Bill Text: CA SB277 | 2019-2020 | Regular Session | Amended

California Senate Bill 277 (Prior Session Legislation)

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

Bill Title: Road Maintenance and Rehabilitation Program: Local Partnership Program.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Vetoed) 2020-01-13 - Veto sustained. [SB277 Detail]

Download: California-2019-SB277-Amended.html

Amended IN Assembly July 01, 2019

Amended IN Assembly June 04, 2019

Amended IN Senate March 18, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill

No. 277

Introduced by Senator Beall
(Principal coauthor: Assembly Member Frazier)

February 13, 2019

An act to amend Section 2032 of, to amend and repeal Section 2033 of, and to add Section 2033.1 to, the Streets and Highways Code, relating to transportation.

LEGISLATIVE COUNSEL'S DIGEST

SB 277, as amended, Beall. Road Maintenance and Rehabilitation Program: Local Partnership Program.

Under existing law, the California Transportation Commission allocates various state and federal transportation funds through specified state programs to local and regional transportation agencies to implement projects consistent with the requirements of those programs. Existing law continuously appropriates $200,000,000 annually from the Road Maintenance and Rehabilitation Account for allocation by the commission for a program commonly known as the Local Partnership Program to local or regional transportation agencies that have sought and received voter approval of taxes or that have imposed certain fees, which taxes or fees are dedicated solely for road maintenance and rehabilitation and other transportation improvement projects. Existing law requires the commission, in cooperation with the Department of Transportation, transportation planning agencies, county transportation commissions, and other local agencies, to develop guidelines for the allocation of those moneys.

This bill would require the commission to apportion these funds on a formula basis to those of the local and regional transportation agencies described above that also have responsibility for funding, procuring, and constructing transportation improvements within their jurisdictions. annually deposit 85% of these funds into the Local Partnership Formula Subaccount, which the bill would create, and 15% of these funds in the Small Counties and Uniform Developer Fees Competitive Subaccount, which the bill would create. The bill would require the commission to apportion the funds in the Local Partnership Formula Subaccount pursuant to a specified formula to local or regional transportation agencies that meet certain eligibility requirements. The bill would require the commission to allocate funds in the Small Counties and Uniform Developer Fees Competitive Subaccount through a competitive grant program to local or regional transportation agencies that meet other eligibility requirements. The bill would require the commission, in conjunction with transportation planning agencies and county transportation commissions, and in consultation with other local agencies, to develop separate guidelines for the apportionment or allocation of ~~these~~ the funds in each subaccount that, among other things, ~~establish an apportionment formula, identify guaranteed minimum apportionments, and~~ establish the types of eligible projects consistent with specified requirements. In order to receive an apportionment of funds from the Local Partnership Formula Subaccount from the commission in a funding cycle, the bill would require an eligible entity to submit to the commission a list of projects proposed to be funded with the funds. The bill would require the commission to approve a project list submitted by a local or regional transportation agency unless a project identified in the project list is not consistent with the project eligibility guidelines.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 2032 of the Streets and Highways Code is amended to read:

2032.

(a) (1) After deducting the amounts appropriated in the annual Budget Act, as provided in Section 2031.5, two hundred million dollars ($200,000,000) of the remaining revenues deposited in the Road Maintenance and Rehabilitation Account shall be set aside annually for eligible entities. The Controller shall each month set aside one-twelfth of this amount, except in fiscal year 2017–18, the Controller shall set aside one-eighth of this amount, to accumulate a total of two hundred million dollars ($200,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.

(2) Eligible projects under this subdivision include, but not are limited to, sound walls for a freeway that was built before 1987 without sound walls and with or without high-occupancy vehicle lanes if the completion of the sound walls has been deferred due to lack of available funding for at least 20 years and a noise barrier scope summary report has been completed within the last 20 years.

(3) Notwithstanding Section 13340 of the Government Code, the funds available under this subdivision in each fiscal year are hereby continuously appropriated for apportionment ~~on a formula basis to eligible entities~~ or allocation by the commission for road maintenance and rehabilitation and other transportation improvement projects pursuant to Section 2033 or 2033.1, as applicable.

(4) For purposes of this subdivision, an “eligible entity” means a local or regional transportation agency that has responsibility for funding, procuring, or constructing transportation improvements within its jurisdiction, and that does either of the ~~following:~~ following, as further specified in subdivision (b) of Section 2033.1:

(A) Has sought and received voter approval for the imposition of taxes or fees dedicated solely to transportation improvements and administers those taxes or fees.

(B) Has imposed uniform developer fees, as defined by subdivision (b) of Section 8879.67 of the Government Code.

(b) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amount allocated in subdivision (a), beginning in the 2017–18 fiscal year, one hundred million dollars ($100,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, on the Active Transportation Program created pursuant to Chapter 8 (commencing with Section 2380) of Division 3 to be allocated by the California Transportation Commission pursuant to Section 2381. The Controller shall each month set aside one-twelfth of this amount, except in the 2017–18 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of one hundred million dollars ($100,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.

(c) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) and (b), beginning in the 2017–18 fiscal year, four hundred million dollars ($400,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for bridge and culvert maintenance and rehabilitation. The Controller shall each month set aside one-twelfth of this amount, except in the 2017–18 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of four hundred million dollars ($400,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.

(d) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a), (b), and (c), beginning in the 2017–18 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be transferred annually to the State Highway Account for expenditure, upon appropriation by the Legislature, to supplement the freeway service patrol program. The Controller shall each month set aside one-twelfth of this amount, except in the 2017–18 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.

(e) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a), (b), (c), and (d), in the 2017–18, 2018–19, 2019–20, 2020–21, and 2021–22 fiscal years, from revenues in the Road Maintenance and Rehabilitation Account that are not subject to Article XIX of the California Constitution, five million dollars ($5,000,000) shall be appropriated in each fiscal year to the California Workforce Development Board to assist local agencies to implement policies to promote preapprenticeship training programs to carry out the projects that are funded by the account pursuant to Section 2038. Funds appropriated pursuant to this subdivision in the Budget Act but remaining unexpended at the end of each applicable fiscal year shall be reappropriated for the same purposes in the following year’s Budget Act, but all funds appropriated or reappropriated pursuant to this subdivision in the Budget Act shall be liquidated no later than June 30, 2027.

(f) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a), (b), (c), (d), and (e), beginning in the 2017–18 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for local planning grants, as described in Section 2033.5. The Controller shall each month set aside one-twelfth of this amount, except in the 2017–18 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.

(g) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a), (b), (c), (d), (e), and (f), beginning in the 2017–18 fiscal year and each fiscal year thereafter, from the remaining revenues, five million dollars ($5,000,000) shall be available, upon appropriation, to the University of California for the purpose of conducting transportation research and two million dollars ($2,000,000) shall be available, upon appropriation, to the California State University for the purpose of conducting transportation research and transportation-related workforce education, training, and development. Before the start of each fiscal year, the Secretary of Transportation and the chairs of the Assembly Committee on Transportation and the Senate Committee on Transportation and Housing may set out a recommended priority list of research components to be addressed in the upcoming fiscal year.

(h) Notwithstanding Section 13340 of the Government Code, the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account are hereby continuously appropriated as follows:

(1) Fifty percent for allocation to the department for maintenance of the state highway system or for purposes of the state highway operation and protection program.

(2) Fifty percent for apportionment to cities and counties by the Controller pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103 for the purposes authorized by this chapter.

SEC. 2.

Section 2033 of the Streets and Highways Code is amended to read:

2033.

(a) On or before January 1, 2018, the commission, in cooperation with the department, transportation planning agencies, county transportation commissions, and other local agencies, shall develop guidelines for the allocation of funds pursuant to subdivision (a) of Section 2032.

(b) The guidelines shall be the complete and full statement of the policy, standards, and criteria that the commission intends to use to determine how these funds will be allocated.

(d) The guidelines may include streamlining of project delivery by authorizing local or regional transportation agencies to seek commission approval of a letter of no prejudice that allows the agency to expend its own funds in advance of an allocation of funds by the commission, and to be reimbursed at a later time for eligible expenditures. A letter of no prejudice shall only be available to local or regional transportation agencies for moneys that have been identified for future allocation to the applicant agency. Moneys designated pursuant to subdivision (a) of Section 2032 shall ~~only~~ be reimbursed only when there is funding available in an amount sufficient to make the reimbursement.

(e) The guidelines developed pursuant to this section shall ~~only~~ apply only to programming cycle 1 and 2 of the formulaic program, as described in commission resolution G-17-33, and programming cycle 1 of the competitive program, as described in commission resolution G-17-33.

(f) This section shall remain in effect only until January 1, 2024, and as of that date is repealed.

SEC. 3.

Section 2033.1 is added to the Streets and Highways Code, to read:

2033.1.

(a) ~~(1)On~~ For purposes of apportioning and allocating the funds that are continuously appropriated in each fiscal year pursuant to subdivision (a) of Section 2032, the commission shall segregate the funds into two separate subaccounts as follows:

(1) Eighty-five percent of the funds shall be deposited into the Local Partnership Formula Subaccount, which is hereby created.
(2) Fifteen percent of the funds shall be deposited into the Small Counties and Uniform Developer Fees Competitive Subaccount, which is hereby created.
(b) (1) The commission shall apportion the funds in the Local Partnership Formula Subaccount to eligible entities, as defined in subparagraph (A) of paragraph (4) of subdivision (a) of Section 2032, pursuant to the formula established in subdivision (f) and in accordance with the other applicable requirements of this section.
(2) The commission shall allocate the funds in the Small Counties and Uniform Developer Fees Competitive Subaccount through a competitive grant program to eligible entities, as defined in subparagraph (A) of paragraph (4) of subdivision (a) of Section 2032 that have a population of less than 750,000, and to eligible entities, as defined in subparagraph (B) of paragraph (4) of subdivision (a) of Section 2032, in accordance with the applicable requirements of this section. For the purpose of calculating population, the commission shall use the most recent information available from the Department of Finance.

(c) (1) On or before April 1, 2020, the commission, in conjunction with transportation planning agencies and county transportation commissions, and in consultation with other local agencies, shall develop separate guidelines for the apportionment or allocation, as applicable, of funds ~~pursuant to subdivision (a) of Section 2032.~~ deposited in the Local Partnership Formula Subaccount and the Small Counties and Uniform Developer Fees Competitive Subaccount.

(2) ~~The~~ Each set of guidelines shall be the complete and full statement of the policy, standards, and criteria that the commission intends to use to determine how ~~these~~ the funds in each subaccount will be apportioned.

(3) ~~The~~ Each set of guidelines shall do, but are not limited to doing, all of the ~~following regarding the appointment of these funds:~~ following:

~~(A)Identify guaranteed minimum apportionment for eligible entities.~~
~~(B)~~

(A) Identify eligible local matching funds.

~~(C)Establish an apportionment formula for these funds.~~
~~(D)~~

(B) Establish the types of eligible projects consistent with subdivision ~~(b).~~ (d).

~~(E)~~

(C) Authorize an eligible entity to retain its apportionment from the Local Partnership Formula Subaccount to accumulate and use that apportionment in a subsequent year for a larger expenditure. An eligible entity may only retain its apportionment for five years.

(4) The guidelines may include streamlining of project delivery by authorizing eligible entities to seek commission approval of a letter of no prejudice that allows the entity to expend its own funds in advance of an apportionment of funds by the commission, and to be reimbursed at a later time for eligible expenditures. A letter of no prejudice shall only be available to eligible entities for moneys that have been identified for future apportionment to the applicant entity. Moneys designated pursuant to subdivision (a) of Section 2032 shall ~~only~~ be reimbursed only when there is funding available in an amount sufficient to make the reimbursement.

(5) The commission may amend the adopted guidelines after conducting at least one public hearing.

~~(b)~~

(d) A project is eligible to receive funding pursuant to subdivision (a) of Section 2032 if it is eligible pursuant to subdivision (b) of Section 2030 and is consistent with Section 2 of Article XIX of the California Constitution.

~~(c)~~

(e) (1) In order to receive an apportionment of funds ~~pursuant to subdivision (a) of Section 2032~~ from the Local Partnership Formula Subaccount from the commission in a funding cycle, an eligible entity shall submit to the commission a list of projects proposed to be funded with these funds. All projects proposed to receive funding shall be adopted by resolution by the eligible entity at a regular public meeting. The list of projects proposed to be funded with these funds shall include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement.

(2) The commission shall approve a project list submitted by an eligible entity pursuant to paragraph (1) unless a project identified in the project list is not consistent with project eligibility requirements.

~~(d)For purposes of this section, “eligible entity” has the same meaning as defined in subdivision (a) of Section 2032.~~
(f) To establish the apportionments from the Local Partnership Formula Subaccount for each eligible entity, the commission shall do all of the following before 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 Department of Tax and Fee Administration, 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.
(3) Program funds made available to the southern share, based on the determination in paragraph (2), shall be apportioned to each eligible entity responsible for programming and allocating revenues from the sales tax in proportion to the following:
(A) Seventy-five percent based on 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.
(B) Twenty-five percent based on the total amount of sales tax revenue generated from the total number of sales tax measures dedicated to transportation improvements administered by an eligible entity compared to the total amount of sales tax revenue generated from voter-approved sales tax measures dedicated to transportation improvements in southern California. For the purpose of calculating sales tax revenue, the commission shall use the most recent information available from Department of Tax and Fee Administration.
(4) Program funds made available to the northern share, based on the determination in paragraph (2), shall be apportioned as follows:
(A) Program funds generated by voter-approved bridge tolls and voter-approved parcel or property taxes dedicated to transportation improvements shall be apportioned 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 apportioned to each eligible entity responsible for programming and allocating revenues from the sales tax in proportion to the following:
(i) Seventy-five percent based on the population of the county in which the entity is located compared to the total population of northern 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.
(ii) Twenty-five percent based on the total amount of sales tax revenue generated from the total number of sales tax measures dedicated to transportation improvements administered by an eligible entity compared to the total amount of sales tax revenue generated from voter-approved sales tax measures dedicated to transportation improvements in northern California. For the purpose of calculating sales tax revenue, the commission shall use the most recent information available from the Department of Tax and Fee Administration.
~~(e)The guidelines developed pursuant to this~~

(g) This section shall apply to programming cycles beginning after the programming cycles described in subdivision (e) of Section 2033, as it read on January 1, 2020.