BILL NUMBER: AB 2928	CHAPTERED  07/07/00

	CHAPTER   91
	FILED WITH SECRETARY OF STATE   JULY 7, 2000
	PASSED THE ASSEMBLY   JUNE 22, 2000
	PASSED THE SENATE   JUNE 15, 2000
	AMENDED IN SENATE   JUNE 15, 2000

INTRODUCED BY   Assembly Members Torlakson and Florez
   (Coauthors:  Assembly Members Alquist, Aroner, Cardoza, Cedillo,
Corbett, Davis, Dutra, Gallegos, Hertzberg, Knox, Longville, Machado,
Mazzoni, Romero, Scott, Shelley, Steinberg, Thomson, Villaraigosa,
Wahington, Wiggins, and Wildman)
   (Coauthors:  Senators Alpert, Chesbro, Murray, Perata, Polanco,
and Soto)

                        MARCH 20, 2000

   An act to amend Sections 14524, 14525, 14526, 14527, 14529, 65080,
65082, and 65083 of, and to add Chapter 4.5 (commencing with Section
14556) to Part 5.3 of Division 3 of Title 2 of, the Government Code,
to amend, repeal, and add Section 7102 of, to add Section 10754.2
to, and to add and repeal Section 7104 of, the Revenue and Taxation
Code, and to amend Sections 164.6, 182.6, and 182.7 of, and to add
Sections 182.8, 183.1, 2182, and 2182.1 to, the Streets and Highways
Code, relating to transportation, making an appropriation therefor,
and declaring the urgency thereof, to take effect immediately.

      (Approved by Governor July 6, 2000.  Filed with
Secretary of State July 7, 2000.)

   I am signing Assembly Bill No. 2928, a comprehensive
transportation funding measure which incorporates most of the
proposals I made for almost $5 billion in congestion relief,
transportation system connectivity and goods movement projects.  The
bill also provides over $1.4 billion in additional funds over five
years for local street and road maintenance, transit operations and
State Transportation Improvement Program projects.
   However, I am reducing or eliminating certain appropriations made
in Section 6 of the bill, which adds Chapter 4.5 (commencing with
Article 5, Section 14556.40) to Part 5.3 of Division 3 of Title 2 of
the Government Code, by a total of $93,800,000.  These expenditures
are being eliminated because I have specific concerns about the
projects and their priority for inclusion in this plan, and about the
precedent these projects would set with respect to state
expenditures.  Additionally, I am requesting that the Legislature
enact subsequent legislation to correct certain technical defects in
this bill and modify the financing of the program to have less of an
impact on the State General Fund in future years.
   I am reducing the expenditures in Chapter 4.5, Article 5, Section
14556.40, Subsection (a) of the Government Code by eliminating or
reducing the following paragraphs:
   Paragraph (120) is eliminated, which allocates $1,500,000 to Yuba
County for the Yuba Airport runway extension and associated
improvements.  This project is not a congestion relief project
affecting most travelers in the area..
   Paragraph (125) is eliminated, which allocates $5,000,000 to the
Orange County Transportation Authority for the Route 57 toll road
environmental impact report and study for expansion project.  The
franchise agreement for this project prohibits use of state funds in
this fashion.
   Paragraph (130) is eliminated, which allocates $3,500,000 to the
City of Garden Grove for the Route 22; connector to the interchange
with I-405.  Over $206 million for Route 22 is already included in
paragraph (70).
   Paragraph (131) is eliminated, which allocates $800,000 to the
town of Apple Valley for the Bear Valley Road closure project and
Kasota Road safety redesign.  Funding for this project may be
available in the State Highway Operations and Preservation Program
and through local street and road funding.
   Paragraph (132) is eliminated, which allocates $7,000,000 to Los
Angeles County for the Fairway Drive grade separation project in the
San Gabriel Valley.  This project already has access to several
funding sources through the Alameda Corridor East Project.
   Paragraph (136) is eliminated, which allocates $3,500,000 to City
of Palmdale for the widening of Avenue S; between Route 14 and Route
138.  This project does not appear to provide significant congestion
relief or to fit other priorities for use of these funds.
   Paragraph (137) is eliminated, which allocates $5,500,000 to City
of Lancaster for improvements to the Fox Field Industrial Corridor.
This project does not appear to provide significant congestion relief
or to fit other priorities for use of these funds.
   Paragraph (138) is reduced by $3,000,000 to $4,000,000, which
allocates funds to the Cross Valley Rail Corridor Joint Powers
Authority for the upgrade of railroad track from Visalia to Huron.
This project mainly funds improvements to rail lines that will be
used by short line freight rail. Although I recognize that this
project may provide significant local goods movement capacity, I
expect local and railroad funds to provide the majority of funding.
   Paragraph (142) is reduced by $1,500,000 to $2,000,000 for the
City of West Hollywood for the repair, maintenance, and mitigation of
Santa Monica Boulevard.  A portion this project appears to be
eligible for the street and road maintenance funding provided in this
measure.
   Paragraph (143) is eliminated, which allocates $1,900,000 to the
Capital Corridor Joint Powers Authority for the expansion of
intercity rail service between San Jose, Oakland, and the Sacramento
region.  Such service cannot be implemented this year, and the
ongoing operating costs should be funded from the Public
Transportation Account in due course.
   Paragraph (144) is reduced by $45,000,000 to $5,000,000 for the
Golden Gate Bridge Highway and Transportation District for the
seismic retrofit of the Golden Gate Bridge.  It is my understanding
that other funding sources are available, and Caltrans will be
working.with the District to assist in securing federal funding for
this project.
   Paragraph (147) is eliminated, which allocates $7,000,000 to the
Imperial Valley Association of Governments for the reconstruction of
the I-8/Imperial Avenue interchange.  This project does not appear to
provide significant congestion relief or to fit other priorities for
use of these funds.
   Paragraph (155) is eliminated, which allocates $8,600,000 to the
City of Chula Vista to acquire right-of-way, build, and operate a
10-mile limited access tall facility from San Miguel Road to Otay
Mesa Road and conduct a due diligence review, including an
independent appraisal of the feasibility of acquisition by a public
agency of the Route 125 franchise agreement authorized under Section
143 of the Streets and Highways Code.  I do not support state funding
for the acquisition of a private toll road franchise.
   Additionally, I am taking identical actions on the same projects
as listed in SB 406, a measure that corrects certain provisions of
this bill.
                                                 GRAY DAVIS, Governor


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2928, Torlakson.  Transportation:  finance.
   (1) Existing law requires the California Transportation
Commission, in conjunction with the Department of Transportation,
transportation planning agencies, county transportation commissions,
and transportation authorities, to develop a 4-year state
transportation improvement program for purposes of planning the
appropriation and allocation of available transportation funds to
state, regional, and local transportation projects, including a
4-year process for estimating the amount of state and federal funds
to be available for those transportation projects.
   This bill would extend the 4-year state transportation improvement
program, including the 4-year fund estimation process, to 5 years.
   The bill would establish the Traffic Congestion Relief Fund
(hereafter the TCRF) in the State Treasury and would appropriate the
money in the TCRF to the department for allocation, as directed by
the commission, to the department and certain regional and local
transportation entities for transportation projects listed in the
bill, to the Controller for allocation to cities, counties, and
cities and counties for street and road maintenance, rehabilitation,
and reconstruction, to the commission for the purposes of a funding
exchange program established by the bill, and to the department for
rehabilitation and repaving projects on state highways.
   The bill would establish a list of transportation projects
eligible for funding with money from the TCRF, would specify the lead
applicant for each project, and would establish a procedure for the
lead applicant to apply to the commission for funds for each project.

   (2) The Sales and Use Tax Law imposes, among other things, a tax
at a rate of 4 3/4% upon the gross receipts from the retail sale in
this state of, and the storage, use, or other consumption in this
state of, tangible personal property.
   Existing law requires that all revenues, less refunds, derived
under that law at the 4 3/4% rate from the sale, storage, use, or
other consumption in this state of motor vehicle fuel, as defined, or
fuel, as defined, be transferred to certain accounts and funds in
accordance with specified formulas, with the balance to be
transferred to the General Fund.
   This bill would require, for the 2000-01 fiscal year only, that
all revenue, less refunds, derived under that law at the 5% rate,
resulting from the rate of tax imposed under the Motor Vehicle Fuel
License Tax Law, except as specified, and all revenue, less refunds,
derived under that law at the 5% rate, resulting from the rate of tax
imposed under a specified federal motor vehicle fuel tax, be
transferred quarterly to the TCRF.
   The bill would require, until June 30, 2001, that the amounts
transferred be included for purposes of a specified calculation
relating to school funding and required under the California
Constitution.
   (3) The Sales and Use Tax Law provides for the allocation of the
revenues derived from the taxes imposed under that law for various
specific purposes, with the balance being allocated to the General
Fund.
   This bill would require the State Board of Equalization, in
consultation with the Department of Finance, on a quarterly basis, to
estimate the amount that is required to be transferred to the
General Fund, as specified, that is attributable to revenue collected
for the sale, storage, use, or other consumption in this state of
motor vehicle fuel, as defined, and inform the Controller, in
writing, of the amount estimated.
   The bill would require the Controller to transfer that estimated
amount from the General Fund to the Transportation Investment Fund
(hereafter the TIF), which the bill would create in the State
Treasury.
   The bill would require the Controller, for each quarter during the
period commencing on July 1, 2001, and ending on June 30, 2006, to
transfer from the TIF (a) to the TCRF, the sum of $169,500,000, for a
total transfer of $3,390,000,000; (b) to the Public Transportation
Account, a trust fund in the State Transportation Fund, 20% of the
amount remaining in the TIF after the transfer described in (a), for
appropriation as specified; (c) to the Department of Transportation
40% of the amount remaining in the TIF after the transfer described
in (a), for programming for transportation capital improvement
projects, subject to all of the provisions governing the State
Transportation Improvement Program; (d) to the counties, including a
city and county, 20% of the amount remaining in the TIF after the
transfer described in (a), for apportionment in accordance with
certain formulas; and (e) to the cities, including a city and county,
20% of the amount remaining in the TIF after the transfer described
in (a), for apportionment among the cities in the proportion that the
total population of the city bears to the total population of all
the cities in the state.
   The bill would require that funds transferred as described in (d)
and (e) be deposited in certain local accounts, as specified, in
order to avoid the commingling of those funds with other local funds
and that the funds be used only for street and highway maintenance,
rehabilitation, reconstruction, and storm damage repair, as defined.

   The bill would require cities and counties to maintain their
existing commitment of local funds for street and highway
maintenance, rehabilitation, reconstruction, and storm damage repair
in order to remain eligible for allocation of the funds described in
(d) and (e).  The bill would require a city or county, in order to
receive any of that specified allocation, to make prescribed annual
expenditures.
   The bill would require the Los Angeles County Metropolitan
Transportation Authority to give first priority for using its share
of certain transit assistance and operation funds made available
under these provisions to providing the levels of bus service
mandated under the consent decree entered into by the authority on
October 29, 1996, in the case of Labor/Community Strategy Center, et
al. v. Los Angeles County Metropolitan Transportation Authority.
   (4) The Vehicle License Fee Law establishes, in lieu of any ad
valorem property tax upon vehicles, an annual license fee for any
vehicle subject to registration in this state in the amount of 2% of
the market value of that vehicle, as specified.  Existing law
permanently offsets the amount of the vehicle license fee for each
subject vehicle by 25%, and, subject to specified contingencies with
respect to fiscal year projections of General Fund revenues, provides
for the implementation of similar, superseding offsets of 35%,
46.5%, 55%, and 67.5% to apply to specified future calendar years.
   The bill would prohibit, for the 2000-01 fiscal year, any General
Fund forecast of revenues used for the purposes specified in existing
law from including any revenue loss due to the transfers required
under (2) above.
   (5) Existing law provides for allocation of federal regional
surface transportation funds and federal congestion mitigation and
air quality program funds to the regions in the state.
   This bill would require the commission to establish a program to
allow exchange of those federal funds for state transportation funds.

   (6) The California Constitution requires the revenues from taxes
imposed by the state on motor vehicle fuels for use in motor vehicles
upon public streets and highways, over and above the costs of
collection and refunds authorized by law, to be used for public
streets and highways and exclusive public mass transit guideways
purposes, as specified.  Revenues from fees and taxes imposed by the
state upon vehicles or their use or operation, over and above the
costs of collection and any refunds authorized by law, are required
to be used for those purposes and the administration and enforcement
of laws regulating the use, operation, or registration of vehicles
used upon the public streets and highways.
   This bill would authorize money deposited into the State Highway
Account in the State Transportation Fund that is not subject to the
constitutional requirements specified above to be used for any
transportation purpose authorized by statute, as specified.
   (7) Existing law requires that all transportation funds that are
available to the state be expended for certain listed purposes in
accordance with a specified sequence of priorities.
   This bill would appropriate $1,500,000,000 from the General Fund
to the TCRF for certain, specified purposes of the bill.
   The bill would appropriate $400,000,000 from the TCRF to the
Controller for allocation to cities and counties for certain,
specified purposes of this bill.
   The bill would appropriate $5,000,000 from the TCRF to the
High-Speed Rail Authority for the purpose of commencing preliminary
environmental documentation for the implementation of a high-speed
rail service in California.
   (8) This bill would declare that it is to take effect immediately
as an urgency statute.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 14524 of the Government Code is amended to
read:
   14524.  (a) Not later than July 15, 2001, and July 15 of each
odd-numbered year thereafter, the department shall submit to the
commission a five-year estimate pursuant to Section 164 of the
Streets and Highways Code, in annual increments, of all federal and
state funds reasonably expected to be available during the following
five fiscal years.
   (b) The estimate shall specify the amount that may be programmed
in each county for regional improvement programs pursuant to
paragraph (2) of subdivision (a) of Section 164 of the Streets and
Highways Code and shall identify any statutory restriction on the use
of particular funds.
   (c) For the purpose of estimating revenues, the department shall
assume that there will be no changes in existing state and federal
statutes.  Federal funds available for demonstration projects that
are not subject to federal obligational authority, or are accompanied
with their own dedicated obligational authority, shall not be
considered funds that would otherwise be available to the state and
shall not be included in the fund estimate.
   (d) The method by which the estimate is determined shall be
determined by the commission, in consultation with the department,
transportation planning agencies, and county transportation
commissions.
  SEC. 2.  Section 14525 of the Government Code is amended to read:
   14525.  (a) Not later than August 15, 2001, and August 15 of each
odd-numbered year thereafter, the commission shall adopt a five-year
estimate pursuant to Section 164 of the Streets and Highways Code, in
annual increments, of all state and federal funds reasonably
expected to be available during the following five fiscal years.
   (b) The estimate shall specify the amount that may be programmed
in each county for regional improvement programs under paragraph (2)
of subdivision (a) of Section 164 of the Streets and Highways Code
and shall identify any statutory restriction on the use of particular
funds.
   (c) For the purpose of estimating revenues, the commission shall
assume that there will be no change in existing state and federal
statutes.  Federal funds available for demonstration projects that
are not subject to federal obligational authority, or are accompanied
with their own dedicated obligational authority, shall not be
considered funds that would otherwise be available to the state and
shall not be included in the fund estimate.
   (d) If the commission finds that legislation pending before the
Legislature or the United States Congress may have a significant
impact on the fund estimate, the commission may postpone the adoption
of the fund estimate for no more than 90 days.  Prior to March 1 of
each even-numbered year, the commission may amend the estimate
following consultation with the department, transportation planning
agencies, and county transportation commissions to account for
unexpected revenues or other unforeseen circumstances.  In the event
the fund estimate is amended, the commission shall extend the dates
for the submittal of improvement programs as specified in Sections
14526 and 14527 and for the adoption of the state transportation
improvement program pursuant to Section 14529.
  SEC. 3.  Section 14526 of the Government Code is amended to read:
   14526.  (a) Not later than December 15, 2001, and December 15 of
each odd-numbered year thereafter, and after consulting with the
transportation planning agencies, county transportation commissions,
and transportation authorities, the department shall submit to the
commission its five-year interregional transportation improvement
program consisting of all of the following:
   (1) Projects to improve state highways, pursuant to subdivision
(b) of Section 164 of the Streets and Highways Code.
   (2) Projects to improve the intercity passenger rail system.
   (3) Projects to improve interregional movement of people,
vehicles, and goods.
   (b) Projects may not be included in the interregional
transportation improvement program without a project study report or
major investment study.
   (c) Major projects shall include current costs updated as of
November 1 of the year of submittal and escalated to the appropriate
year, and shall be consistent with, and provide the information
required in, subdivision (b) of Section 14529.
   (d) Projects included in the interregional transportation
improvement program shall be consistent with the adopted regional
transportation plan.
  SEC. 4.  Section 14527 of the Government Code is amended to read:
   14527.  (a) After consulting with the department, the regional
transportation planning agencies and county transportation
commissions shall adopt and submit to the commission and the
department, not later than December 15, 2001, and December 15 of each
odd-numbered year thereafter, a five-year regional transportation
improvement program in conformance with Section 65082.  In counties
where a county transportation commission or authority has been
created pursuant to Chapter 2 (commencing with Section 130050) of
Division 12 of the Public Utilities Code, the commission or the
authority shall adopt and submit the county transportation
improvement program, in conformance with Sections 130303 and 130304
of that code, to the multicounty designated transportation planning
agency.  Other information, including a program for expenditure of
local or federal funds, may be submitted for information purposes
with the program, but only at the discretion of the transportation
planning agencies or the county transportation commissions.
   (b) The regional transportation improvement program shall include
all projects to be funded with regional improvement funds under
paragraph (2) of subdivision (a) of Section 164 of the Streets and
Highways Code.  The regional programs shall be limited to projects to
be funded in whole or in part with regional improvement funds which
shall include all projects to receive allocations by the commission
during the following five fiscal years.  For each project, the total
expenditure for each project component and the total amount of
commission allocation and the year of allocation shall be stated.
The total cost of projects to be funded with regional improvement
funds shall not exceed the amount specified in the fund estimate made
by the commission pursuant to Section 14525.
   (c) The regional transportation planning agencies and county
transportation commissions may recommend projects to improve state
highways with interregional improvement funds pursuant to subdivision
(b) of Section 164 of the Streets and Highways Code.  The
recommendations shall be separate and distinct from the regional
transportation program.  A project recommended for funding pursuant
to this subdivision shall constitute a usable segment and shall not
be a condition for inclusion of other projects in the regional
transportation improvement program.
   (d) Major projects shall include current costs updated as of
November 1 of the year of submittal and escalated to the appropriate
year, and shall be consistent with, and provide the information
required in, subdivision (b) of Section 14529.
   (e) The regional transportation improvement program may not change
the project delivery milestone date of any project as shown in the
prior adopted state transportation improvement program without the
consent of the department or other agency responsible for the project'
s delivery.
   (f) Projects may not be included in the regional transportation
improvement program without a complete project study report or, for a
project that is not on a state highway, a project study report
equivalent or major investment study.
   (g) The transportation planning agencies and county transportation
commissions may request and receive an amount not to exceed one-half
of 1 percent of their regional improvement fund expenditures for the
purposes of project planning, programming, and monitoring.  A
transportation planning agency or county transportation commission
not receiving federal metropolitan planning funds may request and
receive an amount not to exceed 2 percent of its regional improvement
fund expenditures for the purposes of project planning, programming,
and monitoring.
  SEC. 5.  Section 14529 of the Government Code is amended to read:
   14529.  (a) The state transportation improvement program shall
include a listing of all capital improvement projects that are
expected to receive an allocation of state transportation funds under
Section 164 of the Streets and Highways Code, including revenues
from transportation bond acts, from the commission during the
following five fiscal years.  It shall include, and be limited to,
the projects to be funded with the following:
   (1) Interregional improvement funds.
   (2) Regional improvement funds.
   (b) For each project, the program shall specify the allocation or
expenditure amount and the allocation or expenditure year for each of
the following project components:
   (1) Completion of all permits and environmental studies.
   (2) Preparation of plans, specifications, and estimates.
   (3) The acquisition of rights-of-way, including, but not limited
to, support activities.
   (4) Construction and construction management and engineering,
including surveys and inspection.
   (c) Funding for right-of-way acquisition and construction for a
project may be included in the program only if the commission makes a
finding that the sponsoring agency will complete the environmental
process and can proceed with right-of-way acquisition or construction
within the five-year period.  No allocation for right-of-way
acquisition or construction shall be made until the completion of the
environmental studies and the selection of a preferred alternative.

   (d) The commission shall adopt and submit to the Legislature and
the Governor, not later than April 1 of each even-numbered year
thereafter, a state transportation improvement program.  The program
shall cover a period of five years, beginning July 1 of the year it
is adopted, and shall be a statement of intent by the commission for
the allocation or expenditure of funds during those  five years.  The
program shall include projects which are expected to receive funds
prior to July 1 of the year of adoption, but for which the commission
has not yet allocated funds.
   (e) The projects included in the adopted state transportation
improvement program shall be limited to those projects submitted or
recommended pursuant to Sections 14526 and 14527.  The total amount
programmed in each fiscal year for each program category shall not
exceed the amount specified in the fund estimate adopted under
Section 14525.
   (f) The state transportation improvement program is a resource
management document to assist the state and local entities to plan
and implement transportation improvements and to utilize available
resources in a cost-effective manner.  It is a document for each
county and each region to declare their intent to use available state
and federal funds in a timely and cost-effective manner.
   (g) Prior to the adoption of the state transportation improvement
program, the commission shall hold not less than one hearing in
northern California and one hearing in southern California to
reconcile any objections by any county or regional agency to the
department's program or the department's objections to any regional
program.
   (h) The commission shall incorporate projects that are included in
the regional transportation improvement program and are to be funded
with regional improvement funds, unless the commission finds that
the regional transportation improvement program is not consistent
with the guidelines adopted by the commission or is not a
cost-effective expenditure of state funds, in which case the
commission may reject the regional transportation improvement program
in its entirety.  The finding shall be based on an objective
analysis, including, but not limited to, travel forecast, cost, and
air quality.  The commission shall hold a public hearing in the
affected county or region prior to rejecting the program, or not
later than 60 days after rejecting the program.  When a regional
transportation improvement program is rejected, the regional entity
may submit a new regional transportation improvement program for
inclusion in the state transportation improvement program.  The
commission shall not reject a regional transportation improvement
program unless, not later than 60 days after the date it received the
program, it provided notice to the affected agency that specified
the factual basis for its proposed action.
   (i) A project may be funded with more than one of the program
categories listed in Section 164 of the Streets and Highways Code.
   (j) Notwithstanding any other provision of law, no local or
regional matching funds shall be required for projects that are
included in the state transportation improvement program.
   (k) The commission may include a project recommended by a regional
transportation planning agency or county transportation commission
pursuant to subdivision (c) of Section 14527, if the commission makes
a finding, based on an objective analysis, that the recommended
project is more cost-effective than a project submitted by the
department pursuant to Section 14526.
  SEC. 6.  Chapter 4.5 (commencing with Section 14556) is added to
Part 5.3 of Division 3 of Title 2 of the Government Code, to read:

      CHAPTER 4.5.  THE TRAFFIC CONGESTION RELIEF ACT OF 2000
      Article 1.  General Provisions

   14556.  This chapter shall be known and may be cited as the
Traffic Congestion Relief Act of 2000.
   14556.1.  For purposes of this chapter, the following terms shall
have the following meanings, unless expressly stated otherwise:
   (a) "Commission" is the California Transportation Commission.
   (b) "Department" is the Department of Transportation.
   (c) "Fund" is the Traffic Congestion Relief Fund created under
this chapter.
   (d) "Program" is the Traffic Congestion Relief Program established
under this chapter.
   14556.3  The Legislature finds and declares that it is in the
interest of the State of California to immediately take steps to
relieve congestion on the state's transportation systems and finds
and declares the following:
   (a) California's population has grown by more than 50 percent over
the past 20 years while highway capacity has increased only 7
percent.
   (b) Between 1987 and 1995, the number of California drivers who
sit idle in traffic congestion has grown 70 percent, and California
drivers now sit idle in traffic congestion more than 300,000 hours
per day.
   (c) It is estimated that traffic congestion in California now
costs the state's businesses more than two million eight hundred
thousand dollars ($2,800,000) per day in lost time and resources.
   (d) Local streets and roads in California suffer from an estimated
ten billion two hundred million dollars ($10,200,000,000) backlog of
deferred maintenance.  The magnitude of this backlog is estimated to
increase by four hundred million dollars ($400,000,000) each year.
   (e) The Public Transportation Account in the State Transportation
Fund, which provides funds for transit operations and intercity rail
service in California, is estimated to have a four-year deficit of
fifty-three million dollars ($53,000,000), increasing to a six-year
deficit of one hundred fifty-eight million dollars ($158,000,000).
   (f) The state's population is expected to exceed 45,000,000
persons by the year 2020, imposing additional demand on the
transportation system.
   (g) Significant benefits will be obtained by completing major
improvements earlier, accelerating development of new improvements,
and improving the connectivity of the various transportation modes
within the state's transportation system.
   (h) Therefore, it is appropriate to create a Traffic Congestion
Relief Fund to finance congestion relief improvements, to dedicate
the sales tax on gasoline to transportation purposes, and to create a
Transportation Investment Fund to finance improvements to
neighborhood streets and roads, to provide funding for transit
operations and intercity rail, and to supplement the Traffic
Congestion Relief Fund.

      Article 2.  Traffic Congestion Relief Fund

   14556.5.  The Traffic Congestion Relief Fund is hereby created in
the State Treasury.  The fund shall include deposits of funding
provided in the annual Budget Act, provided from the Transportation
Investment Fund established under Section 7104 of the Revenue and
Taxation Code, or provided under any other legislation.
Notwithstanding Section 13340, the money in the fund is hereby
continuously appropriated to the department, without regard to fiscal
years, for allocation, as directed by the commission pursuant to
Section 14556.20, to the department and other regional and local
transportation entities for the projects listed in Article 5
(commencing with Section 14556.40) to the Controller for allocation
to cities, counties, and cities and counties pursuant to Section 2182
of the Streets and Highways Code, and to the commission for the
funding exchange program authorized by Section 182.8 of the Streets
and Highways Code.
   14556.6.  The purpose of this article is to relieve traffic
congestion, provide additional funding for local street and road
deferred maintenance, and provide additional transportation capacity
in high growth areas of the state.  The Traffic Congestion Relief
Fund is intended to contribute five billion three hundred ninety
million dollars ($5,390,000,000), above the traditional
transportation funding provided by the state, towards the funding of
projects listed in Article 5 (commencing with Section 14556.40) and
the deferred maintenance program authorized in Section 2182 of the
Streets and Highways Code.  This funding commitment is intended to be
combined with other state, local, federal, and private funds to
complete and operate the transportation improvements identified in
Article 5 (commencing with Section 14556.40).  Funds needed to meet
the contribution commitment described in this section are intended to
be provided as follows:
   (a) The sum of one billion five hundred million dollars
($1,500,000,000) from the General Fund, as appropriated by Section 20
of the act that added this chapter, to the fund.
   (b) The sum of five hundred million dollars ($500,000,000) from
the transfer of the sales and use tax on motor vehicle fuel during
the 2000-01 fiscal year, as required under Section 7102 of the
Revenue and Taxation Code, as amended by Section 10 of the act that
added this section.
   (c) The sum of six hundred seventy-eight million dollars
($678,000,000) is intended to be provided in each of five successive
fiscal years, commencing with the 2001-02 fiscal year, from the
Transportation Investment Fund.

      Article 3.  Fund Allocation and Expenditure

   14556.10.  (a) The lead applicant agency specified for each
project in Article 5 (commencing with Section 14556.40) shall be
responsible for preparing and submitting a project application to the
commission in accordance with guidelines adopted by the commission.

   (b) The lead applicant agency may, but is not required, to be the
agency responsible for carrying out the work to complete the project.

   (c) A lead applicant agency may submit separate applications for
separate projects identified in Article 5 (commencing with Section
14556.40).
   14556.11.  Not later than 90 days from the effective date of the
act that added this section, the commission, in consultation with the
department and representatives from regional agencies and local
agencies, and after a public hearing, shall establish guidelines to
implement this chapter.  The guidelines shall include, but not be
limited to, criteria for project applications, estimation costs,
assessment of capability to complete the project, allocation of funds
to project phases, timely expenditure of funds, management of
changes to cost, scope, and schedules, assessment of progress in
implementing projects, and audit requirements.
   14556.12.  (a) Designated lead applicant agencies shall submit
applications to the commission within two years of the effective date
of the act that added this section.  If a completed application is
not received within this period for a project listed in Article 5
(commencing with Section 14556.40), or an alternate project has not
been submitted by the appropriate lead agency pursuant to subdivision
(b), the commission shall notify the Governor and the Legislature
and shall seek statutory identification and approval of another
project or projects to use the funds.
   (b) (1) A designated lead applicant agency may submit an
application for an alternate or substitute for a project specified in
Section 14556.40, for other than an intercity rail project, if the
specified project is delayed by environmental or other factors
external to the control of the lead applicant agency that are not
likely to be removed within a reasonable time, if sufficient matching
funds are not available to secure the designated state grant funds,
if the specified project is not included in or consistent with the
respective regional transportation plan, or if completion of the
specified project would jeopardize the completion of other projects
previously programmed in the State Transportation Improvement
Program.
   (2) An application for an alternative project shall be approved by
the commission if the application is submitted by the identified
lead applicant agency within the two-year period specified in
subdivision (a), the alternative project is designated to relieve
congestion consistent with this act, the alternate project is within
the jurisdiction of the lead applicant agency, and all other project
approval requirements are met.
   14556.13.  (a) The project applications shall define the project
purpose, intended scope, proposed cost, intended funding sources, and
schedule for project completion.  Each application shall also
specify the paragraph number of subdivision (a) of Section 14556.40
that authorizes the project, and identify the agency responsible for
carrying out the work, to which the commission will allocate funds.
   (b) Except as authorized under subdivision (c), the project
application shall specify the scope of work, the cost, and the
schedule for the following separate phases of work, as appropriate:
   (1) Studies, environmental review, and permits.
   (2) Preparation of project plans and specifications.
   (3) Right-of-way acquisition.
   (4) Construction or procurement.
   (c) Some projects may be permitted to include scope of work on
less than all of the phases specified in subdivisions (b).
   (d) In accordance with guidelines established by the commission,
each application shall include a plan describing all capital funds
required for the project, the sources and the timing for those funds,
and how those funds will be used.  An application may seek funding
for a single phase of a project.
   (e) Applications for projects involving regional improvement
program funds shall be cosigned by the regional transportation
planning agency responsible for the regional transportation
improvement program.  Applications for projects involving
interregional improvement program funds or where the state is the
owner-operator shall be cosigned by the department.
   (f) The plan shall identify the sources and timing of all funds
required to undertake and complete any phase of a project for which
the applicant seeks an allocation of funds from the commission.  The
plan should also describe intended sources and timing of funds to
complete any subsequent phases of the project, through construction.

   14556.14.  The commission shall ascertain from the appropriate
regional transportation planning agency that a project is included
in, or is consistent with, the appropriate regional transportation
plan before approving a project application involving right-of-way or
construction phases.  A project that involves only studies or
project development phases is not required to be included in a
regional transportation plan, unless federal funds will also be used
to fund the project.
   14556.16.  (a) The commission, with the assistance of the
department, shall begin review of a project application within 30
days of receipt of the application.
   (b) The commission shall either approve or deny a project
application within 90 days of the receipt of the application, unless
the commission requests additional information from the applicant, in
which case the 90-day time to approve or deny the application shall
begin on the date that the commission receives the additional
information requested.
   (c) The commission shall state specific reasons for denying an
application.  The commission shall allow the applicant to amend and
resubmit an application that has been denied.  The commission shall
then have 90 days from receipt of the amended application to
reconsider the denial.
   (d) The commission shall not deny an application that meets the
requirements of this chapter, including the guidelines adopted by the
commission for this chapter and any other applicable statutes and
regulations.  The commission shall not unreasonably delay approval of
an application that substantially conforms to these requirements if
the applicant agrees to allow modifications to the application to
meet the commission's conditions for approval.
   14556.18.  (a) Commission approval of a project application
establishes the time schedule, by fiscal year, for implementation of
the phases of a project.  Project approval shall be deemed rescinded
if the lead applicant agency or the agency responsible for carrying
out the project does not seek an allocation from the commission and
start the first phase of work during the fiscal year scheduled.
   (b) If the first phase is not completed as scheduled, so that work
on subsequent phases is delayed, the agency responsible for carrying
out the project shall report the reasons for failure to complete the
project to the commission.  The commission may then reconsider the
project application, ask for modification of the schedule and any
other requirements of the application, and may, at its discretion,
extend the time of reconsideration until environmental studies,
review, and approval of final environmental documents has been
completed.
   14556.20.  (a) The commission shall direct the department to
allocate funds to the department, regional transportation planning
agencies, local transportation commissions, congestion management
agencies, transportation authorities, cities,
                    counties, a city and county, joint powers
authorities, ports, and transit districts for projects specified in
Article 5 (commencing with Section 14556.40).
   (b) Funds allocated as directed by the commission shall be
expended only for studies or the phases of project work specified in
Article 5 (commencing with Section 14556.40).
   (c) Allocations shall be made to specified phases of a project and
may include more than one phase in a given allocation.  The
commission shall, at the time the first allocation is made to a
project, indicate how it intends to spread the total funding
authorized for the project among the phases, but that indication
shall not be binding for future phases if the commission finds that a
different level of funding for a later phase would help ensure
quicker delivery of the project for construction.
   (d) Consistent with Article 5 (commencing with Section 14556.40),
these funds may be used to satisfy any federal, state, or local
matching fund requirement for the project to be funded.
   (e) The allocation shall specify the percentage rate of
reimbursement for expenditures for each phase of the project,
considering the funding shares from various sources that comprise the
full funding of each phase.  The commission may specify different
rates of reimbursement for different phases, and shall determine the
spread of funding specified in Article 5 (commencing with Section
14556.40) across all the phases of work, as appropriate for the
project.
   (f) The commission may approve minor changes to project scope,
cost, or schedule, so long as those modifications fall within the
project purpose specified in the project application.
   (g) The commission may consider applications under this section
upon adoption of implementing guidelines.

      Article 4.  Administration and Expenditure of Funds

   14556.25.  (a) The department shall execute a cooperative
agreement with the lead applicant agency or the agency responsible
for carrying out the work for reimbursement of approved project
expenditures, using funds allocated by the commission for that
purpose and project phase.  To reduce time and financial burden on
lead applicant agencies, the department shall use electronic
reimbursement procedures to the extent prudent and practical.
   (b) The cooperative agreement shall specify how additional costs
are to be covered, if necessary, and how savings are to be used or
distributed, if available, among all the various funding sources
being used for the project.
   14556.26.  A regional or local agency receiving an allocation from
this program shall certify, by resolution of its governing board,
before final execution of the cooperative agreement, that it will
sustain its level of expenditures for transportation purposes at a
level that is consistent with the level for 1999-2000 fiscal year,
including funds reserved for transportation purposes, during the
fiscal years that the allocation provided under this chapter is
available for use.  The certification is subject to audit by the
state.
   14556.28.  (a) For applicants other than the department, funds
allocated shall generally be administered as a reimbursement program.
  At the request of an applicant, the commission shall authorize an
advance payment for project development work necessary for a project
specified in Article 5 (commencing with Section 14556.40).  At the
request of an applicant, the commission may authorize an advance
payment for demonstrated need, or for a project right-of-way,
construction, or procurement phase.
   (b) Project costs incurred prior to commission approval of a
project application may not be reimbursed.  Project costs incurred
prior to commission allocation of funds, but after commission
approval of a project application, may be reimbursed retroactively
after allocation.
   14556.30.  (a) After receiving an allocation, the lead applicant
shall make diligent and timely progress toward completing the work as
described in the submitted application.  If timely progress is not
achieved, the commission may review the status of the project.  If
the commission finds the lead applicant agency is not pursuing
project work diligently, including use of funds under the agency's
control committed to the project, the commission may reallocate those
funds to another project or projects listed in Article 5 (commencing
with Section 14556.40).
   (b) If the commission and a lead applicant agency concur that a
project is delayed by factors external to the control of the lead
applicant agency and the factors are not likely to be removed within
a reasonable time, the lead applicant agency may submit an
application for an alternate or substitute project if the alternate
project is designed to relieve congestion consistent with this act,
is within the jurisdiction of the lead applicant agency, and meets
all other project approval requirements.
   (c) Notwithstanding Section 16304, funds allocated from the fund
shall be available for encumbrance for three years after the date of
allocation, and encumbered funds shall be available for liquidation
for two additional years, unless the time limit is extended by an act
of the Legislature.  Any funds not expended by that time-limit shall
revert to the fund.
   14556.32.  (a) The rate of reimbursement of expenditures shall not
exceed the rate determined by the commission in its allocation of
funds.
   (b) After notifying the commission of savings in any phase, the
lead applicant may use those savings for expenditures on a later
phase of the same project.
   (c) If additional funds are needed to complete a project, the lead
applicant agency shall be responsible for securing the funding
needed from other sources outside this program.  The commission may
not increase the allocation from this program beyond the amount
specified for the project in Article 5 (commencing with Section
14556.40) unless the Governor and the Legislature subsequently
designate a higher amount for the project.
   (d) If a project can be completed at a lower cost than expected,
any savings shall be divided among all funding sources contributing
to the project in the proportion each of the funding sources bears to
the total funding for the project as defined in the approved project
application.  For the savings that revert to this program, the
commission shall determine the amount to be returned to the fund.
   (e) If a determination is made to cease funding for a project,
funds allocated but not expended on any phase shall be returned to
the fund.
   14556.34.  Any agency or combination of agencies that succeed to
an agency having any rights, powers, duties, or obligations under
this chapter, including, but not limited to, eligibility to apply
for, receive, and expend a grant allocation, shall fully succeed to
those rights, powers, duties, and obligations.
   14556.36.  The commission shall report annually, starting no later
than February 2001, to the Governor and the Legislature on progress
in implementation of the program.  The report shall assess
programwide implementation progress, and identify project schedules
and delays, project failures, cost savings, and any opportunities for
the specification of additional or alternative projects for funding.
  The commission report may also discuss any significant issues
associated with implementation of the program, and recommend changes
that could improve implementation.

      Article 5.  Eligible Projects

   14556.40.  (a) The following projects are eligible for grants from
the fund for the purposes and amounts specified:
   (1) BART to San Jose; extend BART from Fremont to Downtown San
Jose in Santa Clara and Alameda Counties.  Seven hundred twenty-five
million dollars ($725,000,000).  The lead applicant is the Bay Area
Rapid Transit District.
   (2) Fremont-South Bay Commuter Rail; acquire rail line and start
commuter rail service between Fremont and San Jose in Santa Clara and
Alameda Counties.  Thirty-five million dollars ($35,000,000).  The
lead applicant is the Santa Clara Valley Transportation Authority.
   (3) Route 101; widen freeway from four to eight lanes south of San
Jose, Bemal Road to Burnett Avenue in Santa Clara County.
Twenty-five million dollars ($25,000,000).  The lead applicant is the
department or the Santa Clara Valley Transportation Authority.
   (4) Route 680; add northbound HOV lane over Sunol Grade, Milpitas
to Route 84 in Santa Clara and Alameda Counties.  Sixty million
dollars ($60,000,000).  The lead applicant is the department or the
Alameda County Congestion Management Agency.
   (5) Route 101; add northbound lane to freeway through San Jose,
Route 87 to Trimble Road in Santa Clara County.  Five million dollars
($5,000,000).  The lead applicant is the department or the Santa
Clara Valley Transportation Authority.
   (6) Route 262; major investment study for cross connector freeway,
Route 680 to Route 880 near Warm Springs in Santa Clara County.  One
million dollars ($1,000,000).  The lead applicant is the department
or the Metropolitan Transportation Commission.
   (7) CalTrain; expand service to Gilroy; improve parking, stations,
and platforms along UPRR line in Santa Clara County.  Fifty-five
million dollars ($55,000,000).  The lead applicant is Santa Clara
Valley Transportation Authority.
   (8) Route 880; reconstruct Coleman Avenue Interchange near San
Jose Airport in Santa Clara County.  Five million dollars
($5,000,000).  The lead applicant is the department or the Santa
Clara Valley Transportation Authority.
   (9) Capitol Corridor; improve intercity rail line between Oakland
and San Jose, and at Jack London Square and Emeryville stations in
Alameda and Santa Clara Counties.  Twenty-five million dollars
($25,000,000).  The lead applicant is the department or the Capitol
Corridor Joint Powers Authority.
   (10) Regional Express Bus; acquire low-emission buses for new
express service on HOV lanes regionwide.  In nine counties.  Forty
million dollars ($40,000,000).  The lead applicant is the
Metropolitan Transportation Commission.
   (11) San Francisco Bay Southern Crossing; complete feasibility and
financial studies for new San Francisco Bay crossing (new bridge,
HOV/Transit bridge or second BART tube) in Alameda and San Francisco
or San Mateo Counties.  Five million dollars ($5,000,000).  The lead
applicant is the department or the Metropolitan Transportation
Commission.
   (12) Bay Area Transit Connectivity; complete studies of, and fund
related improvements for, the I-580 Livermore Corridor; West Contra
Costa County and Route 4 Corridors in Alameda and Contra Costa
Counties.  Seventeen million dollars ($17,000,000).  The lead
applicant for the I-580 study is the Alameda County Congestion
Management Agency; and the Contra Costa Transportation Authority is
the lead applicant for the West Contra Costa and Route 4 studies.
   (13) CalTrain Peninsula Corridor; acquire rolling stock, add
passing tracks, and construct pedestrian access structure at stations
between San Francisco and San Jose in San Francisco, San Mateo, and
Santa Clara Counties.  One hundred twenty-seven million dollars
($127,000,000).  The lead applicant is the Peninsula Joint Powers
Board.
   (14) CalTrain; extension to Salinas in Monterey County.  Twenty
million dollars ($20,000,000).  The lead applicant is the
Transportation Agency for Monterey County.
   (15) Route 24; Caldecott Tunnel; add fourth bore tunnel with
additional lanes in Alameda and Contra Costa Counties.  Twenty
million dollars ($20,000,000).  The lead applicant is the department
or the Metropolitan Transportation Commission.
   (16) Route 4; construct one or more phases of improvements to
widen freeway to eight lanes from Railroad through Loveridge Road,
including two high-occupany vehicle lanes, and to six or more lanes
from east of Loveridge Road through Hillcrest.  Thirty-nine million
dollars ($39,000,000).  The lead applicant is the Contra Costa
Transportation Authority.
   (17) Route 101; add reversible HOV lane through San Rafael, Sir
Francis Drake Boulevard to North San Pedro Road in Marin County.
Fifteen million dollars ($15,000,000).  The lead applicant is the
department or the Marin Congestion Management Agency.
   (18) Route 101; widen eight miles of freeway to six lanes, Novato
to Petaluma (Novato Narrows) in Marin and Sonoma Counties.
Twenty-one million dollars ($21,000,000).  The lead applicant is the
department or the Sonoma County Transportation Authority.
   (19) Bay Area Water Transit Authority; establish a regional water
transit system beginning with Treasure Island in the City and County
of San Francisco.  Two million dollars ($2,000,000).  The lead
applicant is the Bay Area Water Transit Authority.
   (20) San Francisco Muni Third Street Light Rail; extend Third
Street line to Chinatown (tunnel) in the City and County of San
Francisco.  One hundred forty million dollars ($140,000,000).  The
lead applicant is the Municipal Transportation Agency.
   (21) San Francisco Muni Ocean Avenue Light Rail; reconstruct Ocean
Avenue light rail line to Route 1 near California State University,
San Francisco, in the City and County of San Francisco.  Seven
million dollars ($7,000,000).  The lead applicant is the Municipal
Transportation Agency.
   (22) Route 101; environmental study for reconstruction of Doyle
Drive, from Lombard St./Richardson Avenue to Route 1 Interchange in
City and County of San Francisco.  Fifteen million dollars
($15,000,000).  The lead applicant is the department or the San
Francisco County Transportation Authority.
   (23) CalTrain Peninsula Corridor; complete grade separations at
Poplar Avenue in (Burlingame), 25th Avenue (San Mateo), and Linden
Avenue (South San Francisco) in San Mateo County.  Fifteen million
dollars ($15,000,000).  The lead applicant is the San Mateo County
Transportation Authority.
   (24) Vallejo Baylink Ferry; acquire low-emission ferryboats to
expand Baylink Vallejo-San Francisco service in Solano County.  Five
million dollars ($5,000,000).  The lead applicant is the City of
Vallejo.
   (25) I-80/I-680/Route 12 Interchange in Fairfield in Solano
County; 12 interchange complex in seven stages (Stage 1).  Thirteen
million dollars ($13,000,000).  The lead applicant is the department
or the Solano Transportation Authority.
   (26) ACE Commuter Rail; add siding on UPRR line in Livermore
Valley in Alameda County.  One million dollars ($1,000,000).  The
lead applicant is the San Joaquin Regional Rail Authority.
   (27) Vasco Road Safety and Transit Enhancement Project in Alameda
and Contra Costa Counties.  Eleven million dollars ($11,000,000).
The lead applicant is Alameda County Congestion Management Authority.

   (28) Parking Structure at Transit Village at Richmond BART Station
in Contra Costa County.  Five million dollars ($5,000,000).  The
lead applicant is the Bay Area Rapid Transit District.
   (29) AC Transit; buy two fuel cell buses and fueling facility for
demonstration project in Alameda and Contra Costa Counties.  Eight
million dollars ($8,000,000).  The lead applicant is the Alameda
Contra Costa Transit District.
   (30) Implementation of commuter rail passenger service from
Cloverdale south to San Rafael and Larkspur in Marin and Sonoma
Counties.  Thirty-seven million dollars ($37,000,000).  The lead
applicant is the Sonoma-Marin Area Transit Authority.
   (31) Route 580; construct eastbound and westbound HOV lanes from
Tassajara Road/Santa Rita Road to Vasco Road in Alameda County.
Twenty-five million dollars ($25,000,000).  The lead applicant is the
department or the Alameda County Congestion Management Authority.
   (32) North Coast Railroad; repair and upgrade track to meet Class
II (freight) standards in Napa and Humboldt Counties.  Sixty million
dollars ($60,000,000).  The lead applicant is North Coast Rail
Authority.
   (33) Bus Transit; acquire low-emission buses for Los Angeles
County MTA bus transit service.  One hundred fifty million dollars
($150,000,000).  The lead applicant is the Los Angeles County
Metropolitan Transportation Authority.
   (34) Blue Line to Los Angeles; new rail line Pasadena to Los
Angeles in Los Angeles County.  Forty million dollars ($40,000,000).
The lead applicant is the Pasadena Metro Blue Line Construction
Authority.
   (35) Pacific Surfliner; triple track intercity rail line within
Los Angeles County and add run-through-tracks through Los Angeles
Union Station in Los Angeles County.  One hundred million dollars
($100,000,000).  The lead applicant is the department.
   (36) Los Angeles Eastside Transit Extension; build new light rail
line in East Los Angeles, from Union Station to Atlantic via 1st
Street to Lorena in Los Angeles County.  Two hundred thirty-six
million dollars ($236,000,000).  The lead applicant is the Los
Angeles County Metropolitan Transportation Authority.
   (37) Los Angeles Mid-City Transit Improvements; build Bus Rapid
Transit system or Light Rail Transit in Mid-City/Westside/Exposition
Corridors in Los Angeles County.  Two hundred fifty-six million
dollars ($256,000,000).  The lead applicant is the Los Angeles County
Metropolitan Transportation Authority.
   (38) Los Angeles-San Fernando Valley Transit Extension; (A) build
an East-West Bus Rapid Transit system in the Burbank-Chandler
corridor, from North Hollywood to Warner Center.  One hundred
forty-five million dollars ($145,000,000).  (B) Build a North-South
corridor bus transit project that interfaces with the foregoing
East-West Burbank-Chandler corridor project and with the Ventura
Boulevard Rapid Bus project.  One hundred million dollars
($100,000,000).  The lead applicant for both extension projects is
the Los Angeles County Metropolitan Transportation Authority.
   (39) Route 405; add northbound HOV lane over Sepulveda Pass, Route
10 to Route 101 in Los Angeles County.  Ninety million dollars
($90,000,000).  The lead applicant is the department or the Los
Angeles County Metropolitan Transportation Authority.
   (40) Route 10; add HOV lanes on San Bernardino Freeway over
Kellogg Hill, near Pomona, Route 605 to Route 57 in Los Angeles
County.  Ninety million dollars ($90,000,000).  The lead applicant is
the department or the Los Angeles County Metropolitan Transportation
Authority.
   (41) Route 5; add HOV lanes on Golden State Freeway through San
Fernando Valley, Route 170 (Hollywood Freeway) to Route 14 (Antelope
Valley Freeway) in Los Angeles County.  Fifty million dollars
($50,000,000).  The lead applicant is the department or the Los
Angeles County Metropolitan Transportation Authority.
   (42) Route 5; widen Santa Ana Freeway to 10 lanes (two HOV + two
mixed flow), Orange County line to Route 710, with related major
arterial improvements, in Los Angeles County.  One hundred
twenty-five million dollars ($125,000,000).  The lead applicant is
the department or the Los Angeles County Metropolitan Transportation
Authority.
   (43) Route 5; improve Carmenita Road Interchange in Norwalk in Los
Angeles County.  Seventy-one million dollars ($71,000,000).  The
lead applicant is the department or the Los Angeles County
Metropolitan Transportation Authority.
   (44) Route 47 (Terminal Island Freeway); construct interchange at
Ocean Boulevard Overpass in the City of Long Beach in Los Angeles
County.  Eighteen million four hundred thousand dollars
($18,400,000).  The lead applicant is the Port of Long Beach.
   (45) Route 710; complete Gateway Corridor Study, Los Angeles/Long
Beach ports to Route 5 in Los Angeles County.  Two million dollars
($2,000,000).  The lead applicant is the department.
   (46) Route 1; reconstruct intersection at Route 107 in Torrance in
Los Angeles County.  Two million dollars ($2,000,000).  The lead
applicant is the department or the Los Angeles County Metropolitan
Transportation Authority.
   (47) Route 101; California Street off-ramp in Ventura County.
Fifteen million dollars ($15,000,000).  The lead applicant is the
department or the Ventura County Transportation Commission.
   (48) Route 101; corridor analysis and PSR to improve corridor from
Route 170 (North Hollywood Freeway) to Route 23 in Thousand Oaks
(Ventura County) in Los Angeles and Ventura Counties.  Three million
dollars ($3,000,000).  The lead applicant is the department.
   (49) Hollywood Intermodal Transportation Center; intermodal
facility at Highland Avenue and Hawthorn Avenue in the City of Los
Angeles.  Ten million dollars ($10,000,000).  The lead applicant is
the City of Los Angeles.
   (50) Route 71; complete three miles of six-lane freeway through
Pomona, from Route 10 to Route 60 in Los Angeles County.  Thirty
million dollars ($30,000,000).  The lead applicant is the department
or the Los Angeles County Metropolitan Transportation Authority.
   (51) Route 101/405; add auxiliary lane and widen ramp through
freeway interchange in Sherman Oaks in Los Angeles County.
Twenty-one million dollars ($21,000,000).  The lead applicant is the
department or the Los Angeles County Metropolitan Transportation
Authority.
   (52) Route 405; add HOV and auxiliary lanes for 1 mile in West Los
Angeles, from Waterford Avenue to Route 10 in Los Angeles County.
Twenty-five million dollars ($25,000,000). The lead applicant is the
department or the Los Angeles County Metropolitan Transportation
Authority.
   (53) Automated Signal Corridors (ATSAC); improve 479 automated
signals in Victory/Ventura Corridor, and add 76 new automated signals
in Sepulveda Boulevard and Route 118 Corridors in Los Angeles
County.  Sixteen million dollars ($16,000,000).  The lead applicant
is the City of Los Angeles.
   (54) Alameda Corridor East; build grade separations on BNSF and
UPRR lines, downtown Los Angeles to Los Angeles County line in Los
Angeles County.  One hundred fifty million dollars ($150,000,000).
The lead applicant is the San Gabriel Valley Council of Governments.

   (55) Alameda Corridor East; build grade separations on UPRR line,
Los Angeles County line to Colton, with rail-to-rail separation at
Colton in San Bernardino County.  Ninety-five million dollars
($95,000,000).  The lead applicant is the San Bernadino Associated
Governments.
   (56) Metrolink; track and signal improvements on Metrolink; San
Bernardino line in San Bernardino County.  Fifteen million dollars
($15,000,000).  The lead applicant is the Southern California
Regional Rail Authority.
   (57) Route 215; add HOV lanes through downtown San Bernardino,
Route 10 to Route 30 in San Bernardino County.  Twenty-five million
dollars ($25,000,000).  The lead applicant is the department or the
San Bernardino County Transportation Commission.
   (58) Route 10; widen freeway to eight-lanes through Redlands,
Route 30 to Ford Street in San Bernardino County.  Ten million
dollars ($10,000,000).  The lead applicant is the department or the
San Bernardino County Transportation Commission.
   (59) Route 10; Live Oak Canyon Interchange in the City of Yucaipa
in San Bernardino County.  Eleven million dollars ($11,000,000).  The
lead applicant is the department or the San Bernardino County
Transportation Commission.
   (60) Route 15; southbound truck climbing lane at two locations in
San Bernardino County.  Ten million dollars ($10,000,000).  The lead
applicant is the department or the San Bernardino County
Transportation Commission.
   (61) Route 10; reconstruct Apache Trail Interchange east of
Banning in Riverside County.  Thirty million dollars ($30,000,000).
The lead applicant is the department or the Riverside County
Transportation Commission.
   (62) Route 91; add HOV lanes through downtown Riverside, Mary
Street to Route 60/215 junction in Riverside County.  Forty million
dollars ($40,000,000).  The lead applicant is the department or the
Riverside County Transportation Commission.
   (63) Route 60; add seven miles of HOV lanes west of Riverside,
Route 15 to Valley Way in Riverside County.  Twenty-five million
dollars ($25,000,000).  The lead applicant is the department or the
Riverside County Transportation Commission.
   (64) Route 91; improve the Green River Interchange and add
auxiliary lane and connector ramp east of the Green River Interchange
to northbound Route 71 in Riverside County.  Five million dollars
($5,000,000).  The lead applicant is the department or the Riverside
County Transportation Commission.
   (70) Route 22; add HOV lanes on Garden Grove Freeway, Route I-405
to Route 55 in Orange County.  Two hundred six million five hundred
thousand dollars ($206,500,000).  The lead applicant is the
department or the Orange County Transportation Authority.
   (73) Alameda Corridor East; (Orangethorpe Corridor) build grade
separations on BNSF line, Los Angeles County line through Santa Ana
Canyon in Orange County.  Twenty-eight million dollars ($28,000,000).
  The lead applicant is the Orange County Transportation Authority.
   (74) Pacific Surfliner; double track intercity rail line within
San Diego County, add maintenance yard in San Diego County.
Forty-seven million dollars ($47,000,000).  The lead applicant is the
department or North Coast Transit District.
   (75) San Diego Transit Buses; acquire about 85 low-emission buses
for San Diego transit service in San Diego County.  Thirty million
dollars ($30,000,000).  The lead applicant is the San Diego
Metropolitan Transit Development Board.
   (76) Coaster Commuter Rail; acquire one new train set to expand
commuter rail in San Diego County.  Fourteen million dollars
($14,000,000).  The lead applicant is North County Transit District.

   (77) Route 94; complete environmental studies to add capacity to
Route 94 corridor, downtown San Diego to Route 125 in Lemon Grove in
San Diego County.  Twenty million dollars ($20,000,000).  The lead
applicant is the department or San Diego Association of Governments.

   (78) East Village access; improve access to light rail from new
in-town East Village development in San Diego County.  Fifteen
million dollars ($15,000,000).  The lead applicant is the San Diego
Metropolitan Transit Development Board.
   (79) North County Light Rail; build new 20-mile light rail line
from Oceanside to Escondido in San Diego County.  Eighty million
dollars ($80,000,000).  The lead applicant is North County Transit
District.
   (80) Mid-Coast Light Rail; extend Old Town light rail line 6 miles
to Balboa Avenue in San Diego County.  Ten million dollars
($10,000,000).  The lead applicant is the San Diego Metropolitan
Transit Development Board.
   (81) San Diego Ferry; acquire low-emission high-speed ferryboat
for new off-coast service between San Diego and Oceanside in San
Diego County.  Five million dollars ($5,000,000).  The lead applicant
is the San Diego Association of Governments.
                                                             (82)
Routes 5/805; reconstruct and widen freeway interchange, Genesee
Avenue to Del Mar Heights Road in San Diego County.  Twenty-five
million dollars ($25,000,000).  The lead applicant is the department
or the San Diego Association of Governments.
   (83) Route 15; add high-tech managed lane on I-15 freeway north of
San Diego (Stage 1) from Route 163 to Route 78 in San Diego County.
Seventy million dollars ($70,000,000).  The lead applicant is the
department or the San Diego Association of Governments.
   (84) Route 52; build four miles of new six-lane freeway to Santee,
Mission Gorge to Route 67 in San Diego County.  Forty-five million
dollars ($45,000,000).  The lead applicant is the department or the
San Diego Association of Governments.
   (85) Route 56; construct approximately five miles of new freeway
alignment between I-5 and I-15 from Carmel Valley to Rancho
Penasquitos in the City of San Diego in San Diego County.
Twenty-five million dollars ($25,000,000).  The lead applicant is the
department or the San Diego Association of Governments.
   (86) Route 905; build new six-lane freeway on Otay Mesa, Route 805
to Mexico Port of Entry in San Diego County.  Twenty-five million
dollars ($25,000,000).  The lead applicant is the department or the
San Diego Association of Governments.
   (87) Routes 94/125; build two new freeway connector ramps at Route
94/125 in Lemon Grove in San Diego County.  Sixty million dollars
($60,000,000).  The lead applicant is the department or the San Diego
Association of Governments.
   (88) Route 5; realign freeway at Virginia Avenue, approaching San
Ysidro Port of Entry to Mexico in San Diego County.  Ten million
dollars ($10,000,000).  The lead applicant is the department or the
San Diego Association of Governments.
   (89) Route 99; improve Shaw Avenue Interchange in northern Fresno
in Fresno County.  Five million dollars ($5,000,000).  The lead
applicant is the department or the Council of Fresno County
Governments.
   (90) Route 99; widen freeway to six lanes, Kingsburg to Selma in
Fresno County.  Twenty million dollars ($20,000,000).  The lead
applicant is the department or the Council of Fresno County
Governments.
   (91) Route 180; build new expressway east of Clovis, Clovis Avenue
to Temperance Avenue in Fresno County.  Twenty million dollars
($20,000,000).  The lead applicant is the department or the Council
of Fresno County Governments.
   (92) San Joaquin Corridor; improve track and signals along San
Joaquin intercity rail line near Hanford in Kings County.  Ten
million dollars ($10,000,000).  The lead applicant is the department.

   (93) Route 180; complete environmental studies to extend Route 180
westward from Mendota to I-5 in Fresno County.  Seven million
dollars ($7,000,000).  The lead applicant is the department or the
Council of Fresno County Governments.
   (94) Route 43; widen to four-lane expressway from Kings County
line to Route 99 in Selma in Fresno County.  Five million dollars
($5,000,000).  The lead applicant is the department or the Council of
Fresno County Governments.
   (95) Route 41; add auxiliary lane/operational improvements and
improve ramps at Friant Road Interchange in Fresno in Fresno County.
Ten million dollars ($10,000,000).  The lead applicant is the
department or the Council of Fresno County Governments.
   (96) Friant Road; widen to four lanes from Copper Avenue to Road
206 in Fresno County.  Ten million dollars ($10,000,000).  The lead
applicant is the County of Fresno.
   (97) Operational improvements on Shaw Avenue, Chestnut Avenue,
Willow Avenue, and Barstow Avenue near California State University at
Fresno in Fresno County.  Ten million dollars ($10,000,000).  The
lead applicant is the Fresno County Transportation Authority.  Of the
amount authorized under this paragraph, the sum of two million
dollars ($2,000,000) shall be transferred to the California State
University at Fresno for the purposes of funding preliminary plans,
working drawings, or both of those, and related program management
costs for the Fresno Events Center.
   (98) Peach Avenue; widen to four-lane arterial and add pedestrian
overcrossings for three schools in Fresno County.  Ten million
dollars ($10,000,000).  The lead applicant is the City of Fresno.
   (99) San Joaquin Corridor; improve track and signals along San
Joaquin intercity rail line in seven counties.  Fifteen million
dollars ($15,000,000).  The lead applicant is the department.
   (100) San Joaquin Valley Emergency Clean Air Attainment Program;
incentives for the reduction of emissions from heavy-duty diesel
engines operating within the eight-county San Joaquin Valley region.
Twenty-five million dollars ($25,000,000).  The lead applicant is
the San Joaquin Valley Unified Air Pollution Control District.
   (101) Santa Cruz Metropolitan Transit District bus fleet;
acquisition of low-emission buses.  Three million dollars
($3,000,000).  The lead applicant is the Santa Cruz Metropolitan
Transit District.
   (102) Route 101 access; State Street smart corridor Advanced
Traffic Corridor System (ATSC) technology in Santa Barbara County.
One million three hundred thousand dollars ($1,300,000).  The lead
applicant is the City of Santa Barbara.
   (103) Route 99; improve interchange at Seventh Standard Road,
north of Bakersfield in Kern County.  Eight million dollars
($8,000,000).  The lead applicant is the department or Kern Council
of Governments.
   (104) Route 99; build seven miles of new six-lane freeway south of
Merced, Buchanan Hollow Road to Healey Road in Merced County.  Five
million dollars ($5,000,000).  The lead applicant is the department
or the Merced County Association of Governments.
   (105) Route 99; build two miles of new six-lane freeway, Madera
County line to Buchanan Hollow Road in Merced County.  Five million
dollars ($5,000,000).  The lead applicant is the department or the
Merced County Association of Governments.
   (106) UC Merced access; build new arterial Campus Parkway to new
UC Merced campus in Merced County. Twenty-three million dollars
($23,000,000).  The lead applicant is the County of Merced.
   (107) Route 205; widen freeway to six lanes, Tracy to I-5 in San
Joaquin County.  Twenty-five million dollars ($25,000,000).  The lead
applicant is the department or the San Joaquin Council of
Governments.
   (108) Route 5; add northbound lane to freeway through Mossdale "Y"
, Route 205 to Route 120 in San Joaquin County.  Seven million
dollars ($7,000,000).  The lead applicant is the department or the
San Joaquin Council of Governments.
   (109) Route 132; build four miles of new four-lane expressway in
Modesto from Dakota Avenue to Route 99 and improve Route 99
Interchange in Stanislaus County.  Twelve million dollars
($12,000,000).  The lead applicant is the department or the
Stanislaus Council of Governments.
   (110) Route 132; build 3.5 miles of new four-lane expressway from
Route 33 to the San Joaquin county line in Stanislaus and San Joaquin
Counties.  Two million dollars ($2,000,000).  The lead applicant is
the department or the Stanislaus Council of Governments.
   (111) Route 198; build 10 miles of new four-lane expressway from
Route 99 to Hanford in Kings and Tulare Counties.  Fourteen million
dollars ($14,000,000).  The lead applicant is the department or the
Kings County Association of Governments.
   (112) Jersey Avenue; widen from 170' Street to 18th Street in
Kings County.  One million five hundred thousand dollars
($1,500,000).  The lead applicant is Kings County.
   (113) Route 46; widen to four lanes for 33 miles from Route 5 to
San Luis Obispo County line in Kern County.  Thirty million dollars
($30,000,000).  The lead applicant is the department or the Kern
Council of Governments.
   (114) Route 65; add four passing lanes, intersection improvement,
and conduct environmental studies for ultimate widening to four lanes
from Route 99 in Bakersfield to Tulare County line in Kern County.
Twelve million dollars ($12,000,000).  The lead applicant is the
department or the Kern Council of Governments.
   (115) South Line Light Rail; extend South Line three miles towards
Elk Grove, from Meadowview Road to Calvine Road in Sacramento
County.  Seventy million dollars ($70,000,000).  The lead applicant
is the Sacramento Regional Transit District.
   (116) Route 80 Light Rail Corridor; double-track Route 80 light
rail line for express service in Sacramento County.  Twenty-five
million dollars ($25,000,000).  The lead applicant is the Sacramento
Regional Transit District.
   (117) Folsom Light Rail; extend Folsom light rail line six miles
to Iron Point Road and add three stations in Sacramento County.
Twenty million dollars ($20,000,000).  The lead applicant is the
Sacramento Regional Transit District.
   (118) Sacramento Emergency Clean Air/Transportation Plan (SECAT);
incentive for the reduction of emissions from heavy-duty diesel
engines operating within the Sacramento region.  Fifty million
dollars ($50,000,000).  The lead applicant is the Sacramento Area
Council of Governments.
   (119) Convert Sacramento Regional Transit bus fleet to low
emission; acquire approximately 50 replacement low-emission buses for
service in Sacramento and Yolo Counties.  Nineteen million dollars
($19,000,000).  The lead applicant is the Sacramento Area Council of
Governments and the Yolo Bus Authority.
   (120) Yuba Airport facility runway extension and improvements to
reduce congestion.  One million five hundred thousand dollars
($1,500,000).  The lead applicant is the County of Yuba.
   (121) Metropolitan Bakersfield System Study; to reduce congestion
in the City of Bakersfield.  Three hundred fifty thousand dollars
($350,000).  The lead applicant is the Kern County Council of
Governments.
   (122) Route 65; widening project from 7th Standard Road to Route
190 in Porterville.  Three million five hundred thousand dollars
($3,500,000). The lead applicant is the County of Tulare.
   (123) Oceanside Transit Center; parking structure.  One million
five hundred thousand dollars ($1,500,000). The lead applicant is the
City of Oceanside.
   (125) Route 57; environmental impact report and study for
expansion project. Five million dollars ($5,000,000). The lead
applicant is the Orange County Transportation Authority.
   (126) Route 50/Watt Avenue interchange; widening of overcrossing
and modifications to interchange.  Seven million dollars
($7,000,000). The lead applicant is the County of Sacramento.
   (127) Route 85/Route 87; interchange completion; addition of two
direct connectors for southbound Route 85 to northbound Route 87 and
southbound Route 87 to northbound Route 85.  Three million five
hundred thousand dollars ($3,500,000). The lead applicant is the City
of San Jose.
   (128) Airport Road; reconstruction and intersection improvement
project.  Three million dollars ($3,000,000). The lead applicant is
the County of Shasta.
   (129) Route 62; utility undergrounding project in right-of-way of
Route 62.  Three million two hundred thousand dollars ($3,200,000).
The lead applicant is the Town of Yucca Valley.
   (130) Route 22; connector and widening of interchange with I-405
to reduce congestion.  Three million five hundred thousand dollars
($3,500,000).  The lead applicant is the City of Garden Grove.
   (131) Bear Valley Road; closure project and Kasota Road, Route 18
frontage; redesign for safety purposes.  Eight hundred thousand
dollars ($800,000).  The lead applicant is the Town of Apple Valley.

   (132) Fairway Drive; grade separation at Union Pacific railroad
project in San Gabriel Valley.  Seven million dollars ($7,000,000).
The lead applicant is the County of Los Angeles.
   (133) Feasibility studies for grade separation projects for Union
Pacific Railroad at Elk Grove Boulevard and Bond Road.  One hundred
fifty thousand dollars ($150,000).  The lead applicant is the City of
Elk Grove.
   (134) Route 50/Sunrise Boulevard; interchange modifications.
Three million dollars ($3,000,000). The lead applicant is the County
of Sacramento.
   (135) Route 99/Sheldon Road; interchange project; reconstruction
and expansion.  Three million dollars ($3,000,000).  The lead
applicant is the County of Sacramento.
   (136) Avenue S; widening between Route 14 and Route 138.  Three
million five hundred thousand dollars ($3,500,000). The lead
applicant is the City of Palmdale.
   (137) Fox Field Industrial Corridor;  gateway improvements;
widening of Route 14/Avenue H overcrossing.  Five million five
hundred thousand dollars ($5,500,000). The lead applicant is the City
of Lancaster.
   (138) Cross Valley Rail; upgrade track from Visalia to Huron.
Seven million dollars ($7,000,000).  The lead applicant is the Cross
Valley Rail Corridor Joint Powers Authority.
   (139) Balboa Park BART Station; phase I expansion.  Six million
dollars ($6,000,000).  The lead applicant is the San Francisco Bay
Area Rapid Transit District.
   (140) City of Goshen; overpass for Route 99.  One million five
hundred thousand dollars ($1,500,000).  The lead applicant is the
department.
   (141) Union City; pedestrian bridge over Union Pacific rail lines.
  Two million dollars ($2,000,000).  The lead applicant is the City
of Union City.
   (142) West Hollywood; repair, maintenance, and mitigation of Santa
Monica Boulevard.  Three million five hundred thousand dollars
($3,500,000).  The lead applicant is the City of West Hollywood.
   (143) Capital Corridor; expand intercity rail service.  One
million nine hundred thousand dollars ($1,900,000).  The lead
applicant is the Capital Corridor Joint Powers Authority.
   (144) Seismic retrofit of the national landmark Golden Gate
Bridge.  Fifty million dollars ($50,000,000).  The lead applicant is
the Golden Gate Bridge, Highway and Transportation District.
   (145) Construction of a new siding in Sun Valley between Sheldon
Street and Sunland Boulevard.  Six million five hundred thousand
dollars ($6,500,000).  The lead applicant is the Southern California
Regional Rail Authority.
   (146) Construction of Palm Drive Interchange.  Ten million dollars
($10,000,000).  The lead applicant is the Coachella Valley
Association of Governments.
   (147) Project development work for the reconstruction of the
I-8/Imperial Avenue interchange.  Seven million dollars ($7,000,000).
  The lead applicant is the Imperial Valley Association of
Governments.
   (148) Route 98; widening of 8 miles between Route 111 and Route 7
from 2 lanes to 4 lanes.  Ten million dollars ($10,000,000).  The
lead applicant is the department.
   (149) Purchase of low-emission buses for express service on Route
17.  Three million seven hundred fifty thousand dollars ($3,750,000).
  The lead applicant is the Santa Cruz Metropolitan Transit District.

   (150) Renovation or rehabilitation of Santa Cruz Metro Center.
One million dollars ($1,000,000).  The lead applicant is the Santa
Cruz Metropolitan Transit District.
   (151) Purchase of 5 alternative fuel buses for the Pasadena Area
Rapid Transit System.  One million one hundred thousand dollars
($1,100,000).  The lead applicant is the Pasadena Area Rapid Transit
System.
   (152) Pasadena Blue Line transit-oriented mixed-use development.
One million five hundred thousand dollars ($1,500,000).  The lead
applicant is the Los Angeles County Metropolitan Transportation
Authority of the City of South Pasadena.
   (153) Pasadena Blue Line utility relocation.  Five hundred fifty
thousand dollars ($550,000).  The lead applicant is the City of South
Pasadena.
   (154) Route 135/I-5 interchange study.  One hundred thousand
dollars ($100,000).  The lead applicant is the department.
   (155) City of Chula Vista; (A) at its option, to acquire
right-of-way, build, and operate a 10-mile limited access toll
facility from San Miguel Road to Otay Mesa Road.  Eight million six
hundred thousand dollars ($8,600,000).  (B) Of the amount specified,
five hundred thousand dollars ($500,000) shall be immediately
available to the City of Chula Vista for the purpose of conducting a
due diligence review, including an independent appraisal of the
feasibility of acquisition by a public agency of the Route 125
franchise agreement authorized under Section 143 of the Streets and
Highways Code.  The lead applicant is the City of Chula Vista.
   (156) Seismic retrofit and core segment improvements for the Bay
Area Rapid Transit system.  Twenty million dollars ($20,000,000).
The lead applicant is the San Francisco Bay Area Rapid Transit
District.
   (157) Route 12;  Congestion relief improvements from Route 29 to
I-80 through Jamison Canyon.  Seven million dollars ($7,000,000).
The lead applicant is the department.
   (158) Remodel the intersection of Olympic Boulevard and Lemon
Street and install a new traffic signal.  Two million dollars
($2,000,000).  The lead applicant is the City of Los Angeles.
   (b) As used in this section "route" is a state highway route as
identified in Article 3 (commencing with Section 300) of Chapter 2 of
Division 1 of the Streets and Highways Code.

      Article 6.  Miscellaneous Provisions

   14556.50.  The grant authorized under paragraph (32) of
subdivision (a) of Section 14556.40 shall be allocated as follows:
   (a) (1) Two hundred fifty thousand dollars ($250,000) to defray
the administrative costs of the North Coast Railroad Authority,
allocated directly to the authority immediately upon enactment of the
Budget Act of 2000.
   (2) Two hundred fifty thousand dollars ($250,000) to defray the
administrative costs of the authority, allocated directly to the
authority within six months from the date of enactment of the Budget
Act of 2000.
   (3) Five hundred thousand dollars ($500,000) to defray the
administrative costs of the authority, allocated to the authority as
directed by the commission, within one year from the date of
enactment of the Budget Act of 2000, if the commission determines
that additional funding is needed by the authority for administrative
costs.
   (b) Six hundred thousand dollars ($600,000) to fund completion of
the authority's rail line from Lombard to Willits, allocated directly
to the authority immediately upon enactment of the Budget Act of
2000.
   (c) One million dollars ($1,000,000) to fund completion of the
authority's rail line from Willits to Arcata, allocated to the
authority as directed by the commission, within four months from the
date of enactment of the Budget Act of 2000.
   (d) Five million dollars ($5,000,000) to fund the upgrade of the
authority's rail line to Class II or III status, allocated to the
authority as directed by the commission.
   (e) Four million one hundred thousand dollars ($4,100,000) for
environmental remediation projects, allocated to the authority as
directed by the commission, within four months from the date of
enactment of the Budget Act of 2000.
   (f) Ten million dollars ($10,000,000) for the authority's debt
reduction, allocated to the authority as directed by the commission,
within four months from the date of enactment of the Budget Act of
2000.
   (g) One million eight hundred thousand dollars ($1,800,000) for
use by the authority as local match funds, allocated to the authority
as directed by the commission.
   (h) Five million five hundred thousand dollars ($5,500,000) to
fund repayment of the authority's federal loan obligations, allocated
to the authority as directed by the commission.
   (i) Thirty-one million dollars ($31,000,000) for long-term
stabilization projects, allocated to the authority as directed by the
commission.
   14556.52.  Before grants from the fund may be allocated to any of
the three Alameda Corridor East Projects identified in paragraphs
(54), (55), and (73) of subdivision (a) of Section 14556.40, a report
shall be completed and submitted to the commission within one year
of the operative date of this section.  The report shall be prepared
by a team consisting of the lead applicants for those projects.  The
report shall address regional mobility needs as well as regional,
state, and national economic impacts of the corridor.  The team shall
also evaluate and assess the technical merits, determine the phasing
and delivery schedule, and identify a financing strategy for the
proposed corridor improvements.  The commission shall allocate some
or all of the available funds to one or more of the lead applicants
for specific projects within the corridor that meet the requirements
under this chapter.
  SEC. 7.  Section 65080 of the Government Code is amended to read:
   65080.  (a) Each transportation planning agency designated under
Section 29532 or 29532.1 shall prepare and adopt a regional
transportation plan directed at achieving a coordinated and balanced
regional transportation system, including, but not limited to, mass
transportation, highway, railroad, maritime, bicycle, pedestrian,
goods movement, and aviation facilities and services.  The plan shall
be action-oriented and pragmatic, considering both the short-term
and long-term future, and shall present clear, concise policy
guidance to local and state officials.  The regional transportation
plan shall consider factors specified in Section 134 of Title 23 of
the United States Code.  Each transportation planning agency shall
consider and incorporate, as appropriate, the transportation plans of
cities, counties, districts, private organizations, and state and
federal agencies.
   (b) The regional transportation plan shall include all of the
following:
   (1) A policy element that describes the transportation issues in
the region, identifies and quantifies regional needs, and describes
the desired short-range and long-range transportation goals, and
pragmatic objective and policy statements.  The objective and policy
statements shall be consistent with the funding estimates of the
financial element.
   (2) An action element that describes the programs and actions
necessary to implement the plan and assigns implementation
responsibilities.  The action element may describe all projects
proposed for development during the 20-year life of the plan.
   The action element shall consider congestion management
programming activities carried out within the region.
   (3) A financial element that summarizes the cost of plan
implementation constrained by a realistic projection of available
revenues.  The financial element shall also contain recommendations
for allocation of funds.  A county transportation commission created
pursuant to Section 130000 of the Public Utilities Code shall be
responsible for recommending projects to be funded with regional
improvement funds, if the project is consistent with the regional
transportation plan.  The first five years of the financial element
shall be based on the five-year estimate of funds developed pursuant
to Section 14524.  The financial element may recommend the
development of specified new sources of revenue, consistent with the
policy element and action element.
   (c) Each transportation planning agency shall adopt and submit,
every three years beginning by September 1, 2001, an updated regional
transportation plan to the California Transportation Commission and
the Department of Transportation.  The plan shall be consistent with
federal planning and programming requirements.  A transportation
planning agency that does not contain an urbanized area may at its
option adopt and submit a regional transportation plan once every
four years beginning by September 1, 2001.  Prior to adoption of the
regional transportation plan, a public hearing shall be held, after
the giving of notice of the hearing by publication in the affected
county or counties pursuant to Section 6061.
  SEC. 8.  Section 65082 of the Government Code is amended to read:
   65082.  (a) (1) A five-year regional transportation improvement
program shall be prepared, adopted, and submitted to the California
Transportation Commission on or before December 15 of each
odd-numbered year thereafter, updated every two years, pursuant to
Sections 65080 and 65080.5 and the guidelines adopted pursuant to
Section 14530.1, to include regional transportation improvement
projects and programs proposed to be funded, in whole or in part, in
the state transportation improvement program.
   (2) Major projects shall include current costs updated as of
November 1 of the year of submittal and escalated to the appropriate
year, and be listed by relative priority, taking into account need,
delivery milestone dates, as defined in Section 14525.5, and the
availability of funding.
   (b) Except for those counties that do not prepare a congestion
management program pursuant to Section 65088.3, congestion management
programs adopted pursuant to Section 65089 shall be incorporated
into the regional transportation improvement program submitted to the
commission by December 15 of each odd-numbered year.
   (c) Local projects not included in a congestion management program
shall not be included in the regional transportation improvement
program.  Projects and programs adopted pursuant to subdivision (a)
shall be consistent with the capital improvement program adopted
pursuant to paragraph (5) of subdivision (b) of Section 65089, and
the guidelines adopted pursuant to Section 14530.1.
   (d) Other projects may be included in the regional transportation
improvement program if listed separately.
   (e) Unless a county not containing urbanized areas of over 50,000
population notifies the Department of Transportation by July 1 that
it intends to prepare a regional transportation improvement program
for that county, the department shall, in consultation with the
affected local agencies, prepare the program for all counties for
which it prepares a regional transportation plan.
   (f) The requirements for incorporating a congestion management
program into a regional transportation improvement program specified
in this section do not apply in those counties that do not prepare a
congestion management program in accordance with Section 65088.3.
   (g) The regional transportation improvement program may include a
reserve of county shares for providing funds in order to match
federal funds.
  SEC. 9.  Section 65083 of the Government Code is amended to read:
   65083.  As part of implementation of the demonstration program
established pursuant to Section 14045 of the Government Code, the
regional transportation planning agency preparing the five-year
regional transportation improvement program pursuant to Section 65082
shall consider those exclusive mass transit guideway projects where
the applicant and the local entity responsible for land use decisions
have entered into a binding agreement to promote high density
                                          residential development
within one-half mile of a mass transit guideway station.  Any project
selected by the agency that is located in a demonstration site shall
be considered for inclusion in the regional transportation
improvement program.  This section shall not preclude the agency from
applying the criteria for making awards that may be required or
permitted pursuant to other provisions of law.
  SEC. 10.  Section 7102 of the Revenue and Taxation Code is amended
to read:
   7102.  The money in the fund shall, upon order of the Controller,
be drawn therefrom for refunds under this part, credits or refunds
pursuant to Section 60202, and refunds pursuant to Section 1793.25 of
the Civil Code, or be transferred in the following manner:
   (a) (1) All revenues, less refunds, derived under this part at the
43/4-percent rate, including the imposition of sales and use taxes
with respect to the sale, storage, use, or other consumption of motor
vehicle fuel which would not have been received if the sales and use
tax rate had been 5 percent and if motor vehicle fuel, as defined
for purposes of the Motor Vehicle Fuel License Tax Law (Part 2
(commencing with Section 7301)), had been exempt from sales and use
taxes, shall be estimated by the State Board of Equalization, with
the concurrence of the Department of Finance, and shall be
transferred quarterly to the Transportation Planning and Development
Account, a trust fund in the State Transportation Fund.
   (2) All revenues, less refunds, derived under this part at the
43/4-percent rate, resulting from increasing after December 31, 1989,
the rate of tax imposed pursuant to the Motor Vehicle Fuel License
Tax Law on motor vehicle fuel, as defined for purposes of that law,
shall be transferred quarterly to the Transportation Planning and
Development Account, a trust fund in the State Transportation Fund.
   (3) All revenues, less refunds, derived under this part at the
43/4-percent rate from the imposition of sales and use taxes on fuel,
as defined for purposes of the Use Fuel Tax Law (Part 3 (commencing
with Section 8601)) and the Diesel Fuel Tax Law (Part 31 (commencing
with Section 60001)), shall be estimated by the State Board of
Equalization, with the concurrence of the Department of Finance, and
shall be transferred quarterly to the Transportation Planning and
Development Account, a trust fund in the State Transportation Fund.
   (4) All revenues, less refunds, derived under this part from a
rate of more than 43/4 percent pursuant to Sections 6051.1 and 6201.1
for the period December 1, 1989, to June 5, 1990, inclusive, shall
be transferred to the Disaster Relief Fund created by Section 16419
of the Government Code.
   (5) All revenues, less refunds, derived under this part from a
rate of more than 43/4 percent pursuant to Sections 6051.1 and 6201.1
for the period June 6, 1990, to December 31, 1990, inclusive, which
is attributable to the imposition of sales and use taxes with respect
to the sale, storage, use, or other consumption of tangible personal
property other than fuel, as defined for purposes of the Use Fuel
Tax Law (Part 3 (commencing with Section 8601)), shall be transferred
to the Disaster Relief Fund created by Section 16419 of the
Government Code.
   (6) All revenues, less refunds, derived under this part from a
rate of more than 43/4 percent pursuant to Sections 6051.1 and 6201.1
for the period June 6, 1990, to December 31, 1990, inclusive, which
is attributable to the imposition of sales and use taxes with respect
to the sale, storage, use, or other consumption of fuel, as defined
for purposes of the Use Fuel Tax Law (Part 3 (commencing with Section
8601)), shall be transferred to the Disaster Relief Fund created by
Section 16419 of the Government Code.
   (7) All revenues, less refunds, derived under this part from the
taxes imposed pursuant to Sections 6051.2 and 6201.2 shall be
transferred to the Sales Tax Account of the Local Revenue Fund for
allocation to cities and counties as prescribed by statute.
   (8) All revenues, less refunds, derived under this part from the
taxes imposed pursuant to Sections 6051.6 and 6201.6 shall be
transferred to the Interim Public Safety Account in the Local Public
Safety Fund created in Section 30051 of the Government Code for
allocation to counties as prescribed by statute.
   (9) All revenues, less refunds, derived from the taxes imposed
pursuant to Section 35 of Article XIII of the California Constitution
shall be transferred to the Public Safety Account in the Local
Public Safety Fund created in Section 30051 of the Government Code
for allocation to counties as prescribed by statute.
   (10) An amount equal to all revenues, less refunds, derived under
this part at a 43/4-percent rate for the period between January 1,
1994, and July 1, 1994, from the increase in sales and use tax
revenue attributable to the increase in the rate of the federal motor
vehicle fuel tax between January 1, 1993, and the rate in effect on
January 1, 1994, shall be estimated by the State Board of
Equalization, with the concurrence of the Department of Finance, and
an amount equal to that amount, but not exceeding seven million five
hundred thousand dollars ($7,500,000) shall be transferred from the
Retail Sales Tax Fund to the Small Business Expansion Fund created by
Article 5 (commencing with Section 14030) of Chapter 1 of Part 5 of
Division 3 of Title 1 of the Corporations Code.
   (11) All revenues, less refunds, derived under this part at the
5-percent rate, resulting from the rate of tax imposed pursuant to
the Motor Vehicle Fuel License Tax Law (Part 2 (commencing with
Section 7301)) on motor vehicle fuel, less the amount transferred
pursuant to paragraph (2) of subdivision (a), shall be transferred
quarterly to the Traffic Congestion Relief Fund.
   (12) All revenue, less refunds, derived under this part at the
5-percent rate, resulting from the rate of federal motor vehicle fuel
tax imposed pursuant to Section 4081 of Title 26 of the Internal
Revenue Code, shall be transferred quarterly to the Traffic
Congestion Relief Fund.
   (13) All revenue, less refunds, derived under this part at the
5-percent rate, with respect to the sale, storage, use, or other
consumption of motor vehicle fuel, as defined for purposes of the
Motor Vehicle Fuel License Tax Law (Part 2 (commencing with Section
7301)), other than that transferred pursuant to paragraph (1), (2),
(11), or (12) of subdivision (a), shall be transferred quarterly to
the Traffic Congestion Relief Fund.  In no event shall the transfer
to the Traffic Congestion Relief Fund pursuant to paragraph (11),
(12), and (13) of subdivision (a) of this section, exceed one hundred
twenty-five million dollars ($125,000,000) in any quarter.
   (b) The balance shall be transferred to the General Fund.
   (c) The estimates required by subdivision (a) shall be based on
taxable transactions occurring during a calendar year, and the
transfers required by subdivision (a) shall be made during the fiscal
year that commences during that same calendar year.  Transfers
required by paragraphs (1), (2), (3), (11), (12), and (13) of
subdivision (a) shall be estimated by the State Board of
Equalization, with the concurrence of the Department of Finance, and
shall be made quarterly.
   (d) Notwithstanding the designation of the Transportation Planning
and Development Account as a trust fund pursuant to subdivision (a),
the Controller may use the Transportation Planning and Development
Account for loans to the General Fund as provided in Sections 16310
and 16381 of the Government Code.  The loans shall be repaid with
interest from the General Fund at the Pooled Money Investment Account
rate.
   (e) The Legislature may amend this section, by statute passed in
each house of the Legislature by rollcall vote entered in the
journal, two-thirds of the membership concurring, if the statute is
consistent with, and furthers the purposes of this section.
   (f) The transfers authorized by paragraphs (11), (12), and (13) of
subdivision (a) shall be operative for the 2000-01 fiscal year only.

   (g) This section shall remain in effect only until June 30, 2001,
and as of that date is repealed, unless a later enacted statute that
is enacted before June 30, 2001, deletes or extends that date.
  SEC. 11.  Section 7102 is added to the Revenue and Taxation Code,
to read:
   7102.  The money in the fund shall, upon order of the Controller,
be drawn therefrom for refunds under this part, credits or refunds
pursuant to Section 60202, and refunds pursuant to Section 1793.25 of
the Civil Code, or be transferred in the following manner:
   (a) (1) All revenues, less refunds, derived under this part at the
43/4-percent rate, including the imposition of sales and use taxes
with respect to the sale, storage, use, or other consumption of motor
vehicle fuel which would not have been received if the sales and use
tax rate had been 5 percent and if motor vehicle fuel, as defined
for purposes of the Motor Vehicle Fuel License Tax Law (Part 2
(commencing with Section 7301)), had been exempt from sales and use
taxes, shall be estimated by the State Board of Equalization, with
the concurrence of the Department of Finance, and shall be
transferred quarterly to the Transportation Planning and Development
Account, a trust fund in the State Transportation Fund.
   (2) All revenues, less refunds, derived under this part at the
43/4-percent rate, resulting from increasing, after December 31,
1989, the rate of tax imposed pursuant to the Motor Vehicle Fuel
License Tax Law on motor vehicle fuel, as defined for purposes of
that law, shall be transferred quarterly to the Transportation
Planning and Development Account, a trust fund in the State
Transportation Fund.
   (3) All revenues, less refunds, derived under this part at the
43/4-percent rate from the imposition of sales and use taxes on fuel,
as defined for purposes of the Use Fuel Tax Law (Part 3 (commencing
with Section 8601)) and the Diesel Fuel Tax Law (Part 31 (commencing
with Section 60001)), shall be estimated by the State Board of
Equalization, with the concurrence of the Department of Finance, and
shall be transferred quarterly to the Transportation Planning and
Development Account, a trust fund in the State Transportation Fund.
   (4) All revenues, less refunds, derived under this part from a
rate of more than 43/4 percent pursuant to Sections 6051.1 and 6201.1
for the period December 1, 1989, to June 5, 1990, inclusive, shall
be transferred to the Disaster Relief Fund created by Section 16419
of the Government Code.
   (5) All revenues, less refunds, derived under this part from a
rate of more than 43/4 percent pursuant to Sections 6051.1 and 6201.1
for the period June 6, 1990, to December 31, 1990, inclusive, which
is attributable to the imposition of sales and use taxes with respect
to the sale, storage, use, or other consumption of tangible personal
property other than fuel, as defined for purposes of the Use Fuel
Tax Law (Part 3 (commencing with Section 8601)), shall be transferred
to the Disaster Relief Fund created by Section 16419 of the
Government Code.
   (6) All revenues, less refunds, derived under this part from a
rate of more than 43/4 percent pursuant to Sections 6051.1 and 6201.1
for the period June 6, 1990, to December 31, 1990, inclusive, which
is attributable to the imposition of sales and use taxes with respect
to the sale, storage, use, or other consumption of fuel, as defined
for purposes of the Use Fuel Tax Law (Part 3 (commencing with Section
8601)), shall be transferred to the Disaster Relief Fund created by
Section 16419 of the Government Code.
   (7) All revenues, less refunds, derived under this part from the
taxes imposed pursuant to Sections 6051.2 and 6201.2 shall be
transferred to the Sales Tax Account of the Local Revenue Fund for
allocation to cities and counties as prescribed by statute.
   (8) All revenues, less refunds, derived under this part from the
taxes imposed pursuant to Sections 6051.6 and 6201.6 shall be
transferred to the Interim Public Safety Account in the Local Public
Safety Fund created in Section 30051 of the Government Code for
allocation to counties as prescribed by statute.
   (9) All revenues, less refunds, derived from the taxes imposed
pursuant to Section 35 of Article XIII of the California Constitution
shall be transferred to the Public Safety Account in the Local
Public Safety Fund created in Section 30051 of the Government Code
for allocation to counties as prescribed by statute.
   (10) An amount equal to all revenues, less refunds, derived under
this part at a 43/4 percent rate for the period between January 1,
1994, and July 1, 1994, from the increase in sales and use tax
revenue attributable to the increase in the rate of the federal motor
vehicle fuel tax between January 1, 1993, and the rate in effect on
January 1, 1994, shall be estimated by the State Board of
Equalization, with the concurrence of the Department of Finance, and
an amount equal to that amount, but not exceeding seven million five
hundred thousand dollars ($7,500,000) shall be transferred from the
Retail Sales Tax Fund to the Small Business Expansion Fund created by
Article 5 (commencing with Section 14030) of Chapter 1 of Part 5 of
Division 3 of Title I of the Corporations Code.
   (b) The balance shall be transferred to the General Fund.
   (c) The estimates required by subdivision (a) shall be based on
taxable transactions occurring during a calendar year, and the
transfers required by subdivision (a) shall be made during the fiscal
year that commences during that same calendar year.  Transfers
required by paragraphs (1), (2), and (3) of subdivision (a) shall be
estimated by the State Board of Equalization, with the concurrence of
the Department of Finance, and shall be made quarterly.
   (d) Notwithstanding the designation of the Transportation Planning
and Development Account as a trust fund pursuant to subdivision (a),
the Controller may use the Transportation Planning and Development
Account for loans to the General Fund as provided in Sections 16310
and 16381 of the Government Code.  The loans shall be repaid with
interest from the General Fund at the Pooled Money Investment Account
rate.
   (e) The Legislature may amend this section, by statute passed in
each house of the Legislature by rollcall vote entered in the
journal, two-thirds of the membership concurring, if the statute is
consistent with, and furthers the purposes of this section.
   (f) This section shall become operative on June 30, 2001.
  SEC 11.5.  Section 7104 is added to the Revenue and Taxation Code,
to read:
   7104.  (a) The Transportation Investment Fund (hereafter the fund)
is hereby created in the State Treasury.
   (b) All of the following shall occur on a quarterly basis:
   (1) The State Board of Equalization, in consultation with the
Department of Finance, shall estimate the amount that is transferred
to the General Fund under subdivision (b) of Section 7102 that is
attributable to revenue collected for the sale, storage, use, or
other consumption in this state of motor vehicle fuel, as defined in
Section 7304.
   (2) The State Board of Equalization shall inform the Controller,
in writing, of the amount estimated under paragraph (1).
   (3) The Controller shall transfer the amount estimated under
paragraph (1) from the General Fund to the fund.
   (c) For each quarter during the period commencing on July 1, 2001,
and ending on June 30, 2006, the Controller shall make all of the
following transfers from the fund in the following order:
   (1) To the Transportation Congestion Relief Fund created in the
State Treasury by Section 14556.5 of the Government Code, the sum of
one hundred sixty-nine million five hundred thousand dollars
($169,500,000), for a total transfer of three billion three hundred
ninety million dollars ($3,390,000,000).
   (2) To the Public Transportation Account, a trust fund in the
State Transportation Fund, 20 percent of the amount remaining after
the transfer required under paragraph (1).  Funds transferred under
this paragraph shall be appropriated by the Legislature as follows:
   (A) To the Department of Transportation, 50 percent for purposes
of subdivision (a) or (b) of Section 99315 of the Public Utilities
Code.
   (B) To the Controller, 25 percent for allocation pursuant to
Section 99314 of the Public Utilities Code.  Funds allocated under
this subparagraph shall be subject to all of the provisions governing
funds allocated under Section 99314 of the Public Utilities Code.
   (C) To the Controller, 25 percent for allocation pursuant to
Section 99313 of the Public Utilities Code.  Funds allocated under
this subparagraph shall be subject to all of the provisions governing
funds allocated under Section 99313 of the Public Utilities Code.
   (3) To the Department of Transportation for programming for
transportation capital improvement projects subject to all of the
provisions governing the State Transportation Improvement Program, 40
percent of the amount remaining after the transfer required under
paragraph (1).
   (4) To the counties, including a city and county, 20 percent of
the amount remaining after the transfer required under paragraph (1),
in accordance with the following formulas:
   (A) Seventy-five percent of the funds payable under this paragraph
shall be apportioned among the counties in the proportion that the
number of fee-paid and exempt vehicles that are registered in the
county bears to the number of fee-paid and exempt vehicles registered
in the state.
   (B) Twenty-five percent of the funds payable under this paragraph
shall be apportioned among the counties in the proportion that the
number of miles of maintained county roads in each county bears to
the total number of miles of maintained county roads in the state.
For the purposes of apportioning funds under this subparagraph, any
roads within the boundaries of a city and county that are not state
highways shall be deemed to be county roads.
   (5) To cities, including a city and county, 20 percent of the
amount remaining after the transfer required under paragraph (1).
Fund transferred under this paragraph shall be apportioned among the
cities in the proportion that the total population of the city bears
to the total population of all the cities in the state.
   (d) Funds received under paragraphs (4) and (5) of subdivision (c)
shall be deposited as follows in order to avoid the commingling of
those funds with other local funds:
   (1) In the case of a city, into the city account that is
designated for the receipt of state funds allocated for
transportation purposes.
   (2) In the case of a county, into the county road fund.
   (3) In the case of a city and county, into a local account that is
designated for the receipt of state funds allocated for
transportation purposes.
   (e) Funds allocated to a city, county, or city and county under
this section shall be used only for street and highway maintenance,
rehabilitation, reconstruction, and storm damage repair.  For
purposes of this section, the following terms have the following
meanings:
   (1) "Maintenance" means either or both of the following:
   (A) Patching.
   (B) Overlay and sealing.
   (2) "Reconstruction" includes any overlay, sealing, or widening of
the roadway, if the widening is necessary to bring the roadway width
to the desirable minimum width consistent with the geometric design
criteria of the department for 3R (reconstruction, resurfacing, and
rehabilitation) projects that are not on a freeway, but does not
include widening for the purpose of increasing the traffic capacity
of a street or highway.
   (3) "Storm damage repair" is repair or reconstruction of local
streets and highways and related drainage improvements that have been
damaged due to winter storms and flooding, and construction of
drainage improvements to mitigate future roadway flooding and damage
problems, in those jurisdictions that have been declared disaster
areas by the President of the United States.
   (f) (1) Cities and counties shall maintain their existing
commitment of local funds for street and highway maintenance,
rehabilitation, reconstruction, and storm damage repair in order to
remain eligible for the allocation of funds pursuant to paragraph (4)
or (5) of subdivision (c).
   (2) In order to receive any allocation pursuant to paragraph (4)
or (5) of subdivision (c), 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 1996-97, 1997-98, and 1998-99 fiscal years,
as reported to the Controller pursuant to Section 2151 of the Streets
and Highways Code.  For purposes of this paragraph, in calculating a
city's or county's annual general fund expenditures and its average
general fund expenditures for the 1996-97, 1997-98, and 1998-99
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 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.
   (3) For purposes of paragraph (1), the Controller may request
fiscal data from cities and counties, in addition to data provided
pursuant to Section 2151, for the 1996-97, 1997-98, and 1998-99
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.
   (4) At the conclusion of each fiscal year during which a city or
county receives funding under paragraph (4) or (5) of subdivision
(c), the Controller shall verify the city's or county's compliance
with paragraph (1).  Any city or county that has not complied with
paragraph (1) 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 paragraph (1) shall be reallocated to the
other counties and cities whose expenditures are in compliance.
   (5) If a city or county fails to comply with the requirements of
paragraph (1) 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 paragraph (1).

   (6) The allocation made under paragraph (4) or (5) of subdivision
(c) shall be expended not later than the end of the fiscal year
following the fiscal year in which the allocation was made, and any
funds not expended within that period shall be returned to the
Controller and shall be reallocated to the other cities and counties
pursuant to the allocation formulas set forth in paragraph (4) or (5)
of subdivision (c).
   (g) The Los Angeles County Metropolitan Transportation Authority
shall give first priority for using its share of the funds made
available under subparagraphs (B) and (C) of paragraph (2) of
subdivision (c) to providing the levels of bus service mandated under
the consent decree entered into by the authority on October 29,
1996, in the case of Labor/Community Strategy Center, et al. v. Los
Angeles County Metropolitan Transportation Authority.
   (h) This section shall become inoperative on June 30, 2006, and,
as of January 1, 2007, is repealed, unless a later enacted statute
that is enacted before January 1, 2007, deletes or extends the dates
on which it becomes inoperative and is repealed.
  SEC. 12.  Section 10754.2 is added to the Revenue and Taxation
Code, to read:
   10754.2.  Notwithstanding any other provision law, any General
Fund forecast of revenues used for purposes of paragraphs (2) to
(15), inclusive, of subdivision (b) of Section 10754 may not include
any revenue loss due to the amendments to Section 7102 made by the
act adding this section.  Notwithstanding paragraph (4) of
subdivision (c) of Section 10754 any revenue loss due to the
amendments to Section 7102 made by Section 10 of the act adding this
section may not be used by the Department of Finance to modify the
offsets set forth in paragraphs (2) to (15), inclusive, of
subdivision (b) of Section 10754.
  SEC. 13.  Section 164.6 of the Streets and Highways Code is amended
to read:
   164.6.  (a) The department shall prepare a 10-year state
rehabilitation plan for the rehabilitation and reconstruction, or the
combination thereof, of all state highways and bridges owned by the
state.  The plan shall identify all rehabilitation needs for the
10-year period beginning on July 1, 1998, and ending on June 30,
2008, and shall include a schedule of improvements to complete all
needed rehabilitation not later than June 30, 2008.  The plan shall
be updated every two years beginning in 2000.  The plan shall include
specific milestones and quantifiable accomplishments, such as miles
of highways to be repaved and number of bridges to be retrofitted.
The plan shall contain strategies to control cost and improve the
efficiency of the program, and include a cost estimate for at least
the first five years of the program.
   (b) The plan shall be submitted to the commission for review and
comments and shall be transmitted to the Governor and the Legislature
not later than May 1, 1998.
   (c) The plan shall be the basis for the department's budget
request and for the adoption of fund estimates pursuant to Section
163.
  SEC. 14.  Section 182.6 of the Streets and Highways Code is amended
to read:
   182.6.  (a) Notwithstanding Sections 182 and 182.5, Sections 188,
188.8, and 825 do not apply to the expenditure of an amount of
federal funds equal to the amount of federal funds apportioned to the
state pursuant to that portion of subsection (b)(3) of Section 104,
subsections (a) and (c) of Section 157, and subsection (d) of Section
160 of Title 23 of the United States Code which is allocated within
the state subject to subsection (d)(3) of Section 133 of that code.
These funds shall be known as the regional surface transportation
program funds.  The department, the transportation planning agencies,
the county
transportation commissions, and the metropolitan planning
organizations may do all things necessary in their jurisdictions to
secure and expend those federal funds in accordance with the intent
of federal law and this chapter.
   (b) The regional surface transportation program funds shall be
apportioned by the department to the metropolitan planning
organizations designated pursuant to Section 134 of Title 23 of the
United States Code and, in areas where none has been designated, to
the transportation planning agency designated pursuant to Section
29532 of the Government Code.  The funds shall be apportioned in the
manner and in accordance with the formula set forth in subsection (d)
(3) of Section 133 of Title 23 of the United States Code, except that
the apportionment shall be among all areas of the state.  Funds
apportioned under this subdivision shall remain available for three
federal fiscal years, including the federal fiscal year apportioned.

   (c) Where county transportation commissions have been created by
Division 12 (commencing with Section 130000) of the Public Utilities
Code, all regional surface transportation program funds shall be
further apportioned by the metropolitan planning organization to the
county transportation commission on the basis of relative population.

   In the Monterey Bay region, all regional surface transportation
program funds shall be further apportioned, on the basis of relative
population, by the metropolitan planning organization to the regional
transportation planning agencies designated under subdivision (b) of
Section 29532 of the Government Code.
   (d) The applicable metropolitan planning organization, county
transportation commission, or transportation planning agency shall
annually apportion the regional surface transportation program funds
for projects in each county, as follows:
   (1) An amount equal to the amount apportioned under the
federal-aid urban program in federal fiscal year 1990-91 adjusted for
population.  The adjustment for population shall be based on the
population determined in the 1990 federal census except that no
county shall be apportioned less than 110 percent of the
apportionment received in the 1990-91 fiscal year.  These funds shall
be apportioned for projects implemented by cities, counties, and
other transportation agencies on a fair and equitable basis based
upon an annually updated five-year average of allocations.  Projects
shall be nominated by cities, counties, transit operators, and other
public transportation agencies through a process that directly
involves local government representatives.
   (2) An amount not less than 110 percent of the amount that the
county was apportioned under the federal-aid secondary program in
federal fiscal year 1990-91, for use by that county.
   (e) The department shall notify each metropolitan planning
organization, county transportation commission, and transportation
planning agency receiving an apportionment under this section, as
soon as possible each year, of the amount of obligation authority
estimated to be available for program purposes.  The metropolitan
planning organization and transportation planning agency, in
cooperation with the department, congestion management agencies,
cities, counties, and affected transit operators, shall select and
program projects in conformance with federal law.  The metropolitan
planning organization and transportation planning agency shall submit
its transportation improvement program prepared pursuant to Section
134 of Title 23 of the United States Code to the department for
incorporation into the state transportation improvement program not
later than August 1 of each even-numbered year beginning in 1994.
   (f) Not later than July 1 of each year, the metropolitan planning
organizations, and the regional transportation planning agencies,
receiving obligational authority under this article shall notify the
department of the projected amount of obligational authority that
each entity intends to use during the remainder of the current
federal fiscal year, including, but not limited to, a list of
projects that will be obligated by the end of the current federal
fiscal year.  Any federal obligational authority that will not be
used shall be redistributed by the department to other projects in a
manner that ensures that the state will continue to compete for and
receive increased obligational authority during the federal
redistribution of obligational authority.  If the department does not
have sufficient federal apportionments to fully use excess
obligational authority, the metropolitan planning organizations or
regional transportation planning agencies relinquishing obligational
authority shall make sufficient apportionments available to the
department to fund alternate projects, when practical, within the
geographical areas relinquishing the obligational authority.
Notwithstanding this subdivision, the department shall comply with
subsections (d)(3) and (f) of Section 133 of Title 23 of the United
States Code.
   (g) A regional transportation planning agency that is not
designated as, nor represented by, a metropolitan planning
organization with an urbanized area population greater than 200,000
pursuant to the 1990 federal census may exchange its annual
apportionment received pursuant to this section on a
dollar-for-dollar basis for nonfederal State Highway Account funds,
which shall be apportioned in accordance with subdivision (d).
   (h) (1) If a regional transportation planning agency described in
subdivision (g) does not elect to exchange its annual apportionment,
a county located within the boundaries of that regional
transportation planning agency may elect to exchange its annual
apportionment received pursuant to paragraph (2) of subdivision (d)
for nonfederal State Highway Account funds.
   (2) A county not included in a regional transportation planning
agency described in subdivision (g), whose apportionment pursuant to
paragraph (2) of subdivision (d) was less than 1 percent of the total
amount apportioned to all counties in the state may exchange its
apportionment for nonfederal State Highway Account funds.  If the
apportionment to the county was more than 31/2 percent of the total
apportioned to all counties in the state, it may exchange that
portion of its apportionment in excess of 31/2 percent for nonfederal
State Highway Account funds.  Exchange funds received by a county
pursuant to this section may be used for any transportation purpose.

   (i) The department shall be responsible for closely monitoring the
use of federal transportation funds, including regional surface
transportation program funds to assure full and timely use.  The
department shall prepare a quarterly report for submission to the
commission regarding the progress in use of all federal
transportation funds.  The department shall notify the commission and
the appropriate implementation agency whenever there is a failure to
use federal funds within the three-year apportionment period
established under subdivision (b).
   (j) The department shall provide written notice to implementing
agencies when there is one year remaining within the three-year
apportionment period established under subdivision (b) of this
section.
   (k) Within six months of the date of notification required under
subdivision (j), the implementing agency shall provide to the
department a plan to obligate funds that includes, but need not be
limited to, a list of projects and milestones.
   (l) If the implementing agency has not met the milestones
established in the implementation plan required under subdivision
(k), prior to the end of the three-year apportionment period
established under subdivision (b), the commission shall redirect
those funds for use on other transportation projects in the state.
   (m) Notwithstanding subdivisions (g) and (h), regional surface
transportation program funds available under this section exchanged
pursuant to Section 182.8 may be loaned to and expended by the
department.  The department shall repay to the Traffic Congestion
Relief Fund all funds received as federal reimbursements for funds
exchanged under Section 182.8 as they are received from the Federal
Highway Administration.
  SEC. 15.  Section 182.7 of the Streets and Highways Code is amended
to read:
   182.7.  (a) Notwithstanding Sections 182 and 182.5, Sections 188,
188.8, and 825 do not apply to the expenditure of an amount of
federal funds equal to the amount of federal funds apportioned to the
state pursuant to subsection (b)(2) of Section 104 of Title 23 of
the United States Code.  These funds shall be known as the congestion
mitigation and air quality program funds and shall be expended in
accordance with Section 19 of Title 3 of the United States Code.  The
department, the transportation planning agencies, and the
metropolitan planning organizations may do all things necessary in
their jurisdictions to secure and expend those federal funds in
accordance with the intent of federal law and this chapter.
   (b) The congestion mitigation and air quality program funds,
including any funds to which subsection (c) of Section 110 of Title
23 of the United States Code, as added by subdivision (a) of Section
1310 of Public Law 105-178, applies, shall be apportioned by the
department to the metropolitan planning organizations designated
pursuant to Section 134 of Title 23 of the United States Code and, in
areas where none has been designated, to the transportation planning
agency established by Section 29532 of the Government Code.  The
funds shall be apportioned to metropolitan planning organizations and
transportation planning agencies responsible for air quality
conformity determinations in federally designated air quality
nonattainment and maintenance areas within the state in the manner
and in accordance with the formula set forth in subsection (b)(2) of
Section 104 of Title 23 of the United States Code.  Funds apportioned
under this subdivision shall remain available for three federal
fiscal years, including the federal fiscal year apportioned.
   (c) Notwithstanding subdivision (b), where county transportation
commissions have been created by Division 12 (commencing with Section
130000) of the Public Utilities Code, all congestion mitigation and
air quality program funds shall be further apportioned by the
metropolitan planning organization to the county transportation
commission on the basis of relative population within the federally
designated air quality nonattainment and maintenance areas after
first apportioning to the nonattainment and maintenance areas in the
manner and in accordance with the formula set forth in subsection (b)
(2) of Section 104 of Title 23 of the United States Code.
   In the Monterey Bay region, all congestion mitigation and air
quality improvement program funds shall be further apportioned, on
the basis of relative population, by the metropolitan planning
organization to the regional transportation planning agencies
designated under subdivision (b) of Section 29532 of the Government
Code.
   (d) The department shall notify each metropolitan planning
organization, transportation planning agency, and county
transportation commission receiving an apportionment under this
section, as soon as possible each year, of the amount of obligational
authority estimated to be available for expenditure from the federal
apportionment.  The metropolitan planning organizations,
transportation planning agencies, and county transportation
commissions, in cooperation with the department, congestion
management agencies, cities and counties, and affected transit
operators, shall select and program projects in conformance with
federal law.  Each metropolitan planning organization and
transportation planning agency shall, not later than August 1 of each
even-numbered year beginning in 1994, submit its transportation
improvement program prepared pursuant to Section 134 of Title 23 of
the United States Code to the department for incorporation into the
state transportation improvement program.
   (e) Not later than July 1 of each year, the metropolitan planning
organizations and the regional transportation planning agencies
receiving obligational authority under this section, shall notify the
department of the projected amount of obligational authority that
each entity intends to use during the remainder of the current
federal fiscal year, including, but not limited to, a list of
projects that will use the obligational authority.  Any federal
obligational authority that will not be used shall be redistributed
by the department to other projects in a manner that ensures that the
state will continue to compete for and receive increased
obligational authority during the federal redistribution of
obligational authority.  If the department does not have sufficient
federal apportionments to fully use excess obligational authority,
the metropolitan planning organization or transportation planning
agency relinquishing obligational authority shall make sufficient
apportionments available to the department to fund alternate
projects, when practical, within the geographical areas relinquishing
the obligational authority.  Notwithstanding this subdivision, the
department shall comply with subsection (f) of Section 133 of Title
23 of the United States Code.
   (f) The department shall be responsible for closely monitoring the
use of federal transportation funds, including congestion management
and air quality funds to assure full and timely use.  The department
shall prepare a quarterly report for submission to the commission
regarding the progress in use of all federal transportation funds.
The department shall notify the commission and the appropriate
implementation agency whenever there is a failure to use federal
funds within the three-year apportionment period established under
subdivision (b).
   (g) The department shall provide written notice to implementing
agencies when there is one year remaining within the three-year
apportionment period established under subdivision (b) of this
section.
   (h) Within six months of the date of notification required under
subdivision (g), the implementing agency shall provide to the
department a plan to obligate funds that includes, but need not be
limited to, a list of projects and milestones.
   (i) If the implementing agency has not met the milestones
established in the implementation plan required under subdivision (h)
above, prior to the end of the three-year apportionment period
established under subdivision (b), the commission shall redirect
those funds for use on other transportation projects in the state.
   (j) Congestion mitigation and air quality program funds available
under this section exchanged pursuant to Section 182.8 may be loaned
to and expended by the department.  The department shall repay to the
Traffic Congestion Relief Fund all funds received as federal
reimbursements for funds exchanged under Section 182.8 as they are
received from the Federal Highway Administration.
  SEC. 16.  Section 182.8 is added to the Streets and Highways Code,
to read:
   182.8.  (a) It is the intent of the Legislature that this program
help increase flexibility in the use of state and federal funding to
complete transportation improvements.  The ability to exchange
certain federal funds for state funds may enhance that flexibility.
However, it is the intent of the Legislature that the commission make
these exchanges only if the exchanges do not compromise other state
funded projects or activities.
   (b) The commission shall propose guidelines and procedures to
implement this section, hold a public hearing on the guidelines, and
adopt the guidelines on or before February 1, 2001.  The commission
shall begin the exchange program on or before February 1, 2001, if it
determines that funding is available for that purpose.  The
commission may amend its guidelines after holding a public hearing,
but may not amend the guidelines between the time it notifies
regional transportation planning agencies of the amount of state
funds available for exchange and its approval of projects for
exchange in any given year.
   (c) On or before January 5 of each year, the department shall
report to the commission the amounts apportioned as federal local
assistance in the regional surface transportation and congestion
mitigation and air quality programs for the year, the Federal
Obligation Authority for the year, and the amount of federal funds it
expects to be able to obligate for work on projects in all programs
on or before September 30 of that year, and the commission, in
cooperation with the department, shall determine the amount of state
funds from the Traffic Congestion Relief Fund that can be made
available for exchange under this section.  If the release of federal
apportionments and obligational authority is delayed beyond November
1 in any year, all the dates specified in this section shall be
extended by an equivalent time, however, all federal funds exchanged
shall be obligated on or before September 30 of the current federal
fiscal year.
   (d) The commission may exchange funds under this section if it
determines all of the following:
   (1) Adequate state funds are available to accomplish the exchange
without putting at risk other transportation activities or projects
needing state funds.
   (2) Any exchange will be consistent with full implementation of
the Traffic Congestion Relief Act of 2000.
   (3) Federal funds received in exchange can be readily and
effectively used on other projects or activities by the state during
the federal fiscal year.
   (e) After making the determinations set forth in subdivision (d)
the commission may offer to exchange state funds from the Traffic
Congestion Relief Fund for federal local assistance funds, subject to
the limits imposed under this section.  For the purpose of this
section, "federal local assistance" funds means regional surface
transportation program or congestion mitigation and air quality
program apportionments received that federal fiscal year and
apportioned as local assistance pursuant to Sections 182.6 and 182.7.

   (f) Not later than February 1 of each year, the commission shall
notify the regional transportation planning agencies of the amount of
state funds available for exchange for federal local assistance
funds for that year.  The maximum amount of state funds to be
exchanged may not exceed 50 percent of the total amount of federal
regional surface transportation program and congestion mitigation and
air quality program funds apportioned for the current fiscal year as
local assistance pursuant to subdivision (b) of Section 182.6 and
subdivision (b) of Section 182.7, exclusive of state funds that may
be exchanged pursuant to subdivision (g) of Section 182.6, paragraphs
(1) and (2) of subdivision (h) of Section 182.6, or Section 182.7.
Federal funds exchanged under this program shall be available for
projects identified by the commission as ready to obligate during
determination of the amount available for exchange.  In no event will
the amount of exchange exceed the department's ability to obligate
all federal funds during the current federal fiscal year.  The
commission may not exchange state funds for regional surface
transportation program funds required to be spent for transportation
enhancements.  This section does not affect the amount of exchange
under subdivision (g) of Sections 182.6, or paragraphs (1) and (2) of
subdivision (h) of Section 182.6.
   (g) Regional transportation planning agencies may submit
applications for exchange of funds to the commission not later than
March 15 of each year.  Applications shall identify the proposed use
for the exchange funds, including project descriptions, cost
estimates, scopes of work, schedules for construction, schedules for
expenditures, and any other information required by the commission.
The commission may require a region to identify priorities among
applications it submits.
   (h) If the commission receives applications for more exchange
funds than the amount of state funds available, the commission shall
select projects for exchange up to the amount of state funds
available.  The commission shall explain the criteria it uses to
select projects, which shall include, but are not limited to, all of
the following:
   (1) Removal of all federal funds from projects.
   (2) Assessment of projects that would benefit most from removal of
federal funding because of size, type, location, agency capability,
features, or federal requirements.
   (3) Approximate relative equity within the program among regions
in receiving state exchange funds over a multiyear period.
   (i) The commission may exchange state funds for federal local
assistance funds with agencies requesting exchanges.  Agencies
wishing to exchange their federal funds shall provide apportionments
and obligation authority at the same rate the Federal Highway
Administration distributes obligation authority.  Agencies exchanging
federal funds shall receive funds equal to 90 percent of the
obligation authority exchanged.  The commission shall approve
exchanges of funds not later than its second regularly scheduled
meeting following March 15 each year.
   (j) The commission shall determine an exchange payment schedule
based on expenditure plans.  The commission may suspend exchange
payment schedules if it determines projects are not proceeding.
   (k) For financial display and reporting purposes, obligational
authority received pursuant to this section shall be reported as a
revenue accrual in the Traffic Congestion Relief Fund in the year in
which the exchange is approved under subdivision (i).  Funds approved
for exchange shall be accrued as expenditures in the year in which
the exchange is approved.  Notwithstanding Section 16362 of the
Government Code, the department shall immediately deposit into the
Traffic Congestion Relief Funds all moneys reimbursed by the Federal
Highway Administration, as a result of expending the exchanged
obligation authority.
   (l) State funds provided through an exchange under this section
must be encumbered within one year and expended within three years.
   (m) Upon adoption of its implementing guidelines, the commission
may consider requests for exchanges under this section.
   (n) Regional and local agencies shall use state exchange funds
only for projects or purposes for which the federal local assistance
funds being exchanged were originally intended, and may not supplant
local funds on projects in order that those local funds can
subsequently be used for nontransportation purposes.  The commission
may ask agencies to certify that they are meeting this requirement.
Agencies not meeting this maintenance of effort requirement may not
be allowed to participate in the next exchange cycle.
   (o) The commission shall include a summary of exchanges made
pursuant to this section in its annual report to the Governor and
Legislature pursuant to Section 14556.36, including an assessment of
progress in implementing projects funded by exchanges, and discussion
of issues and recommendations related to implementation of the
exchange program.
   (p) Not later than the effective date of the reauthorization of
the federal surface transportation act, the commission shall submit a
report to the Governor and the Legislature recommending any changes
in the exchange program necessitated by that reauthorization.
  SEC. 17.  Section 183.1 is added to the Streets and Highways Code,
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) Not later than November 1 of each year, based on prior year
financial statements, the State Controller shall transfer the funds
identified in subdivision (a) for the prior fiscal year to the Public
Transportation Account in the State Transportation Fund.
  SEC. 18.  Section 2182 is added to the Streets and Highways Code,
to read:
   2182.  (a) The funds appropriated from the Traffic Congestion
Relief Fund pursuant to Section 21 of the act that added this section
shall be allocated by the Controller to cities and counties for
street and road maintenance, rehabilitation, and reconstruction.
Four hundred million dollars ($400,000,000) shall be allocated to the
counties, including a city and county, and cities, including a city
and county, as follows:
   (1) Fifty percent to the counties, including a city and county, in
accordance with the following formulas:
   (A) Seventy-five percent of the funds payable under this paragraph
shall be apportioned among the counties in the proportion that the
number of fee-paid and exempt vehicles that are registered in the
county bears to the number of fee-paid and exempt vehicles registered
in the state.
   (B) Twenty-five percent of the funds payable under this paragraph
shall be apportioned among the counties in the proportion that the
number of miles of maintained county roads in each county bears to
the total number of miles of maintained county roads in the state.
For the purposes of apportioning funds under this subparagraph, any
roads within the boundaries of a city and county that are not state
highways shall be deemed to be county roads.
   (2) Fifty percent to cities, including a city and county,
apportioned among the cities in the proportion that the total
population of the city bears to the total population of all the
cities in the state.
   (b) Funds received under this section shall be deposited as
follows in order to avoid the commingling of those funds with other
local funds:
   (1) In the case of a city, into the city account that is
designated for the receipt of state funds allocated for
transportation purposes.
   (2) In the case of a county, into the county road fund.
   (3) In the case of a city and county, into a local account that is
designated for the receipt of state funds allocated for
transportation purposes.
   (c) Funds apportioned to a city or county under this section shall
be used only for street and highway pavement maintenance,
rehabilitation, and reconstruction of necessary associated facilities
such as drainage and traffic control devices.
                              Rehabilitation or reconstruction may
include widening necessary to bring the roadway width to the
desirable minimum pavement width consistent with accepted design
standards for local streets and roads, but does not include widening
or increasing the traffic capacity of a street or road.
  SEC. 19.  Section 2182.1 is added to the Streets and Highways Code,
to read:
   2182.1.  (a) The Legislature finds and declares that it intends
cities and counties to use the funds made available from Section 21
of the act that added this section to supplement existing local
revenues being used for maintenance and rehabilitation of local
streets and roads.  Cities and counties shall maintain their existing
commitment of local funds for maintenance and rehabilitation of
local streets and roads in order to remain eligible for allocation
and expenditure of the additional four hundred million dollars
($400,000,000) made available by Section 21 of the act that added
this section.
   (b) In order to receive any allocation pursuant to Section 2182,
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
1996-97, 1997-98, and 1998-99 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
1996-97, 1997-98, and 1998-99 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 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 purposes of subdivision (a), the Controller may request
fiscal data from cities and counties, in addition to data provided
pursuant to Section 2151, for the 1996-97, 1997-98, and 1998-99
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.
   (d) At the conclusion of each fiscal year during which a city or
county receives funding under Section 2182, the Controller shall
verify the city's or county's compliance with subdivision (a).  Any
city or county that has not complied with subdivision (a) 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 (a) shall be reallocated to the other
counties and cities whose expenditures are in compliance.
   (e) If a city or county fails to comply with the requirements of
subdivision (a) 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
(a).
   (f) The allocation made under Section 2182 shall be expended not
later than the end of the fiscal year following the fiscal year in
which the allocation was made, and any funds not expended within that
period shall be returned to the Controller and shall be reallocated
to the other cities and counties pursuant to the allocation formulas
set forth in Section 2182.
  SEC. 20.  The sum of one billion five hundred million dollars
($1,500,000,000) is hereby appropriated from the General Fund to the
Traffic Congestion Relief Fund for the purposes of Section 14556.5 of
the Government Code.
  SEC. 21.  The sum of four hundred million dollars ($400,000,000) is
hereby appropriated from the Traffic Congestion Relief Fund to the
Controller for allocation to cities and counties, including a city
and county, for the purposes of Section 2182 of the Streets and
Highways Code.
  SEC. 22.  The sum of five million dollars ($5,000,000) is hereby
appropriated from the Traffic Congestion Relief Fund to the
High-Speed Rail Authority for the purpose of commencing preliminary
environmental documentation for the implementation of high-speed rail
service in California.
  SEC. 23.  Notwithstanding any other provision of law, when making
the calculation as required by subdivision (b) of Section 8 of
Article XVI of the California Constitution, "General Fund revenues
that may be appropriated pursuant to Article XIIIB" as used in
paragraphs (1) and (3) of subdivision (b) of Section 8 of Article XVI
of the  California Constitution, shall include the amounts of the
transfer specified under paragraphs (11), (12), and (13) of
subdivision (a) of Section 7102 of the Revenue and Taxation Code, as
amended by Section 10 of this act.  For the 2000-01 fiscal year, the
Director of Finance shall adjust the amount required to be allocated
to school districts and community college districts to ensure that
paragraphs (11), (12), and (13) of subdivision (a) of Section 7102 of
the Revenue and Taxation Code, as amended by Section 10 of this act,
do not diminish the funding level for school districts and community
college districts to a funding level below that required absent the
transfer authorized by paragraphs (11), (12), and (13) of subdivision
(a) of Section 7102 of the Revenue and Taxation Code, as amended by
Section 10 of this act.
  SEC. 24.  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:
   This act creates a significant program designed to reduce traffic
congestion, which will improve the public's health and safety.  In
order for the program authorized by this act to be implemented as
soon as possible, it is necessary that this act go into immediate
effect.