Bill Text: CA AB672 | 2009-2010 | Regular Session | Chaptered
Bill Title: Transportation: bond-funded projects: letter of no
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2009-10-11 - Chaptered by Secretary of State - Chapter 463, Statutes of 2009. [AB672 Detail]
Download: California-2009-AB672-Chaptered.html
BILL NUMBER: AB 672 CHAPTERED
BILL TEXT
CHAPTER 463
FILED WITH SECRETARY OF STATE OCTOBER 11, 2009
APPROVED BY GOVERNOR OCTOBER 11, 2009
PASSED THE SENATE AUGUST 27, 2009
PASSED THE ASSEMBLY JUNE 3, 2009
AMENDED IN ASSEMBLY JUNE 2, 2009
AMENDED IN ASSEMBLY MAY 19, 2009
AMENDED IN ASSEMBLY MAY 4, 2009
AMENDED IN ASSEMBLY APRIL 21, 2009
AMENDED IN ASSEMBLY APRIL 14, 2009
INTRODUCED BY Assembly Members Bass and Eng
FEBRUARY 25, 2009
An act to amend Section 8879.72 of, and to add Section 8879.501
to, the Government Code, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 672, Bass. Transportation: bond-funded projects: letter of no
prejudice.
Existing law, the Highway Safety, Traffic Reduction, Air Quality,
and Port Security Bond Act of 2006, authorizes the issuance of
$19.925 billion of general obligation bonds for various
transportation purposes. Existing law designates the state agency
responsible for programming bond funds under the act as the
administrative agency for those purposes.
This bill would authorize a regional or local agency that is a
lead agency for a project or project component for which bond funding
has been programmed or otherwise approved by the administrative
agency or is otherwise targeted to be available, as specified, to
apply to the administrative agency for a letter of no prejudice that
would make the regional or local agency eligible to be subsequently
reimbursed from bond funds for expenditures of funds under its
control for the project or project component under certain
conditions, as specified.
Existing law requires the California Transportation Commission to
establish the funding shares for applicants for funds from the
State-Local Partnership Account in the Highway Safety, Traffic
Reduction, Air Quality, and Port Security Bond Fund of 2006.
This bill would require the commission, prior to the commencement
of each funding cycle, to calculate the amount of bond funds
designated to be deposited in the account that have not been
appropriated and would require the commission to establish projected
targets for the distribution of those funds for purposes of planning
projects for which letters of no prejudice may be issued, as
specified.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature in enacting this
act to enhance the ability of regional and local government entities
to deliver critical transportation capital improvement projects in an
expeditious manner.
SEC. 2. Section 8879.501 is added to the Government Code, to read:
8879.501. (a) A regional or local agency that is a lead applicant
agency for a project that may be funded pursuant to Chapter 12.49
(commencing with Section 8879.20), other than a project that may be
funded pursuant to paragraph (1) of subdivision (j) of Section
8879.23, may apply to the administrative agency for a letter of no
prejudice for the project or a component of the project.The
administrative agency may approve the letter of no prejudice for one
or more projects or project components that the administrative agency
has programmed 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 or otherwise approved for
that project or project component or, in the case of a project or
project component eligible for funding under subdivision (g) of
Section 8879.23, the letter may reference the amount of bond funding
targeted to be received by the regional or local agency pursuant to
subdivision (f) of Section 8879.72. The administrative agency may
approve a letter of no prejudice regardless of whether bond funding
has been previously appropriated for purposes of the project or
project component.
(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 applicable bond proceeds fund or account 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 Chapter 12.49 (commencing with Section 8879.20). 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 or otherwise approved for funding by the
administrative agency.
(5) There is in the applicable bond proceeds fund or account under
Chapter 12.49 (commencing with Section 8879.20) an appropriated
amount sufficient to make the reimbursement payment. Nothing in this
section requires any bond proceeds fund or account to be funded at
any particular time or in any particular amount.
(c) The administrative agency and the regional or local agency may
enter into an agreement or agreements governing reimbursement as
described in this section.
(d) The administrative agency, in consultation with regional and
local agencies, may develop guidelines to implement this section.
(e) Nothing in this section modifies any requirement under
Chapter 12.49 (commencing with Section 8879.23).
(f) For purposes of this section, "letter of no prejudice" means
an agreement between a regional or local agency and the
administrative agency 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.
SEC. 3. Section 8879.72 of the Government Code is amended to read:
8879.72. (a) To establish the funding shares for each eligible
applicant described in paragraph (1) of subdivision (a) of Section
8879.71, the commission shall do the following prior to the
commencement of a funding cycle:
(1) Determine the total amount of annual revenue generated from
voter-approved sales taxes, voter-approved parcel or property taxes,
and voter-approved bridge tolls dedicated to transportation
improvements according to the most recent available data reported to
the State Board of Equalization, the Controller, or the Bay Area Toll
Authority.
(2) Establish a northern California and southern California share
by attributing the proportional share of revenues from voter-approved
sales taxes, voter-approved parcel or property taxes, and
voter-approved bridge tolls dedicated to transportation improvements
and imposed in counties in northern California to the northern share,
and by attributing the proportional share of revenues from
voter-approved sales taxes imposed in counties located in southern
California to the southern share. The determination of whether a
county is located in northern or southern California shall be based
on the definitions set forth in Section 187 of the Streets and
Highways Code.
(3) Program funds made available to the southern share, based on
the determination in paragraph (2), shall be distributed to the
entity responsible for programming and allocating revenues from the
sales tax in proportion to the population of the county in which the
entity is located compared to the total population of southern
California counties with voter-approved sales taxes dedicated to
transportation improvements. For the purpose of calculating
population, the commission shall use the most recent information
available from the Department of Finance.
(4) Program funds made available to the northern share, based on
the determination in paragraph (2), shall be distributed as follows:
(A) Program funds generated by voter-approved bridge tolls and
voter-approved parcel or property taxes dedicated to transportation
improvements shall be distributed to the entity responsible for
programming and allocating revenues from the toll or tax based on the
proportional share of revenues generated by the toll or tax by that
entity in comparison to the total revenues generated by
voter-approved sales taxes, voter-approved parcel or property taxes,
and voter-approved bridge tolls dedicated to transportation
improvements in northern California.
(B) Program funds generated by voter-approved sales taxes
dedicated to transportation improvements shall be distributed to the
entity responsible for programming and allocating revenues from the
sales tax in proportion to the population of the county in which the
entity is located compared to the total population of the northern
California counties with voter-approved sales taxes dedicated to
transportation improvements. For the purposes of calculating
population, the commission shall use the most recent information
available for the Department of Finance.
(b) Under this section, each fiscal year in which funds are
appropriated for the program shall constitute a funding cycle.
(c) Each eligible applicant desiring to participate in the program
in any funding cycle under this section shall submit to the
commission all of the following:
(1) A description of the eligible project nominated for funding,
including a description of the project's cost, scope, and specific
improvements and benefits it is anticipated to achieve.
(2) A description of the project's current status, including the
phase of delivery the project is in at the time it is nominated for
funding and a schedule for the project's completion.
(3) A description of how the project would support transportation
and land use planning goals within the region.
(4) The amount of eligible local matching funds the applicant is
committing to the project.
(5) The amount of program funds the applicant seeks from the
program for the project.
(d) The commission shall review nominated projects under this
section and their accompanying documentation to ensure that each
nominated project meets the requirements of this article and to
confirm that each project has a commitment of the requisite amount of
eligible local matching funds as required in this article. Upon
conducting the review of the requirements and determining the
proposed projects to be in compliance with this article, the projects
shall be deemed eligible.
(e) An eligible applicant that is identified to receive an
allocation of funds under this section, but that does not submit a
project for funding in a funding cycle, may utilize its funding share
in a subsequent funding cycle.
(f) In addition to the requirements in subdivision (a), the
commission shall, prior to the commencement of a funding cycle,
calculate the amount of bond funds specified in subdivision (g) of
Section 8879.23 that have not been appropriated and shall establish,
using the distribution formula set forth in subdivision (a) of
Section 8879.71, projected targets for the distribution of those
funds for the purpose of planning consistent with Section 8879.501.
The commission shall annually review and revise these projected
targets.
