BILL ANALYSIS SB 854 Page 1 SENATE THIRD READING SB 854 (Budget and Fiscal Review Committee) As Amended October 7, 2010 2/3 vote. Urgency SENATE VOTE :Vote not relevant SUMMARY : Enacts various changes in statute necessary to implement the 2010-11 State Budget for Transportation. Specifically, this bill : 1)Requires the California Transportation Commission (CTC) to report to the Legislature semiannually on the expenditure of Transportation Corridor Improvement Funds (TCIF) for railroad projects. Additionally, requires the CTC to report and provide a copy of any memorandum of understanding executed between a railroad company and any state or local transportation agency where TCIF funds are a funding source for the project. 2)Provides cities and counties a one-year extension to expend Proposition 1B Local Streets and Roads funds for any year in which Highway Users Tax Account (HUTA) funds for local transportation projects are borrowed, deferred, or shifted. 3)Extends the expenditure period for recipients of Prop 1B bond funds for regional public waterborne transit from three years to four years. Proposition 1B provides $250 million to Regional public waterborne transit agencies. The funds are available to build ferry terminals, among other uses. 4)Directs about $112 million in savings from lower bond debt service costs from transportation-related general obligation bonds in 2010-11 to the General Fund (GF). 5)Extends the sunset from June 30, 2011, to June 30, 2014 for cashflow borrowing among transportation special funds. The transportation special funds that are eligible for cashflow borrowing are the State Highway Account, the Public Transportation Account, the Transportation Investment Fund, the Transportation Deferred Investment Fund, and the Traffic Congestion Relief Fund. 6)Authorizes the Governor to appoint six management level exempt SB 854 Page 2 positions to the High Speed Rail Authority (HSRA) upon the recommendation of the executive director. Compensation for these positions shall not exceed the highest comparable compensation for a position of that type, as established through a salary survey, and shall require approval of the Department of Personnel Administration. 7)Requires the HSRA to report biannually to the Legislature, beginning March 1, 2011, on the status of development and implementation of intercity high-speed rail service. 8)Requires that the members of the High Speed Rail Independent Peer Review Group be designated by November 1, 2010, and requires that group to designate a chairperson. Additionally, requires the HSRA to designate a liaison for the Independent Peer Review Group. Lastly, authorizes the members of the peer review group to collect a $100 per-day per diem that cannot exceed $500 per month. 9)Requires the California Department of Transportation (Caltrans) to report annually to the Legislature with supplemental information on the Capital Outlay Support budget request, including anticipated and realized project costs and schedules for the Capital Outlay Support Program. 10)Provides additional clarification that local governments are not subject to the same maintenance-of-effort and other requirements under Proposition 42 when they are apportioned fuel excise tax revenues. 11)Places in statute the California Highway Patrol (CHP) internal policy for retaining information gathered from license plate reader (LPR) systems. Prohibits the retention of data for more than 72 hours for all instances when the data is not being used for legitimate law enforcement purposes. Additionally, prohibits the CHP from selling LPR data and requires that CHP monitor its use internally. 12)Requires the Department of Motor Vehicles (DMV) to update application forms to provide a space for an applicant to indicate whether they served in the armed forces. Data collected from willing veterans will be shared with the Department of Veteran's affairs in order to identify if they are eligible for federal benefits. SB 854 Page 3 13)Authorizes Caltrans to lease space for advertisements on digital messaging signs on the state highway system that are currently used for traveler information. These changes in statute would require that Caltrans receive a federal waiver before entering into any contract for advertisements on digital messaging signs and would require that any such contract be provided to the legislature for a 30-day review prior to enactment. 14)Urgency Clause. Declares this bill take effect immediately as an urgency statute. Analysis Prepared by : Keali'i Bright / BUDGET / (916) 319-2099 FN: 0007189