AMENDED IN SENATE APRIL 6, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

98

Introduced by Senator Blakespear

February 17, 2026

An act to amend Sections 14070.2 14070, 14070.2, and 14070.4 of the Government Code, and to amend Section 99312.3 of add Section 99174 to the Public Utilities Code, relating to transportation.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: yes

LEGISLATIVE COUNSEL’S DIGEST

Existing law requires revenues attributable to a certain portion of the sales tax on diesel fuel to be continuously appropriated to the Transportation Agency under a program commonly known as the State Rail Assistance Program for allocation to public agencies responsible for state-supported intercity rail services, and public agencies responsible for commuter rail services, to be used for operations and capital improvements. sets forth various provisions applicable to all public transit and transit districts and includes specific requirements applicable to public entities that operate commuter rail or rail transit systems.

This bill would require, as a condition of receiving funding under the program, a public agency responsible for commuter rail services that has a transfer connection station between 2 or more commuter rail services to adopt a special events service plan for each event that meets specified requirements. The bill would require the special events service plan to include schedules to access the event without requiring a transfer, ticket interoperability, and all other technical, equipment, and infrastructure requirements. require, on or before July 1, 2027, a regional rail operator, as defined, operating within an intercity rail corridor to ensure that its fare systems are fully integrated with the fare systems of the intercity rail operator, and any other regional rail operator, operating in the intercity rail corridor. By imposing additional duties on regional rail operators, the bill would impose a state-mandated local program.

Existing law authorizes the Department of Transportation, subject to approval of the Secretary of Transportation, to enter into an interagency transfer agreement under which a joint powers board assumes responsibility for administering the state-funded intercity rail service in a particular corridor. Existing law provides for the allocation of state funds by the secretary to a joint powers board under an interagency transfer agreement based on an annual business plan for the intercity rail corridor and subsequent appropriation of state funds. Existing law requires the joint powers board to submit the annual business plan to the secretary for review and recommendation by April 1 of each year.

This bill would require an interagency transfer agreement to require a joint powers board to ensure that supplemental service is provided for major, publicly attended service planning is provided for special events, as specified. defined. The bill would require require, commencing with the 2027–28 fiscal year, the business plan to include a special events service plan that includes detailed operating schedules, fare information, and rolling stock requirements designed to satisfy the requirement to provide that supplemental service. establishes, among other things, an intercity rail operating schedule for special events and fare system integration between the intercity rail operator and regional rail operators. To the extent that the bill would add to the duties of a joint powers board, 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

The people of the State of California do enact as follows:

SECTION 1.

Section 14070 of the Government Code is amended to read:

14070.

As used in this article, the following terms have the following meanings: definitions apply:

(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.

(c) “Secretary” means the Secretary of Transportation.

SECTION 1.SEC. 2.

Section 14070.2 of the Government Code is amended to read:

14070.2.

(a) If authorized by the secretary, the department may, through an interagency transfer agreement, transfer to a joint powers board, and the board may assume, all responsibility for administering intercity passenger rail service in the corridor, including associated feeder bus service. 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, consistent with the annual business plan as approved by the secretary 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 intercity passenger rail services in the state.

(b) An interagency transfer agreement may be executed on or after June 30, 2014, but not later than June 30, 2015, subject to negotiation and approval by the state and the board. The interagency transfer agreement between the department and the board shall cover the initial three-year period after the transfer, but may be extended thereafter by mutual agreement. If an interagency agreement is not entered into on or before June 30, 2015, the secretary shall provide a report to the Governor and the Legislature on or before June 30, 2016, explaining why an acceptable agreement has not been developed, with specific recommendations for developing an acceptable interagency agreement.

(c) An interagency transfer agreement approved pursuant to this article shall require the board to ensure that supplemental service is provided for major, publicly attended events that are expected to attract increased ridership and are held within one mile of a passenger rail station served by state-supported intercity rail services. service planning is provided for special events.

(d) 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.

SEC. 2.SEC. 3.

Section 14070.4 of the Government Code is amended to read:

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 for the initial three years following the transfer 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 ensure the coordination of services with other rail passenger and feeder bus 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 of use by the board of 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.

(b) (1) 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.

(2) 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.

(3) The business plan shall be consistent with the interagency agreement and shall do all of the following:

(A) Include a report on the recent and historical performance of the corridor service, an overall operating plan including proposed service enhancements to increase ridership and provide for increased traveler demands in the corridor for the upcoming year, short-term and long-term capital improvement programs, funding requirements for the upcoming fiscal year, and an action plan with specific performance goals and objectives.

(B) 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.

(C) Clearly delineate how funding and accounting for state-sponsored intercity 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.

(D) Establish, among other things, fares, operating strategies, capital improvements needed, and marketing and operational strategies designed to meet performance standards established in the interagency transfer agreement.

(E) Include Commencing with the 2027–28 fiscal year, include a special events service plan that includes detailed operating schedules, fare information, and rolling stock requirements is designed to satisfy the requirement set forth in subdivision (c) of Section 14070.2. 14070.2 and that establishes all of the following:

(4) The initial business plan shall be consistent with the immediately previous State Rail Plan developed by the department pursuant to Section 14036 and the January 2014 business plan developed by the High-Speed Rail Authority pursuant to Section 185033 of the Public Utilities Code. Subsequent business plans shall be consistent with the immediately previous plans developed by the department and the authority.

(5) The department may also request the information described in subparagraph (E) of paragraph (3) from the board to be submitted as an amendment to a previously adopted business plan.

(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 needed 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. 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 during the first three years following the effective date of the interagency transfer agreement shall in no case be less than the number of intercity round trips operated in a corridor and serving the end points served by the intercity rail corridor as of the effective date of the interagency transfer agreement. 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. For that same three-year period, the board shall continue to provide at least the same level of intercity rail and feeder bus services as were in operation on the effective date of the interagency transfer agreement, except that the interagency agreement shall not prohibit the board from reducing the number of feeder bus route miles if the board determines that a feeder bus route is not cost effective as provided in Section 14035.2.

(e) This article shall not be construed as precluding expansion of state-approved intercity rail service.

(f) Local resources may be available to offset any redirection, elimination, reduction, or reclassification by the state of state resources for operating intercity rail services identified in subdivision (b) only if the local resources are dedicated by a vote of the local agency providing the funds, with the concurrence of the board.

SEC. 4.

Section 99174 is added to the Public Utilities Code, to read:

SEC. 4.SEC. 5.

If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.