BILL NUMBER: AB 1012	CHAPTERED  10/10/99

	CHAPTER   783
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 7, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 10, 1999
	PASSED THE SENATE   SEPTEMBER 8, 1999
	AMENDED IN SENATE   SEPTEMBER 3, 1999
	AMENDED IN SENATE   AUGUST 25, 1999
	AMENDED IN SENATE   AUGUST 16, 1999
	AMENDED IN SENATE   JULY 12, 1999
	AMENDED IN ASSEMBLY   MAY 28, 1999
	AMENDED IN ASSEMBLY   APRIL 27, 1999
	AMENDED IN ASSEMBLY   APRIL 8, 1999

INTRODUCED BY   Assembly Member Torlakson
   (Coauthor:  Senator Burton)

                        FEBRUARY 25, 1999

   An act to add Sections 14053, 14529.01, 14529.3, 14529.6, and
14529.11 to, and to add and repeal Section 14007.5 of, the Government
Code, and to amend Sections 182.6 and 182.7 of the Streets and
Highways Code, relating to highways, making an appropriation
therefor, and declaring the urgency thereof, to take effect
immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1012, Torlakson.  Transportation:  project delivery:  funding.
   (1) Existing law generally authorizes the Department of
Transportation to plan, design, construct, operate, and maintain
those transportation systems that the Legislature has made, or may
make, the responsibility of the department.
   This bill would require the Director of Transportation, until June
30, 2003, to establish 4 transportation project delivery advisory
teams in certain regional districts of the department to assist
expeditious delivery of transportation projects.  Each team would
include, at a minimum, the regional district director, the executive
director of each agency responsible for approval of each county's
submission to the state transportation improvement program, the
executive director of the regional or metropolitan transportation
planning organization in the regional district, and other members, to
be nominated by the entities to be represented not later than a
specified date.  The bill would require each team to provide a report
identifying how transportation project delivery could be accelerated
by changes in federal, departmental, regional, or local agency
programs or procedures, changes in federal, state, or local law, or
any other strategies that could be taken to accelerate implementation
of transportation improvements.  The bill would require the report
to be submitted not later than a specified date to the Governor, the
Legislature, and specified other persons.
   The bill would require the department to provide staff support for
a management information system committee consisting of
representatives of the department, the California Transportation
Commission, the Department of Information Technology, counties,
cities, the agencies responsible for approving each county's
submission to the state transportation improvement program, and the
designated, multicounty regional transportation planning agencies.
The bill would require the committee to develop a plan for a
management information system for project monitoring and project
delivery purposes.  The department would be required to submit the
plan to the Governor and Legislature not later than a specified date.

   (2) Existing law prescribes a 4-year process for estimating the
amount of state and federal funds to be available for transportation
projects in the state, and for appropriating and allocating the
available funds to those projects.
   This bill would add an advance project development element to that
process.
   (3) Existing law authorizes the department, upon the application
of the governing authority of any county, city, or other governmental
agency, to perform certain work relating to highways for that
authority or agency and accept moneys for that work for deposit in
the Treasury to the credit of any state fund that the department
designates.
   This bill would require that funds received by the department as
reimbursement for any work performed by the department under contract
or other agreement for any local agency or entity or for any other
state agency or state entity, as specified, be deposited in the
Transportation Reimbursable Work Account which the bill would create
in the State Transportation Fund.
   The bill would continuously appropriate the money in the account
to the department for the purpose of funding the performance of
reimbursable work by the department.
   The bill would prohibit the department from making expenditures
from the account unless the department has determined that it has
sufficient resources to complete both the reimbursable project and
all projects under the state transportation improvement program in a
timely manner.
   (4) Existing law requires the funds in the State Highway Account
in the State Transportation Fund to be programmed, budgeted, and
expended to maximize the use of federal funds based on a specified
sequence of priorities.  Existing law also requires state operations
expenditure amounts of the department for interregional and regional
transportation improvement projects to be listed as specified, but
states that those amounts, other than those for the acquisition of
right-of-way and construction, shall not be subject to allocation by
the commission.
   Existing law also authorizes a local jurisdiction to advance a
project included in the state transportation improvement program to
an earlier fiscal year through the use of its own funds.  Under these
provisions, existing law authorizes a local agency to enter into an
agreement with the appropriate transportation planning agency, the
department, and the commission to use its own funds to develop,
purchase right-of-way for, and construct a transportation project
within its jurisdiction if the project is one that is included in the
adopted state transportation improvement program, funded as
specified, and pursuant to specified requirements.
   This bill would also authorize the commission to advance
unallocated funds in the State Highway Account, in the form of loans,
to transportation planning agencies, county transportation
commissions, transit districts, and local transportation authorities
for the advancement of projects eligible under the state
transportation improvement program that are included within an
adopted regional transportation plan.  Thus, by making money in the
State Highway Account available for a new purpose, the bill would
make an appropriation.  The bill also would set forth procedures
governing the advancing of these funds and would require the
commission to adopt guidelines and procedures governing these
provisions not later than specified dates.
   The bill would require the commission to begin operation of the
loan program not later than a specified date.
   (5) Existing law prohibits projects from being included in the
interregional transportation improvement program or a regional
transportation improvement program without a complete project study
report or a major investment study.  Projects included in those
transportation improvement programs are considered for incorporation
in the state transportation improvement program.
   This bill would require the commission to adopt, not later than
January 30, 2000, guidelines for a process to expedite compliance
with the requirement that a project study report be prepared in order
for a project to be considered for inclusion in the state
transportation improvement program, as specified.
   (6) Existing law requires that all federal and state funds to be
allocated by the commission be programmed in accordance with certain
formulas.
   This bill would require the department to be responsible for
closely monitoring the use of federal transportation funds and would
provide procedures for monitoring the use of those funds.
   (7) The bill would declare that it is to take effect immediately
as an urgency statute.
   Appropriation:  yes.


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


  SECTION 1.  (a) The Legislature finds and declares all of the
following:
   (1) The voters at the November 3, 1998, general election passed
Proposition 2 to stop future diversion of transportation funds for
nontransportation purposes by a 75 percent majority vote, thus
indicating overwhelming support for using these funds on needed
transportation improvements.
   (2) In all of the history of the State Highway Account, in the
State Transportation Fund, which is more than 60 years, the cash
balance has averaged under five hundred million dollars
($500,000,000).
   (3) As of January 1, 1999, the cash balance in the State Highway
Account is more than one billion eight hundred million dollars
($1,800,000,000).
   (4) There are numerous reasons for this large cash balance.
   (5) The people of California who pay for and are dependent on this
state's transportation system expect their tax funds to be put to
work building, operating, rehabilitating, and maintaining the
transportation system.
   (6) The people of California do not expect their tax funds to
remain deposited in the State Highway Account for years after being
collected, where they provide no transportation benefits.
   (7) State and local transportation needs are increasing at an
accelerating rate as the overall highway and transit system continues
to deteriorate rapidly with age, exacerbated by numerous weather,
earthquake, and other ravages.
   (8) As the state's economy continues its recovery since the
mid-1990's, more and more pressure has been put on the transportation
system by commerce and the increase in commuter traffic.
   (9) The Department of Finance projects another 20 to 25 percent
increase in the population that will be trying to use California's
already overburdened transportation system over the next 20 years.
   (10) In order to bring this cash balance down to a reasonable
level, the Department of Transportation  needs to update its
information management systems to modern standards that reflect
current public and private practices and technology.
   (11) The Department of Transportation, the California
Transportation Commission, regional transportation planning agencies,
local transportation commissions, city and county governments, local
transit agencies, statewide labor organizations, and businesses and
agricultural employers all agree that this cash balance must be used
for high priority transportation needs as soon as possible.
   (b) Accordingly, it is the intent of the Legislature, by the
enactment of this act, to expedite the use of the excessively large
cash balance in the State Highway Account and to direct the
California Transportation Commission and Department of Transportation
to accomplish the tasks necessary to put these taxpayer funds to
work at the earliest possible time on needed transportation
improvements.
  SEC. 2.  Section 14007.5 is added to the Government Code, to read:

   14007.5.  (a) For purposes of this section, "district" means a
numbered district of the department.
   (b) The director shall establish four transportation project
delivery advisory teams, two in northern California districts and two
in southern California districts, to assist expeditious delivery of
state and local transportation projects.  One of the districts
selected for the advisory teams shall include a county that has a
population of less than one million persons, and another selected
district shall include a county that has a population of less than
750,000 persons.
   (c) Each team shall include, at a minimum, all of the following
members:
   (1) The regional district director.
   (2) The executive director of each agency responsible for approval
of each county's submission to the state transportation improvement
program.
   (3) The executive director of the regional or metropolitan
transportation planning organization in the regional district.
   (4) The following members shall be nominated by the entities to be
represented not later than 60 days after enactment of the act that
added this section to the Government Code during the 1999-2000
Regular Session, as follows:
   (A) A member representing the local transit districts.  In
districts with a population of more than one million persons, there
shall be two members, one from a local bus operator and one from a
regional rail operator.
   (B) A member representing the cities in the regional district.
This member shall be a city public works director, chosen by the City
Selection Committee.  In regional districts with populations of more
than one million persons, there shall be two members, one from
cities with populations of less than 100,000 persons and one from
cities with populations of 100,000 persons or more.
   (C) A member who shall be a county public works director, chosen
by the counties in the regional district.
   (D) A member representing the state employee union representing
the department's engineering and professional employees responsible
for project delivery functions, chosen by the Professional Engineers
in California Government.
   (E) A member representing the private construction trade unions,
jointly nominated by the Laborers and Operating Engineers unions.
   (F) A member of an association that represents private employers,
selected by the director, in consultation with the business groups in
the district.
   (d) In addition to the members listed under subdivision (c), the
regional district director shall invite a representative from the
federal Department of Transportation to attend meetings of the
advisory teams.  The project delivery advisory teams shall hold their
initial meeting not later than 90 days after enactment of the act
that added this section to the Government Code during the 1999-2000
Regular Session.
   (e) Staff support for the project delivery teams shall be  made
available by the department and the local agencies responsible for
submissions to the regional transportation improvement program and
the state transportation improvement program.
   (f) The district director shall act as team coordinator of each
project delivery team for the purpose of setting meetings, making
announcements, producing written materials, and providing logistics.

   (g) All financial support of the project delivery teams shall be
made available from existing planning, programming, and design
resources, and other resources currently available to team members.
   (h) (1) Notwithstanding Section 7550.5, each project delivery
advisory team shall complete reports  identifying how transportation
project delivery could be significantly accelerated through any or
all of the following:
   (A) Changes in federal, departmental, regional, or local agency
programs, organization, staffing levels, procedures, guidelines or
any other actions relating to operation of those agencies.
   (B) Changes in local, state, or federal law, procedures,
regulations, or guidelines.
   (C) Granting of new authority with the intent of accelerating
project delivery.
   (D) Any other new, creative strategies that could reasonably be
taken on a regional district or statewide basis to accelerate
implementation of needed transportation improvements.
   (2) Each project delivery advisory team, within 180 days after its
initial meeting, shall deliver copies of its final report to the
Governor, the secretary, the director, the chairperson of the
commission, and the Chairperson of the Transportation Policy
Committees of both houses of the Legislature.  One report shall be
provided to each of the state legislators representing the regional
district.
   (i) This section shall become inoperative on June 30, 2003, and,
as of January 1, 2004, is repealed, unless a later enacted statute,
which is enacted before January 1, 2004, deletes or extends the dates
on which it becomes inoperative or is repealed.
  SEC. 3.  Section 14053 is added to the Government Code, to read:
   14053.  (a) It is the intent of the Legislature, in enacting this
section, to establish an advisory body that, among other things,
develops recommendations on ways to upgrade and modernize the data
automation system within the department in a manner that enables the
department to track the status of specific transportation projects
and closely monitor the use of federal transportation funds, and
includes other features that foster efficiencies in the delivery of
transportation projects in this state.  It is the intent of the
Legislature that the advisory body established under this section
develop a plan that focuses on ways to complement existing efforts
within the department to upgrade the department's internal data
automation system.
   (b) (1) The department shall provide staff support for a
management information system committee.
   (2) The secretary shall designate the chairperson of the committee
and shall appoint representatives to the committee from all of the
following:
   (A) The commission.
   (B) The Department of Information Technology.
   (C) Counties.
   (D) Cities.
   (E) Agencies responsible for approving each county's submission to
the state transportation improvement program.
   (F) Designated, multicounty regional transportation planning
agencies.
   (G) The department.
   (3) The committee shall develop a plan for a management
information system for project monitoring and project delivery
purposes.  The plan shall specifically deal with the issue of closely
monitoring the use of federal transportation funds, including, but
not limited to, those funds that are made available through the
federal Regional Surface Transportation Program and the federal
Congestion Management and Air Quality program to ensure full and
timely use of those funds under subdivision (i) of Section 182.6 of,
and subdivision (f) of Section 182.7 of, the Streets and Highways
Code.   The committee shall consider developing all of the following:

   (A) A report listing the data that would be required to provide
necessary project accountability and tracking, including, but not
limited to, requirements for specific project identification,
budgeting, scheduling, milestone reporting, expenditures, and
progress reports.
   (B) A report on the anticipated costs of building and operating
the system.
   (C) A description of an appropriate procurement  process.
   (D) Any other information necessary for anticipating and
effectively managing project delivery issues in an expeditious
manner.
   (c) The committee shall examine the feasibility of developing a
system designed to reflect the diverse constituency of agencies that
may need access to the system, including, but not limited to,
regional transportation planning agencies, self-help sales tax
authorities, local cities and counties, transit districts, and other
recipients of funds under the state transportation improvement
program.
   (d) The committee shall consider one or more models for
implementing the system in each county or region of the state.  The
model shall be appropriate for use in rural or urban districts.
   (e) The plan shall contain recommendations for improvements to the
department's internal data management system that can be implemented
in phases.  The first phase of the plan shall include
recommendations on ways to improve project tracking capability.  The
plan shall also provide for development by the department of
protocols regarding input and maintenance of the management
information system.
   (f) (1) Not later than March 31, 2000, the department shall submit
to the Governor and the Legislature a progress report regarding
current efforts by the department to improve its management
information system capability and regarding development of the plan.
The report shall include, but need not be limited to, an estimated
completion date for the comprehensive data management system and a
timetable for the interim steps that the department will take to
provide the information necessary to satisfy the project monitoring
requirements under Chapter 622 of the Statutes of 1997 and under the
federal Transportation Equity Act for the 21st Century (Public Law
105-178) until the comprehensive data management system is
operational.
   (2) Not later than October 1, 2000, a draft of the plan shall be
circulated to interested parties for review and comment.
   (3) Not later than February 1, 2001, the committee shall submit
the final plan to the Legislature.
  SEC. 4.  Section 14529.01 is added to the Government Code, to read:

   14529.01.  (a) It is the intent of the Legislature to facilitate
project development work on needed transportation projects to produce
a steady flow of construction projects by adding an advance project
development element to the state transportation improvement program,
beginning with the 2000 State Transportation Improvement Program.
   (b) The advance project development element shall include only
project development activities for projects that are eligible for
inclusion in a state transportation improvement program.
   (c) The fund estimate for each state transportation improvement
program shall designate an amount to be available for the advance
project development element, which shall be not more than 25 percent
of the programmable resources estimated to be available for the first
and second years following the period of the state transportation
improvement program, subject to the formulas in Sections 164, 188 and
188.8 of the Streets and Highways Code.
   (d) The department, transportation planning agencies, and county
transportation commissions may nominate projects to the commission
for inclusion in the advance project development element through
submission of the regional transportation improvement program and the
interregional transportation improvement program.
   (e) The funds programmed in the advance project development
element may be allocated within the period of the state
transportation improvement program without regard to fiscal year.
   (f) Not later than September 1, 2002, the commission shall report
to the Governor and the Legislature on the impact of adding the
advance project development element described in subdivision (a) with
the funding level described in subdivision (c).  The report shall
evaluate whether the element has proven effective in producing a
steady, deliverable stream of projects and whether addition of the
element has resulted in any detrimental effects on the state's
transportation system.
   (g) The commission may develop guidelines to implement this
section.
  SEC. 5.  Section 14529.3 is added to the Government Code, to read:

   14529.3.  (a) Funds received by the department as reimbursement
for any work authorized by the Legislature through the annual budget
process to be performed by the department under contract or other
agreement for any local agency or entity or for any other state
agency or state entity shall be deposited in the Transportation
Reimbursable Work Account which is hereby created in the State
Transportation Fund.
   (b) Notwithstanding Section 13340 of the Government Code and
without regard to fiscal years, the money in the account is hereby
continuously appropriated to the department for the purpose of
funding the performance of reimbursable work by the department.
   (c) The department may not make expenditures from the account
unless the department has determined that it has sufficient resources
to complete both the reimbursable project and all projects under the
state transportation improvement program in a timely manner.
  SEC. 6.  Section 14529.6 is added to the Government Code, to read:

   14529.6.  (a) (1) Notwithstanding any other provision of law, the
commission may advance unallocated funds in the State Highway
Account, in the form of loans, to transportation planning agencies,
county transportation commissions, transit districts, city and county
governments, and local transportation authorities for the
advancement of projects eligible under the state transportation
improvement program that are included within an adopted regional
transportation plan.
   (2) No application for a loan may be approved under this section
for an agency that is not the approving authority for the county's
submission to the state transportation improvement program unless the
agency applies jointly with the approving authority.
   (b) When considering loan applications, the commission shall
ensure that all of the following conditions are met:
   (1) Projects shall comply with the environmental impact report
certification requirements of the California Environmental Quality
Act (Division 13 (commencing with Section 21000) of the Public
Resources Code) and associated rules and regulations, and have
prepared an environmental impact report under that act.
   (2) Total project costs shall be greater than ten million dollars
($10,000,000).  In counties with populations of less than 500,000
persons, the commission may waive this requirement if 50 percent of a
county's share for the current county share period made under
Section 188.8 of the Streets and Highways Code is equal to or greater
than the amount of project costs to be loaned.
   (3) A fiscal assessment of the applicant's ability to repay a loan
shall be made by an independent fiscal consultant selected by the
applicant from a pre-qualified list of fiscal consultants approved
jointly by the department and the commission.  The department shall
make a recommendation to the commission based on the analysis
conducted by the independent fiscal consultant regarding each
specific loan.  Costs incurred for this assessment shall be paid by
the applicant.
   (4) The maximum amount of funds that may be loaned to any single
county in any single loan for one or more projects shall be not more
than 50 percent of the most recent regional-choice funding allocation
made pursuant to Section 188.8 of the Streets and Highways Code, in
an amount of not more than one hundred million dollars
($100,000,000).
   (5) Loan repayments shall be made in cash from nonstate sources.
   (6) Loans shall be repaid within four years from the date the loan
is made.
   (7) If a default occurs, 100 percent repayment of the principal
and interest, plus a penalty charge of 5 percent of the outstanding
principal, shall be required in the form of a reduction in the county'
s next allocation of county share funding made under Section 188.8 of
the Streets and Highways Code.  If that reduction is not sufficient
to pay the principal, interest, and penalty due, further reduction
shall be made from subsequent allocations until the outstanding
amount is paid in full.  Additionally, the defaulting county shall be
ineligible for regional choice fund programming made under Section
188.8 of the Streets and Highways Code until the outstanding amount
is paid in full.
   (8) Interest rates on loans shall be set at the  rate paid on
money in the Pooled Money Investment Account during the period of
time that the money is loaned.
   (9) The commission shall approve or disapprove all loan
applications not more than 30 days after the application is
submitted.
   (10) When approved by the commission, the money for the loan shall
be transmitted by the department directly to the applicant not later
than 30 days after approval.
   (11) The total amount of outstanding loans approved under this
program may not exceed five hundred million dollars ($500,000,000) at
any one time.
   (12) All payments on the principal of any loan plus interest or
penalties paid shall be deposited in the State Highway Account.
   (13) The department shall require in writing that projects funded
under this section be under construction not later than six months
after the date the loan funds are transmitted.  If the project is not
under construction on or before the date set by the department under
this paragraph, the department shall require that the loan be paid
back, with interest, not later than 10 days after the department
notifies the recipient that repayment is due.
   (c) The loan program created under this section shall
automatically commence on a first-come, first-served basis whenever
the State Highway Account cash balance exceeds four hundred million
dollars ($400,000,000) and shall be suspended whenever the commission
determines that moneys in the State Highway Account will reach a
cash balance of less than four hundred million dollars
($400,000,000), based on historical experience, the need for state
matching funds, and anticipated contractual needs, except that the
commission may terminate the program at any time it deems termination
to be the most prudent course of action.  For purposes of informing
potential loan applicants of the availability of funds to be loaned,
the commission shall adopt, on January 15 and July 15 of each year,
projections regarding the availability of funds to be loaned and the
period of time during which funds will be available.  The department
shall report to the commission prior to each projection regarding the
cash-flow needs of the state transportation improvement program for
the following six months.
   (d) Prior to loan approval, local agencies shall certify that
other resources are not available to fund the project for which the
loan is requested and that the agency does not intend to create an
indirect arbitrage situation.
   (e) Not later than 120 days from the effective date of the act
that added this section during the 1999-2000 Regular Session, the
commission, in consultation with the department and interested
parties, shall propose guidelines and procedures to implement and
expedite the loan program established under this section.
   (f) Not later than 180 days from the effective date of the act
that added this section during the 1999-2000 Regular Session, the
commission, after a public hearing, shall adopt a uniform loan
agreement package, including guidelines and implementation
procedures, and shall begin operation of the loan program.  The
uniform loan agreement package shall describe loan repayment options,
and all other terms and conditions necessary to protect the public
interest as well as expedite the availability of funds for needed
transportation improvements in the state.  The commission shall make
available to all interested parties the loan agreement associated
with every specific loan made under this section for a period of 30
days prior to approval of those loans by the commission.
   (g) The commission shall recommend to the Governor and the
Legislature any suggested changes in the dollar limits required under
subdivision (c) and any proposed solutions to any other issues
relating to the program's impact on expediting delivery of
transportation projects.
  SEC. 7.  Section 14529.11 is added to the Government Code, to read:

   14529.11.  (a) In order to assist in the delivery of high-priority
transportation projects, as determined by the commission, or advance
project development work, the commission shall adopt, not later than
January 30, 2000, guidelines for an expedited process through which
projects may comply with the requirement that a project study report
be prepared in order for a project to be considered for inclusion in
the state transportation improvement program.  The expedited
compliance process may be initiated whenever the commission finds it
to be in the public interest.
   (b) The guidelines required under subdivision (a) shall be
developed in consultation with the department, the county agencies
responsible for submission of projects for inclusion in the state
transportation improvement program, and regional transportation
planning agencies.
   (c) The guidelines developed by the commission shall require that
any request for use of the expedited compliance process be approved
by the county agency responsible for submission of projects for
inclusion in the state transportation improvement program and that
each county approval be reviewed and approved by the department
before being considered by the commission.
  SEC. 8.  Section 182.6 of the Streets and Highways Code is amended
to read:
   182.6.  (a) Notwithstanding Sections 182 and 182.5, Sections 188,
188.8, and 825 do not apply to the expenditure of an amount of
federal funds equal to the amount of federal funds apportioned to the
state pursuant to that portion of subsection (b)(3) of Section 104,
subsections (a) and (c) of Section 157, and subsection (d) of Section
160 of Title 23 of the United States Code which is allocated within
the state subject to subsection (d)(3) of Section 133 of that code.
These funds shall be known as the regional surface transportation
program funds.  The department, the transportation planning agencies,
the county transportation commissions, and the metropolitan planning
organizations may do all things necessary in their jurisdictions to
secure and expend those federal funds in accordance with the intent
of federal law and this chapter.
   (b) The regional surface transportation program funds shall be
apportioned by the department to the metropolitan planning
organizations designated pursuant to Section 134 of Title 23 of the
United States Code and, in areas where none has been designated, to
the transportation planning agency designated pursuant to Section
29532 of the Government Code.  The funds shall be apportioned in the
manner and in accordance with the formula set forth in subsection (d)
(3) of Section 133 of Title 23 of the United States Code, except that
the apportionment shall be among all areas of the state.  Funds
apportioned under this subdivision shall remain available for three
federal fiscal years, including the federal fiscal year apportioned.

   (c) Where county transportation commissions have been created by
Division 12 (commencing with Section 130000) of the Public Utilities
Code, all regional surface transportation program funds shall be
further apportioned by the metropolitan planning organization to the
county transportation commission on the basis of relative population.

   In the Monterey Bay region, all regional surface transportation
program funds shall be further apportioned, on the basis of relative
population, by the metropolitan planning organization to the regional
transportation planning agencies designated under subdivision (b) of
Section 29532 of the Government Code.
   (d) The applicable metropolitan planning organization, county
transportation commission, or transportation planning agency shall
annually apportion the regional surface transportation program funds
for projects in each county, as follows:
   (1) An amount equal to the amount apportioned under the
federal-aid urban program in federal fiscal year 1990-91 adjusted for
population.  The adjustment for population shall be based on the
population determined in
the 1990 federal census except that no county shall be apportioned
less than 110 percent of the apportionment received in the 1990-91
fiscal year.  These funds shall be apportioned for projects
implemented by cities, counties, and other transportation agencies on
a fair and equitable basis based upon an annually updated five-year
average of allocations.  Projects shall be nominated by cities,
counties, transit operators, and other public transportation agencies
through a process that directly involves local government
representatives.
   (2) An amount not less than 110 percent of the amount that the
county was apportioned under the federal-aid secondary program in
federal fiscal year 1990-91, for use by that county.
   (e) The department shall notify each metropolitan planning
organization, county transportation commission, and transportation
planning agency receiving an apportionment under this section, as
soon as possible each year, of the amount of obligation authority
estimated to be available for program purposes.  The metropolitan
planning organization and transportation planning agency, in
cooperation with the department, congestion management agencies,
cities, counties, and affected transit operators, shall select and
program projects in conformance with federal law.  The metropolitan
planning organization and transportation planning agency shall submit
its transportation improvement program prepared pursuant to Section
134 of Title 23 of the United States Code to the department for
incorporation into the state transportation improvement program not
later than August 1 of each even-numbered year beginning in 1994.
   (f) Not later than July 1 of each year, the metropolitan planning
organizations, and the regional transportation planning agencies,
receiving obligational authority under this article shall notify the
department of the projected amount of obligational authority that
each entity intends to use during the remainder of the current
federal fiscal year, including, but not limited to, a list of
projects that will be obligated by the end of the current federal
fiscal year.  Any federal obligational authority that will not be
used shall be redistributed by the department to other projects in a
manner that ensures that the state will continue to compete for and
receive increased obligational authority during the federal
redistribution of obligational authority.  If the department does not
have sufficient federal apportionments to fully use excess
obligational authority, the metropolitan planning organizations or
regional transportation planning agencies relinquishing obligational
authority shall make sufficient apportionments available to the
department to fund alternate projects, when practical, within the
geographical areas relinquishing the obligational authority.
Notwithstanding this subdivision, the department shall comply with
subsections (d)(3) and (f) of Section 133 of Title 23 of the United
States Code.
   (g) A regional transportation planning agency that is not
designated as, nor represented by, a metropolitan planning
organization with an urbanized area population greater than 200,000
pursuant to the 1990 federal census may exchange its annual
apportionment received pursuant to this section on a
dollar-for-dollar basis for nonfederal State Highway Account funds,
which shall be apportioned in accordance with subdivision (d).
   (h) (1) If a regional transportation planning agency described in
subdivision (g) does not elect to exchange its annual apportionment,
a county located within the boundaries of that regional
transportation planning agency may elect to exchange its annual
apportionment received pursuant to paragraph (2) of subdivision (d)
for nonfederal State Highway Account funds.
   (2) A county not included in a regional transportation planning
agency described in subdivision (g), whose apportionment pursuant to
paragraph (2) of subdivision (d) was less than 1 percent of the total
amount apportioned to all counties in the state may exchange its
apportionment for nonfederal State Highway Account funds.  If the
apportionment to the county was more than 31/2 percent of the total
apportioned to all counties in the state, it may exchange that
portion of its apportionment in excess of 31/2 percent for nonfederal
State Highway Account funds.  Exchange funds received by a county
pursuant to this section may be used for any transportation purpose.

   (i) The department shall be responsible for closely monitoring the
use of federal transportation funds, including regional surface
transportation program funds to assure full and timely use.  The
department shall prepare a quarterly report for submission to the
commission regarding the progress in use of all federal
transportation funds.  The department shall notify the commission and
the appropriate implementation agency whenever there is a failure to
use federal funds within the three-year apportionment period
established under subdivision (b).
   (j) The department shall provide written notice to implementing
agencies when there is one year remaining within the three-year
apportionment period established under subdivision (b) of this
section.
   (k) Within six months of the date of notification required under
subdivision (j), the implementing agency shall provide to the
department a plan to obligate funds that includes, but need not be
limited to, a list of projects and milestones.
   (l) If the implementing agency has not met the milestones
established in the implementation plan required under subdivision
(k), prior to the end of the three-year apportionment period
established under subdivision (b), the commission shall redirect
those funds for use on other transportation projects in the state.
  SEC. 9.  Section 182.7 of the Streets and Highways Code is amended
to read:
   182.7.  (a) Notwithstanding Sections 182 and 182.5, Sections 188,
188.8, and 825 do not apply to the expenditure of an amount of
federal funds equal to the amount of federal funds apportioned to the
state pursuant to subsection (b)(2) of Section 104 of Title 23 of
the United States Code.  These funds shall be known as the congestion
mitigation and air quality program funds and shall be expended in
accordance with Section 19 of Title 3 of the United States Code.  The
department, the transportation planning agencies, and the
metropolitan planning organizations may do all things necessary in
their jurisdictions to secure and expend those federal funds in
accordance with the intent of federal law and this chapter.
   (b) The congestion mitigation and air quality program funds,
including any funds to which subsection (c) of Section 110 of Title
23 of the United States Code, as added by subdivision (a) of Section
1310 of Public Law 105-178, applies, shall be apportioned by the
department to the metropolitan planning organizations designated
pursuant to Section 134 of Title 23 of the United States Code and, in
areas where none has been designated, to the transportation planning
agency established by Section 29532 of the Government Code.  The
funds shall be apportioned to metropolitan planning organizations and
transportation planning agencies responsible for air quality
conformity determinations in federally designated air quality
nonattainment and maintenance areas within the state in the manner
and in accordance with the formula set forth in subsection (b)(2) of
Section 104 of Title 23 of the United States Code.  Funds apportioned
under this subdivision shall remain available for three federal
fiscal years, including the federal fiscal year apportioned.
   (c) Notwithstanding subdivision (b), where county transportation
commissions have been created by Division 12 (commencing with Section
130000) of the Public Utilities Code, all congestion mitigation and
air quality program funds shall be further apportioned by the
metropolitan planning organization to the county transportation
commission on the basis of relative population within the federally
designated air quality nonattainment and maintenance areas after
first apportioning to the nonattainment and maintenance areas in the
manner and in accordance with the formula set forth in subsection (b)
(2) of Section 104 of Title 23 of the United States Code.
   In the Monterey Bay region, all congestion mitigation and air
quality improvement program funds shall be further apportioned, on
the basis of relative population, by the metropolitan planning
organization to the regional transportation planning agencies
designated under subdivision (b) of Section 29532 of the Government
Code.
   (d) The department shall notify each metropolitan planning
organization, transportation planning agency, and county
transportation commission receiving an apportionment under this
section, as soon as possible each year, of the amount of obligational
authority estimated to be available for expenditure from the federal
apportionment.  The metropolitan planning organizations,
transportation planning agencies, and county transportation
commissions, in cooperation with the department, congestion
management agencies, cities and counties, and affected transit
operators, shall select and program projects in conformance with
federal law.  Each metropolitan planning organization and
transportation planning agency shall, not later than August 1 of each
even-numbered year beginning in 1994, submit its transportation
improvement program prepared pursuant to Section 134 of Title 23 of
the United States Code to the department for incorporation into the
state transportation improvement program.
   (e) Not later than July 1 of each year, the metropolitan planning
organizations and the regional transportation planning agencies
receiving obligational authority under this section, shall notify the
department of the projected amount of obligational authority that
each entity intends to use during the remainder of the current
federal fiscal year, including, but not limited to, a list of
projects that will use the obligational authority.  Any federal
obligational authority that will not be used shall be redistributed
by the department to other projects in a manner that ensures that the
state will continue to compete for and receive increased
obligational authority during the federal redistribution of
obligational authority.  If the department does not have sufficient
federal apportionments to fully use excess obligational authority,
the metropolitan planning organization or transportation planning
agency relinquishing obligational authority shall make sufficient
apportionments available to the department to fund alternate
projects, when practical, within the geographical areas relinquishing
the obligational authority.  Notwithstanding this subdivision, the
department shall comply with subsection (f) of Section 133 of Title
23 of the United States Code.
   (f) The department shall be responsible for closely monitoring the
use of federal transportation funds, including congestion management
and air quality funds to assure full and timely use.  The department
shall prepare a quarterly report for submission to the commission
regarding the progress in use of all federal transportation funds.
The department shall notify the commission and the appropriate
implementation agency whenever there is a failure to use federal
funds within the three-year apportionment period established under
subdivision (b).
   (g) The department shall provide written notice to implementing
agencies when there is one year remaining within the three-year
apportionment period established under subdivision (b) of this
section.
   (h) Within six months of the date of notification required under
subdivision (g), the implementing agency shall provide to the
department a plan to obligate funds that includes, but need not be
limited to, a list of projects and milestones.
   (i) If the implementing agency has not met the milestones
established in the implementation plan required under subdivision (h)
above, prior to the end of the three-year apportionment period
established under subdivision (b), the commission shall redirect
those funds for use on other transportation projects in the state.
  SEC. 10.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  The facts constituting the necessity are:
   In order to expedite, as soon as possible, the use of the
excessively large cash balance in the State Highway Account in the
State Transportation Fund and to direct the California Transportation
Commission and Department of Transportation to accomplish the tasks
necessary to put these taxpayer funds to work at the earliest
possible date on needed transportation improvements, it is necessary
that this act take effect immediately.