BILL NUMBER: AB 427	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 13, 2011
	AMENDED IN SENATE  JUNE 29, 2011
	AMENDED IN ASSEMBLY  MARCH 29, 2011

INTRODUCED BY   Assembly Member John A. Pérez

                        FEBRUARY 14, 2011

   An act to amend Sections 8879.57 and 8879.61 of the Government
Code, relating to transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 427, as amended, John A. Pérez. Transportation bond funds:
transit system safety.
   Existing law, the Highway Safety, Traffic Reduction, Air Quality,
and Port Security Bond Act of 2006, authorizes the issuance of
$19.925 billion of general obligation bonds for specified purposes.
Existing law requires the deposit of $1 billion of the bond proceeds
in the Transit System Safety, Security, and Disaster Response Account
to be used, upon appropriation, for capital projects that provide
increased protection against a security and safety threat, and for
capital expenditures to increase the capacity of transit operators to
develop disaster response transportation systems that can move
people, goods, and emergency personnel and equipment in the aftermath
of a disaster impairing that movement. Existing law designates the
California Emergency Management Agency as the administrative agency
for this account and requires the allocation of 60% of the funds in
the account for capital expenditures to transit operators and other
transportation agencies using the allocation formulas applicable to
the State Transit Assistance Program, and 15% of the funds for
capital expenditures to specified intercity passenger rail systems
and commuter rail systems. Existing law requires allocation of the
60% share of funds based on 2 different formulas also used for the
State Transit Assistance program, with 50% of available funds
allocated based on population and the remaining 50% based on operator
revenue. Existing law provides that entities that receive bond funds
from the 15% share for intercity passenger rail systems and commuter
rail systems are not eligible for the 60% share of funds.
   This bill would provide that commuter rail operators eligible to
receive State Transit Assistance funds are also eligible to receive
funds from the 60% share of Transit System Safety, Security, and
Disaster Response Account funds. The bill would require funds that
otherwise would be allocated based on operator revenue for the
Southern California Regional Rail Authority (SCRRA) to be allocated
to the applicable county transportation commission. The bill would
authorize the applicable commission to allocate those funds to
eligible purposes, including eligible projects of the SCRRA, or to
suballocate those funds to the SCRRA. This bill would delete the
provision making intercity and commuter rail entities receiving bond
funds from the 15% share of funds ineligible for the 60% share of
funds.
    The bill would require an entity eligible to receive allocations
of any of those funds to submit a document within a specified time to
the California Emergency Management Agency that indicates the intent
to use the funds  , the project or projects for which the funds
will be used, and a schedule of funds to be drawn down,  and
would, if the document is not submitted, authorize the California
Emergency Management Agency to reallocate the funds. The bill would
require the California Emergency Management Agency to notify a
transportation planning agency if funds allocated to an entity within
the region of the transportation planning agency are being
reallocated and, if the transportation planning agency provides a
document to the California Emergency Management Agency indicating its
intent to distribute the funds to transit operators or rail
operators, would require the funds to be allocated to the
transportation planning agency. The bill would authorize the
California Emergency Management Agency to allocate the funds on a
competitive basis to an eligible entity in a different region of the
state if the transportation planning agency does not provide the
required documentation, as specified.
   The bill would require the California Emergency Management Agency,
by May 1 of each year, to report to specified committees of the
Legislature and to the Legislative Analyst's Office with specified
information regarding projects selected for funding from the account,
including a list of transit entities that have not used those
allocated funds.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 8879.57 of the Government Code is amended to
read:
   8879.57.  Funds made available, upon appropriation of the
Legislature, from the Transit System Safety, Security, and Disaster
Response Account, created in subdivision (h) of Section 8879.23,
shall be allocated as follows:
   (a) (1) Sixty percent of available funds shall be allocated for
capital expenditures to agencies and transit operators eligible to
receive State Transit Assistance funds using the formula in Sections
99313 and 99314 of the Public Utilities Code, including commuter rail
operators eligible to receive State Transit Assistance funds. Of
these funds, 50 percent shall be allocated to eligible agencies using
the formula in Section 99314 of the Public Utilities Code, and 50
percent shall be allocated to eligible agencies using the formula in
Section 99313 of the Public Utilities Code, subject to the provisions
governing funds allocated under those sections. Funds allocated to
the Metropolitan Transportation Commission using the formula in
Section 99313 of the Public Utilities Code shall be suballocated to
transit operators within its jurisdiction using the formula in
Section 99314 of the Public Utilities Code. In the region served by
the multicounty transportation planning agency described in Section
130004 of the Public Utilities Code, funds that are to be allocated
using the formula in Section 99314 of the Public Utilities Code for
the Southern California Regional Rail Authority shall be allocated to
the applicable county transportation commission in each county
served by the authority within that region. The county transportation
commission, subject to the applicable provisions governing funds
allocated under that section that are consistent with this section,
shall use or allocate the funds for eligible capital expenditures as
described in paragraph (2), including, but not limited to, eligible
expenditures on the system of the Southern California Regional Rail
Authority. The county transportation commission may suballocate these
funds to the Southern California Regional Rail Authority for those
purposes.
   (2) Eligible capital expenditures shall include either of the
following:
   (A) A capital project that provides increased protection against a
security or safety threat, including, but not limited to, the
following:
   (i) Construction or renovation projects that are designed to
enhance the security of public transit stations, tunnels, guideways,
elevated structures, or other transit facilities and equipment.
   (ii) Explosive device mitigation and remediation equipment.
   (iii) Chemical, biological, radiological, and nuclear explosives
search, rescue, or response equipment.
   (iv) Interoperable communications equipment.
   (v) Physical security enhancement equipment.
   (vi) The installation of fencing, barriers, gates, or related
security enhancements that are designed to improve the physical
security of transit stations, tunnels, guideways, elevated
structures, or other transit facilities and equipment.
   (vii) Other safety- or security-related projects approved by the
California Emergency Management Agency.
   (B) Capital expenditures to increase the capacity of transit
operators to develop disaster response transportation systems that
can move people, goods, and emergency personnel and equipment in the
aftermath of a disaster impairing the mobility of goods, people, and
equipment.
   (b) (1) Twenty-five percent of available funds shall be allocated
for capital expenditures to regional public waterborne transit
agencies authorized to operate a regional public water transit
system, including the operation of water transit vessels, terminals,
and feeder buses, and not otherwise eligible to receive State Transit
Assistance funds as of the effective date of this article. Funds
shall be allocated for eligible capital expenditures that enhance the
capacity of regional public waterborne transit agencies to provide
disaster response transportation systems that can move people, goods,
and emergency personnel and equipment in the aftermath of a disaster
or emergency.
   (2) Eligible capital expenditures include, but are not limited to,
the construction or acquisition of new vessels, the capital
improvement or construction of docks, terminals, or other waterborne
transit facilities, the purchase of related equipment, and the
construction of fueling facilities. A project shall (A) provide
capital facilities and equipment to a regional public waterborne
transit system that enhances the ability of the system to respond to
a regional emergency, (B) be included in a regional plan, including,
but not limited to, a regional plan for waterborne transit expansion
or disaster response preparedness, and (C) provide maximum
flexibility in responding to disasters or emergencies.
   (c) (1) Fifteen percent of available funds shall be made available
for capital expenditures to the intercity passenger rail system
described in Section 14035 and to the commuter rail systems operated
by the entities specified in Section 14072 and in Section 99314.1 of
the Public Utilities Code.
   (2) Eligible capital expenditures shall include either of the
following:
   (A) A capital project that provides increased protection against a
security or safety threat, including, but not limited to, the
following:
   (i) Construction or renovation projects that are designed to
enhance the security of public transit stations, tunnels, guideways,
elevated structures, or other transit facilities and equipment.
   (ii) Explosive device mitigation and remediation equipment.
   (iii) Chemical, biological, radiological, and nuclear explosives
search, rescue, or response equipment.
   (iv) Interoperable communications equipment.
   (v) Physical security enhancement equipment.
   (vi) The installation of fencing, barriers, gates, or related
security enhancements that are designed to improve the physical
security of transit stations, tunnels, guideways, elevated
structures, or other transit facilities and equipment.
   (vii) Other safety- or security-related projects approved by the
California Emergency Management Agency.
   (B) Capital expenditures to increase the capacity of transit
operators to develop disaster response transportation systems that
can move people, goods, and emergency personnel and equipment in the
aftermath of a disaster impairing the mobility of goods, people, and
equipment.
   (d) (1) An entity that is eligible to receive funds pursuant to
subdivision (a) or (c) shall, within 45 days of the date the
Controller makes public the list of eligible recipients pursuant to
Section 8879.58, provide a document to the California Emergency
Management Agency that indicates the intent to use those funds  ,
the project or projects for which the funds will be used, and a
schedule of funds to be drawn down  . If the entity does not
submit the document required under this paragraph, the funds
allocated to the entity pursuant to subdivision (a) or (c) shall be
reallocated by the California Emergency Management Agency in
accordance with paragraph (2). This paragraph also applies to transit
operators receiving a suballocation from a transportation planning
agency, in which case the operator rather than the transportation
planning agency is required to provide the document.
   (2) The California Emergency Management Agency shall notify the
transportation planning agency if funds allocated to an entity within
the region of the transportation planning agency are being
reallocated pursuant to paragraph (1). The transportation planning
agency shall have 30 days to provide a document to the California
Emergency Management Agency indicating its intent to distribute those
funds to transit operators or rail operators for purposes authorized
under subdivision (a) or (c). An agency providing that document
shall receive an allocation of the funds. If the transportation
planning agency does not provide the document within 30 days, the
California Emergency Management Agency may allocate the funds on a
competitive basis to an entity in a different region of the state
that is an eligible entity under subdivision (a) or (c). An eligible
entity that is notified that it will be awarded these funds shall, as
a condition of receiving the funds, satisfy the requirements of
paragraph (1) within 45 days of being advised of the reallocation. As
used in this subdivision, "transportation planning agency" includes
the county transportation commission in counties that have such a
commission. 
   (3) The formula that applies to State Transit Assistance funds
shall not apply to a reallocation of funds under this subdivision.
 
  SEC. 2.    Section 8879.61 of the Government Code
is amended to read:
   8879.61.  (a) Entities described in subdivisions (a), (b), and (c)
of Section 8879.57 receiving an allocation of funds pursuant to this
article shall expend those funds within three fiscal years of the
fiscal year in which the funds were allocated. Funds remaining
unexpended thereafter shall revert to the California Emergency
Management Agency, as applicable, for reallocation in subsequent
fiscal years.
   (b) Entities that receive grant awards from funds allocated
pursuant to subdivision (b) of Section 8879.57 are not eligible to
receive awards from the funds allocated pursuant to subdivision (a)
of Section 8879.57.
   (c) Funds appropriated for the program established by this article
in the Budget Act of 2007 shall be allocated consistent with the
allocation schedule established in Section 8879.57.
   (d) On or before May 1 of each year, the California Emergency
Management Agency shall report to the Senate Committee on Budget and
Fiscal Review, the Assembly Committee on Budget, the Senate Committee
on Transportation and Housing, the Assembly Committee on
Transportation, and the Legislative Analyst's Office on its
activities under this article. The report shall include a summary of
the projects selected for funding during the fiscal year in which
awards were made, the status of projects selected for funding in
prior fiscal years, and a list of all transit entities that have not
used funds allocated to the transit entities pursuant to Section
8879.57. 
   SEC. 2.    Section 8879.61 of the  
Government Code   is amended to read: 
   8879.61.  (a) (1) Entities described in subdivisions (a), (b), and
(c) of Section 8879.57 receiving an allocation of funds pursuant to
this article shall expend those funds within three fiscal years of
the fiscal year in which the funds were allocated. Funds remaining
unexpended thereafter shall revert to the California Emergency
Management Agency for reallocation under this article in subsequent
fiscal years.
   (2) Notwithstanding paragraph (1), for an allocation of funds made
prior to June 30, 2011, to an entity described in subdivision (b) of
Section 8879.57, that entity shall have four fiscal years from the
last day of the fiscal year in which the funds were received by that
entity to expend those funds.
   (b) Entities that receive grant awards from funds allocated
pursuant to  subdivisions   subdivision 
(b)  or (c)  of Section 8879.57 are not eligible to
receive awards from the funds allocated pursuant to subdivision (a)
of Section 8879.57.
   (c) Funds appropriated for the program established by this article
in the Budget Act of 2007 shall be allocated consistent with the
allocation schedule established in Section 8879.57. 
   (d) On or before May 1 of each year, the California Emergency
Management Agency shall report to the Senate Committee on Budget and
Fiscal Review, the Assembly Committee on Budget, the Senate Committee
on Transportation and Housing, the Assembly Committee on
Transportation, and the Legislative Analyst's Office on its
activities under this article. The report shall include a summary of
the projects selected for funding during the fiscal year in which
awards were made, the status of projects selected for funding in
prior fiscal years, and a list of all transit entities that have not
used funds allocated to the transit entities pursuant to Section
8879.57.