BILL NUMBER: AB 1229 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 21, 2011
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 Sections
14552.2, 14553, and 14553.7 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 defines an "eligible
project" for these purposes as the federally funded portion of a
highway or other transportation project that has been designated for
accelerated construction by the commission, and increases the
capacity, reduces the travel time, or provides long-life
rehabilitation of the key bridges and roadways of a corridor or
gateway for interregional travel and movement of goods.
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.
provide that an "eligible project" may include projects programmed by
a regional transportation planning agency using its share of
apportionments of federal regional surface transportation program
funds or congestion mitigation and air quality funds, as specified.
The bill would authorize no more than 50% of bonding capacity of
GARVEE bonds from being made available for these projects and would
require the commission to require a regional transportation planning
agency to commit to repaying the state for debt service if that
agency's share of federal regional surface transportation program
funds or federal congestion mitigation and air quality funds is
insufficient to repay the GARVEE bonds or if a portion of
the project costs is ineligible for federal funding. The bill would,
for such a repayment by a regional transportation planning agency,
authorize the commission to amend into the State Transportation
Improvement Program some or all of the funds necessary for the
repayment to be counted against the county share of State
Transportation Improvement Program funds for the county in which the
project is located. By expanding the types of projects for which
GARVEE bonds may be used, the bill would make an appropriation.
Vote: majority. Appropriation: no yes
. Fiscal committee: yes. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 14552.2 of the
Government Code is amended to read:
14552.2. (a) "Eligible project" means the federally funded
portion of any highway or other transportation project that has been
designated for accelerated construction by the commission, and
increases the capacity, reduces the travel time, or provides
long-life rehabilitation of the key bridges and roadways of a
corridor or gateway for interregional travel and movement of goods.
(b) An eligible project that meets the conditions of subdivision
(a) may include, but is not limited to, any of the following
projects:
(1) Toll bridge seismic retrofit projects.
(2) Projects approved for funding under the Traffic Congestion
Relief Act of 2000 (Chapter 4.5 (commencing with Section 14556)).
(3) Projects programmed under the current adopted State
Transportation Improvement Program or the current State Highway
Operation and Protection Program.
(4) Projects programmed by a regional transportation planning
agency using its share of apportionments of federal regional surface
transportation program funds or federal congestion mitigation and air
quality funds pursuant to Sections 182.6 and 182.7 of the Streets
and Highways Code.
SEC. 2. Section 14553 of the Government
Code is amended to read:
14553. (a) The commission may from time to time select and
designate eligible projects to be funded from the proceeds of notes,
if financing of the project from the proceeds of notes has been
approved by the Federal Highway Administration and the regional
transportation planning agency, and the project has completed
environmental clearance and project design.
(b) Notwithstanding Section 7550.5 of the Government Code, on or
before April 1 of each year, the commission, in conjunction with the
Treasurer's office, shall prepare an annual analysis of the bonding
capacity of federal transportation funds deposited in the State
Highway Account in the State Transportation Fund.
(c) No more than 50 percent of bonding capacity shall be available
for eligible projects programmed using federal regional surface
transportation program funds and federal congestion mitigation and
air quality funds.
SEC. 3. Section 14553.7 of the
Government Code is amended to read:
14553.7. (a) In order to provide security
for repayment of the notes, the commission shall adopt a resolution
dedicating and pledging any future receipts of federal transportation
funds received by the state to the payment of principal of, and
interest and premium on the notes, for as long as any notes remain
outstanding. That action shall constitute a pledge or receipt of
those moneys as collateral within the meaning of subdivision (b) of
Section 5450. The pledge shall be governed under Chapter 5.5
(commencing with Section 5450) of Division 6 of Title 1 of the
Government Code. The commission shall be deemed a "public body" for
purposes of Section 5451, as defined in Section 5450.
(b) If a project eligible under paragraph (4) of subdivision (b)
of Section 14552.2 is funded from the proceeds of notes, the
commission shall require the regional transportation planning agency
to commit to repaying the state for debt service if that agency's
share of federal regional surface transportation program funds or
federal congestion mitigation and air quality funds is insufficient
to repay the note or if a portion of the project costs are ineligible
for federal funding. As part of the repayment, the commission may
amend into the State Transportation Improvement Program some or all
of the funds necessary for the repayment to be counted against the
county share for the county in which the project is located.
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.