BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 619
                                                                  Page  1

          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

              AB 619 (Blumenfield) - As Introduced:  February 25, 2009 

          Policy Committee:                               
          TransportationVote:13-0 (Consent)

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires Caltrans to notify the Legislature within 30  
          days of determining that a project will be delayed, because of  
          cash flow or other funding issues, if the delay places receipt  
          of federal funds at risk.

           FISCAL EFFECT  

          Minor absorbable costs for Caltrans to make the required  
          determinations and notifications, and potential protection of  
          federal funds due to timely action following the notification.

           COMMENTS  

           Purpose  .  Earlier this year, the state was faced with a  
          threatened loss of federal highway funds due to action by the  
          state Pooled Money Investment Board to freeze loans for  
          bond-funded projects.  An example is the project to widen a  
          segment of I-405 between Routes 10 and 101 in Los Angeles  
          County.  Federal funding participation for this project was  
          dependent on the project getting to construction by September  
          2009.  Ultimately, the Los Angeles County Metropolitan  
          Transportation Authority and Caltrans were successful in  
          cobbling together funding solutions to avoid delaying the  
          project.  This bill is intended to give the Legislature advance  
          notice of this type of looming funding issue that could result  
          in the loss of federal funds.  

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081