BILL NUMBER: SB 16	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 26, 2015
	AMENDED IN SENATE  MARCH 2, 2015

INTRODUCED BY   Senator Beall

                        DECEMBER 1, 2014

   An act  to add Section 14526.7 to the Government Code, 
relating to transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 16, as amended, Beall. Department of Transportation: budgetary
cost-savings  plan.   plan: state highway
operation and protection program.  
   Under 
    (1)     Under  existing law, the
Department of Transportation is responsible for the planning, design,
construction, maintenance, and operation of the state highway
system. Existing law requires the department to prepare and submit to
the Governor a proposed budget and to develop budgeting, accounting,
fiscal control, and management information systems to provide budget
oversight.
   Existing law authorizes the California Transportation Commission
to prepare an independent evaluation of the department's budget
regarding the adequacy of funding levels and the relative needs of
program categories and to submit its recommendations to the
Legislature by April 1 of each year.
   This bill would require the Department of Transportation, by April
1, 2016, and as part of its budget for the 2016-17 fiscal year, to
prepare a plan to identify up to $200,000,000 annually in cost
savings from its budget, and to submit the plan to the appropriate
policy committees of the Senate and the Assembly. 
   (2) Existing law requires the Department of Transportation to
prepare a state highway operation and protection program every other
year for the expenditure of transportation capital improvement funds
for projects that are necessary to preserve and protect the state
highway system, excluding projects that add new traffic lanes. The
program is required to be based on an asset management plan, as
specified. Existing law requires the department to specify, for each
project in the program, the capital and support budget and projected
delivery date for various components of the project. Existing law
provides for the California Transportation Commission to review and
adopt the program, and authorizes the commission to decline to adopt
the program if it determines that the program is not sufficiently
consistent with the asset management plan.  
   This bill, on and after February 1, 2016, would require the
commission to make an allocation of all capital and support costs for
each project in the program, and would require the department to
submit a supplemental project allocation request to the commission
for each project that experiences cost increases above the amounts in
its allocation. The bill would require the commission to establish
guidelines to provide exceptions to the requirement for a
supplemental project allocation requirement that the commission
determines are necessary to ensure that projects are not
unnecessarily delayed. 
   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 14526.7 is added to the 
 Government Code  , to read:  
   14526.7.  (a) On and after February 1, 2016, an allocation by the
commission of all capital and support costs for each project in the
state highway operation and protection program shall be required.
   (b) For a project that experiences increases in capital or support
costs above the amounts in the commission's allocation pursuant to
subdivision (a), a supplemental project allocation request shall be
submitted by the department to the commission for approval.
   (c) The commission shall establish guidelines to provide
exceptions to the requirement of subdivision (b) that the commission
determines are necessary to ensure that projects are not
unnecessarily delayed. 
   SECTION 1.   SEC. 2.   The Department of
Transportation shall, by April 1, 2016, and as part of its budget
for the 2016-17 fiscal year, prepare a plan to identify up to two
hundred million dollars ($200,000,000) annually in cost savings from
its budget, and shall submit the plan to the appropriate policy
committees of the Senate and the Assembly.