Amended in Senate April 15, 2015

Amended in Senate March 26, 2015

Amended in Senate March 2, 2015

Senate BillNo. 16


Introduced by Senator Beall

December 1, 2014


begin deleteAn act to add Section 14526.7 to the Government Code, relating to transportation. end deletebegin insertAn act to add Sections 14526.7, 14526.8, and 16321 to the Government Code, to amend Sections 7360, 10752, and 60050 of the Revenue and Taxation Code, to add Section 2103.1 to, and to add Chapter 2 (commencing with Section 2030) to Division 3 of, the Streets and Highways Code, and to add Sections 9250.3, 9250.6, and 9400.5 to the Vehicle Code, relating to transportation, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 16, as amended, Beall. begin deleteDepartment of Transportation: budgetary cost-savings plan: state highway operation and protection program. end deletebegin insertTransportation funding.end insert

begin insert

(1) Existing law provides various of sources of funding for transportation purposes, including funding for the state highway system and the local street and road system. These funding sources include, among others, fuel excise taxes, commercial vehicle weight fees, local transactions and use taxes, and federal funds. Existing law imposes certain registration fees on vehicles, with revenues from these fees deposited in the Motor Vehicle Account and used to fund the Department of Motor Vehicles and the Department of the California Highway Patrol. Existing law provides for the monthly transfer of excess balances in the Motor Vehicle Account to the State Highway Account.

end insert
begin insert

This bill would create the Road Maintenance and Rehabilitation Program to address deferred maintenance on the state highway system and the local street and road system. The bill would provide for the program to be authorized every 5 years by the Legislature, and would provide that authorization for the 2015-16 through 2019-20 fiscal years. The bill would require the California Transportation Commission to identify the estimated funds to be available for the program and adopt performance criteria to ensure efficient use of the funds. The bill would provide for the deposit of various funds for the program in the Road Maintenance and Rehabilitation Account, which the bill would create in the State Transportation Fund, including revenues from a $0.10 per gallon increase in the motor vehicle fuel (gasoline) tax imposed by the bill and $0.10 of the $0.12 per gallon increase in the diesel fuel excise tax imposed by the bill, an increase of $35 in the annual vehicle registration fee, a new $100 annual vehicle registration fee applicable to zero-emission motor vehicles, as defined, commercial vehicle weight fees redirected over a 5-year period from debt service on general obligation transportation bonds, and repayment, over a 3-year period, of outstanding loans made in previous years from certain transportation funds to the General Fund.

end insert
begin insert

The bill would continuously appropriate the funds in the account for road maintenance and rehabilitation purposes for each 5-year period in which the Legislature has authorized the program, and would, for those fiscal years, allocate 5% of available funds to counties that approve a transactions and use tax on or after July 1, 2015, with the remaining funds to be allocated 50% for maintenance of the state highway system or to the state highway operation and protection program, and 50% to cities and counties pursuant to a specified formula. The bill would impose various requirements on agencies receiving these funds.

end insert
begin insert

This bill, in fiscal years in which the Road Maintenance and Rehabilitation Program is not reauthorized by the Legislature, would make inoperative the increases in the gasoline and diesel excise tax rates and the $35 increase in the vehicle registration fee imposed by the bill. The bill, in those fiscal years, would also provide for the deposit of revenues from the $100 vehicle registration fee applicable to zero-emission vehicles, and weight fee revenues, in the State Highway Account, to be used for purposes of maintaining the state highway system or the state highway operation and protection program.

end insert
begin insert

(2) The Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Proposition 1B) created the Trade Corridors Improvement Fund and provided for allocation by the California Transportation Commission of $2 billion in bond funds for infrastructure improvements on highway and rail corridors that have a high volume of freight movement, and specified categories of projects eligible to receive these funds. Existing law continues the Trade Corridors Improvement Fund in existence in order to receive revenues from sources other than the bond act for these purposes.

end insert
begin insert

The bill would transfer revenues from $0.02 of the $0.12 increase in the diesel fuel excise tax to the Trade Corridors Investment Fund for expenditure on eligible projects. As with the remainder of the gasoline and diesel fuel tax increases imposed by this bill, this portion of the diesel fuel excise tax increase would be inoperative in fiscal years in which the Road Maintenance and Rehabilitation Program in (1) is not reauthorized.

end insert
begin insert

(3) Existing law imposes a vehicle license fee, in lieu of property tax, on motor vehicles based on market value, at a rate of 0.65%. Pursuant to Article XI of the California Constitution, vehicle license fee revenues at the 0.65% rate are required to be allocated to cities and counties.

end insert
begin insert

This bill would incrementally increase the vehicle license fee to a rate of 1%, over a 5-year period beginning July 1, 2015, with the revenues above the 0.65% rate to be deposited in the General Fund and used for transportation general obligation bond debt service.

end insert
begin insert

(4) 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 and adopt the program if it determines that the program is not sufficiently consistent with the asset management plan.

end insert
begin insert

This bill, on and after February 1, 2017, 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.

end insert
begin insert

(5) Existing law requires the Department of Transportation 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.

end insert
begin insert

This bill, by April 1, 2016, would require the department to present to the California Transportation commission a plan to increase department efficiency by up to 30% over the subsequent 3 years, with the ongoing savings to result in increased capital expenditures in the state highway operation and protection program or an increase in the state highway maintenance program.

end insert
begin insert

(6) This bill would declare that it is to take effect immediately as an urgency statute.

end insert
begin delete

(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.

end delete
begin delete

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.

end delete
begin delete

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.

end delete
begin delete

(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.

end delete
begin delete

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.

end delete

Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P5    1begin insert

begin insertSECTION 1.end insert  

end insert
begin insert

The Legislature finds and declares all of the
2following:

end insert
begin insert

3(a) Over the next ten years, the state faces a $59 billion shortfall
4to adequately maintain the existing state highway system, in order
5to keep it in a basic state of good repair.

end insert
begin insert

6(b) Similarly, cities and counties face a $78 billion shortfall
7over the next decade to adequately maintain the existing network
8of local streets and roads.

end insert
begin insert

9(c) Statewide taxes and fees dedicated to the maintenance of
10the system have not been increased in more than 20 years, with
11those revenues losing more than 55 percent of their purchasing
12power, while costs to maintain the system have steadily increased
13and much of the underlying infrastructure has aged past its
14expected useful life.

end insert
begin insert

P6    1(d) California motorists are spending $17 billion annually in
2extra maintenance and car repair bills, which is more than $700
3per driver, due to the state’s poorly maintained roads.

end insert
begin insert

4(e) Failing to act now to address this growing problem means
5that more drastic measures will be required to maintain our system
6in the future, essentially passing the burden on to future
7generations instead of doing our job today.

end insert
begin insert

8(f) A five-year funding program will help address a portion of
9the maintenance backlog on the state’s road system and will stop
10the growth of the problem until a longer-term solution can be
11created.

end insert
begin insert

12(g) Modestly increasing various fees can spread the cost of road
13repairs broadly to all users and beneficiaries of the road network
14without over-burdening any one group.

end insert
begin insert

15(h) Improving the condition of the state’s road system will have
16a positive impact on the economy as it lowers the transportation
17costs of doing business, reduces congestion impacts for employees,
18and protects property values in the state.

end insert
begin insert

19(i) The federal government estimates that increased spending
20on infrastructure creates more than 13,000 jobs per $1 billion
21spent.

end insert
begin insert

22(j) Well-maintained roads benefit all users, not just drivers, as
23roads are used for all modes of transport, whether motor vehicles,
24transit, bicycles, or pedestrians.

end insert
begin insert

25(k) Well-maintained roads additionally provide significant health
26benefits and prevent injuries and death due to crashes caused by
27poorly-maintained infrastructure.

end insert
28

begin deleteSECTION 1.end delete
29begin insertSEC. 2.end insert  

Section 14526.7 is added to the Government Code, to
30read:

31

14526.7.  

(a) On and after February 1,begin delete 2016,end deletebegin insert 2017,end insert an allocation
32by the commission of all capital and support costs for each project
33in the state highway operation and protection program shall be
34required.

35(b) For a project that experiences increases in capital or support
36costs above the amounts in the commission’s allocation pursuant
37to subdivision (a), a supplemental project allocation request shall
38be submitted by the department to the commission for approval.

39(c) The commission shall establish guidelines to provide
40exceptions to the requirement of subdivision (b) that the
P7    1commission determines are necessary to ensure that projects are
2not unnecessarily delayed.

begin delete
3

SEC. 2.  

The Department of Transportation shall, by April 1,
42016, and as part of its budget for the 2016-17 fiscal year, prepare
5a plan to identify up to two hundred million dollars ($200,000,000)
6annually in cost savings from its budget, and shall submit the plan
7to the appropriate policy committees of the Senate and the
8Assembly.

end delete
9begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 14526.8 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
10read:end insert

begin insert
11

begin insert14526.8.end insert  

(a) On or before April 1, 2016, the department shall
12present to the commission a plan to increase department efficiency
13by up to 30 percent over the subsequent three years. The ongoing
14savings experienced through this increased efficiency shall result
15in increased capital expenditures in the department’s state highway
16operation and protection program or an increase in the
17department’s state highway maintenance program.

18(b) The commission shall consider the reasonableness of the
19proposal, and may approve the entire plan or reject all or portions
20of the plan. The commission’s feedback is intended to ensure that
21the department is achieving the savings in the most responsible
22way possible.

23(c) All future state highway operation and protection program
24documents shall identify the increased funding available to the
25program as a result of the efficiencies realized due to the
26implementation of the plan.

end insert
27begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 16321 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
28read:end insert

begin insert
29

begin insert16321.end insert  

(a) Notwithstanding any other law, on or before March
301, 2016, the Department of Finance shall compute the amount of
31outstanding loans made from the State Highway Account, the
32Motor Vehicle Fuel Account, the Highway Users Tax Account,
33and the Motor Vehicle Account to the General Fund. The
34department shall prepare a loan repayment schedule, pursuant to
35which the outstanding loans shall be repaid to the accounts from
36which the loans were made, as follows:

37(1) On or before June 30, 2016, 33 percent of the outstanding
38loan amounts.

39(2) On or before June 30, 2017, 33 percent of the outstanding
40loan amounts.

P8    1(3) On or before June 30, 2018, 34 percent of the outstanding
2loan amounts.

3(b) Notwithstanding any other provision of law, as the loans
4are repaid pursuant to this section, the repaid funds shall be
5transferred to the Road Maintenance and Rehabilitation Account
6created pursuant to Section 2031 of the Streets and Highways
7Code.

8(c) Funds for loan repayments pursuant to this section shall be
9appropriated from the Budget Stabilization Account pursuant to
10subclause (II) of clause (ii) of subparagraph (B) of paragraph (1)
11of subdivision (c) of Section 20 of Article XVI of the California
12Constitution.

end insert
13begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 7360 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
14amended to read:end insert

15

7360.  

(a) (1) begin insert(A)end insertbegin insertend insertA tax of eighteen cents ($0.18) is hereby
16imposed upon each gallon of fuel subject to the tax in Sections
177362, 7363, and 7364.

begin insert

18(B) In addition to the tax imposed pursuant to subparagraph
19(A), a tax of ten cents ($0.10) is hereby imposed upon each gallon
20of fuel subject to the tax in Sections 7362, 7363, and 7364. This
21subparagraph shall be inoperative in any fiscal year in which the
22Road Maintenance and Rehabilitation Program has not been
23authorized, pursuant to subdivision (b) of Section 2030 of the
24Streets and Highways Code.

end insert

25(2) If the federal fuel tax is reduced below the rate of nine cents
26($0.09) per gallon and federal financial allocations to this state for
27highway and exclusive public mass transit guideway purposes are
28reduced or eliminated correspondingly, the tax rate imposed by
29begin insert subparagraph (A) ofend insert paragraph (1), on and after the date of the
30reduction, shall be recalculated by an amount so that the combined
31state rate underbegin insert subparagraph (A) ofend insert paragraph (1) and the federal
32tax rate per gallon equal twenty-seven cents ($0.27).

33(3) If any person or entity is exempt or partially exempt from
34the federal fuel tax at the time of a reduction, the person or entity
35shall continue to be so exempt under this section.

36(b) (1) On and after July 1, 2010, in addition to the tax imposed
37by subdivision (a), a tax is hereby imposed upon each gallon of
38motor vehicle fuel, other than aviation gasoline, subject to the tax
39in Sections 7362, 7363, and 7364 in an amount equal to seventeen
40and three-tenths cents ($0.173) per gallon.

P9    1(2) For the 2011-12 fiscal year and each fiscal year thereafter,
2the board shall, on or before March 1 of the fiscal year immediately
3preceding the applicable fiscal year, adjust the rate in paragraph
4(1) in that manner as to generate an amount of revenue that will
5equal the amount of revenue loss attributable to the exemption
6provided by Section 6357.7, based on estimates made by the board,
7and that rate shall be effective during the state’s next fiscal year.

8(3) In order to maintain revenue neutrality for each year,
9beginning with the rate adjustment on or before March 1, 2012,
10the adjustment under paragraph (2) shall also take into account the
11extent to which the actual amount of revenues derived pursuant to
12this subdivision and, as applicable, Section 7361.1, the revenue
13loss attributable to the exemption provided by Section 6357.7
14resulted in a net revenue gain or loss for the fiscal year ending
15prior to the rate adjustment date on or before March 1.

16(4) The intent of paragraphs (2) and (3) is to ensure that the act
17adding this subdivision and Section 6357.7 does not produce a net
18revenue gain in state taxes.

19begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 10752 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
20amended to read:end insert

21

10752.  

(a) The annual amount of the license fee for any
22vehicle, other than a trailer or semitrailer, as described in
23subdivision (a) of Section 5014.1 of the Vehicle Code or a
24commercial motor vehicle described in Section 9400.1 of the
25Vehicle Code, or a trailer coach that is required to be moved under
26permit as authorized in Section 35790 of the Vehicle Code, shall
27be a sum equal to the following percentage of the market value of
28the vehicle as determined by the department:

29(1) Sixty-five hundredths of 1 percent on and after January 1,
302005, and before May 19, 2009.

31(2) One percent for initial and renewal registrations due on and
32after May 19, 2009, but before July 1, 2011.

33(3) Sixty-five hundredths of 1 percent for initial and renewal
34registrations due on and after July 1, 2011begin insert, but before July 1, 2015end insert.

begin insert

35(4) Seventy-two hundredths of 1 percent for initial and renewal
36registrations due on and after July 1, 2015, but before July 1, 2016.

end insert
begin insert

37(5) Seventy-nine hundredths of 1 percent for initial and renewal
38registrations due on and after July 1, 2016, but before July 1, 2017.

end insert
begin insert

39(6) Eighty-six hundredths of 1 percent for initial and renewal
40registrations due on and after July 1, 2017, but before July 1, 2018.

end insert
begin insert

P10   1(7) Ninety-three hundredths of 1 percent for initial and renewal
2registrations due on and after July 1, 2018, but before July 1, 2019.

end insert
begin insert

3(8) One percent for initial and renewal registrations due on and
4after July 1, 2019.

end insert

5(b) The annual amount of the license fee for any commercial
6vehicle as described in Section 9400.1 of the Vehicle Code, shall
7be a sum equal to 0.65 percent of the market value of the vehicle
8as determined by the department.

9(c) Notwithstanding Chapter 5 (commencing with Section
1011001) or any other law to the contrary, all revenues (including
11penalties), less refunds, attributable to that portion of the rate
12imposed pursuant to this section in excess of 0.65 percent shall be
13deposited into the General Fundbegin insert and shall be used for debt service
14on transportation general obligation bondsend insert
.

15begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 60050 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
16amended to read:end insert

17

60050.  

(a) (1) A tax of eighteen cents ($0.18) is hereby
18imposed upon each gallon of diesel fuel subject to the tax in
19Sections 60051, 60052, and 60058.

20(2) If the federal fuel tax is reduced below the rate of fifteen
21cents ($0.15) per gallon and federal financial allocations to this
22state for highway and exclusive public mass transit guideway
23purposes are reduced or eliminated correspondingly, the tax rate
24imposed by paragraph (1), including any reduction or adjustment
25pursuant to subdivision (b), on and after the date of the reduction,
26shall be increased by an amount so that the combined state rate
27under paragraph (1) and the federal tax rate per gallon equal what
28it would have been in the absence of the federal reduction.

29(3) If any person or entity is exempt or partially exempt from
30the federal fuel tax at the time of a reduction, the person or entity
31shall continue to be exempt under this section.

32(b) (1) On July 1, 2011, the tax rate specified in paragraph (1)
33of subdivision (a) shall be reduced to thirteen cents ($0.13) and
34every July 1 thereafter shall be adjusted pursuant to paragraphs
35(2) and (3).

36(2) For the 2012-13 fiscal year and each fiscal year thereafter,
37the board shall, on or before March 1 of the fiscal year immediately
38preceding the applicable fiscal year, adjust the rate reduction in
39paragraph (1) in that manner as to result in a revenue loss
40attributable to paragraph (1) that will equal the amount of revenue
P11   1gain attributable to Sections 6051.8 and 6201.8, based on estimates
2made by the board, and that rate shall be effective during the state’s
3next fiscal year.

4(3) In order to maintain revenue neutrality for each year,
5beginning with the rate adjustment on or before March 1, 2013,
6the adjustment under paragraph (2) shall take into account the
7extent to which the actual amount of revenues derived pursuant to
8Sections 6051.8 and 6201.8 and the revenue loss attributable to
9this subdivision resulted in a net revenue gain or loss for the fiscal
10year ending prior to the rate adjustment date on or before March
111.

12(4) The intent of paragraphs (2) and (3) is to ensure that the act
13adding this subdivision and Sections 6051.8 and 6201.8 does not
14produce a net revenue gain in state taxes.

begin insert

15(c) In addition to the tax imposed pursuant to subdivisions (a)
16and (b), an additional tax of twelve cents ($0.12) is hereby imposed
17upon each gallon of diesel fuel subject to the tax in Sections 60051,
1860052, and 60058. This subdivision shall be inoperative in any
19fiscal year in which the Road Maintenance and Rehabilitation
20Program has not been authorized, pursuant to subdivision (b) of
21Section 2030 of the Streets and Highways Code.

end insert
22begin insert

begin insertSEC. 8.end insert  

end insert

begin insertChapter 2 (commencing with Section 2030) is added
23to Division 3 of the end insert
begin insertStreets and Highways Codeend insertbegin insert, to read:end insert

begin insert

24 

25Chapter  begin insert2.end insert Road Maintenance and Rehabilitation
26Program
27

 

28

begin insert2030.end insert  

(a) The Road Maintenance and Rehabilitation Program
29is hereby created to address deferred maintenance on the state
30highway system and the local street and road system. Funds made
31available by the program shall be prioritized for expenditure on
32basic road maintenance and road rehabilitation projects, and on
33critical safety projects. The program shall be subject to
34reauthorization every five years by the Legislature. The California
35Transportation Commission shall identify the estimated funds to
36be available pursuant to this chapter for the program during any
37authorized five-year period, and shall adopt performance criteria
38to ensure efficient use of the funds.

39(b) The Legislature hereby authorizes the program for the
402015-16 to 2019-20 fiscal years, inclusive.

P12   1(c) If the Legislature does not reauthorize the program beyond
2the 2019-20 fiscal year, the increases in excise tax rates for motor
3vehicle fuel and diesel fuel associated with the revenues referenced
4in subdivision (a) of Section 2031, and the increase in the vehicle
5registration fee referenced in Section 9250.3 of the Vehicle Code,
6shall terminate at the end of the 2019-20 fiscal year.

7

begin insert2031.end insert  

The following revenues shall be deposited in the Road
8Maintenance and Rehabilitation Account, which is hereby created
9in the State Transportation Fund:

10(a) The revenues from the increase in the motor vehicle fuel
11excise tax by ten cents ($0.10) per gallon and the revenues from
12ten cents ($0.10) per gallon of the increase in the diesel fuel excise
13tax by twelve cents ($0.12) per gallon, as provided in Section
142103.1.

15(b) The revenues from the increase in the vehicle registration
16fee pursuant to Section 9250.3 of the Vehicle Code.

17(c) The revenues from the increase in the vehicle registration
18fee pursuant to Section 9250.6 of the Vehicle Code, except as
19provided in paragraph (2) of subdivision (b) of that section.

20(d) The revenues from vehicle weight fees redirected from
21transportation bond debt service to the State Highway Account,
22pursuant to the schedule set forth in subdivision (a) of Section
239400.5 of the Vehicle Code.

24(e) The revenues from repayment of loans made from the State
25Highway Account, the Motor Vehicle Fuel Account, the Highway
26Users Tax Account, and the Motor Vehicle Account to the General
27Fund, pursuant to the schedule set forth in Section 16321 of the
28Government Code.

29(f) Any other revenues designated for the program.

30

begin insert2032.end insert  

(a) Five percent of the revenues deposited in the Road
31Maintenance and Rehabilitation Account for the period of fiscal
32years specified in subdivision (b) of Section 2030 shall be set aside
33for counties in which voters approve, on or after July 1, 2015, a
34transactions and use tax for transportation purposes, and which
35counties did not, prior to that approval, impose a transactions and
36use tax for those purposes. The funds available under this
37subdivision in each fiscal year are hereby continuously
38appropriated for allocation to each eligible county and each city
39in the county for road maintenance and rehabilitation purposes
40pursuant to Section 2035. However, funds remaining unallocated
P13   1under this subdivision in any fiscal year shall be reallocated on
2the last day of the fiscal year pursuant to subdivision (b).

3(b) The remaining revenues deposited in the Road Maintenance
4and Rehabilitation Account for the period of fiscal years specified
5in subdivision (b) of Section 2030, including the revenues
6reallocated for the purposes of this subdivision pursuant to
7subdivision (a), are hereby continuously appropriated for road
8maintenance and rehabilitation purposes under the program, as
9follows:

10(1) Fifty percent for allocation to the department for
11maintenance of the state highway system or for purposes of the
12state highway operation and protection program.

13(2) Fifty percent for apportionment to cities and counties by the
14Controller pursuant to the formula in subparagraph (C) of
15paragraph (3) of subdivision (a) of Section 2103 for the purposes
16authorized by this chapter, subject to subdivision (d) of Section
172033 and paragraph (2) of subdivision (a) of Section 2034.

18

begin insert2033.end insert  

(a) The commission shall annually evaluate each agency
19receiving funds pursuant to this chapter.

20(b) For each fiscal year in which the department receives an
21allocation of funds pursuant to Section 2032, the department shall
22submit documentation to the commission that includes a description
23and the location of each completed project, the amount of funds
24expended on the project, the completion date, and the project’s
25estimated useful life. The commission shall evaluate the
26documentation to determine the effectiveness of the department in
27reducing deferred maintenance and improving road conditions on
28the state highway system, and may withhold future funding from
29the department if it determines that program funds have not been
30appropriately spent.

31(c) For each fiscal year in which an agency receives an
32apportionment of funds pursuant to subdivision (a) or paragraph
33(2) of subdivision (b) of Section 2032, the commission shall
34evaluate the documentation submitted pursuant to subdivision (b)
35of Section 2034 to determine the effectiveness of the agency in
36reducing deferred maintenance and improving road conditions
37within its jurisdiction.

38(d) If the commission determines, with respect to any given
39fiscal year, that a local agency has not appropriately spent its
40apportionment of funds, the commission shall direct the Controller
P14   1to make that agency ineligible to receive an apportionment during
2the next fiscal year. The Controller shall reapportion that agency’s
3share of funds to all other eligible local agencies pursuant to
4paragraph (2) of subdivision (b) of Section 2032.

5(e) The commission shall include a discussion of its evaluations
6pursuant to this section in its annual report to the Legislature
7pursuant to Section 14535 of the Government Code.

8

begin insert2034.end insert  

(a) (1) Prior to receiving an apportionment of funds
9under the program pursuant to paragraph (2) of subdivision (b)
10of Section 2032 from the Controller in a fiscal year, an eligible
11local agency shall submit to the commission a list of projects
12proposed to be funded with these funds pursuant to an adopted
13city, county, or city and county budget. All projects proposed to
14receive funding shall be included in a city, county, or city and
15county budget that is adopted by the applicable city council or
16board of supervisors at a regular public meeting. The list of
17projects proposed to be funded with these funds shall include a
18description and the location of each proposed project, a proposed
19schedule for the project’s completion, and the estimated useful life
20of the improvement. The project list shall not limit the flexibility
21of an eligible local agency to fund projects in accordance with
22local needs and priorities so long as the projects are consistent
23with subdivision (d).

24(2) The commission shall report to the Controller the local
25agencies that have submitted a list of projects as described in this
26subdivision and that are therefore eligible to receive an
27apportionment of funds under the program for the applicable fiscal
28year. The Controller, upon receipt of the report, shall apportion
29funds to eligible local agencies.

30(b) For each fiscal year, each local agency receiving an
31apportionment of funds shall, upon expending program funds,
32submit documentation to the commission that includes a description
33and location of each completed project, the amount of funds
34expended on the project, the completion date, and the project’s
35estimated useful life. The documentation shall also include a
36comparison of the projects the local agency would have completed
37without receiving funds under the program compared with the
38projects completed with these funds.

39(c) The documentation provided pursuant to subdivision (b)
40shall be forwarded by the commission to the department, in a
P15   1manner and form approved by the department, at the end of each
2fiscal year as long as program funds remain available for
3expenditure. The department may post the information contained
4in the documentation on its Internet Web site.

5(d) Funds made available to a local agency under the program
6shall be used for improvements to transportation facilities that
7will assist in reducing further deterioration of the existing road
8system. These improvements may include, but need not be limited
9to, pavement maintenance, rehabilitation, installation, construction,
10and reconstruction of necessary associated facilities such as
11drainage and traffic control devices, or safety projects to reduce
12fatalities. Funds made available under the program may also be
13used to satisfy the local match requirement in order to obtain state
14or federal transportation funds for similar purposes.

15

begin insert2035.end insert  

(a) On or before July 1, 2016, the commission, in
16cooperation with the department, transportation planning agencies,
17county transportation commissions, and other local agencies, shall
18develop guidelines for the allocation of funds pursuant to
19subdivision (a) of Section 2032.

20(b) The guidelines shall be the complete and full statement of
21the policy, standards, and criteria that the commission intends to
22use to determine how these funds will be allocated.

23(c) The commission may amend the adopted guidelines after
24conducting at least one public hearing.

25

begin insert2036.end insert  

(a) Cities and counties shall maintain their existing
26commitment of local funds for street, road, and highway purposes
27in order to remain eligible for an allocation or apportionment of
28funds pursuant to Section 2032.

29(b) In order to receive an allocation or apportionment pursuant
30to Section 2032, the city or county shall annually expend from its
31general fund for street, road, and highway purposes an amount
32not less than the annual average of its expenditures from its general
33fund during the 2009-10, 2010-11, and 2011-12 fiscal years, as
34reported to the Controller pursuant to Section 2151. For purposes
35of this subdivision, in calculating a city’s or county’s annual
36general fund expenditures and its average general fund
37expenditures for the 2009-10, 2010-11, and 2011-12 fiscal years,
38any unrestricted funds that the city or county may expend at its
39discretion, including vehicle in-lieu tax revenues and revenues
40from fines and forfeitures, expended for street, road, and highway
P16   1purposes shall be considered expenditures from the general fund.
2One-time allocations that have been expended for street and
3highway purposes, but which may not be available on an ongoing
4basis, including revenue provided under the Teeter Plan Bond
5Law of 1994 (Chapter 6.6 (commencing with Section 54773) of
6Part 1 of Division 2 of Title 5 of the Government Code), may not
7be considered when calculating a city’s or county’s annual general
8fund expenditures.

9(c) For any city incorporated after July 1, 2009, the Controller
10shall calculate an annual average of expenditure for the period
11between July 1, 2009 , and December 31, 2015, inclusive, that the
12city was incorporated.

13(d) For purposes of subdivision (b), the Controller may request
14fiscal data from cities and counties in addition to data provided
15pursuant to Section 2151, for the 2009-10, 2010-11, and 2011-12
16fiscal years. Each city and county shall furnish the data to the
17Controller not later than 120 days after receiving the request. The
18Controller may withhold payment to cities and counties that do
19not comply with the request for information or that provide
20incomplete data.

21(e) The Controller may perform audits to ensure compliance
22with subdivision (b) when deemed necessary. Any city or county
23that has not complied with subdivision (b) shall reimburse the
24state for the funds it received during that fiscal year. Any funds
25withheld or returned as a result of a failure to comply with
26subdivision (b) shall be reapportioned to the other counties and
27cities whose expenditures are in compliance.

28(f) If a city or county fails to comply with the requirements of
29subdivision (b) in a particular fiscal year, the city or county may
30expend during that fiscal year and the following fiscal year a total
31amount that is not less than the total amount required to be
32expended for those fiscal years for purposes of complying with
33subdivision (b).

end insert
34begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 2103.1 is added to the end insertbegin insertStreets and Highways
35Code
end insert
begin insert, to read:end insert

begin insert
36

begin insert2103.1.end insert  

Notwithstanding subdivision (b) of Section 2103, the
37portion of the revenues in the Highway Users Tax Account
38attributable to the increase in the tax rate on motor vehicle fuel
39by ten cents ($0.10) per gallon pursuant to subdivision (a) of
40Section 7360 of the Revenue and Taxation Code and the increase
P17   1in the tax rate by twelve cents ($0.12) per gallon on diesel fuel
2pursuant to subdivision (c) of Section 60050 of the Revenue and
3Taxation Code, as amended by the act adding this section, shall
4be deposited in the Road Maintenance and Rehabilitation Account
5created pursuant to Section 2031, except that the portion of the
6revenues attributable to two cents ($0.02) of the increase in the
7tax rate on diesel fuel shall be deposited in the Trade Corridors
8Improvement Fund for expenditure pursuant to Section 2192.

end insert
9begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 9250.3 is added to the end insertbegin insertVehicle Codeend insertbegin insert, to read:end insert

begin insert
10

begin insert9250.3.end insert  

(a) In addition to any other fees specified in this code
11or the Revenue and Taxation Code, a registration fee of thirty-five
12dollars ($35) shall be paid to the department for registration or
13renewal of registration of every vehicle subject to registration
14under this code, except those vehicles that are expressly exempted
15under this code from payment of registration fees.

16(b) (1) For any year in which the Road Maintenance and
17Rehabilitation Program is authorized pursuant to subdivision (b)
18of Section 2030 of the Streets and Highways Code, revenues from
19the fee shall be deposited in the Road Maintenance and
20Rehabilitation Account created pursuant to Section 2031 of the
21Streets and Highways Code.

22(2) For any year in which the Legislature does not reauthorize
23the Road Maintenance and Rehabilitation Program, this section
24shall be inoperative.

end insert
25begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 9250.6 is added to the end insertbegin insertVehicle Codeend insertbegin insert, to read:end insert

begin insert
26

begin insert9250.6.end insert  

(a) In addition to any other fees specified in this code
27or in the Revenue and Taxation Code, a registration fee of one
28hundred dollars ($100) shall be paid to the department for
29registration or renewal of registration of every zero-emission
30motor vehicle subject to registration under this code, except those
31motor vehicles that are expressly exempted under this code from
32payment of registration fees.

33(b) (1) For any year in which the Road Maintenance and
34Rehabilitation Program is authorized pursuant to subdivision (b)
35of Section 2030 of the Streets and Highways Code, revenues from
36the fee shall be deposited in the Road Maintenance and
37Rehabilitation Account created pursuant to Section 2031 of the
38Streets and Highways Code.

39(2) For any year in which the Legislature does not reauthorize
40the Road Maintenance and Rehabilitation Program, revenues from
P18   1the fee shall be deposited in the State Highway Account to be used
2for purposes of maintaining the state highway system or the state
3highway operation and protection program.

4(c) This section does not apply to a commercial motor vehicle
5subject to Section 9400.1.

6(d) For purposes of this section, “zero-emission motor vehicle”
7means a motor vehicle as described in subdivisions (c) and (d) of
8Section 44258 of the Health and Safety Code, or any other motor
9vehicle that is able to operate on any fuel other than gasoline or
10diesel fuel.

end insert
11begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 9400.5 is added to the end insertbegin insertVehicle Codeend insertbegin insert, to read:end insert

begin insert
12

begin insert9400.5.end insert  

(a) Notwithstanding Sections 9400.1, 9400.4, and
1342205 of this code, Sections 16773 and 16965 of the Government
14Code, Section 2103 of the Streets and Highways Code, or any
15other law, the amount of weight fee revenues otherwise to be
16transferred from the State Highway Account to the Transportation
17Debt Service Fund, the Transportation Bond Direct Payment
18Account, or any other fund or account for the purpose of payment
19of the debt service on transportation general obligation bonds, or
20for the purpose of being loaned to the General Fund, shall be
21reduced pursuant to the following schedule, with the applicable
22revenues thereby retained in the State Highway Account to be
23transferred to the Road Maintenance and Rehabilitation Account
24created pursuant to Section 2031 of the Streets and Highways
25Code:

26(1) For the 2015-16 fiscal year, by 20 percent.

27(2) For the 2016-17 fiscal year, by 40 percent.

28(3) For the 2017-18 fiscal year, by 60 percent.

29(4) For the 2018-19 fiscal year, by 80 percent.

30(5) For the 2019-20 fiscal year and in each subsequent fiscal
31year thereafter, by 100 percent.

32(b) For any year in which the Legislature does not reauthorize
33the Road Maintenance and Rehabilitation Program, pursuant to
34subdivision (b) of Section 2030 of the Streets and Highways Code,
35the revenues described in subdivision (a) shall be retained in the
36State Highway Account to be used for purposes of maintaining the
37state highway system or the state highway operation and protection
38program.

end insert
39begin insert

begin insertSEC. 13.end insert  

end insert
begin insert

This act is an urgency statute necessary for the
40immediate preservation of the public peace, health, or safety within
P19   1the meaning of Article IV of the Constitution and shall go into
2immediate effect. The facts constituting the necessity are:

end insert
begin insert

3In order to provide additional funding for road maintenance
4and rehabilitation purposes as quickly as possible, it is necessary
5for this act to take effect immediately.

end insert


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