BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 854
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          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  








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            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.  








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          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