Bill Text: CA AB672 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Amended.html

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BILL NUMBER: AB 672	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 21, 2009
	AMENDED IN ASSEMBLY  APRIL 14, 2009

INTRODUCED BY   Assembly  Member   Bass
  Members   Bass   and Eng 

                        FEBRUARY 25, 2009

   An act to add Section 8879.501 to the Government Code, relating to
transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 672, as amended, 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 that has been approved for bond funding to
apply to the administrative agency for a letter of no prejudice that
would allow the regional or local agency to expend its own funds for
any  bond-funded  component of the project, subject to later
reimbursement from bond proceeds, as specified.
   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.  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 has been approved for funding pursuant to
Chapter 12.49 (commencing with Section 8879.20) may apply to the
administrative agency for a letter of no prejudice for the project.
If approved by the administrative agency, the letter of no prejudice
shall allow the regional or local agency to expend its own funds for
any  bond-funded  component of the project.
   (b) A project may be considered for a letter of no prejudice and,
upon issuance of the letter of no prejudice, shall be eligible for
reimbursement under this section if all of the following apply:

   (1) The project is included in an adopted regional transportation
plan.  
   (2) An allocation for the project is made pursuant to Chapter
12.49 (commencing with Section 8879.20).  
   (1) The administrative agency makes an allocation for the project
pursuant to Section 8879.50.  
   (2) The project component for which the letter of no prejudice was
requested has been completed. 
   (3) The expenditures made by the regional or local agency are
eligible for reimbursement in accordance with state and federal laws
and procedures. If expenditures made are determined to be ineligible,
then the state has no obligation to reimburse for those
expenditures.
   (4) 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). 
   (c) The amount expended by the regional or local agency pursuant
to this section shall be promptly reimbursed by the state from
proceeds of the bonds sold pursuant to Chapter 12.49 (commencing with
Section 8879.20).  
   (c) Upon execution of an agreement with the administrative agency
to transfer reimbursement funds for a project described in
subdivision (a), the administrative agency may delay reimbursement
pursuant to this section only if cash management issues prevent
immediate repayment and upon the advice of the Treasurer. 
   (d) The administrative agency, in consultation with regional and
local agencies, may develop guidelines to implement this section.