BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 268
                                                                  Page 1

          (  Without Reference to File  )

          CONCURRENCE IN SENATE AMENDMENTS
          AB 268 (Budget Committee)
          As Amended September 15, 2008
          2/3 vote.  Urgency
           
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          |ASSEMBLY:  |     |(June 5, 2008)  |SENATE: |29-10|(September 16, |
          |           |     |                |        |     |2008)          |
           ----------------------------------------------------------------- 
                (vote not relevant)

          Original Committee Reference:    PUB. S

          SUMMARY  :  Provides statutory changes for transportation to  
          implement the Budget Act of 2008.  

           The Senate amendments  delete the Assembly version of the bill  
          and instead:

          1)Allocate sales tax "spillover" revenue for 2008-09.  Of the  
            estimated revenue of $1.4 billion, $939 million is allocated  
            to the Mass Transportation Fund to provide General Fund (GF)  
            relief by reimbursing past year and budget year general  
            obligation bond debt for transportation-related bonds ($857  
            million), and by reimbursing the GF for the 2008-09  
            Proposition 42 loan repayment ($83 million).  The spillover  
            revenue in excess of $939 million, which is estimated at $488  
            million, is transferred to the Public Transportation Account.   
            The revenues in the Public Transportation Account are  
            appropriated in the budget bill and support traditional  
            transit operations and capital, as well as additional GF  
            relief.

          2)Implement the Public Transportation Modernization,  
            Improvement, and Service Enhancement Account for 2008-09 by  
            using the same allocation formula that was used with the  
            funding provided in the 2007 Budget Act.  Implements the  
            State-Local Partnership Program by establishing criteria for  
            eligibility and allocation.  
          
          3)Increase vehicle registration fees by $11 to fund the  
            increased cost and number of California Highway Patrol  
            Officers.  The Administration requested this fee increase to  








                                                                  AB 268
                                                                  Page 2

            maintain the solvency of the Motor Vehicle Account.  The  
            full-year revenue gain from the fee increase will be  
            approximately $490 million.

          4)Extend the sunset until 2011 for short-term cash-flow loans  
            among transportation funds.  Authorizes a three-year loan from  
            the Traffic Congestion Relief Fund to the Public  
            Transportation Account not to exceed $60 million.  Extends the  
            sunset until 2011 for short-term cash-flow loans from the GF  
            to the State Highway Account, and also places a new ceiling of  
            $200 million on such loans.  
          
          5)Authorize a shift in the federal funds available for  
            allocation to regional transportation agencies to the  
            California Department of Transportation (Caltrans) to cover  
            the State's increased cost of oversight for these local  
            subventions.  In concert with the budget bill, this language  
            allows Caltrans to meet more stringent Federal Highway  
            Administration requirements by shifting $2.2 million in  
            federal funds to the State to cover the cost of 30 new state  
            positions.

          6)Authorize Caltrans to participate in the federal Clean  
            Renewable Energy Bonds Program, which will provide a $20  
            million interest-fee loan to Caltrans to fund the installation  
            of solar energy systems on the rooftops at 70 departmental  
            facilities.  Over a 16-year period, energy savings are  
            expected to fully repay the bonds and result in a net savings  
            of $5 million to the State Highway Account.

          7)Make technical changes to the statute that provides budget  
            allocations to transit operators.  The State Controller's  
            Office has indicated that these technical changes are  
            necessary to allow them to complete the 2007-08 allocations as  
            budgeted in the 2007 Budget Act.

          8)Declare this bill take effect immediately as an urgency  
            statute.

           AS PASSED BY THE ASSEMBLY,  this bill expanded the definition of  
          "unavailability" to an instance where a declarant refuses  
          testify, notwithstanding imposition of sanctions, and the  
          statement is offered against a party who has engaged or  
          acquiesced in wrongdoing that was intended to, and did, procure  
          the unavailability of the declarant.








                                                                  AB 268
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          FISCAL EFFECT  : Enables General Fund relief of over $940 million.  
           (In total, the Budget includes $1.354 billion in GF relief from  
          transportation.)

           COMMENTS  :  This is the annual Budget trailer bill for  
          transportation. 


           Analysis Prepared by  :    Christopher Woods / BUDGET / (916)  
          319-2099 


                                                               FN: 0007806