BILL NUMBER: SB 901	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Ashburn

                        JANUARY 26, 2010

   An act to amend Section 8879.501 of the Government Code, relating
to transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 901, as introduced, Ashburn. Transportation: bond funded
projects: letter of no prejudice.
   Existing law, the Highway Safety, Traffic Reduction, Air Quality,
and Port Security Bond Act of 2006, authorizes the issuance of
$19.925 billion of general obligation bonds for various
transportation purposes. Existing law designates the state agency
responsible for programming bond funds under the act as the
administrative agency for those purposes. Existing law authorizes a
regional or local agency that is a lead agency for a project or
project component, other than specified grade separation and railroad
crossing projects, for which bond funding has been programmed or
otherwise approved by the administrative agency or is otherwise
targeted to be available, as specified, to apply to the
administrative agency for a letter of no prejudice that makes the
regional or local agency eligible to be subsequently reimbursed from
bond funds for expenditures of funds under its control for the
project or project component under certain conditions, as specified.
   This bill would also authorize those regional and local agencies
to apply to the administrative agency for a letter of no prejudice
that would make the regional or local agencies eligible to be
subsequently reimbursed from bond funds for expenditures of funds
under their control for grade separation and railroad crossing
projects, as specified.
   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 8879.501 of the Government Code is amended to
read:
   8879.501.  (a) A regional or local agency that is a lead applicant
agency for a project that may be funded pursuant to Chapter 12.49
(commencing with Section 8879.20)  , other than a project
that may be funded pursuant to paragraph (1) of subdivision (j) of
Section 8879.23,  may apply to the administrative agency for
a letter of no prejudice for the project or a component of the
project. The administrative agency may approve the letter of no
prejudice for one or more projects or project components that the
administrative agency has programmed or otherwise approved for
funding. The letter of no prejudice shall reference the project or
component thereof and the amount of bond funding that is programmed
or otherwise approved for that project or project component or, in
the case of a project or project component eligible for funding under
subdivision (g) of Section 8879.23, the letter may reference the
amount of bond funding targeted to be received by the regional or
local agency pursuant to subdivision (f) of Section 8879.72. The
administrative agency may approve a letter of no prejudice regardless
of whether bond funding has been previously appropriated for
purposes of the project or project component.
   (b) Expenditures for the costs, up to the amount set forth in the
letter of no prejudice, of a project or project component for which a
letter of no prejudice has been issued shall be eligible for
reimbursement from the applicable bond proceeds fund or account if
all of the following apply:
   (1) The project or project component for which the letter of no
prejudice was requested has commenced and the regional or local
expenditures have been incurred.
   (2) The expenditures made by the regional or local agency are
eligible for reimbursement in accordance with state and federal laws
and procedures, and are permitted expenditures under the applicable
provisions of Chapter 12.49 (commencing with Section 8879.20). If
expenditures made are determined to be ineligible, then the state has
no obligation to reimburse for those expenditures.
   (3) The regional or local agency complies with all legal
requirements for the project, including the requirements of the
California Environmental Quality Act (Division 13 (commencing with
Section 21000) of the Public Resources Code).
   (4) The expenditures were incurred after the project or project
component was programmed or otherwise approved for funding by the
administrative agency.
   (5) There is in the applicable bond proceeds fund or account under
Chapter 12.49 (commencing with Section 8879.20) an appropriated
amount sufficient to make the reimbursement payment. Nothing in this
section requires any bond proceeds fund or account to be funded at
any particular time or in any particular amount.
   (c) The administrative agency and the regional or local agency may
enter into an agreement or agreements governing reimbursement as
described in this section.
   (d) The administrative agency, in consultation with regional and
local agencies, may develop guidelines to implement this section.
   (e) Nothing in this section modifies any requirement under Chapter
12.49 (commencing with Section 8879.23).
   (f) For purposes of this section, "letter of no prejudice" means
an agreement between a regional or local agency and the
administrative agency that makes eligible for future reimbursement
from bond proceeds the expenditure of funds under the control of the
regional or local agency, subject to availability of bond funds, as
provided in this section. The timing and final amount of
reimbursement is dependent on the terms of the agreement and the
availability of bond funds. The final amount of reimbursement may be
less than the amount stated in the letter of no prejudice.