BILL NUMBER: SB 85	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 12, 2013

INTRODUCED BY   Committee on Budget and Fiscal Review

                        JANUARY 10, 2013

    An act relating to the Budget Act of 2013.  
An act to amend Sections 14556.5, 16773, and 16965 of the Government
Code, t   o add Chapter 5 (commencing with Section 185500)
to Division 19.5 of, and to repeal and add Section 99310.6 of, the
Public Utilities Code, to amend Section 7105 of, and to repeal and
add Section 7104.3 of, the Revenue and Taxation Code, to amend
Sections 183 and 183.1 of the Streets and Highways Code, and to amend
Sections 9400.1, 9400.4, and 42205 of the Vehicle Code, relating to
transportation, and making an appropriation therefor, to take effect
immediately, bill related to the budget. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 85, as amended, Committee on Budget and Fiscal Review. 
Budget Act of 2013.   Transportation.  
   (1) Existing law authorizes general obligation bonds to be issued
and sold under various transportation bond measures approved by the
voters. Debt service for general obligation bonds is generally
payable from the General Fund.  
   Existing law provides for the imposition of weight fees on certain
vehicles. Revenues from weight fees, after administrative expenses,
are available for expenditure from the State Highway Account. Under
Article XIX of the California Constitution, weight fee revenues are
restricted to expenditure on certain transportation purposes. 

   Existing law, beginning with the 2012-13 fiscal year, provides for
the transfer to the Transportation Debt Service Fund of weight fee
revenues deposited in the State Highway Account. These revenues are
then transferred from the Transportation Debt Service Fund to the
General Fund, as reimbursement for debt service on certain
transportation general obligation bonds until all of the eligible
debt service on those bonds has been reimbursed, or to redeem or
defease bonds that are maturing in a subsequent fiscal year. Existing
law also provides for a loan to the General Fund of any of these
weight fee revenues that are not immediately needed for debt service
reimbursement purposes, but provides for the loans to be repaid when
those revenues are needed for debt service reimbursement purposes at
a later time, as specified.  
   This bill would create a class of transportation general
obligation bonds known as designated bonds, which would be a portion
of the transportation general obligation bonds issued and sold
pursuant to Proposition 1B of 2006. The bill would provide for
transfer, pursuant to a certificate of the Treasurer, of a certain
amount of weight fee revenue to the Transportation Debt Service Fund
for the purpose of directly paying the debt service on the designated
bonds, rather than providing for payment of the debt service
indirectly through reimbursement of the General Fund. These weight
fee revenues would be deposited in the newly created Transportation
Bond Direct Payment Account in the Transportation Debt Service Fund
and would be continuously appropriated for that purpose. To the
extent the transferred weight fee revenues are insufficient to pay
all the debt service on the designated bonds, the General Fund would
remain responsible for the remaining debt service. The weight fee
revenue to be used to pay debt service on the designated bonds would
generally be the amount of weight fee revenue received by the
Controller from the 15th day to the last day of each month. The
remaining weight fee revenue would be used to pay the debt service on
certain other transportation general obligation bonds. This bill
would provide that the state covenants with bondholders of designated
bonds that it will not alter, amend, or restrict the statutory
provisions in this bill that provide for the transfer of weight fees
to the Transportation Debt Service Fund or the Transportation Bond
Direct Payment Account, and that it will not reduce weight fees below
a specified amount on and after the first date that designated bonds
are issued. The bill would enact other related provisions. 

   (2) Existing law provides that the Department of Finance may
adjust the budgeting, accounting, and reporting systems for various
transportation funds and accounts so that unliquidated encumbrances
are not reflected in the fund balance or financial statements. These
provisions apply to the Public Transportation Account, the State
Highway Account, the Traffic Congestion Relief Fund, the
Transportation Investment Fund, and the Transportation Deferred
Investment Fund.  
   This bill would delete these provisions and instead provide that,
upon order of the Department of Finance, all or some of the state
agencies collecting revenues for, or spending from, each of these
funds or accounts shall adjust budgeting, accounting, and reporting
systems and documents so that unliquidated encumbrances, payables,
and other accruals are not reflected in the fund balance in the
Governor's Budget fund condition display or the fund balance in the
financial statements submitted to the Controller for the
budgetary-legal basis annual report. In addition, this bill would
provide that the balance of cash advanced from each of these funds
and accounts to the Transportation Revolving Account shall be deemed
available for budgeting purposes to certain funds and accounts, as
specified.  
   (3) Existing law, the California High-Speed Rail Act, creates the
High-Speed Rail Authority to develop and implement a high-speed rail
system in the state, with specified powers and duties, including the
power to enter into contracts, as specified.  
   This bill would provide legal procedures for the relocation of
publicly and privately owned utility facilities, as defined, when the
authority requires any utility to remove any utility facility
lawfully maintained in the right-of-way of any high-speed rail
property to a location entirely outside the high-speed rail property
right-of-way subject to specified conditions. The bill would
generally require the authority to pay the reasonable and necessary
cost of the removal, including the cost of relocation to a new
location outside of the high-speed rail property right-of-way,
subject to specified credits.  
   The bill would authorize the authority and any utility to enter
into a specified agreement or contract to remove or relocate any
utility facility that provides for, among other things, the
respective amounts of the cost to be borne by each party or that
apportions the obligations and costs of each party. The bill would
authorize each party to bring an action in a court of competent
jurisdiction to adjudicate the obligations and costs to be borne by
each party or in the event of a failure to reach an agreement as
provided under these provisions.  
   The bill would also authorize the authority to issue permits to
utilities for specified purposes, including applications of utilities
for permits to occupy high-speed rail property for longitudinal
locations of utility facilities.  
   (4) Existing law, in the 2010-11, 2011-12, and 2012-13 fiscal
years, requires certain revenues deposited in the State Highway
Account that are not restricted as to expenditure by Article XIX of
the California Constitution to be transferred to the Transportation
Debt Service Fund in the State Transportation Fund for payment of
current year debt service on certain mass transportation bonds.
Existing law, commencing with the 2013-14 fiscal year, requires that
these revenues be retained in the State Highway Account until
appropriated by the Legislature.  
   This bill would delete this latter requirement and, instead,
commencing with the 2013-14 fiscal year, would require the Controller
to transfer these revenues to the Transportation Debt Service Fund
in the State Transportation Fund, as specified, and would
continuously appropriate these funds for payment of current year debt
service on certain mass transportation bonds.  
   (5) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
 
   This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2013. 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee:  no   yes  .
State-mandated local program: no.


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

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) Voters of the state have previously approved Proposition 1B,
the Highway Safety, Traffic Reduction, Air Quality, and Port Security
Bond Act of 2006 (bond act) to provide funding for needed
improvements in transportation infrastructure in the state. 

   (b) While the bond act provided that the debt service on bonds
would be paid from the General Fund, on March 24, 2011, the
Legislature enacted Assembly Bill 105 (Chapter 6, Statutes of 2011),
which provided for reimbursement to the General Fund of all debt
service costs with respect to these bonds issued under the bond act
to come from vehicle weight fees generated under the Vehicle Code.
 
   (c) If debt service with respect to the bonds could be paid in the
first instance from vehicle weight fees, with the General Fund as a
backstop, creating "enhanced" transportation bonds, those bonds would
be expected to be able to obtain higher credit ratings from the
national credit rating agencies, resulting in lower interest costs to
the state. In addition, market demand for the enhanced bonds
potentially could lower the costs of other general obligation bonds
by reducing the supply of bonds being sold under the state's regular
credit.  
   (d) The creation of enhanced transportation bonds is consistent
with the purposes of the bond act as it does not change the use of
bond proceeds or programs that are funded by any bonds issued under
the bond act. Moreover, it does not alter the rights of bondholders
but would serve to reduce debt service costs or achieve additional
benefits for the state in a manner that would not violate any
expectations of the voters and taxpayers who approved the bond act.

   SEC. 2.    Section 14556.5 of the   
 Government Code   is amended to read: 
   14556.5.  (a) The Traffic Congestion Relief Fund is hereby created
in the State Treasury. The fund shall include deposits of funds
provided in the annual Budget Act, provided from the Transportation
Investment Fund established under Section 7104 of the Revenue and
Taxation Code, or provided under any other statute. Notwithstanding
Section 13340, the money in the fund is hereby continuously
appropriated to the department, without regard to fiscal years, as
follows:
   (1) For allocation by the department, as directed by the
commission pursuant to Section 14556.20, to the department and other
regional and local transportation entities for the projects listed in
Article 5 (commencing with Section 14556.40). 
   (2) For allocation by the Controller, the sum of four hundred
million dollars ($400,000,000), for allocation during the 2000-01
fiscal year to cities, counties, and cities and counties, pursuant to
Section 2182 of the Streets and Highways Code.  
   (3) 
    (2)  For allocation by the commission to the funding
exchange program authorized by Section 182.8 of the Streets and
Highways Code. 
   (b) Notwithstanding any other provision of law, the Department of
Finance may adjust the budgeting, accounting, and reporting system
for the fund so that unliquidated encumbrances are not reflected in
the fund balance or financial statements.  
   (b) (1) Notwithstanding any other provision of law, upon order of
the Department of Finance, all or some of the state agencies
collecting revenue for, or spending from, the Traffic Congestion
Relief Fund shall adjust budgeting, accounting, and reporting systems
and documents so that unliquidated encumbrances, payables, and other
accruals are not reflected in the fund balance in the Governor's
Budget fund condition display or the fund balance in the financial
statements submitted to the Controller for the Budgetary/Legal Basis
Annual Report.  
   (2) For the purposes of the Governor's Budget, the balance of cash
advanced from the Traffic Congestion Relief Fund to the
Transportation Revolving Account, as jointly determined by the
Department of Finance and the state agencies referenced in paragraph
(1), shall be deemed as resources and cash available to the Traffic
Congestion Relief Fund for budgeting purposes.  
   (3) This method shall be effective with the 2013-14 Governor's
Budget development process and may be applied to the 2011-12 data.

   SEC. 3.    Section 16773 of the   Government
Code   is amended to read: 
   16773.   (a)    Whenever any payment of
principal of any bonds shall become due, either upon the maturity of
any of the bonds or upon the redemption thereof prior to maturity,
and whenever any interest on any of the bonds shall fall due,
warrants shall be drawn against the appropriation made by the bond
act from the General Fund by the Controller in favor of the
Treasurer, or state fiscal agents, or other duly authorized agents,
pursuant to claims filed with the Controller by the Treasurer, in the
amounts so falling due.  For 
    (b)     For  any payments of debt
service, as defined in subdivision (c) of Section 998.404 of the
Military and Veterans Code, with respect to any bonds issued pursuant
to a veterans' farm and home purchase bond act adopted pursuant to
Chapter 6 (commencing with Section 980) of Division 4 of the Military
and Veterans Code, the Controller shall first draw warrants against
the appropriation from the Veterans' Bonds Payment Fund in Section
988.6 of the Military and Veterans Code, and, to the extent moneys in
that fund are insufficient to pay the amount of debt service then
due, shall draw warrants against the appropriation made by the bond
act from the General Fund for payment of any remaining amount then
due. 
   (c) (1) For any payments of debt service, as defined in paragraph
(4) of subdivision (a) of Section 16965, with respect to any
designated bonds issued pursuant to Proposition 1B, the Controller
shall first draw warrants against the appropriation from the
Transportation Bond Direct Payment Account of the Transportation Debt
Service Fund created by subdivision (a) of Section 16965, and, to
the extent moneys in that account are insufficient to pay the amount
of debt service then due, shall draw warrants from the General Fund
for payment of any remaining amount then due against such
appropriation as may be available therefor, including the
appropriation made by Proposition 1B.  
   (2) (A) For purposes of this subdivision and Section 16965,
"Proposition 1B" means the Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006 (Chapter 12.49
(commencing with Section 8879.20) of Division 1).  
   (B) For purposes of this subdivision, Section 16965, and Section
9400.4 of the Vehicle Code, the term "designated bond" means any
designated bond under Proposition 1B, and the term "nondesignated
bond" means any bond issued under Proposition 1B, whether issued
before or after the enactment of the act adding this subdivision,
that is not a designated bond. For purposes of this subdivision, a
"designated bond" is an issue of bonds (including refunding bonds)
under Proposition 1B that has been designated by the Treasurer upon
or prior to its issuance, with the approval of the related finance
committee, to be paid pursuant to paragraph (1). 
   SEC. 4.    Section 16965 of the   Government
Code   is amended to read: 
   16965.  (a)  (1)   The Transportation Debt
Service Fund is hereby created in the State Treasury. Moneys in the
fund shall  , among other things, as provided in this
section,  be dedicated to  payment  
all of the following purposes: 
    (A)    Payment  of debt service
 on bonds, or to redeem or defease   with
respect to designated bonds, as defined in subdivision (c) of Section
16773, and as further provided in paragraph (3) and subdivision (b).
 
   (B) To reimburse the General Fund for debt service with respect to
bonds. 
    (C)     To redeem or retire  bonds,
pursuant to Section 16774, maturing in a subsequent fiscal 
year, including   year. 
    (2)    The bonds eligible under
subparagraph (B) or (C) of paragraph (1) include  bonds issued
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), the Passenger Rail and Clean Air Bond Act of
1990 (Chapter 17 (commencing with Section 2701) of Division 3 of the
Streets and Highways Code), the Seismic Retrofit Bond Act of 1996
(Chapter 12.48 (commencing with Section 8879) of Division 1 of Title
2),  the Highway Safety, Traffic Reduction, Air Quality, and
Port Security Bond Act of 2006 (Chapter 12.49 (commencing with
Section 8879.20) of Division 1 of Title 2),  and the Safe,
Reliable High-Speed Passenger Train Bond Act for the 21st Century
(Chapter 20 (commencing with Section 2704) of Division 3 of the
Streets and Highways Code)  , and nondesignated bonds under
Proposition 1B, as defined in subdivision (c) of Section 16773 
.  If the moneys in the fund are insufficient to pay the
balance of the debt consistent with existing obligations, the General
Fund will be used to pay the balance of any debt service. 

   (3) (A) The Transportation Bond Direct Payment Account is hereby
created in the State Treasury, as a subaccount within the
Transportation Debt Service Fund, for the purpose of directly paying
the debt service, as defined in paragraph (4), of designated bonds of
Proposition 1B, as defined in subdivision (c) of Section 16773.
Notwithstanding Section 13340, moneys in the Transportation Bond
Direct Payment Account are continuously appropriated for payment of
debt service with respect to designated bonds as provided in
subdivision (c) of Section 16773. So long as any designated bonds
remain outstanding, the moneys in the Transportation Bond Direct
Payment Account may not be used for any other purpose, and may not be
borrowed by or available for transfer to the General Fund pursuant
to Section 16310 or any similar law, or to the General Cash Revolving
Fund pursuant to Section 16381 or any similar law.  
   (B) Once the Treasurer makes a certification that payment of debt
service with respect to all designated bonds has been paid or
provided for, any remaining moneys in the Transportation Bond Direct
Payment Account shall be transferred back to the Transportation Debt
Service Fund.  
   (C) The moneys in the Transportation Bond Direct Payment Account
shall be invested in the Surplus Money Investment Fund, and all
investment earnings shall accrue to the account.  
   (D) The Controller may establish subaccounts within the
Transportation Bond Direct Payment Account as may be required by the
resolution, indenture, or other documents governing any designated
bonds.  
   (4) For purposes of this subdivision and subdivision (b), and
subdivision (c) of Section 16773, "debt service" means payment of all
of the following costs and expenses with respect to any designated
bond:  
   (A) The principal of and interest on the bonds.  
   (B) Amounts payable as the result of tender on any bonds, as
described in clause (iv) of subparagraph (B) of paragraph (1) of
subdivision (d) of Section 16731.  
   (C) Amounts payable under any contractual obligation of the state
to repay advances and pay interest thereon under a credit enhancement
or liquidity agreement as described in clause (iv) of subparagraph
(B) of paragraph (1) of subdivision (d) of Section 16731.  
   (D) Any amount owed by the state to a counterparty after any
offset for payments owed to the state on any hedging contract as
described in subparagraph (A) of paragraph (2) of subdivision (d) of
Section 16731. 
   (b) From  the  moneys transferred to the fund pursuant to
 paragraph (2) or (3) of  subdivision  (a), (b), or
 (c) of Section 9400.4 of the Vehicle Code,  or
  there shall first be deposited into the Transportation
Bond Direct Payment Account in each month   sufficient
 funds to equal the amount designated in a certificate submitted
by the Treasurer to the Controller and the Director of Finance at
the start of each fiscal year, and as may be modified by the
Treasurer thereafter upon issuance of any new issue of designated
bonds   or upon change in circumstances that requires such a
modification. This certificate shall be calculated by the Treasurer
to identify, for each month, the amount necessary to fund all of the
debt service with respect to all designated bonds. This calculation
shall be done in a manner provided in the resolution, indenture, or
other documents governing the designated bonds. In the event that
transfers to the Transportation Bond Direct Payment Account in any
month are less than the amounts required in the Treasurer's
certificate, the shortfall shall carry over to be part of the
required payment in the succeeding month or months.  
   (c) The state hereby covenants with the holders from time to time
of any designated bonds that it will not alter, amend, or restrict
the provisions of subdivision (c) of Section 16773 of the Government
Code, or Sections 9400, 9400.1, 9400.4, and 42205 of the Vehicle
Code, which provide directly or indirectly for the transfer of weight
fees to the Transportation Debt Service Fund or the Transportation
Bond Direct Payment Account, or subdivisions (a) and (b) of this
section, or reduce the rate of imposition of vehicle weight fees
under Sections 9400 and 9400.1 of the Vehicle Code as they existed on
the date of the first issuance of any designated bonds, if that
alteration, amendment, restriction, or reduction would result in
projected weight fees for the next fiscal year determined by the
Director of Finance being less than two times the maximum annual debt
service with respect to all outstanding designated bonds, as such
calculation is determined pursuant to the resolution, indenture, or
other documents governing the designated bonds. The state may include
this covenant in the resolution, indenture, or other documents
governing the designated bonds. 
    (d)     Once the required monthly deposit,
including makeup of any shortfalls from any prior month, has been
made pursuant to subdivision (b), from moneys transferred to the fund
pursuant to paragraph (2) or (3) of subdivision (c) of Section
9400.4 of the Vehicle Code, or  pursuant to Section 16965.1 or
63048.67, the Controller shall transfer as an expenditure reduction
to the General Fund any amount necessary to offset the cost of
current year debt service payments made from the General Fund
 on   with respect to  any bonds issued
pursuant to Proposition 192 (1996) and three-quarters of the amount
of current year debt service payments made from the General Fund
 on any bonds   with respect to any
nondesignated bonds, as defined in subdivision (c) of Section 16773,
 issued pursuant to Proposition 1B (2006).  These
  In the alternative, these  funds may also be used
to redeem or  defease   retire  the
applicable bonds, pursuant to Section 16774, maturing in a subsequent
fiscal year as directed by the Director of Finance. 
   (c) 
    (e)  From moneys transferred to the fund pursuant to
Section 183.1 of the Streets and Highways Code, the Controller shall
transfer as an expenditure reduction to the General Fund any amount
necessary to offset the cost of current year debt service payments
made from the General Fund  on   with respect to
 any bonds issued pursuant to Proposition 116 (1990). 
These   In the alternative, these  funds may also
be used to redeem or  defease   retire  the
applicable bonds, pursuant to Section 16774, maturing in a
subsequent fiscal year as directed by the Director of Finance.

   (d) From 
    (f)     Once the required monthly deposit,
including makeup of any shortfalls from any prior month, has bee
  n made pursuant to subdivision (b), from  moneys
transferred to the fund pursuant to  paragraph (2) or (3) of
 subdivision  (a), (b), or  (c) of Section
9400.4 of the Vehicle Code, or pursuant to Section 16965.1 or
63048.67, the Controller shall transfer as an expenditure reduction
to the General Fund any amount necessary to offset the  eligible
 cost of current year debt service payments made from the
General Fund  on   with respect to  any
bonds issued pursuant to Proposition 108 (1990) and Proposition 1A
(2008), and one-quarter of the amount of current year debt service
payments made from the General Fund  on any bonds 
 with respect to any nondesignated bonds, as defined in
subdivision (c) of Section 16773,  issued pursuant to
Proposition 1B (2006). The Department of Finance shall notify the
Controller by July 30 of every year of the percentage of debt service
that is expected to be paid in that fiscal year  on
  with respect to  bond-funded projects that
qualify as eligible guideway projects consistent with the
requirements applicable to the expenditure of revenues under Article
XIX of the California Constitution  , and the Controller shall
make payments only for those eligible projects  .  These
  In the alternative, these  funds may also be
used to redeem or  defease   retire  the
applicable bonds, pursuant to Section 16774, maturing in a subsequent
fiscal year as directed by the Director of Finance. 
   (e) 
    (g)  On or before the second business day following the
date on which transfers are made to the Transportation Debt Service
Fund  , and after the required monthly deposits for that month,
including makeup of any shortfalls from any prior month, have been
made to the Transportation Bond Direct Payment Account,  the
Controller shall transfer the funds designated for  reimbursement
of  bond debt service  with respect to nondesignated bonds,
as defined in subdivision (c) of Section 16773, and other bonds
identified in subdivisions (d), (e), and (f)  in that month from
the fund to the General Fund pursuant to this section.
   SEC. 5.    Section 99310.6 of the   Public
Utilities Code   is repealed.  
   99310.6.  Notwithstanding any other provision of law, the
Department of Finance may adjust the budgeting, accounting, and
reporting system for the Public Transportation Account so that
unliquidated encumbrances are not reflected in the fund balance or
financial statements. 
   SEC. 6.    Section 99310.6 is added to the  
Public Utilities Code   , to read:  
   99310.6.  (a) Notwithstanding any other provision of law, upon
order of the Department of Finance, all or some of the state agencies
collecting revenue for, or spending from, the Public Transportation
Account shall adjust budgeting, accounting, and reporting systems and
documents so that unliquidated encumbrances, payables, and other
accruals are not reflected in the fund balance in the Governor's
Budget fund condition display or the fund balance in the financial
statements submitted to the Controller for the budgetary-legal basis
annual report.
   (b) For the purposes of the Governor's Budget, the balance of cash
advanced from the Public Transportation Account to the
Transportation Revolving Account, as jointly determined by the
Department of Finance and the state agencies referenced in
subdivision (a), shall be deemed as resources and cash available to
the Public Transportation Account for budgeting purposes.
   (c) This method shall be effective with the 2013-14 Governor's
Budget development process and may be applied to the 2011-12 data.

   SEC. 7.    Chapter 5 (commencing with Section 185500)
is added to Division 19.5 of the   Public Utilities Code
  , to read:  
      CHAPTER 5.  RELOCATION OF UTILITIES


   185500.  (a) "High-speed rail property" means real property or an
interest therein, including any right-of-way, previously or hereafter
acquired by the state for high-speed rail purposes.
   (b) "Person" means a natural person, firm, partnership,
association, corporation, organization, limited liability company, or
business trust, and includes any city, county, city and county,
public corporation, or public district.
   (c) "Utility" means any person maintaining a utility facility.
   (d) "Utility facility" means any pole, pole line, pipe, pipeline,
conduit, cable, aqueduct, or other structure or appurtenance thereof
used for publicly or privately owned utility services or used by any
mutual organization supplying water or telephone service to its
members.
   185501.  (a) When the authority requires any utility to remove any
utility facility lawfully maintained in the right-of-way of any
high-speed rail property to a location entirely outside the
high-speed rail property right-of-way, the authority shall pay the
reasonable and necessary cost of the removal. This includes both the
cost of removal and the cost of relocation to a new location outside
of the high-speed rail property right-of-way.
   (b) This section does not apply to the relocation of a utility
facility from one point in a high-speed rail property to another
point in that property, including relocation in any service road of
the high-speed rail property or from one point of crossing of the
high-speed rail property to another reasonable point of crossing.
   185502.  (a) When the authority requires a publicly owned utility
to relocate within a high-speed rail property any utility facility
lawfully maintained in that property that was not used for high-speed
rail purposes at the time the utility facility was originally
installed, the authority shall pay the cost of the relocation.
   (b) When the authority requires a privately owned utility to
relocate within a high-speed rail property any utility facility used
solely to supply water, which facility is lawfully maintained in any
high-speed rail property that was not used for high-speed rail
purposes at the time that the utility facility was originally
installed, the authority shall pay the cost of the relocation.
   (c) When the authority requires a privately owned utility to
relocate within a high-speed rail property any utility facility,
other than one used solely to supply water, which facility is
lawfully maintained in any high-speed rail property that was not used
for high-speed rail purposes at the time the utility facility was
originally installed, and it is established by the utility that the
utility is not under express contractual obligation to relocate the
utility facility at its own expense, the authority shall pay the cost
of the relocation.
   (d) A permit containing a contractual obligation that was accepted
by the utility for maintenance or minor improvement of the facility
after the property became high-speed rail property shall not
constitute a contractual obligation to relocate a utility facility at
its own expense within the meaning of this section.
   (e) Publicly owned sewers and fire hydrants and any street
lighting structure, whether publicly or privately owned, in any
high-speed rail property shall be relocated, where necessary, at the
expense of the authority.
   185503.  If the authority requires the relocation within the
right-of-way of any utility facility more than once within a period
of 10 years, the authority shall pay the cost of the second
relocation and any subsequent relocation within the 10-year period.
   185504.  (a) In any case in which the authority is required under
the provisions of this chapter to pay the cost of removal or
relocation of any utility facility, it shall be entitled to the
following credits:
   (1) In the amount of any betterment to the utility facility
resulting from the removal or relocation, not in excess of the cost
of the increased capacity of the facility.
   (2) The salvage value of any materials or parts salvaged and
retained by the utility.
   (3) If a new utility facility or portion of that facility is
constructed to accomplish the removal or relocation, an allowance of
an amount equal to the same proportion of the original cost of the
displaced utility facility or portion of that facility as the age of
the facility bears to the normal expected life of the facility.
   (b) A credit shall not be allowed against any portion of the cost
that is otherwise chargeable to the utility.
   (c) A credit allowance for age shall not be applied to publicly
owned sewers.
                185505.  (a) The authority and any utility required
to remove a utility facility or to relocate any utility facility may,
by agreement, provide for the respective amounts of the cost to be
borne by each. The authority may, without prejudice to its rights
under Section 185506, advance the cost of removal or relocation, and,
if the authority advances that cost, it is the duty of the utility
to move its facilities as soon as reasonably possible so as not to
delay high-speed rail construction. In the case of any utility that
is not financially able to bear the costs of removal or relocation,
the authority may by agreement provide for the work to be done on
condition that the utility's portion of the costs be repaid to the
authority over a period of time not exceeding 10 years.
   (b) Either party may maintain an action in a court of competent
jurisdiction for an adjudication as to the obligations and costs to
be borne by each party under any contract entered into by the parties
at any time within four years after the cause of action first arose.
The cause of action shall be deemed to arise at the time of the
completion by the utility of the removal or relocation in question,
or at the time of a breach of the agreement by either party,
whichever occurs first. The filing of a claim with a state agency
shall not be deemed a condition precedent to the maintenance by the
utility of an action under this subdivision.
   185506.  In the event of failure to reach an agreement as provided
in Section 185505, the utility or the authority may bring an action
in a court of competent jurisdiction for apportionment of the cost
between them in accordance with this chapter. This action shall be
commenced within three years of the date of completion by the utility
of the removal or relocation in question. The filing of a claim with
a state agency shall not be deemed a condition precedent to the
maintenance by the utility of an action pursuant to this section.
   185507.  (a) The authority and any utility as defined in Section
185500 may enter into a contract providing for or apportioning the
obligations and costs to be borne by each party as to either or both
of the following subject matters:
   (1) Any or all removals or relocations of utility facilities
completed by the utility prior to the effective date of the contract
as required by notice given by the authority when necessary to
accommodate any or all state high-speed rail construction, where: (A)
the obligations or costs to be borne by each party for a removal or
relocation are in dispute; and (B) the claim of the utility is: (i)
founded upon a removal or relocation completed by the utility not
earlier than three years preceding the effective date of the
contract; or (ii) involved in an action pending in a court of
competent jurisdiction if the action was commenced within three years
after completion by the utility of the removal or relocation in
question.
   (2) Any or all removals or relocations of utility facilities to be
undertaken or completed by the utility after the effective date of
the contract as required by notice given by the authority when
necessary to accommodate any or all state high-speed rail
construction.
   (b) Those provisions of a contract authorized in paragraph (1) of
subdivision (a) settling the claims of the parties in respect to
removals or relocations of utility facilities completed by the
utility prior to the effective date of the contract shall be
irrevocable after the execution of the contract, unless changed or
modified by mutual consent of the parties in writing. Either party
may maintain an action in a court of competent jurisdiction upon any
of the provisions of the contract at any time within two years after
the effective date of the contract, and the utility need not file a
claim with a state agency as a condition precedent to the maintenance
of an action under this subdivision.
   (c) Those provisions of a contract dealing with removals or
relocations of utility facilities to be undertaken or completed by
the utility after the effective date of the contract, as authorized
in paragraph (2) of subdivision (a), shall be subject to the
following limitations and requirements:
   (1) While the contract remains in effect, the contract shall
govern exclusively the determination of the obligations and costs to
be borne by each party in regard to any removal or relocation covered
by the contract and undertaken or completed by the utility after the
effective date of the contract, whether notice of the necessity of
the removal or relocation was given by the authority to the utility
before or after the effective date of the contract. This chapter, as
now or hereafter existing, and any and all other laws that would be
applicable to the subject matter but for the contract shall not
apply, except that laws may be referred to, retained, and made
applicable by the contract. This paragraph shall not apply in the
following circumstances:
   (A) If, before the effective date of a contract entered into under
this section, the parties executed an agreement in respect to the
obligations and costs to be borne by each party as to a particular
removal or relocation under a notice given by the authority, the
provisions of such an agreement shall govern as to the obligations
and costs to be borne by each party in respect to that particular
removal or relocation.
   (B) If a particular notice given by the authority before the
effective date of a contract entered into under this section includes
a determination that a removal or relocation is to be made at the
expense of the utility, the utility shall be bound by that notice
unless the utility advised the authority in writing of its
disagreement with the determination within the time specified in an
agreement then in effect between the authority and the utility in
respect to the procedure to be followed in those cases, or, if there
is no such agreement, within a reasonable time after receipt by the
utility of the notice.
   (2) Either party may maintain an action in a court of competent
jurisdiction for an adjudication as to the obligations and costs to
be borne by each party under the contract at any time within four
years after the cause of action first arose. The cause of action
shall be deemed to arise at the time of the completion by the utility
of the removal or relocation in question. The filing of a claim with
a state agency shall not be deemed a condition precedent to the
maintenance by the utility of an action under this paragraph.
   (3) The contract shall terminate upon the repeal of this section,
the repeal of paragraph (2) of subdivision (a) and subdivision (c),
or at the time or in the manner as may be provided in the contract.
In the event of termination under this paragraph, the laws applicable
to the subject matter of the contract existing at the time of
termination shall thereafter govern, except that the terms of the
contract shall continue to apply to removals or relocations required
of the utility by the authority under notice mailed or delivered to
the utility prior to the termination, whether work upon the removal
or relocation has already commenced, is in progress, or has been
completed.
   185508.  A utility is entitled to a permit for such reasonable
crossings of high-speed rail property as may be required for the
proper discharge of the utility's service to the public.
   185509.  The authority shall exercise reasonable discretion in
acting on applications of utilities for permits to occupy high-speed
rail property for longitudinal locations of facilities, as may be
required for the proper discharge of their services to the public.
The authority may, however, refuse to grant an application for a
longitudinal installation that would be inconsistent with public
safety or the continued unobstructed use of the high-speed rail
property for rail or vehicular traffic, or for any type of utility
structure inconsistent with the aesthetic values of any landscaped
high-speed rail property within, or approaching within, one mile of
the limits of any city.
   185510.  The authority, in acting upon applications for utility
permits, shall consider both the interests of the traveling public
upon the high-speed rail property and the needs of consumers for
utility services.
   185511.  Nothing in this chapter is intended to prevent the
authority from making reasonable rules and regulations and requiring
reasonable conditions in permits concerning the place, manner, and
method of location of utility facilities in, under, over, or along
high-speed rail property. 
   SEC. 8.    Section 7104.3 of the   Revenue
and Taxation Code   is repealed.  
   7104.3.  Notwithstanding any other provision of law, the
Department of Finance may adjust the budgeting, accounting, and
reporting system for the Transportation Investment Fund so that
unliquidated encumbrances are not reflected in the fund balance or
financial statement. 
   SEC. 9.    Section 7104.3 is added to the  
Revenue and Taxation Code   , to read:  
   7104.3.  (a) Notwithstanding any other provision of law, upon
order of the Department of Finance, all or some of the state agencies
collecting revenue for, or spending from, the Transportation
Investment Fund shall adjust budgeting, accounting, and reporting
systems and documents so that unliquidated encumbrances, payables,
and other accruals are not reflected in the fund balance in the
Governor's Budget fund condition display or the fund balance in the
financial statements submitted to the Controller for the
budgetary-legal basis annual report.
   (b) For the purposes of the Governor's Budget, the balance of cash
advanced from the Transportation Investment Fund to the
Transportation Revolving Account, as jointly determined by the
Department of Finance and the state agencies referenced in
subdivision (a), shall be deemed as resources and cash available to
the Transportation Investment Fund for budgeting purposes.
   (c) This method shall be effective with the 2013-14 Governor's
Budget development process and may be applied to the 2011-12 data.

   SEC. 10.    Section 7105 of the   Revenue
and Taxation Code   is amended to read: 
   7105.  (a) The Transportation Deferred Investment Fund is hereby
created in the State Treasury. The Transportation Deferred Investment
Fund is to be considered part of the Transportation Investment Fund,
except as specifically required for accounting purposes, in order to
facilitate the repayment and allocation of revenues consistent with
paragraph (1) of subdivision (f) of Section 1 of Article XIX B of the
California Constitution as provided in this section and Section
7106.
   (b) Pursuant to Section 14557 of the Government Code, the transfer
of revenues from the General Fund to the Transportation Investment
Fund that would have otherwise been required under subdivision (a) of
Section 1 of Article XIX B of the California Constitution was
partially suspended for the 2003-04 fiscal year. The amount of the
transfer for the 2003-04 fiscal year was two hundred eighty-nine
million dollars ($289,000,000). According to the State Board of
Equalization calculations, with the concurrence of the Department of
Finance, the amount of the transfer suspended for the 2003-04 fiscal
year was eight hundred sixty-seven million five hundred sixty-eight
thousand dollars ($867,568,000). On or before June 30 of each fiscal
year until June 30, 2016, the Controller shall transfer an amount
from the General Fund to the Transportation Deferred Investment Fund
that is equal to the minimum repayment required by Article XIX B of
the California Constitution. The repayment shall also include
interest calculated at the Pooled Money Investment Account rate
relative to the amounts that would otherwise have been available for
the transportation programs described in paragraphs (2) to (5),
inclusive, of subdivision (c) of Section 7104. The amount to be
repaid by June 30, 2016, from the General Fund to the Transportation
Deferred Investment Fund shall be reduced by the amount of any
payment made to the Transportation Deferred Investment Fund from any
funding source, excluding subdivision (d). The moneys deposited in
the Transportation Deferred Investment Fund pursuant to this
subdivision are continuously appropriated without regard to fiscal
years for disbursement in the manner and for the purposes set forth
in this section.
   (c) The Controller, from the moneys deposited in the
Transportation Deferred Investment Fund pursuant to subdivision (b)
and Article XIX B of the California Constitution, shall make
transfers and apportionments of those funds in the same manner and
amounts that would have been made in the 2003-04 fiscal year from the
Transportation Investment Fund pursuant to Section 7104, as that
section read on January 1, 2003, if the transfer of funds from the
General Fund to the Transportation Investment Fund had not been
partially suspended for the 2003-04 fiscal year pursuant to Section
14557 of the Government Code, except that in the 2007-08 fiscal year
any remaining principle or interest owed to the Public Transportation
Account shall be repaid first before any other transfers are made.
However, in making those transfers and apportionments, the Controller
shall take into account and deduct therefrom any transfers and
apportionments that were made from the Transportation Investment Fund
in the 2003-04 fiscal year from funds made available pursuant to
subdivision (b) of Section 14557 of the Government Code. It is the
intent of the Legislature that, upon completion of the transfer of
funds pursuant to subdivision (b) from the General Fund to the
Transportation Deferred Investment Fund, each of the transportation
programs that was to have been funded during the 2003-04 fiscal year
from the Transportation Investment Fund pursuant to Section 7104 of
this code shall have received the amount of funding that the program
would have received in the absence of the suspension of the transfer
pursuant to Section 14557 of the Government Code.
   (d) The interest that is to be deposited in the Transportation
Deferred Investment Fund pursuant to subdivision (b) shall be
allocated proportionately to each program element in paragraphs (2)
to (5), inclusive, of subdivision (c) of Section 7104, based on the
amount that each program did not receive in the 2003-04 fiscal year
due to suspension of the transfer pursuant to Section 14557 of the
Government Code.
   (e) Four hundred ninety-five million dollars ($495,000,000) is
hereby appropriated from the General Fund to the Transportation
Deferred Investment Fund for the purpose of paying a portion of the
amount required to be paid pursuant to subdivision (b). The
Controller shall make the payment immediately upon enactment of the
statute amending this section in the 2005-06 Regular Session.
Notwithstanding subdivision (c), these funds, shall be distributed as
follows:
   (1) The first one hundred ninety-two million dollars
($192,000,000) and any interest due pursuant to this section shall
remain in the Transportation Deferred Investment Fund to be used for
projects in the State Transportation Improvement Program pursuant to
paragraph (3) of subdivision (c) of Section 7104.
   (2) The next one hundred ninety-two million dollars ($192,000,000)
and any interest due pursuant to this section shall be distributed
to cities and counties, as follows:
   (A) Ninety-six million dollars ($96,000,000) and any interest due
pursuant to this section shall be transferred to cities for the
purposes specified in Section 7104 pursuant to the formula in
paragraph (5) of subdivision (c) of that section.
   (B) Ninety-six million dollars ($96,000,000) and any interest due
pursuant to this section shall be transferred to counties for the
purposes specified in Section 7104 pursuant to the formula in
paragraph (4) of subdivision (c) of that section.
   (3) Ninety-six million dollars ($96,000,000) and any interest due
pursuant to this section shall be transferred to the Public
Transportation Account for allocation pursuant to Section 99312 of
the Public Utilities Code.
   (4) Any funds remaining following the distributions required by
paragraphs (1), (2), and (3) shall be transferred to the Traffic
Congestion Relief Fund, and shall be deemed to be funds received by
that fund in the 2003-04 fiscal year.
   (f) The Legislature finds and declares that continued investment
in transportation is essential for the California economy. That
investment reduces traffic congestion, assists in economic
development, improves the condition of local streets and roads, and
provides high-quality public transportation. 
   (g) Notwithstanding any other provision of law, the Department of
Finance may adjust the budgeting, accounting, and reporting system
for the Transportation Deferred Investment Fund so that unliquidated
encumbrances are not reflected in the fund balance or financial
statement.  
   (g) (1) Notwithstanding any other provision of law, upon order of
the Department of Finance, all or some of the state agencies
collecting revenues for, or spending from, the Transportation
Deferred Investment Fund shall adjust budgeting, accounting, and
reporting systems and documents so that unliquidated encumbrances,
payables, and other accruals are not reflected in the fund balance in
the Governor's Budget fund condition display or the fund balance in
the financial statements submitted to the Controller for the
budgetary-legal basis annual report.  
   (2) For the purposes of the Governor's Budget, the balance of cash
advanced from the Transportation Deferred Investment Fund to the
Transportation Revolving Account, as jointly determined by the
Department of Finance and the state agencies referenced in paragraph
(1), shall be deemed as resources and cash available to the
Transportation Deferred Investment Fund for budgeting purposes. 

   (3) This method shall be effective with the 2013-14 Governor's
Budget development process and may be applied to the 2011-12 data.

   SEC. 11.    Section 183 of the   Streets and
Highways Code   is amended to read: 
   183.  (a) All money in the State Highway Account in the State
Transportation Fund derived from federal sources or from
appropriations to other state agencies, or deposited in the account
by local agencies or by others, is continuously appropriated to, and
shall be available for expenditure by, the department for the
purposes for which the money was made available.
   Unless otherwise expressly provided for by law, none of the
balance of the money in the State Highway Account shall be expended
until it has been specifically appropriated by the Legislature or
made available pursuant to Section 13322 of the Government Code.
   The Budget Act appropriations shall be made on a program basis
only and shall not identify the specific capital outlay projects to
be funded. The commission shall be responsible for allocating the
funds to specific projects within the budget program categories,
except that all funds described in Chapter 5 (commencing with Section
2200) of Division 3 shall be allocated on a program basis to the
department for allocation pursuant to that chapter.
   (b) Notwithstanding subdivision (a), commencing with the 1985-86
Budget, the department shall submit with its budget requests a
detailed description of the acquisition, improvement, and
construction of office building projects to the Legislature for
review. The total amount appropriated for those projects shall be
identified as a separate line item in the Budget Act. Funds
appropriated for those projects shall be allocated by the commission
only for projects which have been approved by the Legislature. Minor
projects are to be defined consistent with Section 167. The
commission may substitute for approved minor projects, if the total
sum of minor projects is within the amount approved by the
Legislature. 
   (c) Notwithstanding any other provision of law, the Department of
Finance may adjust the budgeting, accounting, and reporting system
for the State Highway Account so that unliquidated encumbrances are
not reflected in the fund balance or financial statements. 

   (c) (1) Notwithstanding any other provision of law, upon order of
the Department of Finance, all or some of the state agencies
collecting revenues for, or spending from, the State Highway Account
shall adjust budgeting, accounting, and reporting systems and
documents so that unliquidated encumbrances, payables, and other
accruals are not reflected in the fund balance in the Governor's
Budget fund condition display or the fund balance in the financial
statements submitted to the Controller for the budgetary-legal basis
annual report.  
   (2) For the purposes of the Governor's Budget, the balance of cash
advanced from the State Highway Account to the Transportation
Revolving Account, as jointly determined by the Department of Finance
and the state agencies referenced in paragraph (1), shall be deemed
as resources and cash available to the Transportation Deferred
Investment Fund for budgeting purposes.  
   (3) This method shall be effective with the 2013-14 Governor's
Budget development process and may be applied to the 2011-12 data.

   SEC. 12.    Section 183.1 of the   Streets
and Highways Code   is amended to read: 
   183.1.  (a) Notwithstanding subdivision (a) of Section 182 or any
other provision of law, money deposited into the account that is not
subject to Article XIX of the California Constitution, including, but
not limited to, money that is derived from the sale of documents,
charges for miscellaneous services to the public, condemnation
deposits fund investments, rental of state property, or any other
miscellaneous uses of property or money, may be used for any
transportation purpose authorized by statute, upon appropriation by
the Legislature or, after transfer to another fund, upon
appropriation by the Legislature from that fund.
   (b)  In the 2010-11, 2011-12, and 2012-13 fiscal years,
  Commencing   with the 2013-14 fiscal year,
 and not later than November 1 of each  of those years,
  fiscal year thereafter,  based on prior year
financial statements, the Controller shall transfer the funds
identified in subdivision (a) for the prior fiscal year  from the
State Highway Account  to the Transportation Debt Service Fund
in the State Transportation Fund  , and those funds are
continuously appropriated for the purposes specified for the
Transportation Debt Service Fund  . 
   (c) Commencing with the 2013-14 fiscal year, the revenues
identified in subdivision (a) shall remain in the State Highway
Account until appropriated by the Legislature. 
   SEC. 13.    Section 9400.1 of the   Vehicle
Code   is amended to read: 
   9400.1.  (a) (1) In addition to any other required fee, there
shall be paid the fees set forth in this section for the registration
of commercial motor vehicles operated either singly or in
combination with a declared gross vehicle weight of 10,001 pounds or
more. Pickup truck and electric vehicle weight fees are not
calculated under this section.
   (2) The weight of a vehicle issued an identification plate
pursuant to an application under Section 5014, and the weight of an
implement of husbandry as defined in Section 36000, shall not be
considered when calculating, pursuant to this section, the declared
gross vehicle weight of a towing commercial motor vehicle that is
owned and operated exclusively by a farmer or an employee of a farmer
in the conduct of agricultural operations.
   (3) Tow trucks that are utilized to render assistance to the
motoring public or to tow or carry impounded vehicles shall pay fees
in accordance with this section, except that the fee calculation
shall be based only on the gross vehicle weight rating of the towing
or carrying vehicle. Upon each initial or transfer application for
registration of a tow truck described in this paragraph, the
registered owner or lessee or that owner's or lessee's designee,
shall certify to the department the gross vehicle weight rating of
the tow truck:
Gross Vehicle Weight Range                Fee
10,001-15,000 .......................... $ 257
15,001-20,000 ..........................   353
20,001-26,000 ..........................   435
26,001-30,000 ..........................   552
30,001-35,000 ..........................   648
35,001-40,000 ..........................   761
40,001-45,000 ..........................   837
45,001-50,000 ..........................   948
50,001-54,999 ..........................  1,03
                                                 9
55,000-60,000 ..........................  1,17
                                              3
60,001-65,000 ..........................  1,28
                                              2
65,001-70,000 ..........................  1,39
                                              8
70,001-75,000 ..........................  1,65
                                              0
75,001-80,000 ..........................  1,70
                                              0


   (b) The fees specified in subdivision (a) apply to both of the
following:
   (1) An initial or original registration occurring on or after
December 31, 2001, to December 30, 2003, inclusive, of a commercial
motor vehicle operated either singly or in combination with a
declared gross vehicle weight of 10,001 pounds or more.
   (2) The renewal of registration of a commercial motor vehicle
operated either singly or in combination, with a declared gross
vehicle weight of 10,001 pounds or more for which registration
expires on or after December 31, 2001, to December 30, 2003,
inclusive.
   (c) (1) For both an initial or original registration occurring on
or after December 31, 2003, of a commercial motor vehicle operated
either singly or in combination with a declared gross vehicle weight
of 10,001 pounds or more, and the renewal of registration of a
commercial motor vehicle operated either singly or in combination,
with a declared gross vehicle weight of 10,001 pounds or more for
which registration expires on or after December 31, 2003, there shall
be paid fees as follows:
Gross Vehicle Weight
Range                     Weight Code         Fee
10,001-15,000                  A             $ 332
15,001-20,000                  B               447
20,001-26,000                  C               546
26,001-30,000                  D               586
30,001-35,000                  E               801
35,001-40,000                  F               937
40,001-45,000                  G             1,028
45,001-50,000                  H             1,161
50,001-54,999                  I             1,270
55,000-60,000                  J             1,431
60,001-65,000                  K             1,562
65,001-70,000                  L             1,701
70,001-75,000                  M             2,004
75,001-80,000                  N             2,064


   (2) For the purpose of obtaining "revenue neutrality" as described
in Sections 1 and 59 of Senate Bill 2084 of the 1999-2000 Regular
Session (Chapter 861 of the Statutes of 2000), the Director of
Finance shall review the final 2003-04 Statement of Transactions of
the State Highway Account. If that review indicates that the actual
truck weight fee revenues deposited in the State Highway Account do
not total at least seven hundred eighty-nine million dollars
($789,000,000), the Director of Finance shall instruct the department
to adjust the schedule set forth in paragraph (1), but not to exceed
the following fee amounts:
Gross Vehicle Weight
Range                     Weight Code         Fee
10,001-15,000                  A             $ 354
15,001-20,000                  B               482
20,001-26,000                  C               591
26,001-30,000                  D               746
30,001-35,000                  E               874
35,001-40,000                  F             1,024
40,001-45,000                  G             1,125
45,001-50,000                  H             1,272
50,001-54,999                  I             1,393
55,000-60,000                  J             1,571
60,001-65,000                  K             1,716
65,001-70,000                  L             1,870
70,001-75,000                  M             2,204
75,001-80,000                  N             2,271


   (d) (1) In addition to the fees set forth in subdivision (a), a
Cargo Theft Interdiction Program fee of three dollars ($3) shall be
paid at the time of initial or original registration or renewal of
registration of each motor vehicle subject to weight fees under this
section.
   (2) This subdivision does not apply to vehicles used or maintained
for the transportation of persons for hire, compensation or profit,
and tow trucks.
   (3) For vehicles registered under Article 4 (commencing with
Section 8050) of Chapter 4, the fee imposed under this subdivision
shall be apportioned as required for registration fees under that
article.
   (4) Funds collected pursuant to the Cargo Theft Interdiction
Program shall not be proportionately reduced for each month and shall
be transferred to the Motor Carriers Safety Improvement Fund.
   (e) Notwithstanding Section 42270 or any other provision of law,
of the moneys collected by the department under this section, one
hundred twenty-two dollars ($122) for each initial, original, and
renewal registration shall be reported monthly to the Controller, and
at the same time, deposited in the State Treasury to the credit of
the Motor Vehicle Account in the State Transportation Fund. All other
moneys collected by the department under this section shall be
deposited to the credit of the State Highway Account in the State
Transportation Fund  ,   or directly to the credit of
the Transportation Debt Service Fund as provided in paragraph (2) of
subdivision (c) of Section 9400.4, as applicable  . One hundred
twenty-two dollars ($122) of the fee imposed under this section shall
not be proportionately reduced for each month. For vehicles
registered under Article 4 (commencing with Section 8050) of Chapter
4, the fee shall be apportioned as required for registration under
that article.
   (f) (1) The department, in consultation with the Department of the
California Highway Patrol, shall design and make available a set of
distinctive weight decals that reflect the declared gross combined
weight or gross operating weight reported to the department at the
time of initial registration, registration renewal, or when a weight
change is reported to the department pursuant to Section 9406.1. A
new decal shall be issued on each renewal or when the weight is
changed pursuant to Section 9406.1. The decal for a tow truck that is
subject to this section shall reflect the gross vehicle weight
rating or weight code.
   (2) The department may charge a fee, not to exceed ten dollars
($10), for the department's actual cost of producing and issuing each
set of decals issued under paragraph (1).
   (3) The weight decal shall be in sharp contrast to the background
and shall be of a size, shape, and color that is readily legible
during daylight hours from a distance of 50 feet.
   (4) Each vehicle subject to this section shall display the weight
decal on both the right and left sides of the vehicle.
   (5) A person may not display upon a vehicle a decal issued
pursuant to this subdivision that does not reflect the declared
weight reported to the department.
   (6) Notwithstanding subdivision (e) or any other provision of law,
the moneys collected by the department under this subdivision shall
be deposited in the State Treasury to the credit of the Motor Vehicle
Account in the State Transportation Fund.
   (7) This subdivision shall apply to vehicles subject to this
section at the time of an initial registration, registration renewal,
or reported weight change that occurs on or after July 1, 2004.
   (8) The following shall apply to vehicles registered under the
permanent fleet registration program pursuant to Article 9.5
(commencing with Section 5301) of Chapter 1:
   (A) The department, in consultation with the Department of the
California Highway Patrol, shall distinguish the weight decals issued
to permanent fleet registration vehicles from those issued to other
vehicles.
   (B) The department shall issue the distinguishable weight decals
only to the following:
   (i) A permanent fleet registration vehicle that is registered with
the department on January 1, 2005.
   (ii) On and after January 1, 2005, a vehicle for which the
department has an application for initial registration as a permanent
fleet registration vehicle.
   (iii) On and after January 1, 2005, a permanent fleet registration
vehicle that has a weight change pursuant to Section 9406.1.
   (C) The weight decal issued under this paragraph shall comply with
the applicable provisions of paragraphs (1) to (6), inclusive.
   SEC. 14.   Section 9400.4 of the   Vehicle
Code   is amended to read: 
   9400.4.  Weight fee revenue deposited into the State Highway
Account pursuant to subdivision (e) of Section 9400.1 and 
subdivision (a) of  Section 42205  net of amounts
appropriated for other purposes pursuant to subdivision (b) of
Section 42205, and weight fee revenues deposited directly into the
Transportation Debt Service Fund pursuant to subdivision (e) of
Section 9400.1 and subdivision (a) of Section 42205, as applicable,
 shall be used as follows:
   (a) For the 2010-11 fiscal year, seven hundred fifty-six million
three hundred ninety-six thousand dollars ($756,396,000) is hereby
appropriated from weight fee revenues in the State Highway Account
for transfer to the General Fund as transportation bond debt service
reimbursement and loans as follows:
   (1) The Controller shall transfer all weight fee revenues
deposited into the State Highway Account in any month to the
Transportation Debt Service Fund for transfer to the General Fund as
reimbursement for debt service costs until all of the debt service
paid on transportation bonds for projects that the Director of
Finance indicates qualify for reimbursement as provided for in
Section 16965 of the Government Code have been reimbursed.
   (2) After the Director of Finance has notified the Controller that
all debt service costs for the 2010-11 fiscal year have been
reimbursed, the Controller shall transfer any remaining monthly
weight fee revenues in the State Highway Account to the General Fund
as a loan until the full amount appropriated in this subdivision has
been transferred to the General Fund. The Director of Finance may
repay any remaining portion of the outstanding balance of this loan
in any year in which the Director of Finance determines the funds are
needed to reimburse the General Fund for current year transportation
bond debt service or to redeem or  defease  
retire  those bonds, pursuant to Section 16774 of the Government
Code, maturing in a subsequent fiscal year, provided that the loans
shall be repaid no later than June 30, 2021. All funds loaned
pursuant to this section, upon repayment to the State Highway
Account, shall be immediately transferred by the Controller to the
Transportation Debt Service Fund for use pursuant to Section 16965 of
the Government Code.
   (3) By June 15, 2011, the Director of Finance in consultation with
the Treasurer shall notify the Controller regarding the final amount
of debt service paid from the General Fund during the 2010-11 fiscal
year pursuant to Section 16965 of the Government Code and shall
direct the Controller to reverse and adjust any transfers made as
debt service reimbursements or loans so that a maximum amount of
transfers are made for debt service reimbursements and with any loan
amounts limited to the difference between this amount and the total
amount appropriated in this subdivision. The total amount of weight
fee revenues transferred from the State Highway Account for the
2010-11 fiscal year shall not be greater than the total amount of
weight fee revenues deposited into the State Highway Account for that
year.
   (4) With respect to transfers or portions of transfers that cannot
be made in any given month if weight fee revenues are insufficient,
the first weight fee revenues available in the following month or
months shall be used to complete the transfers for the previous month
or months prior to making additional transfers for later months.
   (b) For the 2011-12 fiscal year, all revenue generated from weight
fees in the State Highway Account, as determined by Sections 9400.1
and 42205, excluding an amount equal to the loan of forty-three
million seven hundred thousand dollars ($43,700,000) authorized
pursuant to Item 2660-013-0042 of Section 2.00 of the Budget Act of
2011, is hereby appropriated for transfer to the General Fund as debt
service reimbursement and loans as follows:
   (1) The Controller shall transfer all weight fee revenues
deposited into the State Highway Account in any month to the
Transportation Debt Service Fund for transfer to the General Fund as
reimbursement for debt service costs until all of the debt service
paid on transportation bonds for projects that the Director of
Finance indicates qualify for reimbursement as provided for in
Section 16965 of the Government Code have been reimbursed.
   (2) After the Director of Finance has notified the Controller that
all debt service costs for the 2011-12 fiscal year have been
reimbursed, the Controller shall transfer any remaining weight fee
revenues for that fiscal year in the State Highway Account to the
General Fund as a loan until all weight fee revenues for that fiscal
year appropriated in this subdivision have been transferred to the
General Fund, excluding forty-two million dollars ($42,000,000),
which shall be transferred to the General Fund as a loan on July 1,
2012. The Director of Finance may repay any portion of the balance of
this loan in any year in which the Director of Finance determines
the funds are needed to reimburse the General Fund for current year
transportation bond debt service or to redeem or  defease
  retire  those bonds, pursuant to Section 16774 of
the Government Code, maturing in a subsequent year, provided that
the loans shall be repaid no later than June 30, 2021. All funds
loaned pursuant to this section, upon repayment to the State Highway
Account, shall be immediately transferred by the Controller to the
Transportation Debt Service Fund for use pursuant to Section 16965 of
the Government Code.
   (3) By June 15, 2012, the Director of Finance in consultation with
the Treasurer shall notify the Controller regarding the final amount
of debt service paid from the General Fund during the 2011-12 fiscal
year pursuant to Section 16965 of the Government Code and shall
direct the Controller to reverse and adjust any transfers made as
debt service reimbursements or loans so that a maximum amount of
transfers are made for debt service reimbursements and with any loan
amounts limited to the difference between this amount and the total
amount appropriated in this subdivision. The total amount of weight
fee revenues transferred from the State Highway Account for the
2011-12 fiscal year shall not be greater than the total amount of
weight fee revenues deposited into the State Highway Account in that
year.
   (4) With respect to transfers or portions of transfers that cannot
be made in any given month if weight fee revenues are insufficient,
the first weight fee revenues available in the following month or
months shall be used to complete the transfers for the previous month
or months prior to making additional transfers for later months.
   (c) (1)  Starting with the 2012-13 fiscal year and every
year thereafter   (A)     Until the
month of first issuance of designated bonds as defined in subdivision
(c) of Section 16773 of the Government Code, and at any time
thereafter that a Treasurer's certification pursuant to subparagraph
(B) of paragraph (3) of subdivision (a) of Section 16965 of the
Government Code applies  , all weight fee revenues 
deposited into the State Highway Account in any month  
subject to this section in any month  shall be transferred 
from the State Highway Account  to the Transportation Debt
Service  Fund and are   Fund. 
    (B)    Except as provided in paragraph (3),
or when subparagraph (A) applies pursuant to a Treasurer's
certification, upon the first issuance of designated bonds, as
defined in subdivision (c) of Section 16773 of the Government Code,
starting in the month following that first issuance, all weight fee
revenues received by the Controller from the first day through the
14th day of every month shall be transferred from the State Highway
Account to the Transportation Debt Service   Fund.
    (C)     All funds transferred pursuant to
subparagraphs (A) and (B) are  hereby appropriated for transfer
to the General Fund by the Controller as reimbursement for debt
service costs  until all of the debt service paid on
transportation bonds   paid with respect to eligible
bonds described in subparagraph (A) of paragraph (2) of subdivision
(a) of Section 16965 of the Government Code, until all debt service
 that the Director of Finance indicates  qualify
  qualifies  for reimbursement as provided for in
 subdivision (d), (e), or (f) of  Section 16965 of the
Government Code has been reimbursed, or to redeem or  defease
  retire  bonds, pursuant to Section 16774 of the
Government Code, as referenced in subdivision  (b) or
 (d)  , (e), or (f)  of Section 16965 of the
Government  Code   Code,  that are maturing
in a subsequent year. After the Director of Finance has notified the
Controller that all debt service costs for the fiscal year have been
reimbursed, the Controller shall transfer any remaining revenue
generated from weight fees  subject to this section  for
that fiscal year in the State Highway Account to the General Fund as
a loan. The Director of Finance may repay any portion of the balance
of this loan in any year in which the Director of Finance determines
that the funds are needed to reimburse the General Fund for current
year transportation bond debt service or to redeem or 
defease   retire  those bonds pursuant to Section
16774 of the Government Code, maturing in a future fiscal year,
provided that the loans shall be repaid no later than June 30, 2021.
All funds loaned pursuant to this section, upon repayment to the
State Highway Account, shall be immediately transferred by the
Controller to the Transportation Debt Service Fund for use pursuant
to Section 16965 of the Government Code. By June 15 of each year, the
Director of Finance, in consultation with the Treasurer, shall
notify the Controller regarding the final amount of debt service paid
from the General Fund during that fiscal year pursuant to 
subdivision (d), (e), or (f) of  Section 16965 of the Government
Code and shall direct the Controller to reverse or adjust any
transfers made as debt service reimbursements or loans so that a
maximum amount of transfers are made for debt service reimbursements
and with any loan amounts limited to the difference between this
amount and the total amount of revenue for that fiscal year generated
from weight fees, as determined by Sections 9400.1 and 42205. The
total amount of weight fee revenues transferred from the State
Highway Account in any fiscal year shall not be greater than the
total amount of weight fee revenues deposited into the State Highway
Account in that year. 
   (2) Starting in the month following the first issuance of any
designated bonds, unless a Treasurer's certification pursuant to
subparagraph (B) of paragraph (3) of subdivision (a) of Section 16965
of the Government Code applies, all weight fee revenues subject to
this section that are received by the Controller from the 15th day of
every month, or the first business day thereafter if not a business
day, through the last day of the month shall be deposited directly in
the Transportation Debt Service Fund and are hereby appropriated for
transfer as follows:  
   (A) First, to the Transportation Bond Direct Payment Account as
set forth in subdivision (b) of Section 16965 of the Government Code,
to provide for payment of debt service with respect to designated
bonds.  
   (B) Thereafter, as provided in subparagraph (C) of paragraph (1).
 
   (3) Notwithstanding paragraphs (1) and (2), if by the last day of
a month the transfer for that month relating to designated bonds
required by the Treasurer's certificate described in subdivision (b)
of Section 16965 of the Government Code has not been made due to
insufficient weight fee revenue, weight fee revenue shall continue to
be transferred pursuant to paragraph (2) beginning with the first
day of the subsequent month and continuing every day until such time
as sufficient revenue for full compliance with the certificate has
been transferred.  
   (2) With 
    (4)     Except as otherwise provided in
paragraph (1), (2), or (3), with  respect to  any 
transfers or portions of transfers that cannot be made in any given
month if weight fee revenues are insufficient, the first weight fee
revenues available in the following month or months shall be used to
complete the transfers for the previous month or months prior to
making additional transfers for later months.
   SEC. 15.    Section 42205 of the   Vehicle
Code   is amended to read: 
   42205.  (a) Notwithstanding Chapter 3 (commencing with Section
42270), the department shall file, at least monthly with the
Controller, a report of money received by the department pursuant to
Section 9400 for the previous month and shall, at the same time,
remit all money so reported to the Treasurer. On order of the
Controller, the Treasurer shall deposit all money so remitted into
the State Highway Account in the State Transportation Fund  , or
directly into the Transportation Debt Service Fund as provided in
paragraph (2) of subdivision (c) of Section 9400.4, as applicable
 .
   (b) The Legislature shall appropriate from the State Highway
Account in the State Transportation Fund to the department and the
Franchise Tax Board amounts equal to the costs incurred by each in
performing their duties pursuant to Article 3 (commencing with
Section 9400) of Chapter 6 of Division 3. The applicable amounts
shall be determined so that the appropriate costs for registration
and weight fee collection activities are appropriated between the
recipients of revenues in proportion to the revenues that would have
been received individually by those recipients if the total fee
imposed under the Vehicle License Fee Law (Part 5 (commencing with
Section 10701) of Division 2 of the Revenue and Taxation Code) was 2
percent of the market value of a vehicle. The remainder of the funds
collected under Section 9400 and deposited in the account  ,
other than the direct deposits to the Transportation Debt Service
Fund referenced in subdivision (a),  may be appropriated to the
Department of Transportation, the Department of the California
Highway Patrol, and the Department of Motor Vehicles for the purposes
authorized under Section  2   3  of
Article XIX of the California Constitution.
   SEC. 16.    This act is a bill providing for
appropriations related to the Budget Bill within the meaning of
subdivision (e) of Section 12 of Article IV of the California
Constitution, has been identified as related to the budget in the
Budget Bill, and shall take effect immediately.  
  SECTION 1.    It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2013.