AB 1678

AB1678:v98#DOCUMENT

Bill Start

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill

No. 1678

An act to amend Section 701 of the Public Utilities Code, relating to public utilities. An act to amend Sections 132400, 132410, 132415, and 132450 of, and to add Chapter 6.5 (commencing with Section 132500) to Division 12.7 of, the Public Utilities Code, relating to transportation.

LEGISLATIVE COUNSEL'S DIGEST

AB 1678, as amended, Harabedian. Public utilities. Claremontclair Authority: Metro A Line Extension project.

Existing law creates the Metro Gold Line Foothill Extension Construction Authority for purposes of awarding and overseeing all design and construction contracts for completion of a light rail project extending from Union Station in the City of Los Angeles to Sierra Madre Villa Boulevard in the City of Pasadena and any mass transit guideway that may be planned along the rail right-of-way extending to the City of Montclair in the County of San Bernardino, as provided.This bill would reduce the scope of the light rail project overseen by the Metro Gold Line Foothill Extension Construction Authority by instead providing that the project extends to any mass transit guideway that may be planned along the rail right-of-way to the City of Claremont in the County of Los Angeles.This bill would instead require the Claremontclair Authority (authority), which the bill would create, to award and oversee all design and construction contracts for completion of a light rail project extending from and including the rail tracks located to the east of the Claremont light rail station to be constructed by the Metro Gold Line Foothill Extension Construction Authority and continuing to the Montclair Transit Center in the City of Montclair in the County of San Bernardino. The bill would grant the authority all the powers necessary for completion of the project, as provided. The bill would require the authority to conduct financial studies and planning and engineering necessary for completion of the project and to make reasonable progress in the design and construction of the project. The bill would require the authority to be dissolved upon completion of project construction. The bill would also make conforming changes.This bill would require the authority to be governed by a board of 5 voting members and one nonvoting member, with the city councils of the Cities of Claremont and Montclair, the Los Angeles County Metropolitan Transportation Authority (LACMTA), the president of the board of directors of the San Bernardino County Transportation Authority (SBCTA), and the County of San Bernardino Board of Supervisors each appointing one voting member and the Governor appointing the nonvoting member. The bill would authorize the board to appoint an executive director and authorize the executive director to appoint staff or retain consultants as necessary to carry out the duties of the authority.This bill would require LACMTA and SBCTA to enter into an agreement with the authority to grant to the authority or hold in trust with the authority all real property and real property rights, and other assets, as necessary for the completion of the project. The bill would also require LACMTA and the authority to enter into a memorandum of understanding that specifically addresses the ability of LACMTA to review any significant changes in the scope of the design or construction, or both the design and construction, of the project. The bill would require LACMTA to assume responsibility for operating all completed phases of the project, with operation of certain portions of the project being contingent upon LACMTA entering into an operations and maintenance agreement with SBCTA, as provided.By imposing new duties on local agencies, this 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.

Existing law authorizes the Public Utilities Commission to supervise and regulate every public utility in the state, as specified.

This bill would make nonsubstantive changes to that authorization.

Digest Key

Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NOYES

Bill Text

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

SECTION 1.

Section 132400 of the Public Utilities Code is amended to read:

132400.

For purposes of this chapter, the following terms have the following meanings: definitions apply:

(a) The “authority” is “Authority” means the Metro Gold Line Foothill Extension Construction Authority created under this chapter, formerly known as the Pasadena Metro Blue Line Construction Authority.

(b) The “board” is “Board” means the governing board of the authority.

(c) The “commission” is “Commission” means the California Transportation Commission.

(d) “Extension cities” means the Cities of Arcadia, Monrovia, Duarte, Irwindale, Azusa, Glendora, San Dimas, La Verne, Pomona, and Claremont.

(d)The “LACMTA” is

(e) “LACMTA” means the Los Angeles County Metropolitan Transportation Authority.

(e)The “project” is

(f) “Project” means the Los Angeles-Pasadena Foothill Extension Gold Line light rail project, formerly known as the Los Angeles-Pasadena Metro Blue Line, extending from Union Station in the City of Los Angeles to Sierra Madre Villa Boulevard in the City of Pasadena and any mass transit guideway that may be planned east of Sierra Madre Villa Boulevard along the rail right-of-way extending to the City of Montclair. Claremont.

(f)The “extension cities” are the Cities of Arcadia, Monrovia, Duarte, Irwindale, Azusa, Glendora, San Dimas, La Verne, Pomona, Claremont, and Montclair.

SEC. 2.

Section 132410 of the Public Utilities Code is amended to read:

132410.

(a) The authority has all of the powers necessary for planning, acquiring, leasing, developing, jointly developing, owning, controlling, using, jointly using, disposing of, designing, procuring, and building the project, including, but not limited to, all of the following:

(1) Acceptance of grants, fees, allocations, and transfers of funds from federal, state, and local agencies, as well as agencies and from private entities.

(2) Acquiring, through purchase or through eminent domain proceedings, any property necessary for, incidental to, or convenient for, the exercise of the powers of the authority.

(3) Incurring indebtedness, secured by pledges of revenue available for project completion.

(4) Contracting with public and private entities for the planning, design, and construction of the project. These contracts may be assigned separately or may be combined to include any or all tasks necessary for completion of the project.

(5) Entering into cooperative or joint development agreements with local governments or private entities. These agreements may be entered into for the purpose of sharing costs, selling or leasing land, air, or development rights, providing for the transferring of passengers, making pooling arrangements, or for any other purpose that is necessary for, incidental to, or convenient for the full exercise of the powers granted the authority. For purposes of this paragraph, “joint development” includes, but is not limited to, an agreement with any person, firm, corporation, association, or organization for the operation of facilities or development of projects adjacent to, or physically or functionally related to, the project.

(6) Relocation of utilities, as necessary for completion of the project.

(b) The duties of the authority include, but are not limited to, all of the following:

(1) Conducting the financial studies and the planning and engineering necessary for completion of the project.

(2) (A) Adoption of an administrative code, not later than 60 days after establishment of the authority, for administration of the authority in accordance with any applicable laws, including, but not limited to, the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), the provisions of this chapter, laws generally applicable to local agency procurements and contracts, laws relating to contracting goals for minority and women business participation, and the Political Reform Act of 1974 (Title 9 (commencing with Section 81000) of the Government Code).

(B) (i) The administrative code adopted under subparagraph (A) shall include a code of conduct for employees and board members that is consistent with Sections 84308 and 87103 of the Government Code and prohibits board members and staff from accepting gifts valued at ten dollars ($10) or more from contractors, potential contractors, or their subcontractors.

(ii) The code shall require the disclosure, on the record, of the proceedings by the officer of the agency who receives a contribution within the preceding 24 months in an amount of more than two hundred fifty dollars ($250) from a party or participant to a proceeding, and the disclosure by the party or participant.

(iii) The code shall provide that no officer of the agency shall make, participate in making, or in any way attempt to use his or her their official position to influence the decision in a proceeding, as described in Section 84308 of the Government Code, if the officer has willfully or knowingly received a contribution in the amount of more than two hundred fifty dollars ($250) within the preceding 24 months from a party or his or her the party’s agent, or from any participant or his or her participant’s agent if the participant has a financial interest in the decision.

(iv) Any officer deemed ineligible to participate in a proceeding due to the provisions of this code of conduct may be replaced for the purposes of that proceeding by an appointee chosen by the appropriate appointing authority.

(v) Under the code of conduct, board members shall be deemed to have a financial interest in a decision within the meaning of Section 87100 of the Government Code if the decision involves the donor of, or intermediary or agent for a donor of, a gift or gifts aggregating ten dollars ($10) or more in value within the 12 months prior to before the time the decision was made.

(vi) Board members and alternate members shall not be considered financially interested, under or for the purposes of Section 1090 of the Government Code, solely by virtue of their holding office with the authority and, concurrently, holding office with an entity set forth in subdivision (a) of Section 132415, an extension city, or both such an entity and such a city, the board of the Claremontclair Authority created pursuant to Chapter 6.5 (commencing with Section 132500), or any combination thereof, and they may participate in decisions and agreements regarding the authority, any of the entities set forth in subdivision (a) of Section 132415, and any of the extension cities. cities, and the board of the Claremontclair Authority created pursuant to Chapter 6.5 (commencing with Section 132500). The participation described in this clause shall not constitute a conflict of interest under or for the purposes of Section 1090 of the Government Code, or an incompatible employment, activity, or enterprise under or for the purposes of Section 1126 of the Government Code.

(c) The authority shall make reasonable progress, as determined by the commission, in the design and construction of the project within the timetable imposed under the 1998 State Transportation Improvement Program.

SEC. 3.

Section 132415 of the Public Utilities Code is amended to read:

132415.

(a) The authority shall be governed by a board consisting of five voting members and four nonvoting members who shall be appointed as follows:

(1) Three members shall be appointed by the City Councils of the Cities of Los Angeles, Pasadena, and South Pasadena, with each city council appointing one member by a majority vote of the membership of that city council.

(2) One member shall be appointed by the President of the Governing Board of the San Gabriel Valley Council of Governments, subject to confirmation by that board.

(3) One member shall be appointed by the LACMTA.

(4) One nonvoting member shall be appointed by the Governor.

(5) Two nonvoting members shall be appointed by the City Councils of the Cities of Pasadena and South Pasadena, with each city appointing one nonvoting member.

(6) One nonvoting member shall be appointed by the president of the board of directors of the San Bernardino Associated Governments, County Transportation Authority, subject to confirmation by that board.

(b) All members shall serve a term of not more than four years, with no limit on the number of terms that may be served by any person.

(c) Each appointing authority shall also appoint an alternate member to serve in a member’s absence. If the position of a voting member becomes vacant, the alternate member shall serve until the position is filled as required pursuant to subdivision (a).

(d) Members of the board are subject to the Political Reform Act of 1974 (Title 9 (commencing with Section 81000) of the Government Code).

(e) Three members of the board shall constitute a quorum.

(f) The board shall elect a chairperson and vice chairperson from among the membership of the board.

(g) Each member of the board may be compensated at a rate of not more than one hundred fifty dollars ($150) per day spent attending to the business of the authority. Compensation, if paid, shall not exceed six hundred dollars ($600) per month, plus expenses directly related to the performance of duties imposed by the authority, including, but not limited to, travel and personal expenses.

(h) Members appointed to the board may include members of the entities set forth in subdivision (a), and members of the city councils or other elected officials of the extension cities, or both. members of the board of the Claremontclair Authority created pursuant to Chapter 6.5 (commencing with Section 132500), or any combination thereof. The simultaneous membership described in this subdivision shall not constitute a violation of Section 1099 or 1126 of the Government Code.

SEC. 4.

Section 132450 of the Public Utilities Code is amended to read:

132450.

(a) (1) The LACMTA shall assume responsibility for operating all completed phases of the project.

(2)Subject to subparagraph (A), the LACMTA shall have the authority to operate the portion of the project located in the County of San Bernardino, which extends approximately one-half mile from the Los Angeles and San Bernardino County line to the Montclair Transit Center.

(A)With respect to the portion of the project on the right-of-way owned by the San Bernardino Associated Governments, the LACMTA’s authority to operate the project shall be contingent upon the approval of the board of directors of the San Bernardino Associated Governments, acting as the county transportation commission, through approval of an operations and maintenance agreement with the LACMTA.

(B)The operations and maintenance agreement shall provide that the San Bernardino Associated Governments reimburse the LACMTA for the costs of operating that portion of the line located in the County of San Bernardino.

(C)Prior to the commencement of construction of the portion of the project in the County of San Bernardino, the authority shall enter into a construction agreement with the San Bernardino Associated Governments, acting as the county transportation commission.

(3)

(2) Nothing in this section shall be construed to require the LACMTA to allocate funds to the project beyond funds that have been allocated as of January 1, 2012.

(b) The authority shall be dissolved when project construction has been completed.

SEC. 5.

Chapter 6.5 (commencing with Section 132500) is added to Division 12.7 of the Public Utilities Code, to read:

CHAPTER 6.5. Claremontclair Authority132500. For purposes of this chapter, the following definitions apply:(a) “Authority” means the Claremontclair Authority created under this chapter.(b) “Board” means the governing board of the authority.(c) “Commission” means the California Transportation Commission.(d) “Extension cities” has the same meaning as that term is defined in Section 132400.(e) “LACMTA” means the Los Angeles County Metropolitan Transportation Authority. (f) “Project” means the Metro A Line Extension project, formerly a component of the Los Angeles-Pasadena Foothill Extension Gold Line light rail project described in Chapter 6 (commencing with Section 132400), extending from and including the rail tracks located to the east of the Claremont light rail station to be constructed by the Metro Gold Line Foothill Extension Construction Authority created pursuant to Chapter 6 (commencing with Section 132400) and continuing to the Montclair Transit Center in the City of Montclair.(g) “SBCTA” means the San Bernardino County Transportation Authority.132501. The Claremontclair Authority is hereby created for the purpose of awarding and overseeing all design and construction contracts for completion of the project.132502. (a) The authority has all of the powers necessary for planning, acquiring, leasing, developing, jointly developing, owning, controlling, using, jointly using, disposing of, designing, procuring, and building the project, including, but not limited to, all of the following: (1) Acceptance of grants, fees, allocations, and transfers of funds from federal, state, and local agencies and from private entities. (2) Acquiring, through purchase or through eminent domain proceedings, any property necessary for, incidental to, or convenient for the exercise of the powers of the authority. (3) Incurring indebtedness, secured by pledges of revenue available for project completion. (4) Contracting with public and private entities for the planning, design, and construction of the project. These contracts may be assigned separately or may be combined to include any or all tasks necessary for completion of the project. (5) Entering into cooperative or joint development agreements with local governments or private entities. These agreements may be entered into for the purpose of sharing costs, selling or leasing land, air, or development rights, providing for the transferring of passengers, making pooling arrangements, or for any other purpose that is necessary for, incidental to, or convenient for the full exercise of the powers granted the authority. For purposes of this paragraph, “joint development” includes, but is not limited to, an agreement with any person, firm, corporation, association, or organization for the operation of facilities or development of projects adjacent to, or physically or functionally related to, the project.(6) Relocation of utilities, as necessary for completion of the project. (b) The duties of the authority include, but are not limited to, all of the following: (1) Conducting the financial studies and the planning and engineering necessary for completion of the project. (2) (A) Adoption of an administrative code, not later than 60 days after establishment of the authority, for administration of the authority in accordance with any applicable laws, including, but not limited to, the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), this chapter, laws generally applicable to local agency procurements and contracts, laws relating to contracting goals for minority and women business participation, and the Political Reform Act of 1974 (Title 9 (commencing with Section 81000) of the Government Code). (B) (i) The administrative code adopted under subparagraph (A) shall include a code of conduct for employees and board members that is consistent with Sections 84308 and 87103 of the Government Code and prohibits board members and staff from accepting gifts valued at ten dollars ($10) or more from contractors, potential contractors, or their subcontractors. (ii) The code shall require the disclosure, on the record, of the proceedings by the officer of the agency who receives a contribution within the preceding 24 months in an amount of more than two hundred fifty dollars ($250) from a party or participant to a proceeding, and the disclosure by the party or participant. (iii) The code shall provide that no officer of the agency shall make, participate in making, or in any way attempt to use the officer’s official position to influence the decision in a proceeding, as described in Section 84308 of the Government Code, if the officer has willfully or knowingly received a contribution in the amount of more than two hundred fifty dollars ($250) within the preceding 24 months from a party or the party’s agent, or from any participant or the participant’s agent if the participant has a financial interest in the decision. (iv) Any officer deemed ineligible to participate in a proceeding due to the code of conduct may be replaced for the purposes of that proceeding by an appointee chosen by the appropriate appointing authority. (v) Under the code of conduct, board members shall be deemed to have a financial interest in a decision within the meaning of Section 87100 of the Government Code if the decision involves the donor of, or intermediary or agent for a donor of, a gift or gifts aggregating ten dollars ($10) or more in value within the 12 months before the time the decision was made.(vi) Board members and alternate members shall not be considered financially interested, under or for the purposes of Section 1090 of the Government Code, solely by virtue of their holding office with the authority and, concurrently, holding office with an entity set forth in subdivision (a) of Section 132503, an extension city, the Metro Gold Line Foothill Extension Construction Authority created pursuant to Chapter 6 (commencing with Section 132400), or any combination thereof, and they may participate in decisions and agreements regarding the authority, any of the entities set forth in subdivision (a) of Section 132503, any of the extension cities, and the Metro Gold Line Foothill Extension Construction Authority created pursuant to Chapter 6 (commencing with Section 132400). The participation described in this clause shall not constitute a conflict of interest under or for purposes of Section 1090 of the Government Code, or an incompatible employment, activity, or enterprise under or for purposes of Section 1126 of the Government Code. (c) The authority shall make reasonable progress, as determined by the commission, in the design and construction of the project. 132503. (a) The authority shall be governed by a board consisting of five voting members and one nonvoting member who shall be appointed as follows:(1) Two members shall be appointed by the city councils of the Cities of Claremont and Montclair, with each city council appointing one member by a majority vote of the membership of that city council.(2) One member shall be appointed by the LACMTA.(3) One member shall be appointed by the president of the board of directors of the SBCTA, subject to confirmation by that board.(4) One member shall be the member of the County of San Bernardino Board of Supervisors whose district includes the City of Montclair.(5) One nonvoting member shall be appointed by the Governor.(b) All members shall serve a term of not more than four years, with no limit on the number of terms that may be served by any person.(c) Each appointing authority shall also appoint an alternate member to serve in a member’s absence. If the position of a voting member becomes vacant, the alternate member shall serve until the position is filled as required pursuant to subdivision (a). (d) Members of the board are subject to the Political Reform Act of 1974 (Title 9 (commencing with Section 81000) of the Government Code).(e) Three members of the board shall constitute a quorum.(f) The board shall elect a chairperson and vice chairperson from among the membership of the board.(g) Each member of the board may be compensated at a rate of not more than one hundred fifty dollars ($150) per day spent attending to the business of the authority. Compensation, if paid, shall not exceed six hundred dollars ($600) per month, plus expenses directly related to the performance of duties imposed by the authority, including, but not limited to, travel and personal expenses.(h) Members appointed to the board may include members of the entities set forth in subdivision (a), members of the Metro Gold Line Foothill Extension Construction Authority created pursuant to Chapter 6 (commencing with Section 132400), members of the city councils or other elected officials of the extension cities, or any combination thereof. The simultaneous membership described in this subdivision shall not constitute a violation of Section 1099 or 1126 of the Government Code.132504. (a) The board may appoint an executive director to serve at the pleasure of the authority.(b) The executive director is exempt from all civil service provisions and shall be paid a salary established by the board.(c) The executive director may appoint staff or retain consultants as necessary to carry out the duties of the authority.(d) All contracts approved and awarded by the executive director shall be awarded in accordance with state laws generally applicable to local agency procurements and contracts, subject to this chapter. Awards shall be based on price or competitive negotiation, or on both of those things.132505. The LACMTA and the SBCTA shall identify and expeditiously enter into an agreement with the authority to grant to the authority, or hold in trust with the authority, all real property and all real property rights currently owned or held by the LACMTA or the SBCTA, respectively, that are necessary for the project, as determined by the authority, until project completion, without reservation of rights, or the imposition of requirements, including, but not limited to, reviews or approvals, and any other assets accumulated in the planning, design, and construction of the project, including, but not limited to, rights-of-way, temporary construction easements, documents, third-party agreements, contracts, and design documents, as necessary for completion of the project.132506. The authority shall enter into a memorandum of understanding with the LACMTA that shall specifically address the ability of the LACMTA to review any significant changes in the scope of the design or construction, or both the design and construction, of the project. For purposes of this section, the term “significant change” means any change of mode or technology, or any other substantive change that affects the connectivity and operation of the project as part of the overall transit system operated by the LACMTA, or any combination of those things. Design and construction of a light rail project that is consistent with the current scope of the project shall not be deemed to be a significant change in the scope of the project and shall not require concurrence by the LACMTA. 132507. The authority shall not encumber any future farebox revenue anticipated from the operation of the project. 132508. The authority shall not encumber the project with any obligation that is transferable to the LACMTA upon completion of the design and construction of the project unless otherwise agreed to in writing by the LACMTA. The design and construction to be administered by the authority shall not include rolling stock, which is a component of the operation of the project and shall be administered by the LACMTA. This section does not apply to any joint development agreements, as authorized under paragraph (5) of subdivision (a) of Section 132502, that may be used to contribute to the financing of project design and construction. 132509. (a) The LACMTA shall assume responsibility for operating all completed phases of the project. (b) Subject to paragraph (1), the LACMTA shall have the authority to operate the portion of the project located in the County of San Bernardino, which extends approximately one-half of a mile from the Los Angeles and San Bernardino county lines to the Montclair Transit Center.(1) With respect to the portion of the project on the right-of-way owned by the SBCTA, the LACMTA’s authority to operate the project shall be contingent upon the approval of the board of directors of the SBCTA, acting as the county transportation commission, through approval of an operations and maintenance agreement with the LACMTA.(2) The operations and maintenance agreement shall require the SBCTA to reimburse the LACMTA for the costs of operating that portion of the line located in the County of San Bernardino. (3) The operations and maintenance agreement shall be negotiated and entered into only after the start of project construction and before the start of project operations. 132510. The authority shall be dissolved when project construction has been completed.

SEC. 6. 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.

SECTION 1.Section 701 of the Public Utilities Code is amended to read:

701.

The commission may supervise and regulate every public utility in the state and may do all things, whether specifically designated in this part or in addition to this part, that are necessary and convenient in the exercise of that power and jurisdiction.