2010 California Code
Government Code
Article 5. Intercity Rail Agreements

14070.  As used in this article, the following terms have the
following meanings:
   (a) "Board" or "joint powers board" means the governing board of a
joint exercise of powers agency established pursuant to Article 5.2
(commencing with Section 14072), Article 5.4 (commencing with Section
14074), or Article 5.6 (commencing with Section 14076) for the
purpose of assuming administrative responsibility for intercity
passenger rail service within the respective corridor.
   (b) "Secretary" means the Secretary of the Business,
Transportation and Housing Agency.



14070.2.  (a) If authorized by the secretary, the department may,
through an interagency agreement, transfer to a joint powers board,
and the board may assume, all responsibility for administering
passenger rail service in the corridor. Upon the date specified in
the agreement, the board shall succeed to the department's powers and
duties relative to that service, except that the department shall
retain responsibility for developing budget requests for the service
through the state budget process, which shall be developed in
consultation with the board, and for coordinating service in the
corridor with other passenger rail services in the state.
   (b) The interagency agreement shall be executed on or before
December 31, 1996.
   (c) The secretary shall require the board to demonstrate the
ability to meet the performance standards established by the
secretary pursuant to subdivision (f) of Section 14031.8.



14070.4.  (a) An interagency transfer agreement between the
department and a joint powers board, when approved by the secretary,
shall do all of the following:
   (1) Specify the date and conditions for the transfer of
responsibilities and identify the annual level of funding and ensure
that the level of funding is consistent with and sufficient for the
planned service improvements within the corridor.
   (2) Identify, for the initial year and subsequent years, the funds
to be transferred to the board including state operating subsidies
made available for intercity rail services in the corridor, and funds
currently used by the department for administration and marketing of
the corridor, with the amounts adjusted annually for inflation and
in accordance with the business plan.
   (3) Specify the level of service to be provided, the respective
responsibilities of the board and the department, the methods that
the department will use to assure the coordination of services with
other rail passenger services in the state, and the methods that the
department will use for the annual review of the business plan and
annual proposals on funding and appropriations.
   (4) Describe the terms for transferring to the joint exercise of
powers agency car and locomotive train sets, and other equipment and
property owned by the department and required for the intercity
service in the corridor including, but not limited to, the number of
units to be provided, liability coverage, maintenance and warranty
responsibilities, and indemnification issues.
   (5) Describe auditing responsibilities and process requirements,
reimbursement and billing procedures, the responsibility for funding
shortfalls, if any, during the course of each fiscal year, an
operating contract oversight review process, performance standards
and reporting procedures, the level of rail infrastructure
maintenance, and other relevant monitoring procedures. The
description shall contain an evaluation of the impact of any transfer
of equipment on other intercity corridors. The agreement shall
endeavor to minimize the impact and maximize the efficient use of the
equipment, including continued joint use of equipment that is
currently shared by one or more corridors.
   (b) Use of the annual state funding allocation, as set forth in
the interagency transfer agreement, shall be described in an annual
business plan submitted by the board to the secretary for review and
recommendation by April 1 of each year. The business plan, when
approved by the secretary, shall be deemed accepted by the state. The
budget proposal developed by the department for the subsequent year
shall be based upon the business plan approved by the secretary. The
business plan shall be consistent with the interagency agreement and
shall include a report on the recent as well as historical
performance of the corridor service, an overall operating plan
including proposed service enhancement to increase ridership and
provide for increased traveler demands in the corridor for the
upcoming year, short-term and long-term capitol improvement programs,
funding requirements for the upcoming fiscal year, and an action
plan with specific performance goals and objectives. The business
plan shall document service improvements to provide the planned level
of service, inclusion of operating plans to serve peak period work
trips, and consideration of other service expansions and
enhancements. The plan shall clearly delineate how funding and
accounting for state-sponsored rail passenger services shall be
separate from locally sponsored services in the corridor. Proposals
to expand or modify passenger services shall be accompanied by the
identification of all associated costs and ridership projections. The
business plan shall establish, among other things: fares, operating
strategies, capital improvements needed, and marketing and
operational strategies designed to meet performance standards
established in the interagency agreement.
   (c) Based on the annual business plan and the subsequent
appropriation by the Legislature, the secretary shall allocate state
funds on an annual basis to the board. As provided in the interagency
agreement, any additional funds that are required to operate the
passenger rail service during the fiscal year shall be provided by
the board from jurisdictions that receive service. In addition, the
board may use any cost savings or farebox revenues to provide service
improvements related to intercity service. In any event, the board
shall report the fiscal results of the previous year's operations as
part of the annual business plan.
   (d) The level of service funded by the state shall in no case be
less than the current number of intercity round trips operated in a
corridor and serving the end points currently served by the intercity
rail corridor. Subject to Section 14035.2, the level of service
funded by the state shall also include feeder bus service with
substantially the same number of route miles as the current feeder
system, to be operated in conjunction with the trains. However, the
interagency agreement shall not prohibit the joint powers board from
reducing the number of feeder bus route miles if the joint powers
board determines that a feeder bus route is not cost effective as
provided in Section 14035.2.
   (e) Nothing in this article shall be construed to preclude
expansion of state-approved intercity rail service.




14070.6.  The department and any entity that assumes administrative
responsibility for passenger rail services through an interagency
transfer agreement, may, through a competitive solicitation process,
contract with the National Railroad Passenger Corporation (Amtrak) or
with organizations not precluded by state or federal law to provide
passenger rail services, and may contract with rail corporations and
other rail operators for the use of tracks and other facilities and
for the provision of passenger services on terms and conditions as
the parties may agree. The department is deemed to be a third-party
beneficiary of the contract, and the contract shall not contain any
provision or condition that would negatively impact on or conflict
with any other contracts the department has regarding intercity rail
services. Any entity that succeeds the department as sponsor of
state-supported passenger rail services through an interagency
transfer agreement, is deemed an agency of the state for all purposes
related to passenger rail services, including Section 1614 of Title
49 of the United States Code.