SB 445: High-speed rail: third-party agreements, permits, and approvals: regulations.

The California High-Speed Rail Act creates the High-Speed Rail Authority (authority) to develop and implement a high-speed rail system in the state, with specified powers and duties, including the power to enter into contracts, relocate highways and utilities, and enter into cooperative or joint development agreements with local governments or private entities, as specified. The act establishes legal procedures for the relocation of publicly and privately owned utility facilities, as defined, when the authority requires any utility to remove any utility facility lawfully maintained in the right-of-way of any high-speed rail property to a location entirely outside the high-speed rail property right-of-way subject to specified conditions. The act authorizes the authority and any utility to enter into a specified agreement or contract to remove or relocate any utility facility that provides for, among other things, the respective amounts of the cost to be borne by each party or that apportions the obligations and costs of each party.

Existing law creates the High-Speed Rail Authority Office of the Inspector General (office) and authorizes the High-Speed Rail Authority Inspector General (inspector general) to initiate an audit or review regarding oversight related to delivery of the high-speed rail project undertaken by the authority and the selection and oversight of contractors related to that project. Existing law requires the inspector general to submit annual reports to the Legislature and Governor regarding its findings.

This bill would require the authority, on or before January July 1, 2026, to develop and adopt regulations setting forth requirements governing third-party local agency permits and approvals that are necessary to deliver the high-speed rail project. The bill would require the authority to ensure that the regulations, among other things, identify the circumstances under which the authority would be required to seek to enter into a cooperative agreement with a third party, which the bill would define as a local agency or utility, that that, where relevant, identifies who is responsible for specific utility relocations and the costs associated with those relocations. The actions, as specified.

This bill would require the authority to consult with specified entities in developing the internal rules and regulations and would require the authority to hold at least 2 public hearings regarding the proposed internal rules and regulations.

This bill would prohibit the authority from implementing these regulations unless it completes delay the operation of these internal rules and regulations until the office determines that the authority has completed the development and implementation of a process to review third-party agreements in a timely manner as recommended by the office, as specified. The bill would require the office, beginning one year after the operative date of the internal rules and regulations, to conduct a review of the effectiveness of those rules and regulations and to make recommendations for their improvement. The bill would require the office, when it determines that the high-speed rail project is complete, to submit a report to the Legislature informing the Legislature of that fact. The bill would make the requirement to adopt these internal rules and regulations inoperative on the date that the office submits that report to the Legislature.

This bill would declare its provisions to be severable.

To the extent this bill imposes additional duties on local entities, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.