INTRODUCED BY   Senators Lowenthal and Correa

                        FEBRUARY 19, 2010

   An act to add Chapter 9.6 (commencing with Section 2425) to
Division 3 of the Streets and Highways Code, relating to
transportation, and declaring the urgency thereof, to take effect


   SB 1371, as introduced, Lowenthal. 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. Under these
provisions, 25% of available funds are available for interregional
improvement projects nominated by the Department of Transportation,
subject to a requirement that 60% of these funds be available for
projects in nonurbanized areas on the interregional road system and
for intercity rail projects. The remaining 75% of available funds are
available for regional improvement projects nominated by regional
agencies. All funds programmed through the state transportation
improvement program process are subject to the north-south split, and
the regional improvement funds are further subject to the county
shares formula.
   Existing law establishes special procedures and formulas for
allocation and expenditure of federal transportation economic
stimulus funds received by the state in 2009.
   This bill would require the Department of Transportation to work
with local transportation agencies to develop a list of potential
projects that may be awarded within a 90-day period of the award to
the state of 2nd round federal transportation economic stimulus
funds. The bill would require the department to submit a monthly
status report to the Legislature, as specified, with respect to
certain milestones for expenditure of these funds. The bill would
make related legislative findings and declarations.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


  SECTION 1.  The Legislature finds and declares all of the
   (a) Congress is considering authorizing a second round of federal
economic stimulus funding that has the potential to bring $3.7
billion to California for investment in transportation
   (b) To ensure that this stimulus package provides immediate
economic relief by creating or saving jobs in the short-term, the
federal legislation is expected to include extremely short timelines
for project delivery that will pose significant challenges to state
and local agencies.
   (c) Despite a modest economic recovery, the statewide unemployment
rate remains above 12 percent, with some counties experiencing a
jobless rate above 20 percent.
   (d)  The state must stand ready to use all stimulus funds
available to it within the timelines provided by the second federal
economic stimulus act.
   (e) To this end, it is the intent of the Legislature to enact
legislation that does all of the following:
   (1) Expedites the process by which state and local transportation
agencies obligate and award federal funds, easing regulatory and
statutory hurdles where appropriate and in a manner that is
consistent with the mobility and environmental goals of the state.
   (2) Establishes an allocation formula that provides flexibility in
the use of funds and ensures geographic equity such that all areas
of the state benefit from the second federal economic stimulus act.
   (3) Articulates priorities for project selection that will assist
state and local agencies in reducing their backlogs of maintenance
and rehabilitation projects and enable Proposition 1B (2006)
projects, that may otherwise be delayed due to the fiscal environment
of the state, to move forward.
  SEC. 2.  Chapter 9.6 (commencing with Section 2425) is added to
Division 3 of the Streets and Highways Code, to read:

   2425.  This chapter may be cited as the Transportation Economic
Stimulus Act of 2010.
   2426.  (a) The department shall work with local transportation
agencies to develop a list of potential projects that may be awarded
within a 90-day period after the award of the second round of federal
transportation economic stimulus funds to the state. In doing so,
the department shall assess whether the project is included in the
federal transportation improvement program, has completed applicable
state and federal environmental review processes, and would have
sufficient funding from other sources to complete the project if
stimulus funds were provided.
   (b) The department shall submit, on a monthly basis, a status
report on the implementation of the federal stimulus act to the
Legislative Analyst's Office and the appropriate policy and fiscal
committees of the Legislature. This report shall identify each
project funded by the federal stimulus act and indicate whether it
has been certified, obligated, and awarded, and has had funds
disbursed for it. The report shall also indicate the percentage of
funds provided to state and local agencies in accordance with the
allocation formula established by this chapter has met each of these
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to maximize the opportunity for California to receive and
expend federal transportation economic stimulus funds, it is
necessary for this act to take effect immediately.