HomeMy WebLinkAboutAgenda Report - February 1, 2017 C-16TM
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE:
MEETING DATE:
PREPARED BY:
AGENDA ITEM
CIb
Receive Report Regarding Communications Pertaining to Assembly Bill 1 (Frazier)
— Transportation Funding and Senate Bill 1 (Beall) — Transportation Funding
February 1, 2017
City Clerk
RECOMMENDED ACTION:
BACKGROUND INFORMATION:
Receive report regarding communications pertaining to Assembly
Bill 1 (Frazier) — Transportation Funding and Senate Bill 1 (Beall) —
Transportation Funding.
The City received a request for communication from the League of
California Cities regarding AB 1 (Frazier) and SB 1 (Beall). There
was a need to send a letter of support immediately in light of a
pending hearing.
AB 1 and SB 1, when fully phased in, would generate an additional $6 billion annually to provide
desperately -needed funding for the state and local transportation network. To repair and maintain
existing transportation infrastructure, the proposals would generate up to $2.4 billion and $2.2 billion
annually for the state's highway system and local streets and roads, respectively. The bills also provide
nearly $600 million for freight and the state's trade corridors, over a half billion for transit and intercity rail,
and up to $150 million to support active transportation programs throughout the state.
The proposals takes the approach of raising revenue over a variety of sources, such as a 12 -cent increase
to the gas tax to restore some of its purchasing power, ending the Board of Equalization's "true up" process
on the price -based excise tax on gas, a $38 increase to the vehicle registration fee, a $100 vehicle
registration fee on zero emission vehicles, a 20 -cent increase to the diesel excise tax, $300 million from
existing cap and trade funds, and returning $500 million in vehicle weight fees phased in over five years.
The proposals include a series of reforms to improve efficiency, transparency, and accountability, such as
restoring independence to the California Transportation Commission, creating the Office of the
Transportation Inspection General with audit and investigation authority over the state's transportation
spending, and establishing local reporting requirements on local transportation spending. To streamline
roadwork, the bills permanently extend and expand on the limited exemptions to California's Environmental
Quality Act (CEQA) for repair, maintenance, and minor alteration projects on existing roadways to cities and
counties with populations greater than 100,000 and state roadways. The proposals also create an advanced
mitigation program which authorizes the Natural Resources Agency to establish state and regional
transportation mitigation plans and mitigation banks to allow transportation projects to fulfill their
environmental requirements in advance.
The attached letter, signed by the Mayor, was sent out on January 9, 2017. The request for support and
text of the bills are also attached. This report is provided for informational purposes only, pursuant to policy.
FISCAL IMPACT:
FUNDING AVAILABLE:
Not applicable.
Not applicable.
APPROVED:
N:\Administration\CLERK\Council\COUNCOM\Support AB1 SB1.doc
44A
nifer M.
ity Clerk
erraiolo
n c wb..er, City Manager
CITY COUNCIL
DOUG KUEHNE, Mayor
ALAN NAKANISHI,
Mayor Pro Tempore
MARK CHANDLER
BOB JOHNSON
JOANNE MOUNCE
CITY OF LODI
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209) 333-6702 / FAX (209) 333-6807
www.lodi.gov cityclerk@lodi.gov
January 9, 2017
The Honorable Jim Frazier
Chair, Assembly Transportation Committee
California State Capitol, Room 3091
Sacramento, CA 95814
FAX: (916) 319-2111
STEPHEN SCHWABAUER
City Manager
JENNIFER M. FERRAIOLO
City Clerk
JANICE D. MAGDICH
City Attorney
RE: AB 1 (Frazier) — Transportation Funding (as introduced December 5, 2016)
Notice of Support
The City of Lodi is pleased to support your AB 1, which represents a comprehensive
transportation proposal inclusive of sensible reforms, modest increases to existing
revenue sources, and robust infrastructure investment. The proposal presents an
opportunity for the new legislature to advance a comprehensive framework to address
the overwhelming backlog of repair and deferred maintenance, as well as other
transportation needs in the early part of 2017.
It would be an understatement to say the time to act is now to address the $73 billion
unmet funding need for local streets and roads and $72 billion backlog to the State's
Highway System. For local streets and roads alone, the funding need grows by an
additional $20 billion in just ten years. With the expressed commitment of Legislative
Leadership and this Administration to getting this done in the early parts of 2017, we
urge this legislature's immediate attention to this proposal as the vehicle to deliver this
victory for California.
Lodi has multiple transportation projects that have repeatedly been postponed due to
funding shortfalls including: 1) Needed safety improvements to Turner Road and
State Route 99; 2) Realigning Lockeford Street between Central Avenue and
State Route 99 to improve safety and eliminate line of sight obstructions; and 3)
Numerous roadway pavement maintenance projects needed to avoid more costly
roadway reconstruction.
When fully phased in, AB 1 would generate an additional $6 billion annually to provide
desperately -needed funding for the state and local transportation network. To repair and
maintain existing transportation infrastructure, the proposal would generate up to $2.4
billion and $2.2 billion annually for the state's highway system and local streets and
roads, respectively. The bill also provides nearly $600 million for freight and the state's
trade corridors, over a half billion for transit and intercity rail, and up to $150 million to
support active transportation programs throughout the state.
LAB1.doc
Support of AB1 (Frazier) Transportation Funding
January 9, 2017
Page 2
The proposal takes the approach of raising revenue over a variety of sources, such as a
12 -cent increase to the gas tax to restore some of its purchasing power, ending the
Board of Equalization's "true up" process on the price -based excise tax on gas, a
$38 increase to the vehicle registration fee, a $100 vehicle registration fee on zero
emission vehicles, a 20 -cent increase to the diesel excise tax, $300 million from existing
cap and trade funds, and returning $500 million in vehicle weight fees phased in over
five years.
In addition to raising revenue, the proposal includes a series of reforms to improve
efficiency, transparency, and accountability, such as restoring independence to the
California Transportation Commission, creating the Office of the Transportation
Inspection General with audit and investigation authority over the state's transportation
spending, and establishing local reporting requirements on local transportation
spending. To streamline roadwork, the bill permanently extends and expands on the
limited exemptions to California's Environmental Quality Act (CEQA) for repair,
maintenance, and minor alteration projects on existing roadways to cities and counties
with populations greater than 100,000 and state roadways. The proposal also creates an
advanced mitigation program which authorizes the Natural Resources Agency to
establish state and regional transportation mitigation plans and mitigation banks to allow
transportation projects to fulfill their environmental requirements in advance.
Overall, this proposal provides a comprehensive transportation reform and funding
package that picks up where we left off at the end of the special session, while giving
this legislature an opportunity for early action. While the legislature has had success in
recent years in balancing the state budget, we can no longer afford to ignore our most
basic repair and maintenance needs if we wish to avoid systematic failure of the state's
entire transportation infrastructure. There may be no better way to put Californians back
to work and stimulate our economy than making the roads we and our children rely on
everyday safe again.
For these reasons, the City of Lodi supports AB 1 (Frazier).
Sincerely,
Id! Doxy R
Doug Kuehne
Mayor, City of Lodi
cc: Senator Cathleen Galgiani, Fax: (916) 651-4905
Assemblymember Jim Cooper, Fax: (916) 319-2109
Stephen Qualls, League of California Cities, squalls@cacities.org
Meg Desmond, League of California Cities, mdesmond@cacities.org
CITY COUNCIL
DOUG KUEHNE, Mayor
ALAN NAKANISHI,
Mayor Pro Tempore
MARK CHANDLER
BOB JOHNSON
JOANNE MOUNCE
CITY OF LODI
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209) 333-6702 / FAX (209) 333-6807
www.lodi.gov cityclerk@lodi.gov
January 9, 2017
The Honorable Jim Beall
Chair, Senate Transportation Committee
California State Capitol, Room 2082
Sacramento, CA 95814
FAX: (916) 651-4915
STEPHEN SCHWABAUER
City Manager
JENNIFER M. FERRAIOLO
City Clerk
JANICE D. MAGDICH
City Attorney
RE: SB 1 (Beall) — Transportation Funding (as introduced December 5, 2016)
Notice of Support
The City of Lodi is pleased to support your SB 1, which represents a comprehensive
transportation proposal inclusive of sensible reforms, modest increases to existing
revenue sources, and robust infrastructure investment. The proposal presents an
opportunity for the new legislature to advance a comprehensive framework to address
the overwhelming backlog of repair and deferred maintenance, as well as other
transportation needs in the early part of 2017.
It would be an understatement to say the time to act is now to address the $73 billion
unmet funding need for local streets and roads and $72 billion backlog to the State's
Highway System. For local streets and roads alone, the funding need grows by an
additional $20 billion in just ten years. With the expressed commitment of Legislative
Leadership and this Administration to getting this done in the early parts of 2017, we
urge this legislature's immediate attention to this proposal as the vehicle to deliver this
victory for California.
Lodi has multiple transportation projects that have repeatedly been postponed due to
funding shortfalls including: 1) Needed safety improvements to Turner Road and
State Route 99; 2) Realigning Lockeford Street between Central Avenue and
State Route 99 to improve safety and eliminate line of sight obstructions; and 3)
Numerous roadway pavement maintenance projects needed to avoid more costly
roadway reconstruction.
When fully phased in, SB 1 would generate an additional $6 billion annually to provide
desperately -needed funding for the state and local transportation network. To repair and
maintain existing transportation infrastructure, the proposal would generate up to
$2.4 billion and $2.2 billion annually for the state's highway system and local streets and
roads, respectively. The bill also provides nearly $600 million for freight and the state's
trade corridors, over a half billion for transit and intercity rail, and up to $150 million to
support active transportation programs throughout the state.
LSB1.doc
Support of SB1 (Beall) Transportation Funding
January 9, 2017
Page 2
The proposal takes the approach of raising revenue over a variety of sources, such as a
12 -cent increase to the gas tax to restore some of its purchasing power, ending the
Board of Equalization's "true up" process on the price -based excise tax on gas, a
$38 increase to the vehicle registration fee, a $100 vehicle registration fee on zero
emission vehicles, a 20 -cent increase to the diesel excise tax, $300 million from existing
cap and trade funds, and returning $500 million in vehicle weight fees phased in over
five years.
In addition to raising revenue, the proposal includes a series of reforms to improve
efficiency, transparency, and accountability, such as restoring independence to the
California Transportation Commission, creating the Office of the Transportation
Inspection General with audit and investigation authority over the state's transportation
spending, and establishing local reporting requirements on local transportation
spending. To streamline roadwork, the bill permanently extends and expands on the
limited exemptions to California's Environmental Quality Act (CEQA) for repair,
maintenance, and minor alteration projects on existing roadways to cities and counties
with populations greater than 100,000 and state roadways. The proposal also creates an
advanced mitigation program which authorizes the Natural Resources Agency to
establish state and regional transportation mitigation plans and mitigation banks to allow
transportation projects to fulfill their environmental requirements in advance.
Overall, this proposal provides a comprehensive transportation reform and funding
package that picks up where we left off at the end of the special session, while giving
this legislature an opportunity for early action. While the legislature has had success in
recent years in balancing the state budget, we can no longer afford to ignore our most
basic repair and maintenance needs if we wish to avoid systematic failure of the state's
entire transportation infrastructure. There may be no better way to put Californians back
to work and stimulate our economy than making the roads we and our children rely on
everyday safe again.
For these reasons, the City of Lodi supports SB 1 (Beall).
Sincerely,
Id! Doxy R
Doug Kuehne
Mayor, City of Lodi
cc: Senator Cathleen Galgiani, Fax: (916) 651-4905
Assemblymember Jim Cooper, Fax: (916) 319-2109
Stephen Qualls, League of California Cities, squalls@cacities.orq
Meg Desmond, League of California Cities, mdesmond@cacities.org
Pamela Farris
Subject: FW: URGENT: Letters Needed
Attachments: CITY SAMPLE - SB 1 Support.docx; ATT00001.htm; CITY SAMPLE - AB 1 Support.docx;
ATT00002.htm; Talking Points_AB1 and SB1.pdf; ATT00003.htm; ACTION ALERT AB 1
and SB 1 - Transportation Funding.pdf; ATT00004.htm; ACTION ALERT AB 1 and SB 1 -
Transportation Funding.docx; ATT00005.htm
From: "Stephen R. Qualls" <squalls@cacities.org>
Date: January 6, 2017 at 4:47:29 PM PST
To: Undisclosed recipients:;
Subject: URGENT: Letters Needed
Please see below an action alert on AB 1 and SB 1. Two transportation bills that are badly needed
to address the need for increased and secure funding for state and local streets and roads.
Attached you will find detailed information, talking points for communicating with your
legislator, and sample letters for your city to send to your legislators.
If you have any questions, please be sure to contact me.
Again I can't stress the importance of contacting your legislator about the need to address
transportation funding.
ACTION ALERT!!
AB 1 (Frazier) & SB 1 (Beall)
Transportation Funding
SUPPORT
Background:
AB 1 (Frazier)‹http://ct3kl.capitoltrack.com/Bills/17Bills/asm/ab 0001-
0050/ab 1 99 I bill.pdf> and SB 1
(Beall)<http://ct3k1.capitoitrack.com/Billsf17Bills/senlsb_0001-0050/sb 1_99 I billpdtare
similar proposals which will provide comprehensive and sensible transportation reforms, modest
increases to existing revenue sources, and meaningful infrastructure investments. These
proposals present an opportunity for the 2017 legislature to advance a broad framework to
address the overwhelming accumulation of needed repairs and deferred maintenance in addition
1
to other transportation needs.
The time is now to address the $73 billion unmet funding need for local streets and roads and the
$72 billion backlog to the State's Highway System. The funding need will grow by an additional
$20 billion in just ten years for local streets and roads alone.
California's leaders need to face the fact that the current transportation funding system is
antiquated due to fuel efficiency advancements and a gas tax which was set in 1994 and has
remained unadjusted.
AB 1 and SB 1 would raise revenue over a variety of sources:
• A 12 cent increase to the gas tax (SB 1 would ask to phase this increase in over 3 years);
• Ending the Board of Equalization's "true up" process on the unreliable price based excise
tax on gas;
• A $38 increase to the vehicle registration fee;
• A $100 vehicle registration fee on zero emission vehicles;
• A 20 cent increase to the diesel excise tax;
$300 million from existing cap and trade funds; and
$500 million in vehicle weight fees phased in over five years.
Through these revenue sources, AB 1 and SB 1 would generate an additional $6 billion annually
to provide desperately needed funding for the state and local transportation network. In addition
to raising revenue, the proposal includes a series of reforms to improve efficiency, transparency,
and accountability.
With the expressed commitment of Legislative Leadership and the Governor to finding a
solution to our crumbling roads and an obsolete transportation funding stream, we urge this
legislature to turn their immediate attention to both AB 1 and SB 1 as the vehicles to deliver this
victory for California.
ACTION:
Please send your CITY LETTERS of SUPPORT for AB 1 and SB 1 as soon as possible. It is
critical for all Assembly Members and Senators to hear from their cities so that action on this
2
critical issue is taken early. Sample support letters are attached.
You can find your Legislator's contact information here: http://tindyourrep.legislature.ca.govl.
Talking Points:
• These proposals provide comprehensive transportation reform and a funding package that
picks up where we left off at the end of the special session and gives this legislature an
opportunity for early action.
• While the legislature has had success in recent years in balancing the state budget, we can
no longer afford to ignore our most basic repair and maintenance needs if we wish to avoid
systematic failure of the state's entire transportation infrastructure.
• These proposals would create more than 500,000 jobs. There may be no better way to
stimulate our economy than making the roads we and our children rely on safe again.
• An influx of $6 billion gives California more leverage to complete more repair projects on
a larger scale which translates to faster time tables and fewer tax dollars spent per repair project.
We have to face the fact that California's obsolete funding system has left us with
crumbling roads and aging bridges. Our future relies upon a reliable road system that is able to
withstand major weather and earthquake events.
The gas tax has remained unchanged since 1994 and due to fuel efficiency advancements,
a motorist who drove 12,000 miles in 2016 paid $101 in state per -gallon gas tax compared to the
$111 paid by a driver in 1994. To put this in perspective, if the per -gallon gas tax had been
continually adjusted over the years for inflation, a driver today would be paying $183.71
annually.
City of would receive an additional $ [Refer to the Local Streets & Roads
Funding<h tt p : //www. c ac i t i es. org/Resources- D ocu ments/Po l i cy-Advocacy - S ect i o nIH o t-
Issues/Transportation-Funding/AB 1 -SB 1-LSR 161215.aspx> document for your city's estimated
allocation] under each of the proposals, which we could use to help stimulate our local economy,
create job growth, and improve the conditions of our local streets.
3
Stephen Qualls
Central Valley Regional Public Affairs Manager
League of California Cities
209-614-0118
Fax 209-883-0653
squalls@cacities.org< nailto:squal1s rr cacities.org>
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NAAAyvLINAAAJ&attcnt=i &attid0=BAABAAA A&attcidmage002.prig%4001CF9F55.15
4BCF00]
Strengthening California Cities through Advocacy and Education
To expand and protect local control for cities through education and
advocacy in order to enhance the quality of life for all Californians.
<https://mail.cacities .orglowalredir.aspx?C=9ba 1 cebeda914a8d8b298c0154bMad &URL=h
ttp%3 a%2 t%2 fwww. Kaci ti e s. org%2 fAC>
PLEASE DO NOT distribute political campaign advocacy information from public (city hall)
computers, on city time, or using public resources, even if it's from your personal email
account. If in doubt, check with your city attorney.??
* * *Disclaimer* * *Please Note: Please take the following precautions if this email is about a
CITIPAC event. Though it is not illegal for you to receive this notice via a city e-mail address,
you should not respond to it or forward it using public resources. You may however forward this
message to your non-public e-mail account for distribution on non-public time. If you have
questions about the event or need additional information, please contact Mike Egan at (916) 658-
8271 or egan@cacities.org
4
ACTION ALERT!!
AB 1 (Frazier) & SB 1 (Beall)
Transportation Funding
SUPPORT
Background:
AB 1 (Frazier) and 513 1 (Beall) are similar proposals which will provide comprehensive and sensible
transportation reforms, modest increases to existing revenue sources, and meaningful infrastructure
investments. These proposals present an opportunity for the 2017 legislature to advance a broad
framework to address the overwhelming accumulation of needed repairs and deferred maintenance in
addition to other transportation needs.
The time is now to address the $73 billion unmet funding need for local streets and roads and the $72
billion backlog to the State's Highway System. The funding need will grow by an additional $20 billion in
just ten years for local streets and roads alone.
California's leaders need to face the fact that the current transportation funding system is antiquated
due to fuel efficiency advancements and a gas tax which was set in 1994 and has remained unadjusted.
AB 1 and SB 1 would raise revenue over a variety of sources:
■ A 12 cent increase to the gas tax (SB 1 would ask to phase this increase in over 3 years);
• Ending the Board of Equalization's "true up" process on the unreliable price based excise tax on
gas;
• A $38 increase to the vehicle registration fee;
• A $100 vehicle registration fee on zero emission vehicles;
• A 20 cent increase to the diesel excise tax;
• $300 million from existing cap and trade funds; and
■ $500 million in vehicle weight fees phased in over five years.
Through these revenue sources, AB 1 and SB 1 would generate an additional $6 billion annually to
provide desperately needed funding for the state and local transportation network. In addition to raising
revenue, the proposal includes a series of reforms to improve efficiency, transparency, and
accountability.
With the expressed commitment of Legislative Leadership and the Governor to finding a solution to our
crumbling roads and an obsolete transportation funding stream, we urge this legislature to turn their
immediate attention to both AB 1 and SB 1 as the vehicles to deliver this victory for California.
ACTION:
Please send your CITY LETTERS of SUPPORT for AB 1 and SB 1 as soon as possible. It is critical for all
Assembly Members and Senators to hear from their cities so that action on this critical issue is taken
early. Sample support letters are attached.
You can find your Legislator's contact information here: http://findvourrep.legislature.ca.gov/.
AB 1 (Frazier) & SB 1 (Beall)
Transportation Funding
SUPPORT
Talking Points:
• These proposals provide comprehensive transportation reform and a funding package
that picks up where we left off at the end of the special session and gives this legislature
an opportunity for early action.
• While the legislature has had success in recent years in balancing the state budget, we
can no longer afford to ignore our most basic repair and maintenance needs if we wish
to avoid systematic failure of the state's entire transportation infrastructure.
• These proposals would create more than 500,000 jobs. There may be no better way to
stimulate our economy than making the roads we and our children rely on safe again.
• An influx of $6 billion gives California more leverage to complete more repair projects
on a larger scale which translates to faster time tables and fewer tax dollars spent per
repair project.
• We have to face the fact that California's obsolete funding system has left us with
crumbling roads and aging bridges. Our future relies upon a reliable road system that is
able to withstand major weather and earthquake events.
• The gas tax has remained unchanged since 1994 and due to fuel efficiency
advancements, a motorist who drove 12,000 miles in 2016 paid $101 in state per -gallon
gas tax compared to the $111 paid by a driver in 1994. To put this in perspective, if the
per -gallon gas tax had been continually adjusted over the years for inflation, a driver
today would be paying $183.71 annually.
• City of would receive an additional $ [Refer to the Local Streets & Roads
Fu_ nding document for your city's estimated allocation] under each of the proposals,
which we could use to help stimulate our local economy, create job growth, and
improve the conditions of our local streets.
CALIFORNIA LEGISLATURE -2017-18 REGULAR SESSION
ASSEMBLY BILL No. 1
Introduced by Assembly Member Frazier
(Coauthors: Assembly Members Low, Mullin, and Santiago)
December 5, 2016
An act to amend Sections 13975, 14500, 14526.5, and 16965 of, to
add Sections 14033, 14526.7, and 16321 to, to add Part 5.1 (commencing
with Section 14460) to Division 3 of Title 2 of, and to repeal Section
14534.1 of, the Government Code, to amend Section 39719 of the Health
and Safety Code, to amend Section 21080.37 of, and to add Division
13.6 (commencing with Section 21200) to, the Public Resources Code,
to amend Section 99312.1 of, and to add Section 99314.9 to, the Public
Utilities Code, to amend Sections 6051.8, 6201.8, 7360, 8352.4, 8352.5,
8352.6, and 60050 of the Revenue and Taxation Code, to amend
Sections 183.1, 2192, 2192.1, and 2192.2 of, to add Sections 820.1,
2103.1, and 2192.4 to, and to add Chapter 2 (commencing with Section
2030) to Division 3 of, the Streets and Highways Code, and to add
Sections 9250.3, 9250.6, and 9400.5 to the Vehicle Code, relating to
transportation, making an appropriation therefor, and declaring the
urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 1, as introduced, Frazier. Transportation funding.
(1) Existing law provides various sources of funding for transportation
purposes, including funding for the state highway system and the local
street and road system. These funding sources include, among others,
fuel excise taxes, commercial vehicle weight fees, local transactions
and use taxes, and federal funds. Existing law imposes certain
registration fees on vehicles, with revenues from these fees deposited
99
AB 1 —2—
in the Motor Vehicle Account and used to fund the Department of Motor
Vehicles and the Department of the California Highway Patrol. Existing
law provides for the monthly transfer of excess balances in the Motor
Vehicle Account to the State Highway Account.
This bill would create the Road Maintenance and Rehabilitation
Program to address deferred maintenance on the state highway system
and the local street and road system. The bill would require the
California Transportation Commission to adopt performance criteria,
consistent with a specified asset management plan, to ensure efficient
use of certain funds available for the program. The bill would provide
for the deposit of various funds for the program in the Road Maintenance
and Rehabilitation Account, which the bill would create in the State
Transportation Fund, including revenues attributable to a $0.012 per
gallon increase in the motor vehicle fuel (gasoline) tax imposed by the
bill with an inflation adjustment, as provided, an increase of $38 in the
annual vehicle registration fee with an inflation adjustment, as provided,
a new $165 annual vehicle registration fee with an inflation adjustment,
as provided, applicable to zero -emission motor vehicles, as defined,
and certain miscellaneous revenues described in (7) below that are not
restricted as to expenditure by Article XIX of the California
Constitution.
This bill would annually set aside $200,000,000 of the funds available
for the program to fund road maintenance and rehabilitation purposes
in counties that have sought and received voter approval of taxes or
that have imposed fees, including uniform developer fees, as defined,
which taxes or fees are dedicated solely to transportation improvements.
These funds would be continuously appropriated for allocation pursuant
to guidelines to be developed by the California Transportation
Commission in consultation with local agencies. The bill would require
$80,000,000 of the funds available for the program to be annually
transferred to the State Highway Account for expenditure on the Active
Transportation Program. The bill would require $30,000,000 of the
funds available for the program in each of 4 fiscal years beginning in
2017-18 to be transferred to the Advance Mitigation Fund created by
the bill pursuant to (12) below. The bill would continuously appropriate
$2,000,000 annually of the funds available for the program to the
California State University for the purpose of conducting transportation
research and transportation -related workforce education, training, and
development, and $3,000,000 annually to the institutes for transportation
studies at the University of California. The bill would require the
99
-3— AB 1
remaining funds available for the program to be allocated 50% for
maintenance of the state highway system or to the state highway
operation and protection program and 50% to cities and counties
pursuant to a specified formula. The bill would impose various
requirements on the department and agencies receiving these funds.
The bill would authorize a city or county to spend its apportionment of
funds under the program on transportation priorities other than those
allowable pursuant to the program if the city's or county's average
Pavement Condition Index meets or exceeds 80.
The bill would also require the department to annually identify savings
achieved through efficiencies implemented at the department and to
propose, from the identified savings, an appropriation to be included
in the annual Budget Act of up to $70,000,000 from the State Highway
Account for expenditure on the Active Transportation Program.
(2) Existing law establishes in state government the Transportation
Agency, which includes various departments and state entities, including
the California Transportation Commission. Existing law vests the
California Transportation Commission with specified powers, duties,
and functions relative to transportation matters. Existing law requires
the commission to retain independent authority to perform the duties
and functions prescribed to it under any provision of law.
This bill would exclude the California Transportation Commission
from the Transportation Agency, establish it as an entity in state
government, and require it to act in an independent oversight role. The
bill would also make conforming changes.
(3) Existing law creates various state agencies, including the
Department of Transportation, the High -Speed Rail Authority, the
Department of the California Highway Patrol, the Department of Motor
Vehicles, and the State Air Resources Board, with specified powers
and duties. Existing law provides for the allocation of state transportation
funds to various transportation purposes.
This bill would create the Office of the Transportation Inspector
General in state government, as an independent office that would not
be a subdivision of any other government entity, to ensure that all of
the above -referenced state agencies and all other state agencies
expending state transportation funds are operating efficiently,
effectively, and in compliance with federal and state laws. The bill
would provide for the Governor to appoint the Transportation Inspector
General for a 6 -year term, subject to confirmation by the Senate, and
would provide that the Transportation Inspector General may not be
99
AB 1 —4—
removed from office during the term except for good cause. The bill
would specify the duties and responsibilities of the Transportation
Inspector General and would require an annual report to the Legislature
and Governor.
This bill would require the department to update the Highway Design
Manual to incorporate the "complete streets" design concept by July 1,
2017.
(4) Existing law provides for loans of revenues from various
transportation funds and accounts to the General Fund, with various
repayment dates specified.
This bill would require the Department of Finance, on or before
January 1, 2017, to compute the amount of outstanding loans made
from specified transportation funds. The bill would require the
Department of Transportation to prepare a loan repayment schedule
and would require the outstanding loans to be repaid pursuant to that
schedule, as prescribed. The bill would appropriate funds for that
purpose from the Budget Stabilization Account. The bill would require
the repaid funds to be transferred, pursuant to a specified formula, to
cities and counties and to the department for maintenance of the state
highway system and for purposes of the state highway operation and
protection program.
(5) The Highway Safety, Traffic Reduction, Air Quality, and Port
Security Bond Act of 2006 (Proposition 1B) created the Trade Corridors
Improvement Fund and provided for allocation by the California
Transportation Commission of $2 billion in bond funds for infrastructure
improvements on highway and rail corridors that have a high volume
of freight movement and for specified categories of projects eligible to
receive these funds. Existing law continues the Trade Corridors
Improvement Fund in existence in order to receive revenues from
sources other than the bond act for these purposes.
This bill would deposit the revenues attributable to a $0.20 per gallon
increase in the diesel fuel excise tax imposed by the bill into the Trade
Corridors Improvement Fund. The bill would require revenues
apportioned to the state from the national highway freight program
established by the federal Fixing America's Surface Transportation Act
to be allocated for trade corridor improvement projects approved
pursuant to these provisions.
Existing law requires the commission, in determining projects eligible
for funding, to consult various state freight and regional infrastructure
and goods movement plans and the statewide port master plan.
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This bill would revise the list of plans to be consulted by the
commission when determining eligible projects for funding. The bill
would also expand eligible projects to include, among others, rail
landside access improvements, landside freight access improvements
to airports, and certain capital and operational improvements.
(6) Existing law requires all moneys, except for fines and penalties,
collected by the State Air Resources Board from the auction or sale of
allowances as part of a market-based compliance mechanism relative
to reduction of greenhouse gas emissions to be deposited in the
Greenhouse Gas Reduction Fund. Existing law continuously appropriates
10% of the annual proceeds of the fund to the Transit and Intercity Rail
Capital Program and 5% of the annual proceeds of the fund to the Low
Carbon Transit Operations Program.
This bill would, beginning in the 2017-18 fiscal year, instead
continuously appropriate 20% of those annual proceeds to the Transit
and Intercity Rail Capital Program and 10% of those annual proceeds
to the Low Carbon Transit Operations Program, thereby making an
appropriation.
(7) Article XIX of the California Constitution restricts the expenditure
of revenues from taxes imposed by the state on fuels used in motor
vehicles upon public streets and highways to street and highway and
certain mass transit purposes. Existing law requires certain
miscellaneous 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 requires the Controller
to transfer from the fund to the General Fund an amount of those
revenues necessary to offset the current year debt service made from
the General Fund on general obligation transportation bonds issued
pursuant to Proposition 116 of 1990.
This bill would delete the transfer of these miscellaneous revenues
to the Transportation Debt Service Fund, thereby eliminating the
offsetting transfer to the General Fund for debt service on general
obligation transportation bonds issued pursuant to Proposition 116 of
1990. The bill, subject to a specified exception, would instead require
the miscellaneous revenues to be retained in the State Highway Account
and to be deposited in the Road Maintenance and Rehabilitation
Account.
(8) Article XIX of the California Constitution requires gasoline excise
tax revenues from motor vehicles traveling upon public streets and
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AB 1 —6—
highways to be deposited in the Highway Users Tax Account, for
allocation to city, county, and state transportation purposes. Existing
law generally provides for statutory allocation of gasoline excise tax
revenues attributable to other modes of transportation, including
aviation, boats, agricultural vehicles, and off-highway vehicles, to
particular accounts and funds for expenditure on purposes associated
with those other modes, except that a specified portion of these gasoline
excise tax revenues is deposited in the General Fund. Expenditure of
the gasoline excise tax revenues attributable to those other modes is not
restricted by Article XIX of the California Constitution.
This bill, commencing July 1, 2017, would instead transfer to the
Highway Users Tax Account for allocation to state and local
transportation purposes under a specified formula the portion of gasoline
excise tax revenues currently being deposited in the General Fund that
are attributable to boats, agricultural vehicles, and off-highway vehicles.
Because that account is continuously appropriated, the bill would make
an appropriation.
(9) Existing law, as of July 1, 2011, increases the sales and use tax
on diesel and decreases the excise tax, as provided. Existing law requires
the State Board of Equalization to annually modify both the gasoline
and diesel excise tax rates on a going -forward basis so that the various
changes in the taxes imposed on gasoline and diesel are revenue neutral.
This bill would eliminate the annual rate adjustment to maintain
revenue neutrality for the gasoline and diesel excise tax rates and would
reimpose the higher gasoline excise tax rate that was in effect on July
1, 2010, in addition to the increase in the rate described in (1) above.
Existing law, beyond the sales and use tax rate generally applicable,
imposes an additional sales and use tax on diesel fuel at the rate of
1.75%, subject to certain exemptions, and provides for the net revenues
collected from the additional tax to be transferred to the Public
Transportation Account. Existing law continuously appropriates these
revenues to the Controller for allocation by formula to transportation
agencies for public transit purposes under the State Transit Assistance
Program.
This bill would increase the additional sales and use tax on diesel fuel
by an additional 3.5%. By increasing the revenues deposited in the
Public Transportation Account that are continuously appropriated, the
bill would thereby make an appropriation. The bill would restrict
expenditures of revenues from this increase in the sales and use tax on
diesel fuel to transit capital purposes and certain transit services and
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-7— AB 1
would require a recipient transit agency to comply with certain
requirements, including submitting a list of proposed projects to the
Department of Transportation, as a condition of receiving a portion of
these funds. The bill would require the Controller to compute and
publish quarterly proposed allocations for each eligible recipient agency
under the State Transit Assistance Program. The bill would require an
existing required audit of transit operator finances to verify that these
new revenues have been expended in conformance with these specific
restrictions and all other generally applicable requirements.
This bill would, beginning July 1, 2019, and every 3rd year thereafter,
require the State Board of Equalization to recompute the gasoline and
diesel excise tax rates and the additional sales and use tax rate on diesel
fuel based upon the percentage change in the California Consumer Price
Index transmitted to the board by the Department of Finance, as
prescribed.
(10) Existing law requires the Department of Transportation to
prepare a state highway operation and protection program every other
year for the expenditure of transportation capital improvement funds
for projects that are necessary to preserve and protect the state highway
system, excluding projects that add new traffic lanes. The program is
required to be based on an asset management plan, as specified. Existing
law requires the department to specify, for each project in the program
the capital and support budget and projected delivery date for various
components of the project. Existing law provides for the California
Transportation Commission to review and adopt the program, and
authorizes the commission to decline and adopt the program if it
determines that the program is not sufficiently consistent with the asset
management plan.
The bill would require the commission, as part of its review of the
program, to hold at least one hearing in northern California and one
hearing in southern California regarding the proposed program. The
bill would require the department to submit any change to a programmed
project as an amendment to the commission for its approval.
This bill, on and after August 1, 2017, would also require the
commission to make an allocation of all capital and support costs for
each project in the program, and would require the department to submit
a supplemental project allocation request to the commission for each
project that experiences cost increases above the amounts in its
allocation. The bill would require the commission to establish guidelines
to provide exceptions to the requirement for a supplemental project
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AB 1 —8—
allocation requirement that the commission determines are necessary
to ensure that projects are not unnecessarily delayed.
(11) 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, notwithstanding these provisions or any other law, would
only authorize specified amounts of weight fee revenues to be transferred
from the State Highway Account to the Transportation Debt Service
Fund, the Transportation Bond Direct Payment Account, or any other
fund or account for the purpose of payment of the debt service on
transportation general obligation bonds in accordance with a prescribed
schedule, with no more than $500,000,000 to be transferred in the 2021-
22 and subsequent fiscal years. The bill would also prohibit loans of
weight fee revenues to the General Fund.
(12) The California Environmental Quality Act (CEQA) requires a
lead agency, as defined, to prepare, or cause to be prepared, and certify
the completion of, an environmental impact report on a project that it
proposes to carry out or approve that may have a significant effect on
the environment or to adopt a negative declaration if it finds that the
project will not have that effect. CEQA also requires a lead agency to
prepare a mitigated negative declaration for a project that may have a
significant effect on the environment if revisions in the project would
avoid or mitigate that effect and there is no substantial evidence that
the project, as revised, would have a significant effect on the
environment.
CEQA, until January 1, 2020, exempts a project or an activity to
repair, maintain, or make minor alterations to an existing roadway, as
defined, other than a state roadway, if the project or activity is carried
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-9— AB 1
out by a city or county with a population of less than 100,000 persons
to improve public safety and meets other specified requirements.
This bill would extend the above -referenced exemption indefinitely
and delete the limitation of the exemption to projects or activities in
cities and counties with a population of less than 100,000 persons. The
bill would also expand the exemption to include state roadways.
This bill would also establish the Advance Mitigation Program in the
Department of Transportation. The bill would authorize the department
to undertake mitigation measures in advance of construction of a planned
transportation project. The bill would require the department to establish
a steering committee to advise the department on advance mitigation
measures and related matters. The bill would create the Advance
Mitigation Fund as a continuously appropriated revolving fund, to be
funded initially from the Road Maintenance and Rehabilitation Program
pursuant to (1) above. The bill would provide for reimbursement of the
revolving fund at the time a planned transportation project benefiting
from advance mitigation is constructed.
(13) Existing federal law requires the United States Secretary of
Transportation to carry out a surface transportation project delivery
program, under which the participating states assume certain
responsibilities for environmental review and clearance of transportation
projects that would otherwise be the responsibility of the federal
government. Existing law, until January 1, 2017, when these provisions
are repealed, provides that the State of California consents to the
jurisdiction of the federal courts with regard to the compliance,
discharge, or enforcement of the responsibilities the Department of
Transportation assumed as a participant in this program.
This bill would reenact these provisions.
(14) This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State -mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. The Legislature finds and declares all of the
2 following:
3 (a) Over the next 10 years, the state faces a $59 billion shortfall
4 to adequately maintain the existing state highway system in order
5 to keep it in a basic state of good repair.
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AB 1 —10-
1 (b) Similarly, cities and counties face a $78 billion shortfall
2 over the next decade to adequately maintain the existing network
3 of local streets and roads.
4 (c) Statewide taxes and fees dedicated to the maintenance of
5 the system have not been increased in more than 20 years, with
6 those revenues losing more than 55 percent of their purchasing
7 power, while costs to maintain the system have steadily increased
8 and much of the underlying infrastructure has aged past its expected
9 useful life.
10 (d) California motorists are spending $17 billion annually in
11 extra maintenance and car repair bills, which is more than $700
12 per driver, due to the state's poorly maintained roads.
13 (e) Failing to act now to address this growing problem means
14 that more drastic measures will be required to maintain our system
15 in the future, essentially passing the burden on to future generations
16 instead of doing our job today.
17 (f) A funding program will help address a portion of the
18 maintenance backlog on the state's road system and will stop the
19 growth of the problem.
20 (g) Modestly increasing various fees can spread the cost of road
21 repairs broadly to all users and beneficiaries of the road network
22 without overburdening any one group.
23 (h) Improving the condition of the state's road system will have
24 a positive impact on the economy as it lowers the transportation
25 costs of doing business, reduces congestion impacts for employees,
26 and protects property values in the state.
27 (i) The federal government estimates that increased spending
28 on infrastructure creates more than 13,000 jobs per $1 billion spent.
29 (j) Well-maintained roads benefit all users, not just drivers, as
30 roads are used for all modes of transport, whether motor vehicles,
31 transit, bicycles, or pedestrians.
32 (k) Well-maintained roads additionally provide significant health
33 benefits and prevent injuries and death due to crashes caused by
34 poorly maintained infrastructure.
35 (1) A comprehensive, reasonable transportation funding package
36 will do all of the following:
37 (1) Ensure these transportation needs are addressed.
38 (2) Fairly distribute the economic impact of increased funding.
39 (3) Restore the gas tax rate previously reduced by the State
40 Board of Equalization pursuant to the gas tax swap.
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-11— AB 1
1 (4) Direct increased revenue to the state's highest transportation
2 needs.
3 SEC. 2. Section 13975 of the Government Code is amended
4 to read:
5 13975. There is in the state government the Transportation
6 Agency. The agency consists of the Department of the California
7 Highway Patrol, the California Transportation Commission, the
8 Department of Motor Vehicles, the Department of Transportation,
9 the High -Speed Rail Authority, and the Board of Pilot
10 Commissioners for the Bays of San Francisco, San Pablo, and
11 Suisun.
12 SEC. 3. Section 14033 is added to the Government Code, to
13 read:
14 14033. On or before July 1, 2017, the department shall update
15 the Highway Design Manual to incorporate the "complete streets"
16 design concept.
17 SEC. 4. Part 5.1 (commencing with Section 14460) is added
18 to Division 3 of Title 2 of the Government Code, to read:
19
20 PART 5.1. OFFICE OF THE TRANSPORTATION INSPECTOR
21 GENERAL
22
23 14460. (a) There is hereby created in state government the
24 independent Office of the Transportation Inspector General, which
25 shall not be a subdivision of any other governmental entity, to
26 ensure that the Department of Transportation, the High -Speed Rail
27 Authority, the Department of the California Highway Patrol, the
28 Department of Motor Vehicles, the State Air Resources Board,
29 and all other state agencies expending state transportation funds
30 are operating efficiently, effectively, and in compliance with
31 applicable federal and state laws.
32 (b) The Governor shall appoint, subject to confirmation by the
33 Senate, the Transportation Inspector General to a six-year term.
34 The Transportation Inspector General may not be removed from
35 office during that term, except for good cause. A finding of good
36 cause may include substantial neglect of duty, gross misconduct,
37 or conviction of a crime. The reasons for removal of the
38 Transportation Inspector General shall be stated in writing and
39 shall include the basis for removal. The writing shall be sent to
40 the Secretary of the Senate and the Chief Clerk of the Assembly
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AB 1 —12-
1 at the time of the removal and shall be deemed to be a public
2 document.
3 14461. The Transportation Inspector General shall review
4 policies, practices, and procedures and conduct audits and
5 investigations of activities involving state transportation funds in
6 consultation with all affected state agencies. Specifically, the
7 Transportation Inspector General's duties and responsibilities shall
8 include, but not be limited to, all of the following:
9 (a) To examine the operating practices of all state agencies
10 expending state transportation funds to identify fraud and waste,
11 opportunities for efficiencies, and opportunities to improve the
12 data used to determine appropriate project resource allocations.
13 (b) To identify best practices in the delivery of transportation
14 projects and develop policies or recommend proposed legislation
15 enabling state agencies to adopt these practices when practicable.
16 (c) To provide objective analysis of and, when possible, offer
17 solutions to concerns raised by the public or generated within
18 agencies involving the state's transportation infrastructure and
19 project delivery methods.
20 (d) To conduct, supervise, and coordinate audits and
21 investigations relating to the programs and operations of all state
22 transportation agencies with state -funded transportation projects.
23 (e) To recommend policies promoting economy and efficiency
24 in the administration of programs and operations of all state
25 agencies with state -funded transportation projects.
26 (f) To ensure that the Secretary of Transportation and the
27 Legislature are fully and currently informed concerning fraud or
28 other serious abuses or deficiencies relating to the expenditure of
29 funds or administration of programs and operations.
30 14462. The Transportation Inspector General shall report at
31 least annually to the Governor and Legislature with a summary of
32 his or her findings, investigations, and audits. The summary shall
33 be posted on the Transportation Inspector General's Internet Web
34 site and shall otherwise be made available to the public upon its
35 release to the Governor and Legislature. The summary shall
36 include, but need not be limited to, significant problems discovered
37 by the Transportation Inspector General and whether
38 recommendations of the Transportation Inspector General relative
39 to investigations and audits have been implemented by the affected
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-13— AB 1
1 agencies. The report shall be submitted to the Legislature in
2 compliance with Section 9795.
3 SEC. 5. Section 14500 of the Government Code is amended
4 to read:
5 14500. There is in the Transportation Agcncy state government
6 a California Transportation Commission. The commission shall
7 act in an independent oversight role.
8 SEC. 6. Section 14526.5 of the Government Code is amended
9 to read:
10 14526.5. (a) Based on the asset management plan prepared
11 and approved pursuant to Section 14526.4, the department shall
12 prepare a state highway operation and protection program for the
13 expenditure of transportation funds for major capital improvements
14 that are necessary to preserve and protect the state highway system.
15 Projects included in the program shall be limited to capital
16 improvements relative to the maintenance, safety, operation, and
17 rehabilitation rehabilitation, and operation of state highways and
18 bridges that do not add a new traffic lane to the system.
19 (b) The program shall include projects that are expected to be
20 advertised prior to July 1 of the year following submission of the
21 program, but which have not yet been funded. The program shall
22 include those projects for which construction is to begin within
23 four fiscal years, starting July 1 of the year following the year the
24 program is submitted.
25 (c) (1) The department, at a minimum, shall specify, for each
26 project in the state highway operation and protection program, the
27 capital and support budgct, as well as a projcctcd delivery datc,
28 budget for each of the following project components:
29 (1) Completion ofprojcct
30 (A) Project approval and environmental documents.
31 (2) Preparation of plans,
32 (B) Plans, specifications, and estimates.
33 (3) Acquisition of rights-of-way, including, but not limited to,
34 support activities.
35 (C) Rights-of-way.
36 (D) Construction.
37 (2) The department shall specify, for each project in the state
38 highway operation and protection program, a project delivery
39 date for each of the following components:
40 (A) Environmental document completion.
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AB 1 —14-
1 (B) Plans, specifications, and estimate completion.
2 (C) Right-of-way certification.
3 (4)
4 (D) Start of construction.
5 (d) The program department shall be submittcd submit its
6 proposed program to the commission not later than January 31 of
7 each even -numbered year. Prior to submitting the plan, its proposed
8 program, the department shall make a draft of its proposed program
9 available to transportation planning agencies for review and
10 comment and shall include the comments in its submittal to the
11 commission. The department shall provide the commission with
12 detailed information for all programmed projects, including, but
13 not limited to, cost, scope, schedule, and performance metrics as
14 determined by the commission.
15 (e) The commission may shall review the proposed program
16 relative to its overall adequacy, consistency with the asset
17 management plan prepared and approved pursuant to Section
18 14526.4 and funding priorities established in Section 167 of the
19 Streets and Highways Code, the level of annual funding needed
20 to implement the program, and the impact of those expenditures
21 on the state transportation improvement program. The commission
22 shall adopt the program and submit it to the Legislature and the
23 Governor not later than April 1 of each even -numbered year. The
24 commission may decline to adopt the program if the commission
25 determines that the program is not sufficiently consistent with the
26 asset management plan prepared and approved pursuant to Section
27 14526.4.
28 0 As part of the commission's review of the program required
29 pursuant to subdivision (a), the commission shall hold at least one
30 hearing in northern California and one hearing in southern
31 California regarding the proposed program.
32 f3
33 (g) Expenditures for these projects shall not be subject to
34 Sections 188 and 188.8 of the Streets and Highways Code.
35 (h) Following adoption of the state highway operation and
36 protection program by the commission, any change to a
37 programmed project shall be submitted as an amendment by the
38 department to the commission for its approval before the change
39 may be implemented.
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-15— AB 1
1 SEC. 7. Section 14526.7 is added to the Government Code, to
2 read:
3 14526.7. (a) On and after August 1, 2017, an allocation by the
4 commission of all capital and support costs for each project in the
5 state highway operation and protection program shall be required.
6 (b) For a project that experiences increases in capital or support
7 costs above the amounts in the commission's allocation pursuant
8 to subdivision (a), a supplemental project allocation request shall
9 be submitted by the department to the commission for approval.
10 (c) The commission shall establish guidelines to provide
11 exceptions to the requirement of subdivision (b) that the
12 commission determines are necessary to ensure that projects are
13 not unnecessarily delayed.
14 SEC. 8. Section 14534.1 of the Government Code is repealed.
15 14534.1. Notwithstanding Scction 12850.6 or subdivision (b)
16 of Scction 12800, as addcd to this codc by thc Governor's
17 Rcorganization Plan No. 2 of 2012 during thc 2011 12 Regular
18 Scssion, thc commission shall rctain indcpcndcnt authority to
19 perform thosc dutics and functions prcscribcd to it undcr any
20 provision of law.
21 SEC. 9. Section 16321 is added to the Government Code, to
22 read:
23 16321. (a) Notwithstanding any other law, on or before January
24 1, 2017, the Department of Finance shall compute the amount of
25 outstanding loans made from the State Highway Account, the
26 Motor Vehicle Fuel Account, the Highway Users Tax Account,
27 and the Motor Vehicle Account to the General Fund. The
28 department shall prepare a loan repayment schedule, pursuant to
29 which the outstanding loans shall be repaid, as follows:
30 (1) On or before June 30, 2017, 50 percent of the outstanding
31 loan amounts.
32 (2) On or before June 30, 2018, the remainder of the outstanding
33 loan amounts.
34 (b) Notwithstanding any other law, as the loans are repaid
35 pursuant to this section, the repaid funds shall be transferred in the
36 following manner:
37 (1) Fifty percent to cities and counties pursuant to clauses (i)
38 and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of
39 Section 2103 of the Streets and Highways Code.
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AB 1 —16-
1 (2) Fifty percent to the department for maintenance of the state
2 highway system and for purposes of the state highway operation
3 and protection program.
4 (c) Funds for loan repayments pursuant to this section are hereby
5 appropriated from the Budget Stabilization Account pursuant to
6 subclause (II) of clause (ii) of subparagraph (B) of paragraph (1)
7 of subdivision (c) of Section 20 of Article XVI of the California
8 Constitution.
9 SEC. 10. Section 16965 of the Government Code is amended
10 to read:
11 16965. (a) (1) The Transportation Debt Service Fund is hereby
12 created in the State Treasury. Moneys in the fund shall be dedicated
13 to all of the following purposes:
14 (A) Payment of debt service with respect to designated bonds,
15 as defined in subdivision (c) of Section 16773, and as further
16 provided in paragraph (3) and subdivision (b).
17 (B) To reimburse the General Fund for debt service with respect
18 to bonds.
19 (C) To redeem or retire bonds, pursuant to Section 16774,
20 maturing in a subsequent fiscal year.
21 (2) The bonds eligible under subparagraph (B) or (C) of
22 paragraph (1) include bonds issued pursuant to the Clean Air and
23 Transportation Improvement Act of 1990 (Part 11.5 (commcncing
24 with Scction 99600) of Division 10 of the Public Utilities Codc),
25 the Passenger Rail and Clean Air Bond Act of 1990 (Chapter 17
26 (commencing with Section 2701) of Division 3 of the Streets and
27 Highways Code), the Seismic Retrofit Bond Act of 1996 (Chapter
28 12.48 (commencing with Section 8879) of Division 1 of Title 2),
29 and the Safe, Reliable High -Speed Passenger Train Bond Act for
30 the 21st Century (Chapter 20 (commencing with Section 2704) of
31 Division 3 of the Streets and Highways Code), and nondesignated
32 bonds under Proposition 1B, as defined in subdivision (c) of
33 Section 16773.
34 (3) (A) The Transportation Bond Direct Payment Account is
35 hereby created in the State Treasury, as a subaccount within the
36 Transportation Debt Service Fund, for the purpose of directly
37 paying the debt service, as defined in paragraph (4), of designated
38 bonds of Proposition 1B, as defined in subdivision (c) of Section
39 16773. Notwithstanding Section 13340, moneys in the
40 Transportation Bond Direct Payment Account are continuously
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-17— AB 1
1 appropriated for payment of debt service with respect to designated
2 bonds as provided in subdivision (c) of Section 16773. So long as
3 any designated bonds remain outstanding, the moneys in the
4 Transportation Bond Direct Payment Account may not be used
5 for any other purpose, and may not be borrowed by or available
6 for transfer to the General Fund pursuant to Section 16310 or any
7 similar law, or to the General Cash Revolving Fund pursuant to
8 Section 16381 or any similar law.
9 (B) Once the Treasurer makes a certification that payment of
10 debt service with respect to all designated bonds has been paid or
11 provided for, any remaining moneys in the Transportation Bond
12 Direct Payment Account shall be transferred back to the
13 Transportation Debt Service Fund.
14 (C) The moneys in the Transportation Bond Direct Payment
15 Account shall be invested in the Surplus Money Investment Fund,
16 and all investment earnings shall accrue to the account.
17 (D) The Controller may establish subaccounts within the
18 Transportation Bond Direct Payment Account as may be required
19 by the resolution, indenture, or other documents governing any
20 designated bonds.
21 (4) For purposes of this subdivision and subdivision (b), and
22 subdivision (c) of Section 16773, "debt service" means payment
23 of all of the following costs and expenses with respect to any
24 designated bond:
25 (A) The principal of and interest on the bonds.
26 (B) Amounts payable as the result of tender on any bonds, as
27 described in clause (iv) of subparagraph (B) of paragraph (1) of
28 subdivision (d) of Section 16731.
29 (C) Amounts payable under any contractual obligation of the
30 state to repay advances and pay interest thereon under a credit
31 enhancement or liquidity agreement as described in clause (iv) of
32 subparagraph (B) of paragraph (1) of subdivision (d) of Section
33 16731.
34 (D) Any amount owed by the state to a counterparty after any
35 offset for payments owed to the state on any hedging contract as
36 described in subparagraph (A) of paragraph (2) of subdivision (d)
37 of Section 16731.
38 (b) From the moneys transferred to the fund pursuant to
39 paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
40 Vehicle Code, there shall first be deposited into the Transportation
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AB 1 —18-
1 Bond Direct Payment Account in each month sufficient funds to
2 equal the amount designated in a certificate submitted by the
3 Treasurer to the Controller and the Director of Finance at the start
4 of each fiscal year, and as may be modified by the Treasurer
5 thereafter upon issuance of any new issue of designated bonds or
6 upon change in circumstances that requires such a modification.
7 This certificate shall be calculated by the Treasurer to identify, for
8 each month, the amount necessary to fund all of the debt service
9 with respect to all designated bonds. This calculation shall be done
10 in a manner provided in the resolution, indenture, or other
11 documents governing the designated bonds. In the event that
12 transfers to the Transportation Bond Direct Payment Account in
13 any month are less than the amounts required in the Treasurer's
14 certificate, the shortfall shall carry over to be part of the required
15 payment in the succeeding month or months.
16 (c) The state hereby covenants with the holders from time to
17 time of any designated bonds that it will not alter, amend, or restrict
18 the provisions of subdivision (c) of Section 16773 of the
19 Government Code, or Sections 9400, 9400.1, 9400.4, and 42205
20 of the Vehicle Code, which provide directly or indirectly for the
21 transfer of weight fees to the Transportation Debt Service Fund
22 or the Transportation Bond Direct Payment Account, or
23 subdivisions (a) and (b) of this section, or reduce the rate of
24 imposition of vehicle weight fees under Sections 9400 and 9400.1
25 of the Vehicle Code as they existed on the date of the first issuance
26 of any designated bonds, if that alteration, amendment, restriction,
27 or reduction would result in projected weight fees for the next
28 fiscal year determined by the Director of Finance being less than
29 two times the maximum annual debt service with respect to all
30 outstanding designated bonds, as such calculation is determined
31 pursuant to the resolution, indenture, or other documents governing
32 the designated bonds. The state may include this covenant in the
33 resolution, indenture, or other documents governing the designated
34 bonds.
35 (d) Once the required monthly deposit, including makeup of
36 any shortfalls from any prior month, has been made pursuant to
37 subdivision (b), from moneys transferred to the fund pursuant to
38 paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
39 Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the
40 Controller shall transfer as an expenditure reduction to the General
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1 Fund any amount necessary to offset the cost of current year debt
2 service payments made from the General Fund with respect to any
3 bonds issued pursuant to Proposition 192 (1996) and three-quarters
4 of the amount of current year debt service payments made from
5 the General Fund with respect to any nondesignated bonds, as
6 defined in subdivision (c) of Section 16773, issued pursuant to
7 Proposition 1B (2006). In the alternative, these funds may also be
8 used to redeem or retire the applicable bonds, pursuant to Section
9 16774, maturing in a subsequent fiscal year as directed by the
10 Director of Finance
11 (c) From moncys transferred to thc fund pursuant to Scction
12 183.1 of thc Strccts and IIighways Codc, thc Controller shall
13 transfer as an cxpcnditurc rcduction to thc Gcncral Fund any
14 amount necessary to offset thc cost of current ycar dcbt service
15 payments madc from thc Gcncral Fund with rcspcct to any bonds
16 issucd pursuant to Proposition 116 (1990). In thc alternative, these
17 funds may also be used to rcdccm or rctirc thc applicable bonds,
18 pursuant to Scction 16774, maturing in a subsequent fiscal ycar
19 as dircctcd by thc Director of Financc.
20 (#3
21 (e) Once the required monthly deposit, including makeup of
22 any shortfalls from any prior month, has been made pursuant to
23 subdivision (b), from moneys transferred to the fund pursuant to
24 paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
25 Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the
26 Controller shall transfer as an expenditure reduction to the General
27 Fund any amount necessary to offset the eligible cost of current
28 year debt service payments made from the General Fund with
29 respect to any bonds issued pursuant to Proposition 108 (1990)
30 and Proposition 1A (2008), and one-quarter of the amount of
31 current year debt service payments made from the General Fund
32 with respect to any nondesignated bonds, as defined in subdivision
33 (c) of Section 16773, issued pursuant to Proposition 1B (2006).
34 The Department of Finance shall notify the Controller by July 30
35 of every year of the percentage of debt service that is expected to
36 be paid in that fiscal year with respect to bond -funded projects that
37 qualify as eligible guideway projects consistent with the
38 requirements applicable to the expenditure of revenues under
39 Article XIX of the California Constitution, and the Controller shall
40 make payments only for those eligible projects. In the alternative,
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AB 1 —20-
1 these funds may also be used to redeem or retire the applicable
2 bonds, pursuant to Section 16774, maturing in a subsequent fiscal
3 year as directed by the Director of Finance
4 (g)
5 (0 On or before the second business day following the date on
6 which transfers are made to the Transportation Debt Service Fund,
7 and after the required monthly deposits for that month, including
8 makeup of any shortfalls from any prior month, have been made
9 to the Transportation Bond Direct Payment Account, the Controller
10 shall transfer the funds designated for reimbursement of bond debt
11 service with respect to nondesignated bonds, as defined in
12 subdivision (c) of Section 16773, and other bonds identified in
13 subdivisions (d), (c),(d) and (f)(e) in that month from the fund to
14 the General Fund pursuant to this section.
15 SEC. 11. Section 39719 of the Health and Safety Code is
16 amended to read:
17 39719. (a) The Legislature shall appropriate the annual
18 proceeds of the fund for the purpose of reducing greenhouse gas
19 emissions in this state in accordance with the requirements of
20 Section 39712.
21 (b) To carry out a portion of the requirements of subdivision
22 (a), annual proceeds are continuously appropriated for the
23 following:
24 (1) Beginning in the 2015-16 2017-18 fiscal year, and
25 notwithstanding Section 13340 of the Government Code, 35 50
26 percent of annual proceeds are continuously appropriated, without
27 regard to fiscal years, for transit, affordable housing, and
28 sustainable communities programs as following: follows:
29 (A) Tcn Twenty percent of the annual proceeds of the fund is
30 hereby continuously appropriated to the Transportation Agency
31 for the Transit and Intercity Rail Capital Program created by Part
32 2 (commencing with Section 75220) of Division 44 of the Public
33 Resources Code.
34 (B) Five Ten percent of the annual proceeds of the fund is hereby
35 continuously appropriated to the Low Carbon Transit Operations
36 Program created by Part 3 (commencing with Section 75230) of
37 Division 44 of the Public Resources Code. Funds Moneys shall be
38 allocated by the Controller, according to requirements of the
39 program, and pursuant to the distribution formula in subdivision
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1 (b) or (c) of Section 99312 of, and Sections 99313 and 99314 of,
2 the Public Utilities Code.
3 (C) Twenty percent of the annual proceeds of the fund is hereby
4 continuously appropriated to the Strategic Growth Council for the
5 Affordable Housing and Sustainable Communities Program created
6 by Part 1 (commencing with Section 75200) of Division 44 of the
7 Public Resources Code. Of the amount appropriated in this
8 subparagraph, no less than 10 percent of the annual procccds,
9 proceeds shall be expended for affordable housing, consistent with
10 the provisions of that program.
11 (2) Beginning in the 2015-16 fiscal year, notwithstanding
12 Section 13340 of the Government Code, 25 percent of the annual
13 proceeds of the fund is hereby continuously appropriated to the
14 High -Speed Rail Authority for the following components of the
15 initial operating segment and Phase I Blended System as described
16 in the 2012 business plan adopted pursuant to Section 185033 of
17 the Public Utilities Code:
18 (A) Acquisition and construction costs of the project.
19 (B) Environmental review and design costs of the project.
20 (C) Other capital costs of the project.
21 (D) Repayment of any loans made to the authority to fund the
22 project.
23 (c) In determining the amount of annual proceeds of the fund
24 for purposes of the calculation in subdivision (b), the funds subject
25 to Section 39719.1 shall not be included.
26 SEC. 12. Section 21080.37 of the Public Resources Code is
27 amended to read:
28 21080.37. (a) This division does not apply to a project or an
29 activity to repair, maintain, or make minor alterations to an existing
30 roadway if all of the following conditions are met:
31 (1) The projcct is carried out by a city or county with a
32 population of loss than 100,000 persons to improve public safety.
33 (-2-)
34 (1) (A) The project does not cross a waterway.
35 (B) For purposes of this paragraph, "waterway" means a bay,
36 estuary, lake, pond, river, slough, or a perennial, intermittent, or
37 ephemeral stream, lake, or estuarine -marine shoreline.
38 (3)
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1 (2) The project involves negligible or no expansion of an
2 existing use beyond that existing at the time of the lead agency's
3 determination.
4 (4) The roadway is not a statc roadway.
5 (5)
6 (3) (A) The site of the project does not contain wetlands or
7 riparian areas and does not have significant value as a wildlife
8 habitat, and the project does not harm any species protected by the
9 federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et
10 seq.), the Native Plant Protection Act (Chapter 10 (commencing
11 with Section 1900) of Division 2 of the Fish and Game Code), or
12 the California Endangered Species Act (Chapter 1.5 (commencing
13 with Section 2050) of Division 3 of the Fish and Game Code), and
14 the project does not cause the destruction or removal of any species
15 protected by a local ordinance.
16 (B) For the purposes of this paragraph:
17 (i) "Riparian areas" mean those areas transitional between
18 terrestrial and aquatic ecosystems and that are distinguished by
19 gradients in biophysical conditions, ecological processes, and biota.
20 A riparian area is an area through which surface and subsurface
21 hydrology connect waterbodies with their adjacent uplands. A
22 riparian area includes those portions of terrestrial ecosystems that
23 significantly influence exchanges of energy and matter with aquatic
24 ecosystems. A riparian area is adjacent to perennial, intermittent,
25 and ephemeral streams, lakes, and estuarine -marine shorelines.
26 (ii) "Significant value as a wildlife habitat" includes wildlife
27 habitat of national, statewide, regional, or local importance; habitat
28 for species protected by the federal Endangered Species Act of
29 1973 (16 U.S.C. Sec. 1531, 1531 et seq.), the California
30 Endangered Species Act (Chapter 1.5 (commencing with Section
31 2050) of Division 3 of the Fish and Game Code), or the Native
32 Plant Protection Act (Chapter 10 (commencing with Section 1900)
33 of Division 2 of the Fish and Game Code); habitat identified as
34 candidate, fully protected, sensitive, or species of special status
35 by local, state, or federal agencies; or habitat essential to the
36 movement of resident or migratory wildlife.
37 (iii) "Wetlands" has the same meaning as in the United States
38 Fish and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993).
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1 (iv) "Wildlife habitat" means the ecological communities upon
2 which wild animals, birds, plants, fish, amphibians, and
3 invertebrates depend for their conservation and protection.
4 (6)
5 (4) The project does not impact cultural resources.
6 (7)
7 (5) The roadway does not affect scenic resources, as provided
8 pursuant to subdivision (c) of Section 21084.
9 (b) Prior to determining that a project is exempt pursuant to this
10 section, the lead agency shall do both of the following:
11 (1) Include measures in the project to mitigate potential
12 vehicular traffic and safety impacts and bicycle and pedestrian
13 safety impacts.
14 (2) Hold a noticed public hearing on the project to hear and
15 respond to public comments. The hearing on the project may be
16 conducted with another noticed lead agency public hearing.
17 Publication of the notice shall be no fewer times than required by
18 Section 6061 of the Government Code, by the public agency in a
19 newspaper of general circulation in the area.
20 (c) For purposes of this section, "roadway" means a roadway
21 as defined pursuant to Section 530 of the Vehicle Code and the
22 previously graded and maintained shoulder that is within a roadway
23 right-of-way of no more than five feet from the edge of the
24 roadway.
25 (d) Whcncvcr
26 (d) (1) If a state agency determines that a project is not subject
27 to this division pursuant to this section and it approves or
28 determines to carry out that project, it shall file a notice with the
29 Office of Planning and Research in the manner specified in
30 subdivisions (b) and (c) of Section 21108.
31 (2) If a local agency determines that a project is not subject to
32 this division pursuant to this scction, section and it approves or
33 determines to carry out that project, the local agcncy it shall file
34 a notice with the Office of Planning and Research, and with the
35 county clerk in the county in which the project will be located in
36 the manner specified in subdivisions (b) and (c) of Section 21152.
37 (c) This scction shall rcmain in cffcct only until January 1, 2020,
38 and as of that datc is rcpcalcd, unlcss a latcr cnactcd statutc, that
39 is cnactcd bcforc January 1, 2020, dcictcs or cxtcnds that datc.
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AB 1 — 24 —
1 SEC. 13. Division 13.6 (commencing with Section 21200) is
2 added to the Public Resources Code, to read:
3
4 DIVISION 13.6. ADVANCE MITIGATION PROGRAM ACT
5
6 CHAPTER 1. GENERAL
7
8 21200. This division shall be known, and may be cited, as the
9 Advance Mitigation Program Act.
10 21201. (a) The purpose of this division is to improve the
11 success and effectiveness of actions implemented to mitigate the
12 natural resource impacts of future transportation projects by
13 establishing the means to implement those actions well before the
14 transportation projects are constructed. The advance identification
15 and implementation of mitigation actions also will streamline the
16 delivery of transportation projects by anticipating mitigation
17 requirements for planned transportation projects and avoiding or
18 reducing delays associated with environmental permitting. By
19 identifying regional or statewide conservation priorities and by
20 anticipating the impacts of planned transportation projects on a
21 regional or statewide basis, mitigation actions can be designed to
22 protect and restore California's most valuable natural resources
23 and also facilitate environmental compliance for planned
24 transportation projects on a regional scale.
25 (b) This division is not intended to create a new environmental
26 permitting or regulatory program or to modify existing
27 environmental laws or regulations, nor is it expected that all
28 mitigation requirements will be addressed for planned
29 transportation projects. Instead, it is intended to provide a
30 methodology with which to anticipate and fulfill the requirements
31 of existing state and federal environmental laws that protect fish,
32 wildlife, plant species, and other natural resources more efficiently
33 and effectively.
34 21202. The Legislature finds and declares all of the following:
35 (a) The minimization and mitigation of environmental impacts
36 is ordinarily handled on a project -by -project basis, usually near
37 the end of a project's timeline and often without guidance regarding
38 regional or statewide conservation priorities.
39 (b) The cost of critical transportation projects often escalates
40 because of permitting delays that occur when appropriate
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1 conservation and mitigation measures cannot easily be identified
2 and because the cost of these measures often increases between
3 the time a project is planned and funded and the time mitigation
4 is implemented.
5 (c) Addressing conservation and mitigation needs early in a
6 project's timeline, during the project design and development
7 phase, can reduce costs, allow natural resources conservation to
8 be integrated with project siting and design, and result in the
9 establishment of more valuable and productive habitat mitigation.
10 (d) When the Department of Transportation is able to anticipate
11 the mitigation needs for planned transportation projects, it can
12 meet those needs in a more timely and cost-effective way by using
13 advance mitigation planning.
14 (e) Working with state and federal resource protection agencies,
15 the department can identify, conserve, and, where appropriate,
16 restore lands for mitigation of numerous projects early in the
17 projects' timelines, thereby allowing public funds to stretch further
18 by acquiring habitat at a lower cost and avoiding environmental
19 permitting delays.
20 (f) Advance mitigation can provide an effective means of
21 facilitating delivery of transportation projects while ensuring more
22 effective natural resource conservation.
23 (g) Advance mitigation is needed to direct mitigation funding
24 for transportation projects to agreed-upon conservation priorities
25 and to the creation of habitat reserves and recreation areas that
26 enhance the sustainability of human and natural systems by
27 protecting or restoring connectivity of natural communities and
28 the delivery of ecosystem services.
29 (h) Advance mitigation can facilitate the implementation of
30 climate change adaptation strategies both for ecosystems and
31 California's economy.
32 (i) Advance mitigation can enable the state to protect, restore,
33 and recover its natural resources as it strengthens and improves
34 its transportation systems.
35 21203. The Legislature intends to do all of the following by
36 enacting this division:
37 (a) Facilitate delivery of transportation projects while ensuring
38 more effective natural resource conservation.
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AB 1 —26-
1 (b) Develop effective strategies to improve the state's ability to
2 meet mounting demands for transportation improvements and to
3 maximize conservation and other public benefits.
4 (c) Achieve conservation objectives of statewide and regional
5 importance by coordinating local, state, and federally funded
6 natural resource conservation efforts with mitigation actions
7 required for impacts from transportation projects.
8 (d) Create administrative, governance, and financial incentives
9 and mechanisms necessary to ensure that measures required to
10 minimize or mitigate impacts from transportation projects will
11 serve to achieve regional or statewide natural resource conservation
12 objectives.
13
14 CHAPTER 2. DEFINITIONS
15
16 21204. For purposes of this division, the following terms have
17 the following meanings:
18 (a) "Advance mitigation" means mitigation implemented before,
19 and in anticipation of, environmental effects of planned
20 transportation projects.
21 (b) "Commission" means the California Transportation
22 Commission.
23 (c) "Department" means the Department of Transportation.
24 (d) "Transportation project" means a transportation capital
25 improvement project.
26 (e) "Planned transportation project" means a transportation
27 project that a transportation agency has concluded is reasonably
28 likely to be constructed within 20 years and that has been identified
29 to the agency for purposes of this division. A planned transportation
30 project may include, but is not limited to, a transportation project
31 that has been proposed for approval or that has been approved.
32 (f) "Program" means the Advance Mitigation Program
33 implemented pursuant to this division.
34 (g) "Regulatory agency" means a state or federal natural
35 resource protection agency with regulatory authority over planned
36 transportation projects. A regulatory agency includes, but is not
37 limited to, the Natural Resources Agency, the Department of Fish
38 and Wildlife, California regional water quality control boards, the
39 United States Fish and Wildlife Service, the National Marine
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1 Fisheries Service, the United States Environmental Protection
2 Agency, and the United States Army Corps of Engineers.
3
4 CHAPTER 3. ADVANCE MITIGATION PROGRAM
5
6 21205. (a) The Advance Mitigation Program is hereby created
7 in the department to accelerate project delivery and improve
8 environmental outcomes of environmental mitigation for planned
9 transportation projects.
10 (b) The program may utilize mitigation instruments, including,
11 but not limited to, mitigation banks, in lieu of fee programs, and
12 conservation easements as defined in Section 815.1 of the Civil
13 Code.
14 (c) The depal tlnent shall track all implemented advance
15 mitigation projects to use as credits for environmental mitigation
16 for state-sponsored transportation projects.
17 (d) The department may use advance mitigation credits to fulfill
18 mitigation requirements of any environmental law for a
19 transportation project eligible for the State Transportation
20 Improvement Program or the State Highway Operation and
21 Protection Program.
22 21206. No later than August 1, 2017, the department shall
23 establish an interagency transportation advance mitigation steering
24 committee consisting of the department and appropriate state and
25 federal regulatory agencies to support the program so that advance
26 mitigation can be used as required mitigation for planned
27 transportation projects and can provide improved environmental
28 outcomes. The committee shall advise the department of
29 opportunities to carry out advance mitigation projects, provide the
30 best available science, and actively participate in mitigation
31 instrument reviews and approvals. The committee shall seek to
32 develop streamlining opportunities, including those related to
33 landscape scale mitigation planning and alignment of federal and
34 state regulations and procedures related to mitigation requirements
35 and implementation. The committee shall also provide input on
36 crediting, using, and tracking of advance mitigation investments.
37 21207. The Advance Mitigation Fund is hereby created in the
38 State Transportation Fund as a revolving fund. Notwithstanding
39 Section 13340 of the Government Code, the fund shall be
40 continuously appropriated without regard to fiscal years. The
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AB 1 — 28 —
1 moneys in the fund shall be programmed by the commission for
2 the planning and implementation of advance mitigation projects
3 consistent with the purposes of this chapter. After the transfer of
4 moneys to the fund for four fiscal years pursuant to subdivision
5 (c) of Section 2032 of the Streets and Highways Code, commencing
6 in the 2017-18 fiscal year, the program is intended to be
7 self-sustaining. Advance expenditures from the fund shall later be
8 reimbursed from project funding available at the time a planned
9 transportation project is constructed. A maximum of 5 percent of
10 available funds may be used for administrative purposes.
11 21208. The program is intended to improve the efficiency and
12 efficacy of mitigation only and is not intended to supplant the
13 requirements of the California Environmental Quality Act (Division
14 13 (commencing with Section 21000) or any other environmental
15 law. The identification of planned transportation projects and of
16 mitigation projects or measures for planned transportation projects
17 under this division does not imply or require approval of those
18 projects for purposes of the California Environmental Quality Act
19 (Division 13 (commencing with Section 21000) or any other
20 environmental law.
21 SEC. 14. Section 99312.1 of the Public Utilities Code is
22 amended to read:
23 99312.1. (a) Revenues transferred to the Public Transportation
24 Account pursuant to Sections 6051.8 and 6201.8 of the Revenue
25 and Taxation Code are hereby continuously appropriated to the
26 Controller for allocation as follows:
27 {a)
28 (1) Fifty percent for allocation to transportation planning
29 agencies, county transportation commissions, and the San Diego
30 Metropolitan Transit Development Board pursuant to Section
31 99314.
32 (b)
33 (2) Fifty percent for allocation to transportation agencies, county
34 transportation commissions, and the San Diego Metropolitan
35 Transit Development Board for purposes of Section 99313.
36 (b) For purposes of this chapter, the revenues allocated pursuant
37 to this section shall be subject to the same requirements as revenues
38 allocated pursuant to subdivisions (b) and (c), as applicable, of
39 Section 99312.
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1 (c) The revenues transferred to the Public Transportation
2 Account that are attributable to the increase in the sales and use
3 tax on diesel fuel pursuant to subdivision (b) of Section 6051.8 of
4 the Revenue and Taxation Code, as adjusted pursuant to
5 subdivision (c) of that section, and subdivision (b) of Section 6201.8
6 of the Revenue and Taxation Code, as adjusted pursuant to
7 subdivision (c) of that section, upon allocation pursuant to Sections
8 99313 and 99314, shall only be expended on the following:
9 (1) Transit capital projects or services to maintain or repair a
10 transit operator's existing transit vehicle fleet or existing transit
11 facilities, including rehabilitation or modernization of existing
12 vehicles or facilities.
13 (2) The design, acquisition, and construction of new vehicles
14 or facilities that improve existing transit services.
15 (3) Transit services that complement local efforts for repair and
16 improvement of local transportation infrastructure.
17 (d) (1) Prior to receiving an apportionment of funds pursuant
18 to subdivision (c) from the Controller in a fiscal year, a recipient
19 transit agency shall submit to the Department of Transportation
20 a list of projects proposed to be funded with these funds. The list
21 of projects proposed to be funded with these funds shall include
22 a description and location of each proposed project, a proposed
23 schedule for the project's completion, and the estimated useful life
24 of the improvement. The project list shall not limit the flexibility
25 of a recipient transit agency to fund projects in accordance with
26 local needs and priorities so long as the projects are consistent
27 with subdivision (c).
28 (2) The department shall report to the Controller the recipient
29 transit agencies that have submitted a list of projects as described
30 in this subdivision and that are therefore eligible to receive an
31 apportionment of funds for the applicable fiscal year The
32 Controller upon receipt of the report, shall apportion funds
33 pursuant to Sections 99313 and 99314.
34 (e) For each fiscal year each recipient transit agency receiving
35 an apportionment of funds pursuant to subdivision (c) shall, upon
36 expending those funds, submit documentation to the department
37 that includes a description and location of each completed project,
38 the amount of funds expended on the project, the completion date,
39 and the estimated useful life of the improvement.
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AB 1 — 30 —
1 (f The audit of transit operator finances required pursuant to
2 Section 99245 shall verify that the revenues identified in
3 subdivision (c) have been expended in conformance with these
4 specific requirements and all other generally applicable
5 requirements.
6 SEC. 15. Section 99314.9 is added to the Public Utilities Code,
7 to read:
8 99314.9. The Controller shall compute quarterly proposed
9 allocations for State Transit Assistance funds available for
10 allocation pursuant to Sections 99313 and 99314. The Controller
11 shall publish the allocations for each eligible recipient agency,
12 including one list applicable to revenues allocated pursuant to
13 subdivision (c) of Section 99312.1 and another list for revenues
14 allocated from all other revenues in the Public Transportation
15 Account that are designated for the State Transit Assistance
16 Program.
17 SEC. 16. Section 6051.8 of the Revenue and Taxation Code
18 is amended to read:
19 6051.8. (a) Except as provided by Section 6357.3, in addition
20 to the taxes imposed by this part, for the privilege of selling
21 tangible personal property at retail a tax is hereby imposed upon
22 all retailers at the rate of 1.75 percent of the gross receipts of any
23 retailer from the sale of all diesel fucl, as dcfincd in Scction 60022,
24 sold at rctail in this statc on and aftcr the operativc date of this
25 subdivision. fuel.
26 (b) Except as provided by Section 6357.3, in addition to the
27 taxes imposed by this part and by subdivision (a), for the privilege
28 of selling tangible personal property at retail a tax is hereby
29 imposed upon all retailers at the rate of 3.5 percent of the gross
30 receipts of any retailer from the sale of all diesel fuel, as defined
31 in Section 60022, sold at retail in this state. The tax imposed under
32 this subdivision shall be imposed on and after the first day of the
33 first calendar quarter that occurs 120 days after the effective date
34 of the act adding this subdivision.
35 (b) Notwithstanding subdivision (a), for
36 (c) Beginning July 1, 2019, and every third year thereafter, the
37 2011-12 fiscal ycar only, State Board of Equalization shall
38 recompute the ratc rcfcrcnccd in subdivision (a) rates of the taxes
39 imposed by this section. That computation shall be 1.87 perccnt.
40 made as follows:
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1 (c) Notwithstanding subdivision (a),
2 (1) The Department of Finance shall transmit to the State Board
3 of Equalization the percentage change in the California Consumer
4 Price Index for all items from November of three calendar years
5 prior to November of the 2012 13 fiscal ycar only, thc ratc
6 rcfcrcnccd in subdivision (a) shall be 2.17 perccnt. prior calendar
7 year, no later than January 31, 2019, and January 31 of every
8 third year thereafter
9 (d) Notwithstanding subdivision (a), for
10 (2) The State Board of Equalization shall do all of the following:
11 (A) Compute an inflation adjustment factor by adding 100
12 percent to the percentage change figure that is furnished pursuant
13 to paragraph (1) and dividing the result by 100.
14 (B) Multiply the preceding tax rate per gallon by the inflation
15 adjustment factor determined in subparagraph (A) and round off
16 the resulting product to the nearest tenth of a cent.
17 (C) Make its determination of the 2013 14 fiscal ycar only, new
18 rate no later than March 1 of the ratc rcfcrcnccd in subdivision
19 ; - - ; : - . same year as the effective date of the new
20 rate.
21 (ej
22 (d) Notwithstanding subdivision (b) of Section 7102, all of the
23 revenues, less refunds, collected pursuant to this section shall be
24 estimated by the State Board of Equalization, with the concurrence
25 of the Department of Finance, and transferred quarterly to the
26 Public Transportation Account in the State Transportation Fund
27 for allocation pursuant to Section 99312.1 of the Public Utilities
28 Code.
29 (f) Subdivisions (a) to (c), inclusive, shall bccomc operativc on
30 July 1, 2011.
31 SEC. 17. Section 6201.8 of the Revenue and Taxation Code
32 is amended to read:
33 6201.8. (a) Except as provided by Section 6357.3, in addition
34 to the taxes imposed by this part, an excise tax is hereby imposed
35 on the storage, use, or other consumption in this state of diesel
36 fuel, as defined in Section 60022, at the rate of 1.75 percent of the
37 sales price of the diesel furl on and after thc operativc datc of this
38 subdivision. fuel.
39 (b) Notwithstanding subdivision (a), for
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AB 1 —32-
1 (b) Except as provided by Section 6357.3, in addition to the
2 taxes imposed by this part and by subdivision (a), an excise tax is
3 hereby imposed on the storage, use, or other consumption in this
4 state of diesel fuel, as defined in Section 60022, at the rate of 3.5
5 percent of the sales price of the diesel fuel. The tax imposed under
6 this subdivision shall be imposed on and after the first day of the
7 first calendar quarter that occurs 120 days after the effective date
8 of the act adding this subdivision.
9 (c) Beginning July 1, 2019, and every third year thereafter, the
10 2011 12 fiscal ycar only, State Board of Equalization shall
11 recompute the ratc rcfcrcnccd in subdivision (a) rates of the taxes
12 imposed by this section. That computation shall be 1.87 perccnt.
13 made as follows:
14 (c) Notwithstanding subdivision (a),
15 (1) The Department of Finance shall transmit to the State Board
16 of Equalization the percentage change in the California Consumer
17 Price Index for all items from November of three calendar years
18 prior to November of the 2012 13 fiscal ycar only, the rate
19 rcfcrcnccd in subdivision (a) shall be 2.17 perccnt. prior calendar
20 year, no later than January 31, 2019, and January 31 of every
21 third year thereafter
22 (d) Notwithstanding subdivision (a), for
23 (2) The State Board of Equalization shall do all of the following:
24 (A) Compute an inflation adjustment factor by adding 100
25 percent to the percentage change figure that is furnished pursuant
26 to paragraph (1) and dividing the result by 100.
27 (B) Multiply the preceding tax rate per gallon by the inflation
28 adjustment factor determined in subparagraph (A) and round off
29 the resulting product to the nearest tenth of a cent.
30 (C) Make its determination ofthe 2013-14 fiscal ycar only, new
31 rate no later than March 1 of the ratc rcfcrcnccd in subdivision
32 (a) shall be 1.94 perccnt. same year as the effective date of the new
33 rate.
34 (e)
35 (d) Notwithstanding subdivision (b) of Section 7102, all of the
36 revenues, less refunds, collected pursuant to this section shall be
37 estimated by the State Board of Equalization, with the concurrence
38 of the Department of Finance, and transferred quarterly to the
39 Public Transportation Account in the State Transportation Fund
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1 for allocation pursuant to Section 99312.1 of the Public Utilities
2 Code.
3 (f) Subdivisions (a) to (c), inclusive, shall become operative on
4 July 1, 2011.
5 SEC. 18. Section 7360 of the Revenue and Taxation Code is
6 amended to read:
7 7360. (a) (1) (A) A tax of eighteen cents ($0.18) is hereby
8 imposed upon each gallon of fuel subject to the tax in Sections
9 7362, 7363, and 7364.
10 (B) In addition to the tax imposed pursuant to subparagraph
11 (A), on and after the first day of the first calendar quarter that
12 occurs 90 days after the effective date of the act adding this
13 subparagraph, a tax of twelve cents ($0.12) is hereby imposed
14 upon each gallon of fuel, other than aviation gasoline, subject to
15 the tax in Sections 7362, 7363, and 7364.
16 (2) If the federal fuel tax is reduced below the rate of nine cents
17 ($0.09) per gallon and federal financial allocations to this state for
18 highway and exclusive public mass transit guideway purposes are
19 reduced or eliminated correspondingly, the tax rate imposed by
20 subparagraph (A) of paragraph (1), on and after the date of the
21 reduction, shall be recalculated by an amount so that the combined
22 state rate under subparagraph (A) of paragraph (1) and the federal
23 tax rate per gallon equal twenty-seven cents ($0.27).
24 (3) If any person or entity is exempt or partially exempt from
25 the federal fuel tax at the time of a reduction, the person or entity
26 shall continue to be so exempt under this section.
27 (b) (1) On and after July 1, 2010, in addition to the tax imposed
28 by subdivision (a), a tax is hereby imposed upon each gallon of
29 motor vehicle fuel, other than aviation gasoline, subject to the tax
30 in Sections 7362, 7363, and 7364 in an amount equal to seventeen
31 and three -tenths cents ($0.173) per gallon.
32 (2) For the 2011-12 fiscal year
33 (c) Beginning July 1, 2019, and cach fiscal every third year
34 thereafter, the board shall, on or bcforc March 1 State Board of
35 thc fiscal ycar immediately prcccding thc applicable fiscal ycar,
36 adjust thc ratc in paragraph (1) in that manncr as to gcncratc an
37 amount Equalization shall recompute the rates of rcvcnuc that
38 will equal thc amount of revenue loss attributable to thc cxcmption
39 provided taxes imposed by Scction 6357.7, based on estimates
40 madc by thc board, and that ratc this section. That computation
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AB 1 — 34 —
1 shall be effective during thc statc's ncxt fiscal ycar. made as
2 follows:
3 (3) In order to maintain rcvcnuc neutrality for each ycar,
4 beginning with
5 (1) The Department of Finance shall transmit to the State Board
6 of Equalization the percentage change in the California Consumer
7 Price Index for all items from November of three calendar years
8 prior to November of the prior calendar year, no later than January
9 31, 2019, and January 31 of every third year thereafter
10 (2) The State Board of Equalization shall do all of the following:
11 (A) Compute an inflation adjustment factor by adding 100
12 percent to the percentage change figure that is furnished pursuant
13 to paragraph (1) and dividing the result by 100.
14 (B) Multiply the preceding tax ratc adjustmcnt on or bcforc
15 March 1, 2012, thc adjustmcnt under paragraph (2) shall also take
16 into account thc extent to which thc actual amount of revenues
17 derived pursuant to this subdivision and, as applicable, Scction
18 7361.1, thc rcvcnuc loss attributable to thc exemption provided
19 per gallon by Scction 6357.7 resulted the inflation adjustment
20 factor determined in a nct rcvcnuc gain or loss for subparagraph
21 (A) and round off the fiscal ycar ending prior resulting product to
22 the ratc adjustmcnt date on or bcforc March 1. nearest tenth of a
23 cent.
24 (4) The intent
25 (C) Make its determination of paragraphs (2) and (3) is to ensure
26 that the act adding this subdivision and Scction 6357.7 docs not
27 produce a nct rcvcnuc gain in stats taxcs. new rate no later than
28 March 1 of the same year as the effective date of the new rate.
29 SEC. 19. Section 8352.4 of the Revenue and Taxation Code
30 is amended to read:
31 8352.4. (a) Subject to Sections 8352 and 8352.1, and except
32 as otherwise provided in subdivision (b), there shall be transferred
33 from the money deposited to the credit of the Motor Vehicle Fuel
34 Account to the Harbors and Watercraft Revolving Fund, for
35 expenditure in accordance with Division 1 (commencing with
36 Section 30) of the Harbors and Navigation Code, the sum of six
37 million six hundred thousand dollars ($6,600,000) per annum,
38 representing the amount of money in the Motor Vehicle Fuel
39 Account attributable to taxes imposed on distributions of motor
40 vehicle fuel used or usable in propelling vessels. The actual amount
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1 shall be calculated using the annual reports of registered boats
2 prepared by the Department of Motor Vehicles for the United
3 States Coast Guard and the formula and method of the December
4 1972 report prepared for this purpose and submitted to the
5 Legislature on December 26, 1972, by the Director of
6 Transportation. If the amount transferred during each fiscal year
7 is in excess of the calculated amount, the excess shall be
8 retransferred from the Harbors and Watercraft Revolving Fund to
9 the Motor Vehicle Fuel Account. If the amount transferred is less
10 than the amount calculated, the difference shall be transferred from
11 the Motor Vehicle Fuel Account to the Harbors and Watercraft
12 Revolving Fund. No adjustment shall be made if the computed
13 difference is less than fifty thousand dollars ($50,000), and the
14 amount shall be adjusted to reflect any temporary or permanent
15 increase or decrease that may be made in the rate under the Motor
16 Vehicle Fuel Tax Law. Payments pursuant to this section shall be
17 made prior to payments pursuant to Section 8352.2.
18 (b) Commencing July 1, 2012, 2017, the revenues attributable
19 to the taxes imposed pursuant to subdivision (b) of Section 7360
20 and Section 7361.1 and otherwise to be deposited in the Harbors
21 and Watercraft Revolving Fund pursuant to subdivision (a) shall
22 instead be transferred to the Gcncral Fund. The revenues
23 attributable to thc taxes imposcd Highway Users Tax Account for
24 distribution pursuant to subdivision (b) of Section 7360 and Scction
25 7361.1 that wcrc deposited in 2103.1 of the Ilarbors Streets and
26 Watcrcraft Revolving Fund in thc 2010-11 and 2011-12 fiscal
27 years shall be transferred to thc Gcncral Fund. Highways Code.
28 SEC. 20. Section 8352.5 of the Revenue and Taxation Code
29 is amended to read:
30 8352.5. (a) (1) Subject to Sections 8352 and 8352.1, and
31 except as otherwise provided in subdivision (b), there shall be
32 transferred from the money deposited to the credit of the Motor
33 Vehicle Fuel Account to the Department of Food and Agriculture
34 Fund, during the second quarter of each fiscal year, an amount
35 equal to the estimate contained in the most recent report prepared
36 pursuant to this section.
37 (2) The amounts are not subject to Section 6357 with respect
38 to the collection of sales and use taxes thereon, and represent the
39 portion of receipts in the Motor Vehicle Fuel Account during a
40 calendar year that were attributable to agricultural off-highway
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AB 1 —36-
1 use of motor vehicle fuel which is subject to refund pursuant to
2 Section 8101, less gross refunds allowed by the Controller during
3 the fiscal year ending June -3 -0th 30 following the calendar year to
4 persons entitled to refunds for agricultural off-highway use
5 pursuant to Section 8101. Payments pursuant to this section shall
6 be made prior to payments pursuant to Section 8352.2.
7 (b) Commencing July 1, 2012, 2017, the revenues attributable
8 to the taxes imposed pursuant to subdivision (b) of Section 7360
9 and Section 7361.1 and otherwise to be deposited in the
10 Department of Food and Agriculture Fund pursuant to subdivision
11 (a) shall instead be transferred to the Gcncral Fund. The revenues
12 attributable to thc taxcs imposcd Highway Users Tax Account for
13 distribution pursuant to subdivision (b) of Section 7360 and Scction
14 7361.1 that wcrc dcpositcd in thc Dcpartmcnt 2103.1 of Food and
15 Agriculture Fund in the 2010-11 Streets and 2011 12 fiscal years
16 shall be transfcrrcd to the Gcncral Fund. Highways Code.
17 (c) On or before September 30, 2012, and on or before
18 September 30 of each even -numbered year thereafter, the Director
19 of Transportation and the Director of Food and Agriculture shall
20 jointly prepare, or cause to be prepared, a report setting forth the
21 current estimate of the amount of money in the Motor Vehicle
22 Fuel Account attributable to agricultural off-highway use of motor
23 vehicle fuel, which is subject to refund pursuant to Section 8101
24 less gross refunds allowed by the Controller to persons entitled to
25 refunds for agricultural off-highway use pursuant to Section 8101;
26 and they shall submit a copy of the report to the Legislature.
27 SEC. 21. Section 8352.6 of the Revenue and Taxation Code
28 is amended to read:
29 8352.6. (a) (1) Subject to Section 8352.1, and except as
30 otherwise provided in paragraphs (2) and (3), on the first day of
31 every month, there shall be transferred from moneys deposited to
32 the credit of the Motor Vehicle Fuel Account to the Off -Highway
33 Vehicle Trust Fund created by Section 38225 of the Vehicle Code
34 an amount attributable to taxes imposed upon distributions of motor
35 vehicle fuel used in the operation of motor vehicles off highway
36 and for which a refund has not been claimed. Transfers made
37 pursuant to this section shall be made prior to transfers pursuant
38 to Section 8352.2.
39 (2) Commencing July 1, 2012, 2017, the revenues attributable
40 to the taxes imposed pursuant to subdivision (b) of Section 7360
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1 and Section 7361.1 and otherwise to be deposited in the
2 Off -Highway Vehicle Trust Fund pursuant to paragraph (1) shall
3 instead be transferred to the Gcncral Fund. The revenues
4 attributable to thc taxes imposcd Highway Users Tax Account for
5 distribution pursuant to subdivision (b) of Section 7360 and Scction
6 7361.1 that wcrc dcpositcd in 2103.1 of the Off -Highway Vehicle
7 Trust Fund in thc 2010 11 Streets and 2011-12 fiscal ycars shall
8 be transferred to thc Gcncral Fund. Highways Code.
9 (3) The Controller shall withhold eight hundred thirty-three
10 thousand dollars ($833,000) from the monthly transfer to the
11 Off -Highway Vehicle Trust Fund pursuant to paragraph (1), and
12 transfer that amount to the General Fund.
13 (b) The amount transferred to the Off -Highway Vehicle Trust
14 Fund pursuant to paragraph (1) of subdivision (a), as a percentage
15 of the Motor Vehicle Fuel Account, shall be equal to the percentage
16 transferred in the 2006-07 fiscal year. Every five years, starting
17 in the 2013-14 fiscal year, the percentage transferred may be
18 adjusted by the Department of Transportation in cooperation with
19 the Department of Parks and Recreation and the Department of
20 Motor Vehicles. Adjustments shall be based on, but not limited
21 to, the changes in the following factors since the 2006-07 fiscal
22 year or the last adjustment, whichever is more recent:
23 (1) The number of vehicles registered as off-highway motor
24 vehicles as required by Division 16.5 (commencing with Section
25 38000) of the Vehicle Code.
26 (2) The number of registered street -legal vehicles that are
27 anticipated to be used off highway, including four-wheel drive
28 vehicles, all -wheel drive vehicles, and dual -sport motorcycles.
29 (3) Attendance at the state vehicular recreation areas.
30 (4) Off-highway recreation use on federal lands as indicated by
31 the United States Forest Service's National Visitor Use Monitoring
32 and the United States Bureau of Land Management's Recreation
33 Management Information System.
34 (c) It is the intent of the Legislature that transfers from the Motor
35 Vehicle Fuel Account to the Off -Highway Vehicle Trust Fund
36 should reflect the full range of motorized vehicle use off highway
37 for both motorized recreation and motorized off-road access to
38 other recreation opportunities. Therefore, the Legislature finds that
39 the fuel tax baseline established in subdivision (b), attributable to
40 off-highway estimates of use as of the 2006-07 fiscal year,
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AB 1 — 38 —
1 accounts for the three categories of vehicles that have been found
2 over the years to be users of fuel for off-highway motorized
3 recreation or motorized access to nonmotorized recreational
4 pursuits. These three categories are registered off-highway
5 motorized vehicles, registered street -legal motorized vehicles used
6 off highway, and unregistered off-highway motorized vehicles.
7 (d) It is the intent of the Legislature that the off-highway motor
8 vehicle recreational use to be determined by the Department of
9 Transportation pursuant to paragraph (2) of subdivision (b) be that
10 usage by vehicles subject to registration under Division 3
11 (commencing with Section 4000) of the Vehicle Code, for
12 recreation or the pursuit of recreation on surfaces where the use
13 of vehicles registered under Division 16.5 (commencing with
14 Section 38000) of the Vehicle Code may occur.
15 (e) In the 2014-15 fiscal year, the Department of Transportation,
16 in consultation with the Department of Parks and Recreation and
17 the Department of Motor Vehicles, shall undertake a study to
18 determine the appropriate adjustment to the amount transferred
19 pursuant to subdivision (b) and to update the estimate of the amount
20 attributable to taxes imposed upon distributions of motor vehicle
21 fuel used in the operation of motor vehicles off highway and for
22 which a refund has not been claimed. The department shall provide
23 a copy of this study to the Legislature no later than January 1,
24 2016.
25 SEC. 22. Section 60050 of the Revenue and Taxation Code is
26 amended to read:
27 60050. (a) (1) A tax of cightccn thirteen cents ($0.18) ($0.13)
28 is hereby imposed upon each gallon of diesel fuel subject to the
29 tax in Sections 60051, 60052, and 60058.
30 (2) If the federal fuel tax is reduced below the rate of fifteen
31 cents ($0.15) per gallon and federal financial allocations to this
32 state for highway and exclusive public mass transit guideway
33 purposes are reduced or eliminated correspondingly, the tax rate
34 imposed by paragraph (1), including any rcduction or adjustmcnt
35 pursuant to subdivision (b), on and aftcr the datc of the rcduction,
36 (1) shall be increased by an amount so that the combined state rate
37 under paragraph (1) and the federal tax rate per gallon equal what
38 it would have been in the absence of the federal reduction.
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— 39 — AB 1
1 (3) If any person or entity is exempt or partially exempt from
2 the federal fuel tax at the time of a reduction, the person or entity
3 shall continue to be exempt under this section.
4 (b) (1) On July 1, 2011, thc tax ratc spccificd in paragraph (1)
5 of subdivision (a) shall bc rcduccd to thirtccn ccnts ($0.13) and
6 cvcry July 1 thcrcaftcr shall bc adjustcd pursuant to paragraphs
7 (2) and (3).
8 (2) For thc 2012-13 fiscal ycar and cach fiscal ycar thcrcaftcr,
9 thc board shall, on or bcforc March 1 of the fiscal ycar immediately
10 prcccding thc applicable fiscal ycar, adjust thc ratc reduction in
11 paragraph (1) in that manncr as to result in a rcvcnuc loss
12 attributablc to paragraph (1) that will cqual thc amount of rcvcnuc
13 gain attributablc to Scctions 6051.8 and 6201.8, bascd on cstimatcs
14 madc by thc board, and that ratc shall bc cffcctivc during thc statc's
15 ncxt fiscal year.
16 (3) In ordcr to maintain rcvcnuc ncutrality for cach ycar,
17 bcginning with thc ratc adjustmcnt on or bcforc March 1, 2013,
18 thc adjustmcnt undcr paragraph (2) shall takc into account the
19 cxtcnt to which thc actual amount of rcvcnucs dcrivcd pursuant to
20 Scctions 6051.8 and 6201.8 and thc rcvcnuc loss attributablc to
21 this subdivision resulted in a net rcvcnuc gain or loss for the fiscal
22 ycar cnding prior to thc ratc adjustmcnt datc on or bcforc March
23 -17
24 (4) The intcnt of paragraphs (2) and (3) is to cnsurc that thc act
25 adding this subdivision and Scctions 6051.8 and 6201.8 docs not
26 producc a nct rcvcnuc gain in statc taxcs.
27 (b) In addition to the tax imposed pursuant to subdivision (a),
28 on and after the first day of the first calendar quarter that occurs
29 120 days after the effective date of the act amending this
30 subdivision in the 2017-18 Regular Session, an additional tax of
31 twenty cents ($0.20) is hereby imposed upon each gallon of diesel
32 fuel subject to the tax in Sections 60051, 60052, and 60058.
33 (c) Beginning July 1, 2019, and every third year thereafter, the
34 State Board of Equalization shall recompute the rates of the taxes
35 imposed by this section. That computation shall be made as
36 follows:
37 (1) The Department of Finance shall transmit to the State Board
38 of Equalization the percentage change in the California Consumer
39 Price Index for all items from November of three calendar years
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AB 1 —40-
1 prior to November of the prior calendar year, no later than January
2 31, 2019, and January 31 of every third year thereafter.
3 (2) The State Board of Equalization shall do all of the following:
4 (A) Compute an inflation adjustment factor by adding 100
5 percent to the percentage change figure that is furnished pursuant
6 to paragraph (1) and dividing the result by 100.
7 (B) Multiply the preceding tax rate per gallon by the inflation
8 adjustment factor determined in subparagraph (A) and round off
9 the resulting product to the nearest tenth of a cent.
10 (C) Make its determination of the new rate no later than March
11 1 of the same year as the effective date of the new rate.
12 SEC. 23. Section 183.1 of the Streets and Highways Code is
13 amended to read:
14 183.1. (a) Notwithstanding subdivision (a) of Except as
15 otherwise provided in Section 182 or any othcr provision 54237.7
16 of law, the Government Code, money deposited into the account
17 that is not subject to Article XIX of the California Constitution,
18 including, but not limited to, money that is derived from the sale
19 of documents, charges for miscellaneous services to the public,
20 condemnation deposits fund investments, rental of state property,
21 or any other miscellaneous uses of property or money, may shall
22 be uscd for any transportation purpose authorizcd by statute, upon
23 deposited in thc Legislature or, after transfcr Road
24 Maintenance and Rehabilitation Account created pursuant to
25 anothcr fund, upon appropriation by thc Legislature from that fund.
26 Section 2031.
27 (b) Commcncing with thc 2013 14 fiscal ycar, and not later
28 than November 1 of each fiscal ycar thcrcaftcr, based on prior ycar
29 financial statcmcnts, thc Controller shall transfcr thc funds
30 idcntificd in subdivision (a) for thc prior fiscal ycar from thc State
31 Ilighway Account to the Transportation Dcbt Service Fund in the
32 Statc Transportation Fund, and thosc funds arc continuously
33 appropriated for the purposes spccificd for thc Transportation Dcbt
34 Service Fund.
35 SEC. 24. Section 820.1 is added to the Streets and Highways
36 Code, to read:
37 820.1. (a) The State of California consents to the jurisdiction
38 of the federal courts with regard to the compliance, discharge, or
39 enforcement of the responsibilities assumed by the department
99
-41— AB 1
1 pursuant to Sections 326 and 327(a) of Title 23 of the United States
2 Code.
3 (b) In any action brought pursuant to the federal laws described
4 in subdivision (a), no immunity from suit may be asserted by the
5 department pursuant to the Eleventh Amendment to the United
6 States Constitution, and any immunity is hereby waived.
7 (c) The department shall not delegate any of its responsibilities
8 assumed pursuant to the federal laws described in subdivision (a)
9 to any political subdivision of the state or its instrumentalities.
10 (d) Nothing in this section affects the obligation of the
11 department to comply with state and federal law.
12 SEC. 25. Chapter 2 (commencing with Section 2030) is added
13 to Division 3 of the Streets and Highways Code, to read:
14
15 CHAPTER 2. ROAD MAINTENANCE AND REHABILITATION
16 PROGRAM
17
18 2030. (a) The Road Maintenance and Rehabilitation Program
19 is hereby created to address deferred maintenance on the state
20 highway system and the local street and road system. Funds made
21 available by the program shall be prioritized for expenditure on
22 basic road maintenance and road rehabilitation projects, and on
23 critical safety projects. For funds appropriated pursuant to
24 paragraph (1) of subdivision (d) of Section 2032, the California
25 Transportation Commission shall adopt performance criteria,
26 consistent with the asset management plan required pursuant to
27 14526.4 of the Government Code, to ensure efficient use of the
28 funds available for these purposes in the program.
29 (b) (1) Funds made available by the program shall be used for
30 projects that include, but are not limited to, the following:
31 (A) Road maintenance and rehabilitation.
32 (B) Safety projects.
33 (C) Railroad grade separations.
34 (D) Complete street components, including active transportation
35 purposes, pedestrian and bicycle safety projects, transit facilities,
36 and drainage and stormwater capture projects in conjunction with
37 any other allowable project.
38 (E) Traffic control devices.
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AB 1 —42-
1 (2) Funds made available by the program may also be used to
2 satisfy a match requirement in order to obtain state or federal funds
3 for projects authorized by this subdivision.
4 2031. The following revenues shall be deposited in the Road
5 Maintenance and Rehabilitation Account, which is hereby created
6 in the State Transportation Fund:
7 (a) The portion of the revenues in the Highway Users Tax
8 Account attributable to the increase in the motor vehicle fuel excise
9 tax pursuant to subparagraph (B) of paragraph (1) of subdivision
10 (a) of Section 7360 of the Revenue and Taxation Code, as adjusted
11 pursuant to subdivision (c) of that section.
12 (b) The revenues from the increase in the vehicle registration
13 fee pursuant to Section 9250.3 of the Vehicle Code, as adjusted
14 pursuant to subdivision (b) of that section.
15 (c) The revenues from the increase in the vehicle registration
16 fee pursuant to Section 9250.6 of the Vehicle Code, as adjusted
17 pursuant to subdivision (b) of that section.
18 (d) The revenues deposited in the account pursuant to Section
19 183.1 of the Streets and Highways Code.
20 (e) Any other revenues designated for the program.
21 2031.5. Each fiscal year the annual Budget Act shall contain
22 an appropriation from the Road Maintenance and Rehabilitation
23 Account to the Controller for the costs of carrying out his or her
24 duties pursuant to this chapter and to the California Transportation
25 Commission for the costs of carrying out its duties pursuant to this
26 chapter and Section 14526.7 of the Government Code.
27 2032. (a) (1) After deducting the amounts appropriated in the
28 annual Budget Act, as provided in Section 2031.5, two hundred
29 million dollars ($200,000,000) of the remaining revenues deposited
30 in the Road Maintenance and Rehabilitation Account shall be set
31 aside annually for counties that have sought and received voter
32 approval of taxes or that have imposed fees, including uniform
33 developer fees as defined by subdivision (b) of Section 8879.67
34 of the Government Code, which taxes or fees are dedicated solely
35 to transportation improvements. The Controller shall each month
36 set aside one -twelfth of this amount, to accumulate a total of two
37 hundred million dollars ($200,000,000) in each fiscal year.
38 (2) Notwithstanding Section 13340 of the Government Code,
39 the funds available under this subdivision in each fiscal year are
40 hereby continuously appropriated for allocation to each eligible
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1 county and each city in the county for road maintenance and
2 rehabilitation purposes pursuant to Section 2033.
3 (b) (1) After deducting the amounts appropriated in the annual
4 Budget Act pursuant to Section 2031.5 and the amount allocated
5 in subdivision (a), beginning in the 2017-18 fiscal year, eighty
6 million dollars ($80,000,000) of the remaining revenues shall be
7 transferred annually to the State Highway Account for expenditure,
8 upon appropriation by the Legislature, on the Active Transportation
9 Program created pursuant to Chapter 8 (commencing with Section
10 23 80) of Division 3 to be allocated by the California Transportation
11 Commission pursuant to Section 2381.
12 (2) In addition to the funds transferred in paragraph (1), the
13 department shall annually identify savings achieved through
14 efficiencies implemented at the depai tment. The department,
15 through the annual budget process, shall propose, from the
16 identified savings, an appropriation to be included in the annual
17 Budget Act of up to seventy million dollars ($70,000,000), but not
18 to exceed the total annual identified savings, from the State
19 Highway Account for expenditure on the Active Transportation
20 Program.
21 (c) After deducting the amounts appropriated in the annual
22 Budget Act pursuant to Section 2031.5, the amount allocated in
23 subdivision (a) and the amount transferred in paragraph (1) of
24 subdivision (b), in the 2017-18, 2018-19, 2019-20, and 2020-21
25 fiscal years, the sum of thirty million dollars ($30,000,000) in each
26 fiscal year from the remaining revenues shall be transferred to the
27 Advance Mitigation Fund in the State Transportation Fund created
28 pursuant to Section 21207 of the Public Resources Code.
29 (d) After deducting the amounts appropriated in the annual
30 Budget Act pursuant to Section 2031.5, the amount allocated in
31 subdivision (a), and the amounts transferred in paragraph (1) of
32 subdivision (b) and in subdivision (c), beginning in the 2017-18
33 fiscal year and each fiscal year thereafter, and notwithstanding
34 Section 13340 of the Government Code, there is hereby
35 continuously appropriated to the California State University the
36 sum of two million dollars ($2,000,000) from the remaining
37 revenues for the purpose of conducting transportation research and
38 transportation -related workforce education, training, and
39 development, and to the institutes for transportation studies at the
40 University of California the sum of three million dollars
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AB 1 —44-
1 ($3,000,000). Prior to the start of each fiscal year, the chairs of the
2 Assembly Committee on Transportation and the Senate Committee
3 on Transportation and Housing shall confer and set out a
4 recommended priority list of research components to be addressed
5 in the upcoming fiscal year.
6 (e) Notwithstanding Section 13340 of the Government Code,
7 the balance of the revenues deposited in the Road Maintenance
8 and Rehabilitation Account are hereby continuously appropriated
9 as follows:
10 (1) Fifty percent for allocation to the department for maintenance
11 of the state highway system or for purposes of the state highway
12 operation and protection program.
13 (2) Fifty percent for apportionment to cities and counties by the
14 Controller pursuant to the formula in clauses (i) and (ii) of
15 subparagraph (C) of paragraph (3) of subdivision (a) of Section
16 2103 for the purposes authorized by this chapter.
17 2033. (a) On or before July 1, 2017, the commission, in
18 cooperation with the department, transportation planning agencies,
19 county transportation commissions, and other local agencies, shall
20 develop guidelines for the allocation of funds pursuant to
21 subdivision (a) of Section 2032.
22 (b) The guidelines shall be the complete and full statement of
23 the policy, standards, and criteria that the commission intends to
24 use to determine how these funds will be allocated.
25 (c) The commission may amend the adopted guidelines after
26 conducting at least one public hearing.
27 2034. (a) (1) Prior to receiving an apportionment of funds
28 under the program pursuant to paragraph (2) of subdivision (e) of
29 Section 2032 from the Controller in a fiscal year, an eligible city
30 or county shall submit to the commission a list of projects proposed
31 to be funded with these funds pursuant to an adopted city or county
32 budget. All projects proposed to receive funding shall be included
33 in a city or county budget that is adopted by the applicable city
34 council or county board of supervisors at a regular public meeting.
35 The list of projects proposed to be funded with these funds shall
36 include a description and the location of each proposed project, a
37 proposed schedule for the project's completion, and the estimated
38 useful life of the improvement. The project list shall not limit the
39 flexibility of an eligible city or county to fund projects in
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— 45 — AB 1
1 accordance with local needs and priorities so long as the projects
2 are consistent with subdivision (b) of Section 2030.
3 (2) The commission shall report to the Controller the cities and
4 counties that have submitted a list of projects as described in this
5 subdivision and that are therefore eligible to receive an
6 apportionment of funds under the program for the applicable fiscal
7 year. The Controller, upon receipt of the report, shall apportion
8 funds to eligible cities and counties.
9 (b) For each fiscal year, each city or county receiving an
10 apportionment of funds shall, upon expending program funds,
11 submit documentation to the commission that includes a description
12 and location of each completed project, the amount of funds
13 expended on the project, the completion date, and the estimated
14 useful life of the improvement.
15 2036. (a) Cities and counties shall maintain their existing
16 commitment of local funds for street, road, and highway purposes
17 in order to remain eligible for an allocation or apportionment of
18 funds pursuant to Section 2032.
19 (b) In order to receive an allocation or apportionment pursuant
20 to Section 2032, the city or county shall annually expend from its
21 general fund for street, road, and highway purposes an amount not
22 less than the annual average of its expenditures from its general
23 fund during the 2009-10, 2010-11, and 2011-12 fiscal years, as
24 reported to the Controller pursuant to Section 2151. For purposes
25 of this subdivision, in calculating a city's or county's annual
26 general fund expenditures and its average general fund expenditures
27 for the 2009-10, 2010-11, and 2011-12 fiscal years, any
28 unrestricted funds that the city or county may expend at its
29 discretion, including vehicle in -lieu tax revenues and revenues
30 from fines and forfeitures, expended for street, road, and highway
31 purposes shall be considered expenditures from the general fund.
32 One-time allocations that have been expended for street and
33 highway purposes, but which may not be available on an ongoing
34 basis, including revenue provided under the Teeter Plan Bond Law
35 of 1994 (Chapter 6.6 (commencing with Section 54773) of Part 1
36 of Division 2 of Title 5 of the Government Code), may not be
37 considered when calculating a city's or county's annual general
38 fund expenditures.
39 (c) For any city incorporated after July 1, 2009, the Controller
40 shall calculate an annual average expenditure for the period
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AB 1 — 46 —
1 between July 1, 2009, and December 31, 2015, inclusive, that the
2 city was incorporated.
3 (d) For purposes of subdivision (b), the Controller may request
4 fiscal data from cities and counties in addition to data provided
5 pursuant to Section 2151, for the 2009-10, 2010-11, and 2011-12
6 fiscal years. Each city and county shall furnish the data to the
7 Controller not later than 120 days after receiving the request. The
8 Controller may withhold payment to cities and counties that do
9 not comply with the request for information or that provide
10 incomplete data.
11 (e) The Controller may perform audits to ensure compliance
12 with subdivision (b) when deemed necessary. Any city or county
13 that has not complied with subdivision (b) shall reimburse the state
14 for the funds it received during that fiscal year. Any funds withheld
15 or returned as a result of a failure to comply with subdivision (b)
16 shall be reapportioned to the other cities and counties whose
17 expenditures are in compliance.
18 (f) If a city or county fails to comply with the requirements of
19 subdivision (b) in a particular fiscal year, the city or county may
20 expend during that fiscal year and the following fiscal year a total
21 amount that is not less than the total amount required to be
22 expended for those fiscal years for purposes of complying with
23 subdivision (b).
24 2037. A city or county may spend its apportionment of funds
25 under the program on transportation priorities other than those
26 allowable pursuant to this chapter if the city's or county's average
27 Pavement Condition Index meets or exceeds 80.
28 2038. (a) The department and local agencies, as a condition
29 of receiving funds from the program, shall adopt and implement
30 a program designed to promote and advance construction
31 employment and training opportunities through preapprenticeship
32 opportunities, either by the public agency itself or through
33 contractors engaged by the public agencies to do work funded in
34 whole or in part by funds made available by the program.
35 (b) The department and local agencies, as a condition of
36 receiving funds from the program, shall ensure the involvement
37 of the California Conservation Corps and certified community
38 conservation corps in the delivery of projects and services funded
39 in whole or in part by funds made available by the program.
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1 SEC. 26. Section 2103.1 is added to the Streets and Highways
2 Code, to read:
3 2103.1. (a) Notwithstanding Section 2103, the revenues
4 transferred to the Highway Users Tax Account pursuant to Sections
5 8352.4, 8352.5, and 8352.6 of the Revenue and Taxation Code
6 shall be distributed pursuant to the formula in paragraph (3) of
7 subdivision (a) of Section 2103.
8 (b) Notwithstanding subdivision (b) of Section 2103, the portion
9 of revenues in the Highway Users Tax Account attributable to the
10 increase in the motor vehicle fuel excise tax pursuant to
11 subparagraph (B) of paragraph (1) of subdivision (a) of Section
12 7360 of the Revenue and Taxation Code, as adjusted pursuant to
13 subdivision (c) of that section, shall be transferred to the Road
14 Maintenance and Rehabilitation Account pursuant to Section 2031.
15 (c) Notwithstanding subdivision (b) of Section 2103, the portion
16 of revenues in the Highway Users Tax Account attributable to the
17 increase in the diesel fuel excise tax pursuant to subdivision (b)
18 of Section 60050 of the Revenue and Taxation Code, as adjusted
19 pursuant to subdivision (c) of that section, shall be transferred to
20 the Trade Corridors Improvement Fund pursuant to Section 2192.4.
21 SEC. 27. Section 2192 of the Streets and Highways Code is
22 amended to read:
23 2192. (a) (1) The Trade Corridors Improvement Fund, created
24 pursuant to subdivision (c) of Section 8879.23 of the Government
25 Code, is hereby continued in existence to receive revenues from
26 state sources other than the Highway Safety, Traffic Reduction,
27 Air Quality, and Port Security Bond Act of 2006. This chaptcr
28 shall govern cxpcnditurc of thosc othcr revenues.
29 (2) Revenues apportioned to the state under Section 167 of Title
30 23 of the United States Code from the national highway freight
31 program, pursuant to the federal Fixing America's Surface
32 Transportation Act ("FAST Act," Public Law 114-94) shall be
33 allocated for projects approved pursuant to this chapter
34 (b) This chapter shall govern the expenditure of those state and
35 federal revenues described in subdivision (a).
36 (b)
37 (c) The moncys funding described in the fund from thosc othcr
38 sourccs subdivision (a) shall be available upon appropriation for
39 allocation by the California Transportation Commission for
40 infrastructure improvements in this state on federally designated
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AB 1 —48-
1 Trade Corridors of National and Regional Significance, on the
2 Primary Freight Network, and along other corridors that have a
3 high volume of freight movement, as determined by the
4 commission. In determining the projects eligible for funding, the
5 commission shall consult the Transportation Agency's state freight
6 plan as described in Section 13978.8 of the Government Codc, the
7 Statc Air Rcsourccs Board's Sustainable Frcight Stratcgy adoptcd
8 by Resolution 14-2, Code and the tradc infrastructure and goods
9 movement plan submittcd to thc commission by thc Sccrctary of
10 Transportation and thc Sccrctary for Environmental Protcction.
11 California Sustainable Freight Action Plan released in July 2016
12 pursuant to Executive Order B-32-15. The commission shall also
13 consult trade infrastructure and goods movement plans adopted
14 by regional transportation planning agencies, adopted regional
15 transportation plans required by state and federal law, and the
16 statewide applicable port master plan prepared by the California
17 Marino and Intcrmodal Transportation Systcm Advisory Council
18 (Cal-MITSAC) pursuant to Scction 1730 of thc Ilarbors and
19 Navigation Codc, when determining eligible projects for funding.
20 Eligible projects for thcsc funds funding described in subdivision
21 (a) shall further the state 's economic, environmental, and public
22 health objectives and goals for freight policy, as articulated in the
23 plans to be consulted pursuant to this subdivision, and may include,
24 but are not limited to, all of the following:
25 (1) Highway capacity improvements, rail landside access
26 improvements, landside freight access improvements to airports,
27 and operational improvements to more efficiently accommodate
28 the movement of freight, particularly for ingress and egress to and
29 from the state's land ports of cntry entry, rail terminals, and
30 seaports, including navigable inland waterways used to transport
31 freight between seaports, land ports of entry, and airports, and to
32 relieve traffic congestion along major trade or goods movement
33 corridors.
34 (2) Freight rail system improvements to enhance the ability to
35 move goods from seaports, land ports of entry, and airports to
36 warehousing and distribution centers throughout California,
37 including projects that separate rail lines from highway or local
38 road traffic, improve freight rail mobility through mountainous
39 regions, relocate rail switching yards, and other projects that
40 improve the efficiency and capacity of the rail freight system.
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1 (3) Projects to enhance the capacity and efficiency of ports.
2 (4) Truck corridor and capital and operational improvements,
3 including dedicated truck facilities or truck toll facilities.
4 (5) Border access capital and operational improvements that
5 enhance goods movement between California and Mexico and that
6 maximize the state's ability to access coordinatcd bordcr
7 infrastructure funds made available to the state by federal law.
8 (6) Surface transportation and connector road improvements to
9 effectively facilitate the movement of goods, particularly for
10 ingress and egress to and from the state's land ports of entry,
11 airports, and seaports, to relieve traffic congestion along major
12 trade or goods movement corridors.
13 {e}
14 (d) (1) The In selecting projects for inclusion in the program
15 of projects to be funded with funds described in subdivision (a),
16 the commission shall allocate funds for tradc infrastructure
17 improvements from the fund evaluate the total potential costs and
18 total potential economic and noneconomic benefits of the program
19 to California's economy, environment, and public health. The
20 commission shall consult with the State Air Resources Board in
21 order to utilize the appropriate models, techniques, and methods
22 to develop the parameters for evaluation of projects. The
23 commission shall allocate the funding described in subdivision (a)
24 for trade infrastructure improvements consistent with Section
25 8879.52 of the Government Code and the Trade Corridors
26 Improvement Fund (TCIF) Guidelines adopted by the commission
27 on November 27, 2007, or as amended by the commission, and in
28 a manner that (A) addresses the state's most urgent needs, (B)
29 balances the demands of various land ports of entry, seaports, and
30 airports, (C) provides reasonable geographic balance between the
31 state's regions, (D) places emphasis on projects that improve
32 trade corridor mobility and safety while reducing emissions of
33 diesel particulate particulates, greenhouse gases, and other
34 pollutant cmissions. pollutants, and reducing other negative
35 community impacts, and (E) makes a significant contribution to
36 the state's economy.
37 (2) In adopting amended guidelines, and developing and
38 adopting the program of projects, the commission shall do all of
39 the following:
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AB 1 — 50 —
1 (A) Accept nominations for projects to be included in the
2 program of projects from regional and local transportation
3 agencies and the Department of Transportation.
4 (B) Recognize the key role of the state in project identification
5 and support integrating statewide goods movement priorities into
6 the corridor approach.
7 (C) Make a finding that adoption and delivery of the program
8 of projects is in the public interest.
9 (2-)
10 (3) In addition, the commission shall also consider the following
11 factors when allocating these funds:
12 (A) "Velocity," which means the speed by which large cargo
13 would travel from the land port of entry or seaport through the
14 distribution system.
15 (B) "Throughput," which means the volume of cargo that would
16 move from the land port of entry or seaport through the distribution
17 system.
18 (C) "Reliability," which means a reasonably consistent and
19 predictable amount of time for cargo to travel from one point to
20 another on any given day or at any given time in California.
21 (D) "Congestion reduction," which means the reduction in
22 recurrent daily hours of delay to be achieved.
23 SEC. 28. Section 2192.1 of the Streets and Highways Code is
24 amended to read:
25 2192.1. (a) To the extent moneys from the Greenhouse Gas
26 Reduction Fund, attributable to the auction or sale of allowances
27 as part of a market-based compliance mechanism relative to
28 reduction of greenhouse gas emissions, are transferred to the Trade
29 Corridors Improvement Fund, projects funded with those moneys
30 shall be subject to all of the requirements of existing law applicable
31 to the expenditure of moneys appropriated from the Greenhouse
32 Gas Reduction Fund, including, but not limited to, both all of the
33 following:
34 (1) Projects shall further the regulatory purposes of the
35 California Global Warming Solutions Act of 2006 (Division 25.5
36 (commencing with Section 38500) of the Health and Safety Code),
37 including reducing emissions from greenhouse gases in the state,
38 directing public and private investment toward disadvantaged
39 communities, increasing the diversity of energy sources, or creating
40 opportunities for businesses, public agencies, nonprofits, and other
99
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1 community institutions to participate in and benefit from statewide
2 efforts to reduce emissions of greenhouse gases.
3 (2) Projects shall be consistent with the guidance developed by
4 the State Air Resources Board pursuant to Section 39715 of the
5 Health and Safety Code.
6 (3) Projects shall be consistent with the required benefits to
7 disadvantaged communities pursuant to Section 39713 of the
8 Health and Safety Code.
9 (b) All allocations of funds made by the commission pursuant
10 to this section shall be made in a manner consistent with the criteria
11 expressed in Section 39712 of the Health and Safety Code and
12 with the investment plan developed by the Department of Finance
13 pursuant to Section 39716 of the Health and Safety Code.
14 (c) For purposes of this section, "disadvantaged community"
15 means a community with any of the following characteristics:
16 (1) An area with a median household income less than 80
17 percent of the statewide median household income based on the
18 most current census tract -level data from the American Community
19 Survey.
20 (2) An area identified by the California Environmental
21 Protection Agency pursuant to Section 39711 of the Health and
22 Safety Code.
23 (3) An area where at least 75 percent of public school students
24 are eligible to receive free or reduced price meals under the
25 National School Lunch Program.
26 SEC. 29. Section 2192.2 of the Streets and Highways Code is
27 amended to read:
28 2192.2. The commission shall allocate funds made available
29 by this chapter to projects that have identified and committed
30 supplemental funding from appropriate local, federal, or private
31 sources. The commission shall determine the appropriate amount
32 of supplemental funding each project should have to be eligible
33 for moneys from thc fund based on a project -by -project review
34 and an assessment of the project's benefit to the state and the
35 program. Exccpt for bordcr acccss Funded improvements described
36 in paragraph (5) of subdivision (b) of Scction 2192, improvements
37 fundcd with moncys from thc fund shall have supplemental funding
38 that is at least equal to the amount of the contribution from the
39 fund. under this chapter The commission may give priority for
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AB 1 —52-
1 funding to projects with higher levels of committed supplemental
2 funding.
3 SEC. 30. Section 2192.4 is added to the Streets and Highways
4 Code, to read:
5 2192.4. The portion of the revenues in the Highway Users Tax
6 Account attributable to the increase in the diesel fuel excise tax
7 pursuant to subdivision (b) of Section 60050 of the Revenue and
8 Taxation Code, as adjusted pursuant to subdivision (c) of that
9 section, shall be transferred to the Trade Corridors Improvement
10 Fund.
11 SEC. 31. Section 9250.3 is added to the Vehicle Code, to read:
12 9250.3. (a) In addition to any other fees specified in this code
13 or the Revenue and Taxation Code, commencing July 1, 2017, a
14 registration fee of thirty-eight dollars ($38) shall be paid to the
15 department for registration or renewal of registration of every
16 vehicle subject to registration under this code, except those vehicles
17 that are expressly exempted under this code from payment of
18 registration fees.
19 (b) Beginning July 1, 2019, and every third year thereafter, the
20 Department of Motor Vehicles shall adjust the fee imposed under
21 this section for inflation in an amount equal to the change in the
22 California Consumer Price Index for the prior three-year period,
23 as calculated by the Department of Finance, with amounts equal
24 to or greater than fifty cents ($0.50) rounded to the next highest
25 whole dollar.
26 (c) Revenues from the fee, after the deduction of the
27 department's administrative costs related to this section, shall be
28 deposited in the Road Maintenance and Rehabilitation Account
29 created pursuant to Section 2031 of the Streets and Highways
30 Code.
31 SEC. 32. Section 9250.6 is added to the Vehicle Code, to read:
32 9250.6. (a) In addition to any other fees specified in this code,
33 or the Revenue and Taxation Code, commencing July 1, 2017, a
34 registration fee of one hundred and sixty-five dollars ($165) shall
35 be paid to the department for registration or renewal of registration
36 of every zero -emission motor vehicle subject to registration under
37 this code, except those motor vehicles that are expressly exempted
38 under this code from payment of registration fees.
39 (b) Beginning July 1, 2019, and every third year thereafter, the
40 Department of Motor Vehicles shall adjust the fee imposed under
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-53— AB 1
1 this section for inflation in an amount equal to the change in the
2 California Consumer Price Index for the prior three-year period,
3 as calculated by the Department of Finance, with amounts equal
4 to or greater than fifty cents ($0.50) rounded to the next highest
5 whole dollar.
6 (c) Revenues from the fee, after deduction of the department's
7 administrative costs related to this section, shall be deposited in
8 the Road Maintenance and Rehabilitation Account created pursuant
9 to Section 2031 of the Streets and Highways Code.
10 (d) This section does not apply to a commercial motor vehicle
11 subject to Section 9400.1 or to a low -speed vehicle, as defined in
12 Section 385.5.
13 (e) The registration fee required pursuant to this section does
14 not apply to the initial registration after the purchase of a new
15 zero -emission motor vehicle.
16 (f) For purposes of this section, "zero -emission motor vehicle"
17 means a motor vehicle as described in subdivisions (c) and (d) of
18 Section 44258 of the Health and Safety Code.
19 SEC. 33. Section 9400.5 is added to the Vehicle Code, to read:
20 9400.5. (a) Notwithstanding Sections 9400.1, 9400.4, and
21 42205 of this code, Sections 16773 and 16965 of the Government
22 Code, Section 2103 of the Streets and Highways Code, or any
23 other law, weight fee revenues shall only be transferred consistent
24 with the schedule provided in subdivision (b) from the State
25 Highway Account to the Transportation Debt Service Fund, the
26 Transportation Bond Direct Payment Account, or any other fund
27 or account for the purpose of payment of the debt service on
28 transportation general obligation bonds and shall not be loaned to
29 the General Fund.
30 (b) (1) The transfer of weight fee revenues, after deduction of
31 collection costs, from the State Highway Account pursuant to
32 subdivision (a) shall not exceed:
33 (A) Nine hundred million dollars ($900,000,000) in the 2017-18
34 fiscal year.
35 (B) Eight hundred million dollars ($800,000,000) in the 2018-19
36 fiscal year.
37 (C) Seven hundred million dollars ($700,000,000) in the
38 2019-20 fiscal year.
39 (D) Six hundred million dollars ($600,000,000) in the 2020-21
40 fiscal year.
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AB 1 —54-
1 (E) Five hundred million dollars ($500,000,000) in the 2021-22
2 fiscal year and in every fiscal year thereafter.
3 SEC. 34. This act is an urgency statute necessary for the
4 immediate preservation of the public peace, health, or safety within
5 the meaning of Article IV of the Constitution and shall go into
6 immediate effect. The facts constituting the necessity are:
7 In order to provide additional funding for road maintenance and
8 rehabilitation purposes as quickly as possible, it is necessary for
9 this act to take effect immediately.
0
99
SENATE BILL No. 1
Introduced by Senator Beall
(Coauthors: Senators Dodd, Hertzberg, Hill, McGuire, Mendoza,
Monning, Vidak, Wieckowski, and Wiener)
December 5, 2016
An act to amend Sections 13975, 14500, 14526.5, and 16965 of, to
add Sections 14033, 14110, 14526.7, and 16321 to, to add Part 5.1
(commencing with Section 14460) to Division 3 of Title 2 of, and to
repeal Section 14534.1 of, the Government Code, to amend Section
39719 of the Health and Safety Code, to amend Section 21080.37 of,
and to add Division 13.6 (commencing with Section 21200) to, the
Public Resources Code, to amend Section 99312.1 of the Public Utilities
Code, to amend Sections 6051.8, 6201.8, 7360, 8352.4, 8352.5, 8352.6,
and 60050 of the Revenue and Taxation Code, to amend Sections 183.1,
2192, and 2192.2 of, to add Sections 820.1, 2103.1 and 2192.4 to, and
to add Chapter 2 (commencing with Section 2030) to Division 3 of, the
Streets and Highways Code, and to add Sections 9250.3, 9250.6, and
9400.5 to the Vehicle Code, relating to transportation, making an
appropriation therefor, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 1, as introduced, Beall. Transportation funding.
(1) Existing law provides various sources of funding for transportation
purposes, including funding for the state highway system and the local
street and road system. These funding sources include, among others,
fuel excise taxes, commercial vehicle weight fees, local transactions
and use taxes, and federal funds. Existing law imposes certain
registration fees on vehicles, with revenues from these fees deposited
in the Motor Vehicle Account and used to fund the Department of Motor
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SB 1 —2—
Vehicles and the Department of the California Highway Patrol. Existing
law provides for the monthly transfer of excess balances in the Motor
Vehicle Account to the State Highway Account.
This bill would create the Road Maintenance and Rehabilitation
Program to address deferred maintenance on the state highway system
and the local street and road system. The bill would require the
California Transportation Commission to adopt performance criteria,
consistent with a specified asset management plan, to ensure efficient
use of certain funds available for the program. The bill would provide
for the deposit of various funds for the program in the Road Maintenance
and Rehabilitation Account, which the bill would create in the State
Transportation Fund, including revenues attributable to a $0.12 per
gallon increase, phased in over 3 years, in the motor vehicle fuel
(gasoline) tax imposed by the bill with an inflation adjustment, as
provided, an increase of $38 in the annual vehicle registration fee with
an inflation adjustment, as provided, a new $100 annual vehicle
registration fee with an inflation adjustment, as provided, applicable to
zero -emission motor vehicles, as defined, and certain miscellaneous
revenues described in (7) below that are not restricted as to expenditure
by Article XIX of the California Constitution.
This bill would annually set aside $200,000,000 of the funds available
for the program to fund road maintenance and rehabilitation purposes
in counties that have sought and received voter approval of taxes or
that have imposed fees, including uniform developer fees, as defined,
which taxes or fees are dedicated solely to transportation improvements.
These funds would be continuously appropriated for allocation pursuant
to guidelines to be developed by the California Transportation
Commission in consultation with local agencies. The bill would require
$80,000,000 of the funds available for the program to be annually
transferred to the State Highway Account for expenditure on the Active
Transportation Program. The bill would require $30,000,000 of the
funds available for the program in each of 4 fiscal years beginning in
2017-18 to be transferred to the Advance Mitigation Fund created by
the bill pursuant to (12) below. The bill would continuously appropriate
$2,000,000 annually of the funds available for the program to the
California State University for the purpose of conducting transportation
research and transportation -related workforce education, training, and
development. The bill would require the remaining funds available for
the program to be allocated 50% for maintenance of the state highway
system or to the state highway operation and protection program and
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-3— SB 1
50% to cities and counties pursuant to a specified formula. The bill
would impose various requirements on the department and agencies
receiving these funds. The bill would authorize a city or county to spend
its apportionment of funds under the program on transportation priorities
other than those allowable pursuant to the program if the city's or
county's average Pavement Condition Index meets or exceeds 80.
The bill would also require the department to annually identify savings
achieved through efficiencies implemented at the department and to
propose, from the identified savings, an appropriation to be included
in the annual Budget Act of up to $70,000,000 from the State Highway
Account for expenditure on the Active Transportation Program.
(2) Existing law establishes in state government the Transportation
Agency, which includes various departments and state entities, including
the California Transportation Commission. Existing law vests the
California Transportation Commission with specified powers, duties,
and functions relative to transportation matters. Existing law requires
the commission to retain independent authority to perform the duties
and functions prescribed to it under any provision of law.
This bill would exclude the California Transportation Commission
from the Transportation Agency, establish it as an entity in state
government, and require it to act in an independent oversight role. The
bill would also make conforming changes.
(3) Existing law creates various state agencies, including the
Department of Transportation, the High -Speed Rail Authority, the
Depai invent of the California Highway Patrol, the Department of Motor
Vehicles, and the State Air Resources Board, with specified powers
and duties. Existing law provides for the allocation of state transportation
funds to various transportation purposes.
This bill would create the Office of the Transportation Inspector
General in state government, as an independent office that would not
be a subdivision of any other government entity, to ensure that all of
the above -referenced state agencies and all other state agencies
expending state transportation funds are operating efficiently,
effectively, and in compliance with federal and state laws. The bill
would provide for the Governor to appoint the Transportation Inspector
General for a 6 -year term, subject to confirmation by the Senate, and
would provide that the Transportation Inspector General may not be
removed from office during the term except for good cause. The bill
would specify the duties and responsibilities of the Transportation
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SB 1 —4—
Inspector General and would require an annual report to the Legislature
and Governor.
This bill would require the department to update the Highway Design
Manual to incorporate the "complete streets" design concept by January
1, 2018. The bill would require the department to develop a plan by
January 1, 2020, to increase by 100% the dollar value of contracts
awarded to small businesses, disadvantaged business enterprises, and
disabled veteran business enterprises.
(4) Existing law provides for loans of revenues from various
transportation funds and accounts to the General Fund, with various
repayment dates specified.
This bill would require the Department of Finance, on or before March
1, 2017, to compute the amount of outstanding loans made from
specified transportation funds. The bill would require the Department
of Transportation to prepare a loan repayment schedule and would
require the outstanding loans to be repaid pursuant to that schedule, as
prescribed. The bill would appropriate funds for that purpose from the
Budget Stabilization Account. The bill would require the repaid funds
to be transferred, pursuant to a specified formula, to cities and counties
and to the department for maintenance of the state highway system and
for purposes of the state highway operation and protection program.
(5) The Highway Safety, Traffic Reduction, Air Quality, and Port
Security Bond Act of 2006 (Proposition 1B) created the Trade Corridors
Improvement Fund and provided for allocation by the California
Transportation Commission of $2 billion in bond funds for infrastructure
improvements on highway and rail corridors that have a high volume
of freight movement and for specified categories of projects eligible to
receive these funds. Existing law continues the Trade Corridors
Improvement Fund in existence in order to receive revenues from
sources other than the bond act for these purposes.
This bill would deposit the revenues attributable to a $0.20 per gallon
increase in the diesel fuel excise tax imposed by the bill into the Trade
Corridors Improvement Fund. The bill would require revenues
apportioned to the state from the national highway freight program
established by the federal Fixing America's Surface Transportation Act
to be allocated for trade corridor improvement projects approved
pursuant to these provisions.
Existing law requires the commission, in determining projects eligible
for funding, to consult various state freight and regional infrastructure
and goods movement plans and the statewide port master plan.
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This bill would revise the list of plans to be consulted by the
commission in prioritizing projects for funding. The bill would also
expand eligible projects to include, among others, rail landside access
improvements, landside freight access improvements to airports, and
certain capital and operational improvements. The bill would identify
specific amounts to be allocated from available federal funds to certain
categories of projects.
(6) Existing law requires all moneys, except for fines and penalties,
collected by the State Air Resources Board from the auction or sale of
allowances as part of a market-based compliance mechanism relative
to reduction of greenhouse gas emissions to be deposited in the
Greenhouse Gas Reduction Fund. Existing law continuously appropriates
10% of the annual proceeds of the fund to the Transit and Intercity Rail
Capital Program and 5% of the annual proceeds of the fund to the Low
Carbon Transit Operations Program.
This bill would, beginning in the 2017-18 fiscal year, instead
continuously appropriate 20% of those annual proceeds to the Transit
and Intercity Rail Capital Program and 10% of those annual proceeds
to the Low Carbon Transit Operations Program, thereby making an
appropriation.
(7) Article XIX of the California Constitution restricts the expenditure
of revenues from taxes imposed by the state on fuels used in motor
vehicles upon public streets and highways to street and highway and
certain mass transit purposes. Existing law requires certain
miscellaneous 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 requires the Controller
to transfer from the fund to the General Fund an amount of those
revenues necessary to offset the current year debt service made from
the General Fund on general obligation transportation bonds issued
pursuant to Proposition 116 of 1990.
This bill would delete the transfer of these miscellaneous revenues
to the Transportation Debt Service Fund, thereby eliminating the
offsetting transfer to the General Fund for debt service on general
obligation transportation bonds issued pursuant to Proposition 116 of
1990. The bill, subject to a specified exception, would instead require
the miscellaneous revenues to be retained in the State Highway Account
and to be deposited in the Road Maintenance and Rehabilitation
Account.
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SB 1 —6—
(8) Article XIX of the California Constitution requires gasoline excise
tax revenues from motor vehicles traveling upon public streets and
highways to be deposited in the Highway Users Tax Account, for
allocation to city, county, and state transportation purposes. Existing
law generally provides for statutory allocation of gasoline excise tax
revenues attributable to other modes of transportation, including
aviation, boats, agricultural vehicles, and off-highway vehicles, to
particular accounts and funds for expenditure on purposes associated
with those other modes, except that a specified portion of these gasoline
excise tax revenues is deposited in the General Fund. Expenditure of
the gasoline excise tax revenues attributable to those other modes is not
restricted by Article XIX of the California Constitution.
This bill, commencing July 1, 2017, would instead transfer to the
Highway Users Tax Account for allocation to state and local
transportation purposes under a specified formula the portion of gasoline
excise tax revenues currently being deposited in the General Fund that
are attributable to boats, agricultural vehicles, and off-highway vehicles.
Because that account is continuously appropriated, the bill would make
an appropriation. The bill, commencing July 1, 2017, would transfer,
to the Road Maintenance and Rehabilitation Account, the portion of
gasoline excise tax revenues attributable to these uses that would be
derived from increases in the gasoline excise tax rate described in (1)
above.
(9) Existing law, as of July 1, 2011, increases the sales and use tax
on diesel and decreases the excise tax, as provided. Existing law requires
the State Board of Equalization to annually modify both the gasoline
and diesel excise tax rates on a going -forward basis so that the various
changes in the taxes imposed on gasoline and diesel are revenue neutral.
This bill would eliminate the annual rate adjustment to maintain
revenue neutrality for the gasoline and diesel excise tax rates and would
reimpose the higher gasoline excise tax rate that was in effect on July
1, 2010, in addition to the increase in the rate described in (1) above.
Existing law, beyond the sales and use tax rate generally applicable,
imposes an additional sales and use tax on diesel fuel at the rate of
1.75%, subject to certain exemptions, and provides for the net revenues
collected from the additional tax to be transferred to the Public
Transportation Account. Existing law continuously appropriates these
and other revenues in the account to the Controller for allocation by
formula to transportation agencies for public transit purposes under the
State Transit Assistance Program. Existing law provides for
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-7— SB1
appropriation of other revenues in the account to the Department of
Transportation for various other transportation purposes, including
intercity rail purposes.
This bill would increase the additional sales and use tax rate on diesel
fuel by an additional 4%. The bill would restrict expenditures of
revenues attributable to the 3.5% rate increase to transit capital purposes
and certain transit services and would require a recipient transit agency
to comply with certain requirements, including submitting a list of
proposed projects to the Department of Transportation, as a condition
of receiving a portion of these funds under the State Transit Assistance
Program. The bill would require an existing required audit of transit
operator finances to verify that these new revenues have been expended
in conformance with these specific restrictions and all other generally
applicable requirements. By increasing the amount of revenues in the
Public Transportation Account that are continuously appropriated, the
bill would thereby make an appropriation. The bill would require the
revenues attributable to the remaining 0.5% rate increase to be allocated,
upon appropriation, to the department for intercity rail and commuter
rail purposes.
This bill would, beginning July 1, 2020, and every 3rd year thereafter,
require the State Board of Equalization to recompute the gasoline and
diesel excise tax rates and the additional sales and use tax rate on diesel
fuel based upon the percentage change in the California Consumer Price
Index transmitted to the board by the Department of Finance, as
prescribed.
(10) Existing law requires the Department of Transportation to
prepare a state highway operation and protection program every other
year for the expenditure of transportation capital improvement funds
for projects that are necessary to preserve and protect the state highway
system, excluding projects that add new traffic lanes. The program is
required to be based on an asset management plan, as specified. Existing
law requires the department to specify, for each project in the program
the capital and support budget and projected delivery date for various
components of the project. Existing law provides for the California
Transportation Commission to review and adopt the program, and
authorizes the commission to decline and adopt the program if it
determines that the program is not sufficiently consistent with the asset
management plan.
This bill would require the commission, as part of its review of the
program, to hold at least one hearing in northern California and one
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SB 1 —8—
hearing in southern California regarding the proposed program. The
bill would require the depat lnient to submit any change to a programmed
project as an amendment to the commission for its approval.
This bill, on and after August 1, 2017, would also require the
commission to make an allocation of all capital and support costs for
each project in the program, and would require the department to submit
a supplemental project allocation request to the commission for each
project that experiences cost increases above the amounts in its
allocation. The bill would require the commission to establish guidelines
to provide exceptions to the requirement for a supplemental project
allocation requirement that the commission determines are necessary
to ensure that projects are not unnecessarily delayed.
(11) 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, notwithstanding these provisions or any other law, would
only authorize specified percentages of weight fee revenues to be
transferred from the State Highway Account to the Transportation Debt
Service Fund, the Transportation Bond Direct Payment Account, or
any other fund or account for the purpose of payment of the debt service
on transportation general obligation bonds in accordance with a
prescribed schedule, with no more than 50% of weight fee revenues to
be used for debt service purposes beginning with the 2021-22 fiscal
year. The bill would require the California Transportation Commission,
by January 1, 2018, to recommend a course of action to the Legislature
and Governor that would retain the remaining 50% share of weight fee
revenues in the State Highway Account or provide for the transfer of
those revenues to the Road Maintenance and Rehabilitation Account.
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The bill would also prohibit loans of weight fee revenues to the General
Fund.
(12) The California Environmental Quality Act (CEQA) requires a
lead agency, as defined, to prepare, or cause to be prepared, and certify
the completion of, an environmental impact report on a project that it
proposes to carry out or approve that may have a significant effect on
the environment or to adopt a negative declaration if it finds that the
project will not have that effect. CEQA also requires a lead agency to
prepare a mitigated negative declaration for a project that may have a
significant effect on the environment if revisions in the project would
avoid or mitigate that effect and there is no substantial evidence that
the project, as revised, would have a significant effect on the
environment.
CEQA, until January 1, 2020, exempts a project or an activity to
repair, maintain, or make minor alterations to an existing roadway, as
defined, other than a state roadway, if the project or activity is carried
out by a city or county with a population of less than 100,000 persons
to improve public safety and meets other specified requirements.
This bill would extend the above -referenced exemption indefinitely
and delete the limitation of the exemption to projects or activities in
cities and counties with a population of less than 100,000 persons. The
bill would also expand the exemption to include state roadways.
This bill would also establish the Advance Mitigation Program in the
Department of Transportation. The bill would authorize the department
to undertake specified mitigation measures in advance of construction
of planned transportation improvements. The bill would require the
department to establish a steering committee to advise the department
on advance mitigation measures and related matters. The bill would
create the Advance Mitigation Fund as a continuously appropriated
revolving fund, to be funded initially from the Road Maintenance and
Rehabilitation Program pursuant to (1) above. The bill would provide
for reimbursement of the revolving fund at the time a planned
transportation improvement benefiting from advance mitigation is
constructed.
(13) Existing federal law requires the United States Secretary of
Transportation to carry out a surface transportation project delivery
program, under which the participating states assume certain
responsibilities for environmental review and clearance of transportation
projects that would otherwise be the responsibility of the federal
government. Existing law, until January 1, 2017, when these provisions
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SB1 —10—
are repealed, provides that the State of California consents to the
jurisdiction of the federal courts with regard to the compliance,
discharge, or enforcement of the responsibilities the Department of
Transportation assumed as a participant in this program.
This bill would reenact these provisions.
(14) This bill would provide that the fuel tax increases imposed by
the bill would be effective on July 1, 2017. The bill would provide that
the vehicle fee increases imposed by the bill would be effective on
October 1, 2017.
(15) This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State -mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. The Legislature finds and declares all of the
2 following:
3 (a) Over the next 10 years, the state faces a $59 billion shortfall
4 to adequately maintain the existing state highway system in order
5 to keep it in a basic state of good repair.
6 (b) Similarly, cities and counties face a $78 billion shortfall
7 over the next decade to adequately maintain the existing network
8 of local streets and roads.
9 (c) Statewide taxes and fees dedicated to the maintenance of
10 the system have not been increased in more than 20 years, with
11 those revenues losing more than 55 percent of their purchasing
12 power, while costs to maintain the system have steadily increased
13 and much of the underlying infrastructure has aged past its expected
14 useful life.
15 (d) California motorists are spending $17 billion annually in
16 extra maintenance and car repair bills, which is more than $700
17 per driver, due to the state's poorly maintained roads.
18 (e) Failing to act now to address this growing problem means
19 that more drastic measures will be required to maintain our system
20 in the future, essentially passing the burden on to future generations
21 instead of doing our job today.
22 (f) A funding program will help address a portion of the
23 maintenance backlog on the state's road system and will stop the
24 growth of the problem.
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1 (g) Modestly increasing various fees can spread the cost of road
2 repairs broadly to all users and beneficiaries of the road network
3 without overburdening any one group.
4 (h) Improving the condition of the state's road system will have
5 a positive impact on the economy as it lowers the transportation
6 costs of doing business, reduces congestion impacts for employees,
7 and protects property values in the state.
8 (i) The federal government estimates that increased spending
9 on infrastructure creates more than 13,000 jobs per $1 billion spent.
10 (j) Well-maintained roads benefit all users, not just drivers, as
11 roads are used for all modes of transport, whether motor vehicles,
12 transit, bicycles, or pedestrians.
13 (k) Well-maintained roads additionally provide significant health
14 benefits and prevent injuries and death due to crashes caused by
15 poorly maintained infrastructure.
16 (1) A comprehensive, reasonable transportation funding package
17 will do all of the following:
18 (1) Ensure these transportation needs are addressed.
19 (2) Fairly distribute the economic impact of increased funding.
20 (3) Restore the gas tax rate previously reduced by the State
21 Board of Equalization pursuant to the gas tax swap.
22 (4) Direct increased revenue to the state's highest transportation
23 needs.
24 SEC. 2. Section 13975 of the Government Code is amended
25 to read:
26 13975. There is in the state government the Transportation
27 Agency. The agency consists of the Department of the California
28 Highway Patrol, the California Transportation Commission, the
29 Department of Motor Vehicles, the Department of Transportation,
30 the High -Speed Rail Authority, and the Board of Pilot
31 Commissioners for the Bays of San Francisco, San Pablo, and
32 Suisun.
33 SEC. 3. Section 14033 is added to the Government Code, to
34 read:
35 14033. On or before January 1, 2018, the department shall
36 update the Highway Design Manual to incorporate the "complete
37 streets" design concept.
38 SEC. 4. Section 14110 is added to the Government Code, to
39 read:
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SB 1 —12-
1 14110. The department shall develop a plan by January 1, 2020,
2 to increase by 100 percent the dollar value of contracts awarded
3 to small businesses, disadvantaged business enterprises, and
4 disabled veteran business enterprises.
5 SEC. 5. Part 5.1 (commencing with Section 14460) is added
6 to Division 3 of Title 2 of the Government Code, to read:
7
8 PART 5.1. OFFICE OF THE TRANSPORTATION INSPECTOR
9 GENERAL
10
11 14460. (a) There is hereby created in state government the
12 independent Office of the Transportation Inspector General, which
13 shall not be a subdivision of any other governmental entity, to
14 ensure that the Department of Transportation, the High -Speed Rail
15 Authority, the Department of the California Highway Patrol, the
16 Department of Motor Vehicles, the State Air Resources Board,
17 and all other state agencies expending state transportation funds
18 are operating efficiently, effectively, and in compliance with
19 applicable federal and state laws.
20 (b) The Governor shall appoint, subject to confirmation by the
21 Senate, the Transportation Inspector General to a six-year term.
22 The Transportation Inspector General may not be removed from
23 office during that term, except for good cause. A finding of good
24 cause may include substantial neglect of duty, gross misconduct,
25 or conviction of a crime. The reasons for removal of the
26 Transportation Inspector General shall be stated in writing and
27 shall include the basis for removal. The writing shall be sent to
28 the Secretary of the Senate and the Chief Clerk of the Assembly
29 at the time of the removal and shall be deemed to be a public
30 document.
31 14461. The Transportation Inspector General shall review
32 policies, practices, and procedures and conduct audits and
33 investigations of activities involving state transportation funds in
34 consultation with all affected state agencies. Specifically, the
35 Transportation Inspector General's duties and responsibilities shall
36 include, but not be limited to, all of the following:
37 (a) To examine the operating practices of all state agencies
38 expending state transportation funds to identify fraud and waste,
39 opportunities for efficiencies, and opportunities to improve the
40 data used to determine appropriate project resource allocations.
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1 (b) To identify best practices in the delivery of transportation
2 projects and develop policies or recommend proposed legislation
3 enabling state agencies to adopt these practices when practicable.
4 (c) To provide objective analysis of and, when possible, offer
5 solutions to concerns raised by the public or generated within
6 agencies involving the state's transportation infrastructure and
7 project delivery methods.
8 (d) To conduct, supervise, and coordinate audits and
9 investigations relating to the programs and operations of all state
10 transportation agencies with state -funded transportation projects.
11 (e) To recommend policies promoting economy and efficiency
12 in the administration of programs and operations of all state
13 agencies with state -funded transportation projects.
14 (f) To ensure that the Secretary of Transportation and the
15 Legislature are fully and currently informed concerning fraud or
16 other serious abuses or deficiencies relating to the expenditure of
17 funds or administration of programs and operations.
18 14462. The Transportation Inspector General shall report at
19 least annually to the Governor and Legislature with a summary of
20 his or her findings, investigations, and audits. The summary shall
21 be posted on the Transportation Inspector General's Internet Web
22 site and shall otherwise be made available to the public upon its
23 release to the Governor and Legislature. The summary shall
24 include, but need not be limited to, significant problems discovered
25 by the Transportation Inspector General and whether
26 recommendations of the Transportation Inspector General relative
27 to investigations and audits have been implemented by the affected
28 agencies. The report shall be submitted to the Legislature in
29 compliance with Section 9795.
30 SEC. 6. Section 14500 of the Government Code is amended
31 to read:
32 14500. There is in the Transportation Agency state government
33 a California Transportation Commission. The commission shall
34 act in an independent oversight role.
35 SEC. 7. Section 14526.5 of the Government Code is amended
36 to read:
37 14526.5. (a) Based on the asset management plan prepared
38 and approved pursuant to Section 14526.4, the department shall
39 prepare a state highway operation and protection program for the
40 expenditure of transportation funds for major capital improvements
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SB 1 —14-
1 that are necessary to preserve and protect the state highway system.
2 Projects included in the program shall be limited to capital
3 improvements relative to the maintenance, safety, operation, and
4 rehabilitation of state highways and bridges that do not add a new
5 traffic lane to the system.
6 (b) The program shall include projects that are expected to be
7 advertised prior to July 1 of the year following submission of the
8 program, but which have not yet been funded. The program shall
9 include those projects for which construction is to begin within
10 four fiscal years, starting July 1 of the year following the year the
11 program is submitted.
12 (c) (1) The department, at a minimum, shall specify, for each
13 project in the state highway operation and protection program, the
14 capital and support budgct, as well as a projected delivery datc,
15 budget for each of the following project components:
16 (1) Completion of projcct
17 (A) Project approval and environmental documents.
18 (2) Prcparation of plans,
19 (B) Plans, specifications, and estimates.
20 (3) Acquisition of rights-of-way, including, but not limited to,
21 support activitics.
22 (C) Rights-of-way.
23 (D) Construction.
24 (2) The department shall specify, for each project in the state
25 highway operation and protection program, a projected delivery
26 date for each of the following components:
27 (A) Environmental document completion.
28 (B) Plans, specifications, and estimate completion.
29 (C) Right-of-way certification.
30 (4)
31 (D) Start of construction.
32 (d) The program shall be submitted department shall submit its
33 proposed program to the commission not later than January 31 of
34 each even -numbered year. Prior to submitting the plan, the its
35 proposed program, the department shall make a draft of its
36 proposed program available to transportation planning agencies
37 for review and comment and shall include the comments in its
38 submittal to the commission. The department shall provide the
39 commission with detailed information for all programmed projects,
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1 including, but not limited to, cost, scope, schedule, and
2 performance metrics as determined by the commission.
3 (e) The commission may shall review the proposed program
4 relative to its overall adequacy, consistency with the asset
5 management plan prepared and approved pursuant to Section
6 14526.4 and funding priorities established in Section 167 of the
7 Streets and Highways Code, the level of annual funding needed
8 to implement the program, and the impact of those expenditures
9 on the state transportation improvement program. The commission
10 shall adopt the program and submit it to the Legislature and the
11 Governor not later than April 1 of each even -numbered year. The
12 commission may decline to adopt the program if the commission
13 determines that the program is not sufficiently consistent with the
14 asset management plan prepared and approved pursuant to Section
15 14526.4.
16 (f) As part of the commission 's review of the program required
17 pursuant to subdivision (a), the commission shall hold at least one
18 hearing in northern California and one hearing in southern
19 California regarding the proposed program.
20 f3
21 (g) Expenditures for these projects shall not be subject to
22 Sections 188 and 188.8 of the Streets and Highways Code.
23 (h) Following adoption of the state highway operation and
24 protection program by the commission, any change to a
25 programmed project shall be submitted as an amendment by the
26 department to the commission for its approval before the change
27 may be implemented.
28 SEC. 8. Section 14526.7 is added to the Government Code, to
29 read:
30 14526.7. (a) On and after August 1, 2017, an allocation by the
31 commission of all capital and support costs for each project in the
32 state highway operation and protection program shall be required.
33 (b) For a project that experiences increases in capital or support
34 costs above the amounts in the commission's allocation pursuant
35 to subdivision (a), a supplemental project allocation request shall
36 be submitted by the department to the commission for approval.
37 (c) The commission shall establish guidelines to provide
38 exceptions to the requirement of subdivision (b) that the
39 commission determines are necessary to ensure that projects are
40 not unnecessarily delayed.
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SB 1 —16-
1 SEC. 9. Section 14534.1 of the Government Code is repealed.
2 14534.1. Notwithstanding Scction 12850.6 or subdivision (b)
3 of Scction 12800, as addcd to this codc by thc Governor's
4 Rcorganization Plan No. 2 of 2012 during thc 2011 12 Rcgular
5 Scssion, thc commission shall rctain indcpcndcnt authority to
6 perform thosc dutics and functions prcscribcd to it undcr any
7 provision of law.
8 SEC. 10. Section 16321 is added to the Government Code, to
9 read:
10 16321. (a) Notwithstanding any other law, on or before March
11 1, 2017, the Department of Finance shall compute the amount of
12 outstanding loans made from the State Highway Account, the
13 Motor Vehicle Fuel Account, the Highway Users Tax Account,
14 and the Motor Vehicle Account to the General Fund. The
15 department shall prepare a loan repayment schedule, pursuant to
16 which the outstanding loans shall be repaid, as follows:
17 (1) On or before December 31, 2017, 50 percent of the
18 outstanding loan amounts.
19 (2) On or before December 31, 2018, the remainder of the
20 outstanding loan amounts.
21 (b) Notwithstanding any other law, as the loans are repaid
22 pursuant to this section, the repaid funds shall be transferred in the
23 following manner:
24 (1) Fifty percent to cities and counties pursuant to clauses (i)
25 and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of
26 Section 2103 of the Streets and Highways Code.
27 (2) Fifty percent to the department for maintenance of the state
28 highway system and for purposes of the state highway operation
29 and protection program.
30 (c) Funds for loan repayments pursuant to this section are hereby
31 appropriated from the Budget Stabilization Account pursuant to
32 subclause (II) of clause (ii) of subparagraph (B) of paragraph (1)
33 of subdivision (c) of Section 20 of Article XVI of the California
34 Constitution.
35 SEC. 11. Section 16965 of the Government Code is amended
36 to read:
37 16965. (a) (1) The Transportation Debt Service Fund is hereby
38 created in the State Treasury. Moneys in the fund shall be dedicated
39 to all of the following purposes:
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1 (A) Payment of debt service with respect to designated bonds,
2 as defined in subdivision (c) of Section 16773, and as further
3 provided in paragraph (3) and subdivision (b).
4 (B) To reimburse the General Fund for debt service with respect
5 to bonds.
6 (C) To redeem or retire bonds, pursuant to Section 16774,
7 maturing in a subsequent fiscal year.
8 (2) The bonds eligible under subparagraph (B) or (C) of
9 paragraph (1) include bonds issued pursuant to the Clean Air and
10 Transportation Improvement Act of 1990 (Part 11.5 (commcncing
11 with Scction 99600) of Division 10 of the Public Utilities Codc),
12 the Passenger Rail and Clean Air Bond Act of 1990 (Chapter 17
13 (commencing with Section 2701) of Division 3 of the Streets and
14 Highways Code), the Seismic Retrofit Bond Act of 1996 (Chapter
15 12.48 (commencing with Section 8879) of Division 1 of Title 2),
16 and the Safe, Reliable High -Speed Passenger Train Bond Act for
17 the 21st Century (Chapter 20 (commencing with Section 2704) of
18 Division 3 of the Streets and Highways Code), and nondesignated
19 bonds under Proposition 1B, as defined in subdivision (c) of
20 Section 16773.
21 (3) (A) The Transportation Bond Direct Payment Account is
22 hereby created in the State Treasury, as a subaccount within the
23 Transportation Debt Service Fund, for the purpose of directly
24 paying the debt service, as defined in paragraph (4), of designated
25 bonds of Proposition 1B, as defined in subdivision (c) of Section
26 16773. Notwithstanding Section 13340, moneys in the
27 Transportation Bond Direct Payment Account are continuously
28 appropriated for payment of debt service with respect to designated
29 bonds as provided in subdivision (c) of Section 16773. So long as
30 any designated bonds remain outstanding, the moneys in the
31 Transportation Bond Direct Payment Account may not be used
32 for any other purpose, and may not be borrowed by or available
33 for transfer to the General Fund pursuant to Section 16310 or any
34 similar law, or to the General Cash Revolving Fund pursuant to
35 Section 16381 or any similar law.
36 (B) Once the Treasurer makes a certification that payment of
37 debt service with respect to all designated bonds has been paid or
38 provided for, any remaining moneys in the Transportation Bond
39 Direct Payment Account shall be transferred back to the
40 Transportation Debt Service Fund.
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SB 1 —18-
1 (C) The moneys in the Transportation Bond Direct Payment
2 Account shall be invested in the Surplus Money Investment Fund,
3 and all investment earnings shall accrue to the account.
4 (D) The Controller may establish subaccounts within the
5 Transportation Bond Direct Payment Account as may be required
6 by the resolution, indenture, or other documents governing any
7 designated bonds.
8 (4) For purposes of this subdivision and subdivision (b), and
9 subdivision (c) of Section 16773, "debt service" means payment
10 of all of the following costs and expenses with respect to any
11 designated bond:
12 (A) The principal of and interest on the bonds.
13 (B) Amounts payable as the result of tender on any bonds, as
14 described in clause (iv) of subparagraph (B) of paragraph (1) of
15 subdivision (d) of Section 16731.
16 (C) Amounts payable under any contractual obligation of the
17 state to repay advances and pay interest thereon under a credit
18 enhancement or liquidity agreement as described in clause (iv) of
19 subparagraph (B) of paragraph (1) of subdivision (d) of Section
20 16731.
21 (D) Any amount owed by the state to a counterparty after any
22 offset for payments owed to the state on any hedging contract as
23 described in subparagraph (A) of paragraph (2) of subdivision (d)
24 of Section 16731.
25 (b) From the moneys transferred to the fund pursuant to
26 paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
27 Vehicle Code, there shall first be deposited into the Transportation
28 Bond Direct Payment Account in each month sufficient funds to
29 equal the amount designated in a certificate submitted by the
30 Treasurer to the Controller and the Director of Finance at the start
31 of each fiscal year, and as may be modified by the Treasurer
32 thereafter upon issuance of any new issue of designated bonds or
33 upon change in circumstances that requires such a modification.
34 This certificate shall be calculated by the Treasurer to identify, for
35 each month, the amount necessary to fund all of the debt service
36 with respect to all designated bonds. This calculation shall be done
37 in a manner provided in the resolution, indenture, or other
38 documents governing the designated bonds. In the event that
39 transfers to the Transportation Bond Direct Payment Account in
40 any month are less than the amounts required in the Treasurer's
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1 certificate, the shortfall shall carry over to be part of the required
2 payment in the succeeding month or months.
3 (c) The state hereby covenants with the holders from time to
4 time of any designated bonds that it will not alter, amend, or restrict
5 the provisions of subdivision (c) of Section 16773 of the
6 Government Code, or Sections 9400, 9400.1, 9400.4, and 42205
7 of the Vehicle Code, which provide directly or indirectly for the
8 transfer of weight fees to the Transportation Debt Service Fund
9 or the Transportation Bond Direct Payment Account, or
10 subdivisions (a) and (b) of this section, or reduce the rate of
11 imposition of vehicle weight fees under Sections 9400 and 9400.1
12 of the Vehicle Code as they existed on the date of the first issuance
13 of any designated bonds, if that alteration, amendment, restriction,
14 or reduction would result in projected weight fees for the next
15 fiscal year determined by the Director of Finance being less than
16 two times the maximum annual debt service with respect to all
17 outstanding designated bonds, as such calculation is determined
18 pursuant to the resolution, indenture, or other documents governing
19 the designated bonds. The state may include this covenant in the
20 resolution, indenture, or other documents governing the designated
21 bonds.
22 (d) Once the required monthly deposit, including makeup of
23 any shortfalls from any prior month, has been made pursuant to
24 subdivision (b), from moneys transferred to the fund pursuant to
25 paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
26 Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the
27 Controller shall transfer as an expenditure reduction to the General
28 Fund any amount necessary to offset the cost of current year debt
29 service payments made from the General Fund with respect to any
30 bonds issued pursuant to Proposition 192 (1996) and three-quarters
31 of the amount of current year debt service payments made from
32 the General Fund with respect to any nondesignated bonds, as
33 defined in subdivision (c) of Section 16773, issued pursuant to
34 Proposition 1B (2006). In the alternative, these funds may also be
35 used to redeem or retire the applicable bonds, pursuant to Section
36 16774, maturing in a subsequent fiscal year as directed by the
37 Director of Finance.
38 (c) From moneys transfcrrcd to thc fund pursuant to Scction
39 183.1 of thc Streets and Ilighways Code, thc Controllcr shall
40 transfcr as an cxpcnditurc rcduction to thc Gcncral Fund any
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SB 1 —20-
1 amount ncccssary to offset thc cost of current ycar dcbt service
2 payments madc from thc General Fund with respect to any bonds
3 issued pursuant to Proposition 116 (1990). In the alternative, these
4 funds may also be used to rcdccm or rctirc thc applicable bonds,
5 pursuant to Scction 16774, maturing in a subsequent fiscal ycar
6 as dircctcd by thc Director of Financc.
7 (e
8 (e) Once the required monthly deposit, including makeup of
9 any shortfalls from any prior month, has been made pursuant to
10 subdivision (b), from moneys transferred to the fund pursuant to
11 paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
12 Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the
13 Controller shall transfer as an expenditure reduction to the General
14 Fund any amount necessary to offset the eligible cost of current
15 year debt service payments made from the General Fund with
16 respect to any bonds issued pursuant to Proposition 108 (1990)
17 and Proposition 1A (2008), and one-quarter of the amount of
18 current year debt service payments made from the General Fund
19 with respect to any nondesignated bonds, as defined in subdivision
20 (c) of Section 16773, issued pursuant to Proposition 1B (2006).
21 The Department of Finance shall notify the Controller by July 30
22 of every year of the percentage of debt service that is expected to
23 be paid in that fiscal year with respect to bond -funded projects that
24 qualify as eligible guideway projects consistent with the
25 requirements applicable to the expenditure of revenues under
26 Article XIX of the California Constitution, and the Controller shall
27 make payments only for those eligible projects. In the alternative,
28 these funds may also be used to redeem or retire the applicable
29 bonds, pursuant to Section 16774, maturing in a subsequent fiscal
30 year as directed by the Director of Finance.
31 (g)
32 () On or before the second business day following the date on
33 which transfers are made to the Transportation Debt Service Fund,
34 and after the required monthly deposits for that month, including
35 makeup of any shortfalls from any prior month, have been made
36 to the Transportation Bond Direct Payment Account, the Controller
37 shall transfer the funds designated for reimbursement of bond debt
38 service with respect to nondesignated bonds, as defined in
39 subdivision (c) of Section 16773, and other bonds identified in
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1 subdivisions (d), (c), and (f) (d) and (e) in that month from the
2 fund to the General Fund pursuant to this section.
3 SEC. 12. Section 39719 of the Health and Safety Code is
4 amended to read:
5 39719. (a) The Legislature shall appropriate the annual
6 proceeds of the fund for the purpose of reducing greenhouse gas
7 emissions in this state in accordance with the requirements of
8 Section 39712.
9 (b) To carry out a portion of the requirements of subdivision
10 (a), annual proceeds are continuously appropriated for the
11 following:
12 (1) Beginning in the 2015-16 2017-18 fiscal year, and
13 notwithstanding Section 13340 of the Government Code, 35 50
14 percent of annual proceeds are continuously appropriated, without
15 regard to fiscal years, for transit, affordable housing, and
16 sustainable communities programs as following: follows:
17 (A) Tcn Twenty percent of the annual proceeds of the fund is
18 hereby continuously appropriated to the Transportation Agency
19 for the Transit and Intercity Rail Capital Program created by Part
20 2 (commencing with Section 75220) of Division 44 of the Public
21 Resources Code.
22 (B) F4ife-Ten percent of the annual proceeds of the fund is hereby
23 continuously appropriated to the Low Carbon Transit Operations
24 Program created by Part 3 (commencing with Section 75230) of
25 Division 44 of the Public Resources Code. Funds Moneys shall be
26 allocated by the Controller, according to requirements of the
27 program, and pursuant to the distribution formula in subdivision
28 (b) or (c) of Section 99312 of, and Sections 99313 and 99314 of,
29 the Public Utilities Code.
30 (C) Twenty percent of the annual proceeds of the fund is hereby
31 continuously appropriated to the Strategic Growth Council for the
32 Affordable Housing and Sustainable Communities Program created
33 by Part 1 (commencing with Section 75200) of Division 44 of the
34 Public Resources Code. Of the amount appropriated in this
35 subparagraph, no less than 10 percent of the annual procccds,
36 proceeds shall be expended for affordable housing, consistent with
37 the provisions of that program.
38 (2) Beginning in the 2015-16 fiscal year, notwithstanding
39 Section 13340 of the Government Code, 25 percent of the annual
40 proceeds of the fund is hereby continuously appropriated to the
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SB 1 —22-
1 High -Speed Rail Authority for the following components of the
2 initial operating segment and Phase I Blended System as described
3 in the 2012 business plan adopted pursuant to Section 185033 of
4 the Public Utilities Code:
5 (A) Acquisition and construction costs of the project.
6 (B) Environmental review and design costs of the project.
7 (C) Other capital costs of the project.
8 (D) Repayment of any loans made to the authority to fund the
9 project.
10 (c) In determining the amount of annual proceeds of the fund
11 for purposes of the calculation in subdivision (b), the funds subject
12 to Section 39719.1 shall not be included.
13 SEC. 13. Section 21080.37 of the Public Resources Code is
14 amended to read:
15 21080.37. (a) This division does not apply to a project or an
16 activity to repair, maintain, or make minor alterations to an existing
17 roadway if all of the following conditions are met:
18 (1) Thc projcct is carricd out by a city or county with a
19 population of lcss than 100,000 persons to improvc public safcty.
20 (2)
21 (1) (A) The project does not cross a waterway.
22 (B) For purposes of this paragraph, "waterway" means a bay,
23 estuary, lake, pond, river, slough, or a perennial, intermittent, or
24 ephemeral stream, lake, or estuarine -marine shoreline.
25 (3)
26 (2) The project involves negligible or no expansion of an
27 existing use beyond that existing at the time of the lead agency's
28 determination.
29 (4) Thc roadway is not a statc roadway.
30 (5)
31 (3) (A) The site of the project does not contain wetlands or
32 riparian areas and does not have significant value as a wildlife
33 habitat, and the project does not harm any species protected by the
34 federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et
35 seq.), the Native Plant Protection Act (Chapter 10 (commencing
36 with Section 1900) of Division 2 of the Fish and Game Code), or
37 the California Endangered Species Act (Chapter 1.5 (commencing
38 with Section 2050) of Division 3 of the Fish and Game Code), and
39 the project does not cause the destruction or removal of any species
40 protected by a local ordinance.
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1 (B) For the purposes of this paragraph:
2 (i) "Riparian areas" mean those areas transitional between
3 terrestrial and aquatic ecosystems and that are distinguished by
4 gradients in biophysical conditions, ecological processes, and biota.
5 A riparian area is an area through which surface and subsurface
6 hydrology connect waterbodies with their adjacent uplands. A
7 riparian area includes those portions of terrestrial ecosystems that
8 significantly influence exchanges of energy and matter with aquatic
9 ecosystems. A riparian area is adjacent to perennial, intermittent,
10 and ephemeral streams, lakes, and estuarine -marine shorelines.
11 (ii) "Significant value as a wildlife habitat" includes wildlife
12 habitat of national, statewide, regional, or local importance; habitat
13 for species protected by the federal Endangered Species Act of
14 1973 (16 U.S.C. Sec. 1531, 1531 et seq.), the California
15 Endangered Species Act (Chapter 1.5 (commencing with Section
16 2050) of Division 3 of the Fish and Game Code), or the Native
17 Plant Protection Act (Chapter 10 (commencing with Section 1900)
18 of Division 2 of the Fish and Game Code); habitat identified as
19 candidate, fully protected, sensitive, or species of special status
20 by local, state, or federal agencies; or habitat essential to the
21 movement of resident or migratory wildlife.
22 (iii) "Wetlands" has the same meaning as in the United States
23 Fish and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993).
24 (iv) "Wildlife habitat" means the ecological communities upon
25 which wild animals, birds, plants, fish, amphibians, and
26 invertebrates depend for their conservation and protection.
27 (6)
28 (4) The project does not impact cultural resources.
29 (7)
30 (5) The roadway does not affect scenic resources, as provided
31 pursuant to subdivision (c) of Section 21084.
32 (b) Prior to determining that a project is exempt pursuant to this
33 section, the lead agency shall do both of the following:
34 (1) Include measures in the project to mitigate potential
35 vehicular traffic and safety impacts and bicycle and pedestrian
36 safety impacts.
37 (2) Hold a noticed public hearing on the project to hear and
38 respond to public comments. The hearing on the project may be
39 conducted with another noticed lead agency public hearing.
40 Publication of the notice shall be no fewer times than required by
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SB 1 —24-
1 Section 6061 of the Government Code, by the public agency in a
2 newspaper of general circulation in the area.
3 (c) For purposes of this section, "roadway" means a roadway
4 as defined pursuant to Section 530 of the Vehicle Code and the
5 previously graded and maintained shoulder that is within a roadway
6 right-of-way of no more than five feet from the edge of the
7 roadway.
8 (d) (1) If a state agency determines that a project is not subject
9 to this division pursuant to this section and it approves or
10 determines to carry out that project, it shall file a notice with the
11 Office of Planning and Research in the manner specified in
12 subdivisions (b) and (c) of Section 21108.
13 (d) Whenever
14 (2) If a local agency determines that a project is not subject to
15 this division pursuant to this scction, section and it approves or
16 determines to carry out that project, the local agcncy it shall file
17 a notice with the Office of Planning and Research, and with the
18 county clerk in the county in which the project will be located in
19 the manner specified in subdivisions (b) and (c) of Section 21152.
20 (c) This scction shall rcmain in effect only until January 1, 2020,
21 and as of that date is repealed, unless a later enacted statute, that
22 is enacted before January 1, 2020, deletes or extends that datc.
23 SEC. 14. Division 13.6 (commencing with Section 21200) is
24 added to the Public Resources Code, to read:
25
26 DIVISION 13.6. ADVANCE MITIGATION PROGRAM ACT
27
28 CHAPTER 1. GENERAL
29
30 21200. This division shall be known, and may be cited, as the
31 Advance Mitigation Program Act.
32 21201. (a) The purpose of this division is to improve the
33 success and effectiveness of actions implemented to mitigate the
34 natural resource impacts of future transportation improvements
35 by designing those actions to measurably advance regional or
36 statewide conservation priorities and by establishing the means to
37 implement the actions well before the impacts occur. The advance
38 design and implementation of mitigation actions also will
39 streamline the delivery of transportation improvements by avoiding
40 or reducing delays associated with environmental permitting.
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1 (b) This division is not intended to create a new environmental
2 permitting or regulatory program or to modify existing
3 environmental laws or regulations, nor is it expected that all
4 mitigation requirements will be addressed for planned
5 transportation improvements. Instead, it is intended to provide a
6 methodology with which to fulfill the requirements of existing
7 state and federal environmental laws that protect fish, wildlife,
8 plant species, and other natural resources more efficiently and
9 effectively.
10 21202. The Legislature finds and declares all of the following:
11 (a) Compensatory mitigation for environmental impacts is
12 ordinarily handled on a project -by -project basis, usually near the
13 end of a project's timeline and often with insufficient guidance
14 regarding regional or statewide conservation priorities.
15 (b) The cost of critical transportation improvements often
16 escalates because of permitting delays that occur when appropriate
17 conservation and mitigation measures cannot easily be identified
18 and because the cost of these measures often increases between
19 the time a project is planned and funded and the time mitigation
20 is implemented.
21 (c) When the Department of Transportation is able to anticipate
22 the compensatory mitigation needs for planned transportation
23 improvements, it can meet those needs in a more timely and
24 cost-effective way by using advance mitigation planning.
25 (d) Working with state and federal resource protection agencies,
26 the department can generate and pool a range of mitigation credits
27 for use for transportation improvements, taking advantage of
28 greater economies of scale and allowing public funds to stretch
29 further. By making those mitigation credits available in advance
30 of environmental impacts and project permitting, transportation
31 agencies can avoid permitting delays that result from
32 project -by -project identification and development of mitigation
33 measures.
34 (e) Advance mitigation can provide an effective means of
35 facilitating delivery of transportation improvements while ensuring
36 more effective natural resource conservation.
37 (f) Advance mitigation is needed to direct mitigation funding
38 for transportation improvements to agreed-upon conservation
39 priorities and to the creation of habitat reserves and recreation
40 areas that enhance the sustainability of human and natural systems
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SB 1 —26-
1 by protecting or restoring connectivity of natural communities and
2 the delivery of ecosystem services.
3 (g) Advance mitigation can facilitate the implementation of
4 climate change adaptation strategies both for ecosystems and
5 California's economy.
6 (h) Advance mitigation can enable the state to protect, restore,
7 and recover its natural resources as it strengthens and improves
8 its transportation systems.
9 21203. The Legislature intends to do all of the following by
10 enacting this division:
11 (a) Facilitate delivery of transportation improvements while
12 ensuring more effective natural resource conservation.
13 (b) Develop effective strategies to improve the state's ability to
14 meet mounting demands for transportation improvements and to
15 maximize conservation and other public benefits.
16 (c) Achieve conservation objectives of statewide and regional
17 importance by coordinating local, state, and federally funded
18 natural resource conservation efforts with mitigation actions
19 required for impacts from transportation improvements.
20 (d) Create administrative, governance, and financial incentives
21 and mechanisms necessary to ensure that measures required to
22 minimize or mitigate impacts from transportation improvements
23 will serve to achieve regional or statewide natural resource
24 conservation objectives.
25
26 CHAPTER 2. DEFINITIONS
27
28 21204. For purposes of this division, the following terms have
29 the following meanings:
30 (a) "Acquire" and "acquisition" mean, with respect to land or
31 a waterway, acquisition of fee title or purchase of a conservation
32 easement, that protects conservation and mitigation values on the
33 land or waterway in perpetuity.
34 (b) "Advance mitigation" means mitigation implemented before,
35 and in anticipation of, environmental effects of planned
36 transportation improvements.
37 (c) "Commission" means the California Transportation
38 Commission.
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1 (d) "Conservation easement" means a perpetual conservation
2 easement that complies with Chapter 4 (commencing with Section
3 815) of Title 2 of Part 2 of Division 2 of the Civil Code.
4 (e) "Department" means the Department of Transportation.
5 (f) "Mitigation credit agreement" means a mitigation credit
6 agreement pursuant to Chapter 9 (commencing with Section 1850)
7 of Division 2 of the Fish and Game Code.
8 (g) "Transportation agency" means the department, the
9 High -Speed Rail Authority, a metropolitan planning organization,
10 a regional transportation planning agency, or another public agency
11 that implements transportation improvements.
12 (h) "Transportation improvement" means a transportation capital
13 improvement project.
14 (i) "Planned transportation improvement" means a transportation
15 project that a transportation agency has identified in a regional
16 transportation plan, an interregional transportation plan, a capital
17 improvement program, or other approved transportation planning
18 document. A planned transportation improvement may include,
19 but is not limited to, a transportation project that has been proposed
20 for approval or that has been approved.
21 (j) "Program" means the Advance Mitigation Program
22 implemented pursuant to this division.
23 (k) "Regional conservation investment strategy" means a
24 regional conservation investment strategy pursuant to Chapter 9
25 (commencing with Section 1850) of Division 2 of the Fish and
26 Game Code.
27 (1) "Regulatory agency" means a state or federal natural resource
28 protection agency with regulatory authority over planned
29 transportation improvements. A regulatory agency includes, but
30 is not limited to, the Natural Resources Agency, the Department
31 of Fish and Wildlife, California regional water quality control
32 boards, the United States Fish and Wildlife Service, the National
33 Marine Fisheries Service, the United States Environmental
34 Protection Agency, and the United States Army Corps of
35 Engineers.
36
37 CHAPTER 3. ADVANCE MITIGATION PROGRAM
38
39 21205. (a) The Advance Mitigation Program is hereby created
40 in the department to accelerate project delivery and improve
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SB 1 —28-
1 environmental outcomes of environmental mitigation for planned
2 transportation improvements. The department may do any of the
3 following to administer and implement the program:
4 (1) Purchase credits at mitigation banks and conservation banks
5 approved by one or more regulatory agencies. The department
6 may also establish mitigation banks or conservation banks, or fund
7 the establishment of mitigation banks or conservation banks, in
8 accordance with applicable state and federal standards if the
9 department determines that those banks would provide biologically
10 appropriate mitigation for planned transportation improvements
11 identified pursuant to Section 21207.
12 (2) Pay mitigation fees under natural community conservation
13 plans approved pursuant to Chapter 10 (commencing with Section
14 2800) of Division 3 of the Fish and Game Code, or habitat
15 conservation plans approved in accordance with the federal
16 Endangered Species Act.
17 (3) Prepare, or fund the preparation of, regional conservation
18 investment strategies. Where a regional conservation framework
19 has been approved by the Department of Fish and Wildlife, the
20 department may do the following:
21 (A) Enter into a mitigation credit agreement with the Department
22 of Fish and Wildlife, and acquire, restore, manage, monitor, protect,
23 and preserve lands , waterways, aquatic resources or fisheries, or
24 fund the acquisition, restoration, management, monitoring,
25 protection, and preservation of lands, waterways, aquatic resources,
26 or fisheries, as needed to generate mitigation credits pursuant to
27 those mitigation credit agreements.
28 (B) Acquire, restore, manage, monitor, and preserve lands,
29 waterways, aquatic resources, or fisheries, or fund the acquisition,
30 restoration, management, monitoring, and preservation of lands,
31 waterways, aquatic resources, or fisheries that would measurably
32 advance a conservation objective in the regional conservation
33 investment strategy if the department concludes that the action or
34 actions could conserve or create environmental values that are
35 appropriate to mitigate the anticipated potential impacts of planned
36 transportation improvements.
37 (4) Prepare, or fund the preparation of, regional advance
38 mitigation plans within the area of any regional conservation
39 investment strategy that has been approved by the Department of
40 Fish and Wildlife. The purpose of a regional advance mitigation
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-29— SB 1
1 plan shall be to identify potential mitigation needs for planned
2 transportation improvements, to facilitate the acquisition or
3 generation of mitigation credits and values that could be used to
4 fulfill those needs and thereby to avoid delays in the environmental
5 permitting of those transportation improvements. A regional
6 advance mitigation plan shall do all of the following:
7 (A) Use the information and analysis in the regional
8 conservation investment strategy to estimate the nature and extent
9 of potential mitigation requirements of planned transportation
10 improvements on a regional or statewide basis.
11 (B) Consider the full range of potential impacts on natural
12 resources of planned transportation improvements.
13 (C) Identify available mitigation credits at mitigation banks or
14 conservation banks approved by one or more regulatory agencies
15 that could be used to mitigate the impacts of planned transportation
16 improvements.
17 (D) Assess whether, and to what extent, mitigation requirements
18 for planned transportation improvements could be fulfilled by the
19 payment of mitigation fees under approved natural community
20 conservation plans and habitat conservation plans.
21 (E) Assess whether, and to what extent, mitigation requirements
22 for planned transportation improvements could be fulfilled by
23 mitigation credits created under a mitigation credit agreement.
24 (F) Assess whether conservation actions or habitat enhancements
25 that would measurably advance an unmet conservation objective
26 in the regional conservation investment strategy could conserve
27 or create environmental values that are appropriate to mitigate the
28 anticipated potential impacts of planned transportation
29 improvements and could fulfill mitigation requirements resulting
30 from those impacts.
31 (G) Analyze the cost-effectiveness of available mitigation
32 alternatives both in terms of environmental benefits and improved
33 project delivery and certainty.
34 (b) The department shall track all advance mitigation actions
35 implemented and all mitigation credits generated under the program
36 for environmental mitigation for transportation improvements.
37 (c) The department may use mitigation credits to fulfill
38 mitigation requirements of a transportation improvement eligible
39 for the State Transportation Improvement Program or the State
40 Highway Operation and Protection Program.
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SB 1 —30-
1 (d) The department may use, or allow local or state
2 transportation agencies to use, mitigation credits or values
3 generated or obtained under the program to fulfill the mitigation
4 requirements of planned transportation improvements if the
5 applicable transportation agency reimburses the program for all
6 costs of purchasing or creating the mitigation credits or values, as
7 determined by the department. Those costs shall be calculated
8 using total cost accounting and shall include, as applicable, land
9 acquisition or conservation easement costs, monitoring and
10 enforcement costs, restoration costs, transaction costs,
11 administrative costs, contingency costs, and land management,
12 monitoring, and protection costs.
13 21206. No later than February 1, 2017, the department shall
14 establish an interagency transportation advance mitigation steering
15 committee consisting of the department and appropriate state and
16 federal regulatory agencies to support the program so that advance
17 mitigation can be used as required mitigation for planned
18 transportation improvements and can provide improved
19 environmental outcomes. The committee shall advise the
20 department of opportunities to carry out advance mitigation
21 improvements, provide the best available science, and actively
22 participate in mitigation instrument reviews and approvals. The
23 committee shall seek to develop streamlining opportunities,
24 including those related to landscape scale mitigation planning and
25 alignment of federal and state regulations and procedures related
26 to mitigation requirements and implementation. The committee
27 shall also provide input on crediting, using, and tracking of advance
28 mitigation investments.
29 21207. The Advance Mitigation Fund is hereby created in the
30 State Transportation Fund as a revolving fund. Notwithstanding
31 Section 13340 of the Government Code, the fund shall be
32 continuously appropriated without regard to fiscal years. The
33 moneys in the fund shall be programmed by the commission for
34 the planning and implementation of advance mitigation
35 improvements consistent with the purposes of this chapter. After
36 the transfer of moneys to the fund for four fiscal years pursuant to
37 subdivision (c) of Section 2032 of the Streets and Highways Code,
38 commencing in the 2017-18 fiscal year, the program is intended
39 to be self-sustaining. Advance expenditures from the fund shall
40 later be reimbursed from project funding available at the time a
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1 planned transportation improvement is constructed. A maximum
2 of 5 percent of available funds may be used for administrative
3 purposes.
4 21208. The program is intended to improve the efficiency and
5 efficacy of mitigation only and is not intended to supplant the
6 requirements of the California Environmental Quality Act (Division
7 13 (commencing with Section 21000)) or any other environmental
8 law. The identification of planned transportation improvements
9 and of mitigation improvements or measures for planned
10 transportation improvements under this division does not imply
11 or require approval of those improvements for purposes of the
12 California Environmental Quality Act (Division 13 (commencing
13 with Section 21000)) or any other environmental law.
14 SEC. 15. Section 99312.1 of the Public Utilities Code is
15 amended to read:
16 99312.1. (a) Revenues transferred to the Public Transportation
17 Account pursuant to Sections 6051.8 and 6201.8 of the Revenue
18 and Taxation Code for the State Transit Assistance Program are
19 hereby continuously appropriated to the Controller for allocation
20 as follows:
21 {a)
22 (1) Fifty percent for allocation to transportation planning
23 agencies, county transportation commissions, and the San Diego
24 Metropolitan Transit Development Board pursuant to Section
25 99314.
26 (b)
27 (2) Fifty percent for allocation to transportation agencies, county
28 transportation commissions, and the San Diego Metropolitan
29 Transit Development Board for purposes of Section 99313.
30 For
31 (b) For purposes of this chapter, the revenues allocated pursuant
32 to this section shall be subject to the same requirements as revenues
33 allocated pursuant to subdivisions (b) and (c), as applicable, of
34 Section 99312.
35 (c) The revenues transferred to the Public Transportation
36 Account for the State Transit Assistance Program that are
37 attributable to the increase in the sales and use tax on diesel fuel
38 pursuant to subdivision (b) of Section 6051.8 of the Revenue and
39 Taxation Code, as adjusted pursuant to subdivision (c) of that
40 section, and subdivision (b) of Section 6201.8 of the Revenue and
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SB 1 —32-
1 Taxation Code, as adjusted pursuant to subdivision (c) of that
2 section, upon allocation pursuant to Sections 99313 and 99314,
3 shall only be expended on the following:
4 (1) Transit capital projects or services to maintain or repair a
5 transit operator's existing transit vehicle fleet or existing transit
6 facilities, including rehabilitation or modernization of existing
7 vehicles or facilities.
8 (2) The design, acquisition, and construction of new vehicles
9 or facilities that improve existing transit services.
10 (3) Transit services that complement local efforts for repair and
11 improvement of local transportation infrastructure.
12 (d) (1) Prior to receiving an apportionment offunds pursuant
13 to subdivision (c) from the Controller in a fiscal year, a recipient
14 transit agency shall submit to the Department of Transportation
15 a list of projects proposed to be funded with these funds. The list
16 of projects proposed to be funded with these funds shall include
17 a description and location of each proposed project, a proposed
18 schedule for the project's completion, and the estimated useful life
19 of the improvement. The project list shall not limit the flexibility
20 of a recipient transit agency to fund projects in accordance with
21 local needs and priorities so long as the projects are consistent
22 with subdivision (c).
23 (2) The department shall report to the Controller the recipient
24 transit agencies that have submitted a list of projects as described
25 in this subdivision and that are therefore eligible to receive an
26 apportionment of funds for the applicable fiscal year The
27 Controller, upon receipt of the report, shall apportion funds
28 pursuant to Sections 99313 and 99314.
29 (e) For each fiscal year each recipient transit agency receiving
30 an apportionment offunds pursuant to subdivision (c) shall, upon
31 expending those funds, submit documentation to the department
32 that includes a description and location of each completed project,
33 the amount offunds expended on the project, the completion date,
34 and the estimated useful life of the improvement.
35 (f) The audit of transit operator finances required pursuant to
36 Section 99245 shall verify that the revenues identified in
37 subdivision (c) have been expended in conformance with these
38 specific requirements and all other generally applicable
39 requirements.
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1 SEC. 16. Section 6051.8 of the Revenue and Taxation Code
2 is amended to read:
3 6051.8. (a) Except as provided by Section 6357.3, in addition
4 to the taxes imposed by this part, for the privilege of selling
5 tangible personal property at retail a tax is hereby imposed upon
6 all retailers at the rate of 1.75 percent of the gross receipts of any
7 retailer from the sale of all diesel furl, as defined in Scction 60022,
8 sold at retail in this statc on and aftcr thc operative datc of this
9 sttbdivision7fuel.
10 (b) Notwithstanding subdivision (a), for thc 2011 12 fiscal ycar
11 only, thc ratc rcfcrcnccd in subdivision (a) shall bc 1.87 perccnt.
12 (c) Notwithstanding subdivision (a), for the 2012-13 fiscal ycar
13 only, thc ratc rcfcrcnccd in subdivision (a) shall bc 2.17 perccnt.
14 (d) Notwithstanding subdivision (a), for thc 2013-14 fiscal ycar
15 only, the ratc rcfcrcnccd in subdivision (a) shall be 1.94 perccnt.
16 (b) Except as provided by Section 6357.3, in addition to the
17 taxes imposed by this part and by subdivision (a), for the privilege
18 of selling tangible personal property at retail a tax is hereby
19 imposed upon all retailers at the rate of 4 percent of the gross
20 receipts of any retailer from the sale of all diesel fuel, as defined
21 in Section 60022, sold at retail in this state.
22 (c) Beginning July 1, 2020, and every third year thereafter the
23 State Board of Equalization shall recompute the rates of the taxes
24 imposed by this section. That computation shall be made as
25 follows:
26 (1) The Department of Finance shall transmit to the State Board
27 of Equalization the percentage change in the California Consumer
28 Price Index for all items from November of three calendar years
29 prior to November of the prior calendar year, no later than January
30 31, 2020, and January 31 of every third year thereafter
31 (2) The State Board of Equalization shall do all of the following::
32 (A) Compute an inflation adjustment factor by adding 100
33 percent to the percentage change figure that is furnished pursuant
34 to paragraph (1) and dividing the result by 100.
35 (B) Multiply the preceding tax rate per gallon by the inflation
36 adjustment factor determined in subparagraph (A) and round off
37 the resulting product to the nearest tenth of a cent.
38 (C) Make its determination of the new rate no later than March
39 1 of the same year as the effective date of the new rate.
40 (e)
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SB 1 —34-
1 (d) (1) Notwithstanding subdivision (b) of Section 7102, except
2 as otherwise provided in paragraph (2), all of the revenues, less
3 refunds, collected pursuant to this section shall be estimated by
4 the State Board of Equalization, with the concurrence of the
5 Department of Finance, and transferred quarterly to the Public
6 Transportation Account in the State Transportation Fund for
7 allocation under the State Transit Assistance Program pursuant
8 to Section 99312.1 of the Public Utilities Code.
9 (2) The revenues, less refunds, attributable to a rate of 0.5
10 percent of the 4 -percent increase in the rate pursuant to subdivision
11 (b), amounting to one-eighth of revenues from the increase in the
12 rate under that subdivision, shall be estimated by the State Board
13 of Equalization, with the concurrence of the Department of
14 Finance, and transferred quarterly to the Public Transportation
15 Account in the State Transportation Fund for allocation to the
16 Department of Transportation, upon appropriation by the
17 Legislature, to intercity rail and commuter rail purposes pursuant
18 to Section 99315 of the Public Utilities Code.
19 (f) Subdivisions (a) to (c), inclusive, shall bccomc operativc on
20 July 1, 2011.
21 SEC. 17. Section 6201.8 of the Revenue and Taxation Code
22 is amended to read:
23 6201.8. (a) Except as provided by Section 6357.3, in addition
24 to the taxes imposed by this part, an excise tax is hereby imposed
25 on the storage, use, or other consumption in this state of diesel
26 fuel, as defined in Section 60022, at the rate of 1.75 percent of the
27 sales price of the diesel furl on and aftcr the operativc datc of this
28 subdivision. fuel.
29 (b) Notwithstanding subdivision (a), for thc 2011 12 fiscal ycar
30 only, thc ratc rcfcrcnccd in subdivision (a) shall bc 1.87 perccnt.
31 (c) Notwithstanding subdivision (a), for thc 2012-13 fiscal ycar
32 only, thc ratc rcfcrcnccd in subdivision (a) shall bc 2.17 perccnt.
33 (d) Notwithstanding subdivision (a), for thc 2013 14 fiscal ycar
34
35
36
37
38
39
(b) Except as provided by Section 6357.3, in addition to the
taxes imposed by this part and by subdivision (a), an excise tax is
hereby imposed on the storage, use, or other consumption in this
state of diesel fuel, as defined in Section 60022, at the rate of 4
percent of the sales price of the diesel fuel.
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1 (c) Beginning July 1, 2020, and every third year thereafter, the
2 State Board of Equalization shall recompute the rates of the taxes
3 imposed by this section. That computation shall be made as
4 follows:
5 (1) The Department of Finance shall transmit to the State Board
6 of Equalization the percentage change in the California Consumer
7 Price Index for all items from November of three calendar years
8 prior to November of the prior calendar year, no later than January
9 31, 2020, and January 31 of every third year thereafter
10 (2) The State Board of Equalization shall do all of the following:
11 (A) Compute an inflation adjustment factor by adding 100
12 percent to the percentage change figure that is furnished pursuant
13 to paragraph (1) and dividing the result by 100.
14 (B) Multiply the preceding tax rate per gallon by the inflation
15 adjustment factor determined in subparagraph (A) and round off
16 the resulting product to the nearest tenth of a cent.
17 (C) Make its determination of the new rate no later than March
18 1 of the same year as the effective date of the new rate.
19 (e)
20 (d) (1) Notwithstanding subdivision (b) of Section 7102, except
21 as otherwise provided in paragraph (2), all of the revenues, less
22 refunds, collected pursuant to this section shall be estimated by
23 the State Board of Equalization, with the concurrence of the
24 Department of Finance, and transferred quarterly to the Public
25 Transportation Account in the State Transportation Fund for
26 allocation pursuant to Section 99312.1 of the Public Utilities Code.
27 (2) The revenues, less refunds, attributable to a rate of 0.5
28 percent of the 4 -percent increase in the rate pursuant to subdivision
29 (b), amounting to one-eighth of revenues from the increase in the
30 rate under that subdivision, shall be estimated by the State Board
31 of Equalization, with the concurrence of the Department of
32 Finance, and transferred quarterly to the Public Transportation
33 Account in the State Transportation Fund for allocation to the
34 Department of Transportation, upon appropriation by the
35 Legislature, to intercity rail and commuter rail purposes pursuant
36 to Section 99315 of the Public Utilities Code.
37 (f) Subdivisions (a) to (c), inclusivc, shall bccomc operativc on
38 July 1, 2011.
39 SEC. 18. Section 7360 of the Revenue and Taxation Code is
40 amended to read:
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1 7360. (a) (1) (A) A tax of eighteen cents ($0.18) is hereby
2 imposed upon each gallon of fuel subject to the tax in Sections
3 7362, 7363, and 7364.
4 (B) In addition to the tax imposed pursuant to subparagraph
5 (A), a tax of six cents ($0.06) is hereby imposed upon each gallon
6 offuel, other than aviation gasoline, subject to the tax in Sections
7 7362, 7363, and 7364. Effective one year after the date that the
8 six -cent ($0.06) tax is imposed, an additional tax of three cents
9 ($0.03) is hereby imposed, and effective two years after the date
10 that the six -cent ($0.06) tax is imposed, an additional tax of three
11 cents ($0.03) is hereby imposed, on each gallon offuel, other than
12 aviation gasoline, subject to the tax in Sections 7362, 7363, and
13 7364.
14 (2) If the federal fuel tax is reduced below the rate of nine cents
15 ($0.09) per gallon and federal financial allocations to this state for
16 highway and exclusive public mass transit guideway purposes are
17 reduced or eliminated correspondingly, the tax rate imposed by
18 subparagraph (A) of paragraph (1), on and after the date of the
19 reduction, shall be recalculated by an amount so that the combined
20 state rate under subparagraph (A) of paragraph (1) and the federal
21 tax rate per gallon equal twenty-seven cents ($0.27).
22 (3) If any person or entity is exempt or partially exempt from
23 the federal fuel tax at the time of a reduction, the person or entity
24 shall continue to be so exempt under this section.
25 (b) (1) On and after July 1, 2010, in addition to the tax imposed
26 by subdivision (a), a tax is hereby imposed upon each gallon of
27 motor vehicle fuel, other than aviation gasoline, subject to the tax
28 in Sections 7362, 7363, and 7364 in an amount equal to seventeen
29 and three -tenths cents ($0.173) per gallon.
30 (2) For thc 2011 12 fiscal ycar and cach fiscal ycar thcrcaftcr,
31 thc board shall, on or bcforc March 1 of the fiscal ycar immediately
32 prcccding thc applicable fiscal year, adjust thc ratc in paragraph
33 (1) in that manncr as to generate an amount of rcvcnuc that will
34 equal thc amount of rcvcnuc loss attributable to thc exemption
35 provided by Scction 6357.7, bascd on cstimatcs madc by thc board,
36 and that ratc shall be effective during thc state's ncxt fiscal year.
37 (3) In ordcr to maintain rcvcnuc neutrality for cach ycar,
38 bcginning with thc ratc adjustmcnt on or bcforc March 1, 2012,
39 the adjustmcnt under paragraph (2) shall also take into account the
40 extent to which thc actual amount of revenues derived pursuant to
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1 this subdivision and, as applicablc, Scction 7361.1, thc rcvcnuc
2 loss attributablc to thc cxcmption providcd by Scction 6357.7
3 rcsultcd in a nct rcvcnuc gain or loss for thc fiscal ycar ending
4 prior to thc rate adjustmcnt datc on or bcforc March 1.
5 (4) The intent of paragraphs (2) and (3) is to cnsurc that thc act
6 adding this subdivision and Scction 6357.7 docs not producc a nct
7 rcvcnuc gain in state taxes.
8 (c) Beginning July 1, 2020, and every third year thereafter, the
9 State Board of Equalization shall recompute the rates of the taxes
10 imposed by this section. That computation shall be made as
11 follows:
12 (1) The Department of Finance shall transmit to the State Board
13 of Equalization the percentage change in the California Consumer
14 Price Index for all items from November of three calendar years
15 prior to November of the prior calendar year, no later than January
16 31, 2020, and January 31 of every third year thereafter.
17 (2) The State Board of Equalization shall do all of the following:
18 (A) Compute an inflation adjustment factor by adding 100
19 percent to the percentage change figure that is furnished pursuant
20 to paragraph (1) and dividing the result by 100.
21 (B) Multiply the preceding tax rate per gallon by the inflation
22 adjustment factor determined in subparagraph (A) and round off
23 the resulting product to the nearest tenth of a cent.
24 (C) Make its determination of the new rate no later than March
25 1 of the same year as the effective date of the new rate.
26 SEC. 19. Section 8352.4 of the Revenue and Taxation Code
27 is amended to read:
28 8352.4. (a) Subject to Sections 8352 and 8352.1, and except
29 as otherwise provided in subdivision (b), there shall be transferred
30 from the money deposited to the credit of the Motor Vehicle Fuel
31 Account to the Harbors and Watercraft Revolving Fund, for
32 expenditure in accordance with Division 1 (commencing with
33 Section 30) of the Harbors and Navigation Code, the sum of six
34 million six hundred thousand dollars ($6,600,000) per annum,
35 representing the amount of money in the Motor Vehicle Fuel
36 Account attributable to taxes imposed on distributions of motor
37 vehicle fuel used or usable in propelling vessels. The actual amount
38 shall be calculated using the annual reports of registered boats
39 prepared by the Department of Motor Vehicles for the United
40 States Coast Guard and the formula and method of the December
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1 1972 report prepared for this purpose and submitted to the
2 Legislature on December 26, 1972, by the Director of
3 Transportation. If the amount transferred during each fiscal year
4 is in excess of the calculated amount, the excess shall be
5 retransferred from the Harbors and Watercraft Revolving Fund to
6 the Motor Vehicle Fuel Account. If the amount transferred is less
7 than the amount calculated, the difference shall be transferred from
8 the Motor Vehicle Fuel Account to the Harbors and Watercraft
9 Revolving Fund. No adjustment shall be made if the computed
10 difference is less than fifty thousand dollars ($50,000), and the
11 amount shall be adjusted to reflect any temporary or permanent
12 increase or decrease that may be made in the rate under the Motor
13 Vehicle Fuel Tax Law. Payments pursuant to this section shall be
14 made prior to payments pursuant to Section 8352.2.
15 (b) (1) Commencing July 1, 2016, 2017, the revenues
16 attributable to the taxes imposed pursuant to subdivision (b) of
17 Section 7360 and Scction 7361.1 and otherwise to be deposited in
18 the Harbors and Watercraft Revolving Fund pursuant to subdivision
19 (a) shall instead be transferred to the Gcncral Fund. The revenues
20 attributable to thc taxes imposed Highway Users Tax Account for
21 distribution pursuant to subdivision (b) of Scction 7360 and Scction
22 7361.1 that wcrc dcpositcd in Section 2103.1 of the Harbors Streets
23 and Watercraft Revolving Fund in thc 2010 11 and 2011 12 fiscal
24 ycars shall be transferred to thc Gcncral Fund. Highways Code.
25 (2) Commencing July 1, 2017, the revenues attributable to the
26 taxes imposed pursuant to subparagraph (B) of paragraph (1) of
27 subdivision (a) of Section 7360 and otherwise to be deposited in
28 the Harbors and Watercraft Revolving Fund pursuant to
29 subdivision (a) shall instead be transferred to the Road
30 Maintenance and Rehabilitation Account pursuant to Section 2031
31 of the Streets and Highways Code.
32 SEC. 20. Section 8352.5 of the Revenue and Taxation Code
33 is amended to read:
34 8352.5. (a) (1) Subject to Sections 8352 and 8352.1, and
35 except as otherwise provided in subdivision (b), there shall be
36 transferred from the money deposited to the credit of the Motor
37 Vehicle Fuel Account to the Department of Food and Agriculture
38 Fund, during the second quarter of each fiscal year, an amount
39 equal to the estimate contained in the most recent report prepared
40 pursuant to this section.
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1 (2) The amounts are not subject to Section 6357 with respect
2 to the collection of sales and use taxes thereon, and represent the
3 portion of receipts in the Motor Vehicle Fuel Account during a
4 calendar year that were attributable to agricultural off-highway
5 use of motor vehicle fuel which is subject to refund pursuant to
6 Section 8101, less gross refunds allowed by the Controller during
7 the fiscal year ending June -3 -0th 30 following the calendar year to
8 persons entitled to refunds for agricultural off-highway use
9 pursuant to Section 8101. Payments pursuant to this section shall
10 be made prior to payments pursuant to Section 8352.2.
11 (b) (1) Commencing July 1, 2016, 2017, the revenues
12 attributable to the taxes imposed pursuant to subdivision (b) of
13 Section 7360 and Scction 7361.1 and otherwise to be deposited in
14 the Department of Food and Agriculture Fund pursuant to
15 subdivision (a) shall instead be transferred to the Gcncral Fund.
16 The revenues attributable to thc taxcs imposed Highway Users
17 Tax Account for distribution pursuant to subdivision (b) of Scction
18 7360 and Scction 7361.1 that wcrc dcpositcd in thc Department
19 Section 2103.1 of Food and Agriculture Fund in the 2010-11
20 Streets and 2011-12 fiscal years shall be transferred to thc Gcncral
21 Fund. Highways Code.
22 (2) Commencing July 1, 2017, the revenues attributable to the
23 taxes imposed pursuant to subparagraph (B) of paragraph (1) of
24 subdivision (a) of Section 7360 and otherwise to be deposited in
25 the Department of Food and Agriculture Fund pursuant to
26 subdivision (a) shall instead be transferred to the Road
27 Maintenance and Rehabilitation Account pursuant to Section 2031
28 of the Streets and Highways Code.
29 (c) On or before September 30, 2012, and on or before
30 September 30 of each even -numbered year thereafter, the Director
31 of Transportation and the Director of Food and Agriculture shall
32 jointly prepare, or cause to be prepared, a report setting forth the
33 current estimate of the amount of money in the Motor Vehicle
34 Fuel Account attributable to agricultural off-highway use of motor
35 vehicle fuel, which is subject to refund pursuant to Section 8101
36 less gross refunds allowed by the Controller to persons entitled to
37 refunds for agricultural off-highway use pursuant to Section 8101;
38 and they shall submit a copy of the report to the Legislature.
39 SEC. 21. Section 8352.6 of the Revenue and Taxation Code
40 is amended to read:
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SB 1 —40-
1 8352.6. (a) (1) Subject to Section 8352.1, and except as
2 otherwise provided in paragraphs (2) and (3), on the first day of
3 every month, there shall be transferred from moneys deposited to
4 the credit of the Motor Vehicle Fuel Account to the Off -Highway
5 Vehicle Trust Fund created by Section 38225 of the Vehicle Code
6 an amount attributable to taxes imposed upon distributions of motor
7 vehicle fuel used in the operation of motor vehicles off highway
8 and for which a refund has not been claimed. Transfers made
9 pursuant to this section shall be made prior to transfers pursuant
10 to Section 8352.2.
11 (2) (A) Commencing July 1, 2016, 2017, the revenues
12 attributable to the taxes imposed pursuant to subdivision (b) of
13 Section 7360 and Scction 7361.1 and otherwise to be deposited in
14 the Off -Highway Vehicle Trust Fund pursuant to paragraph (1)
15 shall instead be transferred to the Gcncral Fund. The revenues
16 attributable to thc taxes imposcd Highway Users Tax Account for
17 distribution pursuant to subdivision (b) of Section 7360 and Scction
18 7361.1 that wcrc dcpositcd in Section 2103.1 of the Off-Ilighway
19 Vehicle Trust Fund in thc 2010-11 Streets and 2011-12 fiscal
20 ycars shall be transferred to thc Gcncral Fund. Highways Code.
21 (B) Commencing July 1, 2017, the revenues attributable to the
22 taxes imposed pursuant to subparagraph (B) of paragraph (1) of
23 subdivision (a) of Section 7360 and otherwise to be deposited in
24 the Off -Highway Vehicle Trust Fund pursuant to subdivision (a)
25 shall instead be transferred to the Road Maintenance and
26 Rehabilitation Account pursuant to Section 2031 of the Streets
27 and Highways Code.
28 (3) The Controller shall withhold eight hundred thirty-three
29 thousand dollars ($833,000) from the monthly transfer to the
30 Off -Highway Vehicle Trust Fund pursuant to paragraph (1), and
31 transfer that amount to the General Fund.
32 (b) The amount transferred to the Off -Highway Vehicle Trust
33 Fund pursuant to paragraph (1) of subdivision (a), as a percentage
34 of the Motor Vehicle Fuel Account, shall be equal to the percentage
35 transferred in the 2006-07 fiscal year. Every five years, starting
36 in the 2013-14 fiscal year, the percentage transferred may be
37 adjusted by the Department of Transportation in cooperation with
38 the Department of Parks and Recreation and the Department of
39 Motor Vehicles. Adjustments shall be based on, but not limited
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1 to, the changes in the following factors since the 2006-07 fiscal
2 year or the last adjustment, whichever is more recent:
3 (1) The number of vehicles registered as off-highway motor
4 vehicles as required by Division 16.5 (commencing with Section
5 38000) of the Vehicle Code.
6 (2) The number of registered street -legal vehicles that are
7 anticipated to be used off highway, including four-wheel drive
8 vehicles, all -wheel drive vehicles, and dual -sport motorcycles.
9 (3) Attendance at the state vehicular recreation areas.
10 (4) Off-highway recreation use on federal lands as indicated by
11 the United States Forest Service's National Visitor Use Monitoring
12 and the United States Bureau of Land Management's Recreation
13 Management Information System.
14 (c) It is the intent of the Legislature that transfers from the Motor
15 Vehicle Fuel Account to the Off -Highway Vehicle Trust Fund
16 should reflect the full range of motorized vehicle use off highway
17 for both motorized recreation and motorized off-road access to
18 other recreation opportunities. Therefore, the Legislature finds that
19 the fuel tax baseline established in subdivision (b), attributable to
20 off-highway estimates of use as of the 2006-07 fiscal year,
21 accounts for the three categories of vehicles that have been found
22 over the years to be users of fuel for off-highway motorized
23 recreation or motorized access to nonmotorized recreational
24 pursuits. These three categories are registered off-highway
25 motorized vehicles, registered street -legal motorized vehicles used
26 off highway, and unregistered off-highway motorized vehicles.
27 (d) It is the intent of the Legislature that the off-highway motor
28 vehicle recreational use to be determined by the Department of
29 Transportation pursuant to paragraph (2) of subdivision (b) be that
30 usage by vehicles subject to registration under Division 3
31 (commencing with Section 4000) of the Vehicle Code, for
32 recreation or the pursuit of recreation on surfaces where the use
33 of vehicles registered under Division 16.5 (commencing with
34 Section 38000) of the Vehicle Code may occur.
35 (e) In the 2014-15 fiscal year, the Department of Transportation,
36 in consultation with the Department of Parks and Recreation and
37 the Department of Motor Vehicles, shall undertake a study to
38 determine the appropriate adjustment to the amount transferred
39 pursuant to subdivision (b) and to update the estimate of the amount
40 attributable to taxes imposed upon distributions of motor vehicle
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SB 1 —42-
1 fuel used in the operation of motor vehicles off highway and for
2 which a refund has not been claimed. The department shall provide
3 a copy of this study to the Legislature no later than January 1,
4 2016.
5 SEC. 22. Section 60050 of the Revenue and Taxation Code is
6 amended to read:
7 60050. (a) (1) A tax of cightccn thirteen cents ($0.18) ($0.13)
8 is hereby imposed upon each gallon of diesel fuel subject to the
9 tax in Sections 60051, 60052, and 60058.
10 (2) If the federal fuel tax is reduced below the rate of fifteen
11 cents ($0.15) per gallon and federal financial allocations to this
12 state for highway and exclusive public mass transit guideway
13 purposes are reduced or eliminated correspondingly, the tax rate
14 imposed by paragraph (1), including any rcduction or adjustmcnt
15 pursuant to subdivision (b), on and aftcr thc date of thc reduction,
16 (1) shall be increased by an amount so that the combined state rate
17 under paragraph (1) and the federal tax rate per gallon equal what
18 it would have been in the absence of the federal reduction.
19 (3) If any person or entity is exempt or partially exempt from
20 the federal fuel tax at the time of a reduction, the person or entity
21 shall continue to be exempt under this section.
22 (b) (1) On July 1, 2011, thc tax ratc spccificd in paragraph (1)
23 of subdivision (a) shall bc reduced to thirtccn ccnts ($0.13) and
24 cvcry July 1 thcrcaftcr shall bc adjusted pursuant to paragraphs
25 (2) and (3).
26 (2) For thc 2012-13 fiscal ycar and cach fiscal ycar thcrcaftcr,
27 the board shall, on or bcforc March 1 of the fiscal ycar immediately
28 prcccding thc applicable fiscal ycar, adjust thc ratc rcduction in
29 paragraph (1) in that manncr as to result in a rcvcnuc loss
30 attributablc to paragraph (1) that will cqual thc amount of rcvcnuc
31 gain attributablc to Scctions 6051.8 and 6201.8, based on cstimatcs
32 madc by the board, and that ratc shall bc effective during thc state's
33 ncxt fiscal year.
34 (3) In ordcr to maintain rcvcnuc ncutrality for cach year,
35 bcginning with thc ratc adjustmcnt on or bcforc March 1, 2013,
36 thc adjustmcnt undcr paragraph (2) shall takc into account the
37 extent to which thc actual amount of revenues dcrivcd pursuant to
38 Sections 6051.8 and 6201.8 and thc rcvcnuc loss attributablc to
39 this subdivision resulted in a net rcvcnuc gain or loss for thc fiscal
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1 ycar cnding prior to thc ratc adjustment datc on or bcforc March
2 -17
3 (4) The intent of paragraphs (2) and (3) is to cnsurc that thc act
4 adding this subdivision and Scctions 6051.8 and 6201.8 docs not
5 produce a nct revenue gain in statc taxcs.
6 (b) In addition to the tax imposed pursuant to subdivision (a),
7 an additional tax of twenty cents ($0.20) is hereby imposed upon
8 each gallon of diesel fuel subject to the tax in Sections 60051,
9 60052, and 60058.
10 (c) Beginning July 1, 2020, and every third year thereafter the
11 State Board of Equalization shall recompute the rates of the taxes
12 imposed by this section. That computation shall be made as
13 follows:
14 (1) The Department of Finance shall transmit to the State Board
15 of Equalization the percentage change in the California Consumer
16 Price Index for all items from November of three calendar years
17 prior to November of the prior calendar year, no later than January
18 31, 2020, and January 31 of every third year thereafter
19 (2) The State Board of Equalization shall do all of the following::
20 (A) Compute an inflation adjustment factor by adding 100
21 percent to the percentage change figure that is furnished pursuant
22 to paragraph (1) and dividing the result by 100.
23 (B) Multiply the preceding tax rate per gallon by the inflation
24 adjustment factor determined in subparagraph (A) and round off
25 the resulting product to the nearest tenth of a cent.
26 (C) Make its determination of the new rate no later than March
27 1 of the same year as the effective date of the new rate.
28 SEC. 23. Section 183.1 of the Streets and Highways Code is
29 amended to read:
30 183.1. (a) Notwithstanding subdivision (a) of Scction 182 or
31 any othcr provision of law, Except as otherwise provided in Section
32 54237.7 of the Government Code, money deposited into the account
33 that is not subject to Article XIX of the California Constitution,
34 including, but not limited to, money that is derived from the sale
35 of documents, charges for miscellaneous services to the public,
36 condemnation deposits fund investments, rental of state property,
37 or any other miscellaneous uses of property or money, may be
38 used for any transportation purpose authorizcd by statutc, upon
39 appropriation by thc Legislature or, aftcr transfcr to anothcr fund,
40 upon appropriation by thc Legislature from that fund. shall be
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1 deposited in the Road Maintenance and Rehabilitation Account
2 created pursuant to Section 2031.
3 (b) Commcncing with thc 2013-14 fiscal ycar, and not later
4 than November 1 of cach fiscal ycar thcrcaftcr, based on prior ycar
5 financial statcmcnts, thc Controller shall transfcr thc funds
6 idcntificd in subdivision (a) for thc prior fiscal ycar from thc State
7 Ilighway Account to thc Transportation Dcbt Service Fund in the
8 Statc Transportation Fund, and thosc funds arc continuously
9 appropriated for the purposes spccificd for thc Transportation Dcbt
10 Service Fund.
11 SEC. 24. Section 820.1 is added to the Streets and Highways
12 Code, to read:
13 820.1. (a) The State of California consents to the jurisdiction
14 of the federal courts with regard to the compliance, discharge, or
15 enforcement of the responsibilities assumed by the department
16 pursuant to Section 326 of, and subsection (a) of Section 327 of,
17 Title 23 of the United States Code.
18 (b) In any action brought pursuant to the federal laws described
19 in subdivision (a), no immunity from suit may be asserted by the
20 department pursuant to the Eleventh Amendment to the United
21 States Constitution, and any immunity is hereby waived.
22 (c) The department shall not delegate any of its responsibilities
23 assumed pursuant to the federal laws described in subdivision (a)
24 to any political subdivision of the state or its instrumentalities.
25 (d) Nothing in this section affects the obligation of the
26 department to comply with state and federal law.
27 SEC. 25. Chapter 2 (commencing with Section 2030) is added
28 to Division 3 of the Streets and Highways Code, to read:
29
30 CHAPTER 2. ROAD MAINTENANCE AND REHABILITATION
31 PROGRAM
32
33 2030. (a) The Road Maintenance and Rehabilitation Program
34 is hereby created to address deferred maintenance on the state
35 highway system and the local street and road system. Funds made
36 available by the program shall be prioritized for expenditure on
37 basic road maintenance and road rehabilitation projects, and on
38 critical safety projects. For funds appropriated pursuant to
39 paragraph (1) of subdivision (d) of Section 2032, the California
40 Transportation Commission shall adopt performance criteria,
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1 consistent with the asset management plan required pursuant to
2 14526.4 of the Government Code, to ensure efficient use of the
3 funds available for these purposes in the program.
4 (b) (1) Funds made available by the program shall be used for
5 projects that include, but are not limited to, the following:
6 (A) Road maintenance and rehabilitation.
7 (B) Safety projects.
8 (C) Railroad grade separations.
9 (D) Complete street components, including active transportation
10 purposes, pedestrian and bicycle safety projects, transit facilities,
11 and drainage and stormwater capture projects in conjunction with
12 any other allowable project.
13 (E) Traffic control devices.
14 (2) Funds made available by the program may also be used to
15 satisfy a match requirement in order to obtain state or federal funds
16 for projects authorized by this subdivision.
17 2031. The following revenues shall be deposited in the Road
18 Maintenance and Rehabilitation Account, which is hereby created
19 in the State Transportation Fund:
20 (a) Notwithstanding subdivision (b) of Section 2103, the portion
21 of the revenues in the Highway Users Tax Account attributable to
22 the increases in the motor vehicle fuel excise tax pursuant to
23 subparagraph (B) of paragraph (1) of subdivision (a) of Section
24 7360 of the Revenue and Taxation Code, as adjusted pursuant to
25 subdivision (c) of that section.
26 (b) The portion of revenues attributable to the increase in the
27 motor vehicle fuel excise tax pursuant to subparagraph (B) of
28 paragraph (1) of subdivision (a) of Section 7360 of the Revenue
29 and Taxation Code, as adjusted pursuant to subdivision (c) of that
30 section, and designated for the Road Maintenance and
31 Rehabilitation Account pursuant to paragraph (2) of subdivision
32 (b) of Section 8352.4 of, paragraph (2) of subdivision (b) of Section
33 8352.5 of, and subparagraph (B) paragraph (2) of subdivision (a)
34 of Section 8352.6 of, that code.
35 (c) The revenues from the increase in the vehicle registration
36 fee pursuant to Section 9250.3 of the Vehicle Code, as adjusted
37 pursuant to subdivision (b) of that section.
38 (d) The revenues from the increase in the vehicle registration
39 fee pursuant to Section 9250.6 of the Vehicle Code, as adjusted
40 pursuant to subdivision (b) of that section.
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1 (e) The revenues deposited in the account pursuant to Section
2 183.1 of the Streets and Highways Code.
3 (f) Any other revenues designated for the program.
4 2031.5. Each fiscal year the annual Budget Act shall contain
5 an appropriation from the Road Maintenance and Rehabilitation
6 Account to the Controller for the costs of carrying out his or her
7 duties pursuant to this chapter and to the California Transportation
8 Commission for the costs of carrying out its duties pursuant to this
9 chapter and Section 14526.7 of the Government Code.
10 2032. (a) (1) After deducting the amounts appropriated in the
11 annual Budget Act, as provided in Section 2031.5, two hundred
12 million dollars ($200,000,000) of the remaining revenues deposited
13 in the Road Maintenance and Rehabilitation Account shall be set
14 aside annually for counties that have sought and received voter
15 approval of taxes or that have imposed fees, including uniform
16 developer fees as defined by subdivision (b) of Section 8879.67
17 of the Government Code, which taxes or fees are dedicated solely
18 to transportation improvements. The Controller shall each month
19 set aside one -twelfth of this amount, to accumulate a total of two
20 hundred million dollars ($200,000,000) in each fiscal year.
21 (2) Notwithstanding Section 13340 of the Government Code,
22 the funds available under this subdivision in each fiscal year are
23 hereby continuously appropriated for allocation to each eligible
24 county and each city in the county for road maintenance and
25 rehabilitation purposes pursuant to Section 2033.
26 (b) (1) After deducting the amounts appropriated in the annual
27 Budget Act pursuant to Section 2031.5 and the amount allocated
28 in subdivision (a), beginning in the 2017-18 fiscal year, eighty
29 million dollars ($80,000,000) of the remaining revenues shall be
30 transferred annually to the State Highway Account for expenditure,
31 upon appropriation by the Legislature, on the Active Transportation
32 Program created pursuant to Chapter 8 (commencing with Section
33 23 80) of Division 3 to be allocated by the California Transportation
34 Commission pursuant to Section 2381.
35 (2) In addition to the funds transferred in paragraph (1), the
36 department shall annually identify savings achieved through
37 efficiencies implemented at the department. The department,
38 through the annual budget process, shall propose, from the
39 identified savings, an appropriation to be included in the annual
40 Budget Act of up to seventy million dollars ($70,000,000), but not
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1 to exceed the total annual identified savings, from the State
2 Highway Account for expenditure on the Active Transportation
3 Program.
4 (c) After deducting the amounts appropriated in the annual
5 Budget Act pursuant to Section 2031.5, the amount allocated in
6 subdivision (a) and the amount transferred in paragraph (1) of
7 subdivision (b), in the 2017-18, 2018-19, 2019-20, and 2020-21
8 fiscal years, the sum of thirty million dollars ($30,000,000) in each
9 fiscal year from the remaining revenues shall be transferred to the
10 Advance Mitigation Fund in the State Transportation Fund created
11 pursuant to Section 21207 of the Public Resources Code.
12 (d) After deducting the amounts appropriated in the annual
13 Budget Act pursuant to Section 2031.5, the amount allocated in
14 subdivision (a), and the amounts transferred in paragraph (1) of
15 subdivision (b) and in subdivision (c), beginning in the 2017-18
16 fiscal year and each fiscal year thereafter, and notwithstanding
17 Section 13340 of the Government Code, there is hereby
18 continuously appropriated to the California State University the
19 sum of two million dollars ($2,000,000) from the remaining
20 revenues for the purpose of conducting transportation research and
21 transportation -related workforce education, training, and
22 development. Prior to the start of each fiscal year, the chairs of the
23 Assembly Committee on Transportation and the Senate Committee
24 on Transportation and Housing shall confer and set out a
25 recommended priority list of research components to be addressed
26 in the upcoming fiscal year.
27 (e) Notwithstanding Section 13340 of the Government Code,
28 the balance of the revenues deposited in the Road Maintenance
29 and Rehabilitation Account are hereby continuously appropriated
30 as follows:
31 (1) Fifty percent for allocation to the department for maintenance
32 of the state highway system or for purposes of the state highway
33 operation and protection program.
34 (2) Fifty percent for apportionment to cities and counties by the
35 Controller pursuant to the formula in clauses (i) and (ii) of
36 subparagraph (C) of paragraph (3) of subdivision (a) of Section
37 2103 for the purposes authorized by this chapter.
38 2033. (a) On or before January 1, 2018, the commission, in
39 cooperation with the department, transportation planning agencies,
40 county transportation commissions, and other local agencies, shall
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SB 1 —48-
1 develop guidelines for the allocation of funds pursuant to
2 subdivision (a) of Section 2032.
3 (b) The guidelines shall be the complete and full statement of
4 the policy, standards, and criteria that the commission intends to
5 use to determine how these funds will be allocated.
6 (c) The commission may amend the adopted guidelines after
7 conducting at least one public hearing.
8 2034. (a) (1) Prior to receiving an apportionment of funds
9 under the program pursuant to paragraph (2) of subdivision (e) of
10 Section 2032 from the Controller in a fiscal year, an eligible city
11 or county shall submit to the commission a list of projects proposed
12 to be funded with these funds pursuant to an adopted city or county
13 budget. All projects proposed to receive funding shall be included
14 in a city or county budget that is adopted by the applicable city
15 council or county board of supervisors at a regular public meeting.
16 The list of projects proposed to be funded with these funds shall
17 include a description and the location of each proposed project, a
18 proposed schedule for the project's completion, and the estimated
19 useful life of the improvement. The project list shall not limit the
20 flexibility of an eligible city or county to fund projects in
21 accordance with local needs and priorities so long as the projects
22 are consistent with subdivision (b) of Section 2030.
23 (2) The commission shall report to the Controller the cities and
24 counties that have submitted a list of projects as described in this
25 subdivision and that are therefore eligible to receive an
26 apportionment of funds under the program for the applicable fiscal
27 year. The Controller, upon receipt of the report, shall apportion
28 funds to eligible cities and counties.
29 (b) For each fiscal year, each city or county receiving an
30 apportionment of funds shall, upon expending program funds,
31 submit documentation to the commission that includes a description
32 and location of each completed project, the amount of funds
33 expended on the project, the completion date, and the estimated
34 useful life of the improvement.
35 2036. (a) Cities and counties shall maintain their existing
36 commitment of local funds for street, road, and highway purposes
37 in order to remain eligible for an allocation or apportionment of
38 funds pursuant to Section 2032.
39 (b) In order to receive an allocation or apportionment pursuant
40 to Section 2032, the city or county shall annually expend from its
99
-49— SB 1
1 general fund for street, road, and highway purposes an amount not
2 less than the annual average of its expenditures from its general
3 fund during the 2009-10, 2010-11, and 2011-12 fiscal years, as
4 reported to the Controller pursuant to Section 2151. For purposes
5 of this subdivision, in calculating a city's or county's annual
6 general fund expenditures and its average general fund expenditures
7 for the 2009-10, 2010-11, and 2011-12 fiscal years, any
8 unrestricted funds that the city or county may expend at its
9 discretion, including vehicle in -lieu tax revenues and revenues
10 from fines and forfeitures, expended for street, road, and highway
11 purposes shall be considered expenditures from the general fund.
12 One-time allocations that have been expended for street and
13 highway purposes, but which may not be available on an ongoing
14 basis, including revenue provided under the Teeter Plan Bond Law
15 of 1994 (Chapter 6.6 (commencing with Section 54773) of Part 1
16 of Division 2 of Title 5 of the Government Code), may not be
17 considered when calculating a city's or county's annual general
18 fund expenditures.
19 (c) For any city incorporated after July 1, 2009, the Controller
20 shall calculate an annual average expenditure for the period
21 between July 1, 2009, and December 31, 2015, inclusive, that the
22 city was incorporated.
23 (d) For purposes of subdivision (b), the Controller may request
24 fiscal data from cities and counties in addition to data provided
25 pursuant to Section 2151, for the 2009-10, 2010-11, and 2011-12
26 fiscal years. Each city and county shall furnish the data to the
27 Controller not later than 120 days after receiving the request. The
28 Controller may withhold payment to cities and counties that do
29 not comply with the request for information or that provide
30 incomplete data.
31 (e) The Controller may perform audits to ensure compliance
32 with subdivision (b) when deemed necessary. Any city or county
33 that has not complied with subdivision (b) shall reimburse the state
34 for the funds it received during that fiscal year. Any funds withheld
35 or returned as a result of a failure to comply with subdivision (b)
36 shall be reapportioned to the other counties and cities whose
37 expenditures are in compliance.
38 (f) If a city or county fails to comply with the requirements of
39 subdivision (b) in a particular fiscal year, the city or county may
40 expend during that fiscal year and the following fiscal year a total
99
SB 1 —50-
1 amount that is not less than the total amount required to be
2 expended for those fiscal years for purposes of complying with
3 subdivision (b).
4 2037. A city or county may spend its apportionment of funds
5 under the program on transportation priorities other than those
6 allowable pursuant to this chapter if the city's or county's average
7 Pavement Condition Index meets or exceeds 80.
8 2038. (a) The department and local agencies, as a condition
9 of receiving funds from the program, shall adopt and implement
10 a program designed to promote and advance construction
11 employment and training opportunities through preapprenticeship
12 opportunities, either by the public agency itself or through
13 contractors engaged by the public agencies to do work funded in
14 whole or in part by funds made available by the program.
15 (b) The department and local agencies, as a condition of
16 receiving funds from the program, shall ensure the involvement
17 of the California Conservation Corps and certified community
18 conservation corps in the delivery of projects and services funded
19 in whole or in part by funds made available by the program.
20 SEC. 26. Section 2103.1 is added to the Streets and Highways
21 Code, to read:
22 2103.1. (a) Notwithstanding Section 2103, the revenues
23 transferred to the Highway Users Tax Account pursuant to Sections
24 8352.4, 8352.5, and 8352.6 of the Revenue and Taxation Code
25 shall be distributed pursuant to the formula in paragraph (3) of
26 subdivision (a) of Section 2103.
27 (b) Notwithstanding subdivision (b) of Section 2103, the portion
28 of revenues in the Highway Users Tax Account attributable to the
29 increases in the motor vehicle fuel excise tax pursuant to
30 subparagraph (B) of paragraph (1) of subdivision (a) of Section
31 7360 of the Revenue and Taxation Code, as adjusted pursuant to
32 subdivision (c) of that section, shall be transferred to the Road
33 Maintenance and Rehabilitation Account pursuant to Section 2031.
34 (c) Notwithstanding subdivision (b) of Section 2103, the portion
35 of revenues in the Highway Users Tax Account attributable to the
36 increase in the diesel fuel excise tax pursuant to subdivision (b)
37 of Section 60050 of the Revenue and Taxation Code, as adjusted
38 pursuant to subdivision (c) of that section, shall be transferred to
39 the Trade Corridors Improvement Fund pursuant to Section 2192.4.
99
-51— SB 1
1 SEC. 27. Section 2192 of the Streets and Highways Code is
2 amended to read:
3 2192. (a) (1) The Trade Corridors Improvement Fund, created
4 pursuant to subdivision (c) of Section 8879.23 of the Government
5 Code, is hereby continued in existence to receive revenues from
6 state sources other than the Highway Safety, Traffic Reduction,
7 Air Quality, and Port Security Bond Act of 2006. This chaptcr
8 shall govern cxpcnditurc of thosc othcr revenues.
9 (2) Revenues apportioned to the state under Section 167 of Title
10 23 of the United States Code from the national highway freight
11 program, pursuant to the federal Fixing America 's Surface
12 Transportation Act ("FAST Act," Public Law 114-94) shall be
13 allocated for projects approved pursuant to this chapter
14 (b) This chapter shall govern the expenditure of those state and
15 federal revenues described in subdivision (a).
16 (b) Thc moneys in thc fund from thcsc othcr sourccs
17 (c) The funding described in subdivision (a) shall be available
18 upon appropriation for allocation by the California Transportation
19 Commission for infrastructure improvements in this state on
20 federally designated Trade Corridors of National and Regional
21 Significance, on the Primary Freight Network, and along other
22 corridors that have a high volume of freight movement, as
23 determined by the commission. commission and as identified in
24 the state freight plan developed and adopted pursuant to Section
25 13978.8 of the Government Code. In dctcrmining prioritizing the
26 projects cligiblc for funding, the commission shall consult the
27 Transportation Agcncy's state frcight plan as dcscribcd in Section
28 13978.8 of the Government Codc, thc State Air Resources Board's
29 Sustainable Frcight Stratcgy adoptcd by Resolution 14-2, and the
30 tradc infrastructurc and goods movement plan submittcd to the
31 commission by thc Secretary of Transportation and thc Secretary
32 for Environmental Protcction. Thc commission shall also consult
33 California Sustainable Freight Action Plan released in July 2016
34 pursuant to Executive Order B-32-15, trade infrastructure and
35 goods movement plans adopted by regional transportation planning
36 agencies, adopted regional transportation plans required by state
37 and federal law, and the statewide applicable port master plan
38 whcn determining cligiblc projccts for funding. plan. Eligible
39 projects for the funding described in subdivision (a) shall further
40 the state's economic, environmental, and public health objectives
99
SB 1 —52-
1 and goals for freight policy, as articulated in the plans to be
2 consulted pursuant to this subdivision. Eligible projects for these
3 funds include, but arc not limited to, all of thc following: are as
4 follows:
5 (1) Highway Highway, local road, and rail capital and capacity
6 improvements, rail landside access improvements, landside freight
7 access improvements to airports, seaports, and land ports, and
8 operational improvements to more efficiently accommodate the
9 movement of freight, particularly for ingress and egress to and
10 from the state's land ports of cntry entry, rail terminals, and
11 seaports, including navigable inland waterways used to transport
12 freight between seaports, land ports of entry, and airports, and to
13 relieve traffic congestion along major trade or goods movement
14 corridors.
15 (2) Freight rail system improvements to enhance the ability to
16 move goods from seaports, land ports of entry, and airports to
17 warehousing and distribution centers throughout California,
18 including projects that separate rail lines from highway or local
19 road traffic, improve freight rail mobility through mountainous
20 regions, relocate rail switching yards, and other projects that
21 improve the efficiency and capacity of the rail freight system.
22 (3) Projects to cnhancc thc capacity and efficiency of ports.
23 (3) Infrastructure improvement projects to enhance the capacity
24 and efficiency of ports without having the effect of displacing
25 workers in port operations.
26 (4) Truck corridor and capital and operational improvements,
27 ifteitteling including, but not limited to, dedicated truck facilities
28 or truck toll facilities.
29 (5) Border acccss capital and operational improvements that
30 enhance goods movement between California and Mexico and that
31 maximize the state's ability to access coordinatcd bordcr
32 infrastructure funds made available to the state by federal law.
33 (6) Surface transportation and connector road capital and
34 operational improvements to effectively facilitate the movement
35 of goods, particularly for ingress and egress to and from the state's
36 land ports of entry, airports, and seaports, to relieve traffic
37 congestion along major trade or goods movement corridors.
38 (c) (1) The
39 (d) (1) Exccpt as provided in paragraph (2), In evaluating the
40 program of projects to be funded with funds described in paragraph
99
-53— SB 1
1 (2) of subdivision (a), the commission shall evaluate the total
2 potential economic and noneconomic benefits of the program of
3 projects to California's economy, environment, and public health.
4 The commission shall consult with the agencies identified in
5 Executive Order B-32-15 and metropolitan planning organizations
6 in order to utilize the appropriate models, techniques, and methods
7 to develop the parameters for evaluating the program of projects.
8 The commission shall allocate funds the funding described in
9 paragraph (2) of subdivision (a) for trade infrastructure
10 improvements from the fund consistent with Section 8879.52 of
11 the Government Code and the Trade Corridors Improvement Fund
12 (TCIF) Guidelines adopted by the commission on November 27,
13 2007, or as amended by the commission, and in a manner that (A)
14 addresses the state's most urgent needs, (B) balances the demands
15 of various land ports of entry, seaports, and airports, (C) provides
16 reasonable geographic balance between the state's regions, and
17 (D) places emphasis on projects that improve trade corridor
18 mobility and safety while reducing emissions of diesel particulate
19 and other pollutant cmissions. emissions and reducing other
20 negative community impacts, and (E) makes a significant
21 contribution to the state 's economy.
22 (2) The commission shall allocate the federal freight funding,
23 specifically, pursuant to the original TCIF Guidelines, as adopted
24 by the commission on November 27, 2007, and in the manner
25 described in (A) to (E), inclusive, of paragraph (1).
26 (A) One hundred fifty million dollars ($150,000,000) shall be
27 dedicated exclusively to fund improvements to California's existing
28 or planned land ports of entry on the border with Mexico. The
29 department, in consultation with the San Diego Association of
30 Governments and the Imperial County Transportation Commission,
31 shall nominate a program of projects for funding allocations that
32 make border capital and operational improvements to enhance
33 goods movement between California and Mexico and contribute
34 to the reduction of emissions.
35 (B) Seventy million dollars ($70,000,000) shall be dedicated
36 exclusively to fund projects for the elimination, alteration, or
37 improvement of hazardous railroad -highway grade crossings.
38 Projects shall be jointly nominated by the department and a
39 regional transportation agency.
99
SB 1 —54-
1 (C) Three hundred sixty million dollars ($360,000,000) shall
2 be available for projects nominated by regional transportation
3 agencies and other public agencies, including counties, cities, and
4 port authorities, in consultation with the department, and consistent
5 with corridor -based programming targets contained in the Trade
6 Corridors Investment Fund (TCIF) Guidelines adopted by the
7 commission on November 27, 2007, or as amended by the
8 commission, to provide reasonable geographic targets for funding
9 allocations without constraining what an agency may propose or
10 what the commission may approve. However, the San Diego
11 Association of Governments, the Imperial County Transportation
12 Commission, and other public agencies in San Diego and Imperial
13 Counties shall be excluded from nominating projects under this
14 subparagraph.
15 (2) The commission shall proportionately adjust the amounts
16 in subparagraphs (A), (B), and (C) of paragraph (1) if the amount
17 of funds described in paragraph (2) of subdivision (a) is less than
18 or greater than five hundred eighty million dollars ($580,000,000).
19 (3) The commission shall adopt guidelines to allocate the
20 funding described in subdivision (a) for trade infrastructure
21 improvements in a manner that (A) addresses the state's most
22 urgent needs, (B) balances the demands of various land ports of
23 entry, seaports, and airports, (C) provides reasonable geographic
24 balance between the state 's regions, (D) places emphasis on
25 projects that improve trade corridor mobility and safety while
26 reducing emissions of diesel particulates, greenhouse gases, and
27 other pollutants and reducing other negative community impacts,
28 and (E) makes a significant contribution to the state's economy.
29 The commission shall adopt any amendments to the 2007 guidelines
30 on or before April 1, 2017.
31 (4) In adopting amended guidelines, and developing and
32 adopting the program of projects, the commission shall do all of
33 the following:
34 (A) Accept nominations for projects to be included in the
35 program of projects from regional and local transportation
36 agencies and the department.
37 (B) Recognize the key role of the state in project identification
38 and support integrating statewide goods movement priorities into
39 the corridor approach.
99
-55— SB 1
1 (C) Give the highest priority for funding allocations to projects
2 jointly nominated by the department and a regional or other public
3 agency.
4 (3-)
5 (5) In addition, the commission shall also consider the following
6 factors when allocating thcsc funds: funds under this section:
7 (A) "Velocity," which means the speed by which large cargo
8 would travel from the land port of entry or seaport through the
9 distribution system.
10 (B) "Throughput," which means the volume of cargo that would
11 move from the land port of entry or seaport through the distribution
12 system.
13 (C) "Reliability," which means a reasonably consistent and
14 predictable amount of time for cargo to travel from one point to
15 another on any given day or at any given time in California.
16 (D) "Congestion reduction," which means the reduction in
17 recurrent daily hours of delay to be achieved.
18 SEC. 28. Section 2192.2 of the Streets and Highways Code is
19 amended to read:
20 2192.2. The commission shall allocate funds made available
21 by this chapter to projects that have identified and committed
22 supplemental funding from appropriate local, federal, or private
23 sources. The commission shall determine the appropriate amount
24 of supplemental funding each project should have to be eligible
25 for moneys from thc fund based on a project -by -project review
26 and an assessment of the project's benefit to the state and the
27 program. Except for bordcr access Funded improvements described
28 in paragraph (5) of subdivision (b) of Scction 2192, improvements
29 funded with moncys from thc fund shall have supplemental funding
30 that is at least equal to the amount of the contribution from the
31 fund. under this chapter The commission may give priority for
32 funding to projects with higher levels of committed supplemental
33 funding.
34 SEC. 29. Section 2192.4 is added to the Streets and Highways
35 Code, to read:
36 2192.4. The portion of the revenues in the Highway Users Tax
37 Account attributable to the increase in the diesel fuel excise tax
38 pursuant to subdivision (b) of Section 60050 of the Revenue and
39 Taxation Code, as adjusted pursuant to subdivision (c) of that
99
SB 1 —56-
1 section, shall be transferred to the Trade Corridors Improvement
2 Fund.
3 SEC. 30. Section 9250.3 is added to the Vehicle Code, to read:
4 9250.3. (a) In addition to any other fees specified in this code
5 or the Revenue and Taxation Code, commencing October 1, 2017,
6 a registration fee of thirty-eight dollars ($38) shall be paid to the
7 department for registration or renewal of registration of every
8 vehicle subject to registration under this code, except those vehicles
9 that are expressly exempted under this code from payment of
10 registration fees.
11 (b) Beginning October 1, 2020, and every third year thereafter,
12 the Department of Motor Vehicles shall adjust the fee imposed
13 under this section for inflation in an amount equal to the change
14 in the California Consumer Price Index for the prior three-year
15 period, as calculated by the Department of Finance, with amounts
16 equal to or greater than fifty cents ($0.50) rounded to the next
17 highest whole dollar.
18 (c) Revenues from the fee, after the deduction of the
19 department's administrative costs related to this section, shall be
20 deposited in the Road Maintenance and Rehabilitation Account
21 created pursuant to Section 2031 of the Streets and Highways
22 Code.
23 SEC. 31. Section 9250.6 is added to the Vehicle Code, to read:
24 9250.6. (a) In addition to any other fees specified in this code,
25 or the Revenue and Taxation Code, commencing October 1, 2017,
26 a registration fee of one hundred dollars ($100) shall be paid to
27 the department for registration or renewal of registration of every
28 zero -emission motor vehicle subject to registration under this code,
29 except those motor vehicles that are expressly exempted under
30 this code from payment of registration fees.
31 (b) Beginning October 1, 2020, and every third year thereafter,
32 the Department of Motor Vehicles shall adjust the fee imposed
33 under this section for inflation in an amount equal to the change
34 in the California Consumer Price Index for the prior three-year
35 period, as calculated by the Department of Finance, with amounts
36 equal to or greater than fifty cents ($0.50) rounded to the next
37 highest whole dollar.
38 (c) Revenues from the fee, after deduction of the department's
39 administrative costs related to this section, shall be deposited in
99
-57— SB 1
1 the Road Maintenance and Rehabilitation Account created pursuant
2 to Section 2031 of the Streets and Highways Code.
3 (d) This section does not apply to a commercial motor vehicle
4 subject to Section 9400.1.
5 (e) The registration fee required pursuant to this section does
6 not apply to the initial registration after the purchase of a new
7 zero -emission motor vehicle.
8 (f) For purposes of this section, "zero -emission motor vehicle"
9 means a motor vehicle as described in subdivisions (c) and (d) of
10 Section 44258 of the Health and Safety Code, or any other motor
11 vehicle that is able to operate on any fuel other than gasoline or
12 diesel fuel.
13 SEC. 32. Section 9400.5 is added to the Vehicle Code, to read:
14 9400.5. (a) Notwithstanding Sections 9400.1, 9400.4, and
15 42205 of this code, Sections 16773 and 16965 of the Government
16 Code, Section 2103 of the Streets and Highways Code, or any
17 other law, weight fee revenues shall only be transferred consistent
18 with the schedule provided in subdivision (b) from the State
19 Highway Account to the Transportation Debt Service Fund, the
20 Transportation Bond Direct Payment Account, or any other fund
21 or account for the purpose of payment of the debt service on
22 transportation general obligation bonds and shall not be loaned to
23 the General Fund.
24 (b) (1) The transfer of weight fee revenues, after deduction of
25 collection costs, from the State Highway Account pursuant to
26 subdivision (a) shall not exceed:
27 (A) Ninety percent of the total weight fees in the 2017-18 fiscal
28 year.
29 (B) Eighty percent of the total weight fees in the 2018-19 fiscal
30 year.
31 (C) Seventy percent of the total weight fees in the 2019-20
32 fiscal year.
33 (D) Sixty percent of the total weight fees in the 2020-21 fiscal
34 year.
35 (E) Fifty percent of the total weight fees in 2021-22 and
36 subsequent fiscal years.
37 (2) The California Transportation Commission, on or before
38 January 1, 2018, shall recommend a course of action to the
39 Legislature and the Governor that would provide for the portion
40 of weight fees described in subparagraph (E) of paragraph (1) to
99
SB 1 —58-
1 be retained in the State Highway Account or transferred to the
2 Road Maintenance and Rehabilitation Account created pursuant
3 to Section 2031.
4 SEC. 33. The increases in tax rates in Sections 6051.8, 6201.8,
5 7360, and 60050 of the Revenue and Taxation Code, as amended
6 by this act, shall become effective on July 1, 2017.
7 SEC. 34. This act is an urgency statute necessary for the
8 immediate preservation of the public peace, health, or safety within
9 the meaning of Article IV of the Constitution and shall go into
10 immediate effect. The facts constituting the necessity are:
11 In order to provide additional funding for road maintenance and
12 rehabilitation purposes as quickly as possible, it is necessary for
13 this act to take effect immediately.
0
99
FACSIMILE COVER SHEET
CITY CLERK'S OFFICE
221 WEST PINE STREET - P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
PHONE (209) 333-6702 FAX (209) 333-6807
citvcIrk c@lodl.gov or pfan is[7u lodi.gov
DATE: January 9, 2017
FROM: Pamela M. Farris
Deputy City Clerk
TO: Senator Jim Beall, 916-651-4915
Assemblymember Jim Frazier, 916-319-2111
Assemblymember Jim Cooper, 916-319-2109
Senator Cathleen Galgiani, 916-651-4905
COMMENTS: Attached please find the Notice of Support for AB 1 (Frazier)
— Transportation Funding, and SB 1 (Beall) — Transportation
Funding
THIS TRANSMITTAL CONTAINS 5 PAGE(S), INCLUDING THIS COVER SHEET.
forms\aafaxjen.doc
01/09/2017 MON 17:14
FAX
Tool
*********************
*** FAX TX REPORT ***
*********************
TRANSMISSION OK
JOB NO.
DEPT. ID
DESTINATION ADDRESS
SUBADDRESS
DESTINATION ID
ST. TIME
TX/RX TIME
PGS.
RESULT
2417
101
919166514905
01/09 17:11
02' 26
5
OK
FACSIMILE COVER SHEET
CITY CLERK'S OFFICE
221 WEST PINE STREET - P.O. BOX 3006
LODI, CALIFORNIA 9524 I -1910
PHONE (209) 333-6702 FAX (209) 333-6507
cilye,11*.a4Iodi_gPy, or Pilirris@kxii,vnv
DATE: January 9, 2017
FROM: Pamela M. Farris
Deputy City Clerk
TO: Senator Jim Beall, 916-651-4915
Assemblymember Jim Frazier, 916-319-2111
Assemblymember Jim Cooper, 916-319-2109
Senator Cathleen Galgiani, 916-651-4905
COMMENTS: Attached please find the Notice of Support for AB 1 (Frazier)
— Transportation Funding, and SB 1 (Beall) — Transportation
Funding
THIS TRANSMITTAL CONTAINS 5 PAGE(S), INCLUDING THIS COVER SHEET.
01/09/2017 MON 17:11
FAX
ZI001
*********************
*** FAX TX REPORT ***
*********************
TRANSMISSION OK
JOB NO.
DEPT. ID
DESTINATION ADDRESS
SUBADDRESS
DESTINATION ID
ST. TIME
TX/RX TIME
PGS.
RESULT
2416
101
919163192109
01/09 17:09
01'56
5
OK
FACSIMILE COVER SHEET
CITY CLERK'S OFFICE
221 WEST PINE STREET - P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
PHONE (209) 333-6702 FAX (209) 333-6807
cilxclrkaIQ(li.yov or pforriti{rr7 g i. pv
DATE: January 9, 2017
FROM: Pamela M. Farris
Deputy City Clerk
TO: Senator Jim Beall, 916-651-4915
Assemblymember Jim Frazier, 916-319-2111
Assemblymember Jim Cooper, 916-319-2109
Senator Cathleen Galgiani, 916-651-4905
COMMENTS: Attached please find the Notice of Support for AB 1 (Frazier)
— Transportation Funding, and SB 1 (Beall) — Transportation
Funding
THIS TRANSMITTAL CONTAINS 5 PAGE(S), INCLUDING THIS COVER SHEET.
01/09/2017 MON 17:02
FAX
'0o1
***************************
*** FAX MULTI TX REPORT ***
***************************
JOB NO. 2413
DEPT. ID 101
PGS. 5
TX INCOMPLETE
TRANSACTION OK 919166514915
ERROR
919163192111
919163192109
919166514905
FACSIMILE COVER SHEET
CITY CLERK'S OFFICE
221 WEST PINE STREET - P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
PI -TUNE (209) 333-6702 FAX (209) 333-6807
eilvcIrk i.Odi.guv or pfarri; isk di.gnv
DATE: January 9, 2017
FROM: Pamela M. Farris
Deputy City Clerk
TO: Senator Jim Beall, 916-651-4915
Assemblymember Jim Frazier, 916-319-2111
Assemblymember Jim Cooper, 916-319-2109
Senator Cathleen Galgiani, 916-651-4905
COMMENTS: Attached please find the Notice of Support for AB 1 (Frazier)
— Transportation Funding, and SB 1 (Beall) — Transportation
Funding
THIS TRANSMITTAL CONTAINS 5 PAGE(S), INCLUDING THIS COVER SHEET.
01/09/2017 MON 17:06
FAX
Zion
*********************
*** FAX TX REPORT ***
*********************
TRANSMISSION OK
JOB NO. 2414
DEPT. ID 101
DESTINATION ADDRESS 919166514915
SUBADDRESS
DESTINATION ID
ST. TIME 01/09 17:04
TX/RX TIME 02'26
PGS. 5
RESULT OK
FACSIMILE COVER SHEET
CITY CLERK'S OFFICE
221 WEST PINE STREET - P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
PHONE (209) 333-6702 FAX (209) 333.6807
dyelrk ip,ia0li,gpv Or iggeris_rr ko¢iypv
DATE: January 9, 2017
FROM: Pamela M. Farris
Deputy City Clerk
TO: Senator Jim Beall, 916-651-4915
Assemblymember Jim Frazier, 916-319-2111
Assemblymember Jim Cooper, 916-319-2109
Senator Cathleen Galgiani, 916-651-4905
COMMENTS: Attached please find the Notice of Support for AB 1 (Frazier)
— Transportation Funding, and SB 1 (Beall) — Transportation
Funding
THIS TRANSMITTAL CONTAINS 5 PAGE(S), INCLUDING THIS COVER SHEET.
01/09/2017 MON 17:09
FAX
l 001
*********************
*** FAX TX REPORT ***
*********************
TRANSMISSION OK
JOB NO. 2415
DEPT. ID 101
DESTINATION ADDRESS 919163192111
SUBADDRESS
DESTINATION ID
ST. TIME 01/09 17:07
TX/ RX TIME 01' 55
PGS. 5
RESULT OK
FACSIMILE COVER SHEET
CITY CLERK'S OFFICE
221 WEST PINE STREET - P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
PHONE (209) 333-6702 FAX (209) 333-6807
ciE elrk ri;lucli.2»y or • L:I•i; ri Icttii.gov
DATE: January 9, 2017
FROM: Pamela M. Farris
Deputy City Clerk
TO: Senator Jim Beall, 916-651-4915
Assemblymember Jim Frazier, 916-319-2111
Assemblymember Jim Cooper, 916-319-2109
Senator Cathleen Galgiani, 916-651-4905
COMMENTS: Attached please find the Notice of Support for AB 1 (Frazier)
— Transportation Funding, and SB 1 (Beall) — Transportation
Funding
THIS TRANSMITTAL CONTAINS 5 PAGE(S), INCLUDING THIS COVER SHEET.