BILL ANALYSIS Ó
AB 427
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Date of Hearing: May 4, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 427 (John A. Perez) - As Amended: March 29, 2011
Policy Committee:
TransportationVote:12-0 (Consent)
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill allows for the redirection of the portion of
transportation bond monies authorized for transit system safety,
security, and disaster response. Specifically, this bill:
1)Requires an entity eligible to receive bond allocations for
mass transit or intercity rail systems to submit, within 45
days of the date the State Controller makes public the list of
eligible recipients, a document to the California Emergency
Management Agency (CEMA) indicating its intent to use the
funds. Authorizes CEMA to reallocate those funds from the
entity if the document is not submitted.
2)Requires CEMA to notify a transportation planning agency if
funds allocated to an entity within the region of the
transportation planning agency are being reallocated per (1),
and allows the transportation planning agency to distribute
the funds to transit operators or rail operators if the agency
provides a document to CEMA within 30 days indicating this
intent.
3)Authorizes CEMA, if the transportation planning agency does
not submit documents to CEMA within 30 days per (2), to
reallocate the funds on a competitive basis to an eligible
entity in a different region of the state.
4)Requires CEMA to annually report to the Legislature the
projects selected for funding, the status of those projects,
and a list of all transit agencies that have not used
allocated funds.
AB 427
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FISCAL EFFECT
Minor absorbable administrative costs for CEMA to implement the
bill's provisions. The bill does not expand allowable uses of
the fund, but might result in a reallocation of the available
funds among different entities. Reallocation to "shovel-ready"
projects could expedite their completion, resulting in overall
cost savings on those projects.
COMMENTS
1)Background . The Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006 (Proposition 1B)
authorized $19.925 billion in general obligation bonds for
various transportation-related purposes, including $1 billion
for capital improvements related to transit system safety,
security, and disaster response. Pursuant to SB 88 (Senate
Committee on Budget and Fiscal Review)/Chapter 181 or 2007,
the program is divided into three subprograms: 60% Mass
Transit Program, 25% Regional Public Water Transit Agency in
the Bay Area, 15% Intercity Rail.
2)Purpose . According to the author's office, "Current law does
not allow CEMA to re-direct funds in the event that an STA
eligible agency doesn't have need for the funding. This bill
allows bond funds to be re-directed to shovel ready projects
only in cases where the eligible agency signals that they do
not have needs for the funds."
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081