AB 227, as amended, 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.end delete
This bill would delete that date, thereby providing for no lease agreements to be entered into under these provisions after an unspecified date.end delete
Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 16321 is added to the Government Code,
Notwithstanding any other provision of law, loans of
4revenues to the General Fund from the State Highway Account,
5the Public Transportation Account, the Bicycle Transportation
6Account, the Motor Vehicle Fuel Account, the Highway Users
7Tax Account, the Pedestrian Safety Account, the Transportation
8Investment Fund, the Traffic Congestion Relief Fund, the Motor
9Vehicle Account, and the Local Airport Loan Account shall be
10repaid, on or before December 31, 2018, to the account or fund
11from which the loan was made. This section shall apply to all loans
12that otherwise have a repayment date of January 1, 2019, or later.
Section 16773 of the Government Code is amended
(a) Whenever any payment of principal of any bonds
16shall become due, either upon the maturity of any of the bonds or
17upon the redemption thereof prior to maturity, and whenever any
18interest on any of the bonds shall fall due, warrants shall be drawn
19against the appropriation made by the bond act from the General
P4 1Fund by the Controller in favor of the Treasurer, or state fiscal
2agents, or other duly authorized agents, pursuant to claims filed
3with the Controller by the Treasurer, in the amounts so falling due.
4(b) For any payments of debt service, as defined in subdivision
5(c) of Section 998.404 of the Military and Veterans Code, with
6respect to any bonds issued pursuant to a veterans’ farm and home
7purchase bond act adopted pursuant to Chapter 6 (commencing
8with Section 980) of Division 4 of the Military and Veterans Code,
9the Controller shall first draw warrants against the appropriation
10from the Veterans’ Bonds Payment Fund in Section 988.6 of the
11Military and Veterans Code, and, to the extent moneys in that fund
12are insufficient to pay the amount of debt service then due, shall
13draw warrants against the appropriation made by the bond act from
14the General Fund for payment of any remaining amount then due.
Section 16965 of the Government Code is repealed.
Section 16965.1 of the Government Code is amended
(a) (1) The loan repayment dates relative to State
19Highway Account loans to the General Fund that are specified in
20the provisional language of the following Budget Act items are
21hereby eliminated, and the Director of Finance may repay any
22remaining portion of the outstanding balance of these loans in any
23year in which the director determines the funds are needed to
24reimburse the General Fund for debt service or to redeem or defease
25bonds maturing in a subsequent fiscal year, provided that the loans
26shall be repaid no later than December 31, 2018:
27(A) Item 2660-011-0042 of Section 2.00 of the Budget Act of
282010 (SB 870, Chapter 712 of the Statutes of 2010).
29(B) Item 2660-013-0042
of Section 2.00 of the Budget Act of
302010, as added by Section 6 of SB 84 (Chapter 13 of the Statutes
32(C) Item 2660-013-0042 of Section 2.00 of the Budget Act of
332011, as contained in SB 69 of the 2011-12 Regular Session, if
34that provision is enacted.
35(2) All funds loaned pursuant to the provisions referenced in
36subparagraphs (A), (B), and (C) of paragraph (1) are hereby
37determined to have been from weight fee revenues in the State
38Highway Account fund balance.
39(b) The loan repayment date relative to the Public Transportation
40Account that is specified in the provisional language in Item
P5 12660-011-0046 of Section 2.00 of the Budget Act of 2010 (SB
2870, Chapter 712 of the Statutes of 2010), is hereby eliminated,
3and the loan pursuant to this item shall instead be repaid by
4December 31, 2018.
Section 63048.67 of the Government Code is amended
The loans made from the State Highway Account
8through the Traffic Congestion Relief Fund to the General Fund
9that are referenced in clause (i) of subparagraph (A) of paragraph
10(1) of subdivision (c) of Section 63048.65 are hereby determined
11to have been from weight fee revenues in the State Highway
12Account fund balance.
Section 143 of the Streets and Highways Code is
14amended to read:
(a) (1) “Best value” means a value determined by
16objective criteria, including, but not limited to, price, features,
17functions, life-cycle costs, and other criteria deemed appropriate
18by the department or the regional transportation agency.
19(2) “Contracting entity or lessee” means a public or private
20entity, or consortia thereof, that has entered into a comprehensive
21development lease agreement with the department or a regional
22transportation agency for a transportation project pursuant to this
24(3) “Design-build” means a procurement process in which both
25the design and construction of a project are procured from a single
27(4) “Regional transportation agency” means any of the
29(A) A transportation planning agency as defined in Section
3029532 or 29532.1 of the Government Code.
31(B) A county transportation commission as defined in Section
32130050, 130050.1, or 130050.2 of the Public Utilities Code.
33(C) Any other local or regional transportation entity that is
34designated by statute as a regional transportation agency.
35(D) A joint exercise of powers authority as defined in Chapter
365 (commencing with Section 6500) of Division 7 of Title 1 of the
37Government Code, with the consent of a transportation planning
38agency or a county transportation commission for the jurisdiction
39in which the transportation project will be developed.
P6 1(5) “Public Infrastructure Advisory Commission” means a unit
2or auxiliary organization established by the Transportation Agency
3that advises the department and regional transportation agencies
4in developing transportation projects through performance-based
6(6) “Transportation project” means one or more of the following:
7planning, design, development, finance, construction,
8reconstruction, rehabilitation, improvement, acquisition, lease,
9operation, or maintenance of highway, public street, rail, or related
10facilities supplemental to existing facilities currently owned and
11operated by the department or regional transportation agencies
12that is consistent with the requirements of subdivision (c).
13(b) (1) The Public Infrastructure Advisory Commission shall
14do all of the following:
15(A) Identify transportation project opportunities throughout the
17(B) Research and document similar transportation projects
18throughout the state, nationally, and internationally, and further
19identify and evaluate lessons learned from these projects.
20(C) Assemble and make available to the department or regional
21transportation agencies a library of information, precedent,
22research, and analysis concerning infrastructure partnerships and
23related types of public-private transactions for public infrastructure.
24(D) Advise the department and
regional transportation agencies,
25upon request, regarding infrastructure partnership suitability and
27(E) Provide, upon request, procurement-related services to the
28department and regional transportation agencies for infrastructure
30(2) The Public Infrastructure Advisory Commission may charge
31a fee to the department and regional transportation agencies for
32the services described in subparagraphs (D) and (E) of paragraph
33(1), the details of which shall be articulated in an agreement entered
34into between the Public Infrastructure Advisory Commission and
35the department or the regional transportation agency.
36(c) (1) Notwithstanding any other provision of law, only the
37department, in cooperation with regional transportation agencies,
38and regional transportation agencies, may solicit proposals, accept
39unsolicited proposals, negotiate, and enter into comprehensive
P7 1development lease agreements with public or private entities, or
2consortia thereof, for transportation projects.
3(2) Projects proposed pursuant to this section and associated
4lease agreements shall be submitted to the California Transportation
5Commission. The commission, at a regularly scheduled public
6hearing, shall select the candidate projects from projects nominated
7by the department or a regional transportation agency after
8reviewing the nominations for consistency with paragraphs (3)
9and (4). Approved projects may proceed with the process described
10in paragraph (5).
11(3) The projects authorized pursuant to this section shall be
12primarily designed to achieve the following performance
14(A) Improve mobility by
improving travel times or reducing
15the number of vehicle hours of delay in the affected corridor.
16(B) Improve the operation or safety of the affected corridor.
17(C) Provide quantifiable air quality benefits for the region in
18which the project is located.
19(4) In addition to meeting the requirements of paragraph (3),
20the projects authorized pursuant to this section shall address a
21known forecast demand, as determined by the department or
22regional transportation agency.
23(5) At least 60 days prior to executing a final lease agreement
24authorized pursuant to this section, the department or regional
25transportation agency shall submit the agreement to the Legislature
26and the Public Infrastructure Advisory Commission for review.
27Prior to submitting a lease agreement to the Legislature and the
28Public Infrastructure Advisory Commission, the department or
29regional transportation agency shall conduct at least one public
30hearing at a location at or near the proposed facility for purposes
31of receiving public comment on the lease agreement. Public
32comments made during this hearing shall be submitted to the
33Legislature and the Public Infrastructure Advisory Commission
34with the lease agreement. The Secretary of Transportation or the
35chairperson of the Senate or Assembly fiscal committees or policy
36committees with jurisdiction over transportation matters may, by
37written notification to the department or regional transportation
38agency, provide any comments about the proposed agreement
39within the 60-day period prior to the execution of the final
40 agreement. The department or regional transportation agency shall
P8 1consider those comments prior to executing a final agreement and
2shall retain the discretion for executing the final lease agreement.
3(d) For the purpose of facilitating those projects, the agreements
4between the parties may include provisions for the lease of
5rights-of-way in, and airspace over or under, highways, public
6streets, rail, or related facilities for the granting of necessary
7easements, and for the issuance of permits or other authorizations
8to enable the construction of transportation projects. Facilities
9subject to an agreement under this section shall, at all times, be
10owned by the department or the regional transportation agency,
11as appropriate. For department projects, the commission shall
12certify the department’s determination of the useful life of the
13project in establishing the lease agreement terms. In consideration
14therefor, the agreement shall provide for complete reversion of the
15leased facility, together with the right to collect tolls and user fees,
16to the department or regional transportation agency, at the
17expiration of the lease at no charge to the department or regional
18transportation agency. At the time of the reversion, the facility
19shall be delivered to the department or regional transportation
20agency, as applicable, in a condition that meets the performance
21and maintenance standards established by the department or
22regional transportation agency and that is free of any encumbrance,
23lien, or other claims.
24(e) Agreements between the department or regional
25transportation agency and the contracting entity or lessee shall
26authorize the contracting entity or lessee to use a design-build
27method of procurement for transportation projects, subject to the
28requirements for utilizing such a method contained in Chapter 6.5
29(commencing with Section 6820) of Part 1 of Division 2 of the
30Public Contract Code, other than Sections 6821 and 6822 of that
32(f) (1) (A) Notwithstanding any other
provision of this chapter,
33for projects on the state highway system, the department is the
34responsible agency for the performance of project development
35services, including performance specifications, preliminary
36engineering, prebid services, the preparation of project reports and
37environmental documents, and construction inspection services.
38The department is also the responsible agency for the preparation
39of documents that may include, but need not be limited to, the size,
40type, and desired design character of the project, performance
P9 1specifications covering the quality of materials, equipment, and
2workmanship, preliminary plans, and any other information deemed
3necessary to describe adequately the needs of the department or
4regional transportation agency.
5(B) The department may use department employees or
6consultants to perform the services described in subparagraph (A),
7consistent with Article XXII of the California Constitution.
8Department resources, including personnel requirements, necessary
9for the performance of those services shall be included in the
10department’s capital outlay support program for workload purposes
11in the annual Budget Act.
12(2) The department or a regional transportation agency may
13exercise any power possessed by it with respect to transportation
14projects to facilitate the transportation projects pursuant to this
15section. The department, regional transportation agency, and other
16state or local agencies may provide services to the contracting
17entity or lessee for which the public entity is reimbursed, including,
18but not limited to, planning, environmental planning, environmental
19certification, environmental review, preliminary design, design,
20right-of-way acquisition, construction, maintenance, and policing
21of these transportation projects. The department or regional
22transportation agency, as applicable, shall regularly inspect the
23facility and require the contracting entity or lessee to maintain and
24operate the facility according to adopted standards. Except as may
25otherwise be set forth in the lease agreement, the contracting entity
26or lessee shall be responsible for all costs due to development,
27maintenance, repair, rehabilitation, and reconstruction, and
29(g) (1) In selecting private entities with which to enter into
30these agreements, notwithstanding any other provision of law, the
31department and regional transportation agencies may utilize, but
32are not limited to utilizing, one or more of the following
34(A) Solicitations of proposals for defined projects and calls for
35project proposals within defined parameters.
36(B) Prequalification and short-listing of proposers prior to final
37evaluation of proposals.
38(C) Final evaluation of proposals based on qualifications and
39best value. The California Transportation Commission shall
P10 1develop and adopt criteria for making that evaluation prior to
2evaluation of a proposal.
3(D) Negotiations with proposers prior to award.
4(E) Acceptance of unsolicited proposals, with issuance of
5requests for competing proposals. Neither the department nor a
6regional transportation agency may award a contract to an
7unsolicited bidder without receiving at least one other responsible
9(2) When evaluating a proposal submitted by the contracting
10entity or lessee, the department or the regional transportation
11agency may award a contract on the basis of the lowest bid or best
13(h) The contracting entity or lessee shall have the following
15(1) Evidence that the members of the contracting entity or lessee
16have completed, or have demonstrated the experience, competency,
17capability, and capacity to complete, a project of similar size,
18scope, or complexity, and that proposed key personnel have
19sufficient experience and training to competently manage and
20complete the design and construction of the project, and a financial
21statement that ensures that the contracting entity or lessee has the
22capacity to complete the project.
23(2) The licenses, registration, and credentials required to design
24and construct the project, including, but not limited to, information
25on the revocation or suspension of any license, credential, or
27(3) Evidence that establishes that members of the contracting
28entity or lessee have the capacity to obtain all required payment
29and performance bonding, liability insurance, and errors and
31(4) Evidence that the contracting entity or lessee has workers’
32compensation experience, history, and a worker safety program
33of members of the contracting entity or lessee that is acceptable
34to the department or regional transportation agency.
35(5) A full disclosure regarding all of the following with respect
36to each member of the contracting entity or lessee during the past
38(A) Any serious or willful violation of Part 1 (commencing with
39Section 6300) of Division 5 of the Labor Code or the federal
40Occupational Safety and Health Act of 1970 (Public Law 91-596).
P11 1(B) Any instance where members of the contracting entity or
2lessee were debarred, disqualified, or removed from a federal,
3state, or local government public works project.
4(C) Any instance where members of the contracting entity or
5lessee, or its owners, officers, or managing employees submitted
6a bid on a public works project and were found to be nonresponsive
7or were found by an awarding body not to be a responsible bidder.
8(D) Any instance where members of the contracting entity or
9lessee, or its owners, officers, or managing employees defaulted
10on a construction contract.
11(E) Any violations of the Contractors’ State License Law
12(Chapter 9 (commencing with Section 7000) of Division 3 of the
13 Business and Professions Code), including, but not limited to,
14alleged violations of federal or state law regarding the payment of
15wages, benefits, apprenticeship requirements, or personal income
16tax withholding, or Federal Insurance Contributions Act (FICA)
18(F) Any bankruptcy or receivership of any member of the
19contracting entity or lessee, including, but not limited to,
20information concerning any work completed by a surety.
21(G) Any settled adverse claims, disputes, or lawsuits between
22the owner of a public works project and any member of the
23contracting entity or lessee during the five years preceding
24submission of a bid under this article, in which the claim,
25settlement, or judgment exceeds fifty thousand dollars ($50,000).
26Information shall also be provided concerning any work completed
27by a surety during this five-year period.
28(H) If the contracting entity or lessee is a partnership, joint
29venture, or an association that is not a legal entity, a copy of the
30agreement creating the partnership or association that specifies
31that all general partners, joint venturers, or association members
32agree to be fully liable for the performance under the agreement.
33(i) No agreement entered into pursuant to this section shall
34infringe on the authority of the department or a regional
35transportation agency to develop, maintain, repair, rehabilitate,
36operate, or lease any transportation project. Lease agreements may
37provide for reasonable compensation to the contracting entity or
38lessee for the adverse effects on toll revenue or user fee revenue
39due to the development, operation, or lease of supplemental
40transportation projects with the exception of any of the following:
P12 1(1) Projects identified in regional transportation plans prepared
2pursuant to Section 65080 of the Government Code.
3(2) Safety projects.
4(3) Improvement projects that will result in incidental capacity
6(4) Additional high-occupancy vehicle lanes or the conversion
7of existing lanes to high-occupancy vehicle lanes.
8(5) Projects located outside the boundaries of a public-private
9partnership project, to be defined by the lease agreement.
10However, compensation to a contracting entity or lessee shall
11only be made after a demonstrable reduction in use of the facility
12resulting in reduced toll or user fee revenues, and may not exceed
13the difference between the reduction in those revenues and the
14 amount necessary to cover the costs of debt service, including
15principal and interest on any debt incurred for the development,
16operation, maintenance, or rehabilitation of the facility.
17(j) (1) Agreements entered into pursuant to this section shall
18authorize the contracting entity or lessee to impose tolls and user
19fees for use of a facility constructed by it, and shall require that
20over the term of the lease the toll revenues and user fees be applied
21to payment of the capital outlay costs for the project, the costs
22associated with operations, toll and user fee collection,
23administration of the facility, reimbursement to the department or
24other governmental entity for the costs of services to develop and
25maintain the project, police services, and a reasonable return on
26investment. The agreement shall require that, notwithstanding
27Sections 164, 188, and 188.1, any excess toll or user fee revenue
28either be applied to any indebtedness incurred by the contracting
29entity or lessee with respect to the project, improvements to the
30project, or be paid into the State Highway Account, or for all three
31purposes, except that any excess toll revenue under a lease
32agreement with a regional transportation agency may be paid to
33the regional transportation agency for use in improving public
34transportation in and near the project boundaries.
35(2) Lease agreements shall establish specific toll or user fee
36rates. Any proposed increase in those rates not otherwise
37established or identified in the lease agreement during the term of
38the agreement shall first be approved by the department or regional
39transportation agency, as appropriate, after at least one public
P13 1hearing conducted at a location near the proposed or existing
3(3) The collection of tolls and user fees for the use of these
4facilities may be extended by the commission or regional
5transportation agency at the expiration of the lease agreement.
6However, those tolls or user fees shall not be used for any purpose
7other than for the improvement, continued operation, or
8maintenance of the facility.
9(k) Agreements entered into pursuant to this section shall include
10indemnity, defense, and hold harmless provisions agreed to by the
11department or regional transportation agency and the contracting
12entity or lessee, including provisions for indemnifying the State
13of California or the regional transportation agency against any
14claims or losses resulting or accruing from the performance of the
15contracting entity or lessee.
16(l) The plans and specifications for each transportation project
17on the state highway system developed, maintained, repaired,
18rehabilitated, reconstructed, or operated pursuant to this section
19shall comply with the department’s standards for state
20transportation projects. The lease agreement shall include
21performance standards, including, but not limited to, levels of
22service. The agreement shall require facilities on the state highway
23system to meet all requirements for noise mitigation, landscaping,
24pollution control, and safety that otherwise would apply if the
25department were designing, building, and operating the facility.
26If a facility is on the state highway system, the facility leased
27pursuant to this section shall, during the term of the lease, be
28deemed to be a part of the state highway system for purposes of
29identification, maintenance, enforcement of traffic laws, and for
30the purposes of Division 3.6 (commencing with Section 810) of
31Title 1 of the Government Code.
32(m) Failure to comply with the lease agreement in any significant
33manner shall constitute a default under the agreement and the
34department or the regional transportation agency, as appropriate,
35shall have the option to initiate processes to revert the facility to
36the public agency.
37(n) The assignment authorized by subdivision (c) of Section
38130240 of the Public Utilities Code is consistent with this section.
39(o) A lease to a private entity pursuant to this section is deemed
40to be public property for a public purpose and exempt from
P14 1leasehold, real property, and ad valorem taxation, except for the
2use, if any, of that property for ancillary commercial purposes.
3(p) Nothing in this section is intended to infringe on the authority
4to develop high-occupancy toll lanes pursuant to Section 149.4,
5149.5, or 149.6.
6(q) Nothing in this section shall be construed to allow the
7conversion of any existing nontoll or nonuser-fee lanes into tolled
8or user fee lanes with the exception of a high-occupancy vehicle
9lane that may be operated as a high-occupancy toll lane for vehicles
10not otherwise meeting the requirements for use of that lane.
11(r) The lease agreement shall require the contracting entity or
12lessee to provide any information or data requested by the
13California Transportation Commission or the Legislative Analyst.
14The commission, in cooperation with the Legislative Analyst, shall
15annually prepare a report on the progress of each project and
16ultimately on the operation of the resulting facility. The report
17shall include, but not be limited to, a review of the performance
18standards, a financial analysis, and any concerns or
19recommendations for changes in the program authorized by this
21(s) Notwithstanding any other provision of this section, no lease
22agreement may be entered into pursuant to the section that affects,
23alters, or supersedes the Memorandum of Understanding (MOU),
24dated November 26, 2008, entered into by the Golden Gate Bridge
25Highway and Transportation District, the Metropolitan
26Transportation Commission, and the San Francisco County
27Transportation Authority, relating to the financing of the U.S.
28Highway 101/Doyle Drive reconstruction project located in the
29City and County of San Francisco.
30(t) No lease agreements may be entered into under this section
31on or after January 1, ____.
Section 183.1 of the Streets and Highways Code is
34amended to read:
Notwithstanding subdivision (a) of Section 182 or any
36other provision of law, money deposited into the account that is
37not subject to Article XIX of the California Constitution, including,
38but not limited to, money that is derived from the sale of
39documents, charges for miscellaneous services to the public,
40condemnation deposits fund investments, rental of state property,
P15 1or any other miscellaneous uses of property or money, may be
2used for any transportation purpose authorized by statute, upon
3appropriation by the Legislature or, after transfer to another fund,
4upon appropriation by the Legislature from that fund.
Section 2103 of the Streets and Highways Code is
7amended to read:
(a) Notwithstanding Section 13340 of the Government
9Code, of the net revenues deposited to the credit of the Highway
10Users Tax Account that are derived from the increases in the rates
11of taxes that are imposed pursuant to subdivision (b) of Section
127360 and Section 7361.1 of the Revenue and Taxation Code, all
13of the following shall occur on a monthly basis:
14(1) Forty-four percent shall be transferred by the Controller to
15the State Highway Account to fund projects in the State
16Transportation Improvement Program that are consistent with
17Section 2 of Article XIX of the California Constitution.
18(2) Twelve percent shall be transferred to the State Highway
19Account to fund projects in the State Highway Operation and
21(3) Forty-four percent shall be apportioned by the Controller
22for local street and road purposes as follows:
23(A) Fifty percent shall be apportioned by the Controller to cities,
24including a city and county, in the proportion that the total
25population of the city bears to the total population of all the cities
26in the state.
27(B) Fifty percent shall be apportioned by the Controller to
28counties, including a city and county, in accordance with the
30(i) Seventy-five percent shall be apportioned among the counties
31in the proportion that the number of fee-paid and exempt vehicles
32that are registered in the county bear to the number of fee-paid and
33exempt vehicles registered in the state.
34(ii) Twenty-five percent shall be apportioned among the counties
35in the proportion that the number of miles of maintained county
36roads in each county bear to the total number of miles of
37maintained county roads in the state. For the purposes of
38apportioning funds under this subparagraph, any roads within the
39boundaries of a city and county that are not state highways shall
40be deemed to be county roads.
P16 1(b) After the transfers or other actions pursuant to subdivision
2(a), at least 90 percent of the balance deposited to the credit of the
3Highway Users Tax Account in the Transportation Tax Fund by
4the 28th day of each month shall be apportioned or transferred, as
5applicable, by the Controller by the second working day thereafter,
6except for June, in which case the apportionment or transfer shall
7be made the same day. These apportionments or transfers shall be
8made as provided for in Sections 2104 to 2122, inclusive. If
9information is not available to make the apportionment or transfer
10as required, the apportionment or transfer shall be made on the
11basis of the information of the previous month. Amounts not
12apportioned or transferred shall be included in the apportionment
13or transfer of the subsequent month.
14(c) Notwithstanding any other law, the funds apportioned by
15the Controller to cities and counties pursuant to paragraph (3) of
16subdivision (a) are not subject to Section 7104 or 7104.2 of the
17Revenue and Taxation Code. These funds may be expended for
18any street and road purpose consistent with the requirements of
Section 9400.1 of the Vehicle Code is amended to
(a) (1) In addition to any other required fee, there
24shall be paid the fees set forth in this section for the registration
25of commercial motor vehicles operated either singly or in
26combination with a declared gross vehicle weight of 10,001 pounds
27or more. Pickup truck and electric vehicle weight fees are not
28calculated under this section.
29(2) The weight of a vehicle issued an identification plate
30pursuant to an application under Section 5014, and the weight of
31an implement of husbandry as defined in Section 36000, shall not
32be considered when calculating, pursuant to this section, the
33declared gross vehicle weight of a towing commercial motor
34vehicle that is owned and operated exclusively by a farmer or an
35employee of a farmer in the conduct of agricultural operations.
36(3) Tow trucks that are utilized to render assistance to the
37motoring public or to tow or carry impounded vehicles shall pay
38fees in accordance with this section, except that the fee calculation
39shall be based only on the gross vehicle weight rating of the towing
40or carrying vehicle. Upon each initial or transfer application for
P17 1registration of a tow truck described in this paragraph, the
2registered owner or lessee or that owner’s or lessee’s designee,
3shall certify to the department the gross vehicle weight rating of
4the tow truck:
Gross Vehicle Weight Range
22(b) The fees specified in subdivision (a) apply to both of the
24(1) An initial or original registration occurring on or after
25December 31, 2001, to December 30, 2003, inclusive, of a
26commercial motor vehicle operated either singly or in combination
27with a declared gross vehicle weight of 10,001 pounds or more.
28(2) The renewal of registration of a commercial motor vehicle
29operated either singly or in combination, with a declared gross
30vehicle weight of 10,001 pounds or more for which registration
31expires on or after December 31, 2001, to December 30, 2003,
33(c) (1) For both an initial or original registration occurring on
34or after December 31, 2003, of a commercial motor vehicle
35operated either singly or in combination with a declared gross
36vehicle weight of 10,001 pounds or more, and the renewal of
37registration of a commercial motor vehicle operated either singly
38or in combination, with a declared gross vehicle weight of 10,001
39pounds or more for which registration expires on or after December
4031, 2003, there shall be paid fees as follows:
Gross Vehicle Weight Range
17(2) For the purpose of obtaining “revenue neutrality” as
18described in Sections 1 and 59 of Senate Bill 2084 of the
191999-2000 Regular Session (Chapter 861 of the Statutes of 2000),
20the Director of Finance shall review the final 2003-04 Statement
21of Transactions of the State Highway Account. If that review
22indicates that the actual truck weight fee revenues deposited in the
23State Highway Account do not total at least seven hundred
24eighty-nine million dollars ($789,000,000), the Director of Finance
25shall instruct the department to adjust the schedule set forth in
26paragraph (1), but not to exceed the following fee amounts:
Gross Vehicle Weight Range
4(d) (1) In addition to the fees set forth in subdivision (a), a
5Cargo Theft Interdiction Program fee of three dollars ($3) shall
6be paid at the time of initial or original registration or renewal of
7registration of each motor vehicle subject to weight fees under this
9(2) This subdivision does not apply to vehicles used or
10maintained for the transportation of persons for hire, compensation
11or profit, and tow trucks.
12(3) For vehicles registered under Article 4 (commencing with
13Section 8050) of Chapter 4, the fee imposed under this subdivision
14shall be apportioned as required for registration fees under that
16(4) Funds collected
pursuant to the Cargo Theft Interdiction
17Program shall not be proportionately reduced for each month and
18shall be transferred to the Motor Carriers Safety Improvement
20(e) Notwithstanding Section 42270 or any other provision of
21law, of the moneys collected by the department under this section,
22one hundred twenty-two dollars ($122) for each initial, original,
23and renewal registration shall be reported monthly to the Controller,
24and at the same time, deposited in the State Treasury to the credit
25of the Motor Vehicle Account in the State Transportation Fund.
26All other moneys collected by the department under this section
27shall be deposited to the credit of the State Highway Account in
28the State Transportation Fund. One hundred twenty-two dollars
29($122) of the fee imposed under this section shall not be
30proportionately reduced for each month. For vehicles registered
31under Article 4 (commencing with Section 8050) of Chapter 4,
32the fee shall be apportioned as required for registration under that
34(f) (1) The department, in consultation with the Department of
35the California Highway Patrol, shall design and make available a
36set of distinctive weight decals that reflect the declared gross
37combined weight or gross operating weight reported to the
38department at the time of initial registration, registration renewal,
39or when a weight change is reported to the department pursuant
40to Section 9406.1. A new decal shall be issued on each renewal
P20 1or when the weight is changed pursuant to Section 9406.1. The
2decal for a tow truck that is subject to this section shall reflect the
3gross vehicle weight rating or weight code.
4(2) The department may charge a fee, not to exceed ten dollars
5($10), for the department’s actual cost of producing and issuing
6each set of decals issued under paragraph (1).
7(3) The weight decal shall be in sharp contrast to the background
8and shall be of a size, shape, and color that is readily legible during
9daylight hours from a distance of 50 feet.
10(4) Each vehicle subject to this section shall display the weight
11decal on both the right and left sides of the vehicle.
12(5) A person may not display upon a vehicle a decal issued
13pursuant to this subdivision that does not reflect the declared weight
14reported to the department.
15(6) Notwithstanding subdivision (e) or any other provision of
16law, the moneys collected by the department under this subdivision
17shall be deposited in the State Treasury to the credit of the Motor
18Vehicle Account in the State Transportation Fund.
19(7) This subdivision shall apply to vehicles subject to this section
20at the time of an initial registration, registration renewal, or reported
21weight change that occurs on or after July 1, 2004.
22(8) The following shall apply to vehicles registered under the
23permanent fleet registration program pursuant to Article 9.5
24(commencing with Section 5301) of Chapter 1:
25(A) The department, in consultation with the Department of the
26California Highway Patrol, shall distinguish the weight decals
27issued to permanent fleet registration vehicles from those issued
28to other vehicles.
29(B) The department shall issue the distinguishable weight decals
30only to the following:
31(i) A permanent fleet registration vehicle that is registered with
32the department on January 1, 2005.
33(ii) On and after January 1, 2005, a vehicle for which the
34department has an application for initial registration as a permanent
35fleet registration vehicle.
36(iii) On and after January 1, 2005, a permanent fleet registration
37vehicle that has a weight change pursuant to Section 9406.1.
38(C) The weight decal issued under this paragraph shall comply
39 with the applicable provisions of paragraphs (1) to (6), inclusive.
Section 9400.4 of the Vehicle Code is repealed.
Section 42205 of the Vehicle Code is amended to
(a) Notwithstanding Chapter 3 (commencing with
7Section 42270), the department shall file, at least monthly with
8the Controller, a report of money received by the department
9pursuant to Section 9400 for the previous month and shall, at the
10same time, remit all money so reported to the Treasurer. On order
11of the Controller, the Treasurer shall deposit all money so remitted
12into the State Highway Account in the State Transportation Fund.
13(b) The Legislature shall appropriate from the State Highway
14Account in the State Transportation Fund to the department and
15the Franchise Tax Board amounts equal to the costs incurred by
16each in performing their duties pursuant to Article 3 (commencing
17with Section 9400) of Chapter 6 of Division 3. The applicable
18amounts shall be determined so that the appropriate costs for
19registration and weight fee collection activities are appropriated
20between the recipients of revenues in proportion to the revenues
21that would have been received individually by those recipients if
22the total fee imposed under the Vehicle License Fee Law (Part 5
23(commencing with Section 10701) of Division 2 of the Revenue
24and Taxation Code) was 2 percent of the market value of a vehicle.
25The remainder of the funds collected under Section 9400 and
26deposited in the account may be appropriated to the Department
27of Transportation, the Department of the California Highway
28Patrol, and the Department of Motor Vehicles for the purposes
29authorized under Section 3 of Article XIX of the California