SB 1371: High-speed rail bond: Letters of no prejudice

No. of Jobs

Allows the expedited start of up to 14,250 construction jobs

Category

Invest state and federal funds to create jobs

Proposal

This bill authorizes the California Transportation Commission (CTC) to issue a letter of no prejudice (LONP) for projects funded by $950 million from Prop 1A. Local governments can then begin construction on transit and other rail related projects in advance of the state authorizing bond monies to cover construction costs.

Summary

Proposition 1A: The Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century

In November 2008, voters approved the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, also known as Proposition 1A, to authorize the issuance of $9.95 billion of general obligation bonds to establish high-speed train service linking Southern California, the Sacramento-San Joaquin Valley, and the San Francisco Bay Area. Of that amount, Proposition 1A makes $950 million available, for allocation by the CTC, for projects that provide or improve connectivity of intercity, commuter, and urban rail systems with the high-speed train system or that provide for the rehabilitation or modernization of or safety improvements to tracks utilized for public passenger rail service, signals, structures, facilities, or rolling stock.

This bill authorizes CTC to issue LONPs for intercity, commuter and urban rail projects authorized by Proposition 1A in a manner consistent with previous state practice.

Read the Bill