BILL ANALYSIS SB 1371 Page 1 Date of Hearing: June 30, 2010 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair SB 1371 (Lowenthal) - As Amended: June 16, 2010 Policy Committee: TransportationVote:12-0 (Consent) Urgency: Yes State Mandated Local Program: No Reimbursable: SUMMARY This bill requires Caltrans to: 1)Work with local transportation agencies to develop a list of projects that could be awarded within 90 days of the state receiving funding in a second round of federal economic stimulus earmarked for transportation. 2)Report monthly, on a project-specific basis, on the status of implementing the federal stimulus, either to (a) the Legislative Analyst's Office and legislative fiscal and policy committees or (b) posting this information, or a link to the information, on the department's website. FISCAL EFFECT Minor absorbable special fund costs to Caltrans, which indicates that it is already required by federal law to prepare the information required by this bill. COMMENTS Background and Purpose . In February 2009, the President signed the American Recovery and Reinvestment Act, a $787 billion economic stimulus package intended to create jobs, save existing jobs, and invest in long-term economic growth. The federal government made available $48 billion nationally for a variety of discretionary grant and formula-based transportation programs. Of the formula-based funds, California received $2.57 billion for highways and $1.1 billion for transit. SB 1371 Page 2 Federal legislation in 2010 to establish a second round of stimulus funding has stalled in Congress, and it is unlikely that this legislation will move any further through the process. However, in the event that it does move, AB 1371 is intended to make it easier for transportation agencies and Caltrans to use federal economic stimulus funds on ready-to-go projects and to ensure no federal funds are forfeited for lack of use. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081