Bill Text: CA AB2520 | 2009-2010 | Regular Session | Introduced
Bill Title: Transportation: general obligation bonds: letters of no
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-03-18 - Referred to Com. on TRANS. [AB2520 Detail]
Download: California-2009-AB2520-Introduced.html
BILL NUMBER: AB 2520 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Solorio
FEBRUARY 19, 2010
An act to add Section 14533.1 to the Government Code, relating to
transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2520, as introduced, Solorio. Transportation: general
obligation bonds: letters of no prejudice.
Existing law, the Clean Air and Transportation Improvement Act of
1990, authorizes the issuance of $1.99 billion in general obligation
bonds for rail and transit purposes. Existing law provides for the
California Transportation Commission to allocate bond funds to
eligible projects.
Existing law, the Highway Safety, Traffic Reduction, Air Quality,
and Port Security Bond Act of 2006, authorizes the issuance of
$19.925 billion in general obligation bonds for various
transportation purposes. Existing law designates an administrative
agency that is responsible for programming these bond funds for the
various categories of projects funded by the act. Existing law
authorizes a regional or local agency that is a lead agency for a
project to be funded under the act to apply to the administrative
agency for a letter of no prejudice that permits the applicant to
spend its own resources on the project and then to be reimbursed at a
later date when bond funds become available, subject to various
requirements and conditions.
This bill would enact similar provisions applicable to regional or
local agencies relative to projects to be funded by the Clean Air
and Transportation Improvement Act of 1990.
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 14533.1 is added to the Government Code, to
read:
14533.1. (a) A regional or local agency that is a lead applicant
agency for a project that may be funded 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) may apply
to the commission for a letter of no prejudice for the project or a
component of the project. The commission may approve the letter of no
prejudice for one or more projects or project components that the
commission has programmed, allocated, or otherwise approved for
funding. The letter of no prejudice shall reference the project or
component thereof and the amount of bond funding that is programmed,
allocated, or otherwise approved for that project or project
component. The commission may approve a letter of no prejudice
without further appropriation of funds in the Clean Air and
Transportation Improvement Fund, as moneys in that fund are
continuously appropriated to the commission for allocation pursuant
to Section 99612 of the Public Utilities Code.
(b) Expenditures for the costs, up to the amount set forth in the
letter of no prejudice, of a project or project component for which a
letter of no prejudice has been issued shall be eligible for
reimbursement from the Clean Air and Transportation Improvement Fund
if all of the following apply:
(1) The project or project component for which the letter of no
prejudice was requested has commenced and the regional or local
expenditures have been incurred.
(2) The expenditures made by the regional or local agency are
eligible for reimbursement in accordance with state and federal laws
and procedures, and are permitted expenditures under the applicable
provisions of the Clean Air and Transportation Improvement Act of
1990 (Part 11.5 (commencing with Section 99600) of Division 10 of the
Public Utilities Code). If expenditures made are determined to be
ineligible, then the state has no obligation to reimburse for those
expenditures.
(3) The regional or local agency complies with all legal
requirements for the project, including the requirements of the
California Environmental Quality Act (Division 13 (commencing with
Section 21000) of the Public Resources Code).
(4) The expenditures were incurred after the project or project
component was programmed, allocated, or otherwise approved for
funding by the commission.
(5) There is in the Clean Air and Transportation Improvement Fund
an amount sufficient to make the reimbursement payment. Nothing in
this section requires the fund to be funded at any particular time or
in any particular amount.
(c) The commission and the regional or local agency may enter into
an agreement or agreements governing reimbursement as described in
this section.
(d) Nothing in this section modifies any requirement under Part
11.5 (commencing with Section 99600) of Division 10 of the Public
Utilities Code.
(e) For purposes of this section, "letter of no prejudice" means
an agreement between a regional or local agency and the commission
that makes eligible for future reimbursement from bond proceeds the
expenditure of funds under the control of the regional or local
agency, subject to availability of bond funds, as provided in this
section. The timing and final amount of reimbursement is dependent on
the terms of the agreement and the availability of bond funds. The
final amount of reimbursement may be less than the amount stated in
the letter of no prejudice.
