California Legislature—2015–16 First Extraordinary Session

Senate BillNo. 10


Introduced by Senators Bates and Nguyen

(Coauthors: Senators Anderson, Fuller, Gaines, Huff, Runner, Stone, and Vidak)

(Coauthors: Assembly Members Baker and Bigelow)

July 16, 2015


An act to amend Sections 14524, 14525, 14527, 14529, 14529.1, 14529.8, and 65082 of, and to repeal Section 14530 of, the Government Code, and to amend Sections 164 and 193 of, to add Section 182.1 to, to repeal Sections 182.5 and 188.11 of, and to repeal and add Section 188.8 of, the Streets and Highways Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

SB 10, as introduced, Bates. Regional transportation capital improvement funds.

Existing law establishes the state transportation improvement program process, pursuant to which the California Transportation Commission generally programs and allocates available state and federal funds for transportation capital improvement projects, other than state highway rehabilitation and repair projects, over a multiyear period based on estimates of funds expected to be available. Existing law provides funding for these interregional and regional transportation capital improvement projects through the state transportation improvement program process, with 25% of funds available for interregional projects selected by the Department of Transportation through preparation of an interregional transportation improvement program and 75% for regional projects selected by transportation planning agencies through preparation of a regional transportation improvement program. Existing law requires funds available for regional projects to be programmed by the commission pursuant to the county shares formula, under which a certain amount of funding is available for programming in each county, based on population and miles of state highway. Existing law specifies the various types of projects that may be funded with the regional share of funds to include state highways, local roads, transit, and others.

This bill would revise the process for programming and allocating the 75% share of state and federal funds available for regional transportation improvement projects. The bill would require the department to annually apportion, by the existing formula, the county share for each county to the applicable metropolitan planning organization, transportation planning agency, or county transportation commission, as a block grant. These transportation capital improvement funds, along with an appropriate amount of capital outlay support funds, would be appropriated annually through the annual Budget Act to regional transportation agencies. The bill would require the regional transportation agencies, in their regional transportation improvement programs, to identify the transportation capital improvement projects to be funded with these moneys, and would require the California Transportation Commission to incorporate the regional transportation improvement programs into the state transportation improvement program. The bill would eliminate the role of the California Transportation Commission in programming and allocating funds to these regional projects, but would retain certain oversight roles of the commission with respect to expenditure of the funds. The bill would repeal provisions governing computation of county shares over multiple years and make various other conforming changes.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

P2    1

SECTION 1.  

Section 14524 of the Government Code is
2amended to read:

3

14524.  

(a) Not later than July 15, 2001, and July 15 of each
4odd-numbered year thereafter, the department shall submit to the
5commission a five-year estimate pursuant to Section 164 of the
6Streets and Highways Code, in annual increments, of all federal
7and state funds reasonably expected to be available during the
8following five fiscal years.

P3    1(b) The estimate shall specify the amount thatbegin delete may be
2programmed inend delete
begin insert is anticipated to be available for annual
3apportionment by the department pursuant to Section 182.1 of the
4Streets and Highways Code inend insert
each county for regional
5improvement programs pursuant to paragraph (2) of subdivision
6(a) of Section 164 of the Streets and Highways Code and shall
7identify any statutory restriction on the use of particular funds.

8(c) For the purpose of estimating revenues, the department shall
9assume that there will be no changes in existing state and federal
10statutes. Federal funds available for demonstration projects that
11are not subject to federal obligational authority, or are accompanied
12with their own dedicated obligational authority, shall not be
13considered funds that would otherwise be available to the state
14and shall not be included in the fund estimate.

15(d) The method by which the estimate is determined shall be
16determined by the commission, in consultation with the department,
17transportation planning agencies, and county transportation
18 commissions.

19

SEC. 2.  

Section 14525 of the Government Code is amended
20to read:

21

14525.  

(a) Not later than August 15, 2001, and August 15 of
22each odd-numbered year thereafter, the commission shall adopt a
23five-year estimate pursuant to Section 164 of the Streets and
24Highways Code, in annual increments, of all state and federal funds
25reasonably expected to be available during the following five fiscal
26years.

27(b) The estimate shall specify the amount thatbegin delete may be
28programmedend delete
begin insert is anticipated to be available for annual
29apportionment by the department pursuant to Section 182.1 of the
30Streets and Highway Codeend insert
in each county for regional
31improvement programs under paragraph (2) of subdivision (a) of
32Section 164 of the Streets and Highways Code and shall identify
33any statutory restriction on the use of particular funds.

34(c) For the purpose of estimating revenues, the commission
35shall assume that there will be no change in existing state and
36federal statutes. Federal funds available for demonstration projects
37that are not subject to federal obligational authority, or are
38accompanied with their own dedicated obligational authority, shall
39not be considered funds that would otherwise be available to the
40state and shall not be included in the fund estimate.

P4    1(d) If the commission finds that legislation pending before the
2Legislature or the United States Congress may have a significant
3impact on the fund estimate, the commission may postpone the
4adoption of the fund estimate for no more than 90 days. Prior to
5 March 1 of each even-numbered year, the commission may amend
6the estimate following consultation with the department,
7transportation planning agencies, and county transportation
8commissions to account for unexpected revenues or other
9unforeseen circumstances. In the event the fund estimate is
10amended, the commission shall extend the dates for the submittal
11of improvement programs as specified in Sections 14526 and 14527
12and for the adoption of the state transportation improvement
13program pursuant to Section 14529.

14

SEC. 3.  

Section 14527 of the Government Code is amended
15to read:

16

14527.  

(a) After consulting with the department, the regional
17transportation planning agencies and county transportation
18commissions shall adopt and submit to the commission and the
19department, not later than December 15, 2001, and December 15
20of each odd-numbered year thereafter, a five-year regional
21transportation improvement program in conformance with Section
2265082. In counties where a county transportation commission has
23been created pursuant to Chapter 2 (commencing with Section
24130050) of Division 12 of the Public Utilities Code, that
25commission shall adopt and submit the county transportation
26improvement program, in conformance with Sections 130303 and
27130304 of that code, to the multicounty-designated transportation
28planning agency. Other information, including a program for
29expenditure of local or federal funds, may be submitted for
30information purposes with the program, but only at the discretion
31of the transportation planning agencies or the county transportation
32commissions. As used in this section, “county transportation
33commission” includes a transportation authority created pursuant
34to Chapter 2 (commencing with Section 130050) of Division 12
35of the Public Utilities Code.

36(b) The regional transportation improvement program shall
37include all projects to be funded with the county share under
38paragraph (2) of subdivision (a) of Section 164 of the Streets and
39Highways Code. The regional programs shall be limited to projects
40to be funded in whole or in part with the county sharebegin delete that shall
P5    1include all projects to receive allocations by the commissionend delete
during
2the following five fiscal years. For each project, the total
3expenditure begin insertin each year end insertfor each project componentbegin delete and the total
4amount of commission allocation and the year of allocationend delete
shall
5be stated. The total cost of projects to be funded with the county
6share begin insertin each year end insertshall not exceed the begin insertanticipated apportionment end insert
7amount specified in the fund estimate made by the commission
8pursuant to Section 14525.

9(c) The regional transportation planning agencies and county
10transportation commissions may recommend projects to improve
11state highways with the interregional share pursuant to subdivision
12(b) of Section 164 of the Streets and Highways Code. The
13recommendations shall be separate and distinct from the regional
14transportation improvement program. A project recommended for
15funding pursuant to this subdivision shall constitute a usable
16segment and shall not be a condition for inclusion of other projects
17in the regional transportation improvement program.

18(d) The department may nominate or recommend the inclusion
19of projects in the regional transportation improvement program to
20improve state highways with the county share pursuant to
21paragraph (2) of subdivision (a) and subdivision (e) of Section 164
22of the Streets and Highways Code. A regional transportation
23planning agency and a county transportation commission shall
24have sole authority for determining whether any of the project
25nominations or recommendations are accepted and included in the
26regional transportation improvement program adopted and
27submitted pursuant to this section. This authority provided to a
28regional transportation planning agency or to a county
29transportation commission extends only to a project located within
30its jurisdiction.

31(e) Major projects shall include current costs updated as of
32November 1 of the year of submittal and escalated to the
33appropriate year, and shall be consistent with, and provide the
34information required in, subdivision (b) of Section 14529.

35(f) The regional transportation improvement program may not
36change the project delivery milestone date of any project as shown
37in the prior adopted state transportation improvement program
38without the consent of thebegin delete department or otherend delete agency responsible
39for the project’s delivery.

P6    1(g) Projects may not be included in the regional transportation
2improvement program without a complete project study report or,
3for a project that is not on a state highway, a project study report
4equivalent or major investment study.

5(h) Each transportation planning agency and county
6transportation commission maybegin delete request and receiveend deletebegin insert useend insert an amount
7not to exceed 5 percent of its county share begin insertapportionment end insertfor the
8purposes of project planning, programming, and monitoring.

9

SEC. 4.  

Section 14529 of the Government Code is amended
10to read:

11

14529.  

(a) The state transportation improvement program shall
12include a listing of all capital improvement projects that are
13expected to receive an allocation of state transportation funds under
14begin insert paragraph (1) of subdivision (a) ofend insert Section 164 of the Streets and
15Highways Codebegin delete, includingend deletebegin insert orend insert revenues from transportation bond
16actsbegin delete,end delete from the commission during the following five fiscal yearsbegin insert,
17 and all capital improvement projects that are expected to be funded
18with apportionments of regional transportation funds under
19paragraph (2) of Section 164 of the Streets and Highways Code
20as listed in the regional transportation improvement program
21adopted pursuant to Sections 14527 and 65082 during the
22following five yearsend insert
. It shall include, and be limited to, the projects
23to be funded with the following:

24(1) Interregional improvement funds.

25(2) Regional improvement fundsbegin insert apportioned pursuant to
26Section 182.1 of the Streets and Highways Codeend insert
.

27(b) For each project, the program shall specify the allocation or
28expenditure amount and the allocation or expenditure year for each
29of the following project components:

30(1) Completion of all permits and environmental studies.

31(2) Preparation of plans, specifications, and estimates.

32(3) The acquisition of rights-of-way, including, but not limited
33to, support activities.

34(4) Construction and construction management and engineering,
35including surveys and inspection.

36(c) Funding for right-of-way acquisition and construction for a
37project may be included in the program only if the commission
38makes a finding that the sponsoring agency will complete the
39environmental process and can proceed with right-of-way
40acquisition or construction within the five-year period. No
P7    1allocation for right-of-way acquisition or construction shall be
2 made until the completion of the environmental studies and the
3selection of a preferred alternative.

4(d) The commission shall adopt and submit to the Legislature
5and the Governor, not later than April 1 of each even-numbered
6year thereafter, a state transportation improvement program. The
7program shall cover a period of five years, beginning July 1 of the
8year it is adopted, and shall be a statement of intent by the
9commission for the allocation or expenditure of funds during those
10five years. The program shall include projects which are expected
11to receive funds prior to July 1 of the year of adoption, but for
12which the commission has not yet allocated funds.

13(e) The projects included in the adopted state transportation
14improvement program shall be limited to those projects submitted
15or recommended pursuant to Sections 14526 and 14527. The total
16amount programmed in each fiscal year for each program category
17shall not exceed the amount specified in the fund estimate adopted
18under Section 14525.

19(f) The state transportation improvement program is a resource
20management document to assist the state and local entities to plan
21and implement transportation improvements and to utilize available
22resources in a cost-effective manner. It is a document for each
23county and each region to declarebegin delete theirend deletebegin insert itsend insert intent to use available
24state and federal funds in a timely and cost-effective manner.

25(g) Prior to the adoption of the state transportation improvement
26program, the commission shall hold not less than one hearing in
27northern California and one hearing in southern California to
28reconcile any objections by any county or regional agency to the
29department’s program or the department’s objections to any
30regional program.

31(h) The commission shall incorporate projects that are included
32in the regional transportation improvement program and are to be
33funded with regional improvement funds, unless the commission
34finds that the regional transportation improvement program is not
35consistent with the guidelines adopted by the commission or is not
36a cost-effective expenditure of state funds, in which case the
37commission may reject the regional transportation improvement
38program in its entirety. The finding shall be based on an objective
39analysis, including, but not limited to, travel forecast, cost, and air
40quality. The commission shall hold a public hearing in the affected
P8    1county or region prior to rejecting the program, or not later than
260 days after rejecting the program. When a regional transportation
3improvement program is rejected, the regional entity may submit
4a new regional transportation improvement program for inclusion
5in the state transportation improvement program. The commission
6shall not reject a regional transportation improvement program
7unless, not later than 60 days after the date it received the program,
8it provided notice to the affected agency that specified the factual
9basis for its proposed action.

10(i) A project may be funded with more than one of the program
11categories listed in Section 164 of the Streets and Highways Code.

12(j) Notwithstanding any other provision of law, no local or
13regional matching funds shall be required for projects that are
14included in the state transportation improvement program.

15(k) The commission may include a project recommended by a
16regional transportation planning agency or county transportation
17commission pursuant to subdivision (c) of Section 14527, if the
18commission makes a finding, based on an objective analysis, that
19the recommended project is more cost-effective than a project
20submitted by the department pursuant to Section 14526.

21

SEC. 5.  

Section 14529.1 of the Government Code is amended
22to read:

23

14529.1.  

The commission shall establish guidelines for the
24allocation of funds tobegin insert, or the use of funds by,end insert an entity for a project
25to verify that the entity has the resources and capabilities to
26implement the project in a timely manner and may establish a
27process for monitoring the progress being made and proper use of
28funds. The guidelines and process shall be kept to the minimum
29needed to protect state fundsbegin insert made available pursuant to Section
30164 of the Streets and Highways Codeend insert
and provide for a timely
31use of those funds. The commission shall request that the entity
32receiving funds accept an audit of funds allocated to it by the
33commission if an audit is deemed necessary.

34

SEC. 6.  

Section 14529.8 of the Government Code is amended
35to read:

36

14529.8.  

(a) Fundsbegin insert subject to allocation by the commissionend insert
37 may be allocated by the commission for each project element
38during the fiscal year that is identified in the state transportation
39improvement program and the funds shall be available for
40expenditure during that fiscal year and the following two fiscal
P9    1years. Any funds not allocated, or allocated but not encumbered,
2during the period specified in this section, shall remain in the State
3Highway Account or Public Transportation Account, or be returned
4to that particular account, as the case may be.

5(b) Upon a finding that an unforeseen and extraordinary
6circumstance beyond the control of the responsible agency has
7occurred that justifies an extension, the commission may extend
8the deadlines specified in subdivision (a). The deadline extensions
9shall not exceed the period of delay directly attributed to the
10extraordinary circumstance and in no event be more than 20
11months. The commission shall not grant more than one extension.

12

SEC. 7.  

Section 14530 of the Government Code is repealed.

begin delete
13

14530.  

The commission may deviate, in the adoption of the
14state transportation improvement program, from a regional
15transportation improvement program based on a finding that there
16(a) are inconsistencies between the program and the appropriate
17guidelines, (b) are insufficient funds available to implement the
18program, (c) are conflicts between the regional transportation
19improvement programs, (d) are conflicts between a regional
20transportation improvement program and the department’s
21recommendations in its transportation improvement program, (e)
22is an overriding state need for a project to adequately accommodate
23interregional traffic, or (f) is no adopted congestion management
24program for a county in which a project is proposed.

end delete
begin delete

14530.  

The commission may deviate, in the adoption of the state transportation improvement program, from a regional transportation improvement program based on a finding that there (a) are inconsistencies between the program and the appropriate guidelines, (b) are insufficient funds available to implement the program, (c) are conflicts between the regional transportation improvement programs, (d) are conflicts between a regional transportation improvement program and the department’s recommendations in its transportation improvement program, (e) is an overriding state need for a project to adequately accommodate interregional traffic, or (f) is no adopted congestion management program for a county in which a project is proposed.

end delete

SEC. 8.  

Section 65082 of the Government Code is amended to read:

65082.  

(a) (1) A five-year regional transportation improvement program shall be prepared, adopted, and submitted to the California Transportation Commission on or before December 15 of each odd-numbered year thereafter, updated every two years, pursuant to Sections 65080 and 65080.5 and the guidelines adopted pursuant to Section 14530.1, to include regional transportation improvement projects and programs proposed to be funded, in whole or in part,begin delete in the state transportation improvement programend deletebegin insert from regional program funds apportioned as county shares pursuant to Section 182.1 of the Streets and Highways Code. Each regional transportation improvement program shall be incorporated by the commission into the state transportation improvement programend insert.

(2) Major projects shall include current costs updated as of November 1 of the year of submittal and escalated to the appropriate year, and be listed by relative priority, taking into account need, delivery milestone dates, and the availability of funding.

(b) Except for those counties that do not prepare a congestion management program pursuant to Section 65088.3, congestion management programs adopted pursuant to Section 65089 shall be incorporated into the regional transportation improvement program submitted to the commission by December 15 of each odd-numbered year.

(c) Local projects not included in a congestion management program shall not be included in the regional transportation improvement program. Projects and programs adopted pursuant to subdivision (a) shall be consistent with the capital improvement program adopted pursuant to paragraph (5) of subdivision (b) of Section 65089, and the guidelines adopted pursuant to Section 14530.1.

(d) Other projects may be included in the regional transportation improvement program if listed separately.

(e) Unless a county not containing urbanized areas of over 50,000 population notifies the Department of Transportation by July 1 that it intends to prepare a regional transportation improvement program for that county, the department shall, in consultation with the affected local agencies, prepare the program for all counties for which it prepares a regional transportation plan.

(f) The requirements for incorporating a congestion management program into a regional transportation improvement program specified in this section do not apply in those counties that do not prepare a congestion management program in accordance with Section 65088.3.

(g) The regional transportation improvement program may include a reserve of county shares for providing funds in order to match federal funds.

SEC. 9.  

Section 164 of the Streets and Highways Code is amended to read:

164.  

(a) Funds made available for transportation capital improvement projects under subdivision (e) of Section 163 shall be programmed and expended for the following program categories:

(1) Twenty-five percent for interregional improvements.

(2) Seventy-five percent for regional improvements.

(b) Sixty percent of the funds available for interregional improvements under paragraph (1) of subdivision (a) shall be programmed and expended for improvements to state highways that are specified in Sections 164.10 to 164.20, inclusive, and that are outside the boundaries of an urbanized area with a population of more than 50,000, and for intercity railbegin delete improvementsend deletebegin insert projectsend insert.

(c) Not less than 15 percent of the amount of funds programmed under subdivision (b) shall be programmed for intercity railbegin delete improvementend delete projects, including begin insertgrade end insertseparationbegin delete of gradeend delete projects.

(d) Funds made available under paragraph (1) of subdivision (a) shall be used for transportation improvement projects that are needed to facilitate interregional movement of people and goods. The projects may include state highway, intercity begin deletepassengerend delete rail, mass transit guideway, or grade separation projects.

(e) Funds made available under paragraph (2) of subdivision (a) shall be begin insertapportioned pursuant to Section 182.1 to metropolitan planning organizations, transportation planning agencies, and county transportation commissions, and end insertused for transportation improvement projects that are needed to improve transportation within the region. begin insertAvailable state funds may be used to provide the required match for federal funds. end insertThe projects may include, but shall not be limited to,begin delete improvingend delete statebegin delete highwaysend deletebegin insert highwayend insert, localbegin delete roadsend deletebegin insert roadend insert, public transit, intercity rail, pedestrian,begin delete andend delete bicyclebegin delete facilitiesend delete,begin delete andend delete grade separation,begin insert soundwall, intermodal facility,end insert transportation system management, transportation demand management,begin delete soundwall projects, intermodal facilities,end deletebegin insertand end insertsafetybegin delete, and providing funds to match federal fundsend deletebegin insert projectsend insert.

SEC. 10.  

Section 182.1 is added to the Streets and Highways Code, to read:

182.1.  

(a)  Notwithstanding Section 182, the funds available for regional improvements pursuant to paragraph (2) of subdivision (a) of Section 164 shall be apportioned annually by the department as block grants to metropolitan planning organizations designated pursuant to Section 134 of Title 23 of the United States Code and, in those areas where no such organization has been designated, to the transportation planning agencies designated pursuant to Section 29532 or 29532.1 of the Government Code. The metropolitan planning organizations and transportation planning agencies shall use the funds for the purposes specified in subdivision (e) of Section 164 and shall program the funds in the regional transportation improvement plan prepared pursuant to Section 65082. In each county where a county transportation commission has been created pursuant to Division 12 (commencing with Section 130000) of the Public Utilities Code, the funds shall be apportioned to the county transportation commission rather than to the metropolitan planning organization.

(b) Each annual Budget Act shall contain an appropriation of federal and state transportation funds for local assistance pursuant to subdivision (a), and an appropriation of local assistance capital outlay support funds appropriate for the activities to be carried out.

(c)  The department shall apportion the available funds consistent with the requirements of Sections 188 and 188.8.

SEC. 11.  

Section 182.5 of the Streets and Highways Code is repealed.

begin delete

182.5.  

(a) It is the intent of the Legislature that the transition to the new programs and procedures established in the bill enacting this section shall be fair and equitable and minimize disruptions in the delivery of projects. With specific reference to the transition from county minimums to county shares for regional improvement, no project should be counted twice, no project that would be counted under either the old or new procedures should escape being counted in the transition, shares should be sufficient to fund projects programmed in the 1996 State Transportation Improvement Program for the same period, no incentive or reward should be provided for delaying a project, and no incentive or reward should be provided for allocating funds to a project earlier than the year in which the funds are needed for the project.

(b) At the end of the fiscal year ending June 30, 1998, the county minimums and county minimum deficits shall be recalculated under the law as it existed prior to the enactment of the bill adding this section.

(c) Notwithstanding Section 164, there shall be set aside sufficient funding for every project that is included in the 1996 State Transportation Improvement Program. This funding shall be set aside in the fund estimate prior to and in addition to the distribution of funding between programs pursuant to Section 164.

(d) The amount of the cumulative county minimum deficit calculated for any county pursuant to subdivision (b) shall be carried forward as a county share for the 1998 State Transportation Improvement Program, prior to and in addition to the computation of county shares pursuant to subdivision (a) of Section 188.8.

(e) The commission shall not allocate funds for any project unless the commission has programmed the state transportation improvement program in a manner that complies with the requirements of Sections 188, 188.8, and 188.11.

(f) Notwithstanding subdivision (a), for a county within the region defined by Section 66502 of the Government Code where funds were traded in the 1996 State Transportation Improvement Program to another county in that region, the county share for that county for the 1998 State Transportation Improvement Program shall be increased by the amount of the trade in the 1996 State Transportation Improvement Program, as if the share were a county minimum deficit under subdivision (d).

(g) In adopting the 1998 State Transportation Improvement Program, the commission shall, at a minimum, fund all intercity rail projects that are included in the adopted 1996 State Transportation Improvement Program. The amount of funds programmed for each project shall not be less than the amount in the 1996 State Transportation Improvement Program.

(h) The commission, after consulting with the department and the regional planning agencies, shall adopt interim guidelines and procedures relative to fund estimates and project selection in a manner that the first state transportation improvement program, pursuant to the provisions of the act adding this section, is adopted not later than June 1, 1998.

end delete
begin delete

182.5.  

(a) It is the intent of the Legislature that the transition to the new programs and procedures established in the bill enacting this section shall be fair and equitable and minimize disruptions in the delivery of projects. With specific reference to the transition from county minimums to county shares for regional improvement, no project should be counted twice, no project that would be counted under either the old or new procedures should escape being counted in the transition, shares should be sufficient to fund projects programmed in the 1996 State Transportation Improvement Program for the same period, no incentive or reward should be provided for delaying a project, and no incentive or reward should be provided for allocating funds to a project earlier than the year in which the funds are needed for the project.

(b) At the end of the fiscal year ending June 30, 1998, the county minimums and county minimum deficits shall be recalculated under the law as it existed prior to the enactment of the bill adding this section.

(c) Notwithstanding Section 164, there shall be set aside sufficient funding for every project that is included in the 1996 State Transportation Improvement Program. This funding shall be set aside in the fund estimate prior to and in addition to the distribution of funding between programs pursuant to Section 164.

(d) The amount of the cumulative county minimum deficit calculated for any county pursuant to subdivision (b) shall be carried forward as a county share for the 1998 State Transportation Improvement Program, prior to and in addition to the computation of county shares pursuant to subdivision (a) of Section 188.8.

(e) The commission shall not allocate funds for any project unless the commission has programmed the state transportation improvement program in a manner that complies with the requirements of Sections 188, 188.8, and 188.11.

(f) Notwithstanding subdivision (a), for a county within the region defined by Section 66502 of the Government Code where funds were traded in the 1996 State Transportation Improvement Program to another county in that region, the county share for that county for the 1998 State Transportation Improvement Program shall be increased by the amount of the trade in the 1996 State Transportation Improvement Program, as if the share were a county minimum deficit under subdivision (d).

(g) In adopting the 1998 State Transportation Improvement Program, the commission shall, at a minimum, fund all intercity rail projects that are included in the adopted 1996 State Transportation Improvement Program. The amount of funds programmed for each project shall not be less than the amount in the 1996 State Transportation Improvement Program.

(h) The commission, after consulting with the department and the regional planning agencies, shall adopt interim guidelines and procedures relative to fund estimates and project selection in a manner that the first state transportation improvement program, pursuant to the provisions of the act adding this section, is adopted not later than June 1, 1998.

end delete

SEC. 12.  

Section 188.8 of the Streets and Highways Code is repealed.

begin delete

188.8.  

(a) From the funds programmed pursuant to Section 188 for regional improvement projects, the commission shall approve programs and program amendments, so that funding is distributed to each county of County Group No. 1 and in each county of County Group No. 2 during the county share periods commencing July 1, 1997, and ending June 30, 2004, and each period of four years thereafter. The amount shall be computed as follows:

(1) The commission shall compute, for the county share periods all of the money to be expended for regional improvement projects in County Groups Nos. 1 and 2, respectively, as provided in Section 188.

(2) From the amount computed for County Group No. 1 in paragraph (1) for the county share periods the commission shall determine the amount of programming for each county in the group based on a formula that is based 75 percent on the population of the county to the total population of County Group No. 1 and 25 percent on state highway miles in the county to the total state highway miles in County Group No. 1.

(3) From the amount computed for County Group No. 2 in paragraph (1) for the county share periods the commission shall determine the amount of programming for each county in the group based on a formula that is based 75 percent on the population of the county to the total population of County Group No. 2 and 25 percent on state highway miles in the county to the total state highway miles in County Group No. 2.

(b) Notwithstanding subdivision (a), that portion of the county population and state highway mileage in El Dorado and Placer Counties that is included within the jurisdiction of the Tahoe Regional Planning Agency shall be counted separately toward the area under the jurisdiction of the Tahoe Regional Transportation Agency and may not be included in El Dorado and Placer Counties. The commission shall approve programs, program amendments, and fund reservations for the area under the jurisdiction of the Tahoe Regional Transportation Agency that shall be calculated using the formula described in paragraph (2) of subdivision (a).

(c) A transportation planning agency designated pursuant to Section 29532 of the Government Code, or a county transportation commission created by Division 12 (commencing with Section 130000) of the Public Utilities Code, may adopt a resolution to pool its county share programming with any county or counties adopting similar resolutions to consolidate its county shares for two consecutive county share periods into a single share covering both periods. A multicounty transportation planning agency with a population of less than three million may also adopt a resolution to pool the share of any county or counties within its region. The resolution shall provide for pooling the county share programming in any of the pooling counties for the new single share period and shall be submitted to the commission not later than May 1 immediately preceding the commencement of the county share period.

(d) For the purposes of this section, funds programmed shall include the following costs pursuant to subdivision (b) of Section 14529 of the Government Code:

(1) The amounts programmed or budgeted for both components of project development in the original programmed year.

(2) The amount programmed for right-of-way and right-of-way support costs in the year programmed in the most recent state transportation improvement program. If the final estimate is greater than 120 percent or less than 80 percent of the amount originally programmed, the amount shall be adjusted for final expenditure estimates at the time of right-of-way certification.

(3) The engineer’s final estimate of project costs, including construction support, presented to the commission for approval pursuant to Section 14533 of the Government Code in the year programmed in the most recent state transportation improvement program. If the construction contract award amount is less than 80 percent of the engineer’s final estimate, excluding construction support, the department shall notify the commission and the commission may adjust its project allocation accordingly.

(4) Project costs shown in the program, as amended, where project allocations have not yet been approved by the commission, escalated to the date of scheduled project delivery.

(e) Project costs shown in the program may not be changed to reflect any of the following:

(1) Differences that are within 20 percent of the amount programmed for actual project development cost.

(2) Differences that are within 20 percent of the amount reported at the time of allocation pursuant to paragraph (2) of subdivision (d) for actual right-of-way costs calculated at the time of acceptance of a project construction contract.

(3) Construction contract award amounts, except when those amounts are less than 80 percent of the engineer’s final estimate, excluding construction support, and the commission has adjusted the project construction allocation.

(4) Changes in construction expenditures, except for supplemental project allocations made by the commission, including supplemental allocations made pursuant to subdivision (b) of Section 188.9.

(f) For the purposes of this section, the population in each county is that determined by the last preceding federal census, or a subsequent census validated by the Population Research Unit of the Department of Finance, at the beginning of each county share period.

(g) For the purposes of this section, “state highway miles” means the miles of state highways open to vehicular traffic at the beginning of each county share period.

(h) It is the intent of the Legislature that there is to be flexibility in programming under this section and Section 188 so that, while ensuring that each county will receive an equitable share of state transportation improvement program funding, the types of projects selected and the programs from which they are funded may vary from county to county.

(i) Commencing with the four-year period commencing on July 1, 2004, individual county share shortfalls and surpluses at the end of each four-year period, if any, shall be carried forward and credited or debited to the following four years.

(j) The commission, with the consent of the department, may consider programming projects in the state transportation improvement program in a county with a population of not more than 1,000,000 at a level higher or lower than the county share, when the regional agency either asks to reserve part or all of the county’s share until a future programming year, to build up a larger share for a higher cost project, or asks to advance an amount of the share, in an amount not to exceed 200 percent of the county’s current share, for a larger project, to be deducted from shares for future programming years. After consulting with the department, the commission may adjust the level of programming in the regional program in the affected region against the level of interregional programming in the improvement program to accomplish the reservation or advancement, for the current state transportation improvement program. The commission shall keep track of any resulting shortfalls or surpluses in county shares.

(k) Notwithstanding subdivision (a), in a region defined by Section 66502 of the Government Code, the transportation planning agency may adopt a resolution to pool the county share of any county or counties within the region, if each county receives no less than 85 percent and not more than 115 percent of its county share for a single county share period and 100 percent of its county share over two consecutive county share periods. The resolution shall be submitted to the commission not later than May 1, immediately preceding the commencement of the county share period.

(l) Federal funds used for federal demonstration projects that use federal obligational authority otherwise available for other projects shall be subtracted from the county share of the county where the project is located.

end delete

SEC. 13.  

Section 188.8 is added to the Streets and Highways Code, to read:

188.8.  

The commission shall compute annual county share amounts for the purpose of the apportionment of regional improvement funds by the department pursuant to Section 182.1. The total amount available shall first be divided pursuant to Section 188. From the amount computed for each county group, the commission shall compute the county share for each county in both of the county groups, based on a formula that is based 75 percent on the population of the county to the total population of its county group and 25 percent on the state highway miles in the county to the total number of state highway miles in its county group.

SEC. 14.  

Section 188.11 of the Streets and Highways Code is repealed.

begin delete

188.11  

(a) The commission, with assistance from the department and regional agencies, shall maintain a long-term balance of shares, shortfalls, and surpluses for regional improvement programs.

(b) The balance shall include all of the following:

(1) Shares from the fund estimate for each state transportation improvement program pursuant to Section 14525 of the Government Code.

(2) Amounts programmed in each state transportation improvement program pursuant to Section 14529 of the Government Code.

(3) Surpluses or shortfalls due to reservations or advancements pursuant to subdivision (j) of Section 188.8.

(4) Amounts deducted or added because of changes in project development costs or a cost increase or savings in the final engineering estimate or the final right-of-way certification estimate at the time of allocation for construction, pursuant to subdivisions (d) and (e) of Section 188.8.

(5) Any supplemental project allocations during or following construction, including supplemental allocations made pursuant to subdivision (b) of Section 188.9.

(6) Amounts deducted or added because of amendments to the state transportation improvement program that add, delete, or change the scope and cost of regional improvement projects, pursuant to Section 14531 of the Government Code.

(c) The balance through the preceding fiscal year shall be made available for review by all regional agencies at the time of each fund estimate, and by not later than August 15 of each year.

(d) The commission, through the fund estimate, shall restore for the next state transportation improvement program the interregional improvement program level specified in subdivision (a) of Section 164.

end delete

SEC. 15.  

Section 193 of the Streets and Highways Code is amended to read:

193.  

The State Highway Account money allocated and available each year for state highways shall be expendedbegin delete by the departmentend delete:

(a) On the locations determined by the commission, to acquire the necessary real property or interests therein for, and to construct or improve to standards justified by traffic requirements, the state highways in the state highway system.

(b) To construct or improve highways in state parks in the manner provided by law.



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