BILL NUMBER: AB 1229	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 4, 2011
	AMENDED IN ASSEMBLY  APRIL 11, 2011

INTRODUCED BY   Assembly Member Feuer

                        FEBRUARY 18, 2011

   An act to amend Section 14553.4 of the Government Code, relating
to transportation financing  , and making an appropriation
therefor  .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1229, as amended, Feuer. Transportation: financing: federal
highway grant anticipation notes.
   Existing law continuously appropriates the amounts specified in
the annual Budget Act as having been deposited in the State Highway
Account from federal transportation funds, and pledged by the
California Transportation Commission, to the Treasurer for the
purposes of issuing federal highway grant anticipation notes,
commonly known as GARVEE bonds, to fund transportation projects
selected by the commission. Existing law prohibits the Treasurer from
authorizing the issuance of the notes if the annual repayment
obligations of all outstanding notes in any fiscal year would exceed
15% of the total amount of federal transportation funds deposited in
the account for any consecutive 12-month period within the preceding
24 months.
   This bill would  increase the 15% limitation to 25%,
thereby making an appropriation. This bill, with respect to the
amount represented by the 25% limitation, would reserve 40% of that
amount to fund projects proposed by transportation planning agencies.
The notes for those projects would be secured by all federal
transportation funds deposited in the State Highway Account, but
would be repaid from specified federal funds designated for
allocation to and expenditure by the transportation planning
agencies. The bill would provide that a transportation planning
agency may not commit more than 50% of its share of apportionments of
the designated federal funds to annual debt service on the notes, as
specified. The bill would require the commission to approve these
project proposals upon receiving a communication from the Director of
Transportation that the associated debt service for the
transportation planning agency's region will not exceed the 50%
limitation and a communication from the Treasurer that the total debt
service on federal grant anticipation notes authorized will not
exceed the overall 25% limitation   authorize a
transportation planning agency, for purposes of funding
transportation projects from notes secured by federal transportation
funds, to commit up to 50% of its share of apportionments of
specified federal transportation funds that are apportioned to
transportation planning agencies. A transportation planning agency
electing to commit these federal funds to debt service on the notes
would be required to inform the Department of Transportation, the
commission, and the Treasurer  .
   Vote: majority. Appropriation:  yes   no
 . Fiscal committee: yes. State-mandated local program: no.


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

  SECTION 1.  Section 14553.4 of the Government Code is amended to
read:
   14553.4.  (a) The Treasurer may not authorize the issuance of
notes if the annual repayment obligations of all outstanding notes in
any fiscal year would exceed  25   15 
percent of the total amount of federal transportation funds deposited
in the State Highway Account in the State Transportation Fund for
any consecutive 12-month period within the preceding 24 months.

   (b) Of the amount represented by the 25-percent limitation in
subdivision (a), 40 percent shall be reserved for projects proposed
by transportation planning agencies for funding from notes secured by
all federal transportation funds deposited in the State Highway
Account, but to be repaid by federal regional surface transportation
program funds and federal congestion mitigation and air quality funds
that flow through the State Highway Account for use by
transportation planning agencies pursuant to Sections 182.6 and 182.7
of the Streets and Highways Code. A transportation planning agency
may not commit more than 50 percent of its share of apportionments of
Section 182.6 and 182.7 funds for any consecutive 12-month period
within the preceding 24 months to annual debt service on the notes.
The commission shall approve regionally funded project proposals
pursuant to this subdivision upon receiving a communication from the
Director of Transportation that the associated debt service for the
transportation planning agency's region will not exceed 50 percent of
its share of Section 182.6 and 182.7 funds and a communication from
the Treasurer that the total debt service on notes authorized
pursuant to this article will not exceed the 25-percent limitation
under subdivision (a). Approval by the commission constitutes a
pledge of federal funds pursuant to subdivision (a) of Section
14554.8.  
   (b) Consistent with the limitation in subdivision (a), a
transportation planning agency, for purposes of funding projects from
notes secured by federal transportation funds, may commit up to 50
percent of its share of apportionments of federal regional surface
transportation program funds and federal congestion mitigation and
air quality funds that flow through the State Highway Account for use
by transportation planning agencies pursuant to Sections 182.6 and
182.7 of the Streets and Highways Code. A transportation planning
agency electing under this subdivision to commit these federal funds
to debt service on the notes shall inform the department, the
commission, and the Treasurer.