CA AB3278

Clarifies that the "no operating subsidy" requirement for high-speed rail service applies whether the authority provides service directly or through a third party operating under a lease agreement with the authority.

Specifies that the prohibition on operating subsidies covers all high-speed train service using the high-speed train system owned by the High-Speed Rail Authority.

Addresses the interim service business model described in the High-Speed Rail Authority's 2020 business plan for operation between Merced and Bakersfield, which the Legislature finds does not meet existing "no operating subsidy" requirements from Proposition 1A (2008).

Adds Section 2704.80 to the Streets and Highways Code to codify the definition and application of passenger train service requirements.