BILL ANALYSIS Ó AB 4 X1 Page 1 ASSEMBLY THIRD READING AB 4 X1 (Frazier) As Introduced July 9, 2015 Majority vote SUMMARY: States that it is the intent of the Legislature to enact legislation to establish permanent, sustainable sources of transportation funding to improve the state's key trade corridors and support efforts by local governments to repair and improve local transportation infrastructure. FISCAL EFFECT: None COMMENTS: On June 19, 2015, the First Extraordinary Session of the California State Legislature was convened pursuant to a proclamation by Governor Brown, which read: WHEREAS maintaining infrastructure is a critical function of state government and vital to California's continued economic growth; and WHEREAS California faces considerable challenges in its ability to fund crucial maintenance and repair of its core transportation infrastructure - state highways, local streets, roads, and bridges - and AB 4 X1 Page 2 current resources do not adequately support the maintenance of this vast system; and WHEREAS the current fuel excise tax revenues are only sufficient to fund $2.3 billion in annual highway repairs, leaving $5.7 billion in unfunded repairs each year based on the latest estimate of the state's deferred maintenance; and WHEREAS these extraordinary circumstances require the Legislature of the State of California to be convened in a special session. NOW, THEREFORE, I, EDMUND G. BROWN JR., Governor of the State of California, in accordance with Constitution of the State of California Article IV, Section 3(b), hereby convene the Legislature of the State of California to assemble in extraordinary session in Sacramento, California, on the 19th day of June, 2015, at a time to be determined, for the following purposes: To consider and act upon legislation necessary to enact pay-as you-go, permanent and sustainable funding to: 1) Adequately and responsibly maintain and repair the state's transportation and other critical infrastructure; and 2) Improve the state's key trade corridors; and AB 4 X1 Page 3 3) Complement local efforts for repair and improvements of local transportation infrastructure. To consider and act upon legislation necessary to: a) Establish clear performance objectives measured by the percentage of pavement, bridges, and culverts in good condition; and b) Incorporate project development efficiencies to expedite project delivery or reduce project costs. I further direct that as soon as hereafter possible, this Proclamation be filed in the Office of the Secretary of State and that widespread publicity and notice be given of this Proclamation. IN WITNESS WHEREOF, I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this 16th day of June 2015. EDMUND G BROWN JR. Governor of California Analysis Prepared by: Manny Leon / TRANS. / (916) 319-2093 FN: 0001582 AB 4 X1 Page 4