BILL ANALYSIS
AB 1203
Page 1
Date of Hearing: April 30, 2009
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Curren D. Price, Chairman
AB 1203 (Ma) - As Introduced: February 27, 2009
SUBJECT : Transportation bond funds: transit system safety
SUMMARY : This bill would require the California Emergency
Management Agency (Cal EMA), by February 1 of each fiscal year,
to select eligible applicants for transit system safety projects
from the Transit System Safety, Security, and Disaster Response
Account (Account) pursuant to the Highway Safety, Traffic
Reduction, Air Quality, and Port Security Bond Act of 2006
(Proposition 1B) and provide the Controller with a list of the
projects and sponsoring agencies eligible to receive an
allocation. Specifically, this bill :
1) Requires, no later than February 1 of each fiscal year,
Cal EMA to select eligible projects to receive grants under
the Account and shall provide the Controller with a list of
the projects and the sponsoring agencies eligible to
receive funding from the account. Upon receipt of this
information, the Controller's office shall commence any
necessary actions to allocate funds to those agencies,
including, but, not limited to, seeking the issuance of
bonds for that purpose [Government Code Section 8879.59
(f)].
2) Makes technical conforming changes to state law.
EXISTING LAW
1) Establishes the Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006 (Proposition
1B) and authorizes the issuance of $19.925 billion of
general obligation bond funds for the mobility, safety, and
air quality improvements, as specified.
2) Requires the deposit of $1 billion of the bond proceeds
in the Account to be used, upon appropriation, for capital
projects that provide increased protection against a
security and safety threat, and for capital expenditures to
increase the capacity of transit operators to develop
disaster response transportation systems that can move
AB 1203
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people, goods, and emergency personnel and equipment in the
aftermath of a disaster.
3) Requires the allocation of 25 percent of these funds for
capital expenditures to regional public waterborne transit
agencies authorized to operate a regional water transit
system and requires the Cal EMA to administer a grant
application and award program for transit agencies eligible
to receive funding.
4) Requires the Cal EMA to select eligible projects to
receive those grants by February 1 of each fiscal year in
which funds are used for this purpose.
FISCAL EFFECT : Unknown
COMMENTS : The Highway Safety, Traffic Reduction, Air Quality,
and Port Security Bond Act of 2006, approved by the voters as
Proposition 1B at the November 7, 2006, general election,
authorized the issuance of general obligation bonds for specified
purposes, including, but not limited to transit security
projects.
According to the author, this bill provides clarifying language
to allow the 25 percent waterborne element of the Transit System
Safety, Security and Disaster Response program to be administered
by way of an up-front grant allocation program, instead of a
reimbursable grant program.
Chapter 12.491, Article 6 of Division 1 of Title 2 of the
Government Code, titled: Implementation of the Highway Safety,
Traffic Reduction, Air Quality, and Bond Act of 2006, provides a
description of the eligibility criteria and program management
requirements for the Account funds.
Based on Article 6 requirements, 25 percent of available funds
are to be allocated to regional public waterborne transit
agencies for eligible capital expenditures that enhance the
capacity of regional public waterborne transit agencies to
provide disaster response transportation systems that can move
people, goods, and emergency personnel and equipment in the
aftermath of a disaster or emergency. These funds are awarded to
transit agencies through a reimbursable grant program, as opposed
to an up-front allocation of funds as is the procedure with the
majority of funds provided under this Article.
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State reimbursement processes are such that grant program
reimbursements for the 25 percent waterborne element have taken
several months to process, requiring the project sponsor to cash
flow the cumulative program costs over several months at a time.
This has required the project sponsor to tie up significant
amounts of cash to carry expenses while waiting for
reimbursement. Once project activity ramps up, it will be
impossible for the sponsor to carry the cost of project expenses
over multiple months due to limited cash on hand.
This bill provides clarifying language that directs the
administration of the 25 percent waterborne component of the
Account funds to be administered by way of an up-front
"allocation" of funds as opposed to on a reimbursement basis.
According to the author, this provides consistency with the way
in which 60 percent of the program funds are administered across
the state, and addresses recipient issues with long-lead times in
receiving state reimbursements.
REGISTERED SUPPORT / OPPOSITION :
Support
San Francisco Bay Area Water Transit Authority (WETA) (Sponsor)
California Conference Board of the Amalgamated Transit Union
California Conference of Machinists
International Longshore and Warehouse Union
California Labor Federation
California Teamsters Public Affairs Council
San Francisco Chamber of Commerce
Opposition
None on file
Analysis Prepared by : Rod Brewer / G. O. / (916) 319-2531