BILL NUMBER: AB 1335	CHAPTERED  10/14/01

	CHAPTER  908
	FILED WITH SECRETARY OF STATE  OCTOBER 14, 2001
	APPROVED BY GOVERNOR  OCTOBER 14, 2001
	PASSED THE ASSEMBLY  AUGUST 31, 2001
	PASSED THE SENATE  JULY 21, 2001
	AMENDED IN SENATE  JULY 11, 2001
	AMENDED IN SENATE  JUNE 26, 2001
	AMENDED IN SENATE  JUNE 11, 2001

INTRODUCED BY   Assembly Member Cohn

                        FEBRUARY 23, 2001

   An act to add Section 14556.33 to the Government Code, relating to
transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1335, Cohn.  Transportation:  regional and local project funds:
  letter of no prejudice.
   Existing law authorizes a regional or local entity to expend its
own funds for any component of a transportation project within its
jurisdiction that is included in the current fiscal year's state
transportation improvement program and for which the commission has
not made an allocation.  The amount expended is authorized to be
reimbursed by the state, subject to annual appropriation by the
Legislature, if (1) the California Transportation Commission makes an
allocation for, and the Department of Transportation executes a fund
transfer agreement for, the project during the same fiscal year as
when the regional or local expenditure was made, (2) expenditures
made by the regional or local entity are eligible for reimbursement
in accordance with state and federal laws and procedures, and (3) the
regional or local entity complies with all legal requirements for
the project, as specified.
   This bill would authorize a regional or local entity that is a
lead applicant for an eligible project included in an adopted
regional transportation plan to apply to the commission for a letter
of no prejudice for the project in order to expend its own funds for
any component of the transportation project, subject to the approval
of the commission.  The bill would authorize the commission, in
consultation with regional and local entities, and the department, to
develop guidelines to implement these provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  It is the intent of the Legislature in enacting this
act to enhance the ability of regional and local governmental
entities to deliver critical transportation capital improvement
projects in an expeditious manner.
  SEC. 2.  Section 14556.33 is added to the Government Code, to read:

   14556.33.  (a) A regional or local entity that is a lead applicant
agency under Article 5 (commencing with Section 14556.40), may apply
to the commission for a letter of no prejudice for the project.  If
approved by the commission, the letter of no prejudice allows the
regional or local entity to expend its own funds for any component of
the transportation project.
   (b) The amount expended under subdivision (a) shall be reimbursed
by the state if all of the following conditions are met:
   (1) The project is included in an adopted regional transportation
plan.
   (2) The department makes an allocation for the project pursuant to
Section 14556.20.
   (3) The expenditures made by the regional or local entity are
eligible for reimbursement in accordance with state and federal laws
and procedures.  In the event expenditures made by the regional or
local entity are determined to be ineligible, the state has no
obligation to reimburse those expenditures.
   (4) The regional or local entity complies with all legal
requirements for the project, including the requirements of the
California Environmental Quality Act (Division 13 (commencing with
Section 21000) of the Public Resources Code).
   (c) Upon execution of an agreement with the department to transfer
reimbursement funds for a project described in subdivision (a), the
commission may delay reimbursement pursuant to this section only if
cash-management issues prevent immediate repayment.
   (d) The commission, in consultation with regional and local
entities, and the department, may develop guidelines to implement
this section.