BILL NUMBER: ABX3 20 CHAPTERED
BILL TEXT
CHAPTER 21
FILED WITH SECRETARY OF STATE MARCH 27, 2009
APPROVED BY GOVERNOR MARCH 27, 2009
PASSED THE SENATE MARCH 23, 2009
PASSED THE ASSEMBLY MARCH 26, 2009
AMENDED IN SENATE MARCH 23, 2009
AMENDED IN ASSEMBLY JANUARY 7, 2009
INTRODUCED BY Assembly Member Bass
(Principal coauthors: Assembly Members Blumenfield, Eng, Ruskin,
and Torlakson)
(Principal coauthors: Senators Cedillo, DeSaulnier, and Lowenthal)
JANUARY 5, 2009
An act to add Article 12 (commencing with Section 8879.77) to
Chapter 12.491 of Division 1 of Title 2 of the Government Code, and
to add Chapter 9.5 (commencing with Section 2420) to Division 3 of
the Streets and Highways Code, relating to transportation, making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 20, Bass. Federal transportation economic stimulus funds.
Existing law generally provides for programming and allocation of
state and federal transportation capital improvement program funds
pursuant to the state transportation improvement program process
administered by the California Transportation Commission. Under these
provisions, 25% of available funds are available for interregional
improvement projects nominated by the Department of Transportation,
subject to a requirement that 60% of these funds be available for
projects in nonurbanized areas on the interregional road system and
for intercity rail projects. The remaining 75% of available funds are
available for regional improvement projects nominated by regional
agencies. All funds programmed through the state transportation
improvement program process are subject to the north-south split, and
the regional improvement funds are further subject to the county
shares formula.
Existing law provides for allocation of certain other
transportation capital improvement funds outside the state
transportation improvement program process, including federal
regional surface transportation improvement program funds, state bond
funds, funds set aside for state highway rehabilitation under the
state highway operation and protection program, and funds from
various other sources.
This bill would appropriate to the department, and provide for
programming and apportionment of, federal economic stimulus funds
made available to the state for highway purposes under the American
Recovery and Reinvestment Act of 2009. The bill would provide for
37.5% of the funds to be programmed by the department for allocation
by the commission, and for 62.5% of the funds to be apportioned to
the regional agencies based on the existing formula for allocation of
federal regional surface transportation improvement program funds.
The bill would require a portion of these funds to be programmed and
allocated for transportation enhancement activities and would
establish priorities in that regard. The bill would require the
department, from the funds to be programmed by the department, to
program a minimum of $935,000,000 for projects in the state highway
operation and protection program and would authorize not more than
$310,000,000 of those funds to be temporarily loaned by the
department to advance bond-funded projects pursuant to the Highway
Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of
2006 that meet certain requirements.
The bill would also provide for regional agency sponsors of
projects receiving bond funds under the Highway Safety, Traffic
Reduction, Air Quality, and Port Security Bond Act of 2006, if
federal funds, or federal funds and other funds under the control of
the regional or local agency, are used instead of the bond funds, to
select replacement projects for those bond funds. The bill would
enact reporting requirements and other related provisions.
The California Constitution authorizes the Governor to declare a
fiscal emergency and to call the Legislature into special session for
that purpose. The Governor issued a proclamation declaring a fiscal
emergency, and calling a special session for this purpose, on
December 19, 2008.
This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on December 19, 2008,
pursuant to the California Constitution.
This bill would declare that it is to take effect immediately as
an urgency statute.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 12 (commencing with Section 8879.77) is added
to Chapter 12.491 of Division 1 of Title 2 of the Government Code, to
read:
Article 12. Federal Transportation Economic Stimulus Funds
8879.77. (a) The department, with the approval of the Director of
Finance, may make a loan or loans from the State Highway Account of
federal funds made available to it pursuant to subparagraph (B) of
paragraph (2) of subdivision (b) of Section 2423 of the Streets and
Highways Code for purposes of advancing a project, or a portion of a
project, that has been programmed, on or before February 17, 2009, to
be funded by Chapter 12.49 (commencing with Section 8879.20) and
that is ready to be obligated within 120 days of federal
apportionment. The board, as defined in subdivision (a) of Section
8879.22, may request the department to make a loan or loans. The
aggregate amount of the request shall not exceed the amount of the
unsold bonds that the committee, as defined in subdivision (b) of
Section 8879.22, has, by resolution, authorized to be sold, less any
amount loaned pursuant to Section 8879.31 or withdrawn pursuant to
Section 8879.32. Any amount loaned shall be deposited in the fund, as
defined by subdivision (c) of Section 8879.22, and shall be
transferred to the appropriate account for the project, or portion of
a project, being advanced. Contracts for projects to be advanced
with loan funds shall be awarded within 180 days of federal
apportionment. The loan or loans shall be repaid without interest to
the State Highway Account from the proceeds of bonds sold pursuant to
Chapter 12.49 (commencing with Section 8879.20). The board shall
execute any documents as required by the department to obtain and
repay the loan or loans.
(b) Federal funds made available to the department pursuant to
subparagraph (B) of paragraph (2) of subdivision (b) of Section 2423
of the Streets and Highways Code, except for funds to be loaned to
eligible projects described in Section 8879.52, shall be allocated in
the manner provided in Section 188 of the Streets and Highways Code.
A loan may not be made pursuant to subdivision (a) if it would
necessarily result in the aggregate of those federal funds, excluding
funds to be loaned to eligible projects described in Section
8879.52, being allocated contrary to this subdivision.
(c) Upon repayment of a loan made pursuant to subdivision (a),
those funds are hereby appropriated to the department for use on
projects in the state highway operations and protection program.
8879.78. If a metropolitan planning organization, county
transportation commission, regional transportation planning agency,
or other local agency uses funds made available to it pursuant to
Section 2423 of the Streets and Highways Code, or pursuant to that
section and from other sources, to fund any project to which bond
funds were previously programed under this chapter with the effect of
displacing the need for those bond funds on the project, the
commission shall allocate funds for one or more qualifying projects
in the appropriate program under this chapter, in the jurisdiction of
that agency, and in the same amount of the displaced bond funds.
Nothing in this section shall limit or modify the requirements of any
program under Chapter 12.49 (commencing with Section 8879.20).
SEC. 2. Chapter 9.5 (commencing with Section 2420) is added to
Division 3 of the Streets and Highways Code, to read:
CHAPTER 9.5. FEDERAL TRANSPORTATION ECONOMIC STIMULUS FUNDS
2420. This chapter may be cited as the Transportation Economic
Stimulus Act of 2009.
2421. The Legislature finds and declares all of the following:
(a) Congress has enacted the American Recovery and Reinvestment
Act of 2009 (Public Law 111-5), which provides in part for
supplemental federal funding to the states for purposes of the
federal-aid highway program.
(b) It is in the interest of the state to ensure that the highway
infrastructure investment funds apportioned to the state under the
federal act are fully obligated within the constraints of that act.
(c) It is the intent of the Legislature that the department, in
consultation with the commission, regional transportation planning
agencies, counties, and cities, shall have sufficient authority to
make full and expeditious use of federal funds apportioned to the
state for economic stimulus.
(d) It is the intent of the Legislature that, to the extent
allowable under the federal act, priority be given to the use of
stimulus funds available for expenditure by the Department of
Transportation for projects that repair or rehabilitate the existing
transportation system and to advance funds for projects under the
Highway Safety, Traffic Reduction, Air Quality, and Port Security
Bond Act of 2006 that have been delayed or are in jeopardy of being
canceled due to the state's inability to issue general obligation
bonds in the short term. In the programming of these funds,
consideration shall be given to activities that put Californians to
work and provide needed economic stimulus throughout the state.
(e) It is the intent of the Legislature that highway
infrastructure investment funds made available under the American
Recovery and Reinvestment Act of 2009 are used to contribute to a
transportation system that is in sound structural condition,
accommodates all users, is environmentally sustainable, and allows
for the efficient mobility of goods and people.
(f) It is the intent of the Legislature that the deadlines for
obligating and liquidating funds established by the American Recovery
and Reinvestment Act of 2009 apply to all federal funds appropriated
by this chapter.
(g) It is the intent of the Legislature that the recipients of
highway infrastructure investment funds made available under the
federal act, including state, regional, and local agencies, shall
adhere to principles and policies that ensure government oversight
and management of the contracting process to ensure taxpayer funds
are spent wisely; contracts are not wasteful, inefficient, or subject
to misuse; unnecessary no-bid and cost-plus contracts are avoided;
and contracts are awarded according to the best interests of
California taxpayers.
(h) As used in this chapter, "federal act" shall mean the American
Recovery and Reinvestment Act of 2009.
2422. (a) Notwithstanding any other provision of law, the
Legislature hereby appropriates to the department the sum of two
billion five hundred sixty-nine million five hundred sixty-eight
thousand three hundred twenty dollars ($2,569,568,320), and any
additional funds, made available to the state as highway
infrastructure investment funds pursuant to Title XII of Division A
of the American Recovery and Reinvestment Act of 2009 and apportioned
to the state pursuant to Title 23 of the United States Code to carry
out projects eligible under that act and in accordance with this
chapter.
(b) The funds appropriated by this section shall be available for
obligation and expenditure by the dates specified in the federal
requirements implementing the federal act.
(c) It is the intent of the Legislature to allow for such
flexibility as is necessary to permit the successful implementation
of the appropriations made by this section. The Legislature hereby
authorizes the Department of Finance to appropriately itemize and
schedule these appropriations, or to make adjustments as are
necessary, in order to successfully carry out the intent of the
federal act.
(d) The Director of Finance shall, within 90 days after the
enactment of this chapter, furnish the chairpersons of the committees
in each house of the Legislature that consider appropriations and
the state budget, and the Chairperson of the Joint Legislative Budget
Committee, with a report that describes the schedule of funding. The
Director of Finance shall provide notification to the Legislature of
any changes in that schedule 30 days prior to any change taking
effect.
2423. (a) The federal highway infrastructure investment funds
made available to the state under the formula apportionments of the
American Recovery and Reinvestment Act of 2009 shall be considered
part of the surface transportation program as set forth in paragraphs
(3) and (4) of subdivision (d) of Section 133 of Title 23 of the
United States Code. These formula funds shall be apportioned 37.5
percent for expenditure by the state to be programmed by the
department and allocated by the commission, and 62.5 percent to the
metropolitan planning organizations, county transportation
commissions, and regional transportation planning agencies in
accordance with subdivisions (b) and (c) of Section 182.6.
(b) (1) Funds available to be programmed by the department
pursuant to subdivision (a) shall be programmed for eligible projects
consistent with the federal act and this chapter.
(2) (A) A minimum of nine hundred thirty-five million dollars
($935,000,000) of the funds available pursuant to paragraph (1) shall
be programmed for projects in the state highway operations and
protection program.
(B) Not more than three hundred ten million dollars ($310,000,000)
of the funds available pursuant to subparagraph (A) may be loaned
pursuant to Section 8879.77 of the Government Code to advance
projects to be funded with moneys from the Highway Safety, Traffic
Reduction, Air Quality, and Port Security Bond Act of 2006.
(c) Pursuant to the American Recovery and Reinvestment Act of
2009, 3 percent of the federal funds, which is approximately
seventy-seven million dollars ($77,000,000), made available to the
state shall be used for transportation enhancement activities. Funds
allocated pursuant to this section for transportation enhancement
activities are not subject to the requirements of the state
transportation improvement program. Any funds apportioned to the
state pursuant to paragraph (2) of subdivision (d) of Section 133 of
Title 23 of the United States Code shall be distributed such that
37.5 percent of these funds shall be made available to the department
and allocated by the commission and 62.5 percent shall be made
available to the metropolitan planning organizations, county
transportation commissions, and regional transportation planning
agencies in accordance with the formula in subdivisions (b) and (c)
of Section 182.6.
(1) In programming and allocating these funds, the department and
the metropolitan planning organizations, county transportation
commissions, and regional transportation agencies shall give priority
to the sponsors of eligible projects that partner with, or commit to
employ the services of, a community conservation corps or the
California Conservation Corps to construct or undertake the project,
provided those projects meet the requirements of the American
Recovery and Reinvestment Act of 2009.
(2) After all eligible projects have been selected pursuant to
paragraph (1), the department and the metropolitan planning
organizations, county transportation commissions, and regional
transportation agencies shall next give priority to projects that
provide facilities for pedestrians and bicyclists, provided those
projects meet the requirements of the American Recovery and
Reinvestment Act of 2009.
(3) After all eligible projects have been selected pursuant to
paragraph (2), the department and the metropolitan planning
organizations, county transportation commissions, and regional
transportation agencies may fund any project eligible in accordance
with paragraph (35) of subdivision (a) of Section 101 of Title 23 of
the United States Code.
(d) It is the intent of the Legislature that at least 40 percent
of the funds apportioned to a metropolitan planning organization,
county transportation commission, or regional transportation planning
agency be available for suballocation by that entity to a city,
county, or city and county for projects that meet the requirements of
the American Recovery and Reinvestment Act of 2009 and this chapter.
(1) Any funds suballocated by a metropolitan planning
organization, county transportation commission, or regional
transportation planning agency that will not be obligated by a city,
county, or city and county by the deadlines specified in the American
Recovery and Reinvestment Act of 2009 shall be reallocated and
available for expenditure as determined by the metropolitan planning
organization, county transportation commission, or regional
transportation planning agency.
(2) A metropolitan planning organization, county transportation
commission, or regional transportation agency that suballocates funds
to a city, county, or city and county under this chapter shall
establish reporting procedures for the city, county, or city and
county to ensure that funds are obligated and expended in accordance
with the American Recovery and Reinvestment Act of 2009 and this
chapter.
(e) (1) A metropolitan planning organization, county
transportation commission, or regional transportation planning agency
receiving funds under this chapter shall notify the department of
the projected amount of obligational authority that the entity
intends to use, including for funds that the entity suballocated to a
city, county, or city and county pursuant to subdivision (d). The
report shall include, but not be limited to, a list of projects that
will be obligated by the following deadlines:
(A) By June 1, 2009, for the funds required to be obligated within
120 days of federal apportionment.
(B) By February 1, 2010, for any funds that will not be obligated
within one year of federal apportionment.
(2) Any federal obligational authority that will not be used shall
be redistributed by the department to other projects in a manner
that ensures that the state will continue to compete for and receive
increased obligational authority during the federal redistribution of
obligational authority. To the extent practical, the funds shall be
obligated within the geographic areas relinquishing the obligational
authority.
(f) Funds apportioned by this chapter are not eligible to be
exchanged for nonfederal State Highway Account funds as provided in
subdivision (g) or (h) of Section 182.6.
(g) The public participation requirements under Title 23 of the
United States Code shall apply to all transportation projects using
federal funds made available pursuant to this chapter.
2424. (a) The department, metropolitan planning organizations,
county transportation commissions, regional transportation planning
agencies, counties, cities, and a city and county shall comply with
all reporting requirements to the Federal Highway Administration
(FHWA) established in federal law regarding funds made available
under the American Recovery and Reinvestment Act of 2009.
(b) In complying with the requirements of subdivision (a), the
department, metropolitan planning organizations, county
transportation commissions, regional transportation planning
agencies, counties, cities, and a city and county shall provide the
same data they provide to the FHWA to the department under the same
timelines required by the FHWA or federal law. Regional entities
shall include in the data provided to the department information on
the use of federal funds made available under the American Recovery
and Reinvestment Act of 2009 that were suballocated to cities and
counties within their jurisdiction.
(c) All jurisdictions that received and obligated or expended
federal funds for transportation enhancement activities pursuant to
federal law and this chapter shall include in the data they provide
to the department pursuant to subdivision (b) a description of the
number, value, and type of project that involved the participation of
a community conservation corps or the California Conservation Corps.
(d) The department, within 30 days of receiving the information
required pursuant to subdivisions (b) and (c), shall compile the
information and submit a report to the budget committees and policy
committees with jurisdiction over transportation matters in each
house of the Legislature.
SEC. 3. This act addresses the fiscal emergency declared by the
Governor by proclamation on December 19, 2008, pursuant to
subdivision (f) of Section 10 of Article IV of the California
Constitution.
SEC. 4. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to implement the expenditure of federal transportation
funds recently made available by Congress as part of the American
Recovery and Reinvestment Act of 2009 as quickly as possible, it is
necessary that this act take effect immediately.