BILL NUMBER: SBX1 1	AMENDED
	BILL TEXT
	AMENDED IN SENATE  APRIL 21, 2016
	AMENDED IN SENATE  SEPTEMBER 1, 2015
	AMENDED IN SENATE  AUGUST 25, 2015
	AMENDED IN SENATE  JULY 14, 2015
INTRODUCED BY   Senator Beall
    (   Coauthors:   Senators   Allen,
  Hall,   Hertzberg,   McGuire, 
 and Mendoza   ) 
                        JUNE 22, 2015
   An act to  amend Sections 13975, 14500, 14526.5, and 16965 of,
to  add Sections  14007.3, 14033,  14526.7, 14526.8,
 14528, 14528.1, and 16321 to   14526.9, 16321,
and 16965.2 to, to   add Part 5.1 (commencing with Section
14460) to Division 3 of Title 2 of, and to repeal Section 14534.1 of,
 the Government Code,   to amend Section 39719 of the
Health and Safety Code, to amend Section 21080.37 of, and to add
Division 13.6 (commencing with Section 21200) to, the Public
Resources Code, to amend Section 99312.1 of the Public Utilities
Code,   to amend Sections  7360   6051.8,
6201.8, 7360, 8352.4, 8352.5, 8352.6,  and 60050 of the Revenue
and Taxation Code, to  amend Sections 143, 183.1, and 820.1 of,
to  add  Section   Sections  2103.1
 and 2103.2  to, to add Article 8 (commencing with Section
228) to Chapter 1 of Division 1 of, and to add Chapter 2 (commencing
with Section 2030) to Division 3 of, the Streets and Highways Code,
and to add Sections  9250.3 and 9250.6 to  
9250.3, 9250.6, 9400.5, and 9400.6 to  the Vehicle Code,
relating to transportation, making an appropriation therefor, and
declaring the urgency thereof, to take effect immediately.
	LEGISLATIVE COUNSEL'S DIGEST
   SB 1, as amended, Beall. Transportation  funding.
  funding: environmental mitigation: oversight. 
   (1) Existing law provides various 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.
   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 and for other specified
purposes. 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 attributable to a $0.12 per gallon increase in the
motor vehicle fuel (gasoline) tax imposed by the bill and $0.10 of a
$0.22 per gallon increase in the diesel fuel excise tax imposed by
the bill,  including an inflation adjustment, as provided,
 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, a new annual road access
charge on each vehicle, as defined, of $35, and repayment, 
over a 3-year period,   by June 30,   2016,
 of outstanding loans made in previous years from certain
transportation funds to the General Fund.  The bill would provide
that revenues from future adjustments in the applicable portion of
the fuel tax rates, the annual vehicle registration fee increase, and
the road access charge would also be deposited in the account. 
   The bill would continuously appropriate the funds in the account
for road maintenance and rehabilitation purposes and would allocate
5% of available funds to counties that approve a transactions and use
tax on or after July 1,  2015,   2016, 
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 and would require the California Transportation
Commission to adopt performance criteria related to highway
performance goals, greenhouse gas emissions, social equity impacts,
and public health impacts, as specified. The bill would require the
commission to annually evaluate the department and each city and
county receiving these revenues to determine effectiveness in
reducing deferred maintenance and improving roadway conditions, as
well as in meeting the performance criteria. The bill would authorize
the commission to withhold future allocations of funds or to
reapportion funds to other agencies under certain conditions. The
bill would authorize a city or county to spend its apportionment of
funds under the program on transportation priorities other than those
allowable pursuant to the program if the city's or county's average
Pavement Condition Index meets or exceeds 85.
   (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.
   The bill would transfer revenues attributable to $0.12 of the
$0.22 increase in the diesel fuel excise tax  and future
adjustments  to the Trade Corridors Improvement Fund for
expenditure on eligible projects.
   (3) Existing law, as of July 1, 2011, increases the sales and use
tax on diesel and decreases the excise tax, as provided. Existing law
requires the State Board of Equalization to annually modify both the
gasoline and diesel excise tax rates on a going-forward basis so
that the various changes in the taxes imposed on gasoline and diesel
are revenue neutral.
   This bill would eliminate the annual rate adjustment to maintain
revenue neutrality for the gasoline and diesel excise tax 
rates.   rates, and would reimpose the gasoline excise
tax rate that was in effect on July 1, 2010, in addition to the
increase in the rate described in (1).  This bill would,
beginning July 1, 2019, and every 3rd year thereafter, require the
board to recompute the gasoline and diesel excise tax rates based
upon the percentage change in the California Consumer Price Index
 and the percentage change in the fuel efficiency of the state
motor vehicle fleet, as  transmitted to the board by the
Department of Finance, as prescribed. 
   (4) Article XIX of the California Constitution requires gasoline
excise tax revenues from motor vehicles traveling upon public streets
and highways to be deposited in the Highway Users Tax Account, for
allocation to city, county, and state transportation purposes.
Existing law generally provides for statutory allocation of gasoline
excise tax revenues attributable to other modes of transportation,
including aviation, boats, agricultural vehicles, and off-highway
vehicles, to particular accounts and funds for expenditure on
purposes associated with those other modes, except that a specified
portion of these gasoline excise tax revenues is deposited in the
General Fund. Expenditure of the gasoline excise tax revenues
attributable to those other modes is not restricted by Article XIX of
the California Constitution.  
   This bill, commencing July 1, 2016, would instead transfer to the
Highway Users Tax Account for allocation to state and local
transportation purposes under a specified formula the portion of
gasoline excise tax revenues currently being deposited in the General
Fund that are attributable to boats, agricultural vehicles, and
off-highway vehicles. Because that account is continuously
appropriated, the bill would make an appropriation.  
   (5) Existing law, beyond the sales and use tax rate generally
applicable, imposes an additional sales and use tax on diesel fuel at
the rate of 1.75%, subject to certain exemptions, and provides for
the net revenues collected from the additional tax to be transferred
to the Public Transportation Account. Existing law continuously
appropriates these revenues to the Controller, for allocation by
formula to transportation agencies for public transit purposes. 
   This bill, as of July 1, 2016, would increase the additional sales
and use tax rate on diesel fuel to 5.25%. By increasing revenues
that are continuously appropriated, the bill would thereby make an
appropriation. The bill would restrict expenditures of revenues from
the July 1, 2016, increase in the sales and use tax on diesel fuel to
transit capital purposes and certain transit services. The bill
would require an existing required audit of transit operator finances
to verify that these new revenues have been expended in conformance
with these specific restrictions and all other generally applicable
requirements.  
   This bill, as of July 1, 2016, would transfer revenues from the
additional sales and use tax on diesel fuel at the 1.75% rate to the
Transportation Debt Service Fund for the purpose of paying current
year debt service on certain transportation general obligation bonds,
rather than to the Public Transportation Account. The bill would
also transfer an equivalent amount of revenues from the Greenhouse
Gas Reduction Fund to the Public Transportation Account.  
   (6) Existing law requires all moneys, except for fines and
penalties, collected by the State Air Resources Board from a
market-based compliance mechanism relative to reduction of greenhouse
gas emissions to be deposited in the Greenhouse Gas Reduction Fund.
 
   Existing law continuously appropriates 10% of the annual proceeds
of the fund to the Transit and Intercity Rail Capital Program and 5%
of the annual proceeds of the fund to the Low Carbon Transit
Operations Program.  
   This bill would instead continuously appropriate 20% of those
annual proceeds to the Transit and Intercity Rail Capital Program,
and 10% of those annual proceeds to the Low Carbon Transit Operations
Program, thereby making an appropriation.  
   Existing law continuously appropriates 25% of the annual proceeds
of the fund to the High-Speed Rail Authority for specified components
of the initial operating segment of the high-speed rail line and the
Phase I Blended System.  
   This bill, commencing no earlier than the 2016-17 fiscal year,
would require the authority, from the funds it expects to receive
over time under these provisions, to set aside $550,000,000 for
capital improvements on intercity and commuter rail lines and urban
rail systems that provide connectivity to the high-speed rail system
and for other rail capital purposes, as specified. The bill would
require the moneys to be programmed to projects on a competitive
basis by the California Transportation Commission in consultation
with the authority. By authorizing expenditure of continuously
appropriated funds for a new purpose, the bill would thereby make an
appropriation.  
   (7) Existing law provides for transfer of certain vehicle weight
fee revenues and certain miscellaneous revenues in the State Highway
Account to the Transportation Debt Service Fund to reimburse the
General Fund for payment of current year debt service on general
obligation bonds issued for transportation purposes. Existing law,
under specified circumstances, also authorizes the transfer of
certain vehicle weight fee revenues to the Transportation Bond Direct
Payment Account for the direct payment of debt service on designated
bonds, as defined. Existing law provides for loans of weight fee
revenues not immediately needed for debt service purposes to the
General Fund under certain circumstances, to be repaid as needed for
future debt service payments.  
   This bill, notwithstanding these provisions, would limit the
amount of vehicle weight fee revenues that may be transferred each
year to the Transportation Debt Service Fund or the Transportation
Bond Direct Payment Account to the amount of revenues necessary to
pay current year debt service only on specified bond measures and
would specifically exclude debt service for Proposition 1A (2008)
bonds issued for high-speed rail and associated purposes. The bill
would prohibit loans of vehicle weight fee revenues to the General
Fund. The bill would require the Department of Finance, in
consultation with the Transportation Agency and the California
Transportation Commission, to develop a plan for implementation, in
whole or in part, beginning in the 2021-22 fiscal year, to restore
100% of net weight fee revenues to the State Highway Account. The
bill would also eliminate the transfer of miscellaneous revenues from
the State Highway Account to the Transportation Debt Service Fund.
 
   This bill would provide for the transfer of revenues from the
Greenhouse Gas Reduction Fund to the Transportation Debt Service Fund
in the amount necessary, as determined by the Director of Finance,
to pay current year debt service for Proposition 1A (2008) bonds. The
bill would also provide for transfer of certain diesel sales tax
revenues to the Transportation Debt Service Fund for payment of debt
service previously funded by miscellaneous revenues in the State
Highway Account.  
   (8) Existing law authorizes the issuance, following voter
approval, of general obligation bonds for certain purposes, including
transportation, and authorizes the Treasurer to issue refunding
bonds under certain conditions with respect to those bonds. Existing
law enacts various general obligation bond acts under which the
proceeds from issuance of those bonds are to be expended on
transportation purposes.  
   This bill would require the Treasurer to calculate and report to
the Department of Finance, by November 15 of each year, the projected
reduction in General Fund debt service expenditures for the upcoming
fiscal year due to the issuance of refunding bonds relative to
general obligation bonds issued for transportation purposes. The bill
would require the annual Budget Act to contain an appropriation from
the General Fund to the California Transportation Commission of an
amount equivalent to that projected reduction, for allocation by the
commission to public agencies for high-priority maintenance and
rehabilitation purposes on state and local highways, streets, and
roads.  
   (9) Existing law establishes in state government the
Transportation Agency, which includes various departments and state
entities, including the California Transportation Commission.
Existing law vests the California Transportation Commission with
specified powers, duties, and functions relative to transportation
matters. Existing law requires the commission to retain independent
authority to perform the duties and functions prescribed to it under
any provision of law. 
   This bill would exclude the California Transportation Commission
from the Transportation Agency, establish it as an entity in state
government, and require it to act in an independent oversight role.
The bill would also make conforming changes.  
   (4) 
    (10)  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 would additionally require the department to program
capital outlay support resources for each project in the program. The
bill would provide that the commission is not required to approve
the program in its entirety, as submitted by the department, and may
approve or reject individual projects programmed by the department.
The bill would require the department to submit any change in a
programmed project's cost, scope, or schedule to the commission for
its approval. 
   This bill, on and after February 1, 2017, would  also 
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. 
   (5) 
    (11)  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.
   This bill, by  April   July  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.  This bill, by April 1, 2017, would also
require the department to present to the commission a 5-year plan to
generate additional income from properties owned by the  
department, including, but not limited to, expeditious offering for
sale of properties no longer needed for highway purposes and joint
use of highway property by business activities that have the
potential to generate income for the state without interfering with
the needs of the state highway system.  
   (6) 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.
Existing law provides for the programming of transportation capital
improvement funds for other objectives through the State
Transportation Improvement Program administered by the California
Transportation Commission, which includes projects recommended by
regional transportation planning agencies through adoption of a
regional transportation improvement program and projects recommended
by the department through adoption of an interregional transportation
improvement program, as specified.  
   This bill would require the department or any local agency, when
undertaking any capital improvement project on a state highway or
local street or highway funded through the State Highway Operation
and Protection Program or the State Transportation Improvement
Program, to include new bicycle and pedestrian safety, access, and
mobility improvements, or improve existing facilities, as part of the
project, consistent with the department's adopted Strategic
Management Plan 2015-2020, subject to certain exceptions. 
   This bill would, to the maximum extent feasible, require all
transportation projects funded through the State Highway Operation
and Protection Program or the State Transportation Improvement
Program to be implemented in a manner that reduces greenhouse gas
emissions and positively benefits vulnerable or disadvantaged
communities, as specified. The bill would require the commission to
adopt performance criteria for these transportation projects relative
to greenhouse gas emissions, social equity impacts, and public
health impacts, and would require the lead agency for each project to
report to the commission with documentation on those matters upon
completion of the project. The bill would require the commission to
evaluate the documentation to determine the effectiveness of each
completed project in meeting the adopted performance criteria, and
would authorize the commission to withhold future funding allocations
from an applicant if it determines that previous use of funding by
the applicant has not adequately furthered the state's climate,
equity, and health goals in tandem with the state's highway and road
system maintenance and preservation goals.  
   (12) Existing law creates various state transportation agencies,
including the Department of Transportation and the High-Speed Rail
Authority, with specified powers and duties. Existing law provides
for the allocation of state transportation funds to various
transportation purposes.  
   This bill would create the Office of the Transportation Inspector
General in state government, as an independent office that would not
be a subdivision of any other government entity, to build capacity
for self-correction into the government itself and to ensure that all
state agencies expending state transportation funds are operating
efficiently, effectively, and in compliance with federal and state
laws. The bill would provide for the Governor to appoint the
Transportation Inspector General for a 6-year term, subject to
confirmation by the Senate, and would provide that the Transportation
Inspector General may not be removed from office during the term
except for good cause. The bill would specify the duties and
responsibilities of the Transportation Inspector General, would
require an annual report to the Legislature and Governor, and would
provide that funding for the office shall, to the extent possible, be
from federal transportation funds, with other necessary funding to
be made available from the State Highway Account and an account from
which high-speed rail activities may be funded.  
   This bill would create the Division of Active Transportation
within the Department of Transportation, with specified duties. The
bill would continuously appropriate $100,000,000 annually from the
Greenhouse Gas Reduction Fund to the State Highway Account for
purposes of the Active Transportation Program. The bill would require
the department to update the Highway Design Manual to incorporate
the "complete streets" design concept by January 1, 2017.  
   (13) The California Environmental Quality Act (CEQA) requires a
lead agency, as defined, to prepare, or cause to be prepared, and
certify the completion of, an environmental impact report on a
project that it proposes to carry out or approve that may have a
significant effect on the environment or to adopt a negative
declaration if it finds that the project will not have that effect.
CEQA also requires a lead agency to prepare a mitigated negative
declaration for a project that may have a significant effect on the
environment if revisions in the project would avoid or mitigate that
effect and there is no substantial evidence that the project, as
revised, would have a significant effect on the environment. 
   CEQA, until January 1, 2020, exempts a project or an activity to
repair, maintain, or make minor alterations to an existing roadway,
as defined, other than a state roadway, if the project or activity is
carried out by a city or county with a population of less than
100,000 persons to improve public safety and meets other specified
requirements.  
   This bill would extend the above-referenced exemption until
January 1, 2025, and delete the limitation of the exemption to
projects or activities in cities and counties with a population of
less than 100,000 persons. The bill would also expand the exemption
to include state roadways.  
   This bill would also establish the Advance Transportation Project
Mitigation Program. The bill would authorize the Natural Resources
Agency to administer and implement the program to provide effective
mitigation and conservation of natural resources and natural
processes on a landscape, regional, or statewide scale, to expedite
the environmental review of planned transportation projects, and to
facilitate the implementation of measures to mitigate the impacts of
those projects by identifying and implementing mitigation measures in
advance of project approval. The bill also would authorize the
agency to acquire, restore, manage, monitor, and preserve lands,
waterways, aquatic resources, or fisheries, or fund those actions, in
accordance with an approved regional advance mitigation plan or as
otherwise specified, and to establish or fund the establishment of
mitigation banks or conservation banks and purchase credits at those
types of banks. The bill would authorize the agency to take other
actions with respect to mitigation credits or values created or
acquired under the program.  
   This bill would authorize a transportation agency, as defined, to
identify planned transportation projects for the purpose of including
the projects in a regional advance mitigation plan or for other
advance mitigation under the program, and would authorize the agency
to enter into a memorandum of understanding or other agreement with
the transportation agency for specified purposes of the program.
 
   This bill would establish the Advance Transportation Project
Mitigation Fund in the State Treasury. Upon appropriation by the
Legislature, the bill would
require moneys in the fund to be used by the agency to administer
and implement the program.  
   This bill would specify that the program is intended to improve
the efficiency and efficacy of mitigation only and is not intended to
supplant the requirements of the CEQA or any other environmental
law.  
   (14) Existing federal law requires the United States Secretary of
Transportation to carry out a surface transportation project delivery
program, under which the participating states assume certain
responsibilities for environmental review and clearance of
transportation projects that would otherwise be the responsibility of
the federal government. Existing law, until January 1, 2017,
provides that the State of California consents to the jurisdiction of
the federal courts with regard to the compliance, discharge, or
enforcement of the responsibilities the Department of Transportation
assumed as a participant in this program.  
   This bill would delete the January 1, 2017, repeal date, thereby
extending these provisions indefinitely.  
   (15) Existing law authorizes the Department of Transportation and
regional transportation agencies, as defined, to enter into
comprehensive development lease agreements with public and private
entities, or consortia of those entities, for certain transportation
projects that may charge certain users of those projects tolls and
user fees, subject to various terms and requirements. These
arrangements are commonly known as public-private partnerships.
Existing law provides that a lease agreement may not be entered into
under these provisions on or after January 1, 2017.  
   This bill would authorize those lease agreements to be entered
into on or after that date, add the Santa Clara Valley Transportation
Authority as an eligible regional transportation entity that may
enter into those agreements, and make technical changes. 
   (7) 
    (16)  This bill would declare that it is to take effect
immediately as an urgency statute.
   Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   SECTION 1.    This act shall be known, and may be
cited, as the Transportation Infrastructure and Economic Investment
Act. 
   SECTION 1.   SEC. 2.   The Legislature
finds and declares all of the following:
   (a) Over the next 10 years, the state faces a $59 billion
shortfall to adequately maintain the existing state highway system,
in order to keep it in a basic state of good repair.
   (b) Similarly, cities and counties face a $78 billion shortfall
over the next decade to adequately maintain the existing network of
local streets and roads.
   (c) Statewide taxes and fees dedicated to the maintenance of the
system have not been increased in more than 20 years, with those
revenues losing more than 55 percent of their purchasing power, while
costs to maintain the system have steadily increased and much of the
underlying infrastructure has aged past its expected useful life.
   (d) California motorists are spending $17 billion annually in
extra maintenance and car repair bills, which is more than $700 per
driver, due to the state's poorly maintained roads.
   (e) Failing to act now to address this growing problem means that
more drastic measures will be required to maintain our system in the
future, essentially passing the burden on to future generations
instead of doing our job today.
   (f) A funding program will help address a portion of the
maintenance backlog on the state's road system and will stop the
growth of the problem.
   (g) Modestly increasing various fees can spread the cost of road
repairs broadly to all users and beneficiaries of the road network
without overburdening any one group.
   (h) Improving the condition of the state's road system will have a
positive impact on the economy as it lowers the transportation costs
of doing business, reduces congestion impacts for employees, and
protects property values in the state.
   (i) The federal government estimates that increased spending on
infrastructure creates more than 13,000 jobs per $1 billion spent.
   (j) Well-maintained roads benefit all users, not just drivers, as
roads are used for all modes of transport, whether motor vehicles,
transit, bicycles, or pedestrians.
   (k) Well-maintained roads additionally provide significant health
benefits and prevent injuries and death due to crashes caused by
poorly maintained infrastructure. 
   (l) Commercial vehicle weight fees, which traditionally have been
deposited in the State Highway Account and used for state highway
purposes, were redirected, as a matter of last resort, during the
severe fiscal emergency faced by the state several years ago to pay
current year debt service on transportation general obligation bonds
that the voters intended to be paid by the General Fund. As General
Fund revenues and the state's economy have recovered from the fiscal
emergency, it is now appropriate to begin the process of restoring
100 percent of weight fee revenues to their original intended purpose
of repairing and rehabilitating the state highway system.  
   (m) On December 4, 2015, President Obama signed into law the
Fixing America's Surface Transportation Act ("FAST Act"), the first
federal law in over 10 years to provide long-term funding certainty
for surface transportation projects. The FAST Act authorizes $305
billion between federal fiscal years 2016 to 2020, inclusive, for
highway infrastructure projects, highway and motor vehicle safety,
public transportation, motor carrier safety, hazardous materials
safety, rail, and research, technology, and statistics programs.
 
   (n) California is positioned to increase its opportunity to obtain
additional federal FAST Act funds through the passage of a
transportation funding package aimed to rehabilitate the state's
highways, streets, and roads and improve public transportation
throughout the state. That position could be jeopardized in the
absence of sufficient additional state funds to match and compete for
the new federal funding. Without additional state funding, a
considerable portion of the new federal funds, especially those funds
available on a competitive basis, could be awarded to other states.
 
      
   SEC. 3.    Section 13975 of the   Government
Code   is amended to read: 
   13975.  There is in the state government the Transportation
Agency. The agency consists of the Department of the California
Highway Patrol,  the California Transportation Comission,
 the Department of Motor Vehicles, the Department of
Transportation, the High-Speed Rail Authority, and the Board of Pilot
Commissioners for the Bays of San Francisco, San Pablo, and Suisun.
   SEC. 4.    Section 14007.3 is added to the  
Government Code   , to read:  
   14007.3.  There is in the Department of Transportation the
Division of Active Transportation, which is responsible, among other
things, for the administration of the Active Transportation Program
as provided in Chapter 8 (commencing with Section 2380) of Division 3
of the Streets and Highways Code. 
   SEC. 5.    Section 14033 is added to the  
Government Code   , to read:  
   14033.  On or before January 1, 2017, the department shall update
the Highway Design Manual to incorporate the "complete streets"
design concept. 
   SEC. 6.    Part 5.1 (commencing with Section 14460)
is added to Division 3 of Title 2 of the   Government Code
  , to read:  
      PART 5.1.  OFFICE OF THE TRANSPORTATION INSPECTOR GENERAL
   14460.  (a) There is hereby created in state government the
independent Office of the Transportation Inspector General, which
shall not be a subdivision of any other governmental entity, to build
capacity for self-correction into the government itself and to
ensure that the Department of Transportation, the High-Speed Rail
Authority, and all other state agencies expending state
transportation funds are operating efficiently, effectively, and in
compliance with applicable federal and state laws.
   (b) The Governor shall appoint, subject to confirmation by the
Senate, the Transportation Inspector General to a six-year term. The
Transportation Inspector General may not be removed from office
during that term, except for good cause.
   14461.  The Transportation Inspector General shall review
policies, practices, and procedures, and conduct audits and
investigations of activities involving state transportation funds in
consultation with all affected state agencies. Specifically, the
Transportation Inspector General's duties and responsibilities shall
include, but not be limited to, all of the following:
   (a) To examine the operating practices of the Department of
Transportation, the High-Speed Rail Authority, and all other state
agencies expending state transportation funds to identify fraud and
waste, opportunities for efficiencies, and opportunities to improve
the data used to determine appropriate project resource allocations.
   (b) To identify best practices in the delivery of transportation
projects and develop policies or recommend proposed legislation
enabling state agencies to adopt these practices when practicable.
   (c) To provide objective analysis of, and, when possible, offer
solutions to, concerns raised by the public or generated within
agencies involving the state's transportation infrastructure and
project delivery methods.
   (d) To conduct, supervise, and coordinate audits and
investigations relating to the programs and operations of all state
transportation agencies with state-funded transportation projects.
   (e) To recommend policies promoting economy and efficiency in the
administration of programs and operations of all state agencies with
state-funded transportation projects.
   14462.  The Transportation Inspector General's office shall not
conduct an audit or investigation that would be redundant to or
concurrent with an audit or investigation of the same matter being
conducted contemporaneously by another state entity, or planned to be
initiated pursuant to state or federal law or adopted agency board
policy, within 18 months of the notification of the intent to
undertake the audit or investigation by the Transportation Inspector
General. The state entity shall provide the Transportation Inspector
General with a summary of the results of the audit or investigation
upon its completion, if requested.
   14463.  (a) The Transportation Inspector General shall report
annually to the Governor and Legislature with a summary of his or her
findings, investigations, and audits. The summary shall be posted on
the Transportation Inspector General's Internet Web site and shall
otherwise be made available to the public upon its release to the
Governor and Legislature. The summary shall include, but need not be
limited to, significant problems discovered by the Transportation
Inspector General and whether recommendations of the Transportation
Inspector General relative to investigations and audits have been
implemented by the affected agencies. The report shall be submitted
to the Legislature in compliance with Section 9795.
   (b) The Transportation Inspector General shall, in consultation
with the Department of Finance, develop a methodology for producing a
workload budget to be used for annually adjusting the budget of the
Office of the Transportation Inspector General, beginning with the
budget for the 2016-17 fiscal year. To the extent possible, the
office shall be funded with federal transportation funds. Should
federal funding not be available to fully fund the office, funding
shall be made available, in proportion to the activities of the
office, from the State Highway Account and an account from which
high-speed rail activities may be funded. 
   SEC. 7.    Section 14500 of the   Government
Code   is amended to read: 
   14500.  There is in  the Transportation Agency 
 state government  a California Transportation Commission.
 The commission shall act in an independent oversight role. 
   SEC. 8.    Section 14526.5 of the  
Government Code   is amended to read: 
   14526.5.  (a) Based on the asset management plan prepared and
approved pursuant to Section 14526.4, the department shall 
prepare   prepare, for review by the commission,  a
state highway operation and protection program for the expenditure
of transportation funds for major capital  improvements
  improvement projects  that are necessary to
preserve and protect the state highway system. Projects included in
the program shall be limited to capital improvements relative to
maintenance, safety, and rehabilitation of state highways and bridges
that do not add a new traffic lane to the system.  As part of
the programming process, the department shall program capital outlay
support resources for each project in the program. 
   (b) The program shall include projects that are expected to be
advertised prior to July 1 of the year following submission of the
program, but which have not yet been funded. The program shall
include those projects for which construction is to begin within four
fiscal years, starting July 1 of the year following the year the
program is submitted.
   (c) The department, at a minimum, shall specify, for each project
in the state highway operation and protection program, the capital
and support budget, as well as a projected delivery date, for each of
the following project components:
   (1) Completion of project approval and environmental documents.
   (2) Preparation of plans, specifications, and estimates.
   (3) Acquisition of rights-of-way, including, but not limited to,
support activities.
   (4) Start of construction.
   (d) The  program shall be submitted  
department shall submit its proposed program  to the commission
not later than January 31 of each even-numbered year. Prior to
submitting  the plan,   its proposed program,
 the department shall make a draft of its proposed program
available to transportation planning agencies for review and comment
and shall include the comments in its submittal to the commission.
 The department shall provide the commission with detailed
information for all programmed projects including, but not limited
to, cost, scope, and schedule. 
   (e) The commission  may   shall  review
the  proposed  program relative to its overall adequacy,
consistency with the asset management plan prepared and approved
pursuant to Section 14526.4 and funding priorities established in
Section 167 of the Streets and Highways Code, the level of annual
funding needed to implement the program, and the impact of those
expenditures on the state transportation improvement program. The
commission  shall adopt the program and submit it to the
Legislature and the Governor not later than April 1 of each
even-numbered year. The commission may decline to adopt the program
if the commission determines that the program is not sufficiently
consistent with the asset management plan prepared and approved
pursuant to Section 14526.4.   is not required to
approve the program in its entirety, as submitted by the department,
and may approve or reject individual projects programmed by the
department. The commission shall adopt a program of approved projects
and submit it to the Legislature and the Governor not later than
April 1 of each even-numbered year. 
   (f) Expenditures for these projects shall not be subject to
Sections 188 and 188.8 of the Streets and Highways Code. 
   (g) Following adoption of the state highway operation and
protection program by the commission, any change in a programmed
project's cost, scope, or schedule shall be submitted by the
department to the commission for its approval before the changes may
be implemented. 
   SEC. 2.   SEC. 9.   Section 14526.7 is
added to the Government Code, to read:
   14526.7.  (a) On and after February 1, 2017, 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.
   SEC. 3.   SEC. 10.   Section 14526.8 is
added to the Government Code, to read:
   14526.8.  (a) On or before  April   July
 1, 2016, the department shall present to the commission a plan
to increase department efficiency by up to 30 percent over the
subsequent three years. The ongoing savings experienced through this
increased efficiency shall result in increased capital expenditures
in the department's state highway operation and protection program or
an increase in the department's state highway maintenance program.
   (b) The commission shall consider the reasonableness of the
proposal, and may approve the entire plan or reject all or portions
of the plan. The commission's feedback is intended to ensure that the
department is achieving the savings in the most responsible way
possible.
   (c) All future state highway operation and protection program
documents shall identify the increased funding available to the
program as a result of the efficiencies realized due to the
implementation of the plan. 
  SEC. 4.    Section 14528 is added to the
Government Code, to read:
   14528.  (a) Except as provided in subdivisions (b) and (c), the
department or any local agency, when undertaking any capital
improvement project on a state highway or a local street or highway
that is being funded through the State Highway Operation and
Protection Program or the State Transportation Improvement Program,
shall include new bicycle and pedestrian safety, access, and mobility
improvements, or improve existing facilities, as part of the
project, consistent with the department's adopted Strategic
Management Plan 2015-2020, as follows:
   (1) In transit priority areas and on streets and highways with
average daily traffic of 20,000 vehicles or more and a speed limit
over 25 miles per hour, well-lit facilities for bicyclists and
pedestrians shall be provided that are physically separated from
motor vehicles, either as Class I multiuse paths or Class IV bikeways
with separate walkways. In addition, signals or other facilities
shall be provided to enable bicyclists and pedestrians to safely
cross the street or highway.
   (2) On streets or highways other than those described in paragraph
(1), facilities for pedestrians and bicyclists shall be provided
when feasible, and reduction of vehicle traffic lanes and
implementation of traffic calming improvements shall be considered.
   (b) This section does not apply to capital improvement projects on
street and highway facilities that are closed, by law, to use by
pedestrians, bicyclists, and other nonmotorized users.
   (c) The department or a local agency may exempt a capital
improvement project from the requirements of this section through
adoption of a resolution, after at least one public hearing, that
documents that there is a demonstrated and verifiable absence of
future need for active transportation facilities on the highway
segment where the capital improvement project is to be implemented.
   (d) (1) As used in this section, "capital improvement project"
includes, but is not limited to, a reconstruction, rehabilitation, or
operational improvement project.
   (2) As used in this section, "transit priority area" means an area
within one-half mile of an existing major transit stop, or a planned
transit stop, if the planned stop is scheduled to be completed
within the planning horizon included in the interregional
transportation improvement program submitted pursuant to Section
14526 or a regional transportation improvement program adopted
submitted to Section 14527.  
  SEC. 5.    Section 14528.1 is added to the
Government Code, to read:
   14528.1.  (a) To the maximum extent feasible, all transportation
projects funded through the State Highway Operation and Protection
Program or the State Transportation Improvement Program shall be
implemented in a manner that reduces greenhouse gas emissions and
positively benefits vulnerable or disadvantaged communities pursuant
to Assembly Bill 32 (Chapter 488, Statutes of 2006), Senate Bill 375
(Chapter 728, Statutes of 2008), and Senate Bill 535 (Chapter 830,
Statutes of 2012).
   (b) The commission shall adopt performance criteria for the
transportation projects in subdivision (a) relative to greenhouse gas
emissions, social equity impacts, and public health impacts. The
lead agency on each transportation project shall report to the
commission with documentation on each of the following upon
completion of the project:
   (1) A description of and the location of the project.
   (2) The amount of funds expended on the project.
   (3) The completion date.
   (4) The project's estimated useful life.
   (5) The projected greenhouse gas emissions resulting from the
project, including an analysis of induced demand and biological
emissions.
   (6) A description of mobility benefits provided as a result of the
project to transit, bicycling, and pedestrians.
   (7) An analysis of how mobility benefits of the project are
accessible to low-income and disadvantaged community residents within
the project area.
   (8) A description and, if feasible, a quantification of the public
health and safety, economic, and environmental cobenefits resulting
from the project. To the extent the performance criteria for each
cobenefit category have not been met, documentation shall be provided
that identifies any statutory or regulatory barriers, or
alternatively, a demonstrated absence of need.
   (9) Levels of particulate matter (PM 2.5), oxides of nitrogen
(NOx), and sulphur oxides (SOx) prior to completion of the project,
and projected levels upon completion of the project.
   (10) An analysis of air pollution burden on low-income and
disadvantaged community residents within the project area.
   (11) Impacts of the project on important habitat, water resources,
and agricultural lands.
   (c) The commission shall evaluate the documentation provided
pursuant to subdivision (b) to determine the effectiveness of each
completed project on all of the following:
   (1) Reduction of deferred maintenance and improvement of roadway
conditions on the state highway system or local road system.
   (2) Reduction of greenhouse gas emissions.
   (3) Improvement of public health and air quality.
   (4) Improvement of access and mobility for low-income and
disadvantaged community residents.
   (5) Enhancement of wildlife connectivity.
   (6) Preservation of natural and working lands.
   (d) The commission may withhold future funding allocations from an
applicant if it determines that previous use of funding by the
applicant has not adequately furthered the state's climate, equity,
and health goals in tandem with the state's highway and road system
maintenance and preservation goals. 
   SEC. 11.    Section 14526.9 is added to the 
 Government Code   , to read:  
   14526.9.  On or before April 1, 2017, the department shall present
to the commission a five-year plan to generate additional income
from properties owned by the department, including, but not limited
to, expeditious offering for sale of properties no longer needed for
highway purposes and joint use of highway property by business
activities that have the potential to generate income for the state
without interfering with the needs of the state highway system. The
additional income shall be deposited in the State Highway Account.
   SEC. 12.    Section 14534.1 of the  
Government Code   is repealed.  
   14534.1.  Notwithstanding Section 12850.6 or subdivision (b) of
Section 12800, as added to this code by the Governor's Reorganization
Plan No. 2 of 2012 during the 2011-12 Regular Session, the
commission shall retain independent authority to perform those duties
and functions prescribed to it under any provision of law. 
   SEC. 6.   SEC. 13.   Section 16321 is
added to the Government Code, to read:
   16321.  (a) Notwithstanding any other law, on or before March 1,
2016, the Department of Finance shall compute the amount of
outstanding loans made from the State Highway Account, the Motor
Vehicle Fuel Account, the Highway Users Tax Account, and the Motor
Vehicle Account to the General Fund. The  department shall
prepare a loan repayment schedule, pursuant to which the 
outstanding loans shall be repaid  to the accounts from which
the loans were made, as follows:   on or before June
30, 2016, to the accounts   from which the loans were made.
 
   (1) On or before June 30, 2016, 33 percent of the outstanding loan
amounts.  
   (2) On or before June 30, 2017, 33 percent of the outstanding loan
amounts.  
   (3) On or before June 30, 2018, 34 percent of the outstanding loan
amounts. 
   (b) Notwithstanding any other provision of law,  as
 the  funds made available from  loans  are
 repaid pursuant to this  section, the repaid funds
  section  shall be transferred to the Road
Maintenance and Rehabilitation Account created pursuant to Section
2031 of the Streets and Highways Code.
   (c) Funds for loan repayments pursuant to this section 
shall be   are hereby  appropriated from the Budget
Stabilization Account pursuant to subclause (II) of clause (ii) of
subparagraph (B) of paragraph (1) of subdivision (c) of Section 20 of
Article XVI of the California Constitution.
   SEC. 14.    Section 16965 of the  
Government Code   is amended to read: 
   16965.  (a) (1) The Transportation Debt Service Fund is hereby
created in the State Treasury. Moneys in the fund shall be dedicated
to all of the following purposes:
   (A) Payment of debt service with respect to designated bonds, as
defined in subdivision (c) of Section 16773, and as further provided
in paragraph (3) and subdivision (b).
   (B) To reimburse the General Fund for debt service with respect to
bonds.
   (C) To redeem or retire bonds, pursuant to Section 16774, maturing
in a subsequent fiscal year.
   (2) The bonds eligible under subparagraph (B) or (C) of paragraph
(1) include bonds issued pursuant to the Clean Air and Transportation
Improvement Act of 1990 (Part 11.5 (commencing with Section 99600)
of Division 10 of the Public Utilities Code), the Passenger Rail and
Clean Air Bond Act of 1990 (Chapter 17 (commencing
                           with Section 2701) of Division 3 of the
Streets and Highways Code), the Seismic Retrofit Bond Act of 1996
(Chapter 12.48 (commencing with Section 8879) of Division 1 of Title
2), and the Safe, Reliable High-Speed Passenger Train Bond Act for
the 21st Century (Chapter 20 (commencing with Section 2704) of
Division 3 of the Streets and Highways Code), and nondesignated bonds
under Proposition 1B, as defined in subdivision (c) of Section
16773.
   (3) (A) The Transportation Bond Direct Payment Account is hereby
created in the State Treasury, as a subaccount within the
Transportation Debt Service Fund, for the purpose of directly paying
the debt service, as defined in paragraph (4), of designated bonds of
Proposition 1B, as defined in subdivision (c) of Section 16773.
Notwithstanding Section 13340, moneys in the Transportation Bond
Direct Payment Account are continuously appropriated for payment of
debt service with respect to designated bonds as provided in
subdivision (c) of Section 16773. So long as any designated bonds
remain outstanding, the moneys in the Transportation Bond Direct
Payment Account may not be used for any other purpose, and may not be
borrowed by or available for transfer to the General Fund pursuant
to Section 16310 or any similar law, or to the General Cash Revolving
Fund pursuant to Section 16381 or any similar law.
   (B) Once the Treasurer makes a certification that payment of debt
service with respect to all designated bonds has been paid or
provided for, any remaining moneys in the Transportation Bond Direct
Payment Account shall be transferred back to the Transportation Debt
Service Fund.
   (C) The moneys in the Transportation Bond Direct Payment Account
shall be invested in the Surplus Money Investment Fund, and all
investment earnings shall accrue to the account.
   (D) The Controller may establish subaccounts within the
Transportation Bond Direct Payment Account as may be required by the
resolution, indenture, or other documents governing any designated
bonds.
   (4) For purposes of this subdivision and subdivision (b), and
subdivision (c) of Section 16773, "debt service" means payment of all
of the following costs and expenses with respect to any designated
bond:
   (A) The principal of and interest on the bonds.
   (B) Amounts payable as the result of tender on any bonds, as
described in clause (iv) of subparagraph (B) of paragraph (1) of
subdivision (d) of Section 16731.
   (C) Amounts payable under any contractual obligation of the state
to repay advances and pay interest thereon under a credit enhancement
or liquidity agreement as described in clause (iv) of subparagraph
(B) of paragraph (1) of subdivision (d) of Section 16731.
   (D) Any amount owed by the state to a counterparty after any
offset for payments owed to the state on any hedging contract as
described in subparagraph (A) of paragraph (2) of subdivision (d) of
Section 16731.
   (b) From the moneys transferred to the fund pursuant to paragraph
(2) or (3) of subdivision (c) of Section 9400.4 of the Vehicle Code,
there shall first be deposited into the Transportation Bond Direct
Payment Account in each month sufficient funds to equal the amount
designated in a certificate submitted by the Treasurer to the
Controller and the Director of Finance at the start of each fiscal
year, and as may be modified by the Treasurer thereafter upon
issuance of any new issue of designated bonds or upon change in
circumstances that requires such a modification. This certificate
shall be calculated by the Treasurer to identify, for each month, the
amount necessary to fund all of the debt service with respect to all
designated bonds. This calculation shall be done in a manner
provided in the resolution, indenture, or other documents governing
the designated bonds. In the event that transfers to the
Transportation Bond Direct Payment Account in any month are less than
the amounts required in the Treasurer's certificate, the shortfall
shall carry over to be part of the required payment in the succeeding
month or months.
   (c) The state hereby covenants with the holders from time to time
of any designated bonds that it will not alter, amend, or restrict
the provisions of subdivision (c) of Section 16773 of the Government
Code, or Sections 9400, 9400.1, 9400.4, and 42205 of the Vehicle
Code, which provide directly or indirectly for the transfer of weight
fees to the Transportation Debt Service Fund or the Transportation
Bond Direct Payment Account, or subdivisions (a) and (b) of this
section, or reduce the rate of imposition of vehicle weight fees
under Sections 9400 and 9400.1 of the Vehicle Code as they existed on
the date of the first issuance of any designated bonds, if that
alteration, amendment, restriction, or reduction would result in
projected weight fees for the next fiscal year determined by the
Director of Finance being less than two times the maximum annual debt
service with respect to all outstanding designated bonds, as such
calculation is determined pursuant to the resolution, indenture, or
other documents governing the designated bonds. The state may include
this covenant in the resolution, indenture, or other documents
governing the designated bonds.
   (d) Once the required monthly deposit, including makeup of any
shortfalls from any prior month, has been made pursuant to
subdivision (b), from moneys transferred to the fund pursuant to
paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the
Controller shall transfer as an expenditure reduction to the General
Fund any amount necessary to offset the cost of current year debt
service payments made from the General Fund with respect to any bonds
issued pursuant to Proposition 192 (1996) and three-quarters of the
amount of current year debt service payments made from the General
Fund with respect to any nondesignated bonds, as defined in
subdivision (c) of Section 16773, issued pursuant to Proposition 1B
(2006). In the alternative, these funds may also be used to redeem or
retire the applicable bonds, pursuant to Section 16774, maturing in
a subsequent fiscal year as directed by the Director of Finance.
   (e)  (1)    From moneys transferred to the fund
pursuant to  Section 183.1 of the Streets and Highways Code,
  Sections 6051.8 and 6201.8 of the Revenue and Taxation
Code,  the Controller shall transfer as an expenditure
reduction to the General Fund any amount necessary to offset the cost
of current year debt service payments made from the General Fund
with respect to any bonds issued pursuant to Proposition 116 
(1990).   (1990), and for the port   ion of
Proposition 108 (1990) and Proposition 1B (2006) bonds that would
otherwise be payable pursuant to subdivision (f) but that are not
eligible to be paid under that subdivision because the bond proceeds
were expended for purposes that do not qualify under Article XIX of
the California Constitution.  In the alternative, these funds
may also be used to redeem or retire the applicable bonds, pursuant
to Section 16774, maturing in a subsequent fiscal year as directed by
the Director of Finance. 
   (2) From moneys transferred to the fund pursuant to Section 39719
of the Health and Safety Code, the Controller shall transfer as an
expenditure reduction to the General Fund any amount necessary to
offset the cost of current year debt service payments made from the
General Fund with respect to any bonds issued pursuant to Proposition
1A (2008). In the alternative, these funds may also be used to
redeem or retire the applicable bonds, pursuant to Section 16774,
maturing in a subsequent fiscal year as directed by the Director of
Finance. 
   (f) Once the required monthly deposit, including makeup of any
shortfalls from any prior month, has been made pursuant to
subdivision (b), from moneys transferred to the fund pursuant to
paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the
Controller shall transfer as an expenditure reduction to the General
Fund any amount necessary to offset the eligible cost of current year
debt service payments made from the General Fund with respect to any
bonds issued pursuant to Proposition 108 (1990) and
Proposition 1A (2008),  and one-quarter of the amount of
current year debt service payments made from the General Fund with
respect to any nondesignated bonds, as defined in subdivision (c) of
Section 16773, issued pursuant to Proposition 1B (2006). The
Department of Finance shall notify the Controller by July 30 of every
year of the percentage of debt service that is expected to be paid
in that fiscal year with respect to bond-funded projects that qualify
as eligible guideway projects consistent with the requirements
applicable to the expenditure of revenues under Article XIX of the
California Constitution, and the Controller shall make payments only
for those eligible projects. In the alternative, these funds may also
be used to redeem or retire the applicable bonds, pursuant to
Section 16774, maturing in a subsequent fiscal year as directed by
the Director of Finance.
   (g) On or before the second business day following the date on
which transfers are made to the Transportation Debt Service Fund, and
after the required monthly deposits for that month, including makeup
of any shortfalls from any prior month, have been made to the
Transportation Bond Direct Payment Account, the Controller shall
transfer the funds designated for reimbursement of bond debt service
with respect to nondesignated bonds, as defined in subdivision (c) of
Section 16773, and other bonds identified in subdivisions (d), (e),
and (f) in that month from the fund to the General Fund pursuant to
this section.
  SEC. 15.    Section 16965.2 is added to the  
Government Code   , to read:  
   16965.2.  The Treasurer, on or before November 15th of each year,
shall calculate and report to the Department of Finance the projected
reduction in General Fund debt service expenditures for the upcoming
fiscal year due to the issuance on or before that date of refunding
bonds relative to general obligation bonds issued for transportation
purposes. The calculation shall be the difference between the amount
of General Fund debt service expenditures that would otherwise have
been required during the applicable fiscal year in the absence of the
issuance of the refunding bonds and the amount of those expenditures
following the issuance of the refunding bonds. The annual Budget Act
shall contain an appropriation from the General Fund to the
California Transportation Commission of an amount equivalent to that
projected reduction, for allocation by the commission to public
agencies for high-priority maintenance and rehabilitation purposes on
state and local highways, streets, and roads. 
   SEC. 16.    Section 39719 of the  Health and
Safety Code   is amended to read: 
   39719.  (a) The Legislature shall appropriate the annual proceeds
of the fund for the purpose of reducing greenhouse gas emissions in
this state in accordance with the requirements of Section 39712.
   (b) To carry out a portion of the requirements of subdivision (a),
annual proceeds are continuously appropriated for the following:
   (1) Beginning in the  2015-16   2016-17 
fiscal year, and notwithstanding Section 13340 of the Government
Code,  35   50  percent of annual proceeds
are continuously appropriated, without regard to fiscal years, for
transit, affordable housing, and sustainable communities programs as
 following:   follows: 
   (A)  Ten   Twenty  percent of the annual
proceeds of the fund is hereby continuously appropriated to the
Transportation Agency for the Transit and Intercity Rail Capital
Program created by Part 2 (commencing with Section 75220) of Division
44 of the Public Resources Code.
   (B)  Five   Ten    percent of
the annual proceeds of the fund is hereby continuously appropriated
to the Low Carbon Transit Operations Program created by Part 3
(commencing with Section 75230) of Division 44 of the Public
Resources Code. Funds shall be allocated by the Controller, according
to requirements of the program, and pursuant to the distribution
formula in subdivision (b) or (c) of Section 99312 of, and Sections
99313 and 99314 of, the Public Utilities Code.
   (C) Twenty percent of the annual proceeds of the fund is hereby
continuously appropriated to the Strategic Growth Council for the
Affordable Housing and Sustainable Communities Program created by
Part 1 (commencing with Section 75200) of Division 44 of the Public
Resources Code. Of the amount appropriated in this subparagraph, no
less than 10 percent of the annual proceeds, shall be expended for
affordable housing, consistent with the provisions of that program.
   (2)  (A)    Beginning in the 2015-16 fiscal
year, notwithstanding Section 13340 of the Government Code, 25
percent of the annual proceeds of the fund is hereby continuously
appropriated to the High-Speed Rail Authority for the following
components of the initial operating segment and Phase I Blended
System as described in the 2012 business plan adopted pursuant to
Section 185033 of the Public Utilities Code: 
   (A) 
    (i)  Acquisition and construction costs of the project.
   (B) 
    (ii)  Environmental review and design costs of the
project. 
   (C) 
    (iii)  Other capital costs of the project. 
   (D) 
    (iv)  Repayment of any loans made to the authority to
fund the project. 
   (B) In addition to the expenditures authorized in subparagraph
(A), commencing no earlier than the 2016-17 fiscal year, the
High-Speed Rail Authority shall, from the revenues it expects to
receive over time pursuant to this paragraph, set aside five hundred
fifty million dollars ($550,000,000) for capital improvements to
intercity and commuter rail lines and urban rail systems that provide
connectivity to the high-speed rail system and for other capital
improvements consistent with the project eligibility requirements
applicable to bond funds made available pursuant to Section 2704.095
of the Streets and Highways Code. The moneys set aside under this
subparagraph shall be programmed on a competitive basis by the
California Transportation Commission, in consultation with the
authority, with allocations to be made by the commission to eligible
recipients when warranted by anticipated expenditures.  
   (c) (1) Beginning in the 2016-17 fiscal year, the amount necessary
to pay the annual debt service on Proposition 1A (2008) general
obligation bonds pursuant to paragraph (2) of subdivision (e) of
Section 16965 of the Government Code, as determined by the Director
of Finance, shall be transferred each fiscal year from the fund to
the Transportation Debt Service Fund.  
   (2) Beginning in the 2016-17 fiscal year, an amount equivalent to
the diesel sales tax revenues transferred to the Transportation Debt
Service Fund pursuant to Sections 6051.8 and 6201.8 of the Revenue
and Taxation Code, as determined by the Director of Finance, shall be
transferred each fiscal year from the fund to the Public
Transportation Account for expenditure pursuant to Section 99312.1 of
the Public Utilities Code.  
   (3) Beginning in the 2016-17 fiscal year, one hundred million
dollars ($100,000,000) shall be transferred annually to the State
Highway Account for expenditure on the Active Transportation Program
pursuant to Chapter 8 (commencing with Section 2380) of Division 3 of
the Streets and Highways Code.  
   (c) 
    (d)  In determining the amount of annual proceeds of the
fund for purposes of the calculation in subdivision (b), the funds
subject to Section 39719.1 shall not be included.
   SEC. 17.    Section 21080.37 of the   Public
Resources Code   is amended to read: 
   21080.37.  (a) This division does not apply to a project or an
activity to repair, maintain, or make minor alterations to an
existing roadway if all of the following conditions are met: 
   (1) The project is carried out by a city or county with a
population of less than 100,000 persons to improve public safety.
 
   (2) 
    (1)  (A) The project does not cross a waterway.
   (B) For purposes of this paragraph, "waterway" means a bay,
estuary, lake, pond, river, slough, or a perennial, intermittent, or
ephemeral stream, lake, or estuarine-marine shoreline. 
   (3) 
    (2)  The project involves negligible or no expansion of
an existing use beyond that existing at the time of the lead agency's
determination. 
   (4) The roadway is not a state roadway.  
   (5) 
    (3)  (A) The site of the project does not contain
wetlands or riparian areas and does not have significant value as a
wildlife habitat, and the project does not harm any species protected
by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531
et seq.), the Native Plant Protection Act (Chapter 10 (commencing
with Section 1900) of Division 2 of the Fish and Game Code), or the
California Endangered Species Act (Chapter 1.5 (commencing with
Section 2050) of Division 3 of the Fish and Game Code), and the
project does not cause the destruction or removal of any species
protected by a local ordinance.
   (B) For the purposes of this paragraph:
   (i) "Riparian areas" mean those areas transitional between
terrestrial and aquatic ecosystems and that are distinguished by
gradients in biophysical conditions, ecological processes, and biota.
A riparian area is an area through which surface and subsurface
hydrology connect waterbodies with their adjacent uplands. A riparian
area includes those portions of terrestrial ecosystems that
significantly influence exchanges of energy and matter with aquatic
ecosystems. A riparian area is adjacent to perennial, intermittent,
and ephemeral streams, lakes, and estuarine-marine shorelines.
   (ii) "Significant value as a wildlife habitat" includes wildlife
habitat of national, statewide, regional, or local importance;
habitat for species protected by the federal Endangered Species Act
of 1973 (16 U.S.C. Sec. 1531, et seq.), the California Endangered
Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3
of the Fish and Game Code), or the Native Plant Protection Act
(Chapter 10 (commencing with Section 1900) of Division 2 of the Fish
and Game Code); habitat identified as candidate, fully protected,
sensitive, or species of special status by local, state, or federal
agencies; or habitat essential to the movement of resident or
migratory wildlife.
   (iii) "Wetlands" has the same meaning as in the United States Fish
and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993).
   (iv) "Wildlife habitat" means the ecological communities upon
which wild animals, birds, plants, fish, amphibians, and
invertebrates depend for their conservation and protection. 
   (6) 
    (4)  The project does not impact cultural resources.
   (7) 
    (5)  The roadway does not affect scenic resources, as
provided pursuant to subdivision (c) of Section 21084.
   (b) Prior to determining that a project is exempt pursuant to this
section, the lead agency shall do both of the following:
   (1) Include measures in the project to mitigate potential
vehicular traffic and safety impacts and bicycle and pedestrian
safety impacts.
   (2) Hold a noticed public hearing on the project to hear and
respond to public comments. The hearing on the project may be
conducted with another noticed lead agency public hearing.
Publication of the notice shall be no fewer times than required by
Section 6061 of the Government Code, by the public agency in a
newspaper of general circulation in the area.
   (c) For purposes of this section, "roadway" means a roadway as
defined pursuant to Section 530 of the Vehicle Code and the
previously graded and maintained shoulder that is within a roadway
right-of-way of no more than five feet from the edge of the roadway.
   (d) (1) If a state agency determines that a project is not subject
to this division pursuant to this section, and it approves or
determines to carry out that project, it shall file a notice with the
Office of Planning and Research in the manner specified in
subdivisions (b) and (c) of Section 21108.  
   (d) Whenever 
    (2)     If  a local agency determines
that a project is not subject to this division pursuant to this
section, and it approves or determines to carry out that project,
 the local agency   it  shall file a notice
with the Office of Planning and Research, and with the county clerk
in the county in which the project will be located in the manner
specified in subdivisions (b) and (c) of Section 21152.
   (e) This section shall remain in effect only until January 1,
 2020,   2025,  and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1,  2020,   2025,  deletes or
extends that date.
   SEC. 18.    Division 13.6 (commencing with Section
21200) is added to the   Public Resources Code  ,
to read:  
      DIVISION 13.6.  ADVANCE TRANSPORTATION PROJECT MITIGATION
PROGRAM ACT
      CHAPTER 1.  GENERAL
   21200.  This division shall be known, and may be cited, as the
Advance Transportation Project Mitigation Program Act.
   21201.  (a) The purpose of this division is to improve the success
and effectiveness of actions implemented to mitigate the natural
resource impacts of future transportation projects by establishing
the means to implement those actions well before the transportation
projects are constructed. The advance identification and
implementation of mitigation actions also will streamline the
delivery of transportation projects by anticipating mitigation
requirements for planned transportation projects and avoiding or
reducing delays associated with environmental permitting. By
identifying regional or statewide conservation priorities and by
anticipating the impacts of planned transportation projects on a
regional or statewide basis, mitigation actions can be designed to
protect and restore California's most valuable natural resources and
also facilitate environmental compliance for planned transportation
projects on a regional scale.
   (b) This division is not intended to create a new environmental
permitting or regulatory program or to modify existing environmental
laws or regulations, nor is it intended to address all mitigation
that may be required for planned transportation projects. Instead, it
is intended to provide a way in which to anticipate and fulfill the
requirements of existing state and federal environmental laws that
protect fish, wildlife, plant species, and other natural resources
more efficiently and effectively.
   21202.  The Legislature finds and declares all of the following:
   (a) The minimization and mitigation of environmental impacts is
ordinarily handled on a project-by-project basis, usually at the end
of a project's timeline and without guidance regarding regional or
statewide conservation priorities.
   (b) The cost of critical transportation projects often escalates
because of permitting delays that occur when appropriate conservation
and mitigation measures cannot easily be identified and because the
cost of these measures often increases between the time a project is
planned and funded and the time mitigation is implemented.
   (c) Addressing conservation and mitigation needs early in a
project's timeline, during project design and development, can reduce
costs and allow natural resources conservation to be integrated with
project siting and design.
   (d) When the Department of Transportation, the High-Speed Rail
Authority, metropolitan planning organizations, regional
transportation planning agencies, and other transportation agencies
are able to anticipate the mitigation needs for planned
transportation projects, they can meet those needs in a more timely
and cost-effective way, by using long-range regional advance
mitigation planning.
   (e) Working with state and federal resource protection agencies,
the Department of Transportation, the High-Speed Rail Authority,
metropolitan planning organizations, regional transportation planning
agencies, and other transportation agencies could identify,
conserve, and, where appropriate, restore lands for mitigation of
numerous projects early in the projects' timelines, thereby allowing
public funds to stretch further by acquiring habitat at a lower cost
and avoiding environmental permitting delays.
   (f) Regional advance mitigation planning can provide an effective
means of facilitating delivery of state and federal economic stimulus
funding to transportation projects while ensuring more effective
natural resource conservation.
   (g) Regional advance mitigation planning is needed to direct
mitigation funding for transportation projects to agreed-upon
conservation priorities and to the creation of habitat reserves and
recreation areas that enhance the sustainability of human and natural
systems by protecting or restoring connectivity of natural
communities and the delivery of ecosystem services.
   (h) Regional advance mitigation planning can facilitate the
implementation of climate change adaptation strategies both for
ecosystems and California's economy.
   (i) Regional advance mitigation planning can enable the state to
protect, restore, and recover its natural capital as it strengthens
and improves its transportation systems.
        21203.  The Legislature intends to do all of the following by
enacting this division:
   (a) Facilitate delivery of transportation projects while ensuring
more effective natural resource conservation.
   (b) Develop effective strategies to improve the state's ability to
meet mounting demands for transportation improvements and to
maximize conservation and other public benefits.
   (c) Achieve conservation objectives of statewide and regional
importance by coordinating local, state, and federally funded natural
resource conservation efforts with mitigation actions required for
impacts from transportation projects.
   (d) Create administrative, governance, and financial incentives
and mechanisms necessary to ensure that measures required to minimize
or mitigate impacts from transportation projects will serve to
achieve regional or statewide natural resource conservation
objectives.
      CHAPTER 2.  DEFINITIONS
   21204.  For purposes of this division, the following terms have
the following meanings:
   (a) "Acquire" and "acquisition" mean, with respect to land or a
waterway, acquisition of fee title or purchase of a conservation
easement, that protects conservation and mitigation values on the
land or waterway in perpetuity.
   (b) "Agency" means the Natural Resources Agency.
   (c) "Transportation agency" means the Department of
Transportation, the High-Speed Rail Authority, a metropolitan
planning organization, a regional transportation planning agency, or
another public agency that implements transportation projects.
   (d) "Transportation project" means a transportation capital
improvement project.
   (e) "Planned transportation project" means a transportation
project that a transportation agency has concluded is reasonably
likely to be constructed within 20 years and that has been identified
to the agency for purposes of this division. A planned
transportation project may include, but is not limited to, a
transportation project that has been proposed for approval or that
has been approved.
   (f) "Program" means the Advance Transportation Project Mitigation
Program implemented pursuant to this division.
   (g) "Regional advance mitigation plan" means a regional or
statewide plan developed in accordance with this division that
estimates the potential future compensatory mitigation requirements
for one or more planned transportation projects and identifies
mitigation projects, sites, or credits that would fulfill some or all
of those requirements.
   (h) "Regulatory agency" means a state or federal natural resource
protection agency with regulatory authority over planned
transportation projects. A regulatory agency includes, but is not
limited to, the Department of Fish and Wildlife, California regional
water quality control boards, the United States Fish and Wildlife
Service, the National Marine Fisheries Service, the United States
Environmental Protection Agency, and the United States Army Corps of
Engineers.
      CHAPTER 3.  ADVANCE TRANSPORTATION PROJECT MITIGATION PROGRAM
   21205.  The Advance Transportation Project Mitigation Program is
hereby established to fulfill the purposes of this division. The
agency may do any of the following to administer and implement the
program:
   (a) Prepare, approve, and implement regional advance mitigation
plans for one or more planned transportation projects identified
pursuant to Section 21207. The purpose of a regional advance
mitigation plan is to provide effective mitigation and conservation
of natural resources and natural processes on a landscape, regional,
or statewide scale, to expedite the environmental review of planned
transportation projects, and to facilitate the implementation of
measures to mitigate the impacts of those projects by identifying and
implementing mitigation measures in advance of project approval.
   (b) Acquire, restore, manage, monitor, and preserve lands,
waterways, aquatic resources, or fisheries, or fund the acquisition,
restoration, management, monitoring, and preservation of lands,
waterways, aquatic resources, or fisheries, in accordance with a
regional advance mitigation plan approved by the agency pursuant to
this division.
   (c) Acquire, restore, manage, monitor, and preserve lands,
waterways, aquatic resources, or fisheries, or fund the acquisition,
restoration, management, monitoring, and preservation of lands,
waterways, aquatic resources, or fisheries, outside of an approved
regional advance mitigation plan if the agency determines that those
actions would conserve or create biological values that are
appropriate to mitigate the estimated impacts of one or more planned
transportation projects identified pursuant to Section 21207.
   (d) Establish mitigation banks or conservation banks, or fund the
establishment of mitigation banks or conservation banks, in
accordance with applicable state and federal standards. The agency
also may purchase credits at mitigation banks and conservation banks
if the agency determines that the credits provide biologically
appropriate mitigation for one or more planned transportation
projects identified pursuant to Section 21207.
   (e) Establish the type and quantity of mitigation credits or
values created under the program by obtaining the approval of those
credits or values from relevant regulatory agencies. This division is
not intended to supplant or abrogate the authority of a regulatory
agency to determine mitigation requirements under state or federal
environmental laws or to determine the type or quantity of mitigation
credits or values that may be used to fulfill those requirements.
   (f) Use, or allow transportation agencies to use, mitigation
credits or values created or obtained under the program to fulfill
the mitigation requirements of planned transportation projects if the
transportation agency reimburses the program for all costs of
creating the mitigation credits or values, as determined by the
agency. Those costs shall be calculated using total cost accounting
and shall include, as applicable, land acquisition or conservation
easement costs, monitoring costs, restoration costs, transaction
costs, the amount of a nonwasting endowment account for land
management or easement stewardship costs of the management entity,
administrative costs, and contingency costs.
   (g) Assist regional and local agencies to develop regional advance
mitigation plans for one or more planned transportation projects
identified pursuant to Section 21207.
   21205.5.  The agency shall publish a regional advance mitigation
plan on its Internet Web site for public review and comment 45 days
prior to adoption of the plan.
   21206.  A regional advance mitigation plan shall do all of the
following:
   (a) Use geographic information system analysis, field surveys,
principles of conservation planning, and other appropriate
methodologies to estimate the nature and extent of mitigation
requirements of identified planned transportation projects on a
regional or statewide basis.
   (b) Propose measures to avoid or minimize the adverse
environmental impacts of planned transportation projects, including,
where appropriate, the identification of project alignments and
design features that would avoid or minimize those impacts.
   (c) Anticipate and provide for compensatory mitigation for planned
transportation projects' impacts on natural resources and natural
processes by identifying needed mitigation and, to the extent
practicable, identifying suitable mitigation lands or waterways.
   (d) Identify and provide for the preservation of wildlife movement
corridors and habitat connectivity to avoid ecological fragmentation
and to enable ecosystem adaptation to climate change.
   (e) Consider the full range of impacts on natural resources,
including, but not limited to, impacts on water quality and riparian
habitat, rare plant species, sensitive species, fisheries, and
declining natural communities, including oak woodlands, vernal pools,
native grasslands, and serpentine habitat.
   (f) Take into consideration, where applicable, any local, state,
and regional conservation priorities as may be described in existing
conservation plans, including, but not limited to, the state wildlife
action plan, habitat conservation plans, natural community
conservation plans, climate change adaptation plans, and species
recovery plans.
   (g) Identify and quantify the net change in greenhouse gas
emissions and changes to sequestration potential achieved through
implementation of the plan.
   (h) Provide for endowments to manage and monitor acquired or
protected lands, waterways, or fisheries, as necessary.
   (i) Where available and biologically appropriate, provide for the
purchase of mitigation credits at mitigation banks or conservation
banks or for the payment of mitigation fees within established
mitigation programs.
   (j) Analyze the cost-effectiveness of available mitigation
alternatives both in terms of environmental benefits and improved
project delivery and certainty.
   (k) Include measurable performance objectives and a monitoring and
evaluation program.
   21207.  (a) A transportation agency may identify planned
transportation projects for the purpose of including those projects
in a regional advance mitigation plan or for other advance mitigation
under the program. The transportation agency shall provide an
analysis and estimate of the projects' direct, indirect, and
cumulative impacts. The analysis and estimate shall include all
available relevant information regarding those impacts, and the
analysis shall be at a level of detail commensurate with the
available relevant information. Detailed analysis shall not be
required where relevant detailed information about the projects'
impacts is not available.
   (b) The agency may enter a memorandum of understanding or other
agreement with a transportation agency to do all of the following:
   (1) Specify terms consistent with this division under which the
program will provide advance mitigation for the identified planned
transportation projects.
   (2) Establish guidelines for communication and sharing of relevant
information necessary to optimize coordination and collaboration
between the agency and the transportation agency.
   (3) Establish guidelines for strategically locating mitigation and
conservation sites to maximize the biological benefit and
conservation value to target species, habitats, and aquatic
resources.
   21208.  The Advance Transportation Project Mitigation Fund is
established in the State Treasury. Notwithstanding any other law, the
moneys in the fund shall be available upon appropriation by the
Legislature to the agency only for the administration and
implementation of the program, and shall not be subject to
appropriation, reversion, or transfer for any other purpose. All
moneys provided by transportation agencies to reimburse program
expenditures pursuant to subdivision (f) of Section 21205 or in
advance of anticipated mitigation actions shall be deposited in the
fund.
   21209.  The program is intended to improve the efficiency and
efficacy of mitigation only and is not intended to supplant the
requirements of the California Environmental Quality Act (Division 13
(commencing with Section 21000)) or any other environmental law. The
identification of planned transportation projects and the
identification of mitigation projects or measures for planned
transportation projects under this division does not imply or require
approval of those projects for purposes of the California
Environmental Quality Act (Division 13 (commencing with Section
21000)) or any other environmental law. 
   SEC. 19.    Section 99312.1 of the   Public
Utilities Code   is amended to read: 
   99312.1.   (a)   Revenues transferred to the
Public Transportation Account pursuant to  Section 39719 of the
Health and Safety Code and  Sections 6051.8 and 6201.8 of the
Revenue and Taxation Code are hereby continuously appropriated to the
Controller for allocation as follows: 
   (a) 
    (1)  Fifty percent for allocation to transportation
planning agencies, county transportation commissions, and the San
Diego Metropolitan Transit Development Board pursuant to Section
99314. 
   (b) 
    (2)  Fifty percent for allocation to transportation
agencies, county transportation commissions, and the San Diego
Metropolitan Transit Development Board for purposes of Section 99313.
    For 
    (b)     For  purposes of this chapter,
the revenues allocated pursuant to this section shall be subject to
the same requirements as revenues allocated pursuant to subdivisions
(b) and (c), as applicable, of Section 99312. 
   (c) The revenues transferred to the Public Transportation Account
pursuant to subdivision (c) of Section 6051.8 of the Revenue and
Taxation Code and subdivision (c) of Section 6201.8 of the Revenue
and Taxation Code, upon allocation pursuant to Sections 99313 and
99314, shall only be expended on transit capital projects, or on
services to maintain or repair a transit operator's existing transit
vehicle fleet or existing transit facilities, including
rehabilitation or modernization of existing vehicles or facilities,
or for the design, acquisition, and construction of new vehicles or
facilities that improve existing transit services or enable the
implementation of future planned transit services, or on services
that complement local efforts for repair and improvement of local
transportation infrastructure. The audit of transit operator finances
required pursuant to Section 99245 shall verify that these revenues
have been expended in conformance with these specific requirements
and all other generally applicable requirements. 
   SEC. 20.    Section 6051.8 of the   Revenue
and Taxation Code   is amended to read: 
   6051.8.  (a) Except as provided by Section 6357.3, in addition to
the taxes imposed by this part, for the privilege of selling tangible
personal property at retail a tax is hereby imposed upon all
retailers at the rate of 1.75 percent of the gross receipts of any
retailer from the sale of all diesel fuel, as defined in Section
60022, sold at retail in this  state on and after the
operative date of this subdivision.   state. 
   (b) Notwithstanding subdivision (a),  for the 2011-12
fiscal year only, the   commencing July 1, 2016, the
 rate referenced in subdivision (a) shall be  1.87
  increased to 5.25  percent. 
   (c) Notwithstanding subdivision (a), for the 2012-13 fiscal year
only, the rate referenced in subdivision (a) shall be 2.17 percent.
 
   (d) Notwithstanding subdivision (a), for the 2013-14 fiscal year
only, the rate referenced in subdivision (a) shall be 1.94 percent.
 
   (e) 
    (c)     (1)  Notwithstanding
subdivision (b) of Section 7102, all of the revenues, less refunds,
collected pursuant to this section shall be estimated by the State
Board of Equalization, with the concurrence of the Department of
Finance,  and   and, except as otherwise
provided in paragraph (2), shall be  transferred quarterly to
the Public Transportation Account in the State Transportation Fund
for allocation pursuant to Section 99312.1 of the Public Utilities
Code. 
   (f) Subdivisions (a) to (e), inclusive, shall become operative on
July 1, 2011.  
   (2) Beginning July 1, 2016, the portion of net revenues
attributable to a rate of 1.75 percent shall be transferred quarterly
to the Transportation Debt Service Fund for expenditure pursuant to
paragraph (1) of subdivision (e) of Section 16965 of the Government
Code. 
   SEC. 21.    Section 6201.8 of the   Revenue
and Taxation Code   is amended to read: 
   6201.8.  (a) Except as provided by Section 6357.3, in addition to
the taxes imposed by this part, an excise tax is hereby imposed on
the storage, use, or other consumption in this state of diesel fuel,
as defined in Section 60022, at the rate of 1.75 percent of the sales
price of the diesel  fuel on and after the operative date of
this subdivision.   fuel. 
   (b) Notwithstanding subdivision (a),  for the 2011-12
fiscal year only, the   commencing July 1, 2016, the
 rate referenced in subdivision (a) shall be  1.87
  increased to 5.25  percent. 
   (c) Notwithstanding subdivision (a), for the 2012-13 fiscal year
only, the rate referenced in subdivision (a) shall be 2.17 percent.
 
   (d) Notwithstanding subdivision (a), for the 2013-14 fiscal year
only, the rate referenced in subdivision (a) shall be 1.94 percent.
 
   (e) 
    (c)     (1)  Notwithstanding
subdivision (b) of Section 7102, all of the revenues, less refunds,
collected pursuant to this section shall be estimated by the State
Board of Equalization, with the concurrence of the Department of
Finance,  and   and, except as otherwise
provided in paragraph (2), shall be  transferred quarterly to
the Public Transportation Account in the State Transportation Fund
for allocation pursuant to Section 99312.1 of the Public Utilities
Code. 
   (f) Subdivisions (a) to (e), inclusive, shall become operative on
July 1, 2011.  
   (2) Beginning July 1, 2016, the portion of net revenues
attributable to a rate of 1.75 percent shall be transferred quarterly
to the Transportation Debt Service Fund for expenditure pursuant to
paragraph (1) of subdivision (e) of Section 16965 of the Government
Code. 
   SEC. 7.   SEC. 22.   Section 7360 of the
Revenue and Taxation Code is amended to read:
   7360.  (a) (1)  (A)  A tax of eighteen cents ($0.18) is hereby
imposed upon each gallon of fuel subject to the tax in Sections 7362,
7363, and 7364.
   (B) In addition to the tax imposed pursuant to subparagraph (A),
on and after the first day of the first calendar quarter that occurs
90 days after the effective date of the act adding this subparagraph,
a tax of twelve cents ($0.12) is hereby imposed upon each gallon of
fuel, other than aviation gasoline, subject to the tax in Sections
7362, 7363, and 7364.
   (2) If the federal fuel tax is reduced below the rate of nine
cents ($0.09) per gallon and federal financial allocations to this
state for highway and exclusive public mass transit guideway purposes
are reduced or eliminated correspondingly, the tax rate imposed by
subparagraph (A) of paragraph (1), on and after the date of the
reduction, shall be recalculated by an amount so that the combined
state rate under subparagraph (A) of paragraph (1) and the federal
tax rate per gallon equal twenty-seven cents ($0.27).
   (3) If any person or entity is exempt or partially exempt from the
federal fuel tax at the time of a reduction, the person or entity
shall continue to be so exempt under this section.
   (b) On and after July 1, 2010, in addition to the tax imposed by
subdivision (a), a tax is hereby imposed upon each gallon of motor
vehicle fuel, other than aviation gasoline, subject to the tax in
Sections 7362, 7363, and 7364 in an amount equal to seventeen and
three-tenths cents ($0.173) per gallon.
   (c) Beginning July 1, 2019, and every third year thereafter, the
State Board of Equalization shall recompute the rates of the taxes
imposed by this section. That computation shall be made as follows:
   (1) The Department of Finance shall transmit to the State Board of
Equalization the percentage change in the California Consumer Price
Index for all items from November of four calendar years prior to
November of the prior calendar year, no later than January 31, 2019,
and January 31 of every third year thereafter.  The Department of
Finance shall also transmit to the State Board of  
Equalization the estimated percentage change in the average fuel
efficiency of the overall California motor vehicle fleet over the
same periods of time. 
   (2) The State Board of Equalization shall do all of the following:
   (A) Compute an inflation adjustment factor by adding 100 percent
to the  applicable  percentage change figure that is
furnished pursuant to paragraph (1) and dividing the result by 100.
   (B) Compute a fleet fuel efficiency factor by adding 100 percent
to the applicable percentage change figure furnished pursuant to
paragraph (1) and dividing the result by 100.  
   (B) 
    (C)  Multiply the preceding tax rate per gallon by the
 sum of the  inflation adjustment factor  and the fleet
fuel efficiency factor  determined in  subparagraph
  subparagraphs  (A)  and (B)  and round
off the resulting product to the nearest tenth of a cent. 
   (C) 
    (D)  Make its determination of the new rate no later
than March 1 of the same year as the effective date of the new rate.
   SEC. 23.    Section 8352.4 of the   Revenue
and Taxation Code   is amended to read: 
   8352.4.  (a) Subject to Sections 8352 and 8352.1, and except as
otherwise provided in subdivision (b), there shall be transferred
from the money deposited to the credit of the Motor Vehicle Fuel
Account to the Harbors and Watercraft Revolving Fund, for expenditure
in accordance with Division 1 (commencing with Section 30) of the
Harbors and Navigation Code, the sum of six million six hundred
thousand dollars ($6,600,000) per annum, representing the amount of
money in the Motor Vehicle Fuel Account attributable to taxes imposed
on distributions of motor vehicle fuel used or usable in propelling
vessels. The actual amount shall be calculated using the annual
reports of registered boats prepared by the Department of Motor
Vehicles for the United States Coast Guard and the formula and method
of the December 1972 report prepared for this purpose and submitted
to the Legislature on December 26, 1972, by the Director of
Transportation. If the amount transferred during each fiscal year is
in excess of the calculated amount, the excess shall be retransferred
from the Harbors and Watercraft Revolving Fund to the Motor Vehicle
Fuel Account. If the amount transferred is less than the amount
calculated, the difference shall be transferred from the Motor
Vehicle Fuel Account to the Harbors and Watercraft Revolving Fund. No
adjustment shall be made if the computed difference is less than
fifty thousand dollars ($50,000), and the amount shall be adjusted to
reflect any temporary or permanent increase or decrease that may be
made in the rate under the Motor Vehicle Fuel Tax Law. Payments
pursuant to this section shall be made prior to payments pursuant to
Section 8352.2.
   (b) Commencing July 1,  2012,   2016, 
the revenues attributable to the taxes imposed pursuant to
subdivision (b) of Section 7360 and Section 7361.1 and otherwise to
be deposited in the Harbors and Watercraft Revolving Fund pursuant to
subdivision (a) shall instead be transferred to the  General
Fund. The revenues attributable to the taxes imposed pursuant to
subdivision (b) of Section 7360 and Section 7361.1 that were
deposited in the Harbors and Watercraft Revolving Fund in the 2010-11
and 2011-12 fiscal years shall be transferred to the General Fund.
  Highway Users Tax Account for distribution pursuant to
Section 2103.2 of the Streets and Highways Code. 
   SEC. 24.    Section 8352.5 of the   Revenue
and Taxation Code   is amended to read: 
   8352.5.  (a) (1) Subject to Sections 8352 and 8352.1, and except
as otherwise provided in subdivision (b), there shall be transferred
from the money deposited to the credit of the Motor Vehicle Fuel
Account to the Department of Food and Agriculture Fund, during the
second quarter of each fiscal year, an amount equal to the estimate
contained in the most recent report prepared pursuant to this
section.
   (2) The amounts are not subject to Section 6357 with respect to
the collection of sales and use taxes thereon, and represent the
portion of receipts in the Motor Vehicle Fuel Account during a
calendar year that were attributable to agricultural off-highway use
of motor vehicle fuel which is subject to refund pursuant to Section
8101, less gross refunds allowed by the Controller during the fiscal
year ending June 30th following the calendar year to persons entitled
to refunds for agricultural off-highway use pursuant to Section
8101. Payments pursuant to this section shall be made prior to
payments pursuant to Section 8352.2.
   (b) Commencing July 1,  2012,   2016,
the revenues attributable to the taxes imposed pursuant to
subdivision (b) of Section 7360 and Section 7361.1 and otherwise to
be deposited in the Department of Food and Agriculture Fund pursuant
to subdivision (a) shall instead be transferred to the 
General Fund. The revenues attributable to the taxes imposed pursuant
to subdivision (b) of Section 7360 and Section 7361.1 that were
deposited in the Department of Food and Agriculture Fund in the
2010-11 and 2011-12 fiscal
    years shall be transferred to the General Fund.  
Highway Users Tax Account for distribution pursuant to Section 2103.2
of the Streets and Highways Code. 
   (c) On or before September 30, 2012, and on or before September 30
of each even-numbered year thereafter, the Director of
Transportation and the Director of Food and Agriculture shall jointly
prepare, or cause to be prepared, a report setting forth the current
estimate of the amount of money in the Motor Vehicle Fuel Account
attributable to agricultural off-highway use of motor vehicle fuel,
which is subject to refund pursuant to Section 8101 less gross
refunds allowed by the Controller to persons entitled to refunds for
agricultural off-highway use pursuant to Section 8101; and they shall
submit a copy of the report to the Legislature.
   SEC. 25.    Section 8352.6 of the   Revenue
and Taxation Code   is amended to read: 
   8352.6.  (a) (1) Subject to Section 8352.1, and except as
otherwise provided in paragraphs (2) and (3), on the first day of
every month, there shall be transferred from moneys deposited to the
credit of the Motor Vehicle Fuel Account to the Off-Highway Vehicle
Trust Fund created by Section 38225 of the Vehicle Code an amount
attributable to taxes imposed upon distributions of motor vehicle
fuel used in the operation of motor vehicles off highway and for
which a refund has not been claimed. Transfers made pursuant to this
section shall be made prior to transfers pursuant to Section 8352.2.
   (2) Commencing July 1,  2012,   2016, 
the revenues attributable to the taxes imposed pursuant to
subdivision (b) of Section 7360 and Section 7361.1 and otherwise to
be deposited in the Off-Highway Vehicle Trust Fund pursuant to
paragraph (1) shall instead be transferred to the  General
Fund. The revenues attributable to the taxes imposed pursuant to
subdivision (b) of Section 7360 and Section 7361.1 that were
deposited in the Off-Highway Vehicle Trust Fund in the 2010-11 and
2011-12 fiscal years shall be transferred to the General Fund.
  Highway Users Tax Account for distribution pursuant to
Section 2103.2 of the Streets and Highways Code. 
   (3) The Controller shall withhold eight hundred thirty-three
thousand dollars ($833,000) from the monthly transfer to the
Off-Highway Vehicle Trust Fund pursuant to paragraph (1), and
transfer that amount to the General Fund.
   (b) The amount transferred to the Off-Highway Vehicle Trust Fund
pursuant to paragraph (1) of subdivision (a), as a percentage of the
Motor Vehicle Fuel Account, shall be equal to the percentage
transferred in the 2006-07 fiscal year. Every five years, starting in
the 2013-14 fiscal year, the percentage transferred may be adjusted
by the Department of Transportation in cooperation with the
Department of Parks and Recreation and the Department of Motor
Vehicles. Adjustments shall be based on, but not limited to, the
changes in the following factors since the 2006-07 fiscal year or the
last adjustment, whichever is more recent:
   (1) The number of vehicles registered as off-highway motor
vehicles as required by Division 16.5 (commencing with Section 38000)
of the Vehicle Code.
   (2) The number of registered street-legal vehicles that are
anticipated to be used off highway, including four-wheel drive
vehicles, all-wheel drive vehicles, and dual-sport motorcycles.
   (3) Attendance at the state vehicular recreation areas.
   (4) Off-highway recreation use on federal lands as indicated by
the United States Forest Service's National Visitor Use Monitoring
and the United States Bureau of Land Management's Recreation
Management Information System.
   (c) It is the intent of the Legislature that transfers from the
Motor Vehicle Fuel Account to the Off-Highway Vehicle Trust Fund
should reflect the full range of motorized vehicle use off highway
for both motorized recreation and motorized off-road access to other
recreation opportunities. Therefore, the Legislature finds that the
fuel tax baseline established in subdivision (b), attributable to
off-highway estimates of use as of the 2006-07 fiscal year, accounts
for the three categories of vehicles that have been found over the
years to be users of fuel for off-highway motorized recreation or
motorized access to nonmotorized recreational pursuits. These three
categories are registered off-highway motorized vehicles, registered
street-legal motorized vehicles used off highway, and unregistered
off-highway motorized vehicles.
   (d) It is the intent of the Legislature that the off-highway motor
vehicle recreational use to be determined by the Department of
Transportation pursuant to paragraph (2) of subdivision (b) be that
usage by vehicles subject to registration under Division 3
(commencing with Section 4000) of the Vehicle Code, for recreation or
the pursuit of recreation on surfaces where the use of vehicles
registered under Division 16.5 (commencing with Section 38000) of the
Vehicle Code may occur.
   (e) In the 2014-15 fiscal year, the Department of Transportation,
in consultation with the Department of Parks and Recreation and the
Department of Motor Vehicles, shall undertake a study to determine
the appropriate adjustment to the amount transferred pursuant to
subdivision (b) and to update the estimate of the amount attributable
to taxes imposed upon distributions of motor vehicle fuel used in
the operation of motor vehicles off highway and for which a refund
has not been claimed. The department shall provide a copy of this
study to the Legislature no later than January 1, 2016.
   SEC. 8.   SEC. 26.   Section 60050 of
the Revenue and Taxation Code is amended to read:
   60050.  (a) (1) A tax of thirteen cents ($0.13) is hereby imposed
upon each gallon of diesel fuel subject to the tax in Sections 60051,
60052, and 60058.
   (2) If the federal fuel tax is reduced below the rate of fifteen
cents ($0.15) per gallon and federal financial allocations to this
state for highway and exclusive public mass transit guideway purposes
are reduced or eliminated correspondingly, the tax rate imposed by
paragraph (1) shall be increased by an amount so that the combined
state rate under paragraph (1) and the federal tax rate per gallon
equal what it would have been in the absence of the federal
reduction.
   (3) If any person or entity is exempt or partially exempt from the
federal fuel tax at the time of a reduction, the person or entity
shall continue to be exempt under this section.
   (b) In addition to the tax imposed pursuant to subdivision (a), on
and after the first day of the first calendar quarter that occurs 90
days after the effective date of the act adding this subdivision, an
additional tax of twenty-two cents ($0.22) is hereby imposed upon
each gallon of diesel fuel subject to the tax in Sections 60051,
60052, and 60058.
   (c) Beginning July 1, 2019, and every third year thereafter, the
State Board of Equalization shall recompute the rates of the taxes
imposed by this section. That computation shall be made as follows:
   (1) The Department of Finance shall transmit to the State Board of
Equalization the percentage change in the California Consumer Price
Index for all items from November of four calendar years prior to
November of the prior calendar year, no later than January 31, 2019,
and January 31 of every third year thereafter.  The Department of
Finance shall also transmit to the State Board of Equalization the
estimated percentage change in the average fuel efficiency of the
overall California motor vehicle fleet over the same periods of time.
   (2) The State Board of Equalization shall do all of the following:
   (A) Compute an inflation adjustment factor by adding 100 percent
to the  applicable  percentage change figure that is
furnished pursuant to paragraph (1) and dividing the result by 100.
   (B) Compute a fleet fuel efficiency factor by adding 100 percent
to the applicable percentage change figure furnished pursuant to
paragraph (1) and dividing the result by 100.  
   (B) 
    (C)  Multiply the preceding tax rate per gallon by the
 sum of the  inflation adjustment factor  and the fleet
fuel efficiency factor  determined in  subparagraph
  subparagraphs  (A)  and (B)  and round
off the resulting product to the nearest tenth of a cent. 
   (C) 
    (D)  Make its determination of the new rate no later
than March 1 of the same year as the effective date of the new rate.
   SEC. 27.    Section 143 of the   Streets and
Highways Code   is amended to read: 
   143.  (a)  (1)     For
purposes of this section, the following terms shall have the
following meanings: 
    (1)    "Best value" means a value determined by
objective criteria, including, but not limited to, price, features,
functions, life-cycle costs, and other criteria deemed appropriate by
the department or the regional transportation agency.
   (2) "Contracting entity or lessee" means a public or private
entity, or consortia thereof, that has entered into a comprehensive
development lease agreement with the department or a regional
transportation agency for a transportation project pursuant to this
section.
   (3) "Design-build" means a procurement process in which both the
design and construction of a project are procured from a single
entity.
   (4) "Regional transportation agency" means any of the following:
   (A) A transportation planning agency as defined in Section 29532
or 29532.1 of the Government Code.
   (B) A county transportation commission as defined in Section
130050, 130050.1, or 130050.2 of the Public Utilities Code.
   (C) Any other local or regional transportation entity that is
designated by statute as a regional transportation agency.
   (D) A joint exercise of powers authority as defined in Chapter 5
(commencing with Section 6500) of Division 7 of Title 1 of the
Government Code, with the consent of a transportation planning agency
or a county transportation commission for the jurisdiction in which
the transportation project will be developed. 
   (E) The Santa Clara Valley Transportation Authority established
pursuant to Part 12 (commencing with Section 100000) of Division 10
of the Public Utilities Code. 
   (5) "Public Infrastructure Advisory Commission" means a unit or
auxiliary organization established by the Transportation Agency that
advises the department and regional transportation agencies in
developing transportation projects through performance-based
infrastructure partnerships.
   (6) "Transportation project" means one or more of the following:
planning, design, development, finance, construction, reconstruction,
rehabilitation, improvement, acquisition, lease, operation, or
maintenance of highway, public street, rail, or related facilities
supplemental to existing facilities currently owned and operated by
the department or regional transportation agencies that is consistent
with the requirements of subdivision (c).
   (b) (1) The Public Infrastructure Advisory Commission shall do all
of the following:
   (A) Identify transportation project opportunities throughout the
state.
   (B) Research and document similar transportation projects
throughout the state, nationally, and internationally, and further
identify and evaluate lessons learned from these projects.
   (C) Assemble and make available to the department or regional
transportation agencies a library of information, precedent,
research, and analysis concerning infrastructure partnerships and
related types of public-private transactions for public
infrastructure.
   (D) Advise the department and regional transportation agencies,
upon request, regarding infrastructure partnership suitability and
best practices.
   (E) Provide, upon request, procurement-related services to the
department and regional transportation agencies for infrastructure
partnership.
   (2) The Public Infrastructure Advisory Commission may charge a fee
to the department and regional transportation agencies for the
services described in subparagraphs (D) and (E) of paragraph (1), the
details of which shall be articulated in an agreement entered into
between the Public Infrastructure Advisory Commission and the
department or the regional transportation agency.
   (c) (1) Notwithstanding any other provision of law, only the
department, in cooperation with regional transportation agencies, and
regional transportation agencies, may solicit proposals, accept
unsolicited proposals, negotiate, and enter into comprehensive
development lease agreements with public or private entities, or
consortia thereof, for transportation projects.
   (2) Projects proposed pursuant to this section and associated
lease agreements shall be submitted to the California Transportation
Commission. The commission, at a regularly scheduled public hearing,
shall select the candidate projects from projects nominated by the
department or a regional transportation agency after reviewing the
nominations for consistency with paragraphs (3) and (4). Approved
projects may proceed with the process described in paragraph (5).
   (3) The projects authorized pursuant to this section shall be
primarily designed to achieve the following performance objectives:
   (A) Improve mobility by improving travel times or reducing the
number of vehicle hours of delay in the affected corridor.
   (B) Improve the operation or safety of the affected corridor.
   (C) Provide quantifiable air quality benefits for the region in
which the project is located.
   (4) In addition to meeting the requirements of paragraph (3), the
projects authorized pursuant to this section shall address a known
forecast demand, as determined by the department or regional
transportation agency.
   (5) At least 60 days prior to executing a final lease agreement
authorized pursuant to this section, the department or regional
transportation agency shall submit the agreement to the Legislature
and the Public Infrastructure Advisory Commission for review. Prior
to submitting a lease agreement to the Legislature and the Public
Infrastructure Advisory Commission, the department or regional
transportation agency shall conduct at least one public hearing at a
location at or near the proposed facility for purposes of receiving
public comment on the lease agreement. Public comments made during
this hearing shall be submitted to the Legislature and the Public
Infrastructure Advisory Commission with the lease agreement. The
Secretary of Transportation or the chairperson of the Senate or
Assembly fiscal committees or policy committees with jurisdiction
over transportation matters may, by written notification to the
department or regional transportation agency, provide any comments
about the proposed agreement within the 60-day period prior to the
execution of the final agreement. The department or regional
transportation agency shall consider those comments prior to
executing a final agreement and shall retain the discretion for
executing the final lease agreement.
   (d) For the purpose of facilitating those projects, the agreements
between the parties may include provisions for the lease of
rights-of-way in, and airspace over or under, highways, public
streets, rail, or related facilities for the granting of necessary
easements, and for the issuance of permits or other authorizations to
enable the construction of transportation projects. Facilities
subject to an agreement under this section shall, at all times, be
owned by the department or the regional transportation agency, as
appropriate. For department projects, the commission shall certify
the department's determination of the useful life of the project in
establishing the lease agreement terms. In consideration therefor,
the agreement shall provide for complete reversion of the leased
facility, together with the right to collect tolls and user fees, to
the department or regional transportation agency, at the expiration
of the lease at no charge to the department or regional
transportation agency. At the time of the reversion, the facility
shall be delivered to the department or regional transportation
agency, as applicable, in a condition that meets the performance and
maintenance standards established by the department or regional
transportation agency and that is free of any encumbrance, lien, or
other claims.
   (e) Agreements between the department or regional transportation
agency and the contracting entity or lessee shall authorize the
contracting entity or lessee to use a design-build method of
procurement for transportation projects, subject to the requirements
for utilizing such a method contained in Chapter 6.5 (commencing with
Section  6800)   6820)  of Part 1 of
Division 2 of the Public Contract Code, other than Sections 
6802, 6803, and 6813   6821 and 6822  of that
 code, if those provisions are enacted by the Legislature
during the 2009-10 Regular Session, or a 2009-10 extraordinary
session.   code. 
   (f) (1) (A) Notwithstanding any other provision of this chapter,
for projects on the state highway system, the department is the
responsible agency for the performance of project development
services, including performance specifications, preliminary
engineering, prebid services, the preparation of project reports and
environmental documents, and construction inspection services. The
department is also the responsible agency for the preparation of
documents that may include, but need not be limited to, the size,
type, and desired design character of the project, performance
specifications covering the quality of materials, equipment, and
workmanship, preliminary plans, and any other information deemed
necessary to describe adequately the needs of the department or
regional transportation agency.
   (B) The department may use department employees or consultants to
perform the services described in subparagraph (A), consistent with
Article XXII of the California Constitution. Department resources,
including personnel requirements, necessary for the performance of
those services shall be included in the department's capital outlay
support program for workload purposes in the annual Budget Act.
   (2) The department or a regional transportation agency may
exercise any power possessed by it with respect to transportation
projects to facilitate the transportation projects pursuant to this
section. The department, regional transportation agency, and other
state or local agencies may provide services to the contracting
entity or lessee for which the public entity is reimbursed,
including, but not limited to, planning, environmental planning,
environmental certification, environmental review, preliminary
design, design, right-of-way acquisition, construction, maintenance,
and policing of these transportation projects. The department or
regional transportation agency, as applicable, shall regularly
inspect the facility and require the contracting entity or lessee to
maintain and operate the facility according to adopted standards.
Except as may otherwise be set forth in the lease agreement, the
contracting entity or lessee shall be responsible for all costs due
to development, maintenance, repair, rehabilitation, and
reconstruction, and operating costs.
   (g) (1) In selecting private entities with which to enter into
these agreements, notwithstanding any other provision of law, the
department and regional transportation agencies may utilize, but are
not limited to utilizing, one or more of the following procurement
approaches:
   (A) Solicitations of proposals for defined projects and calls for
project proposals within defined parameters.
   (B) Prequalification and short-listing of proposers prior to final
evaluation of proposals.
   (C) Final evaluation of proposals based on qualifications and best
value. The California Transportation Commission shall develop and
adopt criteria for making that evaluation prior to evaluation of a
proposal.
   (D) Negotiations with proposers prior to award.
   (E) Acceptance of unsolicited proposals, with issuance of requests
for competing proposals. Neither the department nor a regional
transportation agency may award a contract to an unsolicited bidder
without receiving at least one other responsible bid.
   (2) When evaluating a proposal submitted by the contracting entity
or lessee, the department or the regional transportation agency may
award a contract on the basis of the lowest bid or best value.
   (h) The contracting entity or lessee shall have the following
qualifications:
   (1) Evidence that the members of the contracting entity or lessee
have completed, or have demonstrated the experience, competency,
capability, and capacity to complete, a project of similar size,
scope, or complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the
design and construction of the project, and a financial statement
that ensures that the contracting entity or lessee has the capacity
to complete the project.
   (2) The licenses, registration, and credentials required to design
and construct the project, including, but not limited to,
information on the revocation or suspension of any license,
credential, or registration.
   (3) Evidence that establishes that members of the contracting
entity or lessee have the capacity to obtain all required payment and
performance bonding, liability insurance, and errors and omissions
insurance.
   (4) Evidence that the contracting entity or lessee has workers'
compensation experience, history, and a worker safety program of
members of the contracting entity or lessee that is acceptable to the
department or regional transportation agency.
   (5) A full disclosure regarding all of the following with respect
to each member of the contracting entity or lessee during the past
five years:
   (A) Any serious or willful violation of Part 1 (commencing with
Section 6300) of Division 5 of the Labor Code or the federal
Occupational Safety and Health Act of 1970 (Public Law 91-596).
   (B) Any instance where members of the contracting entity or lessee
were debarred, disqualified, or removed from a federal, state, or
local government public works project.
   (C) Any instance where members of the contracting entity or
lessee, or its owners, officers, or managing employees submitted a
bid on a public works project and were found to be nonresponsive or
were found by an awarding body not to be a responsible bidder.
   (D) Any instance where members of the contracting entity or
lessee, or its owners, officers, or managing employees defaulted on a
construction contract.
   (E) Any violations of the Contractors' State License Law (Chapter
9 (commencing with Section 7000) of Division 3 of the Business and
Professions Code), including, but not limited to, alleged violations
of federal or state law regarding the payment of wages, benefits,
apprenticeship requirements, or personal income tax withholding, or
Federal Insurance Contributions Act (FICA) withholding requirements.
   (F) Any bankruptcy or receivership of any member of the
contracting entity or lessee, including, but not limited to,
information concerning any work completed by a surety.
   (G) Any settled adverse claims, disputes, or lawsuits between the
owner of a public works project and any member of the contracting
entity or lessee during the five years preceding submission of a bid
under this article, in which the claim, settlement, or judgment
exceeds fifty thousand dollars ($50,000). Information shall also be
provided concerning any work completed by a surety during this
five-year period.
   (H) If the contracting entity or lessee is a partnership, joint
venture, or an association that is not a legal entity, a copy of the
agreement creating the partnership or association that specifies that
all general partners, joint venturers, or association members agree
to be fully liable for the performance under the agreement.
   (i) No agreement entered into pursuant to this section shall
infringe on the authority of the department or a regional
transportation agency to develop, maintain, repair, rehabilitate,
operate, or lease any transportation project. Lease agreements may
provide for reasonable compensation to the contracting entity or
lessee for the adverse effects on toll revenue or user fee revenue
due to the development, operation, or lease of supplemental
transportation projects with the exception of any of the following:
   (1) Projects identified in regional transportation plans prepared
pursuant to Section 65080 of the Government Code.
   (2) Safety projects.
   (3) Improvement projects that will result in incidental capacity
increases.
   (4) Additional high-occupancy vehicle lanes or the conversion of
existing lanes to high-occupancy vehicle lanes.
   (5) Projects located outside the boundaries of a public-private
partnership project, to be defined by the lease agreement.
   However, compensation to a contracting entity or lessee shall only
be made after a demonstrable reduction in use of the facility
resulting in reduced toll or user fee revenues, and may not exceed
the difference between the reduction in those revenues and the amount
necessary to cover the costs of debt service, including principal
and interest on any debt incurred for the development, operation,
maintenance, or rehabilitation of the facility.
   (j) (1) Agreements entered into pursuant to this section shall
authorize the contracting entity or lessee to impose tolls and user
fees for use of a facility constructed by it, and shall require that
over the term of the lease the toll revenues and user fees be applied
to payment of the capital outlay costs for the project, the costs
associated with operations, toll and user fee collection,
administration of the facility, reimbursement to the department or
other governmental entity for the costs of services to develop and
maintain the project, police services, and a reasonable return on
investment. The agreement shall require that, notwithstanding
Sections 164, 188, and 188.1, any excess toll or user fee revenue
either be applied to any indebtedness incurred by the contracting
entity or lessee with respect to the project, improvements to the
project, or be paid into the State Highway Account, or for all three
purposes, except that any excess toll revenue under a lease agreement
with a regional transportation agency may be paid to the regional
transportation agency for use in improving public transportation in
and near the project boundaries.
   (2) Lease agreements shall establish specific toll or user fee
rates. Any proposed increase in those rates not otherwise established
or                                          identified in the lease
agreement during the term of the agreement shall first be approved by
the department or regional transportation agency, as appropriate,
after at least one public hearing conducted at a location near the
proposed or existing facility.
   (3) The collection of tolls and user fees for the use of these
facilities may be extended by the commission or regional
transportation agency at the expiration of the lease agreement.
However, those tolls or user fees shall not be used for any purpose
other than for the improvement, continued operation, or maintenance
of the facility.
   (k) Agreements entered into pursuant to this section shall include
indemnity, defense, and hold harmless provisions agreed to by the
department or regional transportation agency and the contracting
entity or lessee, including provisions for indemnifying the State of
California or the regional transportation agency against any claims
or losses resulting or accruing from the performance of the
contracting entity or lessee.
   (l) The plans and specifications for each transportation project
on the state highway system developed, maintained, repaired,
rehabilitated, reconstructed, or operated pursuant to this section
shall comply with the department's standards for state transportation
projects. The lease agreement shall include performance standards,
including, but not limited to, levels of service. The agreement shall
require facilities on the state highway system to meet all
requirements for noise mitigation, landscaping, pollution control,
and safety that otherwise would apply if the department were
designing, building, and operating the facility. If a facility is on
the state highway system, the facility leased pursuant to this
section shall, during the term of the lease, be deemed to be a part
of the state highway system for purposes of identification,
maintenance, enforcement of traffic laws, and for the purposes of
Division 3.6 (commencing with Section 810) of Title 1 of the
Government Code.
   (m) Failure to comply with the lease agreement in any significant
manner shall constitute a default under the agreement and the
department or the regional transportation agency, as appropriate,
shall have the option to initiate processes to revert the facility to
the public agency.
   (n) The assignment authorized by subdivision (c) of Section 130240
of the Public Utilities Code is consistent with this section.
   (o) A lease to a private entity pursuant to this section is deemed
to be public property for a public purpose and exempt from
leasehold, real property, and ad valorem taxation, except for the
use, if any, of that property for ancillary commercial purposes.
   (p) Nothing in this section is intended to infringe on the
authority to develop high-occupancy toll lanes pursuant to Section
149.4, 149.5, or 149.6.
   (q) Nothing in this section shall be construed to allow the
conversion of any existing nontoll or nonuser-fee lanes into tolled
or user fee lanes with the exception of a high-occupancy vehicle lane
that may be operated as a high-occupancy toll lane for vehicles not
otherwise meeting the requirements for use of that lane.
   (r) The lease agreement shall require the contracting entity or
lessee to provide any information or data requested by the California
Transportation Commission or the Legislative Analyst. The
commission, in cooperation with the Legislative Analyst, shall
annually prepare a report on the progress of each project and
ultimately on the operation of the resulting facility. The report
shall include, but not be limited to, a review of the performance
standards, a financial analysis, and any concerns or recommendations
for changes in the program authorized by this section.
   (s) Notwithstanding any other provision of this section, no lease
agreement may be entered into pursuant to the section that affects,
alters, or supersedes the Memorandum of Understanding (MOU), dated
November 26, 2008, entered into by the Golden Gate Bridge Highway and
Transportation District, the Metropolitan Transportation Commission,
and the San Francisco County Transportation Authority, relating to
the financing of the U.S. Highway 101/Doyle Drive reconstruction
project located in the City and County of San Francisco. 
   (t) No lease agreements may be entered into under this section on
or after January 1, 2017. 
   SEC. 28.    Section 183.1 of the   Streets
and Highways Code   is amended to read: 
   183.1.   (a)    Notwithstanding
 subdivision (a) of  Section 182 or any other
provision of law, money deposited into the account that is not
subject to Article XIX of the California Constitution, including, but
not limited to, money that is derived from the sale of documents,
charges for miscellaneous services to the public, condemnation
deposits fund investments, rental of state property, or any other
miscellaneous uses of property or money, may be used for any
transportation purpose authorized by statute, upon appropriation by
the Legislature or, after transfer to another fund, upon
appropriation by the Legislature from that fund. 
   (b) Commencing with the 2013-14 fiscal year, and not later than
November 1 of each fiscal year thereafter, based on prior year
financial statements, the Controller shall transfer the funds
identified in subdivision (a) for the prior fiscal year from the
State Highway Account to the Transportation Debt Service Fund in the
State Transportation Fund, and those funds are continuously
appropriated for the purposes specified for the Transportation Debt
Service Fund. 
   SEC. 9.   SEC. 29.   Article 8
(commencing with Section 228) is added to Chapter 1 of Division 1 of
the Streets and Highways Code, to read:
      Article 8.  Road Access Charge
   228.  (a) In addition to any other charge imposed on a vehicle by
law, an annual road access charge is hereby imposed on each vehicle
described in subdivision (c). The amount of the annual road access
charge shall be thirty-five dollars ($35). The Department of Motor
Vehicles shall collect the charge at the same time and in the same
manner as the department collects the vehicle registration fee
pursuant to Section 9250.3 of the Vehicle Code.
   (b) Revenues from the charge, after deduction of the department's
administrative costs related to this section, shall be deposited in
the Road Maintenance and Rehabilitation Account created pursuant to
Section 2031. 
   (c) The Department of Motor Vehicles shall annually adjust the
road access charge imposed under this section for inflation in an
amount equal to the change in the California Consumer Price Index for
the prior year, as calculated by the Department of Finance, with
amounts equal to or greater than fifty cents ($0.50) to be rounded to
the next highest whole dollar.  
   (c) 
    (d)  As used in this section, "vehicle" means every
vehicle subject to registration in this state. "Vehicle" does not
mean either any vehicle exempted pursuant to the Vehicle Code from
the payment of registration fees or any vehicle for which a
certificate of nonoperation has been filed with the Department of
Motor Vehicles pursuant to Section 4604 of the Vehicle Code during
the period of time covered by the certificate.
   SEC. 30.    Section 820.1 of the   Streets
and Highways Code   is amended to read: 
   820.1.  (a) The State of California consents to the jurisdiction
of the federal courts with regard to the compliance, discharge, or
enforcement of the responsibilities assumed by the department
pursuant to Section 326 of, and subsection (a) of Section 327 of,
Title 23 of the United States Code.
   (b) In any action brought pursuant to the federal laws described
in subdivision (a), no immunity from suit may be asserted by the
department pursuant to the Eleventh Amendment to the United States
Constitution, and any immunity is hereby waived.
   (c) The department shall not delegate any of its responsibilities
assumed pursuant to the federal laws described in subdivision (a) to
any political subdivision of the state or its instrumentalities.
   (d) The department shall, no later than January 1, 2016, submit a
report to the Legislature that includes the following:
   (1) A comparative analysis of the environmental review process
under the National Environmental Policy Act (Chapter 55 (commencing
with Section 4321) of Title 42 of the United States Code) for the 30
projects, excluding those projects categorically excluded from
environmental review, undertaken immediately preceding the enactment
of this section that involved the Federal Highway Administration and
the environmental review process for all projects, excluding those
projects categorically excluded from environmental review, undertaken
following the enactment of this section that did not involve the
Federal Highway Administration. This analysis shall include
department- and local agency-sponsored projects, and shall address
the following:
   (A) For each project included in the analysis, the environmental
review process under the National Environmental Policy Act, including
which state and federal agencies reviewed the environmental
documents and the amount of time the documents were reviewed by each
agency, shall be described.
   (B) The points in the environmental review process under the
National Environmental Policy Act when project delays occurred and
the nature of the delays.
   (C) The time saved in the environmental review process for
projects undertaken following the enactment of this section in
comparison to the review process for projects undertaken prior to the
enactment of this section, and the points in the review process when
time was saved.
   (D) The circumstances when the Federal Highway Administration
hindered and facilitated project delivery.
   (2) All financial costs incurred by the department to assume the
responsibilities pursuant to Section 326 of, and subsection (a) of
Section 327 of, Title 23 of the United States Code, including, but
not limited to, the following:
   (A) Personnel to conduct and review environmental documents and to
manage litigation.
   (B) Administrative costs.
   (C) Litigation.
   (3) An explanation of all litigation initiated against the
department for the responsibilities assumed pursuant to Section 326
of, and subsection (a) of Section 327 of, Title 23 of the United
States Code.
   (4) A comparison of all costs and benefits of assuming these
responsibilities.
   (5) An assessment of overall project delivery time from the time
environmental studies begin to the time the project is ready to
advertise for construction, including the time required for each
project phase and distinguishing between different types of
environmental documents and between projects on the state highway
system and local assistance projects. The department may also include
other variables that it determines may be useful in the assessment.
   (e) (1) This section shall remain in effect only until January 1,
2017, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2017, deletes or extends
that date.  
   (2) The state shall remain liable for any decisions made, or
responsibilities assumed and exercised, prior to the repeal of this
section under this subdivision, pursuant to applicable federal
statutes of limitation for filing citizens' suits in federal court.
 
   (f) 
    (e)  Nothing in this section affects the obligation of
the department to comply with state and federal law.
   SEC. 10.   SEC. 31.   Chapter 2
(commencing with Section 2030) is added to Division 3 of the Streets
and Highways Code, to read:
      CHAPTER 2.  ROAD MAINTENANCE AND REHABILITATION PROGRAM
   2030.  (a) The Road Maintenance and Rehabilitation Program is
hereby created to address deferred maintenance on the state highway
system and the local street and road system. Funds made available by
the program shall be prioritized for expenditure on basic road
maintenance and road rehabilitation projects, and on critical safety
projects. The California Transportation Commission shall adopt
performance criteria pursuant to subdivision (b) of Section 2033 to
ensure efficient use of the funds available pursuant to this chapter
for the program.
   (b) Funds made available by the program shall be used for projects
that include, but are not limited to, the following:
   (1) Road maintenance and rehabilitation.
   (2) Safety projects.
   (3) Railroad grade separations.
   (4) Active transportation and pedestrian and bicycle safety
projects in conjunction with any other allowable project.
   (5) Wildlife crossings.
   (c) To the extent possible, the department and cities and counties
receiving an apportionment of funds under the program shall use
advanced technologies and material recycling techniques that reduce
the cost of maintaining and rehabilitating the streets and highways.
   2031.  The following revenues shall be deposited in the Road
Maintenance and Rehabilitation Account, which is hereby created in
the State Transportation Fund:
   (a) The revenues attributable to the increase in the motor vehicle
fuel excise tax by twelve cents ($0.12) per gallon pursuant to
subdivision (a) of Section 7360 of the Revenue and Taxation Code, as
adjusted pursuant to subdivision (c) of that section, and the
revenues attributable to ten cents ($0.10) per gallon of the increase
in the diesel fuel excise tax by twenty-two cents ($0.22) per
gallon, pursuant to subdivision (b) of Section 60050 of the Revenue
and Taxation Code, as adjusted pursuant to subdivision (c) of that
section, as provided in subdivision (a) of Section 2103.1.
   (b) The revenues from the increase in the vehicle registration fee
pursuant to Section 9250.3 of the Vehicle Code.
   (c) The revenues from the increase in the vehicle registration fee
pursuant to Section 9250.6 of the Vehicle Code.
   (d) The revenues from the road access charge imposed pursuant to
Section 228.
   (e) The revenues from repayment of loans made from the State
Highway Account, the Motor Vehicle Fuel Account, the Highway Users
Tax Account, and the Motor Vehicle Account to the General Fund,
pursuant to the schedule set forth in Section 16321 of the Government
Code.
   (f) Any other revenues designated for the program.
   2031.5.  Each fiscal year the annual Budget Act shall contain an
appropriation from the Road Maintenance and Rehabilitation Account to
the Controller for the costs of carrying out his or her duties
pursuant to this chapter and to the California Transportation
Commission for the costs of carrying out its duties pursuant to this
chapter and Sections 14526.7 and 14526.8 of the Government Code.
   2032.  (a) After deducting the amounts appropriated in the annual
Budget Act as provided in Section 2031.5, 5 percent of the remaining
revenues deposited in the Road Maintenance and Rehabilitation Account
shall be set aside for counties in which voters approve, on or after
July 1,  2015,   2016,  a transactions and
use tax for transportation purposes, and which counties did not,
prior to that approval, impose a transactions and use tax for those
purposes. The funds available under this subdivision in each fiscal
year are hereby continuously appropriated for allocation to each
eligible county and each city in the county for road maintenance and
rehabilitation purposes pursuant to Section 2035. However, funds
remaining unallocated under this subdivision in any fiscal year shall
be reallocated on the last day of the fiscal year pursuant to
subdivision (b).
   (b) The balance of the revenues deposited in the Road Maintenance
and Rehabilitation Account, including the revenues reallocated for
the purposes of this subdivision pursuant to subdivision (a), are
hereby continuously appropriated as follows:
   (1) Fifty percent for allocation to the department for maintenance
of the state highway system, for purposes of the state highway
operation and protection program, or for other eligible purposes
pursuant to Section 2030.
   (2) Fifty percent for apportionment to cities and counties by the
Controller pursuant to the formula in subparagraph (C) of paragraph
(3) of subdivision (a) of Section 2103 for the purposes authorized by
this chapter, subject to subdivision (e) of Section 2033 and
paragraph (2) of subdivision (a) of Section 2034.
   2033.  (a) The commission shall annually evaluate each city and
county receiving funds pursuant to this chapter.
   (b) In addition, the commission shall adopt performance criteria
related to highway performance goals, greenhouse gas emissions,
social equity impacts, and public health impacts. These criteria may
include, but are not limited to, the following:
   (1) Pavement condition, such as the Pavement Condition Index.
   (2) Bridge condition, such as the state's Bridge Health Index.
   (3) Maintenance level of service, such as litter removal and
graffiti abatement.
   (4) Greenhouse gas emissions, including those resulting from
induced demand, and biological emissions.
   (5) Measures of mobility benefits to transit, bicycles, and
pedestrians.
   (6) Quantification of the public health and safety, economic, and
environmental cobenefits.
   (c) For each fiscal year in which the department receives an
allocation of funds pursuant to Section 2032, the department shall
submit documentation to the commission that includes a description
and the location of each completed project, the amount of funds
expended on the project, the completion date, and the project's
estimated useful life. The commission shall evaluate the
documentation to determine the effectiveness of the department in
reducing deferred maintenance and improving roadway conditions on the
state highway system as well as meeting the performance criteria
adopted pursuant to subdivision (b), and may withhold future funding
from the department if it determines that program funds have not been
appropriately spent.
   (d) For each fiscal year in which a city or county receives an
apportionment of funds pursuant to subdivision (a) or paragraph (2)
of subdivision (b) of Section 2032, the commission shall evaluate the
documentation submitted pursuant to subdivision (b) of Section 2034
to determine the effectiveness of the city or county in reducing
deferred maintenance and improving roadway conditions on highways
within its jurisdiction as well as meeting the performance criteria
adopted pursuant to subdivision (b).
   (e) If the commission determines, with respect to any given fiscal
year, that a city or county has not appropriately spent its
apportionment of funds, the commission shall direct the Controller to
make that city or county ineligible to receive an apportionment
during the next fiscal year. The Controller shall reapportion that
city's or county's share of funds to all other eligible cities or
counties pursuant to paragraph (2) of subdivision (b) of Section
2032.
   (f) The commission shall include a discussion of its evaluations
pursuant to this section in its annual report to the Legislature
pursuant to Section 14535 of the Government Code.
   (g) As used in this section, "highways" includes streets and
roads.
   2034.  (a) (1) Prior to receiving an apportionment of funds under
the program pursuant to paragraph (2) of subdivision (b) of Section
2032 from the Controller in a fiscal year, an eligible city or county
shall submit to the commission a list of projects proposed to be
funded with these funds pursuant to an adopted city or county budget.
All projects proposed to receive funding shall be included in a city
or county budget that is adopted by the applicable city council or
county board of supervisors at a regular public meeting. The list of
projects proposed to be funded with these funds shall include a
description and the location of each proposed project, a proposed
schedule for the project's completion, and the estimated useful life
of the improvement. The project list shall not limit the flexibility
of an eligible city or county to fund projects in accordance with
local needs and priorities so long as the projects are consistent
with subdivision (d).
   (2) The commission shall report to the Controller the cities and
counties that have submitted a list of projects as described in this
subdivision and that are therefore eligible to receive an
apportionment of funds under the program for the applicable fiscal
year. The Controller, upon receipt of the report, shall apportion
funds to eligible cities and counties.
   (b) For each fiscal year, each city or county receiving an
apportionment of funds shall, upon expending program funds, submit
documentation to the commission that includes a description and
location of each completed project, the amount of funds expended on
the project, the completion date, the estimated useful life of the
improvement, and a description of how the project contributes to
meeting the performance criteria adopted pursuant to subdivision (b)
of Section 2033. The documentation shall also include a comparison of
the projects the city or county would have completed without
receiving funds under the program compared with the projects
completed with these funds.
   (c) The documentation provided pursuant to subdivision (b) shall
be forwarded by the commission to the department, in a manner and
form approved by the department, at the end of each fiscal year as
long as program funds remain available for expenditure. The
department may post the information contained in the documentation on
its Internet Web site.
   (d) (1) Funds made available to a city or county under the program
shall be used for improvements to transportation facilities that
will assist in reducing further deterioration of the existing road
system. These improvements may include, but need not be limited to,
pavement maintenance, rehabilitation, installation, construction, and
reconstruction of necessary associated facilities such as drainage
and traffic control devices, or safety projects to reduce fatalities.
   (2) Funds made available under the program may also be used for
the following purposes:
   (A) To satisfy the local match requirement in order to obtain
state or federal transportation funds for similar purposes.
   (B) Active transportation and pedestrian and bicycle safety
projects in conjunction with any other allowable project.
   (C) Other eligible purposes consistent with Section 2030.
   2035.  (a) On or before July 1, 2016, the commission, in
cooperation with the department, transportation planning agencies,
county transportation commissions, and other local agencies, shall
develop guidelines for the allocation of funds pursuant to
subdivision (a) of Section 2032.
   (b) The guidelines shall be the complete and full statement of the
policy, standards, and criteria that the commission intends to use
to determine how these funds will be allocated.
   (c) The commission may amend the adopted guidelines after
conducting at least one public hearing.
   2036.  (a) Cities and counties shall maintain their existing
commitment of local funds for street, road, and highway purposes in
order to remain eligible for an allocation or apportionment of funds
pursuant to Section 2032.
   (b) In order to receive an allocation or apportionment pursuant to
Section 2032, the city or county shall annually expend from its
general fund for street, road, and highway purposes an amount not
less than the annual average of its expenditures from its general
fund during the 2009-10, 2010-11, and 2011-12 fiscal years, as
reported to the Controller pursuant to Section 2151. For purposes of
this subdivision, in calculating a city's or county's annual general
fund expenditures and its average general fund expenditures for the
2009-10, 2010-11, and 2011-12 fiscal years, any unrestricted funds
that the city or county may expend at its discretion, including
vehicle in-lieu tax revenues and revenues from fines and forfeitures,
expended for street, road, and highway purposes shall be considered
expenditures from the General Fund. One-time allocations that have
been expended for street and highway purposes, but which may not be
available on an ongoing basis, including revenue provided under the
Teeter Plan Bond Law of 1994 (Chapter 6.6 (commencing with Section
54773) of Part 1 of Division 2 of Title 5 of the Government Code),
may not be considered when calculating a city's or county's annual
general fund expenditures.
   (c) For any city incorporated after July 1, 2009, the Controller
shall calculate an annual average of expenditure for the period
between July 1, 2009, and December 31, 2015, inclusive, that the city
was incorporated.
   (d) For purposes of subdivision (b), the Controller may request
fiscal data from cities and counties in addition to data provided
pursuant to Section 2151, for the 2009-10, 2010-11, and 2011-12
fiscal years. Each city and county shall furnish the data to the
Controller not later than 120 days after receiving the request. The
Controller may withhold payment to cities and counties that do not
comply with the request for information or that provide incomplete
data.
   (e) The Controller may perform audits to ensure compliance with
subdivision (b) when deemed necessary. Any city or county that has
not complied with subdivision (b) shall reimburse the state for the
funds it received during that fiscal year. Any funds withheld or
returned as a result of a failure to comply with subdivision (b)
shall be reapportioned to the other counties and cities whose
expenditures are in compliance.
   (f) If a city or county fails to comply with the requirements of
subdivision (b) in a particular fiscal year, the city or county may
expend during that fiscal year and the following fiscal year a total
amount that is not less than the total amount required to be expended
for those fiscal years for purposes of complying with subdivision
(b).
   2037.  A city or county may spend its apportionment of funds under
the program on transportation priorities other than those allowable
pursuant to this chapter if the city's or county's average Pavement
Condition Index meets or exceeds 85. 
   2038.  (a) The Department of Transportation and local agencies, as
a condition of receiving funds from the program, shall adopt and
implement a program designed to promote and advance construction
employment and training opportunities through preapprenticeship
opportunities, either by the public agency itself or through
contractors engaged by the public agencies to do work funded in whole
or in part by                                              funds
made available by the program.
   (b) The Department of Transportation and local agencies, as a
condition of receiving funds from the program, shall ensure the
involvement of the California Conservation Corps and certified
community conservation corps in the delivery of projects and services
funded in whole or in part by funds made available by the program.
   SEC. 11.   SEC. 32.   Section 2103.1 is
added to the Streets and Highways Code, to read:
   2103.1.  Notwithstanding subdivision (b) of Section 2103, the
portion of the revenues in the Highway Users Tax Account attributable
to the increase in the tax rate on motor vehicle fuel by twelve
cents ($0.12) per gallon pursuant to subdivision (a) of Section 7360
of the Revenue and Taxation Code, as adjusted pursuant to subdivision
(c) of that section, and the increase in the tax rate on diesel fuel
by twenty-two cents ($0.22) per gallon pursuant to subdivision (b)
of Section 60050 of the Revenue and Taxation Code, as adjusted
pursuant to subdivision (c) of that section, shall be deposited in
the Road Maintenance and Rehabilitation Account created pursuant to
Section 2031, except that the portion of the revenues attributable to
twelve cents ($0.12) of that increase in the per gallon tax rate on
diesel fuel, as adjusted, shall be deposited in the Trade Corridors
Improvement Fund for expenditure pursuant to Section 2192.
   SEC. 33.    Section 2103.2 is added to the  
Streets and Highways Code   , to read:  
   2103.2.  Notwithstanding Section 2103, the revenues transferred to
the Highway Users Tax Account pursuant to Sections 8352.4, 8352.5,
and 8352.6 of the Revenue and Taxation Code shall be distributed
pursuant to the formula in paragraph (3) of subdivision (a) of
Section 2103. 
   SEC. 12.   SEC. 34.   Section 9250.3 is
added to the Vehicle Code, to read:
   9250.3.  (a) In addition to any other fees specified in this code,
the Revenue and Taxation Code, or the Streets and Highways Code,
commencing 120 days after the effective date of the act adding this
section, a registration fee of thirty-five dollars ($35) shall be
paid to the department for registration or renewal of registration of
every vehicle subject to registration under this code, except those
vehicles that are expressly exempted under this code from payment of
registration fees. 
   (b) The Department of Motor Vehicles shall annually adjust the fee
imposed under this section for inflation in an amount equal to the
change in the California Consumer Price Index for the prior year, as
calculated by the Department of Finance, with amounts equal to or
greater than fifty cents ($0.50) rounded to the next highest whole
dollar.  
   (b) 
    (c)  Revenues from the fee, after deduction of the
department's administrative costs related to this section, shall be
deposited in the Road Maintenance and Rehabilitation Account created
pursuant to Section 2031 of the Streets and Highways Code.
   SEC. 13.   SEC. 35.   Section 9250.6 is
added to the Vehicle Code, to read:
   9250.6.  (a) In addition to any other fees specified in this code,
the Revenue and Taxation Code, or the Streets and Highways Code,
commencing 120 days after the effective date of the act adding this
section, a registration fee of one hundred dollars ($100) shall be
paid to the department for registration or renewal of registration of
every zero-emission motor vehicle subject to registration under this
code, except those motor vehicles that are expressly exempted under
this code from payment of registration fees.
   (b) Revenues from the fee, after deduction of the department's
administrative costs related to this section, shall be deposited in
the Road Maintenance and Rehabilitation Account created pursuant to
Section 2031 of the Streets and Highways Code.
   (c) This section does not apply to a commercial motor vehicle
subject to Section 9400.1.
   (d) For purposes of this section, "zero-emission motor vehicle"
means a motor vehicle as described in subdivisions (c) and (d) of
Section 44258 of the Health and Safety  Code,  
Code  or any other motor vehicle that is able to operate on any
fuel other than gasoline or diesel fuel.
   SEC. 36.    Section 9400.5 is added to the  
Vehicle Code   , to read:  
   9400.5.  Notwithstanding Sections 9400.1, 9400.4, and 42205 of
this code, Sections 16773 and 16965 of the Government Code, Section
2103 of the Streets and Highways Code, or any other law, all of the
following shall occur with respect to use of weight fee revenues:
   (a) The amount of weight fee revenues transferred in each fiscal
year from the State Highway Account to the Transportation Debt
Service Fund or to the Transportation Bond Direct Payment Account
shall not exceed the amount necessary to pay the current year debt
service in that fiscal year on bonds issued pursuant to Proposition
192 (1996), Proposition 108 (1990), and Proposition 1B (2006), and
then only for the portion of bond debt service that relates to
expenditures of bond proceeds for purposes consistent with Article
XIX of the California Constitution.
   (b)  Weight fee revenues shall not be loaned to the General Fund.
   (c)  Weight fee revenues that remain in the State Highway Account
shall be expended for the purposes authorized by law for that
account, but not including payment of transportation general
obligation bond debt service. 
   SEC. 37.    Section 9400.6 is added to the  
Vehicle Code   , to read:  
   9400.6.  On or before January 1, 2021, the Department of Finance,
in consultation with the Transportation Agency and the California
Transportation Commission, shall develop a plan, including proposed
statutory changes, for implementation in whole or in part beginning
no later than the 2021-22 fiscal year, to restore 100 percent of
weight fee revenues, after deduction of collection costs, to the
State Highway Account, for expenditure on the purposes authorized by
law for that account, but not including payment of transportation
general obligation bond debt service. 
   SEC. 14.   SEC. 38.   This act is an
urgency statute necessary for the immediate preservation of the
public peace, health, or safety within the meaning of Article IV of
the Constitution and shall go into immediate effect. The facts
constituting the necessity are:
   In order to provide additional funding for  road
maintenance and rehabilitation   transportation
purposes as quickly as possible, it is necessary for this act to take
effect immediately.