BILL NUMBER: AB 1164	CHAPTERED
	BILL TEXT

	CHAPTER  406
	FILED WITH SECRETARY OF STATE  OCTOBER 2, 2011
	APPROVED BY GOVERNOR  OCTOBER 2, 2011
	PASSED THE SENATE  SEPTEMBER 7, 2011
	PASSED THE ASSEMBLY  SEPTEMBER 8, 2011
	AMENDED IN SENATE  SEPTEMBER 1, 2011
	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) 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, 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
fund bond-funded projects pursuant to the Highway Safety, Traffic
Reduction, Air Quality, and Port Security Bond Act of 2006, if the
department has determined the loans will not impact the funding of
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 fund 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.

   Appropriation: yes.


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.
  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
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 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 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.
   (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) (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) In the case of local subvention funds controlled by a regional
transportation planning agency, the department may not make a loan
of funds under this section except at the request of the specific
regional transportation planning agency to which the funds were
previously allocated.
   (3) 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.
   (4) 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.