California Legislature—2015–16 Regular Session

Assembly Bill No. 227

Introduced by Assembly Member Alejo

February 3, 2015

An act to amend Sections 16773, 16965.1, and 63048.67 of, to add Section 16321 to, and to repeal Section 16965 of, the Government Code, to amend Sections 143, 183.1, and 2103 of the Streets and Highways Code, and to amend Sections 9400.1 and 42205 of, and to repeal Section 9400.4 of, the Vehicle Code, relating to transportation, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 227, as introduced, Alejo. Transportation funding.

(1) Existing law provides for loans of revenues from various transportation funds and accounts to the General Fund, with various repayment dates specified.

This bill, with respect to any loans made to the General Fund from specified transportation funds and accounts with a repayment date of January 1, 2019, or later, would require the loans to be repaid by December 31, 2018.

(2) Existing law imposes weight fees on the registration of commercial motor vehicles and provides for the deposit of net weight fee revenues into the State Highway Account. Existing law provides for the transfer of certain weight fee revenues from the State Highway Account to the Transportation Debt Service Fund to reimburse the General Fund for payment of debt service on general obligation bonds issued for transportation purposes. Existing law also provides for the transfer of certain weight fee revenues to the transportation Bond Direct Payment Account for direct payment of debt service on designated bonds, which are defined to be certain transportation general obligation bonds issued pursuant to Proposition 1B of 2006. Existing law also provides for loans of weight fee revenues to the General Fund to the extent the revenues are not needed for bond debt service purposes, with the loans to be repaid when the revenues are later needed for those purposes, as specified.

This bill would repeal these provisions, thereby retaining the weight fee revenues in the State Highway Account. The bill would make other conforming changes in that regard.

(3) Existing law provides for the deposit of fuel excise tax revenues imposed by the state on fuels used in motor vehicles upon public streets and highways in the Highway Users Tax Account, and appropriates those revenues to various purposes. Existing law, with respect to the portion of these revenues that is derived from increases in the motor vehicle fuel excise tax in 2010, requires an allocation of revenues to reimburse the State Highway Account for the amount of weight fee revenues that the State Highway Account is not receiving due to use of weight fee revenues to pay debt service on transportation general obligation bonds and to make certain loans to the General Fund, with the remaining amount of this portion of revenues allocated 44% to the State Transportation Improvement Program, 12% to the State Highway Operation and Protection Program, and 44% to city and county streets and roads.

This bill would delete the provisions relating to the reimbursement of the State Highway Account for weight fee revenues and relating to the making of loans to the General Fund, thereby providing for the portion of fuel excise tax revenues that is derived from increases in the motor vehicle fuel excise tax in 2010 to be allocated 44% to the State Transportation Improvement Program, 12% to the State Highway Operation and Protection Program, and 44% to city and county streets and roads. The bill would thereby make an appropriation.

(4) Existing law 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, as specified, and continuously appropriates these funds for payment of current year debt service on certain mass transportation bonds.

This bill would delete the requirement to transfer these revenues to the Transportation Debt Service Fund, thereby providing for these revenues to be used for any transportation purpose authorized by statute, upon appropriation by the Legislature.

(5) Existing law authorizes the Department of Transportation and regional transportation agencies, as defined, to enter into comprehensive development lease agreements with public and private entities, or consortia of those entities, for certain transportation projects that may charge certain users of those projects tolls and user fees, subject to various terms and requirements. These arrangements are commonly known as public-private partnerships. Existing law provides that a lease agreement may not be entered into under these provisions on or after January 1, 2017.

This bill would delete that date, thereby providing for no lease agreements to be entered into under these provisions after an unspecified date.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

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

SECTION 1.  

Section 16321 is added to the Government Code,
to read:

16321.  

Notwithstanding any other provision of law, loans of
revenues to the General Fund from the State Highway Account,
the Public Transportation Account, the Bicycle Transportation
Account, the Motor Vehicle Fuel Account, the Highway Users
Tax Account, the Pedestrian Safety Account, the Transportation
Investment Fund, the Traffic Congestion Relief Fund, the Motor
Vehicle Account, and the Local Airport Loan Account shall be
repaid, on or before December 31, 2018, to the account or fund
from which the loan was made. This section shall apply to all loans
that otherwise have a repayment date of January 1, 2019, or later.

SEC. 2.  

Section 16773 of the Government Code is amended
to read:

16773.  

(a) 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.

(b) For 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 delete

(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.

(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).

(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 delete

SEC. 3.  

Section 16965 of the Government Code is repealed.

begin delete

16965.  

(a) (1) The Transportation Debt Service Fund is hereby
created in the State Treasury. Moneys in the fund shall be dedicated
to all of the following purposes:

(A) Payment of debt service with respect to designated bonds,
as defined in subdivision (c) of Section 16773, and as further
provided in paragraph (3) and subdivision (b).

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

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

(2) The bonds eligible under subparagraph (B) or (C) of
paragraph (1) include 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),
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), and nondesignated
bonds under Proposition 1B, as defined in subdivision (c) of
Section 16773.

(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.

(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.

(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.

(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.

(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:

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

(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.

(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.

(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.

(b) From the moneys transferred to the fund pursuant to
paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
Vehicle Code, there shall first be deposited into the Transportation
Bond Direct Payment Account in each month 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.

(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.

(d) 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 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 with respect to 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 with respect to any nondesignated bonds, as
defined in subdivision (c) of Section 16773, issued pursuant to
Proposition 1B (2006). In the alternative, these funds may also be
used to redeem or retire the applicable bonds, pursuant to Section
16774, maturing in a subsequent fiscal year as directed by the
Director of Finance.

(e) 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 with respect to any bonds
issued pursuant to Proposition 116 (1990). In the alternative, these
funds may also be used to redeem or retire the applicable bonds,
pursuant to Section 16774, maturing in a subsequent fiscal year
as directed by the Director of Finance.

(f) Once the required monthly deposit, including makeup of any
shortfalls from any prior month, has been made pursuant to
subdivision (b), from moneysmoneys transferred to the fund
pursuant to paragraph (2) or (3) of subdivision (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 eligible cost of
current year debt service payments made from the General Fund
with respect to 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
with respect to any nondesignated bonds, as defined in subdivision
(c) of Section 16773, 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 with respect to 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, and the Controller shall
make payments only for those eligible projects. In the alternative,
these funds may also be used to redeem or retire the applicable
bonds, pursuant to Section 16774, maturing in a subsequent fiscal
year as directed by the Director of Finance.

(g) On or before the second business day following the date on
which transfers are made to the Transportation Debt Service Fund,
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, the Controller
shall transfer the funds designated for reimbursement of bond debt
service with respect to nondesignated bonds, as defined in
subdivision (c) of Section 16773, and other bonds identified in
subdivisions (d), (e), and (f) in that month from the fund to the
General Fund pursuant to this section.

end delete

SEC. 4.  

Section 16965.1 of the Government Code is amended
to read:

16965.1.  

(a) (1) The loan repayment dates relative to State
Highway Account loans to the General Fund that are specified in
the provisional language of the following Budget Act items are
hereby eliminated, and the Director of Finance may repay any
remaining portion of the outstanding balance of these loans in any
year in which the director determines the funds are needed to
reimburse the General Fund for debt service or to redeem or defease
bonds maturing in a subsequent fiscal year, provided that the loans
shall be repaid no later than begin delete June 30, 2021: end delete begin insert December 31, 2018: end insert

(A) Item 2660-011-0042 of Section 2.00 of the Budget Act of
2010 (SB 870, Chapter 712 of the Statutes of 2010).

(B) Item 2660-013-0042 of Section 2.00 of the Budget Act of
2010, as added by Section 6 of SB 84 (Chapter 13 of the Statutes
of 2011).

(C) Item 2660-013-0042 of Section 2.00 of the Budget Act of
2011, as contained in SB 69 of the 2011-12 Regular Session, if
that provision is enacted.

(2) All funds loaned pursuant to the provisions referenced in
subparagraphs (A), (B), and (C) of paragraph (1) are hereby
determined to have been from weight fee revenues in the State
Highway Account fund balance. begin delete Upon repayment of those loans
to the State Highway Account, those funds shall be immediately
transferred by the Controller to the Transportation Debt Service
Fund for use pursuant to Section 16965. end delete

(b) The loan repayment date relative to the Public Transportation
Account that is specified in the provisional language in Item
2660-011-0046 of Section 2.00 of the Budget Act of 2010 (SB
870, Chapter 712 of the Statutes of 2010), is hereby eliminated,
and the loan pursuant to this item shall instead be repaid by begin delete June
30, 2021. end delete begin insert December 31, 2018. end insert

SEC. 5.  

Section 63048.67 of the Government Code is amended
to read:

63048.67.  

The loans made from the State Highway Account
through the Traffic Congestion Relief Fund to the General Fund
that are referenced in clause (i) of subparagraph (A) of paragraph
(1) of subdivision (c) of Section 63048.65 are hereby determined
to have been from weight fee revenues in the State Highway
Account fund balance. begin delete Any repayments made to the State Highway
Account pursuant to subdivision (e) of Section 63048.65, upon
transfer of those funds to the State Highway Account, shall be
immediately transferred by the Controller from the State Highway
Account to the Transportation Debt Service Fund for use pursuant
to Section 16965. end delete

SEC. 6.  

Section 143 of the Streets and Highways Code is
amended to read:

143.  

(a) (1) “Best value” means a value determined by
objective criteria, including, but not limited to, price, features,
functions, life-cycle costs, and other criteria deemed appropriate
by the department or the regional transportation agency.

(2) “Contracting entity or lessee” means a public or private
entity, or consortia thereof, that has entered into a comprehensive
development lease agreement with the department or a regional
transportation agency for a transportation project pursuant to this
section.

(3) “Design-build” means a procurement process in which both
the design and construction of a project are procured from a single
entity.

(4) “Regional transportation agency” means any of the
following:

(A) A transportation planning agency as defined in Section
29532 or 29532.1 of the Government Code.

(B) A county transportation commission as defined in Section
130050, 130050.1, or 130050.2 of the Public Utilities Code.

(C) Any other local or regional transportation entity that is
designated by statute as a regional transportation agency.

(D) A joint exercise of powers authority as defined in Chapter
5 (commencing with Section 6500) of Division 7 of Title 1 of the
Government Code, with the consent of a transportation planning
agency or a county transportation commission for the jurisdiction
in which the transportation project will be developed.

(5) “Public Infrastructure Advisory Commission” means a unit
or auxiliary organization established by the begin delete Business, end delete
Transportation begin delete and Housing end delete Agency that advises the department
and regional transportation agencies in developing transportation
projects through performance-based infrastructure partnerships.

(6) “Transportation project” means one or more of the following:
planning, design, development, finance, construction,
reconstruction, rehabilitation, improvement, acquisition, lease,
operation, or maintenance of highway, public street, rail, or related
facilities supplemental to existing facilities currently owned and
operated by the department or regional transportation agencies
that is consistent with the requirements of subdivision (c).

(b) (1) The Public Infrastructure Advisory Commission shall
do all of the following:

(A) Identify transportation project opportunities throughout the
state.

(B) Research and document similar transportation projects
throughout the state, nationally, and internationally, and further
identify and evaluate lessons learned from these projects.

(C) Assemble and make available to the department or regional
transportation agencies a library of information, precedent,
research, and analysis concerning infrastructure partnerships and
related types of public-private transactions for public infrastructure.

(D) Advise the department and regional transportation agencies,
upon request, regarding infrastructure partnership suitability and
best practices.

(E) Provide, upon request, procurement-related services to the
department and regional transportation agencies for infrastructure
partnership.

(2) The Public Infrastructure Advisory Commission may charge
a fee to the department and regional transportation agencies for
the services described in subparagraphs (D) and (E) of paragraph
(1), the details of which shall be articulated in an agreement entered
into between the Public Infrastructure Advisory Commission and
the department or the regional transportation agency.

(c) (1) Notwithstanding any other provision of law, only the
department, in cooperation with regional transportation agencies,
and regional transportation agencies, may solicit proposals, accept
unsolicited proposals, negotiate, and enter into comprehensive
development lease agreements with public or private entities, or
consortia thereof, for transportation projects.

(2) Projects proposed pursuant to this section and associated
lease agreements shall be submitted to the California Transportation
Commission. The commission, at a regularly scheduled public
hearing, shall select the candidate projects from projects nominated
by the department or a regional transportation agency after
reviewing the nominations for consistency with paragraphs (3)
and (4). Approved projects may proceed with the process described
in paragraph (5).

(3) The projects authorized pursuant to this section shall be
primarily designed to achieve the following performance
objectives:

(A) Improve mobility by improving travel times or reducing
the number of vehicle hours of delay in the affected corridor.

(B) Improve the operation or safety of the affected corridor.

(C) Provide quantifiable air quality benefits for the region in
which the project is located.

(4) In addition to meeting the requirements of paragraph (3),
the projects authorized pursuant to this section shall address a
known forecast demand, as determined by the department or
regional transportation agency.

(5) At least 60 days prior to executing a final lease agreement
authorized pursuant to this section, the department or regional
transportation agency shall submit the agreement to the Legislature
and the Public Infrastructure Advisory Commission for review.
Prior to submitting a lease agreement to the Legislature and the
Public Infrastructure Advisory Commission, the department or
regional transportation agency shall conduct at least one public
hearing at a location at or near the proposed facility for purposes
of receiving public comment on the lease agreement. Public
comments made during this hearing shall be submitted to the
Legislature and the Public Infrastructure Advisory Commission
with the lease agreement. The Secretary of begin delete Business, Transportation
and Housing end delete begin insert Transportation end insert or the chairperson of the Senate or
Assembly fiscal committees or policy committees with jurisdiction
over transportation matters may, by written notification to the
department or regional transportation agency, provide any
comments about the proposed agreement within the 60-day period
prior to the execution of the final agreement. The department or
regional transportation agency shall consider those comments prior
to executing a final agreement and shall retain the discretion for
executing the final lease agreement.

(d) For the purpose of facilitating those projects, the agreements
between the parties may include provisions for the lease of
rights-of-way in, and airspace over or under, highways, public
streets, rail, or related facilities for the granting of necessary
easements, and for the issuance of permits or other authorizations
to enable the construction of transportation projects. Facilities
subject to an agreement under this section shall, at all times, be
owned by the department or the regional transportation agency,
as appropriate. For department projects, the commission shall
certify the department’s determination of the useful life of the
project in establishing the lease agreement terms. In consideration
therefor, the agreement shall provide for complete reversion of the
leased facility, together with the right to collect tolls and user fees,
to the department or regional transportation agency, at the
expiration of the lease at no charge to the department or regional
transportation agency. At the time of the reversion, the facility
shall be delivered to the department or regional transportation
agency, as applicable, in a condition that meets the performance
and maintenance standards established by the department or
regional transportation agency and that is free of any encumbrance,
lien, or other claims.

(e) Agreements between the department or regional
transportation agency and the contracting entity or lessee shall
authorize the contracting entity or lessee to use a design-build
method of procurement for transportation projects, subject to the
requirements for utilizing such a method contained in Chapter 6.5
(commencing with Section begin delete 6800) end delete begin insert 6820) end insert of Part 1 of Division 2 of
the Public Contract Code, other than Sections begin delete 6802, 6803, end delete begin insert 6821 end insert
and begin delete 6813 end delete begin insert 6822 end insert of that begin delete code, if those provisions are enacted by the
Legislature during the 2009-10 Regular Session, or a 2009-10
extraordinary session. end delete begin insert code. end insert

(f) (1) (A) Notwithstanding any other provision of this chapter,
for projects on the state highway system, the department is the
responsible agency for the performance of project development
services, including performance specifications, preliminary
engineering, prebid services, the preparation of project reports and
environmental documents, and construction inspection services.
The department is also the responsible agency for the preparation
of documents that may include, but need not be limited to, the size,
type, and desired design character of the project, performance
specifications covering the quality of materials, equipment, and
workmanship, preliminary plans, and any other information deemed
necessary to describe adequately the needs of the department or
regional transportation agency.

(B) The department may use department employees or
consultants to perform the services described in subparagraph (A),
consistent with Article XXII of the California Constitution.
Department resources, including personnel requirements, necessary
for the performance of those services shall be included in the
department’s capital outlay support program for workload purposes
in the annual Budget Act.

(2) The department or a regional transportation agency may
exercise any power possessed by it with respect to transportation
projects to facilitate the transportation projects pursuant to this
section. The department, regional transportation agency, and other
state or local agencies may provide services to the contracting
entity or lessee for which the public entity is reimbursed, including,
but not limited to, planning, environmental planning, environmental
certification, environmental review, preliminary design, design,
right-of-way acquisition, construction, maintenance, and policing
of these transportation projects. The department or regional
transportation agency, as applicable, shall regularly inspect the
facility and require the contracting entity or lessee to maintain and
operate the facility according to adopted standards. Except as may
otherwise be set forth in the lease agreement, the contracting entity
or lessee shall be responsible for all costs due to development,
maintenance, repair, rehabilitation, and reconstruction, and
operating costs.

(g) (1) In selecting private entities with which to enter into
these agreements, notwithstanding any other provision of law, the
department and regional transportation agencies may utilize, but
are not limited to utilizing, one or more of the following
procurement approaches:

(A) Solicitations of proposals for defined projects and calls for
project proposals within defined parameters.

(B) Prequalification and short-listing of proposers prior to final
evaluation of proposals.

(C) Final evaluation of proposals based on qualifications and
best value. The California Transportation Commission shall
develop and adopt criteria for making that evaluation prior to
evaluation of a proposal.

(D) Negotiations with proposers prior to award.

(E) Acceptance of unsolicited proposals, with issuance of
requests for competing proposals. Neither the department nor a
regional transportation agency may award a contract to an
unsolicited bidder without receiving at least one other responsible
bid.

(2) When evaluating a proposal submitted by the contracting
entity or lessee, the department or the regional transportation
agency may award a contract on the basis of the lowest bid or best
value.

(h) The contracting entity or lessee shall have the following
qualifications:

(1) Evidence that the members of the contracting entity or lessee
have completed, or have demonstrated the experience, competency,
capability, and capacity to complete, a project of similar size,
scope, or complexity, and that proposed key personnel have
sufficient experience and training to competently manage and
complete the design and construction of the project, and a financial
statement that ensures that the contracting entity or lessee has the
capacity to complete the project.

(2) The licenses, registration, and credentials required to design
and construct the project, including, but not limited to, information
on the revocation or suspension of any license, credential, or
registration.

(3) Evidence that establishes that members of the contracting
entity or lessee have the capacity to obtain all required payment
and performance bonding, liability insurance, and errors and
omissions insurance.

(4) Evidence that the contracting entity or lessee has workers’
compensation experience, history, and a worker safety program
of members of the contracting entity or lessee that is acceptable
to the department or regional transportation agency.

(5) A full disclosure regarding all of the following with respect
to each member of the contracting entity or lessee during the past
five years:

(A) Any serious or willful violation of Part 1 (commencing with
Section 6300) of Division 5 of the Labor Code or the federal
Occupational Safety and Health Act of 1970 begin delete (P.L. end delete begin insert (Public Law end insert
91-596).

(B) Any instance where members of the contracting entity or
lessee were debarred, disqualified, or removed from a federal,
state, or local government public works project.

(C) Any instance where members of the contracting entity or
lessee, or its owners, officers, or managing employees submitted
a bid on a public works project and were found to be nonresponsive
or were found by an awarding body not to be a responsible bidder.

(D) Any instance where members of the contracting entity or
lessee, or its owners, officers, or managing employees defaulted
on a construction contract.

(E) Any violations of the Contractors’ State License Law
(Chapter 9 (commencing with Section 7000) of Division 3 of the
Business and Professions Code), including, but not limited to,
alleged violations of federal or state law regarding the payment of
wages, benefits, apprenticeship requirements, or personal income
tax withholding, or Federal Insurance Contributions Act (FICA)
withholding requirements.

(F) Any bankruptcy or receivership of any member of the
contracting entity or lessee, including, but not limited to,
information concerning any work completed by a surety.

(G) Any settled adverse claims, disputes, or lawsuits between
the owner of a public works project and any member of the
contracting entity or lessee during the five years preceding
submission of a bid under this article, in which the claim,
settlement, or judgment exceeds fifty thousand dollars ($50,000).
Information shall also be provided concerning any work completed
by a surety during this five-year period.

(H) If the contracting entity or lessee is a partnership, joint
venture, or an association that is not a legal entity, a copy of the
agreement creating the partnership or association that specifies
that all general partners, joint venturers, or association members
agree to be fully liable for the performance under the agreement.

(i) No agreement entered into pursuant to this section shall
infringe on the authority of the department or a regional
transportation agency to develop, maintain, repair, rehabilitate,
operate, or lease any transportation project. Lease agreements may
provide for reasonable compensation to the contracting entity or
lessee for the adverse effects on toll revenue or user fee revenue
due to the development, operation, or lease of supplemental
transportation projects with the exception of any of the following:

(1) Projects identified in regional transportation plans prepared
pursuant to Section 65080 of the Government Code.

(2) Safety projects.

(3) Improvement projects that will result in incidental capacity
increases.

(4) Additional high-occupancy vehicle lanes or the conversion
of existing lanes to high-occupancy vehicle lanes.

(5) Projects located outside the boundaries of a public-private
partnership project, to be defined by the lease agreement.

However, compensation to a contracting entity or lessee shall
only be made after a demonstrable reduction in use of the facility
resulting in reduced toll or user fee revenues, and may not exceed
the difference between the reduction in those revenues and the
amount necessary to cover the costs of debt service, including
principal and interest on any debt incurred for the development,
operation, maintenance, or rehabilitation of the facility.

(j) (1) Agreements entered into pursuant to this section shall
authorize the contracting entity or lessee to impose tolls and user
fees for use of a facility constructed by it, and shall require that
over the term of the lease the toll revenues and user fees be applied
to payment of the capital outlay costs for the project, the costs
associated with operations, toll and user fee collection,
administration of the facility, reimbursement to the department or
other governmental entity for the costs of services to develop and
maintain the project, police services, and a reasonable return on
investment. The agreement shall require that, notwithstanding
Sections 164, 188, and 188.1, any excess toll or user fee revenue
either be applied to any indebtedness incurred by the contracting
entity or lessee with respect to the project, improvements to the
project, or be paid into the State Highway Account, or for all three
purposes, except that any excess toll revenue under a lease
agreement with a regional transportation agency may be paid to
the regional transportation agency for use in improving public
transportation in and near the project boundaries.

(2) Lease agreements shall establish specific toll or user fee
rates. Any proposed increase in those rates not otherwise
established or identified in the lease agreement during the term of
the agreement shall first be approved by the department or regional
transportation agency, as appropriate, after at least one public
hearing conducted at a location near the proposed or existing
facility.

(3) The collection of tolls and user fees for the use of these
facilities may be extended by the commission or regional
transportation agency at the expiration of the lease agreement.
However, those tolls or user fees shall not be used for any purpose
other than for the improvement, continued operation, or
maintenance of the facility.

(k) Agreements entered into pursuant to this section shall include
indemnity, defense, and hold harmless provisions agreed to by the
department or regional transportation agency and the contracting
entity or lessee, including provisions for indemnifying the State
of California or the regional transportation agency against any
claims or losses resulting or accruing from the performance of the
contracting entity or lessee.

(l) The plans and specifications for each transportation project
on the state highway system developed, maintained, repaired,
rehabilitated, reconstructed, or operated pursuant to this section
shall comply with the department’s standards for state
transportation projects. The lease agreement shall include
performance standards, including, but not limited to, levels of
service. The agreement shall require facilities on the state highway
system to meet all requirements for noise mitigation, landscaping,
pollution control, and safety that otherwise would apply if the
department were designing, building, and operating the facility.
If a facility is on the state highway system, the facility leased
pursuant to this section shall, during the term of the lease, be
deemed to be a part of the state highway system for purposes of
identification, maintenance, enforcement of traffic laws, and for
the purposes of Division 3.6 (commencing with Section 810) of
Title 1 of the Government Code.

(m) Failure to comply with the lease agreement in any significant
manner shall constitute a default under the agreement and the
department or the regional transportation agency, as appropriate,
shall have the option to initiate processes to revert the facility to
the public agency.

(n) The assignment authorized by subdivision (c) of Section
130240 of the Public Utilities Code is consistent with this section.

(o) A lease to a private entity pursuant to this section is deemed
to be public property for a public purpose and exempt from
leasehold, real property, and ad valorem taxation, except for the
use, if any, of that property for ancillary commercial purposes.

(p) Nothing in this section is intended to infringe on the authority
to develop high-occupancy toll lanes pursuant to Section 149.4,
149.5, or 149.6.

(q) Nothing in this section shall be construed to allow the
conversion of any existing nontoll or nonuser-fee lanes into tolled
or user fee lanes with the exception of a high-occupancy vehicle
lane that may be operated as a high-occupancy toll lane for vehicles
not otherwise meeting the requirements for use of that lane.

(r) The lease agreement shall require the contracting entity or
lessee to provide any information or data requested by the
California Transportation Commission or the Legislative Analyst.
The commission, in cooperation with the Legislative Analyst, shall
annually prepare a report on the progress of each project and
ultimately on the operation of the resulting facility. The report
shall include, but not be limited to, a review of the performance
standards, a financial analysis, and any concerns or
recommendations for changes in the program authorized by this
section.

(s) Notwithstanding any other provision of this section, no lease
agreement may be entered into pursuant to the section that affects,
alters, or supersedes the Memorandum of Understanding (MOU),
dated November 26, 2008, entered into by the Golden Gate Bridge
Highway and Transportation District, the Metropolitan
Transportation Commission, and the San Francisco County
Transportation Authority, relating to the financing of the U.S.
Highway 101/Doyle Drive reconstruction project located in the
City and County of San Francisco.

(t) No lease agreements may be entered into under this section
on or after January 1, begin delete 2017 end delete begin insert ____ end insert .

SEC. 7.  

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

183.1.  

begin delete (a) end delete begin delete   end delete 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.

begin delete

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

end delete

SEC. 8.  

Section 2103 of the Streets and Highways Code is
amended to read:

2103.  

(a) Notwithstanding Section 13340 of the Government
Code, of the net revenues deposited to the credit of the Highway
Users Tax Account that are derived from the increases in the rates
of taxes that are imposed pursuant to subdivision (b) of Section
7360 and Section 7361.1 of the Revenue and Taxation Code, all
of the following shall occur on a monthly basis:

begin delete

(1) (A) By the 15th day of every month, the Treasurer’s office,
in consultation with the Department of Finance, shall notify the
Controller of the amount of debt service that will be paid on each
transportation bond during that month.

(B) Within two business days following the 28th day of each
month, the Controller shall transfer to the Transportation Debt
Service Fund an amount equal to the amount of monthly debt
service paid by the General Fund on any bonds issued pursuant to
the Seismic Retrofit Bond Act of 1996 (Chapter 12.48
(commencing with Section 8879) of Division 1 of Title 2 of the
Government Code) or any other bonds issued for highway or
eligible guideway projects consistent with the requirements
applicable to the expenditure of revenues under Article XIX of the
California Constitution as identified by the Department of Finance
pursuant to Section 16965 of the Government Code, and
three-quarters of the amount of monthly debt service paid on any
bonds issued pursuant to 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) for
reimbursement of the General Fund for these costs. If revenues
available pursuant to this subdivision in any given month are
insufficient to fully reimburse the General Fund for the debt service
payments made, the first revenues available pursuant to this
subdivision in the following month or months shall be transferred
to the Transportation Debt Service Fund so that all debt service
payments made on these bonds from the General Fund in a given
fiscal year are fully reimbursed. However, no further transfers
shall be made pursuant to this subparagraph once the transfers for
the months of July to October, inclusive, in 2010 have been made.
Any transfers made from the net revenues identified in this
paragraph for highway and eligible guideway bond debt service
for months after October 2010 shall be reversed and shall instead
be made from weight fee revenues in the State Highway Account,
as described in subparagraph (F).

(C) Beginning November 2, 2010, the Controller shall transfer
to the State Highway Account within two business days following
the 28th day of each month all of the monthly net revenues
identified in subparagraph (B) that were designated for highway
and eligible guideway bond debt service reimbursement but that
have not been transferred, or that were transferred by means of a
transfer that was reversed, pursuant to that subparagraph. To the
extent the Controller has distributed any of those net revenues to
cities and counties pursuant to subparagraph (C) of paragraph (3)
between November 2, 2010, and March 24, 2011, the Controller
shall subsequently reduce the amount transferred to cities and
counties on a monthly basis pursuant to subparagraph (C) of
paragraph (3) and shall instead transfer these funds to the State
Highway Account until all of the revenues that would otherwise
have been transferred to the State Highway Account on and after
November 2, 2010, pursuant to this subparagraph have been so
transferred. For the 2011-12 fiscal year, the Controller shall
transfer to the State Highway Account within two business days
following the 28th day of each month an amount equal to the
weight fee revenues transferred to the Transportation Debt Service
Fund pursuant to subdivision (b) of Section 9400.4 of the Vehicle
Code, including 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 and an amount equal to
weight fee revenues transferred to the General Fund as a loan
pursuant to subdivision (b) of Section 9400.4 of the Vehicle Code.
To the extent the Controller has distributed any of those revenues
to cities and counties pursuant to subparagraph (C) of paragraph
(3), the Controller shall subsequently reduce the amount transferred
to cities and counties on a monthly basis pursuant to subparagraph
(C) of paragraph (3) and instead transfer these funds to the State
Highway Account until all of the revenues that would otherwise
have been transferred to the State Highway Account in the 2011-12
fiscal year pursuant to this subparagraph have been so transferred.

(D) Notwithstanding subparagraph (C), commencing with the
2012-13 fiscal year and every fiscal year thereafter, the Controller
shall transfer to the State Highway Account within two business
days following the 28th day of each month an amount equal to the
amount of weight fee revenues transferred to the Transportation
Debt Service Fund for highway and eligible guideway bond debt
service and to the General Fund as a loan pursuant to subdivision
(c) of Section 9400.4 of the Vehicle Code.

(E) Beginning July 1, 2011, transfers made under subparagraphs
(C) and (D) during a fiscal year shall not exceed the annual revenue
generated from weight fees, as determined by Sections 9400.4 and
42205 of the Vehicle Code, at the rates in effect as of March 24,
2011, as determined by the Department of Finance.

(F) Any remaining amount of the highway or eligible guideway
bond debt service reimbursement authorized by this paragraph that
has not been made pursuant to subparagraph (B) on and after
November 2, 2010, shall instead be made pursuant to subdivisions
(a), (b), and (c) of Section 9400.4 of the Vehicle Code from
revenues in the State Highway Account derived from weight fees
deposited in the account pursuant to subdivision (e) of Section
9400.1 and Section 42205 of the Vehicle Code.

(2) (A) In the 2010-11 fiscal year, after the monthly transfer
made pursuant to paragraph (1), the sum of fifty-four million one
hundred sixty-seven thousand dollars ($54,167,000) per month
shall be held in the account for future appropriation by the
Legislature.

(B) Notwithstanding any other provision of law, with respect
to the monthly net revenues described in subparagraph (A), no
further transfers of these revenues for the purpose of loans to the
General Fund shall be made pursuant to Item 2660-011-0062 of
Section 2.00 of the Budget Act of 2010 once the loan transfers for
the months of July to October, inclusive, in 2010 have been made.
Notwithstanding the loan repayment date specified in the
provisional language for that item, the funds loaned shall be repaid
by June 30, 2021. Any transfers made from the monthly net
revenues in subparagraph (A) for months after October 2010 shall
be reversed and shall instead be made from weight fee revenues
in the State Highway Account, as described in subparagraph (D).
The revenues from loan repayments shall be held in the Highway
Users Tax Account for future appropriation by the Legislature.

(C) Beginning November 2, 2010, all of the monthly net
revenues described in subparagraph (A) shall instead be transferred
by the Controller to the State Highway Account within two
business days following the 28th day of each month. To the extent
that the Controller has distributed any of the revenues identified
in this paragraph to cities and counties pursuant to subparagraph
(C) of paragraph (3) between October 14, 2010, and March 24,
2011, the Controller shall subsequently reduce the amount
transferred to cities and counties on a monthly basis pursuant to
subparagraph (C) of paragraph (3) and shall instead transfer these
funds to the State Highway Account until all of the revenues that
would have been transferred to the General Fund as a loan pursuant
to Item 2660-011-0062 of Section 2.00 of the Budget Act of 2010
on and after November 2, 2010, have instead been transferred to
the State Highway Account.

(D) Any remaining amount of the loans to the General Fund
authorized pursuant to Item 2660-011-0062 of Section 2.00 of the
Budget Act of 2010 that has not been made pursuant to
subparagraph (B) on and after November 2, 2010, shall instead be
made pursuant to subdivisions (a), (b), and (c) of Section 9400.4
of the Vehicle Code from revenues in the State Highway Account
derived from weight fees deposited in the account pursuant to
subdivision (e) of Section 9400.1 and Section 42205 of the Vehicle
Code.

(3) The Controller shall transfer any remaining net revenues
subject to this subdivision as follows:

(A)

end delete

begin insert (1) end insert  Forty-four percent shall be transferred begin insert by the Controller end insert to
the State Highway Account to fund projects in the State
Transportation Improvement Program that are consistent with
Section begin delete 1 end delete begin insert 2 end insert of Article XIX of the California begin delete Constitution, except
in the 2010-11 fiscal year, 50 percent shall be transferred for
purposes of this subparagraph. end delete begin insert Constitution. end insert

begin delete

(B)

end delete

begin insert (2) end insert  Twelve percent shall be transferred to the State Highway
Account to fund projects in the State Highway Operation and
Protection begin delete Program, except in the 2010-11 fiscal year, no revenues
shall be transferred for purposes of this subparagraph. end delete begin insert Program. end insert

begin delete

(C)

end delete

begin insert (3) end insert  Forty-four percent shall be apportioned by the Controller
for local street and road purposes begin delete , except in the 2010-11 fiscal
year, 50 percent shall be transferred for purposes of this
subparagraph end delete as follows:

begin delete

(i)

end delete

begin insert (A) end insert  Fifty percent shall be apportioned by the Controller to cities,
including a city and county, in the proportion that the total
population of the city bears to the total population of all the cities
in the state.

begin delete

(ii)

end delete

begin insert (B) end insert  Fifty percent shall be apportioned by the Controller to
counties, including a city and county, in accordance with the
following formulas:

begin delete

(I)

end delete

begin insert (i) end insert  Seventy-five percent shall be apportioned among the counties
in the proportion that the number of fee-paid and exempt vehicles
that are registered in the county bear to the number of fee-paid and
exempt vehicles registered in the state.

begin delete

(II)

end delete

begin insert (ii) end insert  Twenty-five percent shall be apportioned among the counties
in the proportion that the number of miles of maintained county
roads in each county bear to the total number of miles of
maintained county roads in the state. For the purposes of
apportioning funds under this subparagraph, any roads within the
boundaries of a city and county that are not state highways shall
be deemed to be county roads.

(b) After the transfers or other actions pursuant to subdivision
(a), at least 90 percent of the balance deposited to the credit of the
Highway Users Tax Account in the Transportation Tax Fund by
the 28th day of each month shall be apportioned or transferred, as
applicable, by the Controller by the second working day thereafter,
except for June, in which case the apportionment or transfer shall
be made the same day. These apportionments or transfers shall be
made as provided for in Sections 2104 to 2122, inclusive. If
information is not available to make the apportionment or transfer
as required, the apportionment or transfer shall be made on the
basis of the information of the previous month. Amounts not
apportioned or transferred shall be included in the apportionment
or transfer of the subsequent month.

(c) Notwithstanding any other law, the funds apportioned by
the Controller to cities and counties pursuant to begin delete subparagraph (C)
of end delete paragraph (3) of subdivision (a) are not subject to Section 7104
or 7104.2 of the Revenue and Taxation Code. These funds may
be expended for any street and road purpose consistent with the
requirements of this chapter.

SEC. 9.  

Section 9400.1 of the Vehicle Code is amended to
read:

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 begin delete Fund, 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 delete begin insert Fund 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.

SEC. 10.  

Section 9400.4 of the Vehicle Code is repealed.

begin delete

9400.4.  

Weight fee revenue deposited into the State Highway
Account pursuant to subdivision (e) of Section 9400.1 and
subdivision (a) of Section 42205 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, 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 retire 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
retire 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) (A) 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, all weight fee
revenues subject to this section in any month shall be transferred
from the State Highway Account to the Transportation Debt
Service Fund.

(B) 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.

(C) All funds transferred pursuant to subparagraphs (A) and (B)
are hereby appropriated for transfer to the General Fund by the
Controller as reimbursement for debt service costs 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 that the Director of Finance indicates qualifies for
reimbursement as provided for in subdivision (d), (e), or (f) of
Section 16965 of the Government Code has been reimbursed, or
to redeem or retire bonds, pursuant to Section 16774 of the
Government Code, as referenced in subdivision (d), (e), or (f) of
Section 16965 of the Government Code, 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 subject to this section 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 retire 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 subdivision
(d), (e), or (f) of 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.

(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:

(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.

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

(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.

(4) Except as otherwise provided in paragraph (1), (2), or (3),
with respect to any 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.

end delete

SEC. 11.  

Section 42205 of the Vehicle Code is amended to
read:

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 begin delete Fund,
or directly into the Transportation Debt Service Fund as provided
in paragraph (2) of subdivision (c) of Section 9400.4, as applicable end delete
begin insert Fund 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 delete , other than the direct deposits to the
Transportation Debt Service Fund referenced in subdivision (a), end delete
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 3 of
Article XIX of the California Constitution.