BILL NUMBER: AB 2098	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Miller

                        FEBRUARY 18, 2010

   An act to add Chapter 9.6 (commencing with Section 2430) to
Division 3 of the Streets and Highways Code, relating to
transportation.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2098, as introduced, Miller. Federal transportation economic
stimulus funds: 2nd round.
   Existing law generally provides for programming and allocation of
state and federal transportation capital improvement program funds
pursuant to the state transportation improvement program process
administered by the California Transportation Commission.
   Existing law establishes special procedures and formulas for
allocation and expenditure of federal transportation economic
stimulus funds awarded to the state in 2009. Under these provisions,
37.5% of these funds are required to be apportioned for expenditure
by the state to be programmed by the Department of Transportation,
and the remaining 62.5% of funds are required to be apportioned to
regional agencies.
   This bill would enact provisions to govern the expenditure of the
2nd round of federal transportation economic stimulus funds that may
be awarded to the state in 2010 pursuant to an unspecified federal
act, subject to appropriation by the Legislature. The bill would
provide for an unspecified division of the available funds between
state and regional agencies. The bill would restrict allocation of
the state portion of funds to projects in areas defined as
economically distressed under federal law. The bill would enact
various other requirements applicable to expenditure of the federal
funds.
   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.  Chapter 9.6 (commencing with Section 2430) is added to
Division 3 of the Streets and Highways Code, to read:
      CHAPTER 9.6.  SECOND ROUND FEDERAL TRANSPORTATION ECONOMIC
STIMULUS FUNDS


   2430.  This chapter may be cited as the Transportation Economic
Stimulus Act of 2010.
   2431.  The Legislature finds and declares all of the following:
   (a) Congress has enacted the ____ Act, which provides in part for
supplemental federal funding to the states for purposes of the
federal-aid highway program.
   (b) It is in the interest of the state to ensure that the highway
infrastructure investment funds apportioned to the state under the
federal act are fully obligated within the constraints of that act.
   (c) It is the intent of the Legislature that the department, in
consultation with the commission, regional transportation planning
agencies, counties, and cities, shall have sufficient authority to
make full and expeditious use of federal funds apportioned to the
state for economic stimulus.
   (d) It is the intent of the Legislature that, to the extent
allowable under the federal act, priority be given to the use of
stimulus funds available for expenditure to projects that put
Californians to work and provide needed economic stimulus throughout
the state. In particular, priority should be given to areas of the
state experiencing the most severe economic hardships and distress
associated with the current recession.
   (e) It is the intent of the Legislature that highway
infrastructure investment funds made available under the ____ Act are
used to contribute to a transportation system that is in sound
structural condition, accommodates all users, is environmentally
sustainable, and allows for the efficient mobility of goods and
people.
   (f) It is the intent of the Legislature that the deadlines for
obligating and liquidating funds established by the ____ Act apply to
all federal funds subject to this chapter.
   (g) It is the intent of the Legislature that the recipients of
highway infrastructure investment funds made available under the
federal act, including state, regional, and local agencies, shall
adhere to principles and policies that ensure government oversight
and management of the contracting process to ensure taxpayer funds
are spent wisely; contracts are not wasteful, inefficient, or subject
to misuse; unnecessary no-bid and cost-plus contracts are avoided;
and contracts are awarded according to the best interests of
California taxpayers.
   (h) As used in this chapter, "federal act" shall mean the ____
Act.
   2432.  (a) The funds subject to this chapter shall be available
for obligation and expenditure by the dates specified in the federal
requirements implementing the federal act, upon appropriation by the
Legislature.
   (b) It is the intent of the Legislature to allow for such
flexibility as is necessary to permit the successful implementation
of this chapter.
   2433.  (a) The federal highway infrastructure investment funds
made available to the state under the formula apportionments of the
federal act shall be considered part of the surface transportation
program as set forth in paragraphs (3) and (4) of subdivision (d) of
Section 133 of Title 23 of the United States Code. These formula
funds shall be apportioned ____ percent for expenditure by the state
to be programmed by the department and allocated by the commission
only in areas defined as economically distressed according to federal
law, and ____ percent to the metropolitan planning organizations,
county transportation commissions, and regional transportation
planning agencies in accordance with subdivisions (b) and (c) of
Section 182.6.
   (b) Funds available to be programmed by the department pursuant to
subdivision (a) shall be programmed for eligible projects consistent
with the federal act and this chapter.
   (c) It is the intent of the Legislature that at least ____ percent
of the funds apportioned to a metropolitan planning organization,
county transportation commission, or regional transportation planning
agency be available for suballocation by that entity to a city,
county, or city and county for projects that meet the requirements of
the federal act and this chapter.
   (1) Any funds suballocated by a metropolitan planning
organization, county transportation commission, or regional
transportation planning agency that will not be obligated by a city,
county, or city and county by the deadlines specified in the federal
act shall be reallocated and available for expenditure as determined
by the metropolitan planning organization, county transportation
commission, or regional transportation planning agency.
   (2) A metropolitan planning organization, county transportation
commission, or regional transportation agency that suballocates funds
to a city, county, or city and county under this chapter shall
establish reporting procedures for the city, county, or city and
county to ensure that funds are obligated and expended in accordance
with the federal act and this chapter.
   (d) (1) A metropolitan planning organization, county
transportation commission, or regional transportation planning agency
receiving funds under this chapter shall notify the department of
the projected amount of obligational authority that the entity
intends to use, including for funds that the entity suballocated to a
city, county, or city and county pursuant to subdivision (c). The
report shall include, but not be limited to, a list of projects that
will be obligated by the following deadlines:
   (A) By ____ 2010, for the funds required to be obligated within
120 days of federal apportionment.
   (B) By ____ 2010, for any funds that will not be obligated within
one year of federal apportionment.
   (2) Any federal obligational authority that will not be used shall
be redistributed by the department to other projects in a manner
that ensures that the state will continue to compete for and receive
increased obligational authority during the federal redistribution of
obligational authority. To the extent practical, the funds shall be
obligated within the geographic areas relinquishing the obligational
authority.
   (e) Funds apportioned by this chapter are not eligible to be
exchanged for nonfederal State Highway Account funds as provided in
subdivision (g) or (h) of Section 182.6.
   (f) The public participation requirements under Title 23 of the
United States Code shall apply to all transportation projects using
federal funds made available pursuant to this chapter.
   2434.  (a) The department, metropolitan planning organizations,
county transportation commissions, regional transportation planning
agencies, counties, cities, and a city and county shall comply with
all reporting requirements to the Federal Highway Administration
(FHWA) established in federal law regarding funds made available
under the federal act.
   (b) In complying with the requirements of subdivision (a), the
department, metropolitan planning organizations, county
transportation commissions, regional transportation planning
agencies, counties, cities, and a city and county shall provide the
same data they provide to the FHWA to the department under the same
timelines required by the FHWA or federal law. Regional entities
shall include in the data provided to the department information on
the use of federal funds made available under the federal act that
were suballocated to cities and counties within their jurisdiction.
   (c) The department, within 30 days of receiving the information
required pursuant to subdivision (b), shall compile the information
and submit a report to the budget committees and policy committees
with jurisdiction over transportation matters in each house of the
Legislature.