BILL NUMBER: AB 1072	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Eng

                        FEBRUARY 27, 2009

   An act to amend Section 8879.55 of, and to repeal Section 8879.56
of, the Government Code, relating to transportation, and declaring
the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1072, as introduced, Eng. Public Transportation Modernization,
Improvement, and Service Enhancement Account.
   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 transportation
purposes, including $4 billion for allocation to various public
transportation purposes. Of this amount, $3.6 billion is to be
deposited in the Public Transportation Modernization, Improvement,
and Service Enhancement Account (PTMISEA) for allocation, upon
appropriation, to transit operators and other agencies for transit
purposes. Existing law specifies the process for allocating available
funds in the PTMISEA for those purposes appropriated in the Budget
Act of 2008. Existing law makes these provisions inoperative on July
1, 2009, and repeals them on January 1, 2010.
   This bill would apply these provisions to funds appropriated for
these purposes from the PTMISEA by the Budget Act of 2009 and
subsequent fiscal years and would make other conforming changes. The
bill would require eligible project sponsors to provide the
Department of Transportation with project descriptions for projects
they plan to fund with PTMISEA funds yet to be appropriated for the
duration of the PTMISEA program. The bill would delete the
inoperative and repeal dates, thereby extending the operation of
these provisions indefinitely.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 8879.55 of the Government Code is amended to
read:
   8879.55.  For funds appropriated for fiscal year  2008-09
  2009-10 or any subsequent fiscal year  in the
 budget act of 2008   annual Budget Act 
from the Public Transportation Modernization, Improvement, and
Service Enhancement Account (PTMISEA)  ,  established
pursuant to paragraph (1) of subdivision (f) of Section 8879.23 
,   for the purposes of paragraph (3) of that subdivision
 , the following shall apply:
   (a) (1) Upon appropriation of funds from PTMISEA, the Controller
shall identify and develop a list of eligible project sponsors, as
defined in paragraph (2) of subdivision (h), and the amount each is
eligible to receive pursuant to the formula in paragraph (3) of
subdivision (f) of Section 8879.23.  It is the intent of the
Legislature that funds  Funds  allocated to project
sponsors pursuant to this section  shall  provide each
project sponsor with the same proportional share of funds as the
proportional share each received from the allocation of State Transit
Assistance funds, pursuant to Sections 99313 and 99314 of the Public
Utilities Code, over fiscal years 2004-05, 2005-06, and 2006-07.
 This formula shall apply to the remaining balance of funds in
the PTMISEA program. 
   (2) In establishing the amount of funding each project sponsor is
eligible to receive from funds to be allocated based on Section 99313
of the Public Utilities Code, the Controller shall make the
following computations:
   (A) For each project sponsor, compute the amounts of State Transit
Assistance funds allocated to that entity pursuant to Section 99313
of the Public Utilities Code during the 2004-05, 2005-06, and 2006-07
fiscal years.
   (B) Compute the total statewide allocation of State Transit
Assistance funds pursuant to Section 99313 of the Public Utilities
Code during the 2004-05, 2005-06, and 2006-07 fiscal years.
   (C) Divide subparagraph (A) by subparagraph (B).
   (D) For each project sponsor, multiply the allocation factor
computed pursuant to subparagraph (C) by 50 percent of the amount
appropriated for allocation from PTMISEA.
   (3) In establishing the amount of funding each project sponsor is
eligible to receive from funds to be allocated based on Section 99314
of the Public Utilities Code, the Controller shall make the
following computations:
   (A) For each project sponsor, compute the amounts of State Transit
Assistance funds allocated to that entity pursuant to Section 99314
of the Public Utilities Code during the 2004-05, 2005-06, and 2006-07
fiscal years.
   (B) Compute the total statewide allocation of State Transit
Assistance funds pursuant to Section 99314 of the Public Utilities
Code during the 2004-05, 2005-06, and 2006-07 fiscal years.
   (C) Divide subparagraph (A) by subparagraph (B).
   (D) For each project sponsor, multiply the allocation factor
computed pursuant to subparagraph (C) by 50 percent of the amount
appropriated for allocation from PTMISEA.
   (4) The Controller shall notify project sponsors of the amount of
funding each is eligible to receive from  the funds appropriated
from  PTMISEA  for the 2008-09   in each
 fiscal year based on  actual appropriations and  the
computations pursuant to subparagraph (D) of paragraph (2) and
subparagraph (D) of paragraph (3).
   (b) Prior to seeking a disbursement of funds for an eligible
PTMISEA capital project, a project sponsor on the list developed
pursuant to paragraph (1) of subdivision (a) shall submit to the
department a description of the proposed capital project or projects
it intends to fund with PTMISEA funds  for fiscal year
2008-09   in the current fiscal year  . The
description shall include all of the following:
   (1) A summary of the proposed project, which shall describe the
benefit the project intends to achieve.
   (2) The useful life of the project, which shall not be less than
the required useful life for capital assets pursuant to the State
General Obligation Bond Law (Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2), specifically subdivision
(a) of Section 16727.
   (3) The estimated schedule for the completion of the project.
   (4) The total cost of the proposed project, including the
identification of all funding sources necessary for the project to be
completed.
   (c) After receiving the information required to be submitted under
subdivision (b), the department shall review the information solely
to determine all of the following:
   (1) The project is consistent with the requirements for funding
under paragraph (1) of subdivision (f) of Section 8879.23.
   (2) The project is a capital improvement that meets the
requirements of the state's general obligation bond law and has a
useful life consistent with paragraph (2) of subdivision (b).
   (3) The project, or a minimum operable segment of the project, is,
or will become, fully funded with an allocation of funds from the
PTMISEA, and the funds can be encumbered within three years of the
allocation based on the department's review of the project's phase or
schedule for completion, as submitted by the project sponsor.
   (d) (1) Upon conducting the review required in subdivision (c) and
determining the proposed projects to be in compliance with the
requirements of that subdivision, the department shall biannually
adopt a list of projects eligible for an allocation from the funds
appropriated to the account in  the applicable  fiscal year
 2008-09  .
   (2) Upon adoption of the list by the department, the department
shall provide the list of projects eligible for funding  in the
current fiscal year  to the Controller.
   (e) Upon receipt of the information required in subdivision (d),
the Controller's office shall commence any necessary actions to
allocate funds to the project sponsors on the list of projects,
including, but not limited to, seeking the issuance of bonds for that
purpose. The total allocations to any one project sponsor shall not
exceed that project sponsor's share of funds from the PTMISEA
pursuant to the formula contained in subdivision (a).
   (f) The audit of public transportation operator finances already
required under the Transportation Development Act pursuant to Section
99245 of the Public Utilities Code shall be expanded to include
verification of receipt and appropriate expenditure of bond funds
pursuant to this section. Each sponsoring entity receiving bond funds
from this account in a fiscal year for which an audit is conducted
shall transmit a copy of the audit to the department, and the
department shall make the audits available to the Legislature and the
Controller for review on request.
   (g) The commission shall include in its annual report to the
Legislature, required by Section 14535, a summary of the state
agencies' activities related to the administration of funds from the
account, including the administration of funds made available to the
department for intercity rail improvements pursuant to paragraph (2)
of subdivision (f) of Section 8879.23. The summary, at a minimum,
shall include a description and the location of the projects funded
from the account, the amount of funds allocated to each project, the
status of each project, a description of the public benefit expected
from each project, and a designation of any projects that have been
subject to an audit under subdivision (f). The department and project
sponsors shall provide the commission with necessary information for
the preparation of the summary required under this subdivision.
   (h) For purposes of this section, the following terms shall have
the following meanings:
   (1) "Project" means a capital improvement authorized under
paragraph (1) of subdivision (f) of Section 8879.23 or a transit
capital project, including a bus, rail or waterborne transit capital
project, or minimum operable segment thereof, that is consistent with
the project sponsor's most recently adopted short-range transit
plan, or other publicly-adopted plan that programs or prioritizes the
expenditure of funds for transit capital improvements.
   (2) "Project sponsor" means a transit operator, including a rail
transit, commuter rail, bus, or waterborne transit operator, eligible
to receive an allocation of funds under the State Transit Assistance
program pursuant to Sections 99314 and 99314.3 of the Public
Utilities Code, or a local agency, including a transportation
planning agency, county transportation commission, or the San Diego
Metropolitan Transit Development Board, eligible to receive an
allocation of funds under the State Transit Assistance program
pursuant to Section 99313 of the Public Utilities Code.
   (i) A project sponsor that is identified to receive an allocation
of funds under this section  in a particular fiscal year  ,
but that does not submit a project for funding in  the
2008-09   that  fiscal year, may utilize its
funding share in a subsequent fiscal year. 
   (j) Prior to seeking a disbursement of funds in the 2009-10 fiscal
year, a project sponsor shall also submit to the department a
description of the projects it intends to fund with PTMISEA funds
that have yet to be appropriated. 
  SEC. 2.  Section 8879.56 of the Government Code is repealed.

   8879.56.  This article shall become inoperative on July 1, 2009,
and, as of January 1, 2010, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2010, deletes
or extends the dates on which it becomes inoperative and is
repealed. 
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to make statutory changes relative to provisions
governing transportation funds to implement the Budget Act of 2009,
it is necessary that this act take effect immediately.