BILL NUMBER: SB 1507	CHAPTERED  09/25/04

	CHAPTER  793
	FILED WITH SECRETARY OF STATE  SEPTEMBER 25, 2004
	APPROVED BY GOVERNOR  SEPTEMBER 24, 2004
	PASSED THE ASSEMBLY  AUGUST 23, 2004
	PASSED THE SENATE  MAY 10, 2004
	AMENDED IN SENATE  APRIL 14, 2004

INTRODUCED BY   Senator Burton

                        FEBRUARY 19, 2004

   An act to amend Sections 14552.2, 14553.4, and 14554.8 of the
Government Code, relating to transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1507, Burton.  Transportation:  financing.
   Existing law requires that all money in the State Highway Account
in the State Transportation Fund derived from federal sources or from
appropriations to other state agencies, or deposited in the account
by local agencies or by others, be continuously appropriated to, and
be available for expenditure by, the Department of Transportation for
the purposes for which the money was made available.  Unless
otherwise expressly provided for by law, none of the balance of the
money in the account may be expended until it has been specifically
appropriated by the Legislature.
   Existing law continuously appropriates the amounts specified in
the annual Budget Act as having been deposited in the State Highway
Account in the State Transportation Fund from federal transportation
funds, and pledged by the California Transportation Commission, to
the Treasurer for the purposes of issuing federal highway grant
anticipation notes, as specified, to fund transportation projects
selected by the commission.
   Existing law defines "eligible project" for these purposes as a
highway or other transportation project that has been designated for
accelerated construction by the commission, as specified.
   Existing law prohibits the Treasurer from authorizing the issuance
of the notes if the annual repayment obligations of all outstanding
notes in any fiscal year would exceed 30% of the total amount of
federal transportation funds deposited in the account for any
consecutive 12-month period within the preceding 24 months.
   This bill would define "eligible project" for these purposes as a
highway or other transportation project that has been designated for
accelerated construction by the commission, and increases the
capacity, reduces the travel time, or provides long-life
rehabilitation of the key bridges and roadways of a corridor or
gateway for interregional travel and movement of goods.
   The bill would prohibit the Treasurer from authorizing the
issuance of the notes if the annual repayment obligations of all
outstanding notes in any fiscal year would exceed 15% of the total
amount of federal transportation funds deposited in the account for
any consecutive 12-month period within the preceding 24 months.
   The bill would delete the requirement that the amount for these
purposes be specified in the annual Budget Act as having been
deposited in the account.


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


  SECTION 1.  Section 14552.2 of the Government Code is amended to
read:
   14552.2.  (a) "Eligible project" means the federally funded
portion of any highway or other transportation project that has been
designated for accelerated construction by the commission, and
increases the capacity, reduces the travel time, or provides
long-life rehabilitation of the key bridges and roadways of a
corridor or gateway for interregional travel and movement of goods.
   (b) An eligible project that meets the conditions of subdivision
(a) may include, but is not limited to, any of the following
projects:
   (1) Toll bridge seismic retrofit projects.
   (2) Projects approved for funding under the Traffic Congestion
Relief Act of 2000 (Chapter 4.5 (commencing with Section 14556)).
   (3) Projects programmed under the current adopted State
Transportation Improvement Program or the current State Highway
Operation and Protection Program.
  SEC. 2.  Section 14553.4 of the Government Code is amended to read:

   14553.4.  The Treasurer may not authorize the issuance of notes if
the annual repayment obligations of all outstanding notes in any
fiscal year would exceed 15 percent of the total amount of federal
transportation funds deposited in the State Highway Account in the
State Transportation Fund for any consecutive 12-month period within
the preceding 24 months.
  SEC. 3.  Section 14554.8 of the Government Code is amended to read:

   14554.8.  (a) Notwithstanding Section 13340 of the Government Code
or any other provision of law, the amounts deposited in the State
Highway Account in the State Transportation Fund from federal
transportation funds, and pledged by the commission under this
chapter, are hereby continuously appropriated, without regard to
fiscal years, to the Treasurer for the purposes of, and in accordance
with, this chapter.
   (b) Funds that are subject to Section 1 or 2 of Article XIX of the
California Constitution may be used as the state or local principal
match for any project that is eligible for federal matching funds and
is funded pursuant to this chapter.