Transportation bonds.

Article XVI of the California Constitution requires a general obligation bond act to specify the single object or work to be funded by the bonds, and further requires a bond act to be approved by a 23 vote of each house of the Legislature and by a majority of the voters. Article XVI authorizes the Legislature, at any time after the approval of a general obligation bond act by the voters, to reduce the amount of the indebtedness authorized by the act to an amount not less than the amount contracted at the time of the reduction or to repeal the act if no debt has been contracted. Existing law, pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, approved by the voters as Proposition 1A at the November 4, 2008, statewide general election, provides for the issuance of $9.95 billion in general obligation bonds for high-speed rail and related rail purposes. Existing law creates the High-Speed Rail Authority with specified powers and duties related to the development and implementation of a high-speed train system. This bill would provide that no further bonds shall be sold for high-speed rail and related rail purposes pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century. The bill would amend the bond act to authorize redirection of the net proceeds received from outstanding bonds issued and sold prior to the effective date of this act, upon appropriation by the Legislature, from those high-speed rail purposes to retiring the debt incurred from the issuance and sale of those outstanding bonds. This bill would provide that, pursuant to Article XVI of the California Constitution, these provisions shall become effective only upon approval by the voters at the next statewide general election. This bill would declare that it is to take effect immediately as an urgency statute.