BILL NUMBER: ABX4 30 AMENDED BILL TEXT AMENDED IN SENATE JULY 23, 2009 INTRODUCED BYAssembly MemberEvansCommittee on Budget JULY 2, 2009An act relating to the Budget Act of 2009.An act to amend Sections 16965 and 27361 of the Government Code, and to amend Sections 2102, 2103, 2104.1, 2106.3, 2106.4, 2107.1, 2107.2, 2107.3, 2107.6, 2109, 2111, 2112, 2113, 2114, and 2115 of the Streets and Highways Code, relating to transportation. LEGISLATIVE COUNSEL'S DIGEST AB 30, as amended,EvansCommittee on Budget .Budget Act of 2009.Transportation finance: Highway Users Tax Account. (1) The Motor Vehicle Fuel Tax Law imposes a tax of $0.18 per gallon on motor vehicle fuel, commonly referred to as gasoline. The Diesel Fuel Tax Law imposes a tax of $0.18 per gallon on diesel fuel. These revenues, after certain deductions for nonhighway fuel uses, are deposited in the Highway Users Tax Account. Approximately 1/3 of the revenues in the account are apportioned by various formulas to cities and counties, and most of the remaining revenues are deposited in the State Highway Account after specified transfers to the Bicycle Transportation Account and the State Parks and Recreation Fund. Under Article XIX of the California Constitution, the portion of fuel tax revenues that is derived from use in motor vehicles upon public streets and highways is restricted for expenditure on street and highway and certain mass transit guideway purposes, and up to 25% of these and other vehicle-related revenues that are available for street and highway purposes may be pledged or used for the payment of principal and interest on voter-approved bonds issued for those purposes. This bill would modify the apportionment of fuel tax revenues designated for street and highway and guideway purposes for the 2009-10 and 2010-11 fiscal years. For those years, the bill would provide for 65% of revenues to be deposited in the State Highway Account and 25% to be deposited in the Transportation Debt Service Fund. Of the remaining 10% of revenue, additional fuel tax revenues would be transferred to the Transportation Debt Service Fund in an amount equivalent to 25% of vehicle weight fee revenues for the 2009-10 fiscal year only, certain amounts would be made available to the Bicycle Transportation Account and the State Parks and Recreation Fund, and the remaining revenues would be apportioned to cities and counties by certain formulas. This bill would authorize the Director of Finance to provide a hardship exemption from reduced apportionments for 2009-10 fiscal year to a county or city under certain conditions. The bill would also provide an exemption for specified smaller cities for that fiscal year. The bill would make other related changes. This bill would also authorize the Director of Finance to reimburse the General Fund, from revenues transferred to the Transportation Debt Service Fund from the Highway Users Tax Account, any amount necessary to offset the cost of debt service payments made from the General Fund during any fiscal year for transportation-related general obligation bond expenditures consistent with specified provisions of Article XIX of the California Constitution. The bill would also provide for transfer from the Mass Transportation Fund to the Transportation Debt Service Fund of any amount of the "spillover" gasoline sales tax funds received during the 2009-10 to 2012-13 fiscal years necessary to offset the cost of debt service payments made from the General Fund during any fiscal year for transportation-related general obligation bond expenditures. (2) Existing law authorizes the county recorder to charge certain fees for recording and indexing every instrument, paper, or notice required or permitted by law to be recorded. Existing law requires $1 for recording the first page and $1 for each additional page to be available solely to support, maintain, improve, and provide for the full operation for modernized creation, retention, and retrieval of information in the county's system of recorded documents. This bill, for the 2009-10 and 2010-11 fiscal years, would authorize a county to loan the records modernization funds to the county road fund in an amount not to exceed the amount of any revenues from the Highway Users Tax Account diverted from the county in the applicable fiscal year. (3) This bill would make various findings and declarations relative to transportation funding. (4) The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. The Governor issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on July 1, 2009. This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on July 1, 2009, pursuant to the California Constitution.This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2009.The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. The Governor issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on July 1, 2009.This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on July 1, 2009, pursuant to the California Constitution.Vote: majority. Appropriation: no. Fiscal committee:noyes . State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) State transportation funds subject to Article XIX of the California Constitution (hereafter Article XIX) are comprised of gasoline excise tax, diesel excise tax and truck weight fees. (b) For the 2009-10 and 2010-11 fiscal years the continuance of all existing statutory allocation formulas need not be followed as there is being implemented another equitable, geographical, and jurisdictional distribution. (c) In enacting this act, full and equal consideration has been given to the transportation needs of all areas of the state and all segments of the population consistent with the orderly achievement of the adopted local, regional, and statewide goals for ground transportation in local general plans, regional transportation plans, and the California Transportation Plan. (d) The allocations and distributions of revenues described in this act and related state laws do give equal consideration to the transportation needs of all areas of the state and all segments of the population consistent with the orderly achievement of the adopted local, regional, and statewide goals for ground transportation in local general plans, regional transportation plans, and the California Transportation Plan. (e) Due to concern for the equitable distribution of funds, there may be need, based on extreme hardship to a particular local government, to not alter the existing apportionment received by that local government. To ensure that this equity concern is addressed, the Director of Finance is provided the authority to reduce or eliminate a reduction of the existing apportionment to such a needy city or county. Such continuation of the existing allocations to an entity suffering such extreme hardship may assist in the orderly achievement of the adopted local goals for ground transportation in local general plans. (f) Apportionment of funds to, and the appropriation of funds from, the State Highway Account in the State Transportation Fund are determined to be part of the overall basis for an equitable, geographical, and jurisdictional distribution of Article XIX funds. Such funds are used for the following: (1) Transportation planning, including review of regional plans and preparation of the California Transportation Plan. (2) Maintenance and operation of state highway facilities throughout the state based on demonstrated needs as determined by Caltrans management. (3) The State Highway Operations and Protection Program that funds projects that improve the safety and operation of state highways throughout the state, and rehabilitate highway pavement and structures. Funds are allocated by the California Transportation Commission (CTC) based on needs identified by Caltrans. (4) The State Transportation Improvement Program, in which 75 percent of funds are programmed for regional transportation priorities by county or regional transportation agencies and 25 percent are programmed by Caltrans for interregional priorities. All projects are required to be included in regional transportation plans and the regional and interregional programs are approved by the CTC. (g) Apportionment of funds to, and the appropriation of funds from, the State Highway Account are equitable as all segments of the population and the state are aided by a functioning state highway system. These appropriations are geographical as the money is distributed throughout the entire state. Further, these funds are used for state, regional, interregional, and county entities and thus provide for appropriate jurisdictional distribution. The use of these funds aids in the orderly achievement of the adopted local, regional, and statewide goals for ground transportation in local general plans, regional transportation plans, and the California Transportation Plan by specifically funding portions of those goals. (h) Apportionment of funds to, and the appropriation of funds from, the Transportation Debt Service Fund are determined to be part of the overall basis for an equitable, geographical, and jurisdictional distribution of Article XIX funds. The proceeds of the bonds themselves adequately provide equal consideration to the needs of the entire state and all segments of its population consistent with the goals for local, regional, and state ground transportation. Funds, subject to Article XIX, will be used to repay bonds whose particular proceeds were proper uses of revenues. These bonds all contribute to meeting the ground transportation goals of local, regional, and state transportation plans. For example, Proposition 1 B bonds (the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Chapter 12.49 (commencing with Section 8879.20) of Division 1 of Title 2 of the Government Code)) provide $2 billion for improvement to local roads, $1 billion for grants for locally funded transportation projects, $125 million to provide grants to seismically retrofit local bridges and overpasses, and $4.5 billion to reduce congestion on state highways and major access routes. (i) Apportionment of funds to, and the appropriation of funds from, the Bicycle Transportation Account are determined to be part of the overall basis for an equitable, geographical, and jurisdictional distribution of Article XIX funds. The purpose of this fund is to aid cities and counties in obtaining funds from federal sources for the construction and acquisition of rights-of-way for bicycle lanes. This apportionment provides allocations to cities and counties for bikeways and related facilities. Therefore the allocation aids local and regional goals for ground transportation found in local general plans and regional transportation plans. Additionally, providing these funds is included in the basis for a proper distribution based on equitable, geographical, and jurisdictional distribution. (j) Apportionment of funds to, and the appropriation of funds from, the State Parks and Recreation Fund pursuant to Section 2107.7 of the Streets and Highways Code is determined to be part of the overall basis for an equitable, geographical, and jurisdictional distribution of Article XIX funds. These funds support the maintenance, repair, construction, and improvement of highways in units of the state park system. This apportionment provides funds for all portions of the state so that the parks can be enjoyed by all Californians and is therefore equitable and geographical. Equal consideration is provided, since all segments of the population may enjoy the state park units. Further, having well maintained highways in and around the state park system supports local, regional, and statewide goals in all levels of transportation planning. SEC. 2. Section 16965 of the Government Code is amended to read: 16965. (a) The Transportation Debt Service Fund is hereby created in the State Treasury. Moneys in the fund shall, among other things, as provided in this section, be dedicated to payment of debt service on bonds including bonds issued pursuant to the Clean Air and Transportation Improvement Act of 1990 (Part 11.5 (commencing with Section 99600) of Division 10 of the Public Utilities Code), the Passenger Rail and Clean Air Bond Act of 1990 (Chapter 17 (commencing with Section 2701) of Division 3 of the Streets and Highways Code),andthe Seismic Retrofit Bond Act of 1996 (Chapter 12.48 (commencing with Section 8879) of Division 1 of Title 2) , the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Chapter 12.49 (commencing with Section 8879.20) of Division 1 of Title 2), and the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century (Chapter 20 (commencing with Section 2704) of Division 3 of the Streets and Highways Code . If the moneys in the fund are insufficient to pay the balance of the debt consistent with existing obligations, the General Fund will be used to pay the balance of any debt service. (b) (1) From moneys transferred to the fund pursuant to subdivision (b) of Section 7103 of the Revenue and Taxation Code, the Director of Finance is hereby authorized to reimburse the General Fund for up to three hundred thirty-nine million two hundred eighty-nine thousand three hundred forty-five dollars ($339,289,345) for the purpose of offsetting the cost of debt service payments made from the General Fund during the 2007-08 fiscal year for public transportation-related general obligation bond expenditures in the following amounts: (A) Clean Air and Transportation Improvement Act of 1990, one hundred twenty-three million nine hundred seventy-three thousand four hundred ninety-three dollars ($123,973,493). (B) Passenger Rail and Clean Air Bond Act of 1990, seventy million nine hundred eighty-three thousand three hundred sixty-three dollars ($70,983,363). (C) Seismic Retrofit Bond Act of 1996, one hundred forty-four million three hundred thirty-two thousand four hundred eighty-nine dollars ($144,332,489). (2) From moneys transferred to the fund pursuant to subdivision (b) of Section 7103 of the Revenue and Taxation Code, the Director of Finance is hereby authorized to reimburse the General Fund in the 2007-08 fiscal year for two hundred million dollars ($200,000,000) for the purpose of offsetting the cost of debt service payments made in prior fiscal years from the General Fund for public transportation-related general obligation bond expenditures. (c) From moneys transferred to the fund pursuant tosubdivisionsubdivisions (c) and (d) of Section 7103 of the Revenue and Taxation Code, the Director of Finance is hereby authorized to reimburse the General Fund any amount necessary to offset the cost of debt service payments made from the General Fund during any fiscal year for transportation-related general obligation bond expenditures. (d) From moneys transferred to the fund pursuant to an annual Budget Act or other statute from the State Highway Account in the State Transportation Fund,or the Highway Users Tax Account in the Transportation Tax Fund, the Director of Finance is hereby authorized to reimburse the General Fund any amount necessary to offset the cost of debt service payments made from the General Fund during any fiscal year for transportation-related general obligation bond expenditures consistent with Article XIX of the California Constitution. SEC. 3. Section 27361 of the Government Code is amended to read: 27361. (a) The fee for recording and indexing every instrument, paper, or notice required or permitted by law to be recorded is four dollars ($4) for recording the first page and three dollars ($3) for each additional page, except the recorder may charge additional fees as follows: (1) If the printing on printed forms is spaced more than nine lines per vertical inch or more than 22 characters and spaces per inch measured horizontally for not less than three inches in one sentence, the recorder shall charge one dollar ($1) extra for each page or sheet on which printing appears, except, however, the extra charge shall not apply to printed words which are directive or explanatory in nature for completion of the form or on vital statistics forms. Fees collected under this paragraph are not subject to subdivision (b) or (c). (2) If a page or sheet does not conform with the dimensions described in subdivision (a) of Section 27361.5, the recorder shall charge three dollars ($3) extra per page or sheet of the document. The funds generated by the extra charge authorized under this paragraph shall be available solely to support, maintain, improve, and provide for the full operation for modernized creation, retention, and retrieval of information in each county's system of recorded documents. Fees collected under this paragraph are not subject to subdivision (b) or (c). (b) One dollar ($1) of each three dollar ($3) fee for each additional page shall be deposited in the county general fund. (c) Notwithstanding Section 68085, one dollar ($1) for recording the first page and one dollar ($1) for each additional page shall be available solely to support, maintain, improve, and provide for the full operation for modernized creation, retention, and retrieval of information in each county's system of recorded documents. For the 2009-10 and 2010- 11 fiscal years, any available funds attributable to the fee described in this subdivis ion may be loaned to the county road fund, in an amount not to exceed the amount of any fuel excise tax revenues diverted from the county in that fiscal year pursuant to statutory changes to the allocation of revenues from the Highway Users Tax Account enacted in 2009. (d) (1) In addition to all other fees authorized by this section, a county recorder may charge a fee of one dollar ($1) for recording the first page of every instrument, paper, or notice required or permitted by law to be recorded, as authorized by each county's board of supervisors. The funds generated by this fee shall be used only by the county recorder collecting the fee for the purpose of implementing a social security number truncation program pursuant to Article 3.5 (commencing with Section 27300). (2) A county recorder shall not charge the fee described in paragraph (1) after December 31, 2017, unless the county recorder has received reauthorization by the county's board of supervisors. A county recorder shall not seek reauthorization of the fee by the board before June 1, 2017, or after December 31, 2017. In determining the additional period of authorization, the board shall consider the review described in paragraph (4). (3) Notwithstanding paragraph (2), a county recorder who, pursuant to subdivision (c) of Section 27304, secures a revenue anticipation loan, or other outside source of funding, for the implementation of a social security number truncation program, may be authorized to charge the fee described in paragraph (1) for a period not to exceed the term of repayment of the loan or other outside source of funding. (4) A county board of supervisors that authorizes the fee described in this subdivision shall require the county auditor to conduct two reviews to verify that the funds generated by this fee are used only for the purpose of the program, as described in Article 3.5 (commencing with Section 27300) and for conducting these reviews. The reviews shall state the progress of the county recorder in truncating recorded documents pursuant to subdivision (a) of Section 27301, and shall estimate any ongoing costs to the county recorder of complying with subdivisions (a) and (b) of Section 27301. The board shall require that the first review be completed not before June 1, 2012, or after December 31, 2013, and that the second review be completed not before June 1, 2017, or after December 31, 2017. The reviews shall adhere to generally accepted accounting standards, and the review results shall be made available to the public. SEC. 4. Section 2102 of the Streets and Highways Code is amended to read: 2102. Net revenue derived from a tax means the amount of revenue derived from a tax that is deposited into the Highway Users Tax Account in the Transportation Tax Fund , less expenditures made from that account by the Controller for the purposes of administering the account . SEC. 5. Section 2103 of the Streets and Highways Code is amended to read: 2103. (a) At least 90 percent of the balance deposited to the credit of the Highway Users Tax Account in the Transportation Tax Fund by the 28th day of each month shall be apportioned by the State Controller by the second working day thereafter, except for June, in which case the apportionment shall be made the same day. These apportionments shall be made as provided for in Sections 2104 to 2122, inclusive. If information is not available to make the apportionment as required, the apportionment shall be made on the basis of the information of the previous month. Amounts not apportioned shall be included in the apportionment of the subsequent month. (b) Notwithstanding anything in subdivision (a) or this chapter to the contrary, for the 2009-10 and 2010-11 fiscal years, the net revenue in the Highway Users Tax Account in the Transportation Tax Fund shall be apportioned by the Controller as follows: (1) Sixty-five percent of net revenues shall be transferred to the State Highway Account in the State Transportation Fund for expenditure in accordance with Section 163. (2) Twenty-five percent of net revenues shall be transferred to the Transportation Debt Service Fund for the purpose of payment of principal and interest on voter-approved bonds, consistent with Section 5 of Article XIX of the California Constitution, subject to appropriation by the Legislature. (3) For the 2009-10 fiscal year only, an amount equal to 25 percent of the revenues received by the Department of Motor Vehicles from vehicle weight fees and deposited in the State Highway Account shall be transferred from net revenue in the Highway Users Tax Account to the Transportation Debt Service Fund for the purpose of payment of principal and interest on voter-approved bonds, consistent with Section 5 of Article XIX of the California Constitution, subject to appropriation by the Legislature. (4) The sum of six hundred thousand dollars ($600,000) per month shall be transferred to the Bicycle Transportation Account in the State Transportation Fund. (5) The sum appropriated by the Legislature in the annual Budget Act pursuant to Section 2107.7 shall be transferred to the State Parks and Recreation Fund. (6) The money remaining after the transfers in paragraphs (1) to (5), inclusive, shall be apportioned, as follows: (A) Fifty and eight-tenths percent of the funds available shall be apportioned among the counties, as follows: (i) Seventy-five percent of the funds payable under this subparagraph shall be apportioned among the counties monthly in the respective proportions that the number of fee-paid and exempt vehicles that are registered in each county bears to the total number of fee-paid and exempt vehicles registered in the state. In that regard, the Department of Motor Vehicles shall, as soon as possible after the last day of each calendar month, furnish to the Controller a verified statement showing the number of fee-paid and exempt vehicles that are registered in each county and in the state as of the last day of the calendar month as reflected by the records of the Department of Motor Vehicles. (ii) Twenty-five percent of the funds payable under this subparagraph shall be apportioned among the counties monthly in the respective proportions 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. (B) Forty-nine and two-tenths percent of the funds available shall be apportioned among the cities, including a city and county, in the respective proportions that the total population of the city bears to the total population of all of the cities in the state. (c) All other provisions of this chapter, to the extent not inconsistent with subdivision (b), shall continue to apply for the 2009-10 and 2010-11 fiscal years. (d) (1) Notwithstanding subdivision (b), the Director of Finance may, on the basis of extreme hardship, reduce or eliminate any amount of the reduction of apportionments to a county or city provided for in that subdivision for the 2009-10 fiscal year. Application for an exemption shall be made by December 15, 2009, in writing, in the manner prescribed by the Department of Finance, explaining the necessity therefor and providing information describing how the local agency meets the criteria in paragraph (2). The Director of Finance shall notify the Controller with regard to any granted exemption, and the Controller shall then be authorized to make an additional apportionment to the city or county consistent with that decision. Those additional apportioned revenues shall augment the apportionment the county or city receives pursuant to paragraph (6) of subdivision (b). An amount equal to the total additional apportionments authorized pursuant to this subdivision shall then be deducted from the amount to be transferred pursuant to paragraph (2) of subdivision (b), with those revenues to be used to make the additional apportionments. (2) In addition to considering the condition of the General Fund of the state and its current ability to support budgeted services, the Director of Finance shall consider all of the following factors in making a determination of extreme hardship: (A) Whether the requesting local agency is the subject of a current bankruptcy proceeding, or whether the full reduction amount otherwise required by subdivision (b) would likely cause the local agency to enter bankruptcy proceedings. (B) If the requesting local agency does not have financial reserves in excess of the amount of the reduction and the reduction would impair the ability of the local agency to provide a basic level of core public services funded by these revenues. (C) The extent to which the local agency has made reductions in its expenditures similar in nature and magnitude to those made in the state budget and has experienced local tax revenues that are significantly lower than the prior fiscal year. (e) Notwithstanding subdivision (b), a city that has received only the minimum four hundred thousand dollar ($400,000) allocation of Proposition 1B funds pursuant to subparagraph (B) of paragraph (1) of subdivision (l) of Section 8879.23 of the Government Code shall, for the 2009-10 fiscal year, be apportioned an amount equal to the full amount of revenues that it would have received under this chapter if this section had not been amended in the 2009-10 Fourth Extraordinary Session. The additional revenues apportioned to a city pursuant to this subdivision shall augment the apportionment the city receives pursuant to paragraph (6) of subdivision (b). An amount equal to the total additional apportionments authorized pursuant to this subdivision shall then be deducted from the amount to be transferred pursuant to paragraph (2) of subdivision (b), with those revenues to be used to make the additional apportionments. SEC. 6. Section 2104.1 of the Streets and Highways Code is amended to read: 2104.1. The Controller shall deduct annually, from the amount apportioned pursuant to Section 2104 or subparagraph (A) of paragraph (6) of subdivision (b) of Section 2103, as applicable , the amount identified as applicable to counties in the report submitted in the preceding fiscal year pursuant to Section 191, and shall transfer the amount to the State Highway Account. SEC. 7. Section 2106.3 of the Streets and Highways Code is amended to read: 2106.3. If Los Angeles County elects to allocate any portion of the revenues it receives pursuant toSection 2104 or 2106this chapter to the cities within the county under any program in which those revenues are allocated to at least 70 percent of the cities, it shall make allocations to each city within the county based on the two following equally weighted factors: (1) The population of the city to the total population of all the cities in the county. (2) The city street mileage to the total street mileage of all the cities in the county, as determined from the county master plan. SEC. 8. Section 2106.4 of the Streets and Highways Code is amended to read: 2106.4. From funds apportioned to the County of Los Angeles pursuant toSections 2104, 2105, and 2106this chapter , or from other transportation funds available to the county, or from any combination of those funds, as determined by the county, the county shall, beginning in the 1996-97 fiscal year, commence the annual transfer to the Los Angeles County Metropolitan Transportation Authority of funds in an amount calculated to amortize, in equal annual installments over a 5-year period, the amount by which fiscal realignment revenues deposited in the county general fund exceed fifty million dollars ($50,000,000). The highest priority for the use of the remaining funds apportioned to the county pursuant to this chapter shall be for safety and for maintenance of county facilities in urban areas with the highest backlog of maintenance and rehabilitation needs. SEC. 9. Section 2107.1 of the Streets and Highways Code is amended to read: 2107.1. Any city or city and county may apply to the United States Bureau of Census to determine its population. Upon receipt from the bureau of its determination of population, the city or city and county may, at its option, file a certified copy of the determination with the Controller. All apportionments and payments to a city or city and county made underSection 2107this chapter andall paymentsunder Section 11005 of the Revenue and Taxation Codefor any apportionment madebeginning with the month following the filing of the determination shall be based upon the population so determined until such time as a subsequent determination is made by the bureau and a certified copy is filed by the city or city and county with the Controller or a certified copy of a subsequent estimate or census result validated by the Department of Finance is filed with the Controller as provided in Section 2107.2. For the purposes of this section, a written or telegraphic certification from the Director of the Census to the Controller of the determination of population may be accepted by the Controller in lieu of the filing by the city or city and county of the certified copy of the determination. The cost of any determination by the United States Bureau of Census or by the Department of Finance is a proper charge against the city or city and county applying therefor and shall be paid by it to the bureau or to the department. This section does not apply to counties. SEC. 10. Section 2107.2 of the Streets and Highways Code is amended to read: 2107.2. Any city or city and county may apply to the population research unit of the Department of Finance to estimate its population or the population of any inhabited territory annexed to the city subsequent to the last federal or state census validated by the population research unit of the Department of Finance. The department may make the estimate if in the opinion of the department there is available adequate information upon which to base the estimate. The department may develop or contract for the development of additional information if, in the opinion of the department, additional information may make an estimate feasible. Not less than 25 days nor more than 30 days after the completion of the estimate, the Department of Finance shall file a certified copy thereof with the Controller if the estimate is greater than the current certified population. All apportionments and payments to a city or city and county underSection 2107this chapter andall paymentsunder Section 11005 of the Revenue and Taxation Codefor any apportionmentmade beginning with the month following the filing of the estimate shall be based upon the population so estimated until a subsequent estimate is made by the department and a certified copy is filed with the Controller or a subsequent determination is made by the United States Bureau of the Census and a certified copy is filed by the city or city and county with the Controller as provided in Section 2107.1. The Department of Finance may assess a reasonable charge, not to exceed the actual cost thereof, for the preparation of population estimates pursuant to this section, which is a proper charge against the city or city and county applying therefor. The amount received shall be deposited in the State Treasury as a reimbursement to be credited to the appropriation from which the expenditure is made. No more than one estimate of its total population shall be filed each fiscal year for each city or city and county. As of May 1, 1988, any population estimate prepared by the Department of Finance pursuant to Section 2227 of the Revenue and Taxation Code may be used for all purposes of this section unless a written request not to certify is received by the department from the city or city and county within 25 days of completion of the estimate. SEC. 11. Section 2107.3 of the Streets and Highways Code is amended to read: 2107.3. The incorporation of a new city, or any annexation or exclusion of territory to or from an existing city, shall be considered for the purpose of apportionment of funds to cities and cities and counties pursuant toSection 2107this chapter . The revenue shall be apportioned among the cities and cities and counties monthly as revenues are received in the Highway Users TaxFundAccount . Any newly incorporated city or any increase in population due to annexation shall be included in the monthly apportionment following such incorporation or annexation. In the event of the disincorporation of a city, or in the event the incorporation of a city is adjudged invalid, any funds apportioned pursuant toSection 2107this chapter tosuchthat city, butwhichthat are unexpended, shall revert to the Highway Users TaxFundAccount and shall be reapportioned to all other cities and cities and counties pursuant toSection 2107this chapter . The Controller shall not be required to reapportion funds previously apportioned for expenditure in the different cities of the state by reason of any subsequent incorporation, invalidation of incorporation, annexation or exclusion of territory. SEC. 12. Section 2107.6 of the Streets and Highways Code is amended to read: 2107.6. The Controller shall deduct annually, from the amount apportioned pursuant to Section 2107 or subparagraph (B) of paragraph (5) of subdivision (b) of Section 2103, as applicable , the amount identified as applicable to cities in the report submitted in the preceding fiscal year pursuant to Section 191, and shall transfer the amount to the State Highway Account. SEC. 13. Section 2109 of the Streets and Highways Code is amended to read: 2109. State highways shall be maintained, constructed, and improved out of the moneys received in the State Highway Account underSection 2108this chapter . Notwithstanding Section 81, the department is not required to maintain any route, or portion of a route, added after January 1, 1947, until it has been laid out and constructed as a state highway. SEC. 14. Section 2111 of the Streets and Highways Code is amended to read: 2111. Apportionments from the Highway Users TaxFundAccount under this chapter shall not be made to any incorporated city the streets of which are not public streets or which has not held an election of municipal officers within a period of 10 years preceding the date of such apportionment. Apportionments heretofore accumulated for expenditure within any such city shall be reapportioned to all other cities and cities and counties in the manner provided bySections 2106 and 2107, respectivelythis chapter . SEC. 15. Section 2112 of the Streets and Highways Code is amended to read: 2112. No money apportioned from the Highway Users TaxFund as provided in Section 2106 or 2107Account to cities or counties shall be used for the construction or improvement of any highway or street if the contract for such construction or improvement specifies the use of any patented or proprietary paving material, unless the contract has been awarded to the lowest responsible bidder therefor after alternate bids have been called for and opportunity afforded for bids to be submitted for nonpatented or nonproprietary paving material in competition with an equal thickness and like design of such patented or proprietary paving material. This section shall not be deemed nor construed to prohibit the use of any patented or proprietary paving material in the maintenance of any highway or street when such highway or street was constructed of such material and, in the opinion of the body, board or officer ordering such maintenance, it would be impractical to use a different paving material for such maintenance. SEC. 16. Section 2113 of the Streets and Highways Code is amended to read: 2113. No apportionment of money from the Highway Users TaxFund as provided in Section 2106 or 2107Account shall be made to a city unless the city has set up by ordinance a "special gas tax street improvement fund." All apportionments of such moneys shall be deposited in the "special gas tax street improvement fund." In making any expenditure a city shall follow the law governing it in regard to the doing of the particular type of work in cases which are not exclusively municipal affairs. No state officer or employee shall be liable for anything done, or omitted to be done, by any city in the performance of any work. Interest received by a city from the investment of money in its special gas tax street improvement fund shall be deposited in the fund and shall be used for street purposes. SEC. 17. Section 2114 of the Streets and Highways Code is amended to read: 2114. Contracts for any construction and improvement projects on city streets for which funds apportioned to cities from the Highway Users TaxFund as provided in Section 2106 or 2107Account may be expended during any fiscal year may be awarded on and after the first day of January preceding the beginning of the fiscal year. SEC. 18. Section 2115 of the Streets and Highways Code is amended to read: 2115. To permit the accomplishment of major cooperative street or highway projects in their entirety, the legislative body of a county or city may authorize the Controller to accumulate moneys accruing to the county or city over a period of time from the Highway Users TaxFund pursuant to Section 2106 or 2107Account .SECTION 1.It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2009.SEC. 2.SEC. 19. This act addresses the fiscal emergency declared by the Governor by proclamation on July 1, 2009, pursuant to subdivision (f) of Section 10 of Article IV of the California Constitution.