SACRAMENTO – Orange County Senator Lou Correa’s measure to add to California’s transportation infrastructure and job creation, was approved by the Legislature and is now heading to the Governor’s desk for his consideration. Â
Senate Bill 1371 (SB 1371) authorizes “letters of no prejudice†(LNOP) for the $950 million in high-speed passenger train bond funds, intended for capital improvements to intercity and commuter rail lines, and urban rail systems.  This mechanism will aide local transportation agencies to fast track the construction of infrastructure projects related to the High-Speed Rail bond.
LONPs are agreements between a local or regional transportation agency and the agency responsible for administering a specific category of state bond funds.  LONP agreements allow a local or regional agency to spend their own local funds to begin or continue a project and receive reimbursement from state bond funds, when the funds are available.  In turn, by the issuance of LONPs, local connectivity projects remain on schedule, creating significant savings in aggregate state and local transportation funds.  This will result in reduced total project costs. Additionally, jobs created by these projects will be expedited, thus creating an immediate positive impact in California’s economy.
“The enactment of SB 1371 will help a great number of Californians to get back to work,†said Senator Correa.  “I am confident that SB 1371 will be part of the Governor’s approved legislation to help California to its economic recovery.â€
The Governor has until September 30th to act upon this measure. Â SB 1371 has an urgency clause, allowing this bill to become effective upon enactment.
Senator Lou Correa represents the 34th District, which includes the cities of Anaheim, Buena Park, Fullerton, Garden Grove, Santa Ana, Stanton and Westminster.