable Energy Bonds for purposes of financing the
acquisition and installation of solar energy systems and related
appurtenances at facilities of the department. Existing law requires
the net proceeds of bonds issued under these provisions to be
deposited in the Clean Renewable Energy Bonds Subaccount in the
Special Deposit Fund. Existing law provides for the payment of debt
service on these bonds from a specified appropriation from the State
Highway Account.  
   This bill would require any remaining moneys in the Clean
Renewable Energy Bonds Subaccount to be transferred to the State
Highway Account by July 1, 2015.  
   (10) Existing law creates the Pedestrian Safety Account in the
State Transportation Fund, and provides for the Department of
Transportation to award pedestrian safety grants from appropriated
funds to local agencies on a competitive basis.  
   This bill would require all assets and liabilities of the
Pedestrian Safety Account to become assets and liabilities of the
State Highway Account before January 1, 2016. The bill would repeal
all provisions relating to the account on January 1, 2016.  

   (11) Existing law provides for the Department of Transportation
and certain other agencies to contract for intercity rail passenger
service with state funds appropriated for that purpose.  
   This bill, by April 1, 2016, would require the department to
prepare a report to the Legislature examining improvements to safety,
reduction of greenhouse gas emissions, and improvements to intercity
rail passenger service levels that could be achieved through
investments in improvements to grade level crossings or construction
of grade separation projects at key intersections along
state-sponsored intercity rail routes.  
   (12) Existing federal law, until September 30, 2017, authorizes a
state to allow specified labeled vehicles to use lanes designated for
high-occupancy vehicles (HOVs). Existing law authorizes the
Department of Transportation to designate certain lanes for the
exclusive use of HOVs. Under existing law, until January 1, 2019,
until federal authorization expires, or until the Secretary of State
receives a specified notice, those lanes may be used by certain
vehicles not carrying the requisite number of passengers otherwise
required for the use of an HOV lane, if the vehicle displays a valid
identifier issued by the Department of Motor Vehicles (DMV). Existing
law authorizes the DMV to issue no more than 70,000 of those
identifiers.  
   This bill would increase the number of those identifiers that the
DMV is authorized to issue to 85,000.  
   (13) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
 
   This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2015. 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee:  no   yes  .
State-mandated local program: no.


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

   SECTION 1.    Section 99314.6 of the  
Public Utilities Code   is amended to read: 
   99314.6.  (a) Except as provided in Section 99314.7, the following
eligibility standards apply:
   (1) Except as provided in paragraph (2), funds shall not be
allocated for operating purposes pursuant to Sections 99313 and 99314
to an operator unless the operator meets either of the following
efficiency standards:
   (A) The operator's total operating cost per revenue vehicle hour
in the latest year for which audited data are available does not
exceed the sum of the preceding year's total operating cost per
revenue vehicle hour and an amount equal to the product of the
percentage change in the Consumer Price Index for the same period
multiplied by the preceding year's total operating cost per revenue
vehicle hour.
   (B) The operator's average total operating cost per revenue
vehicle hour in the latest three years for which audited data are
available does not exceed the sum of the average of the total
operating cost per revenue vehicle hour in the three years preceding
the latest year for which audited data are available and an amount
equal to the product of the average percentage change in the Consumer
Price Index for the same period multiplied by the average total
operating cost per revenue vehicle hour in the same three years.
   (2) The transportation planning agency, county transportation
commission, or the San Diego Metropolitan Transit Development Board,
as the case may be, shall adjust the calculation of operating costs
and revenue vehicle hours pursuant to paragraph (1) to account for
either or both of the following factors:
   (A) Exclusion of costs increases beyond the change in the Consumer
Price Index for fuel; alternative fuel programs; power, including
electricity; insurance premiums and payments in settlement of claims
arising out of the operator's liability; or state or federal
mandates, including the additional operating costs required to
provide comparable complementary paratransit service as required by
Section 37.121 of Title 49 of the Code of Federal Regulations,
pursuant to the Americans with Disabilities Act of 1990 (42 U.S.C.
Sec. 12101 et seq.), as identified in the operator's paratransit plan
pursuant to Section 37.139 of Title 49 of the Code of Federal
Regulations.
   (B) Exclusion of startup costs for new services for a period of
not more than two years.
   (3) Funds withheld from allocation to an operator pursuant to
paragraph (1) shall be retained by the transportation planning
agency, county transportation commission, or the San Diego
Metropolitan Transit Development Board, as the case may be, for
reallocation to that operator for two years following the year of
ineligibility. In a year in which an operator's funds are allocated
pursuant to paragraph (1), funds withheld from allocation during a
preceding year shall also be allocated. Funds not allocated before
the commencement of the third year following the year of
ineligibility shall be reallocated to cost effective high priority
regional transit activities, as determined by the transportation
planning agency, county transportation commission, or the San Diego
Metropolitan Transit Development Board, as the case may be. If that
agency or commission, or the board, determines that no cost effective
high priority regional transit activity exists, the unallocated
funds shall revert to the Controller for reallocation.
   (b) As used in this section, the following terms have the
following meanings:
   (1) "Operating cost" means the total operating cost as reported by
the operator under the Uniform System of Accounts and Records,
pursuant to Section 99243 and subdivision (a) of Section 99247.
   (2) "Revenue vehicle hours" has the same meaning as "vehicle
service hours," as defined in subdivision (h) of Section 99247.
   (3) "Consumer Price Index," as applied to an operator, is the
regional Consumer Price Index for that operator's region, as
published by the United States Bureau of Labor Statistics. If a
regional index is not published, the index for the State of
California applies.
   (4) "New service" has the same meaning as "extension of public
transportation services" as defined in Section 99268.8.
   (c) The restrictions in this section do not apply to allocations
made for capital purposes.
   (d) The exclusion of costs increases described in paragraph (2) of
subdivision (a) applies solely for the purpose of calculating an
operator's eligibility to claim funds pursuant to this section and
does not authorize an operator to report an operating cost per
revenue vehicle hour other than as described in this section and in
Section 99247, to any of the following entities:
   (1) The Controller pursuant to Section 99243.
   (2) The entity conducting the fiscal audit pursuant to Section
99245.
   (3) The entity conducting the performance audit pursuant to
Section 99246.
   (e) The restrictions in this section shall not apply to the
allocation of funds made pursuant to Sections 99313 and 99314 after
January 1, 2010, and through the  2014-15  
2015-   16  fiscal year.
   SEC. 2.    Section 185033.5 is added to the 
 Public Utilities Code   , to read:  
   185033.5.  On or before March 1, 2017, and every two years
thereafter, the authority shall provide a project update report,
approved by the Secretary of Transportation as consistent with the
criteria in this section, to the budget committees and the
appropriate policy committees of both houses of the Legislature, on
the development and implementation of intercity high-speed train
service pursuant to Section 185030. The report, at a minimum, shall
include a programwide summary, as well as details by project segment,
with all information necessary to clearly describe the status of the
project, including, but not limited to, all of the following:
   (a) A summary describing the overall progress of the project.
   (b) The baseline budget for all project phase costs, by segment or
contract, beginning with the California High-Speed Rail Program
Revised 2012 Business Plan.
   (c) The current and projected budget, by segment or contract, for
all project phase costs.
   (d) Expenditures to date, by segment or contract, for all project
phase costs.
   (e) A comparison of the current and projected work schedule and
the baseline schedule contained in the California High-Speed Rail
Program Revised 2012 Business Plan.
   (f) A summary of milestones achieved during the prior two-year
period and milestones expected to be reached in the coming two-year
period.
   (g) Any issues identified during the prior two-year period and
actions taken to address those issues.
   (h) A thorough discussion of risks to the project and steps taken
to mitigate those risks. 
   SEC. 3.    Section 185035 of the   Public
Utilities Code   is amended to read: 
   185035.  (a) The authority shall establish an independent peer
review group for the purpose of reviewing the planning, engineering,
financing, and other elements of the authority's plans and issuing an
analysis of appropriateness and accuracy of the authority's
assumptions and an analysis of the viability of the authority's
financing plan, including the funding plan for each corridor required
pursuant to subdivision (b) of Section 2704.08 of the Streets and
Highways Code.
   (b) The peer review group shall include all of the following:
   (1) Two individuals with  education and  experience in
the  planning and  construction  or operation
 of  large transportation systems, such as 
high-speed  trains in Europe, Asia, or both,  
rail, or highway systems with similar characteristics, 
designated by the Treasurer.
   (2) Two individuals, one with experience in engineering and
construction of high-speed  trains   rail or
similar large infrastructure projects  and one with experience
in project  planning and  finance, designated by the
Controller.
   (3) One representative from a financial services or financial
consulting firm who shall not have been a contractor or subcontractor
of the authority for the previous three years, designated by the
Director of Finance.
   (4) One representative with experience in environmental planning,
designated by the Secretary of Transportation.
   (5) Two  expert representatives from agencies 
 individuals with experience  providing  or governing
 intercity or commuter passenger train services in California,
designated by the Secretary of Transportation.
   (c) The peer review group shall evaluate the authority's funding
plans and prepare its independent judgment as to the feasibility and
reasonableness of the plans, appropriateness of assumptions,
analyses, and estimates, and any other observations or evaluations it
deems necessary.
   (d) The authority shall provide the peer review group any and all
information that the peer review group may request to carry out its
responsibilities.
   (e) The peer review group shall report its findings and
conclusions to the Legislature no later than 60 days after receiving
the plans.
   SEC. 4.    Section 7104.4 of the   Revenue
and Taxation Code   is repealed.  
   7104.4.  All remaining obligations of the Transportation
Investment Fund as of July 1, 2010, that cannot be funded with
resources in that fund shall become obligations of the State Highway
Account. 
   SEC. 5.    Section 7104.4 is added to the  
Revenue and Taxation Code   , to read:  
   7104.4.  (a) The State Highway Account in the State Transportation
Fund is the successor account to the Transportation Investment Fund.

   (b) All assets and liabilities of the Transportation Investment
Fund shall become assets and liabilities of the State Highway Account
on or before June 30, 2016. 
   SEC. 6.    Section 73.1 of the   Streets and
Highways Code   is amended to read: 
   73.1.  The commission may relinquish  any portion of
 State Route 275  that has been agreed to by a city
  , the Tower Bridge, to one or more cities  in
which it is located  , upon agreement of the city or cities to
accept it and  pursuant to those terms the commission finds to
be in the best interest of the state. A relinquishment under this
section shall become effective upon the first day of the next
calendar or fiscal year, whichever occurs first, after the effective
date of the commission's approval of the terms.
   SEC. 7.    Section 73.2 is added to the  
Streets and Highways Code   , to read:  
   73.2.  (a) State Route 275, the Tower Bridge, shall be deemed to
be in a state of good repair for purposes of relinquishment pursuant
to Section 73.1, provided that the bridge is not structurally
deficient and is rated as satisfactory pursuant to the National
Bridge Index.
   (b) This section shall become inoperative on July 1, 2016, and, as
of January 1, 2017, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2017, deletes or
extends the dates on which it becomes inoperative and is repealed.

   SEC. 8.    Section 156.1 of the   Streets
and Highways Code   is amended to read: 
   156.1.   (a)    The Director of Transportation
shall prepare an annual report describing the status of the
department's progress in locating, assessing, and remediating
barriers to fish passage. This report shall be given to the
Legislature by October 31 of each year through the year 
2020.   2025. 
    (b)     Each report issued after October
31, 2016, shall include a status report on the remediation of
barriers to fish passage on projects that have been identified
pursuant to Section 156.5. The status report shall include, but is
not limited to, all of the following information regarding a project
identified pursuant to Section 156.5:  
   (1) Any updated information received by the department from the
Department of Fish and Wildlife regarding the barriers to fish
passage on the project.  
   (2) Whether funding has been committed to the project.  
   (3) The source of any funding for the project.  
   (4) The budget summary of the project.  
   (5) The status of inspections of culverts to ensure they are
functioning properly and any other actions by the department to
assess or remediate barriers to fish passage on the project. 

   (6) The applicable program initiation document work plan review.
 
   (7) The estimated completion date for the project. 
   SEC. 9.    Section 156.5 is added to the  
Streets and Highways Code   , to read:  
   156.5.  (a) The Department of Fish and Wildlife shall identify
projects described in this article that present the most significant
barriers to fish passage.
   (b) The department shall prioritize and expedite the remediation
of barriers to fish passage on projects identified pursuant to
subdivision (a).
   (c) For the 2015-16 fiscal year, the sum of five million dollars
($5,000,000) is hereby appropriated from the State Highway Account in
the State Transportation Fund to the Department of Transportation
for the identification and remediation of high-priority fish passages
consistent with this section and Section 156.1. 
   SEC. 10.    Section 157.2 of the   Streets
and Highways Code   is amended to read: 
   157.2.   (a)    The net proceeds of bonds issued
under this article shall be deposited in the Clean Renewable Energy
Bonds Subaccount, which is hereby established as a special trust fund
in the Special Deposit Fund created pursuant to Section 16370 of the
Government Code. 
   (b) On or before July 1, 2015, any remaining moneys in the
subaccount shall be transferred to the State Highway Account in the
State Transportation Fund. 
   SEC. 11.    Section 894.6 of the   Streets
and Highways Code   is amended to read: 
   894.6.   (a)    The Pedestrian Safety Account is
hereby established in the State Transportation Fund for expenditure
by the department, upon appropriation, for the purposes of funding
grants awarded pursuant to Section 894.7. 
   (b) All assets and liabilities of the Pedestrian Safety Account
shall become assets and liabilities of the State Highway Account
before January 1, 2016. 
   SEC. 12.    Section 894.9 is added to the  
Streets and Highways Code   , to read:  
   894.9.  This article shall remain in effect only until January 1,
2016, and as of that date is repealed. 
   SEC. 13.    Section 2106.6 is added to the  
Streets and Highways Code   , to read:  
   2106.6.  The Sacramento County Board of Supervisors may allocate
up to seven hundred thousand dollars ($700,000) from revenues
apportioned to Sacramento County pursuant to Sections 2103, 2104,
2105, and 2106, or from other transportation funds available to the
county, or from any combination of those funds, for the purpose of
building a soundwall in and around the Walerga Park area adjacent to
State Route 80 in Sacramento County. 
   SEC. 14.    Section 5205.5 of the   Vehicle
Code   is amended to read: 
   5205.5.  (a) For purposes of implementing Section 21655.9, the
department shall make available for issuance, for a fee determined by
the department to be sufficient to reimburse the department for the
actual costs incurred pursuant to this section, distinctive decals,
labels, and other identifiers that clearly distinguish the following
vehicles from other vehicles:
   (1) A vehicle that meets California's super ultra-low emission
vehicle (SULEV) standard for exhaust emissions and the federal
inherently low-emission vehicle (ILEV) evaporative emission standard,
as defined in Part 88 (commencing with Section 88.101-94) of Title
40 of the Code of Federal Regulations.
   (2) A vehicle that was produced during the 2004 
model-year   model year  or earlier and meets
California's ultra-low emission vehicle (ULEV) standard for exhaust
emissions and the federal ILEV standard.
   (3) A vehicle that meets California's enhanced advanced technology
partial zero-emission vehicle (enhanced AT PZEV) standard or
transitional zero-emission vehicle (TZEV) standard.
   (b) The department shall include a summary of the provisions of
this section on each motor vehicle registration renewal notice, or on
a separate insert, if space is available and the summary can be
included without incurring additional printing or postage costs.
   (c) The Department of Transportation shall remove individual HOV
lanes, or portions of those lanes, during periods of peak congestion
from the access provisions provided in subdivision (a), following a
finding by the Department of Transportation as follows:
   (1) The lane, or portion thereof, exceeds a level of service C, as
discussed in subdivision (b) of Section 65089 of the Government
Code.
   (2) The operation or projected operation of the vehicles described
in subdivision (a) in these lanes, or portions thereof, will
significantly increase congestion.
   (3) The finding shall also demonstrate the infeasibility of
alleviating the congestion by other means, including, but not limited
to, reducing the use of the lane by noneligible vehicles or further
increasing vehicle occupancy.
   (d) The State Air Resources Board shall publish and maintain a
listing of all vehicles eligible for participation in the programs
described in this section. The board shall provide that listing to
the department.
   (e) (1) For purposes of subdivision (a), the Department of the
California Highway Patrol and the department, in consultation with
the Department of Transportation, shall design and specify the
placement of the decal, label, or other identifier on the vehicle.
Each decal, label, or other identifier issued for a vehicle shall
display a unique number, which  number  shall be
printed on, or affixed to, the vehicle registration.
   (2) Decals, labels, or other identifiers designed pursuant to this
subdivision for a vehicle described in paragraph (3) of subdivision
(a) shall be distinguishable from the decals, labels, or other
identifiers that are designed for vehicles described in paragraphs
(1) and (2) of subdivision (a).
   (f) (1) Except as provided in paragraph (2), for purposes of
paragraph (3) of subdivision (a), the department shall issue no more
than  70,000   85,000  distinctive decals,
labels, or other identifiers that clearly distinguish a vehicle
specified in paragraph (3) of subdivision (a).
   (2) The department may issue a decal, label, or other identifier
for a vehicle that satisfies all of the following conditions:
   (A) The vehicle is of a type identified in paragraph (3) of
subdivision (a).
   (B) The owner of the vehicle is the owner of a vehicle for which a
decal, label, or other identifier described in paragraph (1) was
previously issued and that vehicle for which the decal, label, or
other identifier was previously issued is determined by the
department, on the basis of satisfactory proof submitted by the owner
to the department, to be a nonrepairable vehicle or a total loss
salvage vehicle.
   (C) The owner of the vehicle applied for a decal, label, or other
identifier pursuant to this paragraph within six months of the date
on which the vehicle for which a decal, label, or other identifier
was previously issued is declared to be a nonrepairable vehicle or a
total loss salvage vehicle.
   (g) If the Metropolitan Transportation Commission, serving as the
Bay Area Toll Authority, grants toll-free and reduced-rate passage on
toll bridges under its jurisdiction to a vehicle pursuant to Section
30102.5 of the Streets and Highways Code, it shall also grant the
same toll-free and reduced-rate passage to a vehicle displaying an
identifier issued by the department pursuant to paragraph (1) or (2)
of subdivision (a).
   (h) (1) Notwithstanding Section 21655.9, and except as provided in
paragraph (2), a vehicle described in subdivision (a) that displays
a decal, label, or identifier issued pursuant to this section shall
be granted a toll-free or reduced-rate passage in high-occupancy toll
lanes as described in Section 149.7 of the Streets and Highways Code
unless prohibited by federal law.
   (2) (A) Paragraph (1) does not apply to the imposition of a toll
imposed for passage on a toll road or toll highway, that is not a
high-occupancy toll lane as described in Section 149.7 of the Streets
and Highways Code.
   (B) On or before March 1, 2014, paragraph (1) does not apply to
the imposition of a toll imposed for passage in lanes designated for
tolls pursuant to the federally supported value pricing and transit
development demonstration program operated pursuant to Section 149.9
of the Streets and Highways Code for State Highway Route 10 or 110.
   (C) Paragraph (1) does not apply to the imposition of a toll
charged for crossing a state-owned bridge.
   (i) If the Director of Transportation determines that federal law
does not authorize the state to allow vehicles that are identified by
distinctive decals, labels, or other identifiers on vehicles
described in subdivision (a) to use highway lanes or highway access
ramps for high-occupancy vehicles regardless of vehicle occupancy,
the Director of Transportation shall submit a notice of that
determination to the Secretary of State.
   (j) This section shall become inoperative on January 1, 2019, or
the date the federal authorization pursuant to Section 166 of Title
23 of the United States Code expires, or the date the Secretary of
State receives the notice described in subdivision (i), whichever
occurs first, and, as of January 1, 2019, is repealed, unless a later
enacted statute, that becomes operative on or before January 1,
2019, deletes or extends the dates on which it becomes inoperative
and is repealed.
   SEC. 15.    Section 22352 of the   Vehicle
Code   is amended to read: 
   22352.  The prima facie limits are as follows and shall be
applicable unless changed as authorized in this code and, if so
changed, only when signs have been erected giving notice thereof:
   (a) Fifteen miles per hour:
   (1) When traversing a railway grade crossing, if during the last
100 feet of the approach to the crossing the driver does not have a
clear and unobstructed view of the crossing and of any traffic on the
railway for a distance of 400 feet in both directions along the
railway. This subdivision does not apply in the case of any railway
grade crossing where a human flagman is on duty or a clearly visible
electrical or mechanical railway crossing signal device is installed
but does not then indicate the immediate approach of a railway train
or car.
   (2) When traversing any intersection of highways if during the
last 100 feet of the driver's approach to the intersection the driver
does not have a clear and unobstructed view of the intersection and
of any traffic upon all of the highways entering the intersection for
a distance of 100 feet along all those highways, except at an
intersection protected by stop signs or yield right-of-way signs or
controlled by official traffic control signals.
   (3) On any alley.
   (b) Twenty-five miles per hour:
   (1) On any highway other than a state highway, in any business or
residence district unless a different speed is determined by local
authority under procedures set forth in this code.
   (2) When approaching or passing a school building or the grounds
thereof, contiguous to a highway and posted with a standard "SCHOOL"
warning sign, while children are going to or leaving the school
either during school hours or during the noon recess period. The
prima facie limit shall also apply when approaching or passing any
school grounds which are not separated from the highway by a fence,
gate, or other physical barrier while the grounds are in use by
children and the highway is posted with a standard "SCHOOL" warning
sign. For purposes of this subparagraph, standard "SCHOOL" warning
signs may be placed at any distance up to 500 feet away from school
grounds.
   (3) When passing a senior center or other facility primarily used
by senior citizens, contiguous to a street other than a state highway
and posted with a standard "SENIOR" warning sign. A local authority
may erect a sign pursuant to this paragraph when the local agency
makes a determination that the proposed signing should be
implemented. A local authority may request grant funding from the
 Pedestrian Safety Account   Active
Transportation Program  pursuant to  Chapter 8 (commencing
with  Section  894.7   2380) of Division 3
 of the Streets and Highways Code, or any other grant funding
available to it, and use that grant funding to pay for the erection
of those signs, or may utilize any other funds available to it to pay
for the erection of those signs, including, but not limited to,
donations from private sources.
   SEC. 16.   Item 2665-306-6043 of Section 2.00 of the
  Budget Act of 2012   (Chapter 21 of the Statues
of 2012), as added by Section 9 of Chapter 152 of the Statutes of
2012, is amended to read: 
2665-306-6043--For capital outlay, High-
Speed Rail Authority, payable from the
High-Speed Passenger Train Bond Fund .... 2,609,076,000
    Schedule:
    (1)  20.01.010-Initial
         Operating Segment,
         Section 1-
         -Acquisition and     2,609,076,00
         Build...............            0
    Provisions:
    1.   The project identified in this
         item may be managed by the High-
         Speed Rail Authority.
    2.   The expenditure of funds
         appropriated in this item are
         governed by Section 13332.19 of
         the Government Code. The project
         identified in this item is
         subject to review and oversight
         by the State Public Works Board.
         The project may be implemented
         using several design-build
         contracts, each of which will
         have its own set of performance
         criteria or performance criteria

   and concept drawings. Funds
         appropriated for the build
         portion of this project may only
         be expended after the Department
         of Finance and the State Public
         Works Board have     approved
         performance criteria or
         performance criteria and concept
         drawings for the design-build
         contract. These approvals may be
         provided for each design-build
         contract, from time to time, and
         build funds associated with that
         design-build contract may be
         expended at that time.
    3.   Notwithstanding Section 1.80,
         the appropriation made in this
         item is available for
         encumbrance until June 30, 2018.
     4.   On or before March 1 and 
          November 15 of each year for 
          which funding appropriated   in

          this item is encumbered, the 
          High-Speed Rail Authority shall 
          provide a Project Update Report 
          approved, as consistent with the 
          criteria in this provision,   by

          the Secretary of Business, 
          Transportation and         Housing

          to   the budget committees and the

          appropriate policy committees   of

          both houses of the Legislature 
          on   the development and 

          implementation of intercity high- 
          speed train service pursuant   to

          Section 185030 of the Public 
          Utilities Code. The report, at a 
          minimum, shall include a 
          programwide summary, as well as 
          details by project segment, with 
          all information necessary to 
          clearly describe the status of 
          the project, including, but not 
          limited to, all of the following: 
          (a)     A summary describing the 
                  overall progress of the 
                  project. 
          (b)     The baseline budget for 
                  all project phase costs, 
                  by segment or contract, 
                  beginning with the 
                  California       High- 
                  Speed Rail Program 
                  Revised 2012 Business 
                  Plan. 
          (c)     The current and 
                  projected budget, by 
                  segment or contract, for 
                 all project phase costs. 
          (d)     Expenditures to date, by 
                  segment or contract, for 
                  all project phase costs. 
          (e)     A comparison of the 
                  current and projected 
                  work schedule and the 
                  baseline schedule 
                  contained in the 
                  California High-Speed 
                  Rail Program Revised 
                  2012 Business Plan. 
          (f)     A summary of milestones 
                  achieved during the 
                  prior year and 
                  milestones expected to 
                  be reached in the coming 
                  year. 
          (g)     Any issues identified 
                  during the prior year 
                  and actions taken to 
                  address those issues. 
          (h)     A thorough discussion of 
                  various risks to the 
                  project and steps taken 
                  to mitigate those risks. 
     5.   (a)     With       respect to 
                  contracts scheduled to 
                  be awarded in December 
                  2012 to commence 
                  construction of the 
                  first construction 
                  segment of the initial 
                  operating section of the 
                  high-speed rail system, 
                  as described in the 
                  California High-Speed 
                  Rail Program Revised 
                  2012 Business Plan 
                  adopted by the authority 
                  on April 12, 2012 
                  (revised business plan), 
                  the authority shall 
                  submit the following 
                  reports approved, as 
                  consistent with the 
                  criteria in this 
                  provision, by the 
                  Secretary of Business, 
                  Transportation and 
                  Housing to the Senate 
                  Committee on 
                  Transportation and 
                  Housing, the Assembly 
                  Committee on 
                  Transportation, and the 
                  Senate and Assembly 
                  committees on budget: 
                  (1)  By October 1, 2012, 
                       prior to awarding a 
                       contract to 
                       commence 
                       construction of the 
                       first construction 
                       segment or 
                       committing funds 
                       for the contract, 
                       and       prior to 
                       advertising 
                       contracts to be 
                       awarded for the 
                       first construction 
                       segment in 
                       September 2013 and 
                       October 2013, a 
                       comprehensive staff 
                       management report 
                       that includes: 
                  (i)  An organizational 
                       chart for the 
                       authority, detailed 
                       description of each 
                       executive manager's 
                       function and 
                       responsibilities, 
                       summary of staffing 
                       changes in the 
                       preceding year, a 
                       strategy for 
                       filling vacancies 
                       and the recruitment 
                       and staffing plans 
                       for the 2012-13 
                       fiscal year. 
                  (ii) The management 
                       approach, including 
                       number, skill 
                       level, position, 
                       and hiring and 
                       retention plan of 
                       staff and outside 
                       consultants 
                       required to 
                       adequately oversee 
                       each of the planned 
                       construction 
                       contracts funded in 
                       this act. 
                  (iii Proposed steps and 
                  )    procedures that 
                       will be employed to 
                       ensure adequate 
                       oversight and 
                       management of 
                       contractors 
                       involved in the 
                       construction 
                       contracts funded in 
                       this act. 
                  (iv) Procedures to 
                       detect and prevent 
                       contract splitting. 
                  (2)  Prior to awarding a 
                       contract to 
                       commence 
                       construction of the 
                       first construction 
                       segment, a report 
                       certifying that the 
                       amount awarded 
                       under the contract 
                      is within the 
                       budgeted funding 
                       and is consistent 
                       with the completion 
                       schedule deadlines 
                       set by the federal 
                       Department of 
                       Transportation. 
          (b)     Each of the reports 
                  required pursuant to 
                  subdivision (a) for the 
                  contracts described in 
                  that subdivision shall 
                  also be required with 
                  respect to the contract 
                  scheduled to be awarded 
                  in March 2017. The 
                  authority shall submit 
                  the reports for those
                  contracts no later than 
                  60 days prior to 
                  advertising for bids on 
                  each contract. 
    7.   Sixty days prior to awarding the
         contracts scheduled to be
         awarded in December 2012 to
         commence construction of the
         first construction segment of
         the initial operating section,
         the High-Speed Rail Authority
         shall fill the positions of
         chief executive officer, risk
         manager, chief program manager,
         and chief financial officer and
         report those hiring to the Joint
         Legislative Budget Committee.
    8.   Prior to awarding the contracts
         scheduled to be awarded in
         December 2012 to commence
         construction of the first
         construction segment of the
         initial operating section, the
         High-Speed Rail Authority shall
         prepare and submit a report
         approved, as consistent with the
         criteria in this provision, by
          the Secretary of Business, 
          the Secretary of  Transportation  and
Housing to 
         t  o t  he Senate Committee on
 
         Transportation and Housing, the
         Assembly Committee on
         Transportation, and the Senate
         and Assembly committees on
         budget detailing elements of
         risk in the high-speed rail
         project, including all of the
         following:
         (a)     A comprehensive risk
                 management plan that
                 defines roles and
                 responsibilities for
                 risk management and
                 addresses the process by
                 which the authority will
                 identify and quantify
                 project risks, implement
                 and track risk response
                 activities, and monitor
                 and control risks
                 throughout the duration
                 of each project.
         (b)     Quantification of the
                 effect of identified
                 risks in financial terms.
         (c)     Development documents to
                 track identified risks
                 and related mitigation
                 steps.
         (d)     Plans for regularly
                 updating its estimates
                 of capital and support
                 costs.
         (e)     Plans for regularly
                 reassessing its reserves
                 for potential claims and
                 unknown risks,
                 incorporating
                 information related to
                 risks identified and
                 quantified through
                 its risk assessment
                 processes.
         (f)     Plans for regularly
                 integrating estimates
                 for capital, support
                 costs, and contingency
                 reserves in required
                 reports.
    9.   The High-Speed Rail Authority
         shall, as part of its January 1,
         2014, Business Plan, include: a
         proposed approach for improving
         (a) demand projections, (b)
         operations and maintenance cost
         models, and (c) benefit-cost
         analysis as applied to future
         project decisions. The authority
         shall also submit a copy of the
         study by the Union
         Internationale des Chemins de
         Fer (the international union of
         railways) examining how the
         authority's estimated operating
         costs for high-speed rail
         compare to high-speed rail
         systems in     other countries.
         These business plan components
         approved, as consistent with the
         criteria in this provision, by
          the Secretary of Business, 
          the Secretary of  Transportation  and
Housing shall 
          shall be based on 
          be based on  recommendations of  the

          the  authority's peer review 
  panel, 
          p  a  nel, a  dvice from
the domestic  and 
          and  international rail 
  community, 
          community,  and external academic 
review. 
          review. 
    10.  On or before June 30, 2013, the
         High-Speed Rail Authority shall
         prepare and submit a report
         approved, as consistent with the
         criteria in this provision, by
          the Secretary of Business, 
          the Secretary of  Transportation  and
Housing that 
          that  provides an analysis of the  net

          net  impact of the high-speed  rail

          rail  program on the state's
         greenhouse gas emissions. The
         report shall be submitted to the
         Senate Committee on
         Transportation and Housing, the
         Assembly Committee on
         Transportation, and the Senate
         and Assembly committees on
         budget.
    11.  Within 10 days of executing a
         valid memorandum of
         understanding (MOU) with
         regional transportation agencies
         relative to the Northern
         California Unified Service, the
         High-Speed Rail Authority shall
         make a copy of the MOU available
         to the Senate Committee on
         Transportation and Housing, the
         Assembly Committee on
         Transportation, and the Senate
         and Assembly committees on
         budget.
    12.  The safeguards and oversight
         rules and processes of Sections
         13332.11 or 13332.19 of the
         Government Code, as appropriate,
         shall apply to the High-Speed
         Rail Authority.
    13.  The funds appropriated in this
         item shall only be made
         available for expenditure upon
         the enactment of an
         appropriation of $106,000,000 in
         Item 2660-304-6043, an
         appropriation of $713,333,000 in
         Item 2660-104-6043 for
         ""Connectivity'' funding, and an
         appropriation of $1,100,000,000
         in Item 2665-104-6043 for
         ""Bookend'' funding, as
         articulated in the 2012 High-
         Speed Rail Authority Final
         Business Plan.


   SEC. 17.    The Department of Transportation shall
prepare a report examining improvements to safety, reduction of
greenhouse gas emissions, and improvements to intercity rail
passenger service levels that could be achieved through investments
in improvements to grade level crossings or construction of grade
separation projects at key intersections along state-sponsored
intercity rail routes. For purposes of this report, "key
intersections" means intersections identified in the Federal Railroad
Administration's Web Accident Prediction System with a predicted
collision risk of 0.15 or greater. The report shall be provided to
the Legislature on or before April 1, 2016, in the manner provided in
Section 9795 of the Government Code. 
   SEC. 18.    This act is a bill providing for
appropriations related to the Budget Bill within the meaning of
subdivision (e) of Section 12 of Article IV of the California
Constitution, has been identified as related to the budget in the
Budget Bill, and shall take effect immediately.  
  SECTION 1.    It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2015.