Bill Text: CA AB2411 | 2015-2016 | Regular Session | Amended
Bill Title: Transportation revenues.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-11-30 - From Senate committee without further action. [AB2411 Detail]
Download: California-2015-AB2411-Amended.html
BILL NUMBER: AB 2411 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 27, 2016
INTRODUCED BY Assembly Member Frazier
FEBRUARY 19, 2016
An act to amend amend, repeal, and add
Section 16965 of the Government Code, and to amend
amend, re peal, and add Section 183.1
of the Streets and Highways Code, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2411, as amended, Frazier. Transportation revenues.
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 would, on July 1, 2017,
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
would, on July 1, 2017, instead require the miscellaneous
revenues to be retained in the State Highway Account and to be used
solely for transportation expenditures consistent with the
restrictions for expenditure of fuel tax revenues in Article XIX of
the California Constitution.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 16965 of the
Government Code is amended to read:
16965. (a) (1) The Transportation Debt Service Fund is hereby
created in the State Treasury. Moneys in the fund shall be dedicated
to all of the following purposes:
(A) Payment of debt service with respect to designated bonds, as
defined in subdivision (c) of Section 16773, and as further provided
in paragraph (3) and subdivision (b).
(B) To reimburse the General Fund for debt service with respect to
bonds.
(C) To redeem or retire bonds, pursuant to Section 16774, maturing
in a subsequent fiscal year.
(2) The bonds eligible under subparagraph (B) or (C) of paragraph
(1) include bonds issued pursuant to the Clean Air and Transportation
Improvement Act of 1990 (Part 11.5 (commencing with Section 99600)
of Division 10 of the Public Utilities Code), the Passenger Rail and
Clean Air Bond Act of 1990 (Chapter 17 (commencing with Section 2701)
of Division 3 of the Streets and Highways Code), the Seismic
Retrofit Bond Act of 1996 (Chapter 12.48 (commencing with Section
8879) of Division 1 of Title 2), and the Safe, Reliable High-Speed
Passenger Train Bond Act for the 21st Century (Chapter 20 (commencing
with Section 2704) of Division 3 of the Streets and Highways Code),
and nondesignated bonds under Proposition 1B, as defined in
subdivision (c) of Section 16773.
(3) (A) The Transportation Bond Direct Payment Account is hereby
created in the State Treasury, as a subaccount within the
Transportation Debt Service Fund, for the purpose of directly paying
the debt service, as defined in paragraph (4), of designated bonds of
Proposition 1B, as defined in subdivision (c) of Section 16773.
Notwithstanding Section 13340, moneys in the Transportation Bond
Direct Payment Account are continuously appropriated for payment of
debt service with respect to designated bonds as provided in
subdivision (c) of Section 16773. So long as any designated bonds
remain outstanding, the moneys in the Transportation Bond Direct
Payment Account may not be used for any other purpose, and may not be
borrowed by or available for transfer to the General Fund pursuant
to Section 16310 or any similar law, or to the General Cash Revolving
Fund pursuant to Section 16381 or any similar law.
(B) Once the Treasurer makes a certification that payment of debt
service with respect to all designated bonds has been paid or
provided for, any remaining moneys in the Transportation Bond Direct
Payment Account shall be transferred back to the Transportation Debt
Service Fund.
(C) The moneys in the Transportation Bond Direct Payment Account
shall be invested in the Surplus Money Investment Fund, and all
investment earnings shall accrue to the account.
(D) The Controller may establish subaccounts within the
Transportation Bond Direct Payment Account as may be required by the
resolution, indenture, or other documents governing any designated
bonds.
(4) For purposes of this subdivision and subdivision (b), and
subdivision (c) of Section 16773, "debt service" means payment of all
of the following costs and expenses with respect to any designated
bond:
(A) The principal of and interest on the bonds.
(B) Amounts payable as the result of tender on any bonds, as
described in clause (iv) of subparagraph (B) of paragraph (1) of
subdivision (d) of Section 16731.
(C) Amounts payable under any contractual obligation of the state
to repay advances and pay interest thereon under a credit enhancement
or liquidity agreement as described in clause (iv) of subparagraph
(B) of paragraph (1) of subdivision (d) of Section 16731.
(D) Any amount owed by the state to a counterparty after any
offset for payments owed to the state on any hedging contract as
described in subparagraph (A) of paragraph (2) of subdivision (d) of
Section 16731.
(b) From the moneys transferred to the fund pursuant to paragraph
(2) or (3) of subdivision (c) of Section 9400.4 of the Vehicle Code,
there shall first be deposited into the Transportation Bond Direct
Payment Account in each month sufficient funds to equal the amount
designated in a certificate submitted by the Treasurer to the
Controller and the Director of Finance at the start of each fiscal
year, and as may be modified by the Treasurer thereafter upon
issuance of any new issue of designated bonds or upon change in
circumstances that requires such a modification. This certificate
shall be calculated by the Treasurer to identify, for each month, the
amount necessary to fund all of the debt service with respect to all
designated bonds. This calculation shall be done in a manner
provided in the resolution, indenture, or other documents governing
the designated bonds. In the event that transfers to the
Transportation Bond Direct Payment Account in any month are less than
the amounts required in the Treasurer's certificate, the shortfall
shall carry over to be part of the required payment in the succeeding
month or months.
(c) The state hereby covenants with the holders from time to time
of any designated bonds that it will not alter, amend, or restrict
the provisions of subdivision (c) of Section 16773 of the Government
Code, or Sections 9400, 9400.1, 9400.4, and 42205 of the Vehicle
Code, which provide directly or indirectly for the transfer of weight
fees to the Transportation Debt Service Fund or the Transportation
Bond Direct Payment Account, or subdivisions (a) and (b) of this
section, or reduce the rate of imposition of vehicle weight fees
under Sections 9400 and 9400.1 of the Vehicle Code as they existed on
the date of the first issuance of any designated bonds, if that
alteration, amendment, restriction, or reduction would result in
projected weight fees for the next fiscal year determined by the
Director of Finance being less than two times the maximum annual debt
service with respect to all outstanding designated bonds, as such
calculation is determined pursuant to the resolution, indenture, or
other documents governing the designated bonds. The state may include
this covenant in the resolution, indenture, or other documents
governing the designated bonds.
(d) Once the required monthly deposit, including makeup of any
shortfalls from any prior month, has been made pursuant to
subdivision (b), from moneys transferred to the fund pursuant to
paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the
Controller shall transfer as an expenditure reduction to the General
Fund any amount necessary to offset the cost of current year debt
service payments made from the General Fund with respect to any bonds
issued pursuant to Proposition 192 (1996) and three-quarters of the
amount of current year debt service payments made from the General
Fund with respect to any nondesignated bonds, as defined in
subdivision (c) of Section 16773, issued pursuant to Proposition 1B
(2006). In the alternative, these funds may also be used to redeem or
retire the applicable bonds, pursuant to Section 16774, maturing in
a subsequent fiscal year as directed by the Director of Finance.
(e) From moneys transferred to the fund pursuant to Section 183.1
of the Streets and Highways Code, the Controller shall transfer as an
expenditure reduction to the General Fund any amount necessary to
offset the cost of current year debt service payments made from the
General Fund with respect to any bonds issued pursuant to Proposition
116 (1990). In the alternative, these funds may also be used to
redeem or retire the applicable bonds, pursuant to Section 16774,
maturing in a subsequent fiscal year as directed by the Director of
Finance.
(f) Once the required monthly deposit, including makeup of any
shortfalls from any prior month, has been made pursuant to
subdivision (b), from moneys transferred to the fund pursuant to
paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the
Controller shall transfer as an expenditure reduction to the General
Fund any amount necessary to offset the eligible cost of current year
debt service payments made from the General Fund with respect to any
bonds issued pursuant to Proposition 108 (1990) and Proposition 1A
(2008), and one-quarter of the amount of current year debt service
payments made from the General Fund with respect to any nondesignated
bonds, as defined in subdivision (c) of Section 16773, issued
pursuant to Proposition 1B (2006). The Department of Finance shall
notify the Controller by July 30 of every year of the percentage of
debt service that is expected to be paid in that fiscal year with
respect to bond-funded projects that qualify as eligible guideway
projects consistent with the requirements applicable to the
expenditure of revenues under Article XIX of the California
Constitution, and the Controller shall make payments only for those
eligible projects. In the alternative, these funds may also be used
to redeem or retire the applicable bonds, pursuant to Section 16774,
maturing in a subsequent fiscal year as directed by the Director of
Finance.
(g) On or before the second business day following the date on
which transfers are made to the Transportation Debt Service Fund, and
after the required monthly deposits for that month, including makeup
of any shortfalls from any prior month, have been made to the
Transportation Bond Direct Payment Account, the Controller shall
transfer the funds designated for reimbursement of bond debt service
with respect to nondesignated bonds, as defined in subdivision (c) of
Section 16773, and other bonds identified in subdivisions (d), (e),
and (f) in that month from the fund to the General Fund pursuant to
this section.
(h) This section shall become inoperative on July 1, 2017, and, as
of January 1, 2018, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2018, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 2. Section 16965 is added to the
Government Code , to read:
16965. (a) (1) The Transportation Debt Service Fund is hereby
created in the State Treasury. Moneys in the fund shall be dedicated
to all of the following purposes:
(A) Payment of debt service with respect to designated bonds, as
defined in subdivision (c) of Section 16773, and as further provided
in paragraph (3) and subdivision (b).
(B) To reimburse the General Fund for debt service with respect to
bonds.
(C) To redeem or retire bonds, pursuant to Section 16774, maturing
in a subsequent fiscal year.
(2) The bonds eligible under subparagraph (B) or (C) of paragraph
(1) include bonds issued pursuant to the Passenger Rail and Clean Air
Bond Act of 1990 (Chapter 17 (commencing with Section 2701) of
Division 3 of the Streets and Highways Code), the Seismic Retrofit
Bond Act of 1996 (Chapter 12.48 (commencing with Section 8879) of
Division 1 of Title 2), and the Safe, Reliable High-Speed Passenger
Train Bond Act for the 21st Century (Chapter 20 (commencing with
Section 2704) of Division 3 of the Streets and Highways Code), and
nondesignated bonds under Proposition 1B, as defined in subdivision
(c) of Section 16773.
(3) (A) The Transportation Bond Direct Payment Account is hereby
created in the State Treasury, as a subaccount within the
Transportation Debt Service Fund, for the purpose of directly paying
the debt service, as defined in paragraph (4), of designated bonds of
Proposition 1B, as defined in subdivision (c) of Section 16773.
Notwithstanding Section 13340, moneys in the Transportation Bond
Direct Payment Account are continuously appropriated for payment of
debt service with respect to designated bonds as provided in
subdivision (c) of Section 16773. So long as any designated bonds
remain outstanding, the moneys in the Transportation Bond Direct
Payment Account may not be used for any other purpose, and may not be
borrowed by or available for transfer to the General Fund pursuant
to Section 16310 or any similar law, or to the General Cash Revolving
Fund pursuant to Section 16381 or any similar law.
(B) Once the Treasurer makes a certification that payment of debt
service with respect to all designated bonds has been paid or
provided for, any remaining moneys in the Transportation Bond Direct
Payment Account shall be transferred back to the Transportation Debt
Service Fund.
(C) The moneys in the Transportation Bond Direct Payment Account
shall be invested in the Surplus Money Investment Fund, and all
investment earnings shall accrue to the account.
(D) The Controller may establish subaccounts within the
Transportation Bond Direct Payment Account as may be required by the
resolution, indenture, or other documents governing any designated
bonds.
(4) For purposes of this subdivision and subdivision (b), and
subdivision (c) of Section 16773, "debt service" means payment of all
of the following costs and expenses with respect to any designated
bond:
(A) The principal of and interest on the bonds.
(B) Amounts payable as the result of tender on any bonds, as
described in clause (iv) of subparagraph (B) of paragraph (1) of
subdivision (d) of Section 16731.
(C) Amounts payable under any contractual obligation of the state
to repay advances and pay interest thereon under a credit enhancement
or liquidity agreement as described in clause (iv) of subparagraph
(B) of paragraph (1) of subdivision (d) of Section 16731.
(D) Any amount owed by the state to a counterparty after any
offset for payments owed to the state on any hedging contract as
described in subparagraph (A) of paragraph (2) of subdivision (d) of
Section 16731.
(b) From the moneys transferred to the fund pursuant to paragraph
(2) or (3) of subdivision (c) of Section 9400.4 of the Vehicle Code,
there shall first be deposited into the Transportation Bond Direct
Payment Account in each month sufficient funds to equal the amount
designated in a certificate submitted by the Treasurer to the
Controller and the Director of Finance at the start of each fiscal
year, and as may be modified by the Treasurer thereafter upon
issuance of any new issue of designated bonds or upon change in
circumstances that requires such a modification. This certificate
shall be calculated by the Treasurer to identify, for each month, the
amount necessary to fund all of the debt service with respect to all
designated bonds. This calculation shall be done in a manner
provided in the resolution, indenture, or other documents governing
the designated bonds. In the event that transfers to the
Transportation Bond Direct Payment Account in any month are less than
the amounts required in the Treasurer's certificate, the shortfall
shall carry over to be part of the required payment in the succeeding
month or months.
(c) The state hereby covenants with the holders from time to time
of any designated bonds that it will not alter, amend, or restrict
the provisions of subdivision (c) of Section 16773 of the Government
Code, or Sections 9400, 9400.1, 9400.4, and 42205 of the Vehicle
Code, which provide directly or indirectly for the transfer of weight
fees to the Transportation Debt Service Fund or the Transportation
Bond Direct Payment Account, or subdivisions (a) and (b) of this
section, or reduce the rate of imposition of vehicle weight fees
under Sections 9400 and 9400.1 of the Vehicle Code as they existed on
the date of the first issuance of any designated bonds, if that
alteration, amendment, restriction, or reduction would result in
projected weight fees for the next fiscal year determined by the
Director of Finance being less than two times the maximum annual debt
service with respect to all outstanding designated bonds, as such
calculation is determined pursuant to the resolution, indenture, or
other documents governing the designated bonds. The state may include
this covenant in the resolution, indenture, or other documents
governing the designated bonds.
(d) Once the required monthly deposit, including makeup of any
shortfalls from any prior month, has been made pursuant to
subdivision (b), from moneys transferred to the fund pursuant to
paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the
Controller shall transfer as an expenditure reduction to the General
Fund any amount necessary to offset the cost of current year debt
service payments made from the General Fund with respect to any bonds
issued pursuant to Proposition 192 (1996) and three-quarters of the
amount of current year debt service payments made from the General
Fund with respect to any nondesignated bonds, as defined in
subdivision (c) of Section 16773, issued pursuant to Proposition 1B
(2006). In the alternative, these funds may also be used to redeem or
retire the applicable bonds, pursuant to Section 16774, maturing in
a subsequent fiscal year as directed by the Director of Finance.
(e) Once the required monthly deposit, including makeup of any
shortfalls from any prior month, has been made pursuant to
subdivision (b), from moneys transferred to the fund pursuant to
paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the
Controller shall transfer as an expenditure reduction to the General
Fund any amount necessary to offset the eligible cost of current year
debt service payments made from the General Fund with respect to any
bonds issued pursuant to Proposition 108 (1990) and Proposition 1A
(2008), and one-quarter of the amount of current year debt service
payments made from the General Fund with respect to any nondesignated
bonds, as defined in subdivision (c) of Section 16773, issued
pursuant to Proposition 1B (2006). The Department of Finance shall
notify the Controller by July 30 of every year of the percentage of
debt service that is expected to be paid in that fiscal year with
respect to bond-funded projects that qualify as eligible guideway
projects consistent with the requirements applicable to the
expenditure of revenues under Article XIX of the California
Constitution, and the Controller shall make payments only for those
eligible projects. In the alternative, these funds may also be used
to redeem or retire the applicable bonds, pursuant to Section 16774,
maturing in a subsequent fiscal year as directed by the Director of
Finance.
(f) On or before the second business day following the date on
which transfers are made to the Transportation Debt Service Fund, and
after the required monthly deposits for that month, including makeup
of any shortfalls from any prior month, have been made to the
Transportation Bond Direct Payment Account, the Controller shall
transfer the funds designated for reimbursement of bond debt service
with respect to nondesignated bonds, as defined in subdivision (c) of
Section 16773, and other bonds identified in subdivisions (d) and
(e) in that month from the fund to the General Fund pursuant to this
section.
(g) This section shall become operative on July 1, 2017.
SEC. 3. Section 183.1 of the Streets
and Highways Code is amended to read:
183.1. (a) Notwithstanding subdivision (a) of Section 182 or any
other provision of law, money deposited into the account that is not
subject to Article XIX of the California Constitution, including, but
not limited to, money that is derived from the sale of documents,
charges for miscellaneous services to the public, condemnation
deposits fund investments, rental of state property, or any other
miscellaneous uses of property or money, may be used for any
transportation purpose authorized by statute, upon appropriation by
the Legislature or, after transfer to another fund, upon
appropriation by the Legislature from that fund.
(b) Commencing with the 2013-14 fiscal year, and not later than
November 1 of each fiscal year thereafter, based on prior year
financial statements, the Controller shall transfer the funds
identified in subdivision (a) for the prior fiscal year from the
State Highway Account to the Transportation Debt Service Fund in the
State Transportation Fund, and those funds are continuously
appropriated for the purposes specified for the Transportation Debt
Service Fund.
(c) This section shall become inoperative on July 1, 2017, and, as
of January 1, 2018, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2018, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 4. Section 183.1 is added to the
Streets and Highways Code , to read:
183.1. (a) Except as otherwise provided in Section 54237.7 of the
Government Code, money deposited into the account that is not
subject to Article XIX of the California Constitution, including, but
not limited to, money that is derived from the sale of documents,
charges for miscellaneous services to the public, condemnation
deposits fund investments, rental of state property, or any other
miscellaneous uses of property or money, shall be used solely for
transportation expenditures consistent with Section 2 of Article XIX
of the California Constitution.
(b) This section shall become operative on July 1, 2017.
SECTION 1. Section 16965 of the Government Code
is amended to read:
16965. (a) (1) The Transportation Debt Service Fund is hereby
created in the State Treasury. Moneys in the fund shall be dedicated
to all of the following purposes:
(A) Payment of debt service with respect to designated bonds, as
defined in subdivision (c) of Section 16773, and as further provided
in paragraph (3) and subdivision (b).
(B) To reimburse the General Fund for debt service with respect to
bonds.
(C) To redeem or retire bonds, pursuant to Section 16774, maturing
in a subsequent fiscal year.
(2) The bonds eligible under subparagraph (B) or (C) of paragraph
(1) include bonds issued pursuant to the Passenger Rail and Clean Air
Bond Act of 1990 (Chapter 17 (commencing with Section 2701) of
Division 3 of the Streets and Highways Code), the Seismic Retrofit
Bond Act of 1996 (Chapter 12.48 (commencing with Section 8879) of
Division 1 of Title 2), and the Safe, Reliable High-Speed Passenger
Train Bond Act for the 21st Century (Chapter 20 (commencing with
Section 2704) of Division 3 of the Streets and Highways Code), and
nondesignated bonds under Proposition 1B, as defined in subdivision
(c) of Section 16773.
(3) (A) The Transportation Bond Direct Payment Account is hereby
created in the State Treasury, as a subaccount within the
Transportation Debt Service Fund, for the purpose of directly paying
the debt service, as defined in paragraph (4), of designated bonds of
Proposition 1B, as defined in subdivision (c) of Section 16773.
Notwithstanding Section 13340, moneys in the Transportation Bond
Direct Payment Account are continuously appropriated for payment of
debt service with respect to designated bonds as provided in
subdivision (c) of Section 16773. So long as any designated bonds
remain outstanding, the moneys in the Transportation Bond Direct
Payment Account may not be used for any other purpose, and may not be
borrowed by or available for transfer to the General Fund pursuant
to Section 16310 or any similar law, or to the General Cash Revolving
Fund pursuant to Section 16381 or any similar law.
(B) Once the Treasurer makes a certification that payment of debt
service with respect to all designated bonds has been paid or
provided for, any remaining moneys in the Transportation Bond Direct
Payment Account shall be transferred back to the Transportation Debt
Service Fund.
(C) The moneys in the Transportation Bond Direct Payment Account
shall be invested in the Surplus Money Investment Fund, and all
investment earnings shall accrue to the account.
(D) The Controller may establish subaccounts within the
Transportation Bond Direct Payment Account as may be required by the
resolution, indenture, or other documents governing any designated
bonds.
(4) For purposes of this subdivision and subdivision (b), and
subdivision (c) of Section 16773, "debt service" means payment of all
of the following costs and expenses with respect to any designated
bond:
(A) The principal of and interest on the bonds.
(B) Amounts payable as the result of tender on any bonds, as
described in clause (iv) of subparagraph (B) of paragraph (1) of
subdivision (d) of Section 16731.
(C) Amounts payable under any contractual obligation of the state
to repay advances and pay interest thereon under a credit enhancement
or liquidity agreement as
described in clause (iv) of subparagraph (B) of paragraph (1) of
subdivision (d) of Section 16731.
(D) Any amount owed by the state to a counterparty after any
offset for payments owed to the state on any hedging contract as
described in subparagraph (A) of paragraph (2) of subdivision (d) of
Section 16731.
(b) From the moneys transferred to the fund pursuant to paragraph
(2) or (3) of subdivision (c) of Section 9400.4 of the Vehicle Code,
there shall first be deposited into the Transportation Bond Direct
Payment Account in each month sufficient funds to equal the amount
designated in a certificate submitted by the Treasurer to the
Controller and the Director of Finance at the start of each fiscal
year, and as may be modified by the Treasurer thereafter upon
issuance of any new issue of designated bonds or upon change in
circumstances that requires such a modification. This certificate
shall be calculated by the Treasurer to identify, for each month, the
amount necessary to fund all of the debt service with respect to all
designated bonds. This calculation shall be done in a manner
provided in the resolution, indenture, or other documents governing
the designated bonds. In the event that transfers to the
Transportation Bond Direct Payment Account in any month are less than
the amounts required in the Treasurer's certificate, the shortfall
shall carry over to be part of the required payment in the succeeding
month or months.
(c) The state hereby covenants with the holders from time to time
of any designated bonds that it will not alter, amend, or restrict
the provisions of subdivision (c) of Section 16773 of the Government
Code, or Sections 9400, 9400.1, 9400.4, and 42205 of the Vehicle
Code, which provide directly or indirectly for the transfer of weight
fees to the Transportation Debt Service Fund or the Transportation
Bond Direct Payment Account, or subdivisions (a) and (b) of this
section, or reduce the rate of imposition of vehicle weight fees
under Sections 9400 and 9400.1 of the Vehicle Code as they existed on
the date of the first issuance of any designated bonds, if that
alteration, amendment, restriction, or reduction would result in
projected weight fees for the next fiscal year determined by the
Director of Finance being less than two times the maximum annual debt
service with respect to all outstanding designated bonds, as such
calculation is determined pursuant to the resolution, indenture, or
other documents governing the designated bonds. The state may include
this covenant in the resolution, indenture, or other documents
governing the designated bonds.
(d) Once the required monthly deposit, including makeup of any
shortfalls from any prior month, has been made pursuant to
subdivision (b), from moneys transferred to the fund pursuant to
paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the
Controller shall transfer as an expenditure reduction to the General
Fund any amount necessary to offset the cost of current year debt
service payments made from the General Fund with respect to any bonds
issued pursuant to Proposition 192 (1996) and three-quarters of the
amount of current year debt service payments made from the General
Fund with respect to any nondesignated bonds, as defined in
subdivision (c) of Section 16773, issued pursuant to Proposition 1B
(2006). In the alternative, these funds may also be used to redeem or
retire the applicable bonds, pursuant to Section 16774, maturing in
a subsequent fiscal year as directed by the Director of Finance.
(e) Once the required monthly deposit, including makeup of any
shortfalls from any prior month, has been made pursuant to
subdivision (b), from moneys transferred to the fund pursuant to
paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the
Controller shall transfer as an expenditure reduction to the General
Fund any amount necessary to offset the eligible cost of current year
debt service payments made from the General Fund with respect to any
bonds issued pursuant to Proposition 108 (1990) and Proposition 1A
(2008), and one-quarter of the amount of current year debt service
payments made from the General Fund with respect to any nondesignated
bonds, as defined in subdivision (c) of Section 16773, issued
pursuant to Proposition 1B (2006). The Department of Finance shall
notify the Controller by July 30 of every year of the percentage of
debt service that is expected to be paid in that fiscal year with
respect to bond-funded projects that qualify as eligible guideway
projects consistent with the requirements applicable to the
expenditure of revenues under Article XIX of the California
Constitution, and the Controller shall make payments only for those
eligible projects. In the alternative, these funds may also be used
to redeem or retire the applicable bonds, pursuant to Section 16774,
maturing in a subsequent fiscal year as directed by the Director of
Finance.
(f) On or before the second business day following the date on
which transfers are made to the Transportation Debt Service Fund, and
after the required monthly deposits for that month, including makeup
of any shortfalls from any prior month, have been made to the
Transportation Bond Direct Payment Account, the Controller shall
transfer the funds designated for reimbursement of bond debt service
with respect to nondesignated bonds, as defined in subdivision (c) of
Section 16773, and other bonds identified in subdivisions (d) and
(e) in that month from the fund to the General Fund pursuant to this
section.
SEC. 2. Section 183.1 of the Streets and
Highways Code is amended to read:
183.1. Except as otherwise provided in Section 54237.7 of the
Government Code, money deposited into the account that is not subject
to Article XIX of the California Constitution, including, but not
limited to, money that is derived from the sale of documents, charges
for miscellaneous services to the public, condemnation deposits fund
investments, rental of state property, or any other miscellaneous
uses of property or money, shall be used solely for transportation
expenditures consistent with Section 2 of Article XIX of the
California Constitution.
