BILL NUMBER: AB 2620 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 22, 2010
AMENDED IN ASSEMBLY MAY 28, 2010
AMENDED IN ASSEMBLY MAY 6, 2010
AMENDED IN ASSEMBLY APRIL 26, 2010
AMENDED IN ASSEMBLY APRIL 8, 2010
INTRODUCED BY Assembly Member Eng
FEBRUARY 19, 2010
An act to add Section 149.05 to amend
Section 114.5 of the Streets and Highways Code, relating to
transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2620, as amended, Eng. Transportation: toll
facilities. Department of Transportation:
reimbursement for capital outlay support services.
Existing law provides that the Department of Transportation shall
have full possession and control of the state highway system and
associated property. Existing law provides for the
development of high-occupancy toll lanes on the state highway system
by regional transportation agencies under specified circumstances and
specifies the use of toll revenues generated from these facilities
cooperative agreements between the department and
public entities for the performance of work by the department and
those entities and apportionment of associated expenses .
This bill would require up to 15 percent of net toll
revenues, as specified, generated by certain toll facilities on the
state highway system to be dedicated to funding projects in the state
highway operation and protection program (SHOPP). The bill would
make legislative findings and declarations in that regard. The bill
would require those revenues to be used for SHOPP projects in the
transportation corridor in which the revenues are generated, but
would also authorize the department to apply jointly with the public
agency implementing the toll facility to the California
Transportation Commission to direct those revenues to other projects
on the state highway system within the county in which the toll
facility is located and the revenue is generated, including non-SHOPP
projects. This bill would not apply to toll facilities authorized in
statute on or before January 1, 2010 require the
reimbursement of the department when it performs capital outlay
support services, as defined, for a public agency or private entity
.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 114.5 is added to the
Streets and Highways Code , to read:
114.5. (a) For purposes of this section, the following terms have
the following meanings:
(1) "Capital outlay support services" means the performance of
project development services, including performance specifications,
preliminary engineering, prebid services, preparation of project
reports and environmental documents, design services, preparation of
plans, specifications, and estimates, construction inspection and
management services, surveying, materials testing, and related
functions.
(2) "Indirect overhead costs" means the pro rata share of existing
administrative salaries and benefits, rent, equipment costs,
utilities, and materials.
(b) When the department performs capital outlay support services
for any public agency or a private entity, it shall be reimbursed by
the agency or entity for the cost of staff salaries and benefits for
staff needed for the function and the cost of additional space,
equipment, and materials needed to perform the function. The
department shall not be reimbursed for indirect overhead costs unless
those costs can be attributed solely to the function and would not
exist if the function were not performed by the department. If the
department utilizes a contractor to provide part or all of the
capital outlay support services, the department shall be reimbursed
by the agency or entity for the cost of the contractor plus costs
that are directly associated with the contracted function, including,
but not limited to, advertising and awarding the contract,
inspection, supervision, and monitoring of the contractor.
SECTION 1. The Legislature finds and declares
all of the following:
(a) The level of funding available for maintenance, preservation,
and rehabilitation of the state highway system is straining the
ability to meet rehabilitation and preservation needs of the system.
(b) Rehabilitation and reconstruction needs on the state highway
system are increasing as the infrastructure ages.
(c) The continued increase in vehicle travel and goods movement
contributes to an increased rate of pavement and bridge
deterioration, new accident concentration locations, and increasing
hours of traffic congestion.
(d) Continued underfunding of maintenance, preservation, and
rehabilitation needs delays projects and increases the cost when the
work is eventually undertaken.
(e) Transportation agencies are increasingly interested in
developing tolled facilities on the state highway system, a
state-owned asset.
(f) At least a portion of the proceeds from tolled facilities
should be directed to maintenance, preservation, and rehabilitation
of the state highway system, which serves as a backbone to those
facilities.
SEC. 2. Section 149.05 is added to the Streets
and Highways Code, to read:
149.05. (a) Notwithstanding any other provision of law, up to 15
percent of net toll revenues generated by a toll facility on the
state highway system shall be dedicated to funding projects in the
state highway operation and protection program and as otherwise
provided in subdivision (c). For the purposes of this section, net
toll revenue shall include total revenues generated by the facility
after subtracting direct expenses related to the operation of the
facility, including collection and enforcement, maintenance, and
administration. Administrative costs shall not exceed 3 percent of
total revenues. This section shall not apply to toll facilities
authorized in statute on or before January 1, 2010.
(b) Toll facilities subject to this section shall be developed in
accordance with a cooperative agreement between the department and
the public agency that is developing the toll facility. The
cooperative agreement shall determine the appropriate percentage of
net toll revenues to be dedicated to projects in the state highway
operation and protection program pursuant to subdivision (a). Factors
to be considered in determining the appropriate percentage shall
include debt service and facility administration, operation, and
maintenance costs. The cooperative agreement between the department
and the other public agency shall provide for the payment of those
revenues to the department for deposit in the State Highway Account.
Those revenues shall be subject to appropriation by the Legislature
for purposes consistent with this section and shall not be subject to
borrowing or diversion for any other purpose.
(c) Toll revenues described in subdivision (a) that are dedicated
to the state highway operation and protection program shall be used
for projects in the corridor in which the revenues are generated. The
department and the affected public agency jointly may also apply to
the commission to direct those revenues to other projects on the
state highway system within the county in which the toll facility is
located and in which the revenues are generated, including projects
in capital programs other than the state highway operation and
protection program.