BILL NUMBER: AB 1465	CHAPTERED
	BILL TEXT

	CHAPTER  22
	FILED WITH SECRETARY OF STATE  JUNE 27, 2012
	APPROVED BY GOVERNOR  JUNE 27, 2012
	PASSED THE SENATE  JUNE 15, 2012
	PASSED THE ASSEMBLY  JUNE 15, 2012
	AMENDED IN SENATE  JUNE 13, 2012

INTRODUCED BY   Committee on Budget (Blumenfield (Chair), Alejo,
Bonilla, Brownley, Buchanan, Butler, Cedillo, Chesbro, Dickinson,
Feuer, Gordon, Huffman, Mitchell, Monning, and Swanson)

                        JANUARY 10, 2012

   An act to amend Section 10140 of the Public Contract Code, to
amend Sections 8352.3, 8352.4, 8352.5, and 8352.6 of the Revenue and
Taxation Code, to amend Section 2103 of the Streets and Highways
Code, and to amend Section 9400.4 of, and to add Section 42272 to,
the Vehicle Code, relating to transportation, and making an
appropriation therefor, to take effect immediately, bill related to
the budget.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1465, Committee on Budget. Transportation.
   (1) Existing law imposes an excise tax on motor vehicle fuel
(gasoline). Existing law, as a result of the elimination of the sales
tax on gasoline effective July 1, 2010, provides for a commensurate
increase in the excise tax on gasoline. Article XIX of the California
Constitution requires gasoline excise tax revenues from motor
vehicles traveling upon public streets and highways to be deposited
in the Highway Users Tax Account, for allocation to city, county, and
state transportation purposes. Existing law generally provides for
statutory allocation of gasoline excise tax revenues attributable to
other modes of transportation, including aviation, boats,
agricultural vehicles, and off-highway vehicles, to particular
accounts and funds for expenditure on purposes associated with those
other modes. Expenditure of the gasoline excise tax revenues
attributable to those other modes is not restricted by Article XIX of
the California Constitution.
   This bill, with respect to the increase in gasoline excise taxes
as a result of the elimination of the sales tax on gasoline, would
instead transfer the revenues attributable to aviation, boats,
agricultural vehicles, and off-highway vehicles to the General Fund,
commencing July 1, 2012, and ending June 30, 2015. The bill, with
respect to these revenues already transferred to the particular
nonhighway accounts and funds in the 2010-11 and 2011-12 fiscal
years, would also transfer those revenues to the General Fund.
Commencing July 1, 2015, the bill would instead transfer these
revenues to the Highway Users Tax Account for allocation to state and
local transportation purposes. Because that account is continuously
appropriated, the bill would make an appropriation.
   (2) Existing law provides for the payment of current year general
obligation bond debt service for specified voter-approved
transportation bonds from various revenues deposited in the
Transportation Debt Service Fund, including revenues from vehicle
weight fees in the State Highway Account. Existing law also
authorizes certain loans of vehicle weight fee revenue to the General
Fund.
   Existing law, for the 2011-12 fiscal year, appropriates
$866,300,000 from weight fee revenues in the State Highway Account
for transfer to the General Fund as debt service reimbursement and
loans. Existing law requires the Controller, upon notification by the
Director of Finance that all debt service costs for the 2011-12
fiscal year have been reimbursed, to transfer any remaining weight
fee revenues for that fiscal year in the State Highway Account to the
General Fund as a loan until the $866,300,000 has been transferred
to the General Fund.
   This bill would instead appropriate, for the fiscal year 2011-12,
all annual revenue generated from the weight fees in the State
Highway Account, excluding an amount equal to a loan of $43,700,000
authorized pursuant to the Budget Act of 2011, for transfer to the
General Fund as debt service reimbursement and loans. Any revenues
for that fiscal year that remain after reimbursement of the debt
service costs would be transferred to the General Fund as a loan, and
the bill would require $42,000,000 of those revenues to be
transferred on July 1, 2012.
   (3) Existing law appropriates, commencing with the 2012-13 fiscal
year, all weight fee revenues deposited into the State Highway
Account for transfer to the General Fund as reimbursement for debt
service costs until all of the debt service paid on specified
transportation bonds have been reimbursed or to redeem or defease
bonds that are maturing in a subsequent year.
   This bill would require the Controller, upon notification by the
Director of Finance that all debt service costs for the fiscal year
have been reimbursed, to transfer any remaining revenue generated
from the weight fees for that fiscal year to the General Fund as a
loan.
   (4) Existing law requires public notice of a project under the
State Contract Act to be given by publication in a newspaper or trade
paper of general circulation, as specified.
   This bill would authorize the Department of Transportation to
alternatively meet the public notice requirement through electronic
publication on the department's Internet Web site.
   (5) This bill would require the Controller, upon order of the
Director of Finance, to transfer $432,200,000 from the Motor Vehicle
Account to the General Fund as a loan in the 2012-13 fiscal year, to
be repaid upon order of the Director of Finance and no later than
June 30, 2016.
   (6) The bill would make other related changes.
   (7) This bill would appropriate $1,000 to the California
Transportation Commission from the General Fund relative to
implementation of the bill.
   (8) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
   Appropriation: yes.


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

  SECTION 1.  Section 10140 of the Public Contract Code is amended to
read:
   10140.  (a) Public notice of a project shall be given by
publication once a week for at least two consecutive weeks or once a
week for more than two consecutive weeks if the longer period of
advertising is deemed necessary by the department, as follows:
   (1) In a newspaper of general circulation published in the county
in which the project is located, or if located in more than one
county, in such a newspaper in a county in which a major portion of
the work is to be done.
   (2) In a trade paper of general circulation published in San
Francisco for projects located in County Group No. 1, as defined in
Section 187 of the Streets and Highways Code, or in Los Angeles for
projects located in County Group No. 2, as defined in said Section
187, devoted primarily to the dissemination of contract and building
news among contracting and building materials supply firms.
    (b) The department may publish the notice to bidders for a
project in additional trade papers or newspapers of general
circulation that it deems advisable.
   (c) In the case of the Department of Transportation, in lieu of
the public notice described in subdivision (a), the public notice
requirement of this section may instead be met by publishing the
notice electronically on that department's Internet Web site.
  SEC. 2.  Section 8352.3 of the Revenue and Taxation Code is amended
to read:
   8352.3.  (a) Subject to Sections 8352 and 8352.1, and except as
otherwise provided in subdivision (b), all moneys deposited to the
credit of the Motor Vehicle Fuel Account attributable to the
distribution of motor vehicle fuel for use or used in propelling an
aircraft in the state shall be transferred to the Aeronautics Account
in the State Transportation Fund, for allocation as follows:
   (1) To pay the pro rata cost of the Controller and the board under
subdivisions (b), (c), and (d) of Section 8352.1.
   (2) To pay for the support of the Department of Transportation,
for the administration of the State Aeronautics Act (Division 9
(commencing with Section 21001) of the Public Utilities Code).
   (3) Remaining balance to be available for expenditures in
accordance with Section 21602 and Article 4 (commencing with Section
21680) of Chapter 4 of Part 1 of Division 9 of the Public Utilities
Code.
   (b) From July 1, 2012, until June 30, 2015, inclusive, the
revenues attributable to the taxes imposed pursuant to subdivision
(b) of Section 7360 and Section 7361.1 and otherwise to be deposited
in the Aeronautics Account pursuant to subdivision (a) shall instead
be transferred to the General Fund. The revenues attributable to the
taxes imposed pursuant to subdivision (b) of Section 7360 and Section
7361.1 that were deposited in the Aeronautics Account in the 2010-11
and 2011-12 fiscal years shall be transferred to the General Fund.
Commencing July 1, 2015, the revenues attributable to the taxes
imposed pursuant to subdivision (b) of Section 7360 and Section
7361.1 and otherwise to be deposited in the Aeronautics Account
pursuant to subdivision (a) shall instead be transferred to the
Highway Users Tax Account in the State Transportation Fund, for
distribution pursuant to subdivision (a) of Section 2103 of the
Streets and Highways Code.
  SEC. 3.  Section 8352.4 of the Revenue and Taxation Code is amended
to read:
   8352.4.  (a) Subject to Sections 8352 and 8352.1, and except as
otherwise provided in subdivision (b), there shall be transferred
from the money deposited to the credit of the Motor Vehicle Fuel
Account to the Harbors and Watercraft Revolving Fund, for expenditure
in accordance with Division 1 (commencing with Section 30) of the
Harbors and Navigation Code, the sum of six million six hundred
thousand dollars ($6,600,000) per annum, representing the amount of
money in the Motor Vehicle Fuel Account attributable to taxes imposed
on distributions of motor vehicle fuel used or usable in propelling
vessels. The actual amount shall be calculated using the annual
reports of registered boats prepared by the Department of Motor
Vehicles for the United States Coast Guard and the formula and method
of the December 1972 report prepared for this purpose and submitted
to the Legislature on December 26, 1972, by the Director of
Transportation. If the amount transferred during each fiscal year is
in excess of the calculated amount, the excess shall be retransferred
from the Harbors and Watercraft Revolving Fund to the Motor Vehicle
Fuel Account. If the amount transferred is less than the amount
calculated, the difference shall be transferred from the Motor
Vehicle Fuel Account to the Harbors and Watercraft Revolving Fund. No
adjustment shall be made if the computed difference is less than
fifty thousand dollars ($50,000), and the amount shall be adjusted to
reflect any temporary or permanent increase or decrease that may be
made in the rate under the Motor Vehicle Fuel Tax Law. Payments
pursuant to this section shall be made prior to payments pursuant to
Section 8352.2.
   (b) From July 1, 2012, until June 30, 2015, inclusive, the
revenues attributable to the taxes imposed pursuant to subdivision
(b) of Section 7360 and Section 7361.1 and otherwise to be deposited
in the Harbors and Watercraft Revolving Fund pursuant to subdivision
(a) shall instead be transferred to the General Fund. The revenues
attributable to the taxes imposed pursuant to subdivision (b) of
Section 7360 and Section 7361.1 that were deposited in the Harbors
and Watercraft Revolving Fund in the 2010-11 and 2011-12 fiscal years
shall be transferred to the General Fund. Commencing July 1, 2015,
the revenues attributable to the taxes imposed pursuant to
subdivision (b) of Section 7360 and Section 7361.1 and otherwise to
be deposited in the Harbor and Watercraft Revolving Fund pursuant to
subdivision (a) shall instead be transferred to the Highway Users Tax
Account in the State Transportation Fund, for distribution pursuant
to subdivision (a) of Section 2103 of the Streets and Highways Code.
   (c) When deemed necessary by the Department of Transportation and
the Department of Boating and Waterways, the Department of
Transportation, after consultation with the Department of Boating and
Waterways, shall prepare, or cause to be prepared, an updated report
setting forth the current estimate of the amount of money credited
to the Motor Vehicle Fuel Account attributable to taxes imposed on
distributions of motor vehicle fuel used or usable in propelling
vessels. The Department of Transportation shall submit the report to
the Legislature upon its completion.
  SEC. 4.  Section 8352.5 of the Revenue and Taxation Code is amended
to read:
   8352.5.  (a) (1) Subject to Sections 8352 and 8352.1, and except
as otherwise provided in subdivision (b), there shall be transferred
from the money deposited to the credit of the Motor Vehicle Fuel
Account to the Department of Food and Agriculture Fund, during the
second quarter of each fiscal year, an amount equal to the estimate
contained in the most recent report prepared pursuant to this
section.
   (2) The amounts are not subject to Section 6357 with respect to
the collection of sales and use taxes thereon, and represent the
portion of receipts in the Motor Vehicle Fuel Account during a
calendar year that were attributable to agricultural off-highway use
of motor vehicle fuel which is subject to refund pursuant to Section
8101, less gross refunds allowed by the Controller during the fiscal
year ending June 30 following the calendar year to persons entitled
to refunds for agricultural off-highway use pursuant to Section 8101.
Payments pursuant to this section shall be made prior to payments
pursuant to Section 8352.2.
   (b) From July 1, 2012, until June 30, 2015, inclusive, the
revenues attributable to the taxes imposed pursuant to subdivision
(b) of Section 7360 and Section 7361.1 and otherwise to be deposited
in the Department of Food and Agriculture Fund pursuant to
subdivision (a) shall instead be transferred to the General Fund. The
revenues attributable to the taxes imposed pursuant to subdivision
(b) of Section 7360 and Section 7361.1 that were deposited in the
Department of Food and Agriculture Fund in the 2010-11 and 2011-12
fiscal years shall be transferred to the General Fund. Commencing
July 1, 2015, the revenues attributable to the taxes imposed pursuant
to subdivision (b) of Section 7360 and Section 7361.1 and otherwise
to be deposited in the Department of Food and Agriculture Fund
pursuant to subdivision (a) shall instead be transferred to the
Highway Users Tax Account in the State Transportation Fund, for
distribution pursuant to subdivision (a) of Section 2103 of the
Streets and Highways Code.
   (c) On or before September 30, 2012, and on or before September 30
of each even-numbered year thereafter, the Director of
Transportation and the Director of Food and Agriculture shall jointly
prepare, or cause to be prepared, a report setting forth the current
estimate of the amount of money, including any revenues attributable
to the taxes imposed pursuant to subdivision (b) of Section 7360 and
Section 7361.1 in the Motor Vehicle Fuel Account attributable to
agricultural off-highway use of motor vehicle fuel, which is subject
to refund pursuant to Section 8101 less gross refunds allowed by the
Controller to persons entitled to refunds for agricultural
off-highway use pursuant to Section 8101; and they shall submit a
copy of the report to the Legislature. Commencing July 1, 2015, any
revenues attributable to the taxes imposed pursuant to subdivision
(b) of Section 7360 and Section 7361.1 shall be excluded from this
report.
  SEC. 5.  Section 8352.6 of the Revenue and Taxation Code is amended
to read:
   8352.6.  (a) (1) Subject to Section 8352.1, and except as
otherwise provided in paragraphs (2) and (3), on the first day of
every month, there shall be transferred from moneys deposited to the
credit of the Motor Vehicle Fuel Account to the Off-Highway Vehicle
Trust Fund created by Section 38225 of the Vehicle Code an amount
attributable to taxes imposed upon distributions of motor vehicle
fuel used in the operation of motor vehicles off highway and for
which a refund has not been claimed. Transfers made pursuant to this
section shall be made prior to transfers pursuant to Section 8352.2.
   (2) From July 1, 2012, until June 30, 2015, inclusive, the
revenues attributable to the taxes imposed pursuant to subdivision
(b) of Section 7360 and Section 7361.1 and otherwise to be deposited
in the Off-Highway Vehicle Trust Fund pursuant to paragraph (1) shall
instead be transferred to the General Fund. The revenues
attributable to the taxes imposed pursuant to subdivision (b) of
Section 7360 and Section 7361.1 that were deposited in the
Off-Highway Vehicle Trust Fund in the 2010-11 and 2011-12 fiscal
years shall be transferred to the General Fund. Commencing July 1,
2015, the revenues attributable to the taxes imposed pursuant to
subdivision (b) of Section 7360 and Section 7361.1 and otherwise to
be deposited in the Off-Highway Vehicle Trust Fund pursuant to
paragraph (1) shall instead be transferred to the Highway Users Tax
Account in the State Transportation Fund, for distribution pursuant
to subdivision (a) of Section 2103 of the Streets and Highways Code.
   (3) The Controller shall withhold eight hundred thirty-three
thousand dollars ($833,000) from the monthly transfer to the
Off-Highway Vehicle Trust Fund pursuant to paragraph (1), and
transfer that amount to the General Fund.
   (b) The amount transferred to the Off-Highway Vehicle Trust Fund
pursuant to paragraph (1) of subdivision (a), as a percentage of the
Motor Vehicle Fuel Account, shall be equal to the percentage
transferred in the 2006-07 fiscal year. Every five years, starting in
the 2013-14 fiscal year, the percentage transferred may be adjusted
by the Department of Transportation in cooperation with the
Department of Parks and Recreation and the Department of Motor
Vehicles. Adjustments shall be based on, but not limited to, the
changes in the following factors since the 2006-07 fiscal year or the
last adjustment, whichever is more recent:
   (1) The number of vehicles registered as off-highway motor
vehicles as required by Division 16.5 (commencing with Section 38000)
of the Vehicle Code.
   (2) The number of registered street-legal vehicles that are
anticipated to be used off highway, including four-wheel drive
vehicles, all-wheel drive vehicles, and dual-sport motorcycles.
   (3) Attendance at the state vehicular recreation areas.
   (4) Off-highway recreation use on federal lands as indicated by
the United States Forest Service's National Visitor Use Monitoring
and the United States Bureau of Land Management's Recreation
Management Information System.
   (c) It is the intent of the Legislature that transfers from the
Motor Vehicle Fuel Account to the Off-Highway Vehicle Trust Fund
should reflect the full range of motorized vehicle use off highway
for both motorized recreation and motorized off-road access to other
recreation opportunities. Therefore, the Legislature finds that the
fuel tax baseline established in subdivision (b), attributable to
off-highway estimates of use as of the 2006-07 fiscal year, accounts
for the three categories of vehicles that have been found over the
years to be users of fuel for off-highway motorized recreation or
motorized access to nonmotorized recreational pursuits. These three
categories are registered off-highway motorized vehicles, registered
street-legal motorized vehicles used off highway, and unregistered
off-highway motorized vehicles.
   (d) It is the intent of the Legislature that the off-highway motor
vehicle recreational use to be determined by the Department of
Transportation pursuant to paragraph (2) of subdivision (b) be that
usage by vehicles subject to registration under Division 3
(commencing with Section 4000) of the Vehicle Code, for recreation or
the pursuit of recreation on surfaces where the use of vehicles
registered under Division 16.5 (commencing with Section 38000) of the
Vehicle Code may occur.
  SEC. 6.  Section 2103 of the Streets and Highways Code is amended
to read:
   2103.  (a) Notwithstanding Section 13340 of the Government Code,
of the net revenues deposited to the credit of the Highway Users Tax
Account that are derived from the increases in the rates of taxes
that are imposed pursuant to subdivision (b) of Section 7360 and
Section 7361.1 of the Revenue and Taxation Code, all of the following
shall occur on a monthly basis:
   (1) (A) By the 15th day of every month, the Treasurer's office, in
consultation with the Department of Finance, shall notify the
Controller of the amount of debt service that will be paid on each
transportation bond during that month.
   (B) Within two business days following the 28th day of each month,
the Controller shall transfer to the Transportation Debt Service
Fund an amount equal to the amount of monthly debt service paid by
the General Fund on any bonds issued pursuant to the Seismic Retrofit
Bond Act of 1996 (Chapter 12.48 (commencing with Section 8879) of
Division 1 of Title 2 of the Government Code) or any other bonds
issued for highway or eligible guideway projects consistent with the
requirements applicable to the expenditure of revenues under Article
XIX of the California Constitution as identified by the Department of
Finance pursuant to Section 16965 of the Government Code, and
three-quarters of the amount of monthly debt service paid on any
bonds issued pursuant to the Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006 (Chapter 12.49
(commencing with Section 8879.20) of Division 1 of Title 2) for
reimbursement of the General Fund for these costs. If revenues
available pursuant to this subdivision in any given month are
insufficient to fully reimburse the General Fund for the debt service
payments made, the first revenues available pursuant to this
subdivision in the following month or months shall be transferred to
the Transportation Debt Service Fund so that all debt service
payments made on these bonds from the General Fund in a given fiscal
year are fully reimbursed. However, no further transfers shall be
made pursuant to this subparagraph once the transfers for the months
of July to October, inclusive, in 2010 have been made. Any transfers
made from the net revenues identified in this paragraph for highway
and eligible guideway bond debt service for months after October 2010
shall be reversed and shall instead be made from weight fee revenues
in the State Highway Account, as described in subparagraph (F).
   (C) Beginning November 2, 2010, the Controller shall transfer to
the State Highway Account within two business days following the 28th
day of each month all of the monthly net revenues identified in
subparagraph (B) that were designated for highway and eligible
guideway bond debt service reimbursement but that have not been
transferred, or that were transferred by means of a transfer that was
reversed, pursuant to that subparagraph. To the extent the
Controller has distributed any of those net revenues to cities and
counties pursuant to subparagraph (C) of paragraph (3) between
November 2, 2010, and March 24, 2011, the Controller shall
subsequently reduce the amount transferred to cities and counties on
a monthly basis pursuant to subparagraph (C) of paragraph (3) and
shall instead transfer these funds to the State Highway Account until
all of the revenues that would otherwise have been transferred to
the State Highway Account on and after November 2, 2010, pursuant to
this subparagraph have been so transferred. For the 2011-12 fiscal
year, the Controller shall transfer to the State Highway Account
within two business days following the 28th day of each month an
amount equal to the weight fee revenues transferred to the
Transportation Debt Service Fund pursuant to subdivision (b) of
Section 9400.4 of the Vehicle Code, including forty-three million
seven hundred thousand dollars ($43,700,000) authorized pursuant to
Item 2660-013-0042 of Section 2.00 of the Budget Act of 2011 and an
amount equal to weight fee revenues transferred to the General Fund
as a loan pursuant to subdivision (b) of Section 9400.4 of the
Vehicle Code. To the extent the Controller has distributed any of
those revenues to cities and counties pursuant to subparagraph (C) of
paragraph (3), the Controller shall subsequently reduce the amount
transferred to cities and counties on a monthly basis pursuant to
subparagraph (C) of paragraph (3) and instead transfer these funds to
the State Highway Account until all of the revenues that would
otherwise have been transferred to the State Highway Account in the
2011-12 fiscal year pursuant to this subparagraph have been so
transferred.
   (D) Notwithstanding subparagraph (C), commencing with the 2012-13
fiscal year and every fiscal year thereafter, the Controller shall
transfer to the State Highway Account within two business days
following the 28th day of each month an amount equal to the amount of
weight fee revenues transferred to the Transportation Debt Service
Fund for highway and eligible guideway bond debt service and to the
General Fund as a loan pursuant to subdivision (c) of Section 9400.4
of the Vehicle Code.
   (E) Beginning July 1, 2011, transfers made under subparagraphs (C)
and (D) during a fiscal year shall not exceed the annual revenue
generated from weight fees, as determined by Sections 9400.4 and
42205 of the Vehicle Code, at the rates in effect as of March 24,
2011, as determined by the Department of Finance.
   (F) Any remaining amount of the highway or eligible guideway bond
debt service reimbursement authorized by this paragraph that has not
been made pursuant to subparagraph (B) on and after November 2, 2010,
shall instead be made pursuant to subdivisions (a), (b), and (c) of
Section 9400.4 of the Vehicle Code from revenues in the State Highway
Account derived from weight fees deposited in the account pursuant
to subdivision (e) of Section 9400.1 and Section 42205 of the Vehicle
Code.
   (2) (A) In the 2010-11 fiscal year, after the monthly transfer
made pursuant to paragraph (1), the sum of fifty-four million one
hundred sixty-seven thousand dollars ($54,167,000) per month shall be
held in the account for future appropriation by the Legislature.
   (B) Notwithstanding any other provision of law, with respect to
the monthly net revenues described in subparagraph (A), no further
transfers of these revenues for the purpose of loans to the General
Fund shall be made pursuant to Item 2660-011-0062 of Section 2.00 of
the Budget Act of 2010 once the loan transfers for the months of July
to October, inclusive, in 2010 have been made. Notwithstanding the
loan repayment date specified in the provisional language for that
item, the funds loaned shall be repaid by June 30, 2021. Any
transfers made from the monthly net revenues in subparagraph (A) for
months after October 2010 shall be reversed and shall instead be made
from weight fee revenues in the State Highway Account, as described
in subparagraph (D). The revenues from loan repayments shall be held
in the Highway Users Tax Account for future appropriation by the
Legislature.
   (C) Beginning November 2, 2010, all of the monthly net revenues
described in subparagraph (A) shall instead be transferred by the
Controller to the State Highway Account within two business days
following the 28th day of each month. To the extent that the
Controller has distributed any of the revenues identified in this
paragraph to cities and counties pursuant to subparagraph (C) of
paragraph (3) between October 14, 2010, and March 24, 2011, the
Controller shall subsequently reduce the amount transferred to cities
and counties on a monthly basis pursuant to subparagraph (C) of
paragraph (3) and shall instead transfer these funds to the State
Highway Account until all of the revenues that would have been
transferred to the General Fund as a loan pursuant to Item
2660-011-0062 of Section 2.00 of the Budget Act of 2010 on and after
November 2, 2010, have instead been transferred to the State Highway
Account.
   (D) Any remaining amount of the loans to the General Fund
authorized pursuant to Item 2660-011-0062 of Section 2.00 of the
Budget Act of 2010 that has not been made pursuant to subparagraph
(B) on and after November 2, 2010, shall instead be made pursuant to
subdivisions (a), (b), and (c) of Section 9400.4 of the Vehicle Code
from revenues in the State Highway Account derived from weight fees
deposited in the account pursuant to subdivision (e) of Section
9400.1 and Section 42205 of the Vehicle Code.
   (3) The Controller shall transfer any remaining net revenues
subject to this subdivision as follows:
   (A) Forty-four percent shall be transferred to the State Highway
Account to fund projects in the State Transportation Improvement
Program that are consistent with Section 1 of Article XIX of the
California Constitution, except in the 2010-11 fiscal year, 50
percent shall be transferred for purposes of this subparagraph.
   (B) Twelve percent shall be transferred to the State Highway
Account to fund projects in the State Highway Operation and
Protection Program, except in the 2010-11 fiscal year, no revenues
shall be transferred for purposes of this subparagraph.
   (C) Forty-four percent shall be apportioned by the Controller for
local street and road purposes, except in the 2010-11 fiscal year, 50
percent shall be transferred for purposes of this subparagraph as
follows:
   (i) Fifty percent shall be apportioned by the Controller to
cities, including a city and county, in the proportion that the total
population of the city bears to the total population of all the
cities in the state.
   (ii) Fifty percent shall be apportioned by the Controller to
counties, including a city and county, in accordance with the
following formulas:
   (I) Seventy-five percent shall be apportioned among the counties
in the proportion that the number of fee-paid and exempt vehicles
that are registered in the county bear to the number of fee-paid and
exempt vehicles registered in the state.
   (II) Twenty-five percent shall be apportioned among the counties
in the proportion that the number of miles of maintained county roads
in each county bear to the total number of miles of maintained
county roads in the state. For the purposes of apportioning funds
under this subparagraph, any roads within the boundaries of a city
and county that are not state highways shall be deemed to be county
roads.
   (b) After the transfers or other actions pursuant to subdivision
(a), at least 90 percent of the balance deposited to the credit of
the Highway Users Tax Account in the Transportation Tax Fund by the
28th day of each month shall be apportioned or transferred, as
applicable, by the Controller by the second working day thereafter,
except for June, in which case the apportionment or transfer shall be
made the same day. These apportionments or transfers shall be made
as provided for in Sections 2104 to 2122, inclusive. If information
is not available to make the apportionment or transfer as required,
the apportionment or transfer shall be made on the basis of the
information of the previous month. Amounts not apportioned or
transferred shall be included in the apportionment or transfer of the
subsequent month.
   (c) Notwithstanding any other law, the funds apportioned by the
Controller to cities and counties pursuant to subparagraph (C) of
paragraph (3) of subdivision (a) are not subject to Section 7104 or
7104.2 of the Revenue and Taxation Code. These funds may be expended
for any street and road purpose consistent with the requirements of
this chapter.
  SEC. 7.  Section 9400.4 of the Vehicle Code is amended to read:
   9400.4.  Weight fee revenue deposited into the State Highway
Account pursuant to subdivision (e) of Section 9400.1 and Section
42205 shall be used as follows:
   (a) For the 2010-11 fiscal year, seven hundred fifty-six million
three hundred ninety-six thousand dollars ($756,396,000) is hereby
appropriated from weight fee revenues in the State Highway Account
for transfer to the General Fund as transportation bond debt service
reimbursement and loans as follows:
   (1) The Controller shall transfer all weight fee revenues
deposited into the State Highway Account in any month to the
Transportation Debt Service Fund for transfer to the General Fund as
reimbursement for debt service costs until all of the debt service
paid on transportation bonds for projects that the Director of
Finance indicates qualify for reimbursement as provided for in
Section 16965 of the Government Code have been reimbursed.
       (2) After the Director of Finance has notified the Controller
that all debt service costs for the 2010-11 fiscal year have been
reimbursed, the Controller shall transfer any remaining monthly
weight fee revenues in the State Highway Account to the General Fund
as a loan until the full amount appropriated in this subdivision has
been transferred to the General Fund. The Director of Finance may
repay any remaining portion of the outstanding balance of this loan
in any year in which the Director of Finance determines the funds are
needed to reimburse the General Fund for current year transportation
bond debt service or to redeem or defease those bonds, pursuant to
Section 16774 of the Government Code, maturing in a subsequent fiscal
year, provided that the loans shall be repaid no later than June 30,
2021. All funds loaned pursuant to this section, upon repayment to
the State Highway Account, shall be immediately transferred by the
Controller to the Transportation Debt Service Fund for use pursuant
to Section 16965 of the Government Code.
   (3) By June 15, 2011, the Director of Finance in consultation with
the Treasurer shall notify the Controller regarding the final amount
of debt service paid from the General Fund during the 2010-11 fiscal
year pursuant to Section 16965 of the Government Code and shall
direct the Controller to reverse and adjust any transfers made as
debt service reimbursements or loans so that a maximum amount of
transfers are made for debt service reimbursements and with any loan
amounts limited to the difference between this amount and the total
amount appropriated in this subdivision. The total amount of weight
fee revenues transferred from the State Highway Account for the
2010-11 fiscal year shall not be greater than the total amount of
weight fee revenues deposited into the State Highway Account for that
year.
   (4) With respect to transfers or portions of transfers that cannot
be made in any given month if weight fee revenues are insufficient,
the first weight fee revenues available in the following month or
months shall be used to complete the transfers for the previous month
or months prior to making additional transfers for later months.
   (b) For the 2011-12 fiscal year, all revenue generated from weight
fees in the State Highway Account, as determined by Sections 9400.1
and 42205, excluding an amount equal to the loan of forty-three
million seven hundred thousand dollars ($43,700,000) authorized
pursuant to Item 2660-013-0042 of Section 2.00 of the Budget Act of
2011, is hereby appropriated for transfer to the General Fund as debt
service reimbursement and loans as follows:
   (1) The Controller shall transfer all weight fee revenues
deposited into the State Highway Account in any month to the
Transportation Debt Service Fund for transfer to the General Fund as
reimbursement for debt service costs until all of the debt service
paid on transportation bonds for projects that the Director of
Finance indicates qualify for reimbursement as provided for in
Section 16965 of the Government Code have been reimbursed.
   (2) After the Director of Finance has notified the Controller that
all debt service costs for the 2011-12 fiscal year have been
reimbursed, the Controller shall transfer any remaining weight fee
revenues for that fiscal year in the State Highway Account to the
General Fund as a loan until all weight fee revenues for that fiscal
year appropriated in this subdivision have been transferred to the
General Fund, excluding forty-two million dollars ($42,000,000),
which shall be transferred to the General Fund as a loan on July 1,
2012. The Director of Finance may repay any portion of the balance of
this loan in any year in which the Director of Finance determines
the funds are needed to reimburse the General Fund for current year
transportation bond debt service or to redeem or defease those bonds,
pursuant to Section 16774 of the Government Code, maturing in a
subsequent year, provided that the loans shall be repaid no later
than June 30, 2021. All funds loaned pursuant to this section, upon
repayment to the State Highway Account, shall be immediately
transferred by the Controller to the Transportation Debt Service Fund
for use pursuant to Section 16965 of the Government Code.
   (3) By June 15, 2012, the Director of Finance in consultation with
the Treasurer shall notify the Controller regarding the final amount
of debt service paid from the General Fund during the 2011-12 fiscal
year pursuant to Section 16965 of the Government Code and shall
direct the Controller to reverse and adjust any transfers made as
debt service reimbursements or loans so that a maximum amount of
transfers are made for debt service reimbursements and with any loan
amounts limited to the difference between this amount and the total
amount appropriated in this subdivision. The total amount of weight
fee revenues transferred from the State Highway Account for the
2011-12 fiscal year shall not be greater than the total amount of
weight fee revenues deposited into the State Highway Account in that
year.
   (4) With respect to transfers or portions of transfers that cannot
be made in any given month if weight fee revenues are insufficient,
the first weight fee revenues available in the following month or
months shall be used to complete the transfers for the previous month
or months prior to making additional transfers for later months.
   (c) (1) Starting with the 2012-13 fiscal year and every year
thereafter, all weight fee revenues deposited into the State Highway
Account in any month shall be transferred to the Transportation Debt
Service Fund and are hereby appropriated for transfer to the General
Fund by the Controller as reimbursement for debt service costs until
all of the debt service paid on transportation bonds that the
Director of Finance indicates qualify for reimbursement as provided
for in Section 16965 of the Government Code has been reimbursed, or
to redeem or defease bonds, pursuant to Section 16774 of the
Government Code, as referenced in subdivision (b) or (d) of Section
16965 of the Government Code that are maturing in a subsequent year.
After the Director of Finance has notified the Controller that all
debt service costs for the fiscal year have been reimbursed, the
Controller shall transfer any remaining revenue generated from weight
fees for that fiscal year in the State Highway Account to the
General Fund as a loan. The Director of Finance may repay any portion
of the balance of this loan in any year in which the Director of
Finance determines that the funds are needed to reimburse the General
Fund for current year transportation bond debt service or to redeem
or defease those bonds pursuant to Section 16774 of the Government
Code, maturing in a future fiscal year, provided that the loans shall
be repaid no later than June 30, 2021. All funds loaned pursuant to
this section, upon repayment to the State Highway Account, shall be
immediately transferred by the Controller to the Transportation Debt
Service Fund for use pursuant to Section 16965 of the Government
Code. By June 15 of each year, the Director of Finance, in
consultation with the Treasurer, shall notify the Controller
regarding the final amount of debt service paid from the General Fund
during that fiscal year pursuant to Section 16965 of the Government
Code and shall direct the Controller to reverse or adjust any
transfers made as debt service reimbursements or loans so that a
maximum amount of transfers are made for debt service reimbursements
and with any loan amounts limited to the difference between this
amount and the total amount of revenue for that fiscal year generated
from weight fees, as determined by Sections 9400.1 and 42205. The
total amount of weight fee revenues transferred from the State
Highway Account in any fiscal year shall not be greater than the
total amount of weight fee revenues deposited into the State Highway
Account in that year.
   (2) With respect to transfers or portions of transfers that cannot
be made in any given month if weight fee revenues are insufficient,
the first weight fee revenues available in the following month or
months shall be used to complete the transfers for the previous month
or months prior to making additional transfers for later months.
  SEC. 8.  Section 42272 is added to the Vehicle Code, to read:
   42272.  For the 2012-13 fiscal year, upon order of the Director of
Finance, the Controller shall transfer four hundred thirty-two
million two hundred thousand dollars ($432,200,000) from the Motor
Vehicle Account to the General Fund as a loan, provided that the loan
shall be repaid. The Director of Finance shall order the repayment
by the Controller of that four hundred thirty-two million two hundred
thousand dollars ($432,200,000) to the Motor Vehicle Account no
later than June 30, 2016.
  SEC. 9.  The sum of one thousand dollars ($1,000) is hereby
appropriated from the General Fund to the California Transportation
Commission to implement the provisions of this act.
  SEC. 10.  This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.