BILL ANALYSIS                                                                                                                                                                                                    

                                                                  SB 1371
                                                                  Page  1

          Date of Hearing:   June 30, 2010

                                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:               


          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.


           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