BILL ANALYSIS
AB 1203
Page 1
ASSEMBLY THIRD READING
AB 1203 (Ma)
As Introduced February 27, 2009
Majority vote
GOVERNMENTAL ORGANIZATION 16-0APPROPRIATIONS 16-0
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|Ayes:|Price, Anderson, Chesbro, |Ayes:|De Leon, Nielsen, |
| |Cook, De Leon, | |Ammiano, |
| |Galgiani, Hall, Hill, | |Charles Calderon, Davis, |
| |Jeffries, Lieu, Mendoza, | |Duvall, Krekorian, Hall, |
| |Nestande, Portantino, | |Harkey, Miller, |
| |Torres, Torrico, Tran | |John A. Perez, Price, |
| | | |Skinner, Solorio, |
| | | |Audra Strickland, |
| | | |Torlakson |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Requires the Secretary of California Emergency
Management Agency (Cal EMA), by February 1 of each fiscal year,
to select eligible applicants for transit system safety projects
from the Transit System Safety, Security, and Disaster Response
Account (Account) pursuant to the Highway Safety, Traffic
Reduction, Air Quality, and Port Security Bond Act of 2006
(Proposition 1B) and provide the Controller with a list of the
projects and sponsoring agencies eligible to receive an
allocation.
EXISTING LAW :
1) Establishes Proposition 1B and authorizes the issuance of
$19.925 billion of general obligation bond funds for the
mobility, safety, and air quality improvements, as specified.
2) Requires the deposit of $1 billion of the bond proceeds in
the Account to be used, upon appropriation, for capital
projects that provide increased protection against a security
and safety threat, and for capital expenditures to increase
the capacity of transit operators to develop disaster response
transportation systems that can move people, goods, and
emergency personnel and equipment in the aftermath of a
disaster.
AB 1203
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3) Requires the allocation of 25% of these funds for capital
expenditures to regional public waterborne transit agencies
authorized to operate a regional water transit system and
requires Cal EMA to administer a grant application and award
program for transit agencies eligible to receive funding.
4) Requires Cal EMA to select eligible projects to receive
those grants by February 1 of each fiscal year in which funds
are used for this purpose.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, there are no significant costs associated with this
bill.
COMMENTS : According to the author, this bill provides
clarifying language to allow the 25% waterborne element of the
Transit System Safety, Security and Disaster Response program to
be administered by way of an up-front grant allocation program,
instead of a reimbursable grant program.
The Highway Safety, Traffic Reduction, Air Quality, and Port
Security Bond Act of 2006, approved by the voters as Proposition
1B at the November 7, 2006, general election, authorized the
issuance of general obligation bonds for specified purposes,
including, but not limited to transit security projects.
Chapter 12.491, Article 6 of Division 1 of Title 2 of the
Government Code, titled: Implementation of the Highway Safety,
Traffic Reduction, Air Quality, and Bond Act of 2006, provides a
description of the eligibility criteria and program management
requirements for the Account funds.
Based on Article 6 requirements, 25% of available funds are to be
allocated to regional public waterborne transit agencies for
eligible capital expenditures that enhance the capacity of
regional public waterborne transit agencies to provide disaster
response transportation systems that can move people, goods, and
emergency personnel and equipment in the aftermath of a disaster
or emergency. These funds are awarded to transit agencies
through a reimbursable grant program, as opposed to an up-front
allocation of funds as is the procedure with the majority of
funds provided under this Article.
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State reimbursement processes are such that grant program
reimbursements for the 25% waterborne element have taken several
months to process, requiring the project sponsor to cash flow the
cumulative program costs over several months at a time. This has
required the project sponsor to tie up significant amounts of
cash to carry expenses while waiting for reimbursement. Once
project activity ramps up, it will be impossible for the sponsor
to carry the cost of project expenses over multiple months due to
limited cash on hand.
This bill provides clarifying language that directs the
administration of the 25% waterborne component of the Account
funds to be administered by way of an up-front "allocation" of
funds as opposed to on a reimbursement basis.
According to the author, this provides consistency with the way
in which 60% of the program funds are administered across the
state, and addresses recipient issues with long-lead times in
receiving state reimbursements.
Analysis Prepared by : Rod Brewer / G. O. / (916) 319-2531
FN: 0000776