BILL NUMBER: AB 1414	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 30, 2009
	AMENDED IN ASSEMBLY  APRIL 2, 2009

INTRODUCED BY   Assembly Member Hill

                        FEBRUARY 27, 2009

    An act to amend Sections 14524, 14525, 14526, 14527,
14529, 14530.1, and 65082 of, and to add Sections 14529.5 and
14529.13 to, the Government Code, and to amend Sections 188 and 188.8
of, and to add Section 182.10 to, the Streets and Highways Code,
relating to transportation.   An act to amend Section
11055 of the Health and Safety Code, relating to controlled
substances. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1414, as amended, Hill.  Transportation planning.
  Controlled Substances.  
   Existing law, the California Uniform Controlled Substances Act,
classifies controlled substances into fire designated schedules and
includes apomorphine within Schedule II. Under existing law, unlawful
possession of apomorphine is a felony.  
   This bill would remove apomorphine from Schedule II, as described
above.  
   (1) Existing law generally provides for programming of
transportation capital improvement projects pursuant to the state
transportation improvement program process administered by the
California Transportation Commission. Under that process, the
commission, on a biennial basis, adopts a 5-year fund estimate of
state and federal funds reasonably expected to be available for
programming. Based on the fund estimate, the Department of
Transportation prepares an interregional transportation improvement
program, and regional transportation planning agencies each prepare a
regional transportation improvement program, for the 5-year period.
These programs are submitted to the commission for review, which
subsequently adopts a 5-year state transportation improvement program
that lists the projects in the year that they are expected to be
undertaken. Existing law specifies various fair-share formulas for
allocation of available transportation funds, including the
north-south split, which is applicable to all available funds,
including the 25% of funds available for programming for
interregional projects, and county shares, which provides a share of
funds to each county, but applies only to the 75% of funds available
for programming to regional projects. The commission is required to
adopt the state transportation improvement program consistent with
the county share formula over a 4-year period basis. 

   This bill would instead provide for programming of projects in the
interregional and regional transportation improvement programs, and
in the subsequently adopted state transportation improvement program,
on a 6-year basis. The bill would require the fund estimate and the
county share formula estimates to also be prepared and used for that
same 6-year period. The bill would require projects funded by the
Traffic Congestion Relief Act to be included in the state
transportation improvement program.  
   (2) Existing law restricts the authority of the California
Transportation Commission to reject a regional agency's regional
transportation improvement program by requiring the commission to
reject the entire program on grounds that the program is not
consistent with commission guidelines or is not cost effective,
rather than rejecting individual projects in the program. 

   This bill would preclude the commission from adding or deleting
projects from a regional transportation improvement program without
the concurrence of the regional agency. The bill would provide that
the commission may reject the entire program if it finds that the
program is not consistent with the region's long-range regional
transportation plan and would delete as a grounds for rejection that
the program is not cost effective.  
   This bill would also require the commission to adopt an allocation
capacity estimate, as specified, for the state transportation
improvement program each fiscal year after the enactment of the
Budget Act. The bill would provide for regional agencies and the
department to submit allocation plans for the funds that will be
available during the fiscal year, and would require the commission to
amend the state transportation improvement program accordingly.
 
   (3) Existing law authorizes transportation projects to be funded
through short-term notes, known as GARVEE bonds, backed by
anticipated federal transportation funds that will be received in the
future.  
   This bill would authorize projects in the state transportation
improvement program to be advanced to an earlier fiscal year through
issuance of notes backed by future funds made available to the state
transportation program. The bill would require an annual report from
the commission to the Legislature in that regard.  
   This bill would also make nonsubstantive and technical changes to
these provisions. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

   SECTION 1.    Section 11055 of the   Health
and Safety Code   is amended to read: 
   11055.  (a) The controlled substances listed in this section are
included in Schedule II.
   (b) Any of the following substances, except those narcotic drugs
listed in other schedules, whether produced directly or indirectly by
extraction from substances of vegetable origin, or independently by
means of chemical synthesis, or by combination of extraction and
chemical synthesis:
   (1) Opium, opiate, and any salt, compound, derivative, or
preparation of opium or opiate, with the exception of naloxone
hydrochloride (N-allyl-14-hydroxy-nordihydromorphinone
hydrochloride), but including the following:
   (A) Raw opium.
   (B) Opium extracts.
   (C) Opium fluid extracts.
   (D) Powdered opium.
   (E) Granulated opium.
   (F) Tincture of opium. 
   (G) Apomorphine.  
   (H) 
    (G)    Codeine. 
   (I) 
    (H)    Ethylmorphine. 
   (J) 
    (I)    Hydrocodone. 
   (K) 
    (J)    Hydromorphone. 
   (L) 
    (K)    Metopon. 
   (M) 
    (L)    Morphine. 
   (N) 
    (M)   Oxycodone. 
   (O) 
    (N)    Oxymorphone. 
   (P) 
    (O)    Thebaine.
   (2) Any salt, compound, isomer, or derivative, whether natural or
synthetic, of the substances referred to in paragraph (1), but not
including the isoquinoline alkaloids of opium.
   (3) Opium poppy and poppy straw.
   (4) Coca leaves and any salt, compound, derivative, or preparation
of coca leaves, but not including decocainized coca leaves or
extractions which do not contain cocaine or ecgonine.
   (5) Concentrate of poppy straw (the crude extract of poppy straw
in either liquid, solid, or powder form which contains the
phenanthrene alkaloids of the opium poppy).
   (6) Cocaine, except as specified in Section 11054.
   (7) Ecgonine, whether natural or synthetic, or any salt, isomer,
derivative, or preparation thereof.
   (c) Opiates. Unless specifically excepted or unless in another
schedule, any of the following opiates, including its isomers,
esters, ethers, salts, and salts of isomers, esters, and ethers
whenever the existence of those isomers, esters, ethers, and salts is
possible within the specific chemical designation, dextrorphan and
levopropoxyphene excepted:
   (1) Alfentanyl.
   (2) Alphaprodine.
   (3) Anileridine.
   (4) Bezitramide.
   (5) Bulk dextropropoxyphene (nondosage forms).
   (6) Dihydrocodeine.
   (7) Diphenoxylate.
   (8) Fentanyl.
   (9) Isomethadone.
   (10) Levoalphacetylmethadol, also known as
levo-alpha-acetylmethadol, levomethadyl acetate, or LAAM. This
substance is authorized for the treatment of narcotic addicts under
federal law (see Part 291 (commencing with Section 291.501) and Part
1308 (commencing with Section 1308.01) of Title 21 of the Code of
Federal Regulations).
   (11) Levomethorphan.
   (12) Levorphanol.
   (13) Metazocine.
   (14) Methadone.
   (15) Methadone-Intermediate, 4-cyano-2-dimethylamino-4, 4-diphenyl
butane.
   (16) Moramide-Intermediate, 2-methyl-3-morpholino-1,
1-diphenylpropane-carboxylic acid.
   (17) Pethidine (meperidine).
   (18) Pethidine-Intermediate-A,
4-cyano-1-methyl-4-phenylpiperidine.
   (19) Pethidine-Intermediate-B,
ethyl-4-phenylpiperidine-4-carboxylate.
   (20) Pethidine-Intermediate-C,
1-methyl-4-phenylpiperidine-4-carboxylic acid.
   (21) Phenazocine.
   (22) Piminodine.
   (23) Racemethorphan.
   (24) Racemorphan.
   (25) Sufentanyl.
   (d) Stimulants. Unless specifically excepted or unless listed in
another schedule, any material, compound, mixture, or preparation
which contains any quantity of the following substances having a
stimulant effect on the central nervous system:
   (1) Amphetamine, its salts, optical isomers, and salts of its
optical isomers.
   (2) Methamphetamine, its salts, isomers, and salts of its isomers.

   (3) Dimethylamphetamine (N,N-dimethylamphetamine), its salts,
isomers, and salts of its isomers.
   (4) N-Ethylmethamphetamine (N-ethyl, N-methylamphetamine), its
salts, isomers, and salts of its isomers.
   (5) Phenmetrazine and its salts.
   (6) Methylphenidate.
   (7) Khat, which includes all parts of the plant classified
botanically as Catha Edulis, whether growing or not, the seeds
thereof, any extract from any part of the plant, and every compound,
manufacture, salt, derivative, mixture, or preparation of the plant,
its seeds, or extracts.
   (8) Cathinone (also known as alpha-aminopropiophenone,
2-aminopropiophenone, and norephedrone).
   (e) Depressants. Unless specifically excepted or unless listed in
another schedule, any material, compound, mixture, or preparation
which contains any quantity of the following substances having a
depressant effect on the central nervous system, including its salts,
isomers, and salts of isomers whenever the existence of those salts,
isomers, and salts of isomers is possible within the specific
chemical designation:
   (1) Amobarbital.
   (2) Pentobarbital.
   (3) Phencyclidines, including the following:
   (A) 1-(1-phenylcyclohexyl) piperidine (PCP).
   (B) 1-(1-phenylcyclohexyl) morpholine (PCM).
   (C) Any analog of phencyclidine which is added by the Attorney
General by regulation pursuant to this paragraph.
   The Attorney General, or his or her designee, may, by rule or
regulation, add additional analogs of phencyclidine to those
enumerated in this paragraph after notice, posting, and hearing
pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code. The Attorney General
shall, in the calendar year of the regular session of the Legislature
in which the rule or regulation is adopted, submit a draft of a
proposed bill to each house of the Legislature which would
incorporate the analogs into this code. No rule or regulation shall
remain in effect beyond January 1 after the calendar year of the
regular session in which the draft of the proposed bill is submitted
to each house. However, if the draft of the proposed bill is
submitted during a recess of the Legislature exceeding 45 calendar
days, the rule or regulation shall be effective until January 1 after
the next calendar year.
   (4) Secobarbital.
   (5) Glutethimide.
   (f) Immediate precursors. Unless specifically excepted or unless
listed in another schedule, any material, compound, mixture, or
preparation which contains any quantity of the following substances:
   (1) Immediate precursor to amphetamine and methamphetamine:
   (A) Phenylacetone. Some trade or other names: phenyl-2 propanone;
P2P; benzyl methyl ketone; methyl benzyl ketone.
   (2) Immediate precursors to phencyclidine (PCP):
   (A) 1-phenylcyclohexylamine.
   (B) 1-piperidinocyclohexane carbonitrile (PCC). 
  SECTION 1.    Section 14524 of the Government Code
is amended to read:
   14524.  (a) Not later than July 15, 2011, and July 15 of each
odd-numbered year thereafter, the department shall submit to the
commission a six-year estimate pursuant to Section 164 of the Streets
and Highways Code, in annual increments, of all federal and state
funds reasonably expected to be available during the following six
fiscal years.
   (b) The estimate shall specify the amount that may be programmed
in each county for regional transportation improvement programs
pursuant to paragraph (2) of subdivision (a) of Section 164 of the
Streets and Highways Code and shall identify any statutory
restriction on the use of particular funds.
   (c) For the purpose of estimating revenues, the department shall
assume that there will be no changes in existing state and federal
statutes. Federal funds available for demonstration projects that are
not subject to federal obligational authority, or are accompanied
with their own dedicated obligational authority, shall not be
considered funds that would otherwise be available to the state and
shall not be included in the fund estimate.
   (d) The method by which the estimate is determined shall be
determined by the commission, in consultation with the department,
transportation planning agencies, and county transportation
commissions.  
  SEC. 2.    Section 14525 of the Government Code is
amended to read:
   14525.  (a) Not later than August 15, 2011, and August 15 of each
odd-numbered year thereafter, the commission shall adopt a six-year
estimate pursuant to Section 164 of the Streets and Highways Code, in
annual increments, of all state and federal funds reasonably
expected to be available during the following six fiscal years.
   (b) The estimate shall specify the amount that may be programmed
in each county for regional transportation improvement programs under
paragraph (2) of subdivision (a) of Section 164 of the Streets and
Highways Code and shall identify any statutory restriction on the use
of particular funds.
   (c) For the purpose of estimating revenues, the commission shall
assume that there will be no change in existing state and federal
statutes. Federal funds available for demonstration projects that are
not subject to federal obligational authority, or are accompanied
with their own dedicated obligational authority, shall not be
considered funds that would otherwise be available to the state and
shall not be included in the fund estimate.
   (d) If the commission finds that legislation pending before the
Legislature or the United States Congress may have a significant
impact on the fund estimate, the commission may postpone the adoption
of the fund estimate for no more than 90 days. Prior to March 1 of
each even-numbered year, the commission may amend the estimate
following consultation with the department, transportation planning
agencies, and county transportation commissions to account for
unexpected revenues or other unforeseen circumstances. In the event
the fund estimate is amended, the commission shall extend the dates
for the submittal of transportation improvement programs as specified
in Sections 14526 and 14527 and for the adoption of the state
transportation improvement program pursuant to Section 14529.
 
  SEC. 3.    Section 14526 of the Government Code is
amended to read:
   14526.  (a) Not later than December 15, 2011, and December 15 of
each odd-numbered year thereafter, and after consulting with the
transportation planning agencies, county transportation commissions,
and transportation authorities, the department shall submit to the
commission its six-year interregional transportation improvement
program consisting of all of the following:
   (1) Projects to improve state highways, pursuant to subdivision
(b) of Section 164 of the Streets and Highways Code.
   (2) Projects to improve the intercity passenger rail system.
   (3) Projects to improve interregional movement of people,
vehicles, and goods.
   (b) Projects may not be included in the interregional
transportation improvement program without a complete project study
report or project study report equivalent, or a major investment
study.
   (c) Major projects shall include current costs updated as of
November 1 of the year of submittal and escalated to the appropriate
year, and shall be consistent with, and provide the information
required in, subdivision (b) of Section 14529.
   (d) Projects included in the interregional transportation
improvement program shall be consistent with the adopted regional
transportation plan.  
  SEC. 4.    Section 14527 of the Government Code is
amended to read:
   14527.  (a) After consulting with the department, the regional
transportation planning agencies and county transportation
commissions shall adopt and submit to the commission and the
department, not later than December 15, 2011, and December 15 of each
odd-numbered year thereafter, a six-year regional transportation
improvement program in conformance with Section 65082. In counties
where a county transportation commission has been created pursuant to
Chapter 2 (commencing with Section 130050) of Division 12 of the
Public Utilities Code, that commission shall adopt and submit the
county transportation improvement program, in conformance with
Sections 130303 and 130304 of that code, to the multicounty
designated transportation planning agency. Other information,
including a program for expenditure of local or federal funds, may be
submitted for information purposes with the program, but only at the
discretion of the transportation planning agencies or the county
transportation commissions. As used in this section, "county
transportation commission" includes a transportation authority
created pursuant to Chapter 2 (commencing with Section 130050) of
Division 12 of the Public Utilities Code.
   (b) The regional transportation improvement program shall include
all projects to be funded with the county share under paragraph (2)
of subdivision (a) of Section 164 of the Streets and Highways Code.
The regional programs shall be limited to projects to be funded in
whole or in part with the county share that shall include all
projects to receive allocations by the commission during the
following six fiscal years. For each project, the total expenditure
for each project component and the total amount of commission
allocation and the year of allocation shall be stated. The total cost
of projects to be funded with the county share shall not exceed the
amount specified in the fund estimate made by the commission pursuant
to Section 14525.
   (c) The regional transportation planning agencies and county
transportation commissions may recommend projects to improve state
highways with the interregional share pursuant to subdivision (b) of
Section 164 of the Streets and Highways Code. The recommendations
shall be separate and distinct from the regional transportation
improvement program. A project recommended for funding pursuant to
this subdivision shall constitute a usable segment and shall not be a
condition for inclusion of other projects in the regional
transportation improvement program.
   (d) The department may nominate or recommend the inclusion of
projects in the regional transportation improvement program to
improve state highways with the county share pursuant to paragraph
(2) of subdivision (a) and subdivision (e) of Section 164 of the
Streets and Highways Code. A regional transportation planning agency
and a county transportation commission shall have sole authority for
determining whether any of the project nominations or recommendations
are accepted and included in the regional transportation improvement
program adopted and submitted pursuant to this section. This
authority provided to a regional transportation planning agency or to
a county transportation commission extends only to a project located
within its jurisdiction.
   (e) Major projects shall include current costs updated as of
November 1 of the year of submittal and escalated to the appropriate
year of expenditure, and shall be consistent with, and provide the
information required in, subdivision (b) of Section 14529.
   (f) The regional transportation improvement program may not change
the project delivery milestone date of any project as shown in the
prior adopted state transportation improvement program without the
consent of the department or other agency responsible for the project'
s delivery.
   (g) Projects may not be included in the regional transportation
improvement program without a complete project study report or a
project study report equivalent, or a major investment study.
   (h) Each transportation planning agency and county transportation
commission may request and receive an amount not to exceed 5 percent
of its county share for the purposes of project planning,
programming, and monitoring.  
  SEC. 5.    Section 14529 of the Government Code is
amended to read:
   14529.  (a) The state transportation improvement program shall
include a listing of all capital improvement projects that are
expected to receive an allocation of state transportation funds
pursuant to subdivision (e) from the commission during the following
six fiscal years.
   (b) For each project, the program shall specify the allocation or
expenditure amount and the allocation or expenditure year for each of
the following project components:
   (1) Completion of all permits and environmental studies.
   (2) Preparation of plans, specifications, and estimates.
   (3) The acquisition of rights-of-way, including, but not limited
to, support activities.
   (4) Construction and construction management and engineering,
including surveys and inspection.
   (c) Funding for right-of-way acquisition and construction for a
project may be included in the program only if the commission makes a
finding that the sponsoring agency will complete the environmental
process and can proceed with right-of-way acquisition or construction
within the six-year period. No allocation for right-of-way
acquisition or construction shall be made until the completion of the
environmental studies and the selection of a preferred alternative.
   (d) The commission shall adopt and submit to the Legislature and
the Governor, not later than April 1 of each even-numbered year
thereafter, a state transportation improvement program. The program
shall cover a period of six years, beginning July 1 of the year it is
adopted, and shall be a statement of intent by the commission for
the allocation or expenditure of funds during those six years. The
program shall include projects that are expected to receive funds
prior to July 1 of the year of adoption, but for which the commission
has not yet allocated funds.
   (e) The projects included in the adopted state transportation
improvement program shall be limited to the following:
   (1) Those projects receiving funds pursuant to Section 164 of the
Streets and Highways Code that are submitted or recommended pursuant
to Sections 14526 and 14527. The total amount programmed in each
fiscal year for each program category shall not exceed the amount
specified in the fund estimate adopted under Section 14525.
   (2) Those projects programmed by the commission pursuant to
Section 8879.23 or any other state transportation bond act.
   (3) Those projects receiving state funding pursuant to Section
14556.40.
   (f) The state transportation improvement program is a resource
management document to assist the state and local entities to plan
and implement transportation improvements and to utilize available
resources in a cost-effective manner. It is a document for each
county and each region to declare their intent to use available state
and federal funds in a timely and cost-effective manner.
   (g) Prior to the adoption of the state transportation improvement
program, the commission shall hold not less than one hearing in
northern California and one hearing in southern California to
reconcile any objections by any county or regional agency to the
department's interregional transportation improvement program or the
department's objections to any regional transportation improvement
program.
   (h) The commission shall incorporate projects that are included in
the regional transportation improvement program and are to be funded
with regional transportation improvement program funds, unless the
commission finds that the regional transportation improvement program
is not consistent with the guidelines adopted by the commission or
is not consistent with the region's long-range regional
transportation plan, in which case the commission may reject the
regional transportation improvement program in its entirety. The
finding shall be based on an objective analysis, including, but not
limited to, travel forecast, cost, and air quality. The commission
shall hold a public hearing in the affected county or region prior to
rejecting the program, or not later than 60 days after rejecting the
program. When a regional transportation improvement program is
rejected, the regional entity may submit a new regional
transportation improvement program for inclusion in the state
transportation improvement program. The commission shall not reject a
regional transportation improvement program unless, not later than
60 days after the date it received the program, it provided notice to
the affected agency that specified the factual basis for its
proposed action. The commission may not add projects to, or delete
projects from, a regional transportation improvement program without
the concurrence of the affected regional transportation planning
agency or the county transportation commission responsible for
preparing and submitting the regional transportation improvement
program.
   (i) A project may be funded with more than one of the program
categories listed in Section 164 of the Streets and Highways Code.
   (j) Notwithstanding any other provision of law, no local or
regional matching funds shall be required for projects that are
included in the state transportation improvement program pursuant to
paragraph (1) of subdivision (e).
   (k) The commission may include a project recommended by a regional
transportation planning agency or county transportation commission
pursuant to subdivision (c) of Section 14527, if the commission makes
a finding, based on an objective analysis, that the recommended
project is more cost-effective than a project submitted by the
department pursuant to Section 14526.  
  SEC. 6.    Section 14529.5 is added to the
Government Code, to read:
   14529.5.  (a) Not later than 30 days after the enactment of the
annual Budget Act, the department shall submit to the commission an
estimate of allocation capacity for the state transportation
improvement program for the entire fiscal year.
   (b) Not later than 60 days after the enactment of the annual
Budget Act, the commission shall adopt an allocation capacity
estimate for the entire fiscal year. Seventy-five percent of the
allocation capacity shall be made available for regional
transportation improvement program funds and 25 percent shall be made
available for interregional transportation improvement program
funds.
   (1) The estimate shall specify the amount available for allocation
in each region for regional transportation improvements under
paragraph (2) of subdivision (a) of Section 164 of the Streets and
Highways Code, and shall identify any statutory restrictions on the
use of particular funds.
   (2) Priority for available allocation capacity shall be given to
the following projects in the following order:
   (A) Projects with programming commitments under Section 14529.7.
   (B) Projects where funding was deferred from prior years.
   (C) Projects with previously approved allocation extensions.
   (D) Projects programmed in the current year of the state
transportation improvement program.
   (c) Any additional allocation capacity beyond the commitments
under paragraph (2) of subdivision (b) shall be made available to the
regions based on the formula distribution to the regions for the
regional transportation improvement program programming shares.
   (d) Any shortfall in allocation capacity that results in the
inability to fund the commitments under paragraph (2) of subdivision
(b) shall be distributed among the regions based on the formula
distribution to the regions for the regional transportation
improvement program programming shares.
   (e) Not later than 90 days after the enactment of the annual
Budget Act, after consulting with the department, the regional
transportation planning agencies and the county transportation
commissions shall submit to the commission and the department their
annual allocation plan for the regional transportation improvement
program for that fiscal year, including any previous allocations in
that year. The regional allocation plans may advance programmed
projects from later years, and defer programmed projects in the
current year, without penalty.
   (f) Not later than 120 days after the enactment of the annual
Budget Act, the commission shall adopt a statewide allocation plan.
The commission shall adopt a region's allocation plan in its
entirety, unless the region's allocation plan exceeds the target
allocation capacity for that region pursuant to the estimate adopted
pursuant to subdivision (b), in which case the commission may reduce
a region's allocation plan by the amount that is
                                     oversubscribed. The commission
may not make any changes to a region's allocation plan that is within
its allocation capacity amount without the concurrence of the
regional agency.
   (g) Thereafter, the commission shall process any state
transportation improvement program amendments necessary to implement
the allocation plan.  
  SEC. 7.    Section 14529.13 is added to the
Government Code, to read:
   14529.13.  (a) For purposes of this section, "transportation
agency" means any of the following:
   (1) A transportation planning agency designated pursuant to
Section 29532 or 29532.1.
   (2) A county transportation commission created pursuant to Chapter
2 (commencing with Section 130050) of Division 12 of the Public
Utilities Code.
   (3) An agency designated pursuant to Section 66531 to submit the
county transportation plan, with the consent of a transportation
planning agency or a county transportation commission for the
jurisdiction in which the transportation project will be developed.
   (4) Any other local or regional transportation agency that is
designated by statute as a regional transportation agency or a joint
exercise of powers authority as defined in Chapter 5 (commencing with
Section 6500) of Division 7 of Title 1.
   (b) The department or a transportation agency may request the
commission to advance a project included in the state transportation
improvement program to an earlier fiscal year from the proceeds of
notes issued pursuant to this section. If a project is advanced
pursuant to this section, the state transportation improvement
program shall be revised at the time of adoption or by amendment to
show the project in the earlier fiscal year.
   (c) (1) The commission may from time to time select and designate
eligible projects to be funded from the proceeds of notes, if
financing of the project from the proceeds of notes has been approved
by the transportation agency and the project has completed
environmental clearance and project design.
   (2) On or before April 1 of each year, the commission, in
conjunction with the Treasurer, shall prepare an annual analysis of
the bonding capacity of the state transportation improvement program.

   (d) The commission, in cooperation with the department and
transportation agencies, shall establish guidelines for eligibility
for funding allocations under this section. The guidelines shall
establish a limit on the total number of state transportation
improvement program funds that may be pledged, as well as a maximum
amount that a transportation agency may pledge from its county share.
The guidelines shall be nondiscriminatory and shall be designed to
allow as many counties as possible to establish eligibility for
funding allocations under this section, regardless of the population
or geographic location of the county.
   (e) Funds allocated to a project under this section, including
cost overruns and financing costs, shall be counted against the
interregional improvement program share in the case of a project in
the interregional transportation improvement program and the county
share for the county in which the project is located in the case of a
project in a regional transportation improvement program.
   (f) In order to provide security for repayment of the notes, the
commission shall adopt a resolution dedicating and pledging any
future funds in the state transportation improvement program to the
payment of principal of, and interest and premium on, the notes, for
as long as any notes remain outstanding. That action shall constitute
a pledge or receipt of those moneys as collateral within the meaning
of subdivision (d) of Section 5450. The pledge shall be governed by
Chapter 5.5 (commencing with Section 5450) of Division 6 of Title 1.
The commission shall be deemed a "public body" for purposes of
Section 5451, as defined in subdivision (e) of Section 5450.
   (g) (1) Upon taking the actions authorized by this section, the
commission may request the Treasurer to issue notes to provide funds
for the eligible projects.
   (2) On or before April 1 of each year, the commission shall
prepare and submit an annual report to the Governor and the
Legislature. Each report shall compile and detail the total amount of
outstanding debt issued pursuant to this section and the projects
funded by that debt in the preceding calendar year. 

  SEC. 8.    Section 14530.1 of the Government Code
is amended to read:
   14530.1.  (a) The department, in cooperation with the commission,
transportation planning agencies, and county transportation
commissions and local governments, shall develop guidelines for the
development of the state transportation improvement program and the
incorporation of projects into the state transportation improvement
program.
   (b) The guidelines shall include, but not be limited to, all of
the following:
   (1) Standards for project deliverability.
   (2) Standards for identifying projects and project components.
   (3) Standards for cost estimating.
   (4) Programming methods for increases and schedule changes.
   (5) Objective criteria for measuring system performance and
cost-effectiveness of candidate projects.
   (6) The criteria to be used by the commission to determine whether
to accept or reject a regional transportation improvement program
pursuant to subdivision (h) of Section 14529.
   (c) The guidelines shall be the complete and full statement of the
policy, standards, and criteria that the commission intends to use
in selecting projects to be included in the state transportation
improvement program.
   (d) The commission may amend the adopted guidelines after
conducting at least one public hearing. The commission shall make a
reasonable effort to adopt the amended guidelines prior to its
adoption of the fund estimate pursuant to Section 14525. In no event
shall the adopted guidelines be amended, or otherwise revised,
modified, or altered during the period commencing 30 days after the
adoption of the fund estimate pursuant to Section 14525 and before
the adoption of the state transportation improvement program pursuant
to Section 14529.  
  SEC. 9.    Section 65082 of the Government Code is
amended to read:
   65082.  (a) (1) A six-year regional transportation improvement
program shall be prepared, adopted, and submitted to the California
Transportation Commission on or before December 15 of each
odd-numbered year thereafter, updated every two years, pursuant to
Sections 65080 and 65080.5 and the guidelines adopted pursuant to
Section 14530.1, to include regional transportation improvement
projects and programs proposed to be funded, in whole or in part, in
the state transportation improvement program.
   (2) Major projects shall include current costs updated as of
November 1 of the year of submittal and escalated to the appropriate
year of expenditure, and be listed by relative priority, taking into
account need, delivery milestone dates, and the availability of
funding.
   (b) Except for those counties that do not prepare a congestion
management program pursuant to Section 65088.3, congestion management
programs adopted pursuant to Section 65089 shall be incorporated
into the regional transportation improvement program submitted to the
commission by December 15 of each odd-numbered year.
   (c) Local projects not included in a congestion management program
shall not be included in the regional transportation improvement
program. Projects and programs adopted pursuant to subdivision (a)
shall be consistent with the capital improvement program adopted
pursuant to paragraph (5) of subdivision (b) of Section 65089, and
the guidelines adopted pursuant to Section 14530.1.
   (d) Other projects may be included in the regional transportation
improvement program if listed separately.
   (e) Unless a county not containing urbanized areas of over 50,000
population notifies the Department of Transportation by July 1 that
it intends to prepare a regional transportation improvement program
for that county, the department shall, in consultation with the
affected local agencies, prepare the program for all counties for
which it prepares a regional transportation plan.
   (f) The requirements for incorporating a congestion management
program into a regional transportation improvement program specified
in this section do not apply in those counties that do not prepare a
congestion management program in accordance with Section 65088.3.
   (g) The regional transportation improvement program may include a
reserve of county shares for providing funds in order to match
federal funds.  
  SEC. 10.    Section 182.10 is added to the Streets
and Highways Code, to read:
   182.10.  (a) Notwithstanding Sections 182 and 182.5, Sections 188,
188.8, and 825 shall not apply to the expenditure of an amount of
federal funds equal to the amount of federal funds apportioned to the
state pursuant to that portion of subsection (b)(3) of Section 104,
subsection (c) of Section 157, and subsection (d) of Section 160, of
Title 23 of the United States Code, that is allocated within the
state subject to subsection (d)(2) of Section 133 of Title 23 of the
United States Code. These funds shall be known as the regional
transportation enhancement funds. The department, the transportation
planning agencies, the county transportation commissions, and the
metropolitan planning organizations may do all things necessary in
their jurisdictions to secure and expend those federal funds in
accordance with the intent of federal law.
   (b) The regional transportation enhancement funds shall be
apportioned by the department to metropolitan planning organizations
designated pursuant to Section 134 of Title 23 of the United States
Code, and, in areas where none has been designated, to the
transportation planning agency designated pursuant to Section 29532
or 29532.1 of the Government Code. The funds shall be apportioned in
the manner and in accordance with the formula set forth in subsection
(d) of Section 160 of Title 23 of the United States Code, except
that the apportionment shall be among all areas of the state. Funds
apportioned under this subdivision shall remain available for three
federal fiscal years, including the federal fiscal year in which the
apportionment occurred.  
  SEC. 11.    Section 188 of the Streets and
Highways Code is amended to read:
   188.  (a) All federal and state funds to be allocated by the
commission, or expended by the department, for transportation
improvements under Section 164, except for purposes of subdivisions
(b) and (c) of that section, shall be programmed 40 percent in County
Group No. 1 and 60 percent in County Group No. 2.
   (b) This section shall be known and may be cited as the
Barnes-Mills-Walsh formula.  
  SEC. 12.    Section 188.8 of the Streets and
Highways Code is amended to read:
   188.8.  (a) From the funds programmed pursuant to Section 188 for
regional improvement projects, the commission shall approve programs
and program amendments, so that funding is distributed to each county
of County Group No. 1 and in each county of County Group No. 2 as
follows:
   (1) The commission shall compute all of the money to be expended
for regional transportation improvement projects in County Groups
Nos. 1 and 2, respectively, based on the fund estimate adopted under
Section 14524 of the Government Code and as provided in Section 188.
   (2) From the amount computed for County Group No. 1 in paragraph
(1) for the programming period the commission shall determine the
amount of programming for each county in the group based on a formula
that is based 75 percent on the population of the county to the
total population of County Group No. 1 and 25 percent on state
highway miles in the county to the total state highway miles in
County Group No. 1.
   (3) From the amount computed for County Group No. 2 in paragraph
(1) for the programming period the commission shall determine the
amount of programming for each county in the group based on a formula
that is based 75 percent on the population of the county to the
total population of County Group No. 2 and 25 percent on state
highway miles in the county to the total state highway miles in
County Group No. 2.
   (b) Notwithstanding subdivision (a), that portion of the county
population and state highway mileage in El Dorado and Placer Counties
that is included within the jurisdiction of the Tahoe Regional
Planning Agency shall be counted separately toward the area under the
jurisdiction of the Tahoe Regional Transportation Agency and may not
be included in El Dorado and Placer Counties. The commission shall
approve programs, program amendments, and fund reservations for the
area under the jurisdiction of the Tahoe Regional Transportation
Agency that shall be calculated using the formula described in
paragraph (2) of subdivision (a).
   (c) A transportation planning agency designated pursuant to
Section 29532 or 29532.1 of the Government Code, or a county
transportation commission created by Division 12 (commencing with
Section 130000) of the Public Utilities Code, may adopt a resolution
to pool its county share programming with any county or counties
adopting similar resolutions to consolidate its county shares for two
consecutive programming periods into a single share covering both
periods. A multicounty transportation planning agency with a
population of less than three million may also adopt a resolution to
pool the share of any county or counties within its region. The
resolution shall provide for pooling the county share programming in
any of the pooling counties for the new single share and shall be
submitted to the commission not later than May 1 immediately
preceding the commencement of the programming period.
   (d) For the purposes of this section, funds programmed shall
include the following costs pursuant to subdivision (b) of Section
14529 of the Government Code:
   (1) The amounts programmed or budgeted for both components of
project development in the original programmed year.
   (2) The amount programmed for right-of-way in the year programmed
in the most recent state transportation improvement program. If the
final estimate is greater than 120 percent or less than 80 percent of
the amount originally programmed, the amount shall be adjusted for
final expenditure estimates at the time of right-of-way
certification.
   (3) The engineer's final estimate of project costs, including
construction engineering, presented to the commission for approval
pursuant to Section 14533 of the Government Code in the year
programmed in the most recent state transportation improvement
program. If the construction contract award amount is less than 80
percent of the engineer's final estimate, excluding construction
engineering, the department shall notify the commission and the
commission may adjust its project allocation accordingly.
   (4) Project costs shown in the program, as amended, where project
allocations have not yet been approved by the commission, escalated
to the date of scheduled project delivery.
   (e) Project costs may not be changed to reflect any of the
following:
   (1) Differences that are within 20 percent of the amount
programmed for actual project development cost.
   (2) Actual right-of-way purchase costs.
   (3) Construction contract award amounts, except when those amounts
are less than 80 percent of the engineer's final estimate, excluding
construction engineering, and the commission has adjusted the
project construction allocation.
   (4) Changes in construction expenditures, except for supplemental
project allocations made by the commission.
   (f) For the purposes of this section, the population in each
county is that determined by the last preceding federal census, or a
subsequent census validated by the Population Research Unit of the
Department of Finance, at the beginning of each county share period.
   (g) For the purposes of this section, "state highway miles" means
the miles of state highways open to vehicular traffic at the
beginning of each programming period.
   (h) It is the intent of the Legislature that there is to be
flexibility in programming under this section and Section 188 so
that, while ensuring that each county will receive an equitable share
of state transportation improvement program funding, the types of
projects selected and the programs from which they are funded may
vary from county to county.
   (i) Individual county share shortfalls and surpluses at the end of
each programming period, if any, shall be carried forward and
credited or debited to the following programming period.
   (j) The commission, with the consent of the department, may
consider programming projects in the state transportation improvement
program in a county with a population of not more than 1,000,000 at
a level higher or lower than the county share, when the regional
agency either asks to reserve part or all of the county's share until
a future programming year, to build up a larger share for a higher
cost project, or asks to advance an amount of the share, in an amount
not to exceed 200 percent of the county's current share, for a
larger project, to be deducted from shares for future programming
years. After consulting with the department, the commission may
adjust the level of programming in the regional program in the
affected region against the level of interregional programming in the
improvement program to accomplish the reservation or advancement,
for the current state transportation improvement program. The
commission shall keep track of any resulting shortfalls or surpluses
in county shares.
   (k) Notwithstanding subdivision (a), in a region defined by
Section 66502 of the Government Code, the transportation planning
agency may adopt a resolution to pool the county share of any county
or counties within the region, if each county receives not less than
85 percent and not more than 115 percent of its county share for a
single county share programming period and 100 percent of its county
share over two consecutive county share programming periods. The
resolution shall be submitted to the commission not later than May 1,
immediately preceding the commencement of the county share
programming period with the submittal of the regional transportation
improvement program.
   (l) Federal funds used for federal demonstration projects that use
federal obligational authority otherwise available for other
projects shall be subtracted from the county share of the county
where the project is located.