BILL NUMBER: AB 1164 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 15, 2011
AMENDED IN SENATE JULY 12, 2011
AMENDED IN SENATE JUNE 28, 2011
AMENDED IN ASSEMBLY APRIL 7, 2011
INTRODUCED BY Assembly Member Gordon
FEBRUARY 18, 2011
An act to amend Section 8879.77 of, and to add and
repeal Article 13 (commencing with Section 8879.79) to
of Chapter 12.491 of Division 1 of Title 12 of
, the Government Code, relating to transportation, and
making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1164, as amended, Gordon. Federal transportation funds.
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.
Existing law provides for allocation of certain other
transportation capital improvement funds outside the state
transportation improvement program process, including federal
regional surface transportation improvement program funds, state bond
funds, funds set aside for state highway rehabilitation under the
state highway operation and protection program, and funds from
various other sources.
Existing law authorizes the Department of Transportation, with the
approval of the Director of Finance, to make loans from the State
Highway Account of certain federal transportation economic stimulus
funds to advance bond-funded projects pursuant to the Highway Safety,
Traffic Reduction, Air Quality, and Port Security Bond Act of 2006,
as specified.
This bill would enact similar provisions authorizing the
department, until September 30, 2015, to make loans from the State
Highway Account of other specified federal transportation funds to
advance fund bond-funded projects
pursuant to the Highway Safety, Traffic Reduction, Air Quality, and
Port Security Bond Act of 2006 that meet certain
requirements , if the department has determined the
loans will not impact the funding other programs or projects, as
specified, and only under circumstances in which federal
funds might otherwise be lost, as specified . The bill would
appropriate those federal transportation funds in the State Highway
Account for these purposes and would require those funds to be
obligated to advance the bond-funded projects, as specified. The bill
would require the loans to be repaid to the State Highway Account
within 3 years from the proceeds of bonds sold pursuant to the bond
act and would provide for the appropriation of those repaid funds to
the department for use on projects in the state highway operation and
protection program or the local assistance program, as specified.
The bill would require the department to report to the Joint
Legislative Budget Committee each year that federal transportation
funds are loaned pursuant to these provisions.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 8879.77 of the
Government Code is amended to read:
8879.77. (a) The department, with the approval of the Director of
Finance, may make a loan or loans from the State Highway Account of
federal funds made available to it pursuant to subparagraph (B) of
paragraph (2) of subdivision (b) of Section 2423 of the Streets and
Highways Code for purposes of advancing a project, or a portion of a
project, that has been programmed, on or before February 17, 2009, to
be funded by Chapter 12.49 (commencing with Section 8879.20) and
that is ready to be obligated within 120 days of federal
apportionment. The board, as defined in subdivision (a) of Section
8879.22, may request the department to make a loan or loans. The
aggregate amount of the request shall not exceed the amount of the
unsold bonds that the committee, as defined in subdivision (b) of
Section 8879.22, has, by resolution, authorized to be sold, less any
amount loaned pursuant to Section 8879.31 or 8879.79 or
withdrawn pursuant to Section 8879.32. Any amount loaned shall be
deposited in the fund, as defined by subdivision (c) of Section
8879.22, and shall be transferred to the appropriate account for the
project, or portion of a project, being advanced. Contracts for
projects to be advanced with loan funds shall be awarded within 180
days of federal apportionment. The loan or loans shall be repaid
without interest to the State Highway Account from the proceeds of
bonds sold pursuant to Chapter 12.49 (commencing with Section
8879.20). The board shall execute any documents as required by the
department to obtain and repay the loan or loans.
(b) Federal funds made available to the department pursuant to
subparagraph (B) of paragraph (2) of subdivision (b) of Section 2423
of the Streets and Highways Code, except for funds to be loaned to
eligible projects described in Section 8879.52, shall be allocated in
the manner provided in Section 188 of the Streets and Highways Code.
A loan may not be made pursuant to subdivision (a) if it would
necessarily result in the aggregate of those federal funds, excluding
funds to be loaned to eligible projects described in Section
8879.52, being allocated contrary to this subdivision.
(c) Upon repayment of a loan made pursuant to subdivision (a),
those funds are hereby appropriated to the department for use on
projects in the state highway operations and protection program.
SECTION 1. SEC. 2. Article 13
(commencing with Section 8879.79) is added to Chapter 12.491 of
Division 1 of Title 12 of the Government Code, to read:
Article 13. Federal Transportation Funds
8879.79. (a) Notwithstanding any other provision of law, the
department, with the approval of the Director of Finance and the
California Transportation Commission, may make a loan or loans from
the State Highway Account of federal funds made available to it
pursuant to Title 23 of the United States Code for purposes of
advancing funding a project, or a
portion of a project, that has been programmed ,
to be funded by Chapter 12.49 (commencing with Section 8879.20). The
department may make a loan of federal funds under this section only
if it has determined that the loan of those funds will not impact the
department's ability to fund programmed projects delivered under the
State Highway Operations and Protection Program or the
State Transportation Improvement Program. The board, as defined in
subdivision (a) of Section 8879.22, may request the department to
make a loan or loans. state highway operation and
protection program, the state transportation improvement program, or
any program or project funded with local subvention funds, including,
but not limited to, projects contained in the report submitted to
the department pursuant to subdivision (f) of Section 182.6 of the
Streets and Highways Code. The aggregate amount of the
request loan shall not exceed the amount of the
unsold bonds that the committee, as defined in subdivision (b) of
Section 8879.22, has, by resolution, authorized to be sold, less any
amount loaned pursuant to Section 8879.31 or 8879.77 or
withdrawn pursuant to Section 8879.32. Federal funds loaned under
this section are hereby appropriated for that purpose, and shall be
obligated directly to the project or projects funded under this
section. That obligation shall be considered a loan of federal funds
as authorized by this section. The loan or loans shall be repaid
without interest to the State Highway Account from the proceeds of
bonds sold pursuant to Chapter 12.49 (commencing with Section
8879.20) within three years of the date of the original
loan. The board shall execute any documents as required by the
department to obtain and repay the loan or loans.
loan.
(b) (1) Except as specified in paragraph (2), upon repayment of a
loan made pursuant to subdivision (a), those funds are hereby
appropriated to the department for use on projects in the state
highway operation and protection program.
(2) If a loan of funds pursuant to subdivision (a) is made from
local subvention funds, the funds received for repayment of the loan
are hereby appropriated to the department for use in the local
assistance program consistent with the manner in which the loaned
federal funds would have otherwise been used.
(c) Federal funds loaned under this section shall be limited by
the department as necessary to ensure that priority, to the extent
allowable under federal law, is given to the use of federal funds for
projects that repair or rehabilitate the existing transportation
system and for state transportation improvement program projects.
(c) (1) The department shall make loans under this section only
under circumstances in which federal funds might otherwise be lost to
the state. Those circumstances may include, but are not limited to,
significant unplanned project savings, delayed project delivery, or a
change in federal funding.
(2) Nothing in this section shall be construed to change or
supersede the department's normal guidelines and procedures for
managing obligation authority or the obligation of federal funds.
(3) Nothing in this section shall be construed to give priority to
projects funded by Chapter 12.49 (commencing with Section 8879.20)
over state or local projects planned to be funded with federal funds.
(d) Within 45 days after the end of each fiscal year in which the
loan authority under subdivision (a) has been exercised, the
department shall report to the Joint Legislative Budget Committee on
the loans made and the methodology used for selecting the projects
funded.
(e) The loan authority provided by this section shall be available
only until September 30, 2015.
(f) This article shall become inoperative when all loans are
repaid pursuant to subdivision (a), and shall be repealed on January
1, 2019, unless a later enacted statute that is enacted before
January 1, 2019, deletes or extends the dates on which it becomes
inoperative or is repealed.