BILL NUMBER: AB 1229	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 27, 2011
	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.


	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  , subject to the approval of the commission
and after notification to the Department of Transportation  
and the Treasurer,  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: 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 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) Consistent with the limitation in subdivision (a)  and
subject to the approval of the commission, after notice to the
department and the Treasurer  , 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.