Major Victory for High Speed Rail Appellate Court Approves Sale of Bonds
August 1, 2014 - In a major court victory for supporters of California’s High Speed Rail System, a California Court of Appeals has cleared the way for issuance of bonds to finance High Speed Rail construction, setting aside an erroneous lower court decision that had temporarily blocked the bonds.
In a unanimous 3-0 vote, the appellate panel ruled that the High Speed Rail Authority’s financing plan was valid and proper. “Because the Legislature appropriated bond proceeds following receipt of the preliminary funding plan approved by the Authority, the preliminary funding plan has served its purpose,” the court wrote.
Rejecting the opponents’ assertion that the funding plan conflicted with the terms of Proposition 1-A, the bond measure approved by voters in 2008, the court added that the authorization for the bonds “have existed, happened, and been performed in the time, form, and manner required by law.”
The strongly worded decision agrees with an extensive brief filed by the State Building and Construction Trades Council, which asserted that the trial court erred in setting aside the Authority’s authorizing of the bonds.
SBCTC President Robbie Hunter commented: “The court made it absolutely clear that the financing plan is consistent with the voters’ decision to move ahead with high speed rail. It’s time to get to work. California needs this major upgrade to our transportation system, the economic boost, the creation of thousands of good union construction jobs, and the considerable environmental benefits High Speed Rail will bring us.”
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