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TUESDAY, NOVEMBER 4, 2008

The statutory deadline for placing legislative and initiative measures on the ballot was June 26.

However, a new state law that passed after the deadline requires that Proposition I be removed from

the ballot and be replaced by Proposition IA. Therefore, although you are receiving information about both measures in the two state voter guides, only Proposition lA will appear on your November 4,2008, General Election ballot.

L l)~bra Bowell, Sccrct.irv cor Srar~ of rill" State of Califml1lil. do hereby cenify that the mca-un:

included herein wil] he submitted t" the dc:nor, of the Stall' of Cnlif()rni~\ <\T the Ccnc'fal l-Icction to be Iwld thn>ugholll the Slate: Oil "JoYc1llher -+, 21)US, and I hat thi., guide: has been corrccrlv pn-purcd in accordance with till' 1;1\\,.

\\'itrws, my huud and the G real S";ll of the Scm, in Sacramento. (::\iifurnia. on this 1 Hrh dav ,>f September, 21 lOS.

Debra Bowen Secretary of State

Dear Fellow Voter,

Recently you received the Official Voter Information Guide for the November 4, 2008, General Election. Since that was printed and mailed, another proposition has been added to the ballot and one has been removed, so my office has created this Supplemental Official Voter Information Guide.

The statutory deadline for placing legislative and initiative measures on the ballot was June 26. However, a new state law that passed after the deadline requires that Proposition 1 be removed from the ballot and be replaced by Proposition lA. Although voters are receiving information about both measures in the two voter guides they receive from my office, only Proposition lA wiff appear on the November 4, 2008, General Election ballot.

This Supplemental Official Voter Information Guide contains impartial analyses of the law and potential costs to taxpayers prepared by Legislative Analyst Elizabeth G. Hill, arguments in favor of and against the ballot measure prepared by proponents and opponents, text of the proposed law proofed by Legislative Counsel

Diane F. Boyer-Vine, and other useful information. The printing of the guide was done under the supervision of State Prin rer Geoff Brandt.

'Whether you cast your ballot by mail or at a polling place, I encourage you to take the time to carefully read about each of the 12 statewide measures that will be on your ballot.

For more information about how and where to vote, as well as other ways you can participate in the electoral process, call (800) 345-VOTE or visit www.sos.ca.gov.

TABLE OF CONTENTS

QUICK·REFERENCE GUIDE

3

PROPOSITION

1 A Safe, Reliable High-Speed Passenger Train Bond Act .. , ....................•.....................••....................•• 4

AN OVERVIEW OF STATE BOND DEBT

8

TEXT OF PROPOSED LAW

10

VOTER REGISTRATION INFORMATION

13

BALLOT MEASUR~S DEFINED, VOTING BY MAIL, PROVISIONAL BALLOTS

14

VOTER BILL OF RIGHTS

15

2 I SOS Later j Fable of Content]'

CALIFOR.NIA

ELECTION

TUESDAY, NOVEMBER 4, 2008

! SUPPLEMENTAL! ~

Thilluide contains Information -

relardlna one additional musure that bas qualified tor the November ballot.

Visit our website at unouuos.ca.go»

USE THIS QUICK-REFERENCE GUIDE AND TAKE IT WITH YOU TO THE POLLS!

This guide contains summary and contact information for one" additional state proposition appearing on me

. November 4,2008, ballot.

QUICK-REFERENCE GUIDE

PRO P SAFE, RELIABLE HIGH-SPEED lA PASSENGER TRAiN BOND ACT.

SUMMARY

Put 011 the Ballot by the texis/aturt!

To provide Californians a safe, convenient, affordable, and reliable alternative to driving and high gas prices; to provide good-paying jobs and improve California's economy while reducing air pollution, global warming greenhouse gases, and our dependence on foreign oil, shall $9.95 billion in bond, he issued to establish a dean, efficient high-speed train service linking Southern California, the Sacramento/San Joaquin Valley, and the San Francisco Bay Area, with at least 90 percent nfbond funds spent for specific projects, with private and public matching funds required, including, bur not limited to, federal funds, funds from revenue bonds, and local funds, and all bond funds subject to independent audits? Fiscal Impact: State costs of$19.4 billion, assuming 30 years to pay both principal and interest costs of the bonds, Payments would average about $647 million per year. 'W'hen constructed, unknown operation and maintenance rom, probably over $1 billion annually; at least partially, and potentially fully, offiet by passenger fares.

WHAT YOUR VOTE MEANS

YES A YE._) vote on this measure means: The STate could sell $9.95 billion in general obligation bond" to plan and to partially fund the construction of a high-speed train system in California, and to make capital improvements to state and local rail services.

ARGUMENTS

NO A NOvate on this measure me-ans; The state could

not sell $9.95 billion in geneml obligation bonds ror these purposes.

PRO Californias transportation

system is broken: skyrocketing gasoline prices and gridlocked freeways and airports. High-speed trains arc me new transportation option that reduces greenhouse gases and dependence on foreign oil. High-speed trains are cheaper than building new highways and airports to meet population growth and require NO NEWTAXES.

FOR ADDITIONAL INfORMATION

CON Prop. 1A is a huge

boondoggle. Taxpayers pay at least $640,000,000 per year in costs for a government run railroad. There's no guarantee it will ever get built. Expand existing transportation systems instead to cut commutes and save fuel. No on I A: an open taxpayer checkbook with virtually no accountability.

FOR

Robert Pence

ClItornians For High Speed Trains

- Yes on Proposition IA

455 Capitol Mall, Suite 801 Sacramento, CA 95814

(916) 551-2513 www.CalifurniaHighSpeedTrains.com

AGAINST Jon Coupal

Howard Jarvis Taxpayers

Association

921 II ill Street, Suite 1201 Sacramento, C'A 95814 (916) 444-9950 inro@hjta.org wwwbjta.org

Quick-Refarnce Guide I J

PROPOSITION

lA

SAFE, RELIABLE HIGH-SPEED PASSENGER TRAIN BOND ACT.

OFFICIAL TI'j'LE AND SUMMARY

SAFE, RELIABLE HIGH-SPEED PASSENGER TRAIN BOND ACT.

• Provides long-distance commuters with a safe, convenient, affordable, and reliable alternative (0 driving and high

gas prices.

• Reduces traffic congestion on the state's highways and at the state's airports.

• Reduces California's dependence on foreign oil,

• Reduces air pollution and global warming greenhouse gases.

• Establishes a clean, efficient 220 MPH transportation system.

• Improves existing passenger rail lines serving the state's major population centers.

• Provides for California's growing population.

• Provides for a bond issue ofS<).95 billion to establish high-speed train service linking Southern California counties, the Sacramento/San Joaquin Valley, and the San Francisco Bay Area.

• Provides that at least <)09/0 of these bond funds shall be spent for specific construction projects, with private and public matching funds required, including, bat not limited to, federal funds, funds from revenue bonds, and local funds.

• Requires that use of all bond funds is subject to independent audits.

• Appropriates money from the Ceneral Fund to pay bond principal and interest.

Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact:

• State costs of about $1 <)..1 billion, assuming 30 years to pay off both principal ($9.95 billion) and interest ($9.5 billion) costs of the bonds. Payments of about $647 million per year.

• When constructed, additional unknown costs, probably in excess of $1 billion a year, to operate and maintain a high-speed train system. The costs would be at least partially, and potentially fully, offset by passenger fare revenues, depending on ridership.

Senate:

FINAL VOTES CAST BY THE LEGISLATURE ON AB 3034 (PROPOSITION lA)

Noes 10

Ayes 27

Assembly:

Ayes 58

Noes 15

ANALYSIS BY THE LEGISLATIVE ANALYST

BACKGROUND

Urban, Commuter, and Intercity RBi!, California

is served by various types of pa,'i.'ienger rail services rhat include urban, commuter, and intercity rail services.

Urban and commuter rail services primarily serve local

and regional transportation needs. Examples include services provided by Thy Area Rapid Transit in the San Francisco Bay Area, Sacramento Regional Transit light rail, Metrolink in Southern California, and the San Diego Trolley These services are gmerally planned by local or regional governments and are funded with a corn bination of local,

s rate, an d federal III onies.

Inrerc i ry rail services p ri maril y sc I've bus i ness 0 I' recreational travelers over longer distances between cities as well as between regions in Calitornia and other pans of the countrv, Currently, [he Slate funds and contracts with Amrrakto provide 'intercity rail service, with trains

4 Title and SlImmary / An a lvsis

that travel at maximum speeds of up to about 90 miles per hour. There arc intercity rail services in three corridors: rhe Capitol Corridor service hom San Jose to Auburn, the San Joaquin service from Oakland to Bakersfield, and the Pacific Suriiiner service from San Diego to San Luis Obispo. None of the existing state-funded intercity rail services provide train service between northern California and southern California.

High~Speed Train System. Currently, California doe, not have a high-speed intercity passenger train system

that provides service at sustained speeds of 200 miles per hour or greater. In 1996, [he state neared the California High-Speed Rail Authority (the authority) to develop an intercity train system that can operate at speeds of 200 miles per hour or faster to connect the major metropolitan areas of California, and provide service between northern California and southern California.

PROP

lA

SAFE, RELIABLE HIGH-SPEED PASSENGER TRAIN BONO ACT.

* ARGUMENT IN FAVOR Of PROPOSITION lA *

Proposition IA will bring Californians a safe, convenient, affordable, and reliable alternative to soaring ga.o;oline prices, freeway congestion, rising airfares, plummeting airline service, and fewer flights available.

It will reduce California's dependence on foreign oil and reduce greenhouse gases that cause global warming.

Proposition IA is a $() .95 billion bond measure for an 800-mile High-Speed Train network that will relieve 70 million passenger trips a year that now clog California's highways and airportsWITHOUT RAISING TAXES.

California will be the first state in the counrrv to benefit from environmentally preferred High-Speed Trains common today in Europe and Asia. Proposition lA will bring California:

• Electric-powered High-Speed Trains running up to 220 miles an hour on modern track, safely separated from other traffic generally along existing rail corridors. Routes linking downtown stations in SAN DIEGO, LOS ANGELES, FRESNO, SAN JOSE, SAN FRANCISCO, and SACRAMENTO, with stops in communities in between.

• High-Speed Train service to major cities in ORANGE CO UNIT, the INLAND EMPIRE, the SAN JOAQUIN VALLEY, and the SOUTH BAY.

• Nearly a billion dollars to beef up commuter rail systems thar connect to High-Speed Trains.

Proposition IA will save time and money. Travel from

Los Angeles to San Francisco in about 2Vl hours for about $50 a person. With gasoline prices today, a driver of a 20-miles-pergallon car would spend about $87 and six hours on such a trip.

Ten years of study and planning have gone into PREPARING FOR construction, financing, and operation of a California bullet train network modeled on popular, reliable, and successful systems in Europe and Asia. Their record shows that High-Speed 'Irains deliver, both in service and economy,

Air travelers spend more time on the ground than in the air today. Proposition IA wi!! create a new transportation choice that improves conditions at our major airports. There's no room for more runways. High-Speed Trains can relieve that demand.

Electric-powered High-Speed Trai ns will remove over 12 billion pounds of CO, and greenhouse ga,es, equal to the pollution of nearly 1 million cars. And High-Speed Trains require one-third the energy of air travel and one-fifth the energy of auto travel.

Proposition IA will protect taxpayer interests.

• Public oversight and detailed independent review of financing plans.

• Matching private and federal funding to be identified BEFORE state bond funds are 'penT.

90% of the bond funds to be spent on system cOl~str~ction, not more studies, plan" and engineering acnviucs.

Bond financing to be available to every part of rhe state, The most cost -efhcienr construction segment., to have the highest priority.

Vote Yes on Proposition lA to IMPROVE MOBILITY and inject new vitality into California's economy by creating nearly 160,000 construction-related jobs and 450,000 permanent jobs in related industries like tourism. These are American jobs that cannot be outsourccd,

Vote Yes on Proposition IA.

\\~"W. Ca 1 i forniaHigh Speed' I rains. com

STEVEN 8. FALK, President

San Francisco Chamber of Commerce GARY TOE88EN, President

los Angeles Area Chamber of Commerce FRAN FLOREZ, Vice-Chair

California High-Speed Rail Authority

* REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION lA *

No on IA: A POLITICAl. BOONDOGGLE

The same politicians who can't solve our budget crisis and

want to raise your taxes think they can tun their own government railroad. Even they admit this high cost train hits taxpayers for $40 billion. Even so, this is just a "partial payment" by taxpayers, with NO guarantee it will be completed.

The project wasted $58 million on consultants, European travel, and fancy brochures and now billions more may he spent without laying an inch of track-money u!ea have to repay euen if the project foiled.

The special interests backing Prop. lA are notorious for their multi-billion dollar cost overruns.

No on IA: $20 BILLION IN DEBT REPAYMENT = INCREASED TAXES

Politicians admit that Prop. lA will annually cost California taxpayers $647 million each year for 30 years to repay debt. With California's already high debt levels, this will lead politicians to raise your taxes. California is America's 4'" highest taxed state and high taxes chase jobs out of Cal i fornia. Passage of Prop. 1 A may result in California passing New York to be the highest taxed state in America.

No on lA: EXPAND EXISTING TRANSIT SYSTEMS INS"I'EAD

Californians'problem is not gettingft()m San Francisco to Los Angeles, it's getting into toor]: each day.

Investing the same amount of money in regional transit and highway congestion relief would reduce pollution and our reliance on foreign oil.

NO ON PROP. lA: WEAK accountability, NO congestion relief for suffering commu ters, and TAXPAYER.S CAN'T AfFORD IT!

HON. CHUCK O£VORE, California State Assemblyman RICHARD TOLMACH, President

California Rail Foundation

MIKE ARNOLD, Ph.D., Co-Chair

Marin Citizens for Effective Transportation

PROP

lA

SAFE, RElIABLE HIGH-SPEED PASSENGER TRAIN BOND ACT.

* ARG UMENT AGAI NST PROPOSITION 1 A *

NO on Prop. lA: $20 Billion Costfor Taxpayers

Prop. lA is a boondoggle that will cost taxpayers at least $20 billion in principal and interest. The whole project could COSt

$90 billion-the most expensive railroad in history. No one really knows how much this will ultimately cost.

Taxpayers will foot this bill-it's not "free money." According to the measure (Article 3, Section 2704.10) ''. . . the full fai rh and credit of the State of California is hereby pledged for the punctual payment of hath principal or: and interest on, the bonds .... " This measure will take $20 billion ($2,000 for an average family of four) Out of the general fund over the life of the bonds.

NO 011 Prop. lA: California Taxpayers Can't Afford Higher Budget Deficits

With our budget crisis, billions in red ink, pending cuts to health care, the poor, parks, and schools, now is NOT THE TIME to add another $20 billion in stare debt and interest. The state al ready has over $100 B [[.LJ 0 N DO LLA RS in voter approved bond debt and our bond rating is already among the worst in the nation.

NO on Prop. I A-Better Uses for Taxpayer Dollars California has higher priorities than this $20 BILLION DOll.AR boondoggle.

What would $20 billion buy?

• 22,000 new teachers, firefighters, or law enforcement personnel for 10 years.

Health care for all children in the state for many years. Updating and improving California's water system ro provide a reliable supply of sate, clean water,

• Upgrade and expand existing transportation systems including roads and transit throughout California, which would really reduce traffic and emissions.

NO on Prop. 1 A- Virtually No AccountabiLity

Politicians, bureaucrats, and special interests will control the money, not voters. In fact, the lead contractor for this project is Parsons-Brinckerhofl, the same builder of the infamous "Big Dig" in Boston which had billions in cost overruns.

There is not ONE citizen member on the new "peer review group." They are all politicians and bureaucrats.

NO on Prop, lA-An Open Taxpayer Checkbook

Section 8(e) says the bond funds are " ... intended to encourage the federal government and the private sector TO make a significant contribution toward the construction .... "

NOTE THE WORD "ENCOURAGED"-that's bureaucratic language for "we will spend taxpayer money regardless of whether we ever get a penny from the private sector or the federal government."

In foct, $58 million in taxpayer money has ALRE1DY been spenf on this project and not ONE FOOT of track has been laid. Now they want us to trust them with BILLIONS more.

NO on Prop. I A-Promoted by Special Interests for Special Interests

The Association for California High Speed Trains is promoting thisboondoggle. Their Board represents out-of-state special interests (France, Pennsylvania, New Jersey, Maryland, New York City, Texas, and Illinois), many of whom stand to make millions if this measure passes.

Please JOin Us in Voting "NO" on Prop. I A.

Log on, learn more, and read it for yourself www.iJeraiiHSR.com.

HON. TOM McCLINTOCK, State Senator HON. GEORGE RUNNER, State Senator JON COUPAL, President

Howard Jarvis Taxpayers Association

* REBUTTAL TO ARGUMENT AGAI NSf PROPOSITION 1 A *

California's high-speed rail network requires NO TAX INCREASE and is subject to strict fiscal controls and oversight.

It's simple and fair-once completed, THE USERS OF THE SYSTEM PAY FOR THE SYSTEM. That's why taxpayer watchdog groups support Proposition IA.

Electric High-Speed Trains will give Californians a real alternative to skyrocketing gasoline prices and dependence on foreign oil while reducing greenhouse gases. Building high-speed rail is cheaper than expanding highways and airports to meet California's population growth.

Gridlock, hassles of flying and long-distance auto travel have become very onerous. Proposition lA will save time. Travel intercity downtown to downtown throughout California

on High-Speed Trains faster than automobile or air-AT A CHEAPER COST!

California's transportation system is out-of-date and deteriorating. We need options to poorly maintained roads, jammed runways, and congested highways. Californians need what most of the civilized world has-high-speed rail. We've fallen so far behind other states and nations that our crumbling infrastructure threatens our e<:onomy.

A 220-mile-an-hour statewide rail system will give Californians a faster, environmentally friendly alternative for travel.

Proposition IA will create 160,000 construction-related jobs and 450,000 permanent jobs.

Proposition 1 A is endorsed by law enforcement expertS, business leaders, environmentalists, and Californians looking for safe, affordable, and reliable transportation.

Signers of the ballot argument against Proposition lA arc habitual opponents of transportation improvements. Their claims are wrong and their data simply made up.

Californians need to invest in modern, effective transportation. Vote Yes on Proposition 1A. www.CaliforniaHighSpeedTrains.com

JIM EARP, Executive Director California Alliance for Jobs BOB BALGENORTH, President

State Building & Construction Trades Council of California LUCY DUNN, President

Orange County Business Council

TEXT OF PROPOSED LAW

PROPOSITION lA

This law proposed by Assembly Bill 3034 ofthe 2007-2008 Regular Session (Chapter 267, Statutes of 200g) is submitted to the people ill accordance with the prov isions of Article XVI of the California Constit ution,

This proposed law adds sections 10 the Street> and Highways Code: therefore, new provisions proposed to be added are printed in italic type to ind irate that they are new.

PROPOSED LAW

SEC 'I, Chapter 20 (commencing with Section 27(4) is added to Division 3 of the Streets and Highways Code, to read:

CIIAVIU 20, S.<Fr, RU,IABU Hf(;II-SnFIJ P"S,IFVGER IkJI-" Bos» An' FOR TIlE 21-'T CO-,\TI'R)'

Arrick I. General Provisions

2704_ This chapter lliall he knllwn and muy he cited 11.< the Safe, Reliable High-Speed Passenger Train BOIld Actfor the Zlss Century.

!704_()1. As used in this chapter, the following terms have the following meanings,

(a) "Committee" means the High-Speed Passenger Train Finance Commiuee created pursuant 10 Section 2704,12.

(hi "Authority" means the High-Speed Rail Authority created pursuant to Section 11I50!O ofthe Public Utilities Code, or its successor.

(c) "Fund" mean,I' the iligh -Speed Passenger Train Bond Fund created pursuant to Sec lion 2704J)5,

(d) "High-speed train" means a passenger train capable vf sustained r<,wnue operating speed" of at least 200 miles per hour where conditions permit those speeds.

(e) "High-speed train system" means a system with high-speed trains and includes, hut is not limited 10, thefollowing components. right-of-way, track,

power system, rolling stock, stations, and associated facilities. .

(j) "Corridor" means u portion of the high-speed train s)'stnll 0,' described in Section 2704,04,

tg) "Usable segment" m~"ns a portion of" corridor that includes at least tltO stations.

Article 2. High-Speed Passenger Train Financing Program

2704,04, ta) It isthe Intent ofthe Legislature by enacting this chapter and of the people of California bv approving the bond mea,mre pursuant 10 thi. chapter to initiutc th« construction ofa high-speed train ,':1'_I'le", that connects the Sail Francisco Transbay Terminal 10 Los Angeles Union Station and A naheim, and links Ihe stute 's major population centers, including Sacramento, the Sa" Francisco Bav Area, the Central Vallev; Los Angeles, the Inland Empire, Orange Counn" and San Diego cO/I sis ten! with the authoritv's certified environmental impact reports ofNovemher 2005 and Julv 9, 2008,

(b) ti) ,Vet proceeds received from the sale '!f nine billion do/lars ($9,O()O,OOO,OOO) principal amount '!f bonds authorized pursuant 10 this chapter. upon appropriation b .. the Legislature in the annual Budget Act, shall he usedfor (A) planning and engineering for the high-speed train system and IB] capital COSh, as described in subdivision (c}.

(2) .1.1 adopted bv the authority in May 2007, Phase / 'if the high-speed train project i. the corridor of the high-,'peed lrain srSlem betwt'en San Franci,>co TrallshllY Terminul und Los Angeles Union Sill lion ami Anaheim_

(3) IJp'J)I II finding hy Ihe omhorily that ~.,pendil",·e of hOlld I'rlJceed., jor capilul co.lls in corridors olher Ihan thc corrid"r de.l'crihed in paragraph 12) wOl/ld "dmnce Ihe consrrueti'))I '!{ Ihe .,yslem, would he cOll.,islelll wiln the crileria deserihed ill .I'ubdil'islon (f} of Sec I ion 2704,08, and would not have an ",/vers,> impact on tht, con.l'lru<'lion of Phase I of the high-spe,'d Irllin pn!iecl, Ihe (mlnorily may r('queslfumlillxjur capilal costs, alld Ihe Legi.llllll1re may Ill'prop,-illleJi",ds deserihed in pllragraph Ilj illth" annuill B"dget ACI, 10 he npelldedfi}r Illly ,!/'thefollowing high-speed Imin corridors:

(A) Sa<Tllmenlo to SWcklon 10 Fresno,

IBI San Franciw:o Tran,\'hay Terminal 10 San .lOSt' to Fr<'sno, Ie) Oakland /0 Sail Jose,

(V) Fre_IIlo 10 Bakersfield 10 Palmdille 10 Lo.l' Angeles Union SlIltio,,_

(1:.) Los Angeh's Union SlaliOlllo Riverside 10 Siln Diego, (1) LO.I' Angeles Union Stalion 10 Alwhelm 10 Irvine,

(Gj .. Herc"d 10 SlOckton to Oakland UJid S"n Frallcisco via Ihe Alta",,,"t Corrid"r,

(4) /'y'othing ill thi,I' section .I'hu/l prejlldice Ihe aUlhorily'.I' d,'lerminali'm and .I'eleclion oflhe olignmenl from the Cenlwl VoileI' to Ih~ SIIIl Francisco Ba)-'

10 Text of Prop():;cd Law

.4 rea and its certification of th« environmental impact report.

(5) Revenues of the a uthnrity, genera/I'd hy operations otthe high-speed train system 1I1",>'e and beyond operating and maintenance ,'oII.I' andfinlln('illg obligations, including, but IWI limited I", support of rel'~nue bonds, ii,,' determined by lite authority. shul] be used [or ('On.I'lrUCI ion, expansion, improvement, replacement, and rehabilitation of the high-speed train -1'_l'_\'I~IIl,

(c) Capital (',,-,IS payable or reimbursablefrom proceeds ofbonds described in paragraph (/) cfsubdivision (b) include, wit}: respect to the high-speed train system or any portion thereof. all activitie. necessarvforacquisition o{ interests ill real property and rights-of-way and improvement thereot; acquisition and construction of tracks, structures power systems and stations; acquisition of rolling stock and related equipment: mingatton ofuny direct or indirect environmental impacts of activities authorized h,l' this chapter; relocation assistance for displaced property own,.,.,\' lind occupants; other related capital [acilitie» and equipment,' and such other purposes rdllted 10 the joregoing.for the procurement thereo]. and for the financing or refinancing thereof, a" may be set _I'.>rth in II statute hereafter enacted. The method or acquisition ofany oftheforegoing may also be set ji>rrh in a statute hereafter enacted.

iii) Proceeds ofbonds authorized pursuan! /(J this chapter shall not be 1I.I'ed for allY operating or maintenance costs of trains orfacilities.

(e) The State Auditor shall perform periodic audits of the authority '.1' U'" '!I proceeds of bondsauthorized pursuant to this chapterfor consistency with the requirements of this chapter,

2704,{)5_ Subject to Section 2704_111, th« proceeds of bonds issued lind .mld pursuant 10 this chapter shall be deposited ill the High-Speed Passenger Train Bond Fund, whicl: i,l' hereby created.

27{)406_ The net proceeds received from the sale ofnine billion dollar. ($9,000,OOIJ,OOO) principal amount vf bonds authorized pursuant /0 this chapter, upon appropriation bv the Legislature in the annuul Budget Act, shall he available. and subject 10 those conditions and criteria that the Legislature may provide by statute. for (a) planning the high-speed train ,1'.I'I'lem and (h) capital costssetforth in subdivision It) of Section :!71!404, consistent with the authority S certified environmental impact reports of November 200,l and Juty 9, 200/i, '" subsequently modified pursuant 10 ell vironmental studies conducted bv the authority:

2704,07. The authoritv shall pursue and obtain other private and public funds, including, but not iimited to, federolfunds, [undsfrom ,.",'<'lIue bonds, and locaifunds, 10 augment the proceeds "flhi.I' chapter,

2704_0/i [u} Proceeds ofbonds described in paragraph (I) ofsubdivision (h) oI Section !704.04 shall not he usedfor more than 50 percent ,,{lhe total cost of construction of' eac]; corridor (})' usable segment thereof of the high· speed train system, except for bond proceed. used [or the purposes ol subdivision tg).

(b) Not more than Ii) percent of' the proceeds of bonds described in paragraph (/j oj subdivision (h) of Section 270404 shul! be used fill' environmental studies, planning, and preliminary engineering activities.

(c) (I) No tiller than 90 davs prior 10 the submittal to th« Legislature and the Governor of the initial request [or appropriation '!f proceeds of bond» authorized by this chapterfor any eligible capitol cosh o)! each corridor, "" usable segment thereof identified in subdivision Ihi of Section !704,04, other Ihon COSIS de.l'cribed ill suhdivision (gl, Ihe aulhorily shdl/ ha I'e apprtll'ed and suhmilled 10 Ihe Dire('/or oI Finllnce, Ihe peer re"i~w Xrolll <'SIIlb/i,I'hed purman! 10 Section I 1i50J5 ollhe Pllhiic L/I iii I ie_I' Code, "nd Iii,' poli"I' committees wilh jurisdiction vver troll,l'porlmion matta" (llid tlte fi,\'('ul committeel'in bOlh huuses oflhe Legi.l'lalllre, a demitedfullding plllll fiJl- Ihm cOlTidor or a Ii,mh/e sexmen!thereol

(2; Th,' plan shall include, identify, or cerlifv 10 all of the Jill/owing:

(A) The corridor, or usuhle .I'egment thereo/,' ill which Ih~ uilihoril\' i,I' proposing to in w.I'1 bond proce~d."

(B) A descriplion '!f'lhe expected lerm.l' Illld condition,I' a_I',wci"ted "'ith any h'a,I'~ IIgreement or Fanchi.I'e aKrecmeJII proposed 10 he ""Iered into h_I' Ih~ authority "nd any other pllrtyji,r Ihe cOII.'tnKlioll or opera/ion '!{pU,I',H'lIga Irain sel'l'it't' along Ihe corridor or I,,,,,ble segment Ih"""uj:

(Cj The estimllted full COSI of COn.Hruclillg the corrido/' or usa/J/e ,I'(.'gm,'nt thereof including an ntimule of 1'0.<1 e_\,n,(mion during ,'on.l'lnlclioll ~nd appropriale reservesfor conliJlgem'ies,

! D) The sources ,!(al/funds 10 he ill w.I'Ied in tn(' corridor, or u.whl<' ,I"-'gmelll tliereof. and Ihe alitinfHl/ed lime of rt'Ceipl "/Ihou jund.' hused UII expa/t'iI commilmenls, amhori:ation,I', agreements, al/oc(lIiOIlS, or (llher me"n.I',

rE) Th,' projecled ridership Ilnd opnatiJig rewnue eslimate /"',I','d on pl'Ojecl<,d hi'gh-sp~ed panenger Iral'n operations Oil th,. <'(lrridor or u.\'ubl~

TEXT OF PROPOSED LAW

(PROPOSITION 1 A CONTINUED)

segment.

(F) All known or foreseeable risks associated with the construction and operation of high-speed passenger train service olong the corridor or usa hie segment thereof and the process and actions the authority will undertake to manage those risks,

IG j Construction afrhe corridor or usable segment thereofcan be completed as proposed in the plan.

[H} The corridor or usable segment thereof would be suitable and readyjor high-speed train operation,

tl) One or mare passenger service providers CI111 begin using the tracks or stationsfor passenger train service.

(J) The planned passenger service by the authority in the corridor w usable segment thereof will nut require a local, slate, orfederal operating subsidy. (K) The authority has completed all necessary project level en vironmental clearances necessary 10 proceed to construction.

(d) Prior to committing any proceeds of bonds described in paragraph (f) ofsubdivision tb] ofSection 271)4,04 [or expenditure for construction and real properly and equipment acquisition on each corridor, or usable segment thereof. other thun for costs described ill subdivision (g). the authority shall have approved and concurrently submitted 10 the Director of Finance and the Chairperson of the Joint Legislative Budget Committee the following: 11) a detailed funding plan liJr thor corridor or usable segment thereofthat (A) identijies the corridor o~ usable segment thereof, and the estimated ful! cost of constructing the corridor or usable segment thereof. (B) identifies the ,\"(Jurees of'allfunds to be used and anticipates rime of receipt thereofbased on offered commitments by private parties, "lid authorizations, allocutions, or other assurance.' received from go vernmental agencies. (ej includes a projected ridership and operut ing revenue report, ( D) includes a construction COSI projection including estimates of cost escalation during construction and appropriate reserves [or "all tingen cit'S, I E) includes a report describing any material changes [rom the plan submitted pursuant to subdivision (c) for this corridor or usable segment thereof, and (F) describes the terms and conditions associated with an_I' agreement proposed 10 be entered into bv the authority and (lMY other party [or the cons/ruction or operation of passenger train service along the corridor or usable segment thereof"; and (2) 11 report or reports. prepared by one or more financial services firms.financial consulting firm", or other consultants, independent of am' parties, other than the authority, involved in funding or constructing the high-speed train system, indicating that (A) construction ofthe corridor 0)" usable segment thereof can be completed as proposed in the plan submitted pursuant to paragraph (1), (B) ifso completed, the corridor or usable segment thereofwould he sui/able and ready for high-speed train operation. (L) upon completion. one or more passenger service providers can begin using the tracks or stations [or passenger train service, (D) the planned passenger train service /0 be provided bv the authority. or pursuant to its 11 uthority, will not require operating subsidy. and (E) an assessment or risk and the risk mitigation strategies proposed to be employed. The Director ofFinance shall reView the plan within 611 days of its submission by the authority and. after receiving any communication [rom the Joint Legislative Budget Committee, If the director [inds that the plan i, likelv 10 be successfully Implemented as proposed. the authority mar en IeI' into commitments 10 expend bondfunds that are subject to this subdivision and accept offered commitmentsfrom private parties.

(e) Subsequent to approval of the detailed funding plan required under subdivision (d), the authority shall promptlv inform the Governor and tlu:

Legisl"l~re o( any materi,,1 chang"s ill plans or projeci condil ion,'- that would Jeopardize completioll of the corridor as pn'vious/y plulIIl"d alld shall identlfj' meuns of remedying Ihe conditiollS to al/vw completion and "paalion of the corridor.

if) In ,·e/ecting corridol's or u.wble segm,'nts thereofJiJ~ t'Onst~!lL'lion, Ihe aUlhority shal/ giw priorily 10 thow corridors VI' IIsable segmenls the~ealthal ar~ exp.>cled /a require the leaM amount olbO/u/[unds a.l" a pe"'efltage of IV tal COM '~lconwruclioll, Among other criteriv il may usefor est"blishing prir)rities [or iniliating construction 011 corridors or 1I.\"{1ble segments thereoj: Ihe authority shall include Ihe/al/owing: (i) p"!iecled ridership und revenue. (2) the ne.>d /() le51 and cerllfy tmins oper(lting at speeds oj220 mile., per h()ur. (3) the ulility 'llhase corridoY-' or usah/e segmenl.l' therfojjor pa"-,,enger Imin services OIhe~ Ihan tbe high',ll'"ed train service thai will nm re.<1Ilt in any unreimburscd opermillg 01' mainlenollce ,:ost to the authorilY. and (4) th,' extem to which the corridors include facili/ies cOl/lained therein 10 enhana the cannectivity of the high-sp,'ed t~ain nelwork to other mode" of tl'l1nsil, inc/uding, but not limited ta. con ventional rail (inlel'cill' rail, commuter rail. light mil. or other railtran"it), bu." VI' air tr"nsit,

(g) Nothing in this section shal! limit lise 0/' expenditure '~l proceeds or bonds described in paragraph (1) ofsubdivision (h) ofSection 27()4.1!4 up /() an amount equal to 7.5 percent ofthe aggregate principal amount ofbonds described in that paragraph for environmental studies, planning, and preliminary engineering activities. andfor (I) acquisition ofinterests in real property and rtght-of-wav and improvement thereof (AJ fi,,- preservation .Ii'r high-speed mil Us~.I', (8) to add to thtrd-partv improvemenls to milk" them compatible with high-speed rail u.,es. or (ej to a void or 10 m iligll I,' mcompntible improvements or uses; (2) mitigation O(lIIIY direct o~ indirect environmental impacts resulting from the foregoing; and 13) relocation assistancefor properly owners and occupants who are displaced <IS 0 1'/.'-",,11 or the foregoing.

(h) Not mOl'e than 2_5 percent or Ih .. proceeds of bonds described i'l paragraph (1) or subdivision (b) of Section 2704,1!4 shall be 1i,\"<'I1 for administrative purposes, The amount o{ bond proceeds avuilublr for administrative purpose" shall he appropriated in the annual Budget Ad, The Legislature ma,v. hy statute, adjust the percentage set forth ill this subdivision, except that the l.egislature shall nIJI increase thai percentuge IIJ more than 5 percent,

(I) Nofailure to comply with this section shal! al/i'ct the validity otthe bonds issued under this chapter.

27()4,1!'J_ The high-sp~ed train system 10 be constructed pursuant to th!« chapter shall be designed to achieve thefollowing characteristics.

(a) Electric trains that are capable ofsustained III axi m 11111 revenue operming speeds (dna les» than 2()(J miles per hour.

(hi Maximum nonstop service travcl timesior each corridor that .1 ha II 1101

exceed the following:

(I) Sun Francisco-Los Angeles Union Station: ty,·o hours, 4IJ minutes. (2) Oakland-Los Angeles Union Station: two hours, 4/i minutes.

(3) Sail Francisco-San Jose: 3() minutes.

(4) San Jose-Los Allge/es: 111'0 hours, II! minutes. (5J San Diego-Los Angeles: wle hour, 20 minutes. (6) Inland Empire-Lus Angeles. 30 minutes.

(7) Sacramento-Los Angeles: IWo hours. ]0 minutes.

[c] Achievable operating headway (limp betw .... en successive trains] ,1111l11 h" [ive minutes or less.

(d) The total number ofstations /0 be served bv high-speed trainslor all or the corridors described in subdivision (b) ofSection 271!4.04 shalt n", exceed 24. There shull be 110 station between the Gilroy station <111(/ the :1J"I't't'd station.

(e) Trains shull haw the capability to transition intermediatestations. or 10 bypass those stations. at mllinlitle operating speed.

(1) For each corridor described ill subdivision th], passengers shull have the capability of traveling [rom any station 011 that corridor 10 Imy nthrr station on that corridor without iJdng required 10 dillnge trains.

(gj In order to reduce impacts oil COIHlIIlWil ie» and the "nvirlm nU.'HI, the alignmentfor the high-speed train ''"Y.I'I.'m .,hallj')lIow existing transportation or utility corridors t" the extentfeasible and shall he [inanciullv viable, 'is determined bv the uuthority.

I hi Stat ions shalt be 10"" red in urea,l- with good a('c~.I'.' 10 local ma,'-\' transit 0/' other mode; oftrunsportution.

ti) The high-speed train system shall he planned and constructed ill " manll~r that minimizes urban sprawl and impacts on the natural environment.

(i) Preserving wildlite corridors and nlliigurl'lIg impacts 10 wildlili· mOl'ement. 11'llCref~asilJle as de/ermined bv Ihe ollthorily, in order tu lilliit Ihe ex tell t 10 which Ihe .'Y,I'lem mlly pre.>enl on ",lditi(Jnal ban'iN tt! lI'iidlifi'\ nulural m(H'Cmen',

2704,1J95_ (a) (1) ,'-kt pI'Vcced, reeeil'd/rom Ih~ sal~ ()l ni'!~ Ii wlIlredfifiy mil/ioll do/lars (S951J,IJOO.()IJIJ) prillcipalal/lount '~f1)OIld., l1I<lhori~,'d hv t"il chapler shall be allocllled t() <'iigible I'edpicnts fiJI' ('('pitlll imI'YlJvt'lIIen/.I' 10 imercity und commuter /'/1U lines Illid ul'hmt rail SI'.>"/<'m.I' Ill<It IHOI'ide dire", connectivily 10 the higir-,'"peed train SI'stem und ils/;U'ililies, til' thlll an' par! 01 the cOIISlruclion of'lhe high-,'p.'ed lrain ,1-YSf<'m liS Ihal sy.,leni i., d<,saibed in subdivision Ib) ,!fSeclion 2704./i4, or Ihal pf"(Il'i<ie capucitr enhancemelll.I' ""d ."1/ely improvements, F"nds under this section .I'hall be uvailable "po" appropriation bl' Ihe i.egiS/aillre in th~ ann~al Budgel ACI fiJr rll<' digihie pllrposes de.,cribed in subdivisioll (di.

(2) Twenty paaul(one hundred lIil,,'IV milliull d"lIars ($190,OI)(),O()OIJ of Ihe anj(JUIII aluh"n'zed by Ihi,5 ,'w,tion .,-h,dl be IIII()"U/edlor i'ltercitl' 1'(1ilt" Ihe Departmenl of Tran.lportmion, fiJI' stak-,I'uPI){)I'led illtercity rail lilln Ihlll provide regular/v scheduled service alld II,"" Imb/ic fimds /0 "perale "IItI

TEXT OF PROPOSED LAW

(PROPOSITION 1 A CONTINUED)

maintain railfacilities, rights-of-way, and equipment. A minimum o{2.1 percent oflhe ",nOIlIII avaitublc under this paragraph (/i!rty-,,-e,-en million iiv« hundred II"m,m,,,1 dollars ($4?500,()OO)) shall be allocated 10 each o] the state '." three intercity rail corridors.

The Culitornia Transportation Commis.I'i(Jn shall allocate the available funds 10 eligible recipients "011 sis '''111 witl: this section and shul! develop guidclilles, ill consultation ,1'IIh the authority, 10 implement the requirements otthi« section. The guidelines shall include provisionsfor the administration otfuud«. including, hili 1I0t limited to, the authority of the intercitv corridor operators 10 10"11 these funds bv mutual agreement between intercitv rail corridors.

(3) Eightv percent (.I'eve" hundred sixty million dollars ($761i,O()O,()IIO)) of the amount authorized b v this section shall he alloca led upon appropriation "s sctjort}: in this section to eligible recipients, excel" intercity mil, as described ill subdivision tc) based upon a percentage amount calculated 10 incorporate 11/1 otthefotlowing:

(A) One-third ntthe eligible recipient ',I' percentage share ofstutrwidetrack miles.

(B) One-third o{ the eligible recipient's percentage share 0/ statewide annual vehicl« miles.

(e) Onr-thirtl o{ the eligible recipient :1' percentage share (if' statewide annual ("i.,·senger trips.

The Co/i/ill'lil" Trunsportution Commission shal! allocate tire availublc [unds 10 eligible recipients consistent with this section and shall develop guidelines 10 implement the requirements ofthis section.

Ih) For the PIOpO,"<,s otthis section. thefollowing terms haw thefollowing meanings,

tl ) "Track miles" means the miles oftrack used bv a public IIgellcy or joint powers authoritvtor reg 11111 I" pa,I'.v"nger rail service.

(2j "Vehicle miles" meull-' lire total miles traveled, commencing with pullout [rom the maintenance depot. bv all locomotives and clln opera led in a Ira in consist _fiJi' passenger rail service hy a public agenc\' or joint po Wei'S authoritv

(3) "Passenger trips ,. mewls the annual unlinked passenger hoardings reported bv a publi« agency or join! powers authoritv [ur regular passenger railservice.

(4) "Statewide" when used to modifyth« terms in subparagraphs (A), (B), and (Ci ofparagraph (3) of subdivision (a) means the com billed total in the slate ofthose amountsfor all ellgi"'e recipients.

(c) F./lgihle recipient: for [unsling under parugruph (31 ofsubdivision (u] s/rall be puhlic agellcies "nd j(;inl powers "ulhorilies Ih,,' "pemle regular/\' .,('h,.duled p'l.I'seng"'- rail service ill Ihl' fiJI/owing categories:

(I) ComJJlulermii.

(2) Ught rmI

(3) Heavy rail.

(4) Cable ('ar,

I d) F,md, al/o<'uled punllanllo liris SCCI iOllsha/! h,· 'iwd 10 I'uy of reimbll,,'e Ihe C(I.H,I' o(pmi"C/,I' 10 provide or improve conlleelivilv with the higlr-.I'peed Imill syslem 'Ii' for Ihe ,",'hahilitallon 0,. moderni:mion of or -,,(fi.'ly improvements 10, Irvcks Ulili:ed fiJi' puhlic jlu"senger mil sal"ice, signals, ,1'tnKlu,.e.l',jil('ililie", alld rolling srock,

(e) F.ligihl~ ,.eClj'I~III,," m"y lise Ihe funds fvr allY digihle rail eleme"t .I'el fOr/h in suhdivi.,hl!! (d).

(lJ In order /(J be eligih/l'/iJr/imdi"g under Ihi., seclion. on eligible IW'ipi,,"t lind",. puragraph (3) oj".I'ubdivi5ioll (a) shulll'J'/J)'ide mmchlngjimds in an a"'(lUlII nm less Ih,," Ihe lOla/ amount al/ociJled 10 Ihe rnipient u!!der Ilri,,' section,

IgJ An eligihle recipienl o{/illlding unda I'"mgmph (3) olmbdivisi(Jn (1<) ,"hall calif.i' Ihm il h".,· lIIel ils' marching jimd., requiremenl, und ,,1/ OIher n'quireJJJ~n/S (~(lhl.I' .I'eclioll, h,' re.l'ollliion 0/ ils gm'aning h(Jal"d, ,whjeu 10 wri/i<,<uion bl" Ihe CII/i/iJrnia Tran.vl'orlaliol! Com m I.I.,-ion ,

Ih) Funds mw/e <l\'!Iilabie 10 an digihle reCJjJlenl under paragraplr (3) or .I'uhdil-i"·i",, (a/ shall "upplemenl e.risling /(lc'al, .I'tale, or f"dewl rn'ellues helng used .fiJI' muinlellance or rehahi/il(l[ion nllhe p".,senger mil .ITslem, Eligihle rcl'il' I en/I' "/.ti(JJd'ng und,.r parlwwph (3j of subdil"i,I'I"" (a/ shall mainlain Iheir n:isling commitment '!llo("al, .I'tale, orf<'deral_limds _tiJr Ilre.,'e purpose,,· ill ord,.,. 10 remailleligibleliJl"allo(..IlIIon "nd "-'pendilure or,he ad"illona/jimding ",,,de amilable bv Ilris seclioll,

(i) In (I,.der /0 realve any a/locallon u"der Ihis seclion, an digihle I"eciplent ullder paragraph (3i (J{.whdivisioll (,,) sh,,1/ "nnu"ll" expend/i'om e,lisling locul, slale, orkdeml re "enlles beillg used_liJr Ihe maintenance or ,-e/",bi/il"lion (!rllr~ IJIl_I'seng,.r mil SI-S/em in an WllOUnt nOlless Ihallthe annu,,1 {J"eruge oj'

/ 2 Fat of Proposed Law

its expenditures from local "evelllwl' [or 11.0.1'1' purposes during lire NWi 'N, 1999-JO{)O, a/!{/20(J() ()I/r';c'" I yewI'

(jj Funds ~11!()(_'{1leJ pursuant '0 this section to the Southern Culiforniu ".

Regional Rail A II thoritv _fiJi' eligibt« projects within il.\' service area .\ hul! ;", apportioned each fiscal year ill accordance with 1I1"/II()/'IIII,hll"S or understanding 10 be executed between the Southern Calitorniu lIegimlal Roil A uth or ill' and its member og{'lIcie.\', The memnrundum or III cmorandums or understanding shall luke iJJIO account the passenger service need« O{IIr" Southern California Regional Rail A WI", ritv and ofth« member agcnci,» rev~n"e attributable 10 member Ilgem:ies, and separate contributions /0 11r<, Southern CalililJ'j,iu Regional Ru]! Authoritvfrom the member "g"lld,'s

Article 3_ Fiscal Provisions

_'704_IO_ (a) Bonds ill the 10/,11 amount u{ uin« billion nine hundred /i/I_I' million dollars ($'i.Y5(),IJOO.OOO), exclusive. '!I rejundini; bonds ,"'lIed III accordance with Section !704.IY, or so IIW(''' thereoia» is ",'cesslll'_l', ma_l' h,' issued and sold If} provide" iund to he used _lin' can:u'ug ou! the 1'111'1''' 1"'1' expressed ill this chapter and to h~ used 10 reimbur: e th« General OMiglllio" Bond Expense Revolving Fund P'O'SUII/il 10 Sec/ion 167::4_.1 ofth« Governmenl Code, The bonds, when sold, shul! b« Will ,'on.I'liIWe II valid and hlll<lilig ohligalion oithe State olCliliji"'nl,,, and Ihetid/lallh and crcdi: olth« Siose '" Catifornia is herebypledgedfor the punctual pavmcnt ,,{b,1/1I principal 0/: and interest on, the bond: liS th« principal and interest bccom« "lie and puvable.

(b) The Treasurer shall set! the bonds authorized bv the committee pursuant to thi» sectiun. The bonds .I'h,,11 he sold upon lire lerms and CO III/iliOlL" .'I"'('rji'"" in" resolution to be adopted bv Ih,. commiuee pursuant [(J ,',,,,,'io,, /IJ_731 of th« GO\'t'rnment Code.

2704, /1, ta) Except as provided ill subdivisum (h/, the bond« uuthorizci!

In this chapter shall he prepared. executed. issued, sold, puid, and redeemed as provided in the State General OhligaliOl' Bond La II', Chapter 4 1,'()l!In"'lIcllig with Section 167_'O) ofPart 3 ofDivision 4 (JJ nIle:: v{the (,'0 "enll1"'m Code, and r.J!I of the provisions O/t/WI law 111'1'/)' 10 lire bonds 011.1 to this chapterand are hereby incorporated II! this chapter as Ih""gh set [orth in [ull ill this chapter.

Ih/ .Notwith.l'ta"ding am' provision otthe State General Obligation 801,.1 La,,", each is-"ue or bonds authorized bv 11r~ committee ,'-/10/1 IW'--e a [inu! maturity of not more then 411yearsfrom the date oforiginal issuanc« thereo].

::7114.1::_ (a) Solelvtor the p""pos{' ofauthorizing lire i.I',I'lw""" and sal« o!, the bonds authorized hy this chapter lind the mak illg otthosc determ inution, and the laking ""oth,,,. actions as or!' authorizet! by II. is chapter. I'lirSIWI!1 /(J th« Stut« G"J!<'I'II/ Obliganon B()nd L<II1', llie H,gh-SIJ",.d PaS,I'{'llg,'r lim'" Finoncl' COllimillee i." herehy n'e"t"d_ I-iJr purpo.,,'., "{Ihis {'hapl,.,-, II." IlIgh'lINed Pa.l'se"ger hail! Finance COlllmillee is '''Ilre "ollllllille,'" a.I' Ihlllierm I." used in Ihe State General Obligalion H"I1I/ !.~W The comlllifl,'!' COllsi.'IS o,--Ih<' treasurer, Ihe {Jirector oiFInance, Ihe Conlml/cr, Ihe SeCl"t'Ian- "(H"-,,il1<,.I'.I', Trampurl<lliol1 and H'lIIsiJlg, a"d Ihe ciwirp(,l'.\'on 0/ Ihe (ml/Iol'il_\'. ,VO/wilh-,wnding ony OIher pro\'i-,i(Jn (J{I""" a",- m"mbel' "rllie' ",>mmil/"" ""'-1- desigllatl' I< representalil'<' IU aCI as Ihm m<'lIIhel' I" hi" orlr,.,. pl<Jn' lII!d sl<""</ ji>r all pwpO-\'e." 'I-" Ihough tire member were I'er,"'''a/I\' I're.l'<' II I. The lre".I'lo·,'r .,h,dlsen.'e "s clrairper.wJI "llhe ,.()mmi/l~e, A nwl"rin' ,,(Ihe ,'"mmille(' .lh,,1/ cmlslllwe a quorum o{lhe c"il/J/lilt~e, (md nw,- aCI_l;,r Ihe ""l1/llllille~.

(bj F"r l"o'{Joses ol/he Siale Generl<l Ohligat ion BOlld Lall'. Ihe "uli!oril,l' is desigllaled Ihe _, boa 1""- "

2 71J4, /.i, Ti,e COllllnillee shu/l delamille IVlwlher 01" 1101 il Is 1",,.e.l',"irl' or deslraNe 10 i,slIe bonds aUII)f!l'ized p"rsuant I" Ihi., Ch"l'ler ill o,.der 10 C((uy (1111 Ih,' Il/:t10 I!." specilied in Seclion.' 27(J4.0(' WIl/ )7()4, (Nj alld, If so, lire amOUlIl o{ b()llds 10 h"" issued Wid sold. ,'ill('('es,I'i\'e issues 0/ !>muh- "WI' /le Is,med ulld sold 10 earn' "III Iho,I',. ""lions prugrnsive/y, ami il is nOl 1"'"e,\.IWT Ihar all 'llhe honds mllhori;~d h,.' i.,-"ued IIml wid til anI' {)II<' lilll~. ['hI' COl1lm'-/f~e -"ha/l "onsider prugram _tilndil!g needs_ /,{'I'eJIIW l'/'Oi",'liol/.'·, /i'nanciaillwrku l.'o",IIlion.I'_ and allier lIec,'s.I'<I!T_!a{,lOn in d"le"lllinillg III<' lerm ,1iJr Ihe bOIld.,' I(J he i.,sued. h, "ddil iOIl 1(1 111/ olher 1'""-<'!',I' "I-"'"in""II_I' gmnted il! l/ri.' c/rapwr and Ihl' Slme (ieneral Obligillioli Bond I. a \1', Ihe C(llI/miflee may do 0/1 things lIecn.I'ar.I' or (,(III\-enieill I" Ulrl'_l' 011111", pO"'~".I' I/lid p"rl'(I,I',·.'.I' (!flhis arlief,., i'!<'/rulillg I/w "l'pJ'O)'al ,!/mll' ill</ellllll"<' ,'<'Ialillg to Ihe hondO', alld Ihe ddeglilim' o{nen'ssan d!lli"" 10 Ihe "huirl'<'!"\O" mI<l 10 tlr~ Treasur,.,- us agrnt_tor Ihe sale ,!/lh,. hondl, ..111.1' lerlll.l' o{um' hO/ld.,· i,I_W"d lIlIda Ihls ('ha/Jler may he provided Ulldei' (III il",,",,//(r<, illslead or 1Illd<'l' a resvlulioll, as de/ermined hy Ih" {'"mlllillee,

271J4, 14, Tlrere shill/ he (:"I/eued each _)'ew' and ill lire .I'am,. ''''''''Ier <111<1 althe _wme lime "". utlier SI<lIe I"('W'!lle 1-" ",,/lee led, ill addili""lo Ihe ordmun' re"elllleS o{the state, a sUm ill a'llImOIOiI required 10 I'm-lire prillcipul (Jf, und inleresl on. Ihe hOl!d.\' ea"h year, It i" lire dirt!" "{,,II "/fie'a,I' ,,'wrged by la\\'

TEXT OF,PRQ.POSED LAW

(PROPOSITION 1 A CONTINUED)

with allY duty ill rtgliJ'd to the collection of Ihe revenue 10 do and perform each and every act which is necessary to collect that additional sum.

2704.15. Notwithstanding Section 13340 of the Government Code, there is hereby appropriated from the General Fund in the State Tre'asury, for the purposes olthls chapter. an amount equal to the total ofthefollowing_. (a) that sum allnually necessary to pay the principal of, and interest on. bonds Iswed and sold pursuant to this chapter, as the principal and interest become d~ and . payable, and (b) the sum necessary to corry Qut Section 2704.17, approprillted without regard to fiscal years.

2704.16. The board may request the Pooled Money investment Board to make a loan from the Pooled Malley Investment Account, in accordance with Section 163/2 of the Government Code, for purposes of thi$ chapter. The amount of the 'request sluUl not exceed the amount of the" unsold bonds which the committee has. by resolution. authorized to be sold for the ptlrPose of this chapter, less anyamouI!t borrowed pursJjant to Sectioh 2701.17.' The board shall execute such documents as required by the Pooled Money Investment BO(lrd to obtalll and repay the loan. Any amount loaned shalt be deposited in the fund to be allocated by ihe board in accordance with this chapter.

2704.17. For the purpose of carrying out this chapter, ihe Director of Finance may authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of unsold bonds which have been authorized by the committee to be sold for the purpose of carrying out this chapter, less any amount borrowed pursuantto Section 2704.16. Any amount withdrawn shall be deposited in the fund. Any money made available under this section shall be returned to Ihe General Fund, plus the interest that the amounts would have earned in the Pooled Money Investment Account, from the sale of bonds for the purpose of carrying out this chapter,

2704.18, All money deposited ill the fond whiCh Is derived from premium an bondssaU1 shall be available to pay costs of issuing the honds, and to the .extentnot so needed, together with accrued interest derived from sale of the bonds, shall be available for transferto the General Fund as a credit to

expenditures for bond interest. '

. 2704.19. The bonds may be refonded in accordance with Article 6 (commencing with Section 16780) of the State General Obligation Bond Law. Approval by the electors of the state for the Issuance of bonds shall incllide approval of the Issuance of any bonds Issued to refund any honds originally issued or allY previously issued refUnding bonds; .

2704.20. The Legislature hereby finds and declares that, Inasmuch as rhe proceeds from the sale of bonds authorized by this chapter are IIOt ''proceeds of iaxes" as ,hal term is used ill Arttcle XlII B of the California Constitution, the disbursement of these proceeds is not subject to the limitations impOsed by

that article. '

2704.21. Notwithstanding' any pravlston of this chapter or the State General Obligation Bond Law. if the Treasurer sells bands pursuant to this chapter that inc/ude a bond counsel opinion to the effect that the interest on the bonds Is excludedfrom gross income for federal taxpurposes under designated coriditioll,s. the Treasurer may maintain separate accounts for the bond proceeds invested and the investmen( earnings on those proceeds. and may use or direct the use of those proceeds or earning,! to pay any rebate. penalty, or othtr payment required under foderal law. or take any, other aCtion wilh respect to the ill vestment and use of those bond proceeds, as may be required or desirable under federal law in order to lfIainMin the tax-exempl status of those bonds and to obtain allY other advantage under foderallaw all behalf of

the fonds of this state. .

Voter Registration Information

Registering to vote just takes a fewminutes and, thanks to the National Voter Registration Act· (NVRA)'Jou can easily find registration forms in many places throughout the state. The NVRA was passe by Congress and signed into law by President Clinton in 1993. Also known as the . "Motor Voter" law, the NVRA requires the Department of Motor Vehicles and many other government agencies to provide people the opportuniryto register to vote. To register to-vote you must be a U.S. citizen, a California resident, at least 18 yearsof age on Election Day, and not in prison

or on parole for the conviction of a felony. "

To request a voter registration foCQ1 or to find out if you are registered ~ vote, just callyour county elections office or the-Secretary of Statestoll-free Voter Hotline at 1-800-345-VOTE, or visit, www.sos.ca.gov. For more information on the NVRA and the Secretary ofState's efforts to assist state agencies and county elections officials in complying with it, go to www.sos.ca.govlelectionsl .

Text of PropoJtd Law 13

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