BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1164|
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THIRD READING
Bill No: AB 1164
Author: Gordon (D)
Amended: 9/1/11 in Senate
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 9-0, 7/5/11
AYES: DeSaulnier, Gaines, Harman, Huff, Kehoe, Lowenthal,
Pavley, Rubio, Simitian
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/15/11
AYES: Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley,
Steinberg
NO VOTE RECORDED: Price, Runner
ASSEMBLY FLOOR : 76-1, 6/2/11 - See last page for vote
SUBJECT : Federal transportation funds
SOURCE : Department of Transportation
DIGEST : This bill authorizes, until September 30, 2015,
the Department of Transportation to make loans of federal
funds deposited in the State Highway Account to advance
projects funded by Proposition 1B.
Senate Floor Amendments of 9/1/11 require regional
transportation planning agencies to request the Department
of Transportation to loan federal highway funds in the
State Highway Account for advancing bond funded highway
projects in their areas of jurisdiction.
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ANALYSIS : California has two major capital outlay
programs for transportation investments: The State
Transportation Improvement Program (STIP) and the State
Highway Operations and Protection Program (SHOPP). The
STIP is the states' five-year transportation capital outlay
program, which is updated and adopted by the California
Transportation Commissioner (CTC) every two years.
Regional agencies program 75 percent of the STIP revenue
and the Department of Transportation (Caltrans) programs 25
percent. The projects in the STIP are typically capacity
increasing projects. The SHOPP is the state's ten-year
highway rehabilitation program, which the CTC adopts every
two years. Some Proposition 1B, the 2006 $19.925 billion
state transportation bond, included programs that are
within the STIP.
Existing law authorizes Caltrans, with the approval of the
Director of Finance, to loan funds from the American
Recovery and Reinvestment Act of 2009 to fund Proposition
1B bond projects that are ready for construction, but for
which bond funds are unavailable.
This bill:
1. Authorizes Caltrans make a loan from federal
transportation funds for purposes of advancing a project
that is programmed to receive an allocation of
Proposition 1B general obligation bond funds, under
specified conditions.
2. Requires the loan be repaid without interest from the
proceeds of bonds sold pursuant to Proposition 1B within
three years.
3. Appropriates funds received as repayment to Caltrans for
use in the local assistance program, in a manner in
which the federal funds would have otherwise been used,
or for use on projects in the SHOPP.
4. Prohibits Caltrans loaning federal funds passed through
by the State to RTPAs to fund an unfunded Proposition 1B
project in an regional transportation planning agencies
(RTPA's) areas of jurisdiction, unless requested by the
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RTPA.
5. Requires Caltrans to report to the Legislature on the
loans made and methodology for selecting projects within
45 days of the end of the fiscal year.
6. Sunsets this loan authority on September 30, 2015.
Comments
This bill ensures that there is a steady stream of
transportation projects going to construction even when
bond funds are unavailable. This bill achieves this in two
ways. First, because of the difficulty the state is having
in selling bonds, the stream of Proposition 1B bond revenue
is unpredictable. Nevertheless, there are projects sitting
on the shelf ready to go to construction. This bill
addresses this issue by allowing Caltrans to borrow federal
funds to commence the projects. A second reason put
forward by the bill's sponsor, Caltrans, is that this bill
enables the state, at the end of the federal fiscal year,
to commit any unobligated federal funds that the state
would be at risk of losing to unfunded, but read-to-go,
bond projects. In addition, if other states forfeit
federal funds, California will be in a position to claim
them, under the provisions of federal law.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13
2013-14 Fund
Maximize use of no new
costs, potential savings by Federal*
federal funds preventing a loss of federal funds
Caltrans/DOF/CTC minor
administrative costs Special**
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*Federal funds on deposit in the State Highway Account
**State Highway Account
SUPPORT : (Verified 9/1/11)
Department of Transportation (source)
ASSEMBLY FLOOR :
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill
Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani,
Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove,
Hagman, Halderman, Harkey, Hayashi, Roger Hernández,
Hill, Huber, Hueso, Huffman, Jeffries, Jones, Knight,
Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza,
Miller, Mitchell, Monning, Morrell, Nestande, Nielsen,
Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva,
Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. Pérez
NOES: Norby
NO VOTE RECORDED: Conway, Gorell, Hall
JJA:do 9/1/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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