Amended in Assembly June 12, 2013

Senate Bill No. 85

Introduced by Committee on Budget and Fiscal Review

January 10, 2013

begin delete An act relating to the Budget Act of 2013. end delete begin insert An act to amend Sections 14556.5, 16773, and 16965 of the Government Code, to add Chapter 5 (commencing with Section 185500) to Division 19.5 of, and to repeal and add Section 99310.6 of, the Public Utilities Code, to amend Section 7105 of, and to repeal and add Section 7104.3 of, the Revenue and Taxation Code, to amend Sections 183 and 183.1 of the Streets and Highways Code, and to amend Sections 9400.1, 9400.4, and 42205 of the Vehicle Code, relating to transportation, and making an appropriation therefor, to take effect immediately, bill related to the budget. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 85, as amended, Committee on Budget and Fiscal Review. begin delete Budget Act of 2013. end delete begin insert Transportation. end insert

begin insert

(1) Existing law authorizes general obligation bonds to be issued and sold under various transportation bond measures approved by the voters. Debt service for general obligation bonds is generally payable from the General Fund.

end insert begin insert

Existing law provides for the imposition of weight fees on certain vehicles. Revenues from weight fees, after administrative expenses, are available for expenditure from the State Highway Account. Under Article XIX of the California Constitution, weight fee revenues are restricted to expenditure on certain transportation purposes.

end insert begin insert

Existing law, beginning with the 2012-13 fiscal year, provides for the transfer to the Transportation Debt Service Fund of weight fee revenues deposited in the State Highway Account. These revenues are then transferred from the Transportation Debt Service Fund to the General Fund, as reimbursement for debt service on certain transportation general obligation bonds until all of the eligible debt service on those bonds has been reimbursed, or to redeem or defease bonds that are maturing in a subsequent fiscal year. Existing law also provides for a loan to the General Fund of any of these weight fee revenues that are not immediately needed for debt service reimbursement purposes, but provides for the loans to be repaid when those revenues are needed for debt service reimbursement purposes at a later time, as specified.

end insert begin insert

This bill would create a class of transportation general obligation bonds known as designated bonds, which would be a portion of the transportation general obligation bonds issued and sold pursuant to Proposition 1B of 2006. The bill would provide for transfer, pursuant to a certificate of the Treasurer, of a certain amount of weight fee revenue to the Transportation Debt Service Fund for the purpose of directly paying the debt service on the designated bonds, rather than providing for payment of the debt service indirectly through reimbursement of the General Fund. These weight fee revenues would be deposited in the newly created Transportation Bond Direct Payment Account in the Transportation Debt Service Fund and would be continuously appropriated for that purpose. To the extent the transferred weight fee revenues are insufficient to pay all the debt service on the designated bonds, the General Fund would remain responsible for the remaining debt service. The weight fee revenue to be used to pay debt service on the designated bonds would generally be the amount of weight fee revenue received by the Controller from the 15th day to the last day of each month. The remaining weight fee revenue would be used to pay the debt service on certain other transportation general obligation bonds. This bill would provide that the state covenants with bondholders of designated bonds that it will not alter, amend, or restrict the statutory provisions in this bill that provide for the transfer of weight fees to the Transportation Debt Service Fund or the Transportation Bond Direct Payment Account, and that it will not reduce weight fees below a specified amount on and after the first date that designated bonds are issued. The bill would enact other related provisions.

end insert begin insert

(2) Existing law provides that the Department of Finance may adjust the budgeting, accounting, and reporting systems for various transportation funds and accounts so that unliquidated encumbrances are not reflected in the fund balance or financial statements. These provisions apply to the Public Transportation Account, the State Highway Account, the Traffic Congestion Relief Fund, the Transportation Investment Fund, and the Transportation Deferred Investment Fund.

end insert begin insert

This bill would delete these provisions and instead provide that, upon order of the Department of Finance, all or some of the state agencies collecting revenues for, or spending from, each of these funds or accounts shall adjust budgeting, accounting, and reporting systems and documents so that unliquidated encumbrances, payables, and other accruals are not reflected in the fund balance in the Governor’s Budget fund condition display or the fund balance in the financial statements submitted to the Controller for the budgetary-legal basis annual report. In addition, this bill would provide that the balance of cash advanced from each of these funds and accounts to the Transportation Revolving Account shall be deemed available for budgeting purposes to certain funds and accounts, as specified.

end insert begin insert

(3) Existing law, the California High-Speed Rail Act, creates the High-Speed Rail Authority to develop and implement a high-speed rail system in the state, with specified powers and duties, including the power to enter into contracts, as specified.

end insert begin insert

This bill would provide legal procedures for the relocation of publicly and privately owned utility facilities, as defined, when the authority requires any utility to remove any utility facility lawfully maintained in the right-of-way of any high-speed rail property to a location entirely outside the high-speed rail property right-of-way subject to specified conditions. The bill would generally require the authority to pay the reasonable and necessary cost of the removal, including the cost of relocation to a new location outside of the high-speed rail property right-of-way, subject to specified credits.

end insert begin insert

The bill would authorize the authority and any utility to enter into a specified agreement or contract to remove or relocate any utility facility that provides for, among other things, the respective amounts of the cost to be borne by each party or that apportions the obligations and costs of each party. The bill would authorize each party to bring an action in a court of competent jurisdiction to adjudicate the obligations and costs to be borne by each party or in the event of a failure to reach an agreement as provided under these provisions.

end insert begin insert

The bill would also authorize the authority to issue permits to utilities for specified purposes, including applications of utilities for permits to occupy high-speed rail property for longitudinal locations of utility facilities.

end insert begin insert

(4) Existing law, in the 2010-11, 2011-12, and 2012-13 fiscal years, requires certain revenues deposited in the State Highway Account that are not restricted as to expenditure by Article XIX of the California Constitution to be transferred to the Transportation Debt Service Fund in the State Transportation Fund for payment of current year debt service on certain mass transportation bonds. Existing law, commencing with the 2013-14 fiscal year, requires that these revenues be retained in the State Highway Account until appropriated by the Legislature.

end insert begin insert

This bill would delete this latter requirement and, instead, commencing with the 2013-14 fiscal year, would require the Controller to transfer these revenues to the Transportation Debt Service Fund in the State Transportation Fund, as specified, and would continuously appropriate these funds for payment of current year debt service on certain mass transportation bonds.

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(5) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

end insert begin delete

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2013.

end delete

Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert begin insert

The Legislature finds and declares all of the
following:

end insert begin insert

(a) Voters of the state have previously approved Proposition
1B, the Highway Safety, Traffic Reduction, Air Quality, and Port
Security Bond Act of 2006 (bond act) to provide funding for needed
improvements in transportation infrastructure in the state.

end insert begin insert

(b) While the bond act provided that the debt service on bonds
would be paid from the General Fund, on March 24, 2011, the
Legislature enacted Assembly Bill 105 (Chapter 6, Statutes of
2011), which provided for reimbursement to the General Fund of
all debt service costs with respect to these bonds issued under the
bond act to come from vehicle weight fees generated under the
Vehicle Code.

end insert begin insert

(c) If debt service with respect to the bonds could be paid in the
first instance from vehicle weight fees, with the General Fund as
a backstop, creating “enhanced” transportation bonds, those
bonds would be expected to be able to obtain higher credit ratings
from the national credit rating agencies, resulting in lower interest
costs to the state. In addition, market demand for the enhanced
bonds potentially could lower the costs of other general obligation
bonds by reducing the supply of bonds being sold under the state’s
regular credit.

end insert begin insert

(d) The creation of enhanced transportation bonds is consistent
with the purposes of the bond act as it does not change the use of
bond proceeds or programs that are funded by any bonds issued
under the bond act. Moreover, it does not alter the rights of
bondholders but would serve to reduce debt service costs or
achieve additional benefits for the state in a manner that would
not violate any expectations of the voters and taxpayers who
approved the bond act.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 14556.5 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

14556.5.  

(a) The Traffic Congestion Relief Fund is hereby
created in the State Treasury. The fund shall include deposits of
funds provided in the annual Budget Act, provided from the
Transportation Investment Fund established under Section 7104
of the Revenue and Taxation Code, or provided under any other
statute. Notwithstanding Section 13340, the money in the fund is
hereby continuously appropriated to the department, without regard
to fiscal years, as follows:

(1) For allocation by the department, as directed by the
commission pursuant to Section 14556.20, to the department and
other regional and local transportation entities for the projects
listed in Article 5 (commencing with Section 14556.40).

begin delete

(2) For allocation by the Controller, the sum of four hundred
million dollars ($400,000,000), for allocation during the 2000-01
fiscal year to cities, counties, and cities and counties, pursuant to
Section 2182 of the Streets and Highways Code.

end delete begin delete

(3)

end delete

begin insert (2) end insert  For allocation by the commission to the funding exchange
program authorized by Section 182.8 of the Streets and Highways
Code.

begin delete

(b) Notwithstanding any other provision of law, the Department
of Finance may adjust the budgeting, accounting, and reporting
system for the fund so that unliquidated encumbrances are not
reflected in the fund balance or financial statements.

end delete begin insert

(b) (1) Notwithstanding any other provision of law, upon order
of the Department of Finance, all or some of the state agencies
collecting revenue for, or spending from, the Traffic Congestion
Relief Fund shall adjust budgeting, accounting, and reporting
systems and documents so that unliquidated encumbrances,
payables, and other accruals are not reflected in the fund balance
in the Governor’s Budget fund condition display or the fund
balance in the financial statements submitted to the Controller for
the Budgetary/Legal Basis Annual Report.

end insert begin insert

(2) For the purposes of the Governor’s Budget, the balance of
cash advanced from the Traffic Congestion Relief Fund to the
Transportation Revolving Account, as jointly determined by the
Department of Finance and the state agencies referenced in
paragraph (1), shall be deemed as resources and cash available
to the Traffic Congestion Relief Fund for budgeting purposes.

end insert begin insert

(3) This method shall be effective with the 2013-14 Governor’s
Budget development process and may be applied to the 2011-12
data.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 16773 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

16773.  

begin insert (a) end insert begin insert   end insert Whenever any payment of principal of any bonds
shall become due, either upon the maturity of any of the bonds or
upon the redemption thereof prior to maturity, and whenever any
interest on any of the bonds shall fall due, warrants shall be drawn
against the appropriation made by the bond act from the General
Fund by the Controller in favor of the Treasurer, or state fiscal
agents, or other duly authorized agents, pursuant to claims filed
with the Controller by the Treasurer, in the amounts so falling due.
begin delete For end delete

begin insert (b) end insert begin insert   end insert begin insert For end insert any payments of debt service, as defined in subdivision
(c) of Section 998.404 of the Military and Veterans Code, with
respect to any bonds issued pursuant to a veterans’ farm and home
purchase bond act adopted pursuant to Chapter 6 (commencing
with Section 980) of Division 4 of the Military and Veterans Code,
the Controller shall first draw warrants against the appropriation
from the Veterans’ Bonds Payment Fund in Section 988.6 of the
Military and Veterans Code, and, to the extent moneys in that fund
are insufficient to pay the amount of debt service then due, shall
draw warrants against the appropriation made by the bond act from
the General Fund for payment of any remaining amount then due.

begin insert

(c) (1) For any payments of debt service, as defined in
paragraph (4) of subdivision (a) of Section 16965, with respect to
any designated bonds issued pursuant to Proposition 1B, the
Controller shall first draw warrants against the appropriation
from the Transportation Bond Direct Payment Account of the
Transportation Debt Service Fund created by subdivision (a) of
Section 16965, and, to the extent moneys in that account are
insufficient to pay the amount of debt service then due, shall draw
warrants from the General Fund for payment of any remaining
amount then due against such appropriation as may be available
therefor, including the appropriation made by Proposition 1B.

end insert begin insert

(2) (A) For purposes of this subdivision and Section 16965,
“Proposition 1B” means the Highway Safety, Traffic Reduction,
Air Quality, and Port Security Bond Act of 2006 (Chapter 12.49
(commencing with Section 8879.20) of Division 1).

end insert begin insert

(B) For purposes of this subdivision, Section 16965, and Section
9400.4 of the Vehicle Code, the term “designated bond” means
any designated bond under Proposition 1B, and the term
“nondesignated bond” means any bond issued under Proposition
1B, whether issued before or after the enactment of the act adding
this subdivision, that is not a designated bond. For purposes of
this subdivision, a “designated bond” is an issue of bonds
(including refunding bonds) under Proposition 1B that has been
designated by the Treasurer upon or prior to its issuance, with the
approval of the related finance committee, to be paid pursuant to
paragraph (1).

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 16965 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

16965.  

(a)  begin insert (1) end insert begin insert   end insert The Transportation Debt Service Fund is hereby
created in the State Treasury. Moneys in the fund shall begin delete , among
other things, as provided in this section, end delete be dedicated to begin delete payment end delete
begin insert all of the following purposes: end insert

begin insert (A) end insert begin insert   end insert begin insert Payment end insert of debt service begin delete on bonds, or to redeem or defease end delete
begin insert with respect to designated bonds, as defined in subdivision (c) of
Section 16773, and as further provided in paragraph (3) and
subdivision (b). end insert

begin insert

(B) To reimburse the General Fund for debt service with respect
to bonds.

end insert

begin insert (C) end insert begin insert   end insert begin insert To redeem or retire end insert bonds, pursuant to Section 16774,
maturing in a subsequent fiscal begin delete year, including end delete begin insert year. end insert

begin insert (2) end insert begin insert   end insert begin insert The bonds eligible under subparagraph (B) or (C) of
paragraph (1) include end insert bonds issued pursuant to the Clean Air and
Transportation Improvement Act of 1990 (Part 11.5 (commencing
with Section 99600) of Division 10 of the Public Utilities Code),
the Passenger Rail and Clean Air Bond Act of 1990 (Chapter 17
(commencing with Section 2701) of Division 3 of the Streets and
Highways Code), the Seismic Retrofit Bond Act of 1996 (Chapter
12.48 (commencing with Section 8879) of Division 1 of Title 2),
begin delete the Highway Safety, Traffic Reduction, Air Quality, and Port
Security Bond Act of 2006 (Chapter 12.49 (commencing with
Section 8879.20) of Division 1 of Title 2), end delete and the Safe, Reliable
High-Speed Passenger Train Bond Act for the 21st Century
(Chapter 20 (commencing with Section 2704) of Division 3 of the
Streets and Highways Code) begin insert , and nondesignated bonds under
Proposition 1B, as defined in subdivision (c) of Section 16773 end insert . begin delete If
the moneys in the fund are insufficient to pay the balance of the
debt consistent with existing obligations, the General Fund will
be used to pay the balance of any debt service. end delete

begin insert

(3) (A) The Transportation Bond Direct Payment Account is
hereby created in the State Treasury, as a subaccount within the
Transportation Debt Service Fund, for the purpose of directly
paying the debt service, as defined in paragraph (4), of designated
bonds of Proposition 1B, as defined in subdivision (c) of Section
16773. Notwithstanding Section 13340, moneys in the
Transportation Bond Direct Payment Account are continuously
appropriated for payment of debt service with respect to designated
bonds as provided in subdivision (c) of Section 16773. So long as
any designated bonds remain outstanding, the moneys in the
Transportation Bond Direct Payment Account may not be used
for any other purpose, and may not be borrowed by or available
for transfer to the General Fund pursuant to Section 16310 or any
similar law, or to the General Cash Revolving Fund pursuant to
Section 16381 or any similar law.

end insert begin insert

(B) Once the Treasurer makes a certification that payment of
debt service with respect to all designated bonds has been paid or
provided for, any remaining moneys in the Transportation Bond
Direct Payment Account shall be transferred back to the
Transportation Debt Service Fund.

end insert begin insert

(C) The moneys in the Transportation Bond Direct Payment
Account shall be invested in the Surplus Money Investment Fund,
and all investment earnings shall accrue to the account.

end insert begin insert

(D) The Controller may establish subaccounts within the
Transportation Bond Direct Payment Account as may be required
by the resolution, indenture, or other documents governing any
designated bonds.

end insert begin insert

(4) For purposes of this subdivision and subdivision (b), and
subdivision (c) of Section 16773, “debt service” means payment
of all of the following costs and expenses with respect to any
designated bond:

end insert begin insert

(A) The principal of and interest on the bonds.

end insert begin insert

(B) Amounts payable as the result of tender on any bonds, as
described in clause (iv) of subparagraph (B) of paragraph (1) of
subdivision (d) of Section 16731.

end insert begin insert

(C) Amounts payable under any contractual obligation of the
state to repay advances and pay interest thereon under a credit
enhancement or liquidity agreement as described in clause (iv) of
subparagraph (B) of paragraph (1) of subdivision (d) of Section
16731.

end insert begin insert

(D) Any amount owed by the state to a counterparty after any
offset for payments owed to the state on any hedging contract as
described in subparagraph (A) of paragraph (2) of subdivision (d)
of Section 16731.

end insert

(b) From begin insert the end insert moneys transferred to the fund pursuant to
begin insert paragraph (2) or (3) of end insert subdivision begin delete (a), (b), or end delete (c) of Section 9400.4
of the Vehicle Code, begin delete or end delete begin insert there shall first be deposited into the
Transportation Bond Direct Payment Account in each month end insert
begin insert sufficient funds to equal the amount designated in a certificate
submitted by the Treasurer to the Controller and the Director of
Finance at the start of each fiscal year, and as may be modified
by the Treasurer thereafter upon issuance of any new issue of
designated bonds or upon change in circumstances that requires
such a modification. This certificate shall be calculated by the
Treasurer to identify, for each month, the amount necessary to
fund all of the debt service with respect to all designated bonds.
This calculation shall be done in a manner provided in the
resolution, indenture, or other documents governing the designated
bonds. In the event that transfers to the Transportation Bond Direct
Payment Account in any month are less than the amounts required
in the Treasurer’s certificate, the shortfall shall carry over to be
part of the required payment in the succeeding month or months. end insert

begin insert

(c) The state hereby covenants with the holders from time to
time of any designated bonds that it will not alter, amend, or
restrict the provisions of subdivision (c) of Section 16773 of the
Government Code, or Sections 9400, 9400.1, 9400.4, and 42205
of the Vehicle Code, which provide directly or indirectly for the
transfer of weight fees to the Transportation Debt Service Fund
or the Transportation Bond Direct Payment Account, or
subdivisions (a) and (b) of this section, or reduce the rate of
imposition of vehicle weight fees under Sections 9400 and 9400.1
of the Vehicle Code as they existed on the date of the first issuance
of any designated bonds, if that alteration, amendment, restriction,
or reduction would result in projected weight fees for the next
fiscal year determined by the Director of Finance being less than
two times the maximum annual debt service with respect to all
outstanding designated bonds, as such calculation is determined
pursuant to the resolution, indenture, or other documents governing
the designated bonds. The state may include this covenant in the
resolution, indenture, or other documents governing the designated
bonds.

end insert

begin insert (d) end insert begin insert   end insert begin insert Once the required monthly deposit, including makeup of
any shortfalls from any prior month, has been made pursuant to
subdivision (b), from moneys transferred to the fund pursuant to
paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
Vehicle Code, or end insert pursuant to Section 16965.1 or 63048.67, the
Controller shall transfer as an expenditure reduction to the General
Fund any amount necessary to offset the cost of current year debt
service payments made from the General Fund begin delete on end delete begin insert with respect to end insert
any bonds issued pursuant to Proposition 192 (1996) and
three-quarters of the amount of current year debt service payments
made from the General Fund begin delete on any bonds end delete begin insert with respect to any
nondesignated bonds, as defined in subdivision (c) of Section
16773, end insert issued pursuant to Proposition 1B (2006). begin delete These end delete begin insert In the
alternative, these end insert funds may also be used to redeem or begin delete defease end delete
begin insert retire end insert the applicable bonds, pursuant to Section 16774, maturing
in a subsequent fiscal year as directed by the Director of Finance.

begin delete

(c)

end delete

begin insert (e) end insert  From moneys transferred to the fund pursuant to Section
183.1 of the Streets and Highways Code, the Controller shall
transfer as an expenditure reduction to the General Fund any
amount necessary to offset the cost of current year debt service
payments made from the General Fund begin delete on end delete begin insert with respect to end insert any
bonds issued pursuant to Proposition 116 (1990). begin delete These end delete begin insert In the
alternative, these end insert funds may also be used to redeem or begin delete defease end delete
begin insert retire end insert the applicable bonds, pursuant to Section 16774, maturing
in a subsequent fiscal year as directed by the Director of Finance.

begin delete

(d) From

end delete

begin insert (f) end insert begin insert   end insert begin insert Once the required monthly deposit, including makeup of any
shortfalls from any prior month, has been made pursuant to
subdivision (b), from end insert moneys transferred to the fund pursuant to
begin insert paragraph (2) or (3) of end insert subdivision begin delete (a), (b), or end delete (c) of Section 9400.4
of the Vehicle Code, or pursuant to Section 16965.1 or 63048.67,
the Controller shall transfer as an expenditure reduction to the
General Fund any amount necessary to offset the begin insert eligible end insert cost of
current year debt service payments made from the General Fund
begin delete on end delete begin insert with respect to end insert any bonds issued pursuant to Proposition 108
(1990) and Proposition 1A (2008), and one-quarter of the amount
of current year debt service payments made from the General Fund
begin delete on any bonds end delete begin insert with respect to any nondesignated bonds, as defined
in subdivision (c) of Section 16773, end insert issued pursuant to Proposition
1B (2006). The Department of Finance shall notify the Controller
by July 30 of every year of the percentage of debt service that is
expected to be paid in that fiscal year begin delete on end delete begin insert with respect to end insert
bond-funded projects that qualify as eligible guideway projects
consistent with the requirements applicable to the expenditure of
revenues under Article XIX of the California Constitution begin insert , and
the Controller shall make payments only for those eligible projects end insert .
begin delete These end delete begin insert In the alternative, these end insert funds may also be used to redeem
or begin delete defease end delete begin insert retire end insert the applicable bonds, pursuant to Section 16774,
maturing in a subsequent fiscal year as directed by the Director of
Finance.

begin delete

(e)

end delete

begin insert (g) end insert  On or before the second business day following the date on
which transfers are made to the Transportation Debt Service Fund begin insert ,
and after the required monthly deposits for that month, including
makeup of any shortfalls from any prior month, have been made
to the Transportation Bond Direct Payment Account, end insert the Controller
shall transfer the funds designated for begin insert reimbursement of end insert bond debt
service begin insert with respect to nondesignated bonds, as defined in
subdivision (c) of Section 16773, and other bonds identified in
subdivisions (d), (e), and (f) end insert in that month from the fund to the
General Fund pursuant to this section.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 99310.6 of the end insert begin insert Public Utilities Code end insert begin insert is
repealed. end insert

begin delete

99310.6.  

Notwithstanding any other provision of law, the
Department of Finance may adjust the budgeting, accounting, and
reporting system for the Public Transportation Account so that
unliquidated encumbrances are not reflected in the fund balance
or financial statements.

end delete

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 99310.6 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 99310.6. end insert   

(a) Notwithstanding any other provision of law, upon
order of the Department of Finance, all or some of the state
agencies collecting revenue for, or spending from, the Public
Transportation Account shall adjust budgeting, accounting, and
reporting systems and documents so that unliquidated
encumbrances, payables, and other accruals are not reflected in
the fund balance in the Governor’s Budget fund condition display
or the fund balance in the financial statements submitted to the
Controller for the budgetary-legal basis annual report.

(b) For the purposes of the Governor’s Budget, the balance of
cash advanced from the Public Transportation Account to the
Transportation Revolving Account, as jointly determined by the
Department of Finance and the state agencies referenced in
subdivision (a), shall be deemed as resources and cash available
to the Public Transportation Account for budgeting purposes.

(c) This method shall be effective with the 2013-14 Governor’s
Budget development process and may be applied to the 2011-12
data.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Chapter 5 (commencing with Section 185500) is added
to Division 19.5 of the end insert begin insert Public Utilities Code end insert begin insert , to read: end insert

begin insert

 

Chapter   begin insert 5. end insert Relocation of Utilities

 

begin insert 185500. end insert   

(a) “High-speed rail property” means real property
or an interest therein, including any right-of-way, previously or
hereafter acquired by the state for high-speed rail purposes.

(b) “Person” means a natural person, firm, partnership,
association, corporation, organization, limited liability company,
or business trust, and includes any city, county, city and county,
public corporation, or public district.

(c) “Utility” means any person maintaining a utility facility.

(d) “Utility facility” means any pole, pole line, pipe, pipeline,
conduit, cable, aqueduct, or other structure or appurtenance
thereof used for publicly or privately owned utility services or used
by any mutual organization supplying water or telephone service
to its members.

begin insert 185501. end insert   

(a) When the authority requires any utility to remove
any utility facility lawfully maintained in the right-of-way of any
high-speed rail property to a location entirely outside the
high-speed rail property right-of-way, the authority shall pay the
reasonable and necessary cost of the removal. This includes both
the cost of removal and the cost of relocation to a new location
outside of the high-speed rail property right-of-way.

(b) This section does not apply to the relocation of a utility
facility from one point in a high-speed rail property to another
point in that property, including relocation in any service road of
the high-speed rail property or from one point of crossing of the
high-speed rail property to another reasonable point of crossing.

begin insert 185502. end insert   

(a) When the authority requires a publicly owned
utility to relocate within a high-speed rail property any utility
facility lawfully maintained in that property that was not used for
high-speed rail purposes at the time the utility facility was
originally installed, the authority shall pay the cost of the
relocation.

(b) When the authority requires a privately owned utility to
relocate within a high-speed rail property any utility facility used
solely to supply water, which facility is lawfully maintained in any
high-speed rail property that was not used for high-speed rail
purposes at the time that the utility facility was originally installed,
the authority shall pay the cost of the relocation.

(c) When the authority requires a privately owned utility to
relocate within a high-speed rail property any utility facility, other
than one used solely to supply water, which facility is lawfully
maintained in any high-speed rail property that was not used for
high-speed rail purposes at the time the utility facility was
originally installed, and it is established by the utility that the
utility is not under express contractual obligation to relocate the
utility facility at its own expense, the authority shall pay the cost
of the relocation.

(d) A permit containing a contractual obligation that was
accepted by the utility for maintenance or minor improvement of
the facility after the property became high-speed rail property
shall not constitute a contractual obligation to relocate a utility
facility at its own expense within the meaning of this section.

(e) Publicly owned sewers and fire hydrants and any street
lighting structure, whether publicly or privately owned, in any
high-speed rail property shall be relocated, where necessary, at
the expense of the authority.

begin insert 185503. end insert   

If the authority requires the relocation within the
right-of-way of any utility facility more than once within a period
of 10 years, the authority shall pay the cost of the second relocation
and any subsequent relocation within the 10-year period.

begin insert 185504. end insert   

(a) In any case in which the authority is required
under the provisions of this chapter to pay the cost of removal or
relocation of any utility facility, it shall be entitled to the following
credits:

(1) In the amount of any betterment to the utility facility resulting
from the removal or relocation, not in excess of the cost of the
increased capacity of the facility.

(2) The salvage value of any materials or parts salvaged and
retained by the utility.

(3) If a new utility facility or portion of that facility is
constructed to accomplish the removal or relocation, an allowance
of an amount equal to the same proportion of the original cost of
the displaced utility facility or portion of that facility as the age
of the facility bears to the normal expected life of the facility.

(b) A credit shall not be allowed against any portion of the cost
that is otherwise chargeable to the utility.

(c) A credit allowance for age shall not be applied to publicly
owned sewers.

begin insert 185505. end insert   

(a) The authority and any utility required to remove
a utility facility or to relocate any utility facility may, by agreement,
provide for the respective amounts of the cost to be borne by each.
The authority may, without prejudice to its rights under Section
185506, advance the cost of removal or relocation, and, if the
authority advances that cost, it is the duty of the utility to move its
facilities as soon as reasonably possible so as not to delay
high-speed rail construction. In the case of any utility that is not
financially able to bear the costs of removal or relocation, the
authority may by agreement provide for the work to be done on
condition that the utility’s portion of the costs be repaid to the
authority over a period of time not exceeding 10 years.

(b) Either party may maintain an action in a court of competent
jurisdiction for an adjudication as to the obligations and costs to
be borne by each party under any contract entered into by the
parties at any time within four years after the cause of action first
arose. The cause of action shall be deemed to arise at the time of
the completion by the utility of the removal or relocation in
question, or at the time of a breach of the agreement by either
party, whichever occurs first. The filing of a claim with a state
agency shall not be deemed a condition precedent to the
maintenance by the utility of an action under this subdivision.

begin insert 185506. end insert   

In the event of failure to reach an agreement as
provided in Section 185505, the utility or the authority may bring
an action in a court of competent jurisdiction for apportionment
of the cost between them in accordance with this chapter. This
action shall be commenced within three years of the date of
completion by the utility of the removal or relocation in question.
The filing of a claim with a state agency shall not be deemed a
condition precedent to the maintenance by the utility of an action
pursuant to this section.

begin insert 185507. end insert   

(a) The authority and any utility as defined in Section
185500 may enter into a contract providing for or apportioning
the obligations and costs to be borne by each party as to either or
both of the following subject matters:

(1) Any or all removals or relocations of utility facilities
completed by the utility prior to the effective date of the contract
as required by notice given by the authority when necessary to
accommodate any or all state high-speed rail construction, where:
(A) the obligations or costs to be borne by each party for a removal
or relocation are in dispute; and (B) the claim of the utility is: (i)
founded upon a removal or relocation completed by the utility not
earlier than three years preceding the effective date of the contract;
or (ii) involved in an action pending in a court of competent
jurisdiction if the action was commenced within three years after
completion by the utility of the removal or relocation in question.

(2) Any or all removals or relocations of utility facilities to be
undertaken or completed by the utility after the effective date of
the contract as required by notice given by the authority when
necessary to accommodate any or all state high-speed rail
construction.

(b) Those provisions of a contract authorized in paragraph (1)
of subdivision (a) settling the claims of the parties in respect to
removals or relocations of utility facilities completed by the utility
prior to the effective date of the contract shall be irrevocable after
the execution of the contract, unless changed or modified by mutual
consent of the parties in writing. Either party may maintain an
action in a court of competent jurisdiction upon any of the
provisions of the contract at any time within two years after the
effective date of the contract, and the utility need not file a claim
with a state agency as a condition precedent to the maintenance
of an action under this subdivision.

(c) Those provisions of a contract dealing with removals or
relocations of utility facilities to be undertaken or completed by
the utility after the effective date of the contract, as authorized in
paragraph (2) of subdivision (a), shall be subject to the following
limitations and requirements:

(1) While the contract remains in effect, the contract shall
govern exclusively the determination of the obligations and costs
to be borne by each party in regard to any removal or relocation
covered by the contract and undertaken or completed by the utility
after the effective date of the contract, whether notice of the
necessity of the removal or relocation was given by the authority
to the utility before or after the effective date of the contract. This
chapter, as now or hereafter existing, and any and all other laws
that would be applicable to the subject matter but for the contract
shall not apply, except that laws may be referred to, retained, and
made applicable by the contract. This paragraph shall not apply
in the following circumstances:

(A) If, before the effective date of a contract entered into under
this section, the parties executed an agreement in respect to the
obligations and costs to be borne by each party as to a particular
removal or relocation under a notice given by the authority, the
provisions of such an agreement shall govern as to the obligations
and costs to be borne by each party in respect to that particular
removal or relocation.

(B) If a particular notice given by the authority before the
effective date of a contract entered into under this section includes
a determination that a removal or relocation is to be made at the
expense of the utility, the utility shall be bound by that notice unless
the utility advised the authority in writing of its disagreement with
the determination within the time specified in an agreement then
in effect between the authority and the utility in respect to the
procedure to be followed in those cases, or, if there is no such
agreement, within a reasonable time after receipt by the utility of
the notice.

(2) Either party may maintain an action in a court of competent
jurisdiction for an adjudication as to the obligations and costs to
be borne by each party under the contract at any time within four
years after the cause of action first arose. The cause of action shall
be deemed to arise at the time of the completion by the utility of
the removal or relocation in question. The filing of a claim with
a state agency shall not be deemed a condition precedent to the
maintenance by the utility of an action under this paragraph.

(3) The contract shall terminate upon the repeal of this section,
the repeal of paragraph (2) of subdivision (a) and subdivision (c),
or at the time or in the manner as may be provided in the contract.
In the event of termination under this paragraph, the laws
applicable to the subject matter of the contract existing at the time
of termination shall thereafter govern, except that the terms of the
contract shall continue to apply to removals or relocations required
of the utility by the authority under notice mailed or delivered to
the utility prior to the termination, whether work upon the removal
or relocation has already commenced, is in progress, or has been
completed.

begin insert 185508. end insert   

A utility is entitled to a permit for such reasonable
crossings of high-speed rail property as may be required for the
proper discharge of the utility’s service to the public.

begin insert 185509. end insert   

The authority shall exercise reasonable discretion in
acting on applications of utilities for permits to occupy high-speed
rail property for longitudinal locations of facilities, as may be
required for the proper discharge of their services to the public.
The authority may, however, refuse to grant an application for a
longitudinal installation that would be inconsistent with public
safety or the continued unobstructed use of the high-speed rail
property for rail or vehicular traffic, or for any type of utility
structure inconsistent with the aesthetic values of any landscaped
high-speed rail property within, or approaching within, one mile
of the limits of any city.

begin insert 185510. end insert   

The authority, in acting upon applications for utility
permits, shall consider both the interests of the traveling public
upon the high-speed rail property and the needs of consumers for
utility services.

begin insert 185511. end insert   

Nothing in this chapter is intended to prevent the
authority from making reasonable rules and regulations and
requiring reasonable conditions in permits concerning the place,
manner, and method of location of utility facilities in, under, over,
or along high-speed rail property.

end insert

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 7104.3 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

7104.3.  

Notwithstanding any other provision of law, the
Department of Finance may adjust the budgeting, accounting, and
reporting system for the Transportation Investment Fund so that
unliquidated encumbrances are not reflected in the fund balance
or financial statement.

end delete

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 7104.3 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 7104.3. end insert   

(a) Notwithstanding any other provision of law, upon
order of the Department of Finance, all or some of the state
agencies collecting revenue for, or spending from, the
Transportation Investment Fund shall adjust budgeting,
accounting, and reporting systems and documents so that
unliquidated encumbrances, payables, and other accruals are not
reflected in the fund balance in the Governor’s Budget fund
condition display or the fund balance in the financial statements
submitted to the Controller for the budgetary-legal basis annual
report.

(b) For the purposes of the Governor’s Budget, the balance of
cash advanced from the Transportation Investment Fund to the
Transportation Revolving Account, as jointly determined by the
Department of Finance and the state agencies referenced in
subdivision (a), shall be deemed as resources and cash available
to the Transportation Investment Fund for budgeting purposes.

(c) This method shall be effective with the 2013-14 Governor’s
Budget development process and may be applied to the 2011-12
data.

end insert

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 7105 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
amended to read: end insert

7105.  

(a) The Transportation Deferred Investment Fund is
hereby created in the State Treasury. The Transportation Deferred
Investment Fund is to be considered part of the Transportation
Investment Fund, except as specifically required for accounting
purposes, in order to facilitate the repayment and allocation of
revenues consistent with paragraph (1) of subdivision (f) of Section
1 of Article XIX B of the California Constitution as provided in
this section and Section 7106.

(b) Pursuant to Section 14557 of the Government Code, the
transfer of revenues from the General Fund to the Transportation
Investment Fund that would have otherwise been required under
subdivision (a) of Section 1 of Article XIX B of the California
Constitution was partially suspended for the 2003-04 fiscal year.
The amount of the transfer for the 2003-04 fiscal year was two
hundred eighty-nine million dollars ($289,000,000). According to
the State Board of Equalization calculations, with the concurrence
of the Department of Finance, the amount of the transfer suspended
for the 2003-04 fiscal year was eight hundred sixty-seven million
five hundred sixty-eight thousand dollars ($867,568,000). On or
before June 30 of each fiscal year until June 30, 2016, the
Controller shall transfer an amount from the General Fund to the
Transportation Deferred Investment Fund that is equal to the
minimum repayment required by Article XIX B of the California
Constitution. The repayment shall also include interest calculated
at the Pooled Money Investment Account rate relative to the
amounts that would otherwise have been available for the
transportation programs described in paragraphs (2) to (5),
inclusive, of subdivision (c) of Section 7104. The amount to be
repaid by June 30, 2016, from the General Fund to the
Transportation Deferred Investment Fund shall be reduced by the
amount of any payment made to the Transportation Deferred
Investment Fund from any funding source, excluding subdivision
(d). The moneys deposited in the Transportation Deferred
Investment Fund pursuant to this subdivision are continuously
appropriated without regard to fiscal years for disbursement in the
manner and for the purposes set forth in this section.

(c) The Controller, from the moneys deposited in the
Transportation Deferred Investment Fund pursuant to subdivision
(b) and Article XIX B of the California Constitution, shall make
transfers and apportionments of those funds in the same manner
and amounts that would have been made in the 2003-04 fiscal
year from the Transportation Investment Fund pursuant to Section
7104, as that section read on January 1, 2003, if the transfer of
funds from the General Fund to the Transportation Investment
Fund had not been partially suspended for the 2003-04 fiscal year
pursuant to Section 14557 of the Government Code, except that
in the 2007-08 fiscal year any remaining principle or interest owed
to the Public Transportation Account shall be repaid first before
any other transfers are made. However, in making those transfers
and apportionments, the Controller shall take into account and
deduct therefrom any transfers and apportionments that were made
from the Transportation Investment Fund in the 2003-04 fiscal
year from funds made available pursuant to subdivision (b) of
Section 14557 of the Government Code. It is the intent of the
Legislature that, upon completion of the transfer of funds pursuant
to subdivision (b) from the General Fund to the Transportation
Deferred Investment Fund, each of the transportation programs
that was to have been funded during the 2003-04 fiscal year from
the Transportation Investment Fund pursuant to Section 7104 of
this code shall have received the amount of funding that the
program would have received in the absence of the suspension of
the transfer pursuant to Section 14557 of the Government Code.

(d) The interest that is to be deposited in the Transportation
Deferred Investment Fund pursuant to subdivision (b) shall be
allocated proportionately to each program element in paragraphs
(2) to (5), inclusive, of subdivision (c) of Section 7104, based on
the amount that each program did not receive in the 2003-04 fiscal
year due to suspension of the transfer pursuant to Section 14557
of the Government Code.

(e) Four hundred ninety-five million dollars ($495,000,000) is
hereby appropriated from the General Fund to the Transportation
Deferred Investment Fund for the purpose of paying a portion of
the amount required to be paid pursuant to subdivision (b). The
Controller shall make the payment immediately upon enactment
of the statute amending this section in the 2005-06 Regular
Session. Notwithstanding subdivision (c), these funds, shall be
distributed as follows:

(1) The first one hundred ninety-two million dollars
($192,000,000) and any interest due pursuant to this section shall
remain in the Transportation Deferred Investment Fund to be used
for projects in the State Transportation Improvement Program
pursuant to paragraph (3) of subdivision (c) of Section 7104.

(2) The next one hundred ninety-two million dollars
($192,000,000) and any interest due pursuant to this section shall
be distributed to cities and counties, as follows:

(A) Ninety-six million dollars ($96,000,000) and any interest
due pursuant to this section shall be transferred to cities for the
purposes specified in Section 7104 pursuant to the formula in
paragraph (5) of subdivision (c) of that section.

(B) Ninety-six million dollars ($96,000,000) and any interest
due pursuant to this section shall be transferred to counties for the
purposes specified in Section 7104 pursuant to the formula in
paragraph (4) of subdivision (c) of that section.

(3) Ninety-six million dollars ($96,000,000) and any interest
due pursuant to this section shall be transferred to the Public
Transportation Account for allocation pursuant to Section 99312
of the Public Utilities Code.

(4) Any funds remaining following the distributions required
by paragraphs (1), (2), and (3) shall be transferred to the Traffic
Congestion Relief Fund, and shall be deemed to be funds received
by that fund in the 2003-04 fiscal year.

(f) The Legislature finds and declares that continued investment
in transportation is essential for the California economy. That
investment reduces traffic congestion, assists in economic
development, improves the condition of local streets and roads,
and provides high-quality public transportation.

begin delete

(g) Notwithstanding any other provision of law, the Department
of Finance may adjust the budgeting, accounting, and reporting
system for the Transportation Deferred Investment Fund so that
unliquidated encumbrances are not reflected in the fund balance
or financial statement.

end delete begin insert

(g) (1) Notwithstanding any other provision of law, upon order
of the Department of Finance, all or some of the state agencies
collecting revenues for, or spending from, the Transportation
Deferred Investment Fund shall adjust budgeting, accounting, and
reporting systems and documents so that unliquidated
encumbrances, payables, and other accruals are not reflected in
the fund balance in the Governor’s Budget fund condition display
or the fund balance in the financial statements submitted to the
Controller for the budgetary-legal basis annual report.

end insert begin insert

(2) For the purposes of the Governor’s Budget, the balance of
cash advanced from the Transportation Deferred Investment Fund
to the Transportation Revolving Account, as jointly determined by
the Department of Finance and the state agencies referenced in
paragraph (1), shall be deemed as resources and cash available
to the Transportation Deferred Investment Fund for budgeting
purposes.

end insert begin insert

(3) This method shall be effective with the 2013-14 Governor’s
Budget development process and may be applied to the 2011-12
data.

end insert

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 183 of the end insert begin insert Streets and Highways Code end insert begin insert is
amended to read: end insert

183.  

(a) All money in the State Highway Account in the State
Transportation Fund derived from federal sources or from
appropriations to other state agencies, or deposited in the account
by local agencies or by others, is continuously appropriated to,
and shall be available for expenditure by, the department for the
purposes for which the money was made available.

Unless otherwise expressly provided for by law, none of the
balance of the money in the State Highway Account shall be
expended until it has been specifically appropriated by the
Legislature or made available pursuant to Section 13322 of the
Government Code.

The Budget Act appropriations shall be made on a program basis
only and shall not identify the specific capital outlay projects to
be funded. The commission shall be responsible for allocating the
funds to specific projects within the budget program categories,
except that all funds described in Chapter 5 (commencing with
Section 2200) of Division 3 shall be allocated on a program basis
to the department for allocation pursuant to that chapter.

(b) Notwithstanding subdivision (a), commencing with the
1985-86 Budget, the department shall submit with its budget
requests a detailed description of the acquisition, improvement,
and construction of office building projects to the Legislature for
review. The total amount appropriated for those projects shall be
identified as a separate line item in the Budget Act. Funds
appropriated for those projects shall be allocated by the commission
only for projects which have been approved by the Legislature.
Minor projects are to be defined consistent with Section 167. The
commission may substitute for approved minor projects, if the
total sum of minor projects is within the amount approved by the
Legislature.

begin delete

(c) Notwithstanding any other provision of law, the Department
of Finance may adjust the budgeting, accounting, and reporting
system for the State Highway Account so that unliquidated
encumbrances are not reflected in the fund balance or financial
statements.

end delete begin insert

(c) (1) Notwithstanding any other provision of law, upon order
of the Department of Finance, all or some of the state agencies
collecting revenues for, or spending from, the State Highway
Account shall adjust budgeting, accounting, and reporting systems
and documents so that unliquidated encumbrances, payables, and
other accruals are not reflected in the fund balance in the
Governor’s Budget fund condition display or the fund balance in
the financial statements submitted to the Controller for the
budgetary-legal basis annual report.

end insert begin insert

(2) For the purposes of the Governor’s Budget, the balance of
cash advanced from the State Highway Account to the
Transportation Revolving Account, as jointly determined by the
Department of Finance and the state agencies referenced in
paragraph (1), shall be deemed as resources and cash available
to the Transportation Deferred Investment Fund for budgeting
purposes.

end insert begin insert

(3) This method shall be effective with the 2013-14 Governor’s
Budget development process and may be applied to the 2011-12
data.

end insert

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 183.1 of the end insert begin insert Streets and Highways Code end insert begin insert is
amended to read: end insert

183.1.  

(a) Notwithstanding subdivision (a) of Section 182 or
any other provision of law, money deposited into the account that
is not subject to Article XIX of the California Constitution,
including, but not limited to, money that is derived from the sale
of documents, charges for miscellaneous services to the public,
condemnation deposits fund investments, rental of state property,
or any other miscellaneous uses of property or money, may be
used for any transportation purpose authorized by statute, upon
appropriation by the Legislature or, after transfer to another fund,
upon appropriation by the Legislature from that fund.

(b)  begin delete In the 2010-11, 2011-12, and 2012-13 fiscal years, end delete
begin insert Commencing with the 2013-14 fiscal year, end insert and not later than
November 1 of each begin delete of those years, end delete begin insert fiscal year thereafter, end insert based
on prior year financial statements, the Controller shall transfer the
funds identified in subdivision (a) for the prior fiscal year begin insert from
the State Highway Account end insert to the Transportation Debt Service
Fund in the State Transportation Fund begin insert , and those funds are
continuously appropriated for the purposes specified for the
Transportation Debt Service Fund end insert .

begin delete

(c) Commencing with the 2013-14 fiscal year, the revenues
identified in subdivision (a) shall remain in the State Highway
Account until appropriated by the Legislature.

end delete

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 9400.1 of the end insert begin insert Vehicle Code end insert begin insert is amended to
read: end insert

9400.1.  

(a) (1) In addition to any other required fee, there
shall be paid the fees set forth in this section for the registration
of commercial motor vehicles operated either singly or in
combination with a declared gross vehicle weight of 10,001 pounds
or more. Pickup truck and electric vehicle weight fees are not
calculated under this section.

(2) The weight of a vehicle issued an identification plate
pursuant to an application under Section 5014, and the weight of
an implement of husbandry as defined in Section 36000, shall not
be considered when calculating, pursuant to this section, the
declared gross vehicle weight of a towing commercial motor
vehicle that is owned and operated exclusively by a farmer or an
employee of a farmer in the conduct of agricultural operations.

(3) Tow trucks that are utilized to render assistance to the
motoring public or to tow or carry impounded vehicles shall pay
fees in accordance with this section, except that the fee calculation
shall be based only on the gross vehicle weight rating of the towing
or carrying vehicle. Upon each initial or transfer application for
registration of a tow truck described in this paragraph, the
registered owner or lessee or that owner’s or lessee’s designee,
shall certify to the department the gross vehicle weight rating of
the tow truck:

 

Gross Vehicle Weight Range	Fee
10,001-15,000	$ 257
15,001-20,000	353
20,001-26,000	435
26,001-30,000	552
30,001-35,000	648
35,001-40,000	761
40,001-45,000	837
45,001-50,000	948
50,001-54,999	1,039
55,000-60,000	1,173
60,001-65,000	1,282
65,001-70,000	1,398
70,001-75,000	1,650
75,001-80,000	1,700

 

(b) The fees specified in subdivision (a) apply to both of the
following:

(1) An initial or original registration occurring on or after
December 31, 2001, to December 30, 2003, inclusive, of a
commercial motor vehicle operated either singly or in combination
with a declared gross vehicle weight of 10,001 pounds or more.

(2) The renewal of registration of a commercial motor vehicle
operated either singly or in combination, with a declared gross
vehicle weight of 10,001 pounds or more for which registration
expires on or after December 31, 2001, to December 30, 2003,
inclusive.

(c) (1) For both an initial or original registration occurring on
or after December 31, 2003, of a commercial motor vehicle
operated either singly or in combination with a declared gross
vehicle weight of 10,001 pounds or more, and the renewal of
registration of a commercial motor vehicle operated either singly
or in combination, with a declared gross vehicle weight of 10,001
pounds or more for which registration expires on or after December
31, 2003, there shall be paid fees as follows:

 

Gross Vehicle Weight Range	Weight Code	Fee
10,001-15,000	A	$ 332
15,001-20,000	B	447
20,001-26,000	C	546
26,001-30,000	D	586
30,001-35,000	E	801
35,001-40,000	F	937
40,001-45,000	G	1,028
45,001-50,000	H	1,161
50,001-54,999	I	1,270
55,000-60,000	J	1,431
60,001-65,000	K	1,562
65,001-70,000	L	1,701
70,001-75,000	M	2,004
75,001-80,000	N	2,064

 

(2) For the purpose of obtaining “revenue neutrality” as
described in Sections 1 and 59 of Senate Bill 2084 of the
1999-2000 Regular Session (Chapter 861 of the Statutes of 2000),
the Director of Finance shall review the final 2003-04 Statement
of Transactions of the State Highway Account. If that review
indicates that the actual truck weight fee revenues deposited in the
State Highway Account do not total at least seven hundred
eighty-nine million dollars ($789,000,000), the Director of Finance
shall instruct the department to adjust the schedule set forth in
paragraph (1), but not to exceed the following fee amounts:

 

Gross Vehicle Weight Range	Weight Code	Fee
10,001-15,000	A	$ 354
15,001-20,000	B	482
20,001-26,000	C	591
26,001-30,000	D	746
30,001-35,000	E	874
35,001-40,000	F	1,024
40,001-45,000	G	1,125
45,001-50,000	H	1,272
50,001-54,999	I	1,393
55,000-60,000	J	1,571
60,001-65,000	K	1,716
65,001-70,000	L	1,870
70,001-75,000	M	2,204
75,001-80,000	N	2,271

 

(d) (1) In addition to the fees set forth in subdivision (a), a
Cargo Theft Interdiction Program fee of three dollars ($3) shall
be paid at the time of initial or original registration or renewal of
registration of each motor vehicle subject to weight fees under this
section.

(2) This subdivision does not apply to vehicles used or
maintained for the transportation of persons for hire, compensation
or profit, and tow trucks.

(3) For vehicles registered under Article 4 (commencing with
Section 8050) of Chapter 4, the fee imposed under this subdivision
shall be apportioned as required for registration fees under that
article.

(4) Funds collected pursuant to the Cargo Theft Interdiction
Program shall not be proportionately reduced for each month and
shall be transferred to the Motor Carriers Safety Improvement
Fund.

(e) Notwithstanding Section 42270 or any other provision of
law, of the moneys collected by the department under this section,
one hundred twenty-two dollars ($122) for each initial, original,
and renewal registration shall be reported monthly to the Controller,
and at the same time, deposited in the State Treasury to the credit
of the Motor Vehicle Account in the State Transportation Fund.
All other moneys collected by the department under this section
shall be deposited to the credit of the State Highway Account in
the State Transportation Fund begin insert , or directly to the credit of the
Transportation Debt Service Fund as provided in paragraph (2)
of subdivision (c) of Section 9400.4, as applicable end insert . One hundred
twenty-two dollars ($122) of the fee imposed under this section
shall not be proportionately reduced for each month. For vehicles
registered under Article 4 (commencing with Section 8050) of
Chapter 4, the fee shall be apportioned as required for registration
under that article.

(f) (1) The department, in consultation with the Department of
the California Highway Patrol, shall design and make available a
set of distinctive weight decals that reflect the declared gross
combined weight or gross operating weight reported to the
department at the time of initial registration, registration renewal,
or when a weight change is reported to the department pursuant
to Section 9406.1. A new decal shall be issued on each renewal
or when the weight is changed pursuant to Section 9406.1. The
decal for a tow truck that is subject to this section shall reflect the
gross vehicle weight rating or weight code.

(2) The department may charge a fee, not to exceed ten dollars
($10), for the department’s actual cost of producing and issuing
each set of decals issued under paragraph (1).

(3) The weight decal shall be in sharp contrast to the background
and shall be of a size, shape, and color that is readily legible during
daylight hours from a distance of 50 feet.

(4) Each vehicle subject to this section shall display the weight
decal on both the right and left sides of the vehicle.

(5) A person may not display upon a vehicle a decal issued
pursuant to this subdivision that does not reflect the declared weight
reported to the department.

(6) Notwithstanding subdivision (e) or any other provision of
law, the moneys collected by the department under this subdivision
shall be deposited in the State Treasury to the credit of the Motor
Vehicle Account in the State Transportation Fund.

(7) This subdivision shall apply to vehicles subject to this section
at the time of an initial registration, registration renewal, or reported
weight change that occurs on or after July 1, 2004.

(8) The following shall apply to vehicles registered under the
permanent fleet registration program pursuant to Article 9.5
(commencing with Section 5301) of Chapter 1:

(A) The department, in consultation with the Department of the
California Highway Patrol, shall distinguish the weight decals
issued to permanent fleet registration vehicles from those issued
to other vehicles.

(B) The department shall issue the distinguishable weight decals
only to the following:

(i) A permanent fleet registration vehicle that is registered with
the department on January 1, 2005.

(ii) On and after January 1, 2005, a vehicle for which the
department has an application for initial registration as a permanent
fleet registration vehicle.

(iii) On and after January 1, 2005, a permanent fleet registration
vehicle that has a weight change pursuant to Section 9406.1.

(C) The weight decal issued under this paragraph shall comply
with the applicable provisions of paragraphs (1) to (6), inclusive.

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 9400.4 of the end insert begin insert Vehicle Code end insert begin insert is amended to
read: end insert

9400.4.  

Weight fee revenue deposited into the State Highway
Account pursuant to subdivision (e) of Section 9400.1 and
begin insert subdivision (a) of end insert Section 42205 begin insert net of amounts appropriated for
other purposes pursuant to subdivision (b) of Section 42205, and
weight fee revenues deposited directly into the Transportation
Debt Service Fund pursuant to subdivision (e) of Section 9400.1
and subdivision (a) of Section 42205, as applicable, end insert shall be used
as follows:

(a) For the 2010-11 fiscal year, seven hundred fifty-six million
three hundred ninety-six thousand dollars ($756,396,000) is hereby
appropriated from weight fee revenues in the State Highway
Account for transfer to the General Fund as transportation bond
debt service reimbursement and loans as follows:

(1) The Controller shall transfer all weight fee revenues
deposited into the State Highway Account in any month to the
Transportation Debt Service Fund for transfer to the General Fund
as reimbursement for debt service costs until all of the debt service
paid on transportation bonds for projects that the Director of
Finance indicates qualify for reimbursement as provided for in
Section 16965 of the Government Code have been reimbursed.

(2) After the Director of Finance has notified the Controller that
all debt service costs for the 2010-11 fiscal year have been
reimbursed, the Controller shall transfer any remaining monthly
weight fee revenues in the State Highway Account to the General
Fund as a loan until the full amount appropriated in this subdivision
has been transferred to the General Fund. The Director of Finance
may repay any remaining portion of the outstanding balance of
this loan in any year in which the Director of Finance determines
the funds are needed to reimburse the General Fund for current
year transportation bond debt service or to redeem or begin delete defease end delete begin insert retire end insert
those bonds, pursuant to Section 16774 of the Government Code,
maturing in a subsequent fiscal year, provided that the loans shall
be repaid no later than June 30, 2021. All funds loaned pursuant
to this section, upon repayment to the State Highway Account,
shall be immediately transferred by the Controller to the
Transportation Debt Service Fund for use pursuant to Section
16965 of the Government Code.

(3) By June 15, 2011, the Director of Finance in consultation
with the Treasurer shall notify the Controller regarding the final
amount of debt service paid from the General Fund during the
2010-11 fiscal year pursuant to Section 16965 of the Government
Code and shall direct the Controller to reverse and adjust any
transfers made as debt service reimbursements or loans so that a
maximum amount of transfers are made for debt service
reimbursements and with any loan amounts limited to the
difference between this amount and the total amount appropriated
in this subdivision. The total amount of weight fee revenues
transferred from the State Highway Account for the 2010-11 fiscal
year shall not be greater than the total amount of weight fee
revenues deposited into the State Highway Account for that year.

(4) With respect to transfers or portions of transfers that cannot
be made in any given month if weight fee revenues are insufficient,
the first weight fee revenues available in the following month or
months shall be used to complete the transfers for the previous
month or months prior to making additional transfers for later
months.

(b) For the 2011-12 fiscal year, all revenue generated from
weight fees in the State Highway Account, as determined by
Sections 9400.1 and 42205, excluding an amount equal to the loan
of forty-three million seven hundred thousand dollars
($43,700,000) authorized pursuant to Item 2660-013-0042 of
Section 2.00 of the Budget Act of 2011, is hereby appropriated for
transfer to the General Fund as debt service reimbursement and
loans as follows:

(1) The Controller shall transfer all weight fee revenues
deposited into the State Highway Account in any month to the
Transportation Debt Service Fund for transfer to the General Fund
as reimbursement for debt service costs until all of the debt service
paid on transportation bonds for projects that the Director of
Finance indicates qualify for reimbursement as provided for in
Section 16965 of the Government Code have been reimbursed.

(2) After the Director of Finance has notified the Controller that
all debt service costs for the 2011-12 fiscal year have been
reimbursed, the Controller shall transfer any remaining weight fee
revenues for that fiscal year in the State Highway Account to the
General Fund as a loan until all weight fee revenues for that fiscal
year appropriated in this subdivision have been transferred to the
General Fund, excluding forty-two million dollars ($42,000,000),
which shall be transferred to the General Fund as a loan on July
1, 2012. The Director of Finance may repay any portion of the
balance of this loan in any year in which the Director of Finance
determines the funds are needed to reimburse the General Fund
for current year transportation bond debt service or to redeem or
begin delete defease end delete begin insert retire end insert those bonds, pursuant to Section 16774 of the
Government Code, maturing in a subsequent year, provided that
the loans shall be repaid no later than June 30, 2021. All funds
loaned pursuant to this section, upon repayment to the State
Highway Account, shall be immediately transferred by the
Controller to the Transportation Debt Service Fund for use pursuant
to Section 16965 of the Government Code.

(3) By June 15, 2012, the Director of Finance in consultation
with the Treasurer shall notify the Controller regarding the final
amount of debt service paid from the General Fund during the
2011-12 fiscal year pursuant to Section 16965 of the Government
Code and shall direct the Controller to reverse and adjust any
transfers made as debt service reimbursements or loans so that a
maximum amount of transfers are made for debt service
reimbursements and with any loan amounts limited to the
difference between this amount and the total amount appropriated
in this subdivision. The total amount of weight fee revenues
transferred from the State Highway Account for the 2011-12 fiscal
year shall not be greater than the total amount of weight fee
revenues deposited into the State Highway Account in that year.

(4) With respect to transfers or portions of transfers that cannot
be made in any given month if weight fee revenues are insufficient,
the first weight fee revenues available in the following month or
months shall be used to complete the transfers for the previous
month or months prior to making additional transfers for later
months.

(c) (1)  begin delete Starting with the 2012-13 fiscal year and every year
thereafter end delete begin insert (A) end insert begin insert   end insert begin insert Until the month of first issuance of designated bonds
as defined in subdivision (c) of Section 16773 of the Government
Code, and at any time thereafter that a Treasurer’s certification
pursuant to subparagraph (B) of paragraph (3) of subdivision (a)
of Section 16965 of the Government Code applies end insert , all weight fee
revenues begin delete deposited into the State Highway Account in any month end delete
begin insert subject to this section in any month end insert shall be transferred begin insert from the
State Highway Account end insert to the Transportation Debt Service begin delete Fund
and are end delete begin insert Fund. end insert

begin insert (B) end insert begin insert   end insert begin insert Except as provided in paragraph (3), or when subparagraph
(A) applies pursuant to a Treasurer’s certification, upon the first
issuance of designated bonds, as defined in subdivision (c) of
Section 16773 of the Government Code, starting in the month
following that first issuance, all weight fee revenues received by
the Controller from the first day through the 14th day of every
month shall be transferred from the State Highway Account to the
Transportation Debt Service Fund. end insert

begin insert (C) end insert begin insert   end insert begin insert All funds transferred pursuant to subparagraphs (A) and
(B) are end insert hereby appropriated for transfer to the General Fund by
the Controller as reimbursement for debt service costs begin delete until all of
the debt service paid on transportation bonds end delete begin insert paid with respect to
eligible bonds described in subparagraph (A) of paragraph (2) of
subdivision (a) of Section 16965 of the Government Code, until
all debt service end insert that the Director of Finance indicates begin delete qualify end delete
begin insert qualifies end insert for reimbursement as provided for in begin insert subdivision (d), (e),
or (f) of end insert Section 16965 of the Government Code has been
reimbursed, or to redeem or begin delete defease end delete begin insert retire end insert bonds, pursuant to
Section 16774 of the Government Code, as referenced in
subdivision begin delete (b) or end delete (d) begin insert , (e), or (f) end insert of Section 16965 of the
Government begin delete Code end delete begin insert Code, end insert that are maturing in a subsequent year.
After the Director of Finance has notified the Controller that all
debt service costs for the fiscal year have been reimbursed, the
Controller shall transfer any remaining revenue generated from
weight fees begin insert subject to this section end insert for that fiscal year in the State
Highway Account to the General Fund as a loan. The Director of
Finance may repay any portion of the balance of this loan in any
year in which the Director of Finance determines that the funds
are needed to reimburse the General Fund for current year
transportation bond debt service or to redeem or begin delete defease end delete begin insert retire end insert
those bonds pursuant to Section 16774 of the Government Code,
maturing in a future fiscal year, provided that the loans shall be
repaid no later than June 30, 2021. All funds loaned pursuant to
this section, upon repayment to the State Highway Account, shall
be immediately transferred by the Controller to the Transportation
Debt Service Fund for use pursuant to Section 16965 of the
Government Code. By June 15 of each year, the Director of
Finance, in consultation with the Treasurer, shall notify the
Controller regarding the final amount of debt service paid from
the General Fund during that fiscal year pursuant to begin insert subdivision
(d), (e), or (f) of end insert Section 16965 of the Government Code and shall
direct the Controller to reverse or adjust any transfers made as debt
service reimbursements or loans so that a maximum amount of
transfers are made for debt service reimbursements and with any
loan amounts limited to the difference between this amount and
the total amount of revenue for that fiscal year generated from
weight fees, as determined by Sections 9400.1 and 42205. The
total amount of weight fee revenues transferred from the State
Highway Account in any fiscal year shall not be greater than the
total amount of weight fee revenues deposited into the State
Highway Account in that year.

begin insert

(2) Starting in the month following the first issuance of any
designated bonds, unless a Treasurer’s certification pursuant to
subparagraph (B) of paragraph (3) of subdivision (a) of Section
16965 of the Government Code applies, all weight fee revenues
subject to this section that are received by the Controller from the
15th day of every month, or the first business day thereafter if not
a business day, through the last day of the month shall be deposited
directly in the Transportation Debt Service Fund and are hereby
appropriated for transfer as follows:

end insert begin insert

(A) First, to the Transportation Bond Direct Payment Account
as set forth in subdivision (b) of Section 16965 of the Government
Code, to provide for payment of debt service with respect to
designated bonds.

end insert begin insert

(B) Thereafter, as provided in subparagraph (C) of paragraph
(1).

end insert begin insert

(3) Notwithstanding paragraphs (1) and (2), if by the last day
of a month the transfer for that month relating to designated bonds
required by the Treasurer’s certificate described in subdivision
(b) of Section 16965 of the Government Code has not been made
due to insufficient weight fee revenue, weight fee revenue shall
continue to be transferred pursuant to paragraph (2) beginning
with the first day of the subsequent month and continuing every
day until such time as sufficient revenue for full compliance with
the certificate has been transferred.

end insert begin delete

(2) With

end delete

begin insert (4) end insert begin insert   end insert begin insert Except as otherwise provided in paragraph (1), (2), or (3),
with end insert respect to begin insert any end insert transfers or portions of transfers that cannot be
made in any given month if weight fee revenues are insufficient,
the first weight fee revenues available in the following month or
months shall be used to complete the transfers for the previous
month or months prior to making additional transfers for later
months.

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 42205 of the end insert begin insert Vehicle Code end insert begin insert is amended to
read: end insert

42205.  

(a) Notwithstanding Chapter 3 (commencing with
Section 42270), the department shall file, at least monthly with
the Controller, a report of money received by the department
pursuant to Section 9400 for the previous month and shall, at the
same time, remit all money so reported to the Treasurer. On order
of the Controller, the Treasurer shall deposit all money so remitted
into the State Highway Account in the State Transportation Fund begin insert ,
or directly into the Transportation Debt Service Fund as provided
in paragraph (2) of subdivision (c) of Section 9400.4, as applicable end insert .

(b) The Legislature shall appropriate from the State Highway
Account in the State Transportation Fund to the department and
the Franchise Tax Board amounts equal to the costs incurred by
each in performing their duties pursuant to Article 3 (commencing
with Section 9400) of Chapter 6 of Division 3. The applicable
amounts shall be determined so that the appropriate costs for
registration and weight fee collection activities are appropriated
between the recipients of revenues in proportion to the revenues
that would have been received individually by those recipients if
the total fee imposed under the Vehicle License Fee Law (Part 5
(commencing with Section 10701) of Division 2 of the Revenue
and Taxation Code) was 2 percent of the market value of a vehicle.
The remainder of the funds collected under Section 9400 and
deposited in the account begin insert , other than the direct deposits to the
Transportation Debt Service Fund referenced in subdivision (a), end insert
may be appropriated to the Department of Transportation, the
Department of the California Highway Patrol, and the Department
of Motor Vehicles for the purposes authorized under Section begin delete 2 end delete begin insert 3 end insert
of Article XIX of the California Constitution.

begin insert

begin insert SEC. 16. end insert   

end insert begin insert

This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact statutory
changes relating to the Budget Act of 2013.

end delete