HomeMy WebLinkAboutMINUTES - 10172006 - C.39 SF_.L
TO: BOARD OF SUPERVISORS •� Contra
,y
FROM: JOHN CULLEN,
Costa
County Administrator County
sra'couN
DATE: October 17, 2006
SUBJECT: Support for Proposition 1 B: HIGHWAY SAFETY, TRAFFIC
C - 3
REDUCTION, AIR QUALITY, AND PORT SECURITY BOND ACT OF
2006.
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
SUPPORT Proposition 1 B, "The Highway Safety, Traffic Reduction, Air Quality, and Port Security
Bond Act of 2006," which would authorize the state to sell about $20 billion of general obligation
bonds to fund transportation projects to relieve congestion, improve the movement of goods, improve
air quality, and enhance the safety and security of the transportation system. (All Districts)
FISCAL IMPACT:
According to the Legislative Analyst, the cost of these bonds would depend on interest rates at the
time they are sold and the time period over which they are repaid. The state would likely make
principal and interest payments from the state's General Fund over a period of about 30 years. If the
bonds are sold at an average interest rate of 5 percent, the cost would be about $38.9 billion to pay
off both the principal ($19.9 billion) and interest ($19.0 billion). The average repayment for principal
and interest would be about $1.3 billion per year.
Regarding operational costs, the state and local governments that construct or improve transportation
infrastructure with these bond funds will incur unknown additional costs to operate and maintain them.
A portion of these costs would be offset by revenues generated by the improvements, such as transit
fares and tolls.
If Proposition 1 B passes, it is estimated that Contra Costa County would receive approximately $24.5
million over the life of the program to fund road improvement projects in the unincorporated Contra
Costa County area. The Fiscal Year 2006-07 fiscal year allocation has yet to be determined.
BACKGROUND:
On October 10, 2006, the Board of Supervisors directed the County Administrator's Office to return
on October 17, 2006 with a recommendation on Proposition 1 B, "The Highway Safety, Traffic
Reduction, Air Quality, and Port Security Bond Act of 2006." The analysis by the Legislative Analyst
provides the following background information:
CONTINUED ON ATTACHMENT: x YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION Orlb COMMITTEE
4-,-"'APPROVE OTHER
SIGNATURE(S):
ACTION OF BOOD N \ / I /®(Q APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT
COPY OF AN ACTION TAKEN AND ENTERED ON MINUTES OF
THE BOARD OF SUPERVISORS ON THE DATE SHOWN.
X UNANIMOUS(ABSENT )
T AYES: NOES:
ABSENT: ABSTAIN:
Contact: L. DeLaney 5-1097
Cc: S.Goetz—Community Development ATTESTED tp
S. Kowalewski—Public Works JOHN CLEN,CLERK OF THE BOARD OFSUPERVISORS
A
BY: DEPUTY
Prop. 1A "Proposition 1 B"p. 2
October 17, 2006
California spends about $20 billion a year from a combination of state, federal, and local funds to
maintain, operate, and improve its highways, streets and roads, passenger rail, and transit systems.
These expenditures are primarily funded on a pay-as-you-go basis from taxes and user fees.
There are two primary state tax sources that fund state transportation programs. First, the state's 18
cent per gallon excise tax on gasoline and diesel fuel (generally referred to as the gas tax) generates
about $3.4 billion annually. Second, revenues from the state sales tax on gasoline and diesel fuel
currently provide about $2 billion a year. Additionally, the state imposes weight fees on commercial
vehicles (trucks), which generate roughly $900 million a year. Generally, these revenues must be
used for specific transportation purposes, including improvements to highways, streets and roads,
passenger rail, and transit systems. These funds may also be used to mitigate the environmental
impacts of various transportation projects. Under specified conditions, these revenues may be loaned
or used for non-transportation uses.
Since 1990, voters have approved roughly $5 billion in state general obligation bonds to fund
transportation. These bond proceeds have been dedicated primarily to passenger rail and transit
improvements, as well as to retrofit highways and bridges for earthquake safety. As of June 2006, all
but about $355 million of the authorized bonds have been spent on projects.
In addition to state funds, California's transportation system receives federal and local money. The
state receives about $4.5 billion a year in federal gasoline and diesel fuel tax revenues for various
transportation purposes. Collectively, local governments invest roughly $9.5 billion annually into
California's highways, streets and roads, passenger rail, and transit systems. This funding comes
mainly from a mix of local sales and property taxes, as well as transit fares. Local governments have
also issued bonds backed mainly by local sales tax revenues to fund transportation projects.
Proposition 1B authorizes the state to sell about $20 billion of general obligation bonds to fund
transportation projects to relieve congestion, improve the movement of goods, improve air quality,
and enhance the safety and security of the transportation system.
The bond money would be available for expenditure by various state agencies and for grants to local
agencies and transit operators upon appropriation by the Legislature, in the following amounts:
• Congestion Reduction, Highway and Local Road Improvements—$11.3 billion—for capital
improvements to reduce congestion and increase capacity on state highways, local roads, and
public transit for grants available to locally funded transportation projects, as well as for
projects to rehabilitate state highways and local roads.
• Public Transportation—$4 billion—to make capital improvements to local transit services and
the state's intercity rail service. These improvements would include purchasing buses and
railcars, as well as making safety enhancements to existing transit facilities.
• Goods Movement and Air Quality—$3.2 billion—for projects to improve the movement of
goods—through the ports, on the state highway and rail systems, and between California and
Mexico—and for projects to improve air quality by reducing emissions related to goods
movement and replacing or retrofitting school buses.
• Safety and Security—$1.5 billion—for projects to increase protection against a security threat
or improve disaster response capabilities on transit systems; as well as for grants to improve
the safety of rail crossings to seismically retrofit local bridges, ramps, and overpasses; and to
improve security and disaster planning in publicly owned ports, harbors, and ferry terminals.
Proposition 1 B has designated $2 billion for the "Local Street and Road Improvement Program." $1
billion is designated for cities and $1 billion is designated for counties. The allocation formula for
counties is based on road miles and registered voters. Based on the formula, Contra Costa County
(unincorporated area) is expected to receive $24.5 million over the life of the program. The bond
measure did not include details on the timing of the funds, although it is almost certain that it would
not be a lump sum distribution.
On October 10, 2006, the Board of Supervisors approved the following project list identifying
unincorporated Contra Costa County projects as candidate projects for funding with Proposition 1B
funds, as approved by the Transportation, Water and Infrastructure Committee on October 9, 2006.
Prop. 1A "Proposition 18"p. 3
October 17, 2006
Summary of Recommended Projects for Proposition 1 B
District 1
San Pablo Dam Road Safety Improvements $1,500,000
San Pablo Dam Road Downtown Improvements $1,000,000
District 2
Alhambra Valley Road Safety Improvements $1,500,000
District 3
Vasco Road Safety Improvements $7,000,000
Vasco Road/Camino Diablo Intersection Improvements $1,000,000
Deer Valley Road Safety Improvements $1,500,000
Camino Tassajara Shoulder Improvements $1,000,000
Byron Highway (South) Shoulder Improvements $2,000,000
Marsh Creek Road Safety Improvements $3,000,000
Highland Road Safety Improvements $1,000,000
District 4 .
Kirker Pass Road Truck Climbing Lanes $3,000,000
Marsh Creek Road Safety Improvements
District 5
Willow Pass Road Safety Improvements $1,000,000
Marsh Creek Road Safety Improvements
Kirkier Pass Road Truck Climbing Lanes
Total $24,500,000
Other transportation projects are also likely to benefit from Proposition 1 B revenue. Most notable are
the projects that are eligible to receive a portion of the bond revenue allocated to the Corridor Mobility
Investment Account program. The Contra Costa Transportation Authority has been participating in
negotiations at the state level regarding the allocation of this bond revenue. They anticipate that
Contra Costa projects could receive between $250 and $300 million of the revenue dedicated to
Northern California. Authority staff believes the State Route 4 East Freeway Widening Project and
the Caldecott Tunnel Improvement Project are the two projects in Contra Costa most likely to receive
this funding from the State, should Proposition 1 B be approved by the voters in November.
I
TEXT OF PROPOSED LAWS
PROPOSITION 1A for more than two fiscal years during any period of 10 consecutive fiscal
years, which period begins with the first fiscal year commencing on or
This amendment proposed by Senate Constitutional Amendment after July 1, 1007,for which the transfer required by subdivision (a) is
7 of the 2005-2006 Regular Session(Resolution Chapter 49, Statutes of suspended.
2006)expressly amends the California Constitution by amending a section '(B) The transfer required by subdivision(a)shall not be suspended
thereof;therefore,existing provisions proposed to be deleted are printed during any fiscal year if a full repayment required by a statute enacted
in sttikeenl-type and new provisions proposed to be added are printed in in accordance with subparagraph(C)of paragraph (1)has not yet been
italic type to indicate that they are new. completed.
PROPOSED AMENDMENT TO SECTION 1 OF (c) The Legislature may enact a statute that modifies the percentage
ARTICLE XIX B shares set forth in subdivision(c)by a bill passed in each house of the
Legislature by rollcall vote entered in the journal, two-thirds of the
SECTION 1. (a) For the 2003-04 fiscal year and each fiscal year membership concurring,provided that the bill does not contain any other
thereafter,all moneys that are collected during the fiscal year from taxes unrelated provision and that the moneys described in subdivision(a)are
under the Sales and Use Tax Law(Part 1(commencing with Section 6001) expended solely for the purposes set forth in paragraph(2)of subdivision(b).
of Division 2 of the Revenue and Taxation Code), or any successor to (n(1) An amount equivalent to the total amount ofrevenues that were
that law,upon the sale,storage,use,or other consumption in this State of not transferred from the General Fund of the State to the Transportation
motor vehicle fuel,and that are deposited in the General Fund of the State Investment Fund, as of July 1,2007, because of a suspension of transfer
pursuant to that law,shall be transferred to the Transportation Investment of revenues pursuant to this section as it read on January 1, 1006, but
Fund,which is hereby created in the State Treasury. excluding the amount to be paid to the Transportation Deferred Investment
(b)(1) For the 2003-04 to 2007-08 fiscal years,inclusive,moneys in Fund pursuant to Section 63048.65 of the Government Code, shall be
the Transportation Investment Fund shall be allocated,upon appropriation transferred from the General Fund to the Transportation Investment Fund
by the Legislature,in accordance with Section 7104 of the Revenue and no later than June 30,1016. Until this total amount has been transferred,
Taxation Code as that section read on tI e operative dat the amount of transfer payments to be made in each fiscal year shall not
March 6,2002. be less than one-tenth of the total amount required to be transferred by
(2) For the 2008-09 fiscal year and each fiscal year thereafter, June 30, 2016. The transferred revenues shall be allocated solely for the
purposes set forth in this section as ifthey had been received in the absence
moneys in the Transportation Investment Fund shall be allocated solely for ofa suspension of transfer of revenues.
the following purposes:
(2) The Legislature may provide by statute for the issuance of
(A) Public transit and mass transportation, bonds by the state or local agencies, as applicable, that are secured by
(B) Transportation capital improvement projects, subject to the the minimum transfer payments required by paragraph(1).Proceedsfrom
laws governing the State Transportation Improvement Program, or any the sale of those bonds shall be allocated solely for the purposes set forth
successor to that program. in this section as if they were revenues subject to allocation pursuant to
(C) Street and highway maintenance,rehabilitation,reconstruction, paragraph(2)ofsubdivision(b).
or storm damage repair conducted by cities,including a city and county.
(D) Street and highway maintenance,rehabilitation,reconstruction, PROPOSITION 1B
or storm damage repair conducted by counties,including a city and county.
(c) For the 2008-09 fiscal year and each fiscal year thereafter, This law proposed by Senate Bill 1266 of the 2005-2006 Regular
moneys in the Transportation Investment Fund shall be allocated, upon Session (Chapter 25, Statutes of 2006) is submitted to the people
appropriation by the Legislature,as follows: in accordance with the provisions of Article XVI of the California
(A) Twenty percent of the moneys for the purposes set forth in Constitution.
subparagraph(A)of paragraph(2)of subdivision(b). This proposed law adds sections to the Government Code;therefore,
(B) Forty percent of the moneys for the purposes set forth in new provisions proposed to be added are printed in italic type to indicate
subparagraph(B)of paragraph(2)of subdivision(b). that they are new.
(C) Twenty percent of the moneys for the purposes set forth in PROPOSED LAW
subparagraph(C)of paragraph(2)of subdivision(b).
(D) Twenty percent of the moneys for the pu pose purposes set forth SECTION 1. Chapter 12.49(commencing with Section 8879.20)is
in subparagraph(D)of paragraph(2)of subdivision(b). added to Division 1 of Title 2 of the Government Code,to read:
(d) The (1) Except as otherwise provided by paragraph (2), the
transferof revenues from the General Fund of the State to the Transportation CHAPTER 12.49. THE HIGHWAY SAFETY, TRAFFIC REDUCTION,
Investment Fund pursuant to subdivision(a)may be suspended,in whole AIR QUALITY,AND PORT SECURITY BOND ACT OF 2006
or in part,for a fiscal year if both all of the following conditions are met:
(i) (A) The Governor has d issues a proclamation that declares Article 1. General Provisions
that,due to a severe statefiscal hardship,the suspension of the transfer of
revenues pnrsaantto required by subdivision(a) 8879.20. (a) This chapter shall be known as the Highway Safety,
Traffic Reduction,Air Quality,and Port Security Bond Act of2006.
--^_____ -
- - -'-is necessary. (b) This chapter shall only become operative upon adoption by the
(-?) (B) The Legislature enacts by statute,pursuant to a bill passed voters at the November 7,2006,statewide general election.
in each house of the Legislature by rollcall vote entered in thejournal,two- 8879.22. As used in this chapter, the following terms have the
thirds of the membership concurring,a suspension for that fiscal year of following meanings:
the transfer of revenues pmsvmttto required by subdivision(a),provided (o) "Board"means any department receiving an allocation of bond
that and the bill does not contain any other unrelated provision. proceeds pursuant to this chapter.
(C) No later than the effective date of the statute described in (b) "Committee" means the Highway Safety, Traffic Reduction,
subparagraph(B),a separate statute is enacted that providesfor the full Air Quality, and Port Security Committee created pursuant to
repayment to the Transportation Investment Fund of the total amount of Section 8879.22
revenue that was not transferred to that fund as a result of the suspension, (c) "Fund"means the Highway Safety,Traffic Reduction,Air Quality,
including interest as provided by law. This full repayment shall be made and Port,Security Fund of2006 created pursuant to Section 8879.23.
not later than the end of the third fiscal year immediately following the
fiscal year to which the suspension applies. Article 2. Highway Safety, Traffic Reduction,Air Quality,and Port
(2)(A) The transfer requiredby subdivision(a)shallnot be suspended Security Fund of2006 and Program
114 1 Text of Proposed Laws* **
(PROPOSITION is CONTINUED) TEXT OF PROPOSED LAWS
8879.23. The Highway Safety, Traffic Reduction,Air Quality,and determining which project shall be included in the program for funding
Port Security Fund of 2006 is hereby created in the State Treasury. The These benefits shall include,but are not limited to,thefollowing:
Legislature intends that the proceeds of bonds deposited in the fund shall (A) A finding that the project provides quantifiable air quality
be used tofund the mobility,safety,andairquality improvements described benefits.
in this article over the course of the next decade. The proceeds of bonds (B) A finding that the project substantially increases the safety for
issued and sold pursuant to this chapter for the purposes specified in this travelers in the corridor.
chapter shall be allocated in thefollowing manner: r
(a) (1) Four billion five hundred million dollars ($4,500,000,000) (8) In adopting a program for funding pursuant to this subdivision,
shall be deposited in the Corridor Mobility Improvement Account, which the commission shall make a finding that the program is(i)geographically
is hereby created in the fund.Funds in the account shall be available to balanced, consistent with the geographic split for funding described
the California Transportation Commission, upon appropriation in the in Section 188 of the Streets and Highways Code; (it)provides mobility
annual Budget Bill by the Legislature,for allocation for performance improvements in highly traveled or highly congested corridors in all
improvements on highly congested travel corridors in California. Funds regions of California; and(iii) targets bond proceeds in a manner that
in the account shall be used for performance improvements on the state provides the increment offunding necessary, when combined with other
highway system, or major access routes to the state highway system on state,local or federal funds,to provide the mobility benefit in the earliest
the local road system that relieve congestion by expanding capacity, possible timeframe.
enhancing operations, or otherwise improving travel times within these (9) The commission shall include in its annual report to the
high-congestion travel corridors, as identified by the department and Legislature,required by Section 14535,a summary of its activities related
regional or local transportation agencies, pursuant to the process in to the administration ofthisprogram.The summary should,ataminimum,
paragraph(3)or(4),as applicable.
(2) The commission shall develop and adopt guidelines,by December Include a description and the location of the projects contained in the
1,1006, including regional programming targets,for the program funded program,the amount offunds allocated to each project,the status of each
by this subdivision, and shall allocate funds from the account to projects project, and a description of the mobility improvements the program is
after reviewing project nominations submitted by the Department of achieving.
Transportation andbyregional transportationplanning agencies orcounty (b) One billion dollars ($1,000,000,000) shall be made available,
transportation commissions or authorities pursuant to paragraph(4). upon appropriation in the annual Budget Bill by the Legislature, to
(3) Subject to the guidelines adopted pursuant to paragraph(2),the the department for improvements to State Route 99. Funds may be
department shall nominate, by no later than January 15, 2007,projects used for safely, operational enhancements, rehabilitation, or capacity
for the allocation of funds from /he account on a statewide basis. The improvements necessary to improve the State Route 99 corridor traversing
department's nominations shall be geographically balanced and shall approximately 400 miles of the central valley of this state.
reflect the department's assessment ofaprogram that best meets thepo/icy (c) Three billion one hundred million dollars ($3,100,000,000)
objectives described in paragraph(1). shall be deposited in the California Ports Infrastructure, Security, and
(4) Subject to the guidelines adopted pursuant to paragraph (2), Air Quality Improvement Account, which is hereby created in the fund.
a regional transportation planning agency or county transportation The money in the account shall be available, upon appropriation by the
commission or authority responsible for preparing a regional Legislature and subject to such conditions and criteria as the Legislature
transportation improvement plan under Section 14527 may nominate may provide by statute,as follows:
projects identified pursuant to paragraph (1) that best meet the policy
objectives described in thatparagraphforfundingfrom the account.Projects (1) (A) Two billion dollars ($2,000,000,000) shall be transferred
nominated pursuant to this paragraph shall be submitted to the commission to the Trade Corridors Improvement Fund, which is hereby created. The
for consideration forfunding by no later than January 15,2007 money in this fund shall be available, upon appropriation in the annual
(5) All nominations to the California Transportation Commission Budget Bill by the Legislature and subject to such conditions and criteria
shall be accompanied by documentation regarding the quantitative and as the Legislature may provide by statute,for allocation by the California
qualitative measures validating each project's consistency with the policy Transportation Commission for infrastructure improvements along
objectives described in paragraph (1). All projects nominated to the federally designated "Trade Corridors of National Significance"in this
commission for funds from this account shall be included in a regional state or along other corridors within this state that have a high volume
transportation plan. of freight movement, as determined by the commission. In determining
(6) After review of the project nominations, and supporting projects eligible for funding, the commission shall consult the trade
documentation, the commission, by no later than March 1, 2007, shall infrastructure and goods movement plan submitted to the commission
adopt an initial program ofprojects to be funded from the account. This by the Secretary of Business, Transportation and Housing and the
program may be updated every two years in conjunction with the biennial Secretary for Environmental Protection. No moneys shall be allocated
process for adoption of the state transportation improvement program from this fund until the report is submitted to the commission for its
pursuant to guidelines adopted by the commission. The inclusion of a consideration,provided the report is submitted no later than January 1,
project in the program shall be based on a demonstration that the project 2007. The commission shall also consult trade infrastructure and goods
meets all of thefollowing criteria: movement plans adopted by regional transportation planning agencies,
(A) Is a high-priority project in the corridor as demonstrated by adopted regional transportation plans required by state and federal law,
either of the following: (i) its inclusion in the list of nominated projects and the statewide port master plan prepared by the California Marine
by both the department pursuant to paragraph (3) and the regional and Intermodal Transportation System Advisory Council(Cal-MITSAC)
transportation planning agency or county transportation commission or pursuant to Section 1760 of the Harbors and Navigation Code, when
authority,pursuant to paragraph (4); or(ii) if needed to fully fund the determining eligible projects for funding.Eligible projects for these funds
project,the identification and commitment ofsupplemental funding to the include,but are not limited to,all of thefollowing:
projectfrom other state,local,orfederal funds. (i) Highway capacity improvements and operational improvements
(B) Can commence construction or implementation no later than to more efficiently accommodate the movement offreight,particularly for
December 31,2011. ingress and egress to and from the state's seaports, including navigable
(C) Improves mobility in a high-congestion corridor by improving inland waterways used to transportfreight between seaports,landportsof
travel times or reducing the number of daily vehicle hours of delay, entry,and airports,and to relieve traffic congestion along major trade or
improves the connectivity of the state highway system between rural, goods movement corridors.
suburban, and urban areas, or improves the operation or safety of a (ii) Freight rail system improvements to enhance the ability to move
highway or road segment. goodsfr om seaports,land ports ofentry,and airports to warehousing and
(D) Improves access to jobs,housing,markets,and commerce. distribution centers throughout California,including projects that separate
(7) Where competingprojects offer similar mobility improvements to rail lines from highway or local road traffic, improvefreight rail mobility
a speck corridor,the commission shall consider additional benefits when through mountainous regions, relocate rail switching yards, and other
Text of Proposed Laws 1 115
TEXT OF PROPOSED LAWS �r
projects that improve the efficiency and capacity of the rail freight system. (E) Thermal protective equipment.
(iii) Projects to enhance the capacity and efficiency ofports. (F) Site identification instruments capable ofprovidingafingerprint
(iv) Truck corridor improvements, including dedicated truck fora broad inventory of chemical agents.
facilities or truck tollfacilities. (G) Other devices capable ofdetecting weapons ofmass destruction
(v) Border access improvements that enhance goods movement using chemical,biological,or other similar substances.
® between California and Mexico and that maximize the state's ability to (y) Other security equipment to assist in any of the following:
access coordinated border infrastructure funds made available to the (i) Screening ofincoming vessels,trucks,and incoming or outbound
state by federal law. cargo.
(vi) Surface transportation improvements tofacilitate the movement (it) Monitoring the physical perimeters of harbors,ports,and ferry
ofgoods to and from the state's airports. terminals.
(B) The commission shall allocate funds for trade infrastructure (iii) Providing or augmenting onsite emergency response
improvemenlsfrom the account in a manner that(i)addresses the state's capability.
most urgent needs, (ii)balances the demands of various ports(between (1) Overweight cargo detection equipment, including, but not
large and small ports, as well as between seaports, airports, and land limited to,intermodal crane scales and truck weight scales.
Ports of entry),(iii)provides reasonable geographic balance between the (J) Developing disaster preparedness or emergency response
state's regions,and(iv)places emphasis on projects that improve trade plans.
corridor mobility while reducing emissions ofdiesel particulate and other The Office of Emergency Services shall report to the Legislature on
pollutant emissions.In addition, the commission shall also consider the March 1 ofeach year on the manner in which thefunds available pursuant
following factors when allocating these funds: to this paragraph were expended for that fiscal year.
(i) "Velocity,"which means the speed by which large cargo would (d) Two hundred million dollars($200,000,000)shall be available,
travel from the port through the distribution system. upon appropriation by the Legislature, for schoolbus retrofit and
(ii) "Throughput," which means the volume of cargo that would replacement to reduce air pollution and to reduce children's exposure to
movefrom the port through the distribution system. diesel exhaust.
(iii) "Reliability," which means a reasonably consistent and (e) Two billion dollars ($2,000,000,000) shall be available for
predictable amount of time jor cargo to travel from one point to another projects at the state transportation unprovementprogram,to augnientfunds
on any given day or at any given time in California. otherwise available for this purpose from other sources.Thefunds provided
(iv) "Congestion reduction," which means the reduction in by this subdivision shall be deposited in the Transportation Facilities
recurrent daily hours of delay to be achieved. Account which is hereby created in the fund,and shall be available,upon
(C) The commission shall allocate funds made available by this appropriation by the Legislature,to the Department of Transportation,as
paragraph to projects that have identified and committed supplemental allocated by the California Transportation Commission in the same manner
fundingfrom appropriate local,federal orprivate sources.Thecommission asfunds allocatedfor those projects under existing law.
shall determine the appropriate amount of supplemental funding each (n (1) Four billion dollars ($4,000,000,000) shall be deposited
project should have to be eligible for moneys from this fund based on in the Public Transportation Modernization, Improvement, and Service
a project-by-project review and an assessment of the project's benefit Enhancement Account,which is hereby created in the fund.Funds in the
to the state and the program. Except for border access improvements account shall be made available,upon appropriation by the Legislature,
described in clause(v)of subparagraph(A), improvements funded with to the Department of Transportation for intercity rail projects and to
moneys from this fund shall have supplemental funding that is at least commuter or urban rail operators, bus operators, waterborne transit
equal to the amount of the contribution frons the fund. The commission operators, and other transit operators in California for rehabilitation,
may give priorityforfunding to projects with higher levels of committed safety or modernization improvements, capital service enhancements or
supplemental funding, expansions,new capital projects,bus rapid transit improvements,or for
(D) The commission shall include in its annual report to the rolling stockprocurement,rehabilitation,or replacement.
Legislature,required by Section 14535,a summary of its activities related (2) Of the funds made available in paragraph (1),four hundred
to the administration of thisprogram.The summary should,at a minimum, million dollars($400,000,000)shall be available,upon appropriation by
include a description and the location of the projects contained in the the Legislature,to the departmentfor intercity rail improvements,ofwhich
program,the amount offunds allocated to each project,the status ofeach one hundred twenty-five million dollars($125,000,000)shall be used for
project, and a description of the mobility and air quality improvements the procurement ofadditional intercity railcars and locomotives.
the program is achieving. (3) Of the funds remaining after the allocations in paragraph(2),
(2) One billion dollars ($1,000,000,000)shall be made available, 50 percent shall be distributed to the Controller,for allocation to eligible
upon appropriation by the Legislature and subject to such conditions and agencies using theformula in Section 99314 of the Public Utilities Code,
criteria contained in a statute enacted by the Legislature,to the State Air and 50 percent shall be distributed to the Controller,for allocation to
Resources Board for emission reductions,not otherwise required by law eligible agencies using the formula in Section 99313 ofthe Public Utilities
or regulation,front activities related to the movement of freight along Code, subject to the provisions governing funds allocated under those
California's trade corridors. Funds made available by this paragraph sections.
are intended to supplement exisling funds used to finance strategies and (g) One billion dollars($1,000,000,000)shall he deposited in the
public benefit projects that reduce emissions and improve air quality in State-Local Partnership Program Account,which is hereby created in the
trade corridors commencing at the state's airports, seaports, and land fund. The funds shall be available,upon appropriation by the Legislature
ports of entry. and subject to such conditions and criteria as the Legislature may provide
(3) One hundred million dollars($100,000,000)shall be available, by statute,for allocation by the California Transportation Commission
upon appropriation by the Legislature, to the Office of Emergency over afiveyearperiod to eligible lransporlationprojects nominatedby an
Services to be allocated, as grants,for port, harbor, and ferry terminal applicant transportation agency.A dollarfor dollar match of local funds
security improvements. Eligible applicants shall be publicly owned shall be required far an applicant transportation agency to receive state
ports, harbors, and ferryboat and ferry terminal operators, which may funds under this program.
submit applications for projects that include, but are not limited to, the (h) One billion dollars($1,000,000,000)shall be deposited in the
following: Transit System Safety,Security,and Disaster Response Account,which is
(A) Video surveillance equipment. hereby created in the fund.Funds in the account shall be made available,
(B) Explosives detection technology,including,but not limited to, upon appropriation by the Legislature and subject to such conditions and
X-ray devices. criteria as the Legislature may provide by statute,for capital projects
(C) Cargo scanners. that provide increased protection against a security and safety threat,
and for capital expenditures to increase the capacity oftransit operators,
(D) Radiation monitors. including waterborne transit operators, to develop disaster response
116 1 Text of Proposed Laws
(PROPOSITION 1B CONTINUED) TEXT OF PROPOSED LAWS
transportation systems that can move people, goods, and emergency (2) Funds received under this subdivision shall be deposited asfollows
personnel and equipment in the aftermath of a disaster impairing the in order to avoid the commingling of those funds with other local funds:
mobility ofgoods,people,and equipment. (A) In the case of a city, into the city account that is designated for
(i) One hundred twenty-five million dollars ($125,000,000) shall the receipt ofstatefundsallocatedforlocal streets and roads.
be deposited in the Local Bridge Seismic Retrofit Account, which is (B) In the case ofan eligible county,into the county road fund.
hereby created in the fund. The funds in the account shall be used, upon (C) In the case of a city and county, into a local account that is
appropriation by the Legislature, to provide the 11.5 percent required
designated for the receipt of state funds allocated for local streets and
matchforfederal Highway Bridge Replacement andRepairfunds available roads.
to the state for seismic work on local bridges,ramps,and overpasses,as
identified by the Department of Transportation. (3) For /he purpose of allocating funds under this subdivision
(j) (I) Two hundred fifty million dollars ($250,000,000) shall be to cities and a city and county, the Controller shall use the most recent
population estimates prepared by the Demographic Research Unit of the
deposited in the Highway-Railroad Crossing Safety Account, which is Department of Finance.For a city that incorporated after January 1,1998,
hereby created in the fund.Funds in the account shall be available,upon that does not appear on the most recent population estimates prepared by
appropriation by the Legislature,to the Department of Transportation for the Demographic Research Unit, the Controller shall use the population
the completion of high-priority grade separation and railroad crossing determinedfor that city under Section 11005.3 ofthe Revenue and Taxation
safety improvements. Funds in the account shall be made available for Code.
allocation pursuant to the process established in Chapter 10(commencing (q) Funds apportioned to a city,county,or city and county under this
with Section 2450)of Division 3 of the Streets and Highways Code,except
that a dollar for dollar match of nonstate funds shall be provided for each subdivision shall be used for improvements to transportation facilities that
project,and the limitation on maximum project cost in subdivision(g)of will assist in reducing local traffic congestion and further deterioration,
Section 2454 of the Streets and Highways Code shall not be applicable to improving traffic flows,or increasing traffic safety that may include, but
projects funded with these funds. not be limited to,street and highway pavement maintenance,rehabilitation,
(2) Notwithstanding the funding allocation process described in installation, construction and reconstruction of necessary associated
paragraph(1),in consultation with the department and the Public Utilities .facilities such as drainage and traffic control devices,or the maintenance,
rehabilitation, installation, construction and reconstruction ojjacilities
Commission, the California Transportation Commission shall allocate that expand ridership on transit systems, safety projects to reduce
one hundred million dollars($100,000,000)of thefunds in the account to fatalities, or as a local match to obtain state or federal transportation
high-priority railroad crossing improvements,including grade separation fundsfor similar purposes.
projects, that are not part of the process established in Chapter 10 (5) At the conclusion ojeachfisca!year during whichacity or county
(commencing with Section 2450)of Division 3 ofthe Streets and Highways
Code. The allocation of funds under this paragraph shall be made in expends the funds it has received under this subdivision, the Controller
consultation and coordination with the High-Speed Rail Authority created may verify the city's or county's compliance with paragraph(4).Any city
pursuant to Division 19.5(commencing with Section 185000)of the Public or county that has not complied with paragraph (4)shall reimburse the
Utilities Code. state for the funds it received during that fiscal year.Any funds withheld
(k) (I) Seven hundred fifty million dollars ($750,000,000) shall or returned as a result of a failure to comply with paragraph (4)shall
be deposited in the Highway Safety, Rehabilitation, and Preservation be reallocated to the other counties and cities whose expenditures are in
compliance.
Account,which is hereby created in the fund.Funds in the account shall be Article 3. Fiscal Provisions
available, upon appropriation by the Legislature, to the Department of
Transportation,as allocated by the California Transportation Commission,
for the purposes ofthe state Highway operation and protection program as 8879.25. Bonds in the total amount of nineteen billion nine hundred
described in Section 14526.5. twenty-jive million dollars ($19,925,000,000), exclusive of refunding
bonds, or so much thereof as is necessary, are hereby authorized to be
(2) The department shall develop a program for distribution of two
hundred and fifty million dollars($250,000,000)from the funds identified issued and sold for carrying out the purposes expressed a this chapter
1 to and traffic light synchronization projects or other and to reimburse the General Obligation Bond Expense Revolving Fund
in
paragraph () j ffi g y P I pursuant to Section 16724.5. All bonds herein authorized which have
technology-based improvements to improve safety, operations and the been duly sold and delivered as provided herein shall constitute valid and
effective capacity of local streets and roads. legally bindinggeneral obligations of the state,and the full faith and credit
(l) (I) Two billion dollars ($2,000,000,000)shall be deposited in of the state is hereby pledged for the punctual payment of both principal
the Local Streets and Road Improvement, Congestion Relief, and Traffic and interest thereof
Safety Account of2006,which is hereby created in thejund. The proceeds 8879.26. The bonds authorized by this chapter shall be prepared,
ofbonds deposited into that account shall be available,upon appropriation executed,issued,sold,paid,and redeemed as provided in the State Genera[
by the Legislature,for the purposes specified in this subdivision to the Obligation Bond Law(Chapter 4(commencing with Section 16720)of Part
Conlrollerfor administration and allocation in thefiscal year in which the 3 of Division 4),except subdivision(a)of Section 16727 to the extent that
bonds are issued and sold,including any interest or other return earned on subdivision is inconsistent with this chapter,and all of the other provisions
the investment of those moneys,in thefollowing manner: of that law as amended from time to time apply to the bonds and to this
(A) Fifty percent to the counties, including a city and county, in chapter and are hereby incorporated in this chapter as though setforth in
accordance with the followingformulas: full in this chapter.
(i) Seventy-fivepercent ofthefundspayable under this subparagraph 8879.27 (a) Solelyfor the purpose ofauthorizing the issuance and
shall be apportioned among the counties in theproportion that the number sale,pursuant to the State General Obligation Bond Law, of the bonds
offee-paid and exempt vehicles that are registered in the county bears to authorized by this chapter, the.Highway Safety, Traffic Reduction, Air
the number offee-paid and exempt vehicles registered in the state. Quality,and Port Security Committee is hereby created.For the purposes
(ii) Twenty fivepercent ofthefundspayable under this subparagraph of this chapter, the Highway Safety, Traffic Reduction, Air Quality, and
shall be apportioned among the counties in theproportion that the number Port Security Committee is"the committee"as that term is used in the State
of miles of maintained county roads in each county bears to the total General Obligation Bond Law. The committee consists of the Treasurer,
number ofmi/es ofmaintained county roads in the state.For the purposes the Controller,the Director of Finance,and the Secretary of the Business,
of apportioningfunds under this clause,any roads within the boundaries Transportation and Housing Agency, or a designated representative of
of a city and county that are not state highways shall be deemed to be each of those officials. The Treasurer shall serve as the chairperson of the
county roads. committee.A majority of the committee may act for the committee.
(B) Fifty percent to the cities, including a city and county, (b) The committee may adopt guidelines establishing requirements
apportioned among the cities in the proportion that the total population of for administration of its financing programs to the extent necessary to
the city bears to the total population ofall the cities in the state,provided, protect the validity of, and tax exemption for, interest on the bonds. The
however, that the Controller shall allocate a minimum of four hundred guidelines shall not constitute rules, regulations,orders, or standards of
thousand dollars($400,000)to each city,pursuant to this subparagraph. genera[application.
it**Text of Proposed Laws 1 117
TEXT OF PROPOSED LAWS
(c) For the purposes of the State General Obligation Bond Law,any
department receiving an allocation pursuant to this chapter is designated
to be the"boardU
8879.28. UPROPOSITION 1C
Upon request of board stating that funds are needed
for purposes of this chapter, the committee shall determine whether or This law proposed by Senate Bill 1689 of the 2005-2006 Regular
not it is necessary or desirable to issue bonds authorized pursuant to this Session (Chapter 27, Statutes of 2006) is submitted to the people
chapter in order to cavy out the actions specified in Section 8879.23,and, in accordance with the provisions of Article XVI of the California
fso,the amount ojbonds to be issued and sold.Successive issues ofbonds Constitution.
may be authorized and sold to carry out those actions progressively,and This proposed law adds sections to the Health and Safety Code;
are not required to be sold at any one time.Bonds may bear interest subject therefore,new provisions proposed to be added are printed in italic type to
to federal income tax. indicate that they are new.
8879.29. There shall becollected annually,inthe same manner and PROPOSED LAW
at the same time as other state revenue is collected, a sum of money in
addition to the ordinary revenues ofthe state,sufficient to pay the principal
of,and interest on,the bonds as provided herein,and all officers required SEC. 2. Part 12 (commencing with Section 53540) is added to
by law to perform any duty in regard to the collections of state revenues Division 31 of the Health and Safety Code,to read:
shall collect that additional sum.
8879.30. Notwithstanding Section 13340, there is hereby PART 12. HOUSING AND EMERGENCY SHELTER
appropriated from the General Fund in the State Treasury,for the purposes TRUST FUND ACT OF 2006
of this chapter,an amount that will equal the total of the following:
(a) The sum annually necessary to pay the principal of,and interest CHAPTER I. GENERAL PROVISIONS
on, bonds issued and sold pursuant to this chapter, as the principal and
interest become due and payable. 53540. (a) This part shall be known as the Housing and Emergency
(b) The sum which is necessary 10 carry out Section 8879.31, Shelter Trust Fund Act of2006.
appropriated without regard tofiscal years. (b) This part shall only become operative upon adoption by the
8879.31. The board may request the Pooled Money Investment voters at the November 7,2006,statewide general election.
Board to make a loan from the Pooled Money Investment Account, in 53541. As used in this part,the following terms have the following
accordance with Section 16312,for purposes of this chapter. The amount meanings:
of the request shall not exceed the amount of the unsold bonds which (a) "Board" means the Department of Housing and Community
the committee has, by resolution, authorized to be sold for the purpose Development for programs administered by the department, and the
of this chapter, less anv amount withdrawn pursuant to Section 8879.32. California Housing Finance Agency for programs administered by the
The board shall execute any documents as required by the Pooled Money agency.
Investment Board to obtain and repay the loan.Any amount loaned shall (b) "Committee" means the Housing Finance Committee created
be deposited in the fund to be allocated in accordance with this chapter. pursuant to Section 53524 and continued in existence pursuant to Section
8879.32. For the purpose ofcarrving out this chapter,the Director of 53548.
Finance may,by executive order,authorize the withdrawal from the General (c) "Fund"means the Housing and Emergency Shelter Trust Fund
Fund ofany amount or amounts not to exceed the amount ofthe unsold bonds created pursuant to Section 53545.
which the committee has,by resolution,authorized to be sold for the purpose
of carrying out this chapter.Any amounts withdrawn shall be deposited in CHAPTER 2. HOUSING AND EMERGENCY SHELTER
the Highway Safety, Traffic Reduction,Air Quality,and Port Security Fund TRUST FUND OF 2006 AND PROGRAM
of 2006.Any money made available under this section shall be returned to
the General Fund,plus the interest that the amounts would have earned in 53545. The Housing and Emergency Shelter Trust Fund of 1006
the Pooled Money Investment Account,from money receivedfrom the sale of is hereby created in the State Treasury. The Legislature intends that the
bonds which would otherwise be deposited in that fund. proceeds of bonds deposited in the fund shall be used to fund the housing-
8879.33. The bonds may be refunded in accordance with Article 6 related programs described in this chapter over the course of the next
(commencing with Section 16780)ofthe State General Obligation Bond Law. decade. The proceeds of bonds issued and sold pursuant to this part for
Approval by the electors ofthis act shall constitute approval ofany refunding the purposes specified in this chapter shall be allocated in the following
bonds issued pursuant to the State General Obligation Bond Law. manner:
8879.34. Notwithstanding any provisions in the State General (a) (1) One billion five hundred million dollars($1,500,000,000)to
Obligation Bond Law, the maximum maturity of any bonds authorized by be deposited in the Affordable Housing Account,which is hereby created
this chaptershall not exceed 30yearsfrom the date ofeach respective series. in the fund.Notwithstanding Section 13340 of the Government Code, the
The maturity ofeach series shall be calculated from the date ofeach series. money in the account shall be continuously appropriated in accordance
8879.35. The Legislature herebyfinds and declares that,inasmuch with the following schedule:
as the proceeds from the sale of bonds authorized by this chapter are not (A) (i) Three hundredforty five million dollars($345,000,000)shall
'proceeds of taxes"as that term is used in Article XIII B of the California be transferred to the Housing Rehabilitation Loan Fund to be expended for
Constitution, the disbursement of these proceeds is not subject to the the Multifamily Housing Program authorized by Chapter 6.7(commencing
limitations imposed by that article. with Section 50675)of Part 2. The priorities specified in Section 50675.13
8879.36. Notwithstanding any provision of the State General shall apply to the expenditure offunds pursuant to this clause.
Obligation Bond Law with regard to the proceeds from the sale of bonds (it) Fifty million dollars ($50,000,000)shall be transferred to the
authorized by this chapter that are subject to investment under Article 4 Housing Rehabilitation Loan Fund to be expended under the Multifamily
(commencing with Section 16470) of Chapter 3 of Part 2 of Division 4, Housing Program authorized by Chapter 6.7(commencing with Section
the Treasurer may maintain a separate account for investment earnings, 50675) of Part 1 for housing meeting the definitions in paragraphs (2)
order the payment of those earnings to comply with any rebate requirement and(3) of subdivision (e) of Section 11139.3 of the Government Code.
applicable under federal law, and may otherwise direct the use and The department may provide higher per-unit loan limits as necessary to
investment of those proceeds so as to maintain the tax-exempt status of achieve affordable housing costs to the target population.Any funds not
those bonds andto obtain any other advantage underfederallawon behalf encumberedfortheputposesofthisclause within 30months ofavailability
of the funds of this state. shall revert for general use in the Multifamily Housing Program.
8879.37 All money derived from premium and accrued interest on (B) One hundred ninety-five million dollars ($195,000,000) shall
bonds sold pursuant to this chapter shall be transferred to the General be transferred to the Housing Rehabilitation Loan Fund to be expended
Fund as a credit to expenditures for bond interest. for the Multifamily Housing Program authorized by Chapter 6.7
118 1 Text of Proposed Laws***