BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  AB 7X
          Author:   Evans (D)
          Amended:  12/18/08 in Senate
          Vote:     27 - Urgency

           
          WITHOUT REFERENCE TO COMMITTEE


           SUBJECT  :    Budget Act of 2008:  infrastructure bonds

           SOURCE  :     Author


           DIGEST  :    This bill provides the necessary statutory  
          changes in the area of infrastructure bonds in order to  
          enact revisions to the 2008 Budget Act.

           ANALYSIS  :    This omnibus infrastructure bond budget  
          trailer bill acts as an economic stimulus by appropriating  
          approximately $2.9 billion in additional infrastructure  
          bond funds to accelerate the construction of projects that  
          are ready to go in the 2009 calendar year.  According to an  
          analysis performed by the Federal Highway Administration,  
          15,000 new jobs are created for every $1 billion in  
          infrastructure construction contracts.  This bill:

          1.  Public Transit  .  Appropriates $800 million from  
             Proposition 1B bond funds (Public Transportation  
             Modernization, Improvement and Service Enhancement  
             Account) for allocation to local transit operators for  
             capitol projects such as the purchase of new buses,  
             train cars, and rail and transit facility expansion or  
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             upgrade.

          2.  Local Streets and Roads  .  Appropriates $700 million from  
             Proposition 1B bond funds (Local Streets and Road  
             Improvement, Congestion Relief, and Traffic Safety  
             Account of 2006) for allocation to cities and counties  
             for improvements to local streets and roads and other  
             local transportation facilities.  Of this amount,  
             $441,795,000 will be allocated to counties and  
             $258,205,000 will be allocated to cities.

          3.  Corridor Mobility Improvement Account (CMIA)  .   
             Appropriates $500 million from Proposition 1B bond funds  
             (CMIA) for allocation to important highway improvement  
             projects already approved by the California  
             Transportation Commission.

          4.  State-Local Partnership  .  Appropriates $200 million from  
             Proposition 1B bond funds (State-Local Partnership  
             Account) to provide match funds for projects primarily  
             funded by non-bond dollars.  This appropriation will  
             allow the California Transportation Commission to double  
             the amount of awards to ready-to-go projects in 2009.

          5.  State Route 99  .  Appropriates $170 million from  
             Proposition 1B bond funds (Route 99 Account) to advance  
             the construction contract awards for projects that  
             improve this major corridor.

          6.  Trade Corridor Improvement Fund (TCIF)  .  Appropriates  
             $110 million from Proposition 1B bond funds (TCIF) to  
             enable out-year projects to be advanced into 2009.  This  
             bond program funds improvements to the state's major  
             trade thoroughfares.
           
           7.  Infill and Mixed-Use Development  .  Appropriates $60  
             million from Proposition 1C bond funds (Regional  
             Planning, Housing, and Infill Incentive Account) to the  
             California Recycle Underutilized Sites program for  
             brownfield cleanup that promotes infill residential and  
             mixed-use development.

          8.  Housing-Related Parks  .  Appropriates $30 million from  
             Proposition 1C bond funds (Housing  







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             Urban-Suburban-and-Rural Parks Account) to the  
             Department of Housing and Community Development (HCD) to  
             fund the creation, development, or rehabilitation of  
             parks under the Housing-Related Parks Program.  This  
             allows the HCD to award funds in 2009.

          9.  Integrated Regional Water Management Plans  .   
             Appropriates $100 million from Proposition 84 bond funds  
             to the Department of Water Resources for integrated  
             regional water management plans for immediate priority  
             water supply reliability projects.

          10.  Stormwater and Floods  .  Appropriates $100 million from  
             Proposition 1E bond funds to the Department of Water  
             Resources to disburse to local agencies and flood  
             protection agencies to prevent and mitigate the effects  
             of flash flooding, mudslides, and damage associated with  
             winter rains in fire damaged areas.

          11.  Parks Maintenance  .  Appropriates $100 million from  
             Proposition 84 bond funds to the Department of Parks and  
             Recreation for repair and rehabilitation of park  
             facilities (deferred maintenance).  The Department of  
             Parks and Recreation shall endeavor to use California  
             construction companies or workers for these activities.

          12.  California Conservation Corps  .  Appropriates $16 million  
             from Proposition 84 bond funds to the California  
             Conservation Corps for local conservation corps programs  
             and facilities.

          13.  "Green" California Partnership Academies  .  Appropriates  
             $12.5 million from the Public Interest Research,  
             Development, and Demonstration Fund to the California  
             Community Colleges in order to expand the number of high  
             school Partnership Academies by 61.  New Partnership  
             Academies funded with this appropriation would (a) meet  
             current statutory requirements for Partnership Academies  
             and (b) focus on curriculum and career technology  
             education related to clean technology, renewable energy,  
             pollution reduction, and other "green" environmental  
             technologies.

          14.  Contingent clause  .  This bill will not be enacted unless  







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             AB 2X is also enacted.  

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  No    
          Local:  No

          DLW:mw  12/18/08   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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