BILL NUMBER: AB 227 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 15, 2015
INTRODUCED BY Assembly Member Alejo
Members Alejo and Perea
( Coauthor: Assembly Member
Linder )
FEBRUARY 3, 2015
An act to amend Sections 16773, 16965.1, and 63048.67 of, to add
Section 16321 to, and to repeal Section 16965 of, the Government
Code, to amend Sections 143, 183.1, 183.1
and 2103 of the Streets and Highways Code, and to amend
Sections 9400.1 and 42205 of, and to repeal Section 9400.4 of, the
Vehicle Code, relating to transportation, and making an appropriation
therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 227, as amended, Alejo. Transportation funding.
(1) Existing law provides for loans of revenues from various
transportation funds and accounts to the General Fund, with various
repayment dates specified.
This bill, with respect to any loans made to the General Fund from
specified transportation funds and accounts with a repayment date of
January 1, 2019, or later, would require the loans to be repaid by
December 31, 2018.
(2) Existing law imposes weight fees on the registration of
commercial motor vehicles and provides for the deposit of net weight
fee revenues into the State Highway Account. Existing law provides
for the transfer of certain weight fee revenues from the State
Highway Account to the Transportation Debt Service Fund to reimburse
the General Fund for payment of debt service on general obligation
bonds issued for transportation purposes. Existing law also provides
for the transfer of certain weight fee revenues to the transportation
Bond Direct Payment Account for direct payment of debt service on
designated bonds, which are defined to be certain transportation
general obligation bonds issued pursuant to Proposition 1B of 2006.
Existing law also provides for loans of weight fee revenues to the
General Fund to the extent the revenues are not needed for bond debt
service purposes, with the loans to be repaid when the revenues are
later needed for those purposes, as specified.
This bill would repeal these provisions, thereby retaining the
weight fee revenues in the State Highway Account. The bill would make
other conforming changes in that regard.
(3) Existing law provides for the deposit of fuel excise tax
revenues imposed by the state on fuels used in motor vehicles upon
public streets and highways in the Highway Users Tax Account, and
appropriates those revenues to various purposes. Existing law, with
respect to the portion of these revenues that is derived from
increases in the motor vehicle fuel excise tax in 2010, requires an
allocation of revenues to reimburse the State Highway Account for the
amount of weight fee revenues that the State Highway Account is not
receiving due to use of weight fee revenues to pay debt service on
transportation general obligation bonds and to make certain loans to
the General Fund, with the remaining amount of this portion of
revenues allocated 44% to the State Transportation Improvement
Program, 12% to the State Highway Operation and Protection Program,
and 44% to city and county streets and roads.
This bill would delete the provisions relating to the
reimbursement of the State Highway Account for weight fee revenues
and relating to the making of loans to the General Fund, thereby
providing for the portion of fuel excise tax revenues that is derived
from increases in the motor vehicle fuel excise tax in 2010 to be
allocated 44% to the State Transportation Improvement Program, 12% to
the State Highway Operation and Protection Program, and 44% to city
and county streets and roads. The bill would thereby make an
appropriation.
(4) Existing law requires certain revenues deposited in the State
Highway Account that are not restricted as to expenditure by Article
XIX of the California Constitution to be transferred to the
Transportation Debt Service Fund in the State Transportation Fund, as
specified, and continuously appropriates these funds for payment of
current year debt service on certain mass transportation bonds.
This bill would delete the requirement to transfer these revenues
to the Transportation Debt Service Fund, thereby providing for these
revenues to be used for any transportation purpose authorized by
statute, upon appropriation by the Legislature.
(5) Existing law authorizes the Department of Transportation and
regional transportation agencies, as defined, to enter into
comprehensive development lease agreements with public and private
entities, or consortia of those entities, for certain transportation
projects that may charge certain users of those projects tolls and
user fees, subject to various terms and requirements. These
arrangements are commonly known as public-private partnerships.
Existing law provides that a lease agreement may not be entered into
under these provisions on or after January 1, 2017.
This bill would delete that date, thereby providing for no lease
agreements to be entered into under these provisions after an
unspecified date.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 16321 is added to the Government Code, to read:
16321. Notwithstanding any other provision of law, loans of
revenues to the General Fund from the State Highway Account, the
Public Transportation Account, the Bicycle Transportation Account,
the Motor Vehicle Fuel Account, the Highway Users Tax Account, the
Pedestrian Safety Account, the Transportation Investment Fund, the
Traffic Congestion Relief Fund, the Motor Vehicle Account, and the
Local Airport Loan Account shall be repaid, on or before December 31,
2018, to the account or fund from which the loan was made. This
section shall apply to all loans that otherwise have a repayment date
of January 1, 2019, or later.
SEC. 2. Section 16773 of the Government Code is amended to read:
16773. (a) Whenever any payment of principal of any bonds shall
become due, either upon the maturity of any of the bonds or upon the
redemption thereof prior to maturity, and whenever any interest on
any of the bonds shall fall due, warrants shall be drawn against the
appropriation made by the bond act from the General Fund by the
Controller in favor of the Treasurer, or state fiscal agents, or
other duly authorized agents, pursuant to claims filed with the
Controller by the Treasurer, in the amounts so falling due.
(b) For any payments of debt service, as defined in subdivision
(c) of Section 998.404 of the Military and Veterans Code, with
respect to any bonds issued pursuant to a veterans' farm and home
purchase bond act adopted pursuant to Chapter 6 (commencing with
Section 980) of Division 4 of the Military and Veterans Code, the
Controller shall first draw warrants against the appropriation from
the Veterans' Bonds Payment Fund in Section 988.6 of the Military and
Veterans Code, and, to the extent moneys in that fund are
insufficient to pay the amount of debt service then due, shall draw
warrants against the appropriation made by the bond act from the
General Fund for payment of any remaining amount then due.
SEC. 3. Section 16965 of the Government Code is repealed.
SEC. 4. Section 16965.1 of the Government Code is amended to read:
16965.1. (a) (1) The loan repayment dates relative to State
Highway Account loans to the General Fund that are specified in the
provisional language of the following Budget Act items are hereby
eliminated, and the Director of Finance may repay any remaining
portion of the outstanding balance of these loans in any year in
which the director determines the funds are needed to reimburse the
General Fund for debt service or to redeem or defease bonds maturing
in a subsequent fiscal year, provided that the loans shall be repaid
no later than December 31, 2018:
(A) Item 2660-011-0042 of Section 2.00 of the Budget Act of 2010
(SB 870, Chapter 712 of the Statutes of 2010).
(B) Item 2660-013-0042 of Section 2.00 of the Budget Act of 2010,
as added by Section 6 of SB 84 (Chapter 13 of the Statutes of 2011).
(C) Item 2660-013-0042 of Section 2.00 of the Budget Act of 2011,
as contained in SB 69 of the 2011-12 Regular Session, if that
provision is enacted.
(2) All funds loaned pursuant to the provisions referenced in
subparagraphs (A), (B), and (C) of paragraph (1) are hereby
determined to have been from weight fee revenues in the State Highway
Account fund balance.
(b) The loan repayment date relative to the Public Transportation
Account that is specified in the provisional language in Item
2660-011-0046 of Section 2.00 of the Budget Act of 2010 (SB 870,
Chapter 712 of the Statutes of 2010), is hereby eliminated, and the
loan pursuant to this item shall instead be repaid by December 31,
2018.
SEC. 5. Section 63048.67 of the Government Code is amended to
read:
63048.67. The loans made from the State Highway Account through
the Traffic Congestion Relief Fund to the General Fund that are
referenced in clause (i) of subparagraph (A) of paragraph (1) of
subdivision (c) of Section 63048.65 are hereby determined to have
been from weight fee revenues in the State Highway Account fund
balance.
SEC. 6. Section 143 of the Streets and Highways
Code is amended to read:
143. (a) (1) "Best value" means a value determined by objective
criteria, including, but not limited to, price, features, functions,
life-cycle costs, and other criteria deemed appropriate by the
department or the regional transportation agency.
(2) "Contracting entity or lessee" means a public or private
entity, or consortia thereof, that has entered into a comprehensive
development lease agreement with the department or a regional
transportation agency for a transportation project pursuant to this
section.
(3) "Design-build" means a procurement process in which both the
design and construction of a project are procured from a single
entity.
(4) "Regional transportation agency" means any of the following:
(A) A transportation planning agency as defined in Section 29532
or 29532.1 of the Government Code.
(B) A county transportation commission as defined in Section
130050, 130050.1, or 130050.2 of the Public Utilities Code.
(C) Any other local or regional transportation entity that is
designated by statute as a regional transportation agency.
(D) A joint exercise of powers authority as defined in Chapter 5
(commencing with Section 6500) of Division 7 of Title 1 of the
Government Code, with the consent of a transportation planning agency
or a county transportation commission for the jurisdiction in which
the transportation project will be developed.
(5) "Public Infrastructure Advisory Commission" means a unit or
auxiliary organization established by the Transportation Agency that
advises the department and regional transportation agencies in
developing transportation projects through performance-based
infrastructure partnerships.
(6) "Transportation project" means one or more of the following:
planning, design, development, finance, construction, reconstruction,
rehabilitation, improvement, acquisition, lease, operation, or
maintenance of highway, public street, rail, or related facilities
supplemental to existing facilities currently owned and operated by
the department or regional transportation agencies that is consistent
with the requirements of subdivision (c).
(b) (1) The Public Infrastructure Advisory Commission shall do all
of the following:
(A) Identify transportation project opportunities throughout the
state.
(B) Research and document similar transportation projects
throughout the state, nationally, and internationally, and further
identify and evaluate lessons learned from these projects.
(C) Assemble and make available to the department or regional
transportation agencies a library of information, precedent,
research, and analysis concerning infrastructure partnerships and
related types of public-private transactions for public
infrastructure.
(D) Advise the department and regional transportation agencies,
upon request, regarding infrastructure partnership suitability and
best practices.
(E) Provide, upon request, procurement-related services to the
department and regional transportation agencies for infrastructure
partnership.
(2) The Public Infrastructure Advisory Commission may charge a fee
to the department and regional transportation agencies for the
services described in subparagraphs (D) and (E) of paragraph (1), the
details of which shall be articulated in an agreement entered into
between the Public Infrastructure Advisory Commission and the
department or the regional transportation agency.
(c) (1) Notwithstanding any other provision of law, only the
department, in cooperation with regional transportation agencies, and
regional transportation agencies, may solicit proposals, accept
unsolicited proposals, negotiate, and enter into comprehensive
development lease agreements with public or private entities, or
consortia thereof, for transportation projects.
(2) Projects proposed pursuant to this section and associated
lease agreements shall be submitted to the California Transportation
Commission. The commission, at a regularly scheduled public hearing,
shall select the candidate projects from projects nominated by the
department or a regional transportation agency after reviewing the
nominations for consistency with paragraphs (3) and (4). Approved
projects may proceed with the process described in paragraph (5).
(3) The projects authorized pursuant to this section shall be
primarily designed to achieve the following performance objectives:
(A) Improve mobility by improving travel times or reducing the
number of vehicle hours of delay in the affected corridor.
(B) Improve the operation or safety of the affected corridor.
(C) Provide quantifiable air quality benefits for the region in
which the project is located.
(4) In addition to meeting the requirements of paragraph (3), the
projects authorized pursuant to this section shall address a known
forecast demand, as determined by the department or regional
transportation agency.
(5) At least 60 days prior to executing a final lease agreement
authorized pursuant to this section, the department or regional
transportation agency shall submit the agreement to the Legislature
and the Public Infrastructure Advisory Commission for review. Prior
to submitting a lease agreement to the Legislature and the Public
Infrastructure Advisory Commission, the department or regional
transportation agency shall conduct at least one public hearing at a
location at or near the proposed facility for purposes of receiving
public comment on the lease agreement. Public comments made during
this hearing shall be submitted to the Legislature and the Public
Infrastructure Advisory Commission with the lease agreement. The
Secretary of Transportation or the chairperson of the Senate or
Assembly fiscal committees or policy committees with jurisdiction
over transportation matters may, by written notification to the
department or regional transportation agency, provide any comments
about the proposed agreement within the 60-day period prior to the
execution of the final agreement. The department or regional
transportation agency shall consider those comments prior to
executing a final agreement and shall retain the discretion for
executing the final lease agreement.
(d) For the purpose of facilitating those projects, the agreements
between the parties may include provisions for the lease of
rights-of-way in, and airspace over or under, highways, public
streets, rail, or related facilities for the granting of necessary
easements, and for the issuance of permits or other authorizations to
enable the construction of transportation projects. Facilities
subject to an agreement under this section shall, at all times, be
owned by the department or the regional transportation agency, as
appropriate. For department projects, the commission shall certify
the department's determination of the useful life of the project in
establishing the lease agreement terms. In consideration therefor,
the agreement shall provide for complete reversion of the leased
facility, together with the right to collect tolls and user fees, to
the department or regional transportation agency, at the expiration
of the lease at no charge to the department or regional
transportation agency. At the time of the reversion, the facility
shall be delivered to the department or regional transportation
agency, as applicable, in a condition that meets the performance and
maintenance standards established by the department or regional
transportation agency and that is free of any encumbrance, lien, or
other claims.
(e) Agreements between the department or regional transportation
agency and the contracting entity or lessee shall authorize the
contracting entity or lessee to use a design-build method of
procurement for transportation projects, subject to the requirements
for utilizing such a method contained in Chapter 6.5 (commencing with
Section 6820) of Part 1 of Division 2 of the Public Contract Code,
other than Sections 6821 and 6822 of that code.
(f) (1) (A) Notwithstanding any other provision of this chapter,
for projects on the state highway system, the department is the
responsible agency for the performance of project development
services, including performance specifications, preliminary
engineering, prebid services, the preparation of project reports and
environmental documents, and construction inspection services. The
department is also the responsible agency for the preparation of
documents that may include, but need not be limited to, the size,
type, and desired design character of the project, performance
specifications covering the quality of materials, equipment, and
workmanship, preliminary plans, and any other information deemed
necessary to describe adequately the needs of the department or
regional transportation agency.
(B) The department may use department employees or consultants to
perform the services described in subparagraph (A), consistent with
Article XXII of the California Constitution. Department resources,
including personnel requirements, necessary for the performance of
those services shall be included in the department's capital outlay
support program for workload purposes in the annual Budget Act.
(2) The department or a regional transportation agency may
exercise any power possessed by it with respect to transportation
projects to facilitate the transportation projects pursuant to this
section. The department, regional transportation agency, and other
state or local agencies may provide services to the contracting
entity or lessee for which the public entity is reimbursed,
including, but not limited to, planning, environmental planning,
environmental certification, environmental review, preliminary
design, design, right-of-way acquisition, construction, maintenance,
and policing of these transportation projects. The department or
regional transportation agency, as applicable, shall regularly
inspect the facility and require the contracting entity or lessee to
maintain and operate the facility according to adopted standards.
Except as may otherwise be set forth in the lease agreement, the
contracting entity or lessee shall be responsible for all costs due
to development, maintenance, repair, rehabilitation, and
reconstruction, and operating costs.
(g) (1) In selecting private entities with which to enter into
these agreements, notwithstanding any other provision of law, the
department and regional transportation agencies may utilize, but are
not limited to utilizing, one or more of the following procurement
approaches:
(A) Solicitations of proposals for defined projects and calls for
project proposals within defined parameters.
(B) Prequalification and short-listing of proposers prior to final
evaluation of proposals.
(C) Final evaluation of proposals based on qualifications and best
value. The California Transportation Commission shall develop and
adopt criteria for making that evaluation prior to evaluation of a
proposal.
(D) Negotiations with proposers prior to award.
(E) Acceptance of unsolicited proposals, with issuance of requests
for competing proposals. Neither the department nor a regional
transportation agency may award a contract to an unsolicited bidder
without receiving at least one other responsible bid.
(2) When evaluating a proposal submitted by the contracting entity
or lessee, the department or the regional transportation agency may
award a contract on the basis of the lowest bid or best value.
(h) The contracting entity or lessee shall have the following
qualifications:
(1) Evidence that the members of the contracting entity or lessee
have completed, or have demonstrated the experience, competency,
capability, and capacity to complete, a project of similar size,
scope, or complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the
design and construction of the project, and a financial statement
that ensures that the contracting entity or lessee has the capacity
to complete the project.
(2) The licenses, registration, and credentials required to design
and construct the project, including, but not limited to,
information on the revocation or suspension of any license,
credential, or registration.
(3) Evidence that establishes that members of the contracting
entity or lessee have the capacity to obtain all required payment and
performance bonding, liability insurance, and errors and omissions
insurance.
(4) Evidence that the contracting entity or lessee has workers'
compensation experience, history, and a worker safety program of
members of the contracting entity or lessee that is acceptable to the
department or regional transportation agency.
(5) A full disclosure regarding all of the following with respect
to each member of the contracting entity or lessee during the past
five years:
(A) Any serious or willful violation of Part 1 (commencing with
Section 6300) of Division 5 of the Labor Code or the federal
Occupational Safety and Health Act of 1970 (Public Law 91-596).
(B) Any instance where members of the contracting entity or lessee
were debarred, disqualified, or removed from a federal, state, or
local government public works project.
(C) Any instance where members of the contracting entity or
lessee, or its owners, officers, or managing employees submitted a
bid on a public works project and were found to be nonresponsive or
were found by an awarding body not to be a responsible bidder.
(D) Any instance where members of the contracting entity or
lessee, or its owners, officers, or managing employees defaulted on a
construction contract.
(E) Any violations of the Contractors' State License Law (Chapter
9 (commencing with Section 7000) of Division 3 of the Business and
Professions Code), including, but not limited to, alleged violations
of federal or state law regarding the payment of wages, benefits,
apprenticeship requirements, or personal income tax withholding, or
Federal Insurance Contributions Act (FICA) withholding requirements.
(F) Any bankruptcy or receivership of any member of the
contracting entity or lessee, including, but not limited to,
information concerning any work completed by a surety.
(G) Any settled adverse claims, disputes, or lawsuits between the
owner of a public works project and any member of the contracting
entity or lessee during the five years preceding submission of a bid
under this article, in which the claim, settlement, or judgment
exceeds fifty thousand dollars ($50,000). Information shall also be
provided concerning any work completed by a surety during this
five-year period.
(H) If the contracting entity or lessee is a partnership, joint
venture, or an association that is not a legal entity, a copy of the
agreement creating the partnership or association that specifies that
all general partners, joint venturers, or association members agree
to be fully liable for the performance under the agreement.
(i) No agreement entered into pursuant to this section shall
infringe on the authority of the department or a regional
transportation agency to develop, maintain, repair, rehabilitate,
operate, or lease any transportation project. Lease agreements may
provide for reasonable compensation to the contracting entity or
lessee for the adverse effects on toll revenue or user fee revenue
due to the development, operation, or lease of supplemental
transportation projects with the exception of any of the following:
(1) Projects identified in regional transportation plans prepared
pursuant to Section 65080 of the Government Code.
(2) Safety projects.
(3) Improvement projects that will result in incidental capacity
increases.
(4) Additional high-occupancy vehicle lanes or the conversion of
existing lanes to high-occupancy vehicle lanes.
(5) Projects located outside the boundaries of a public-private
partnership project, to be defined by the lease agreement.
However, compensation to a contracting entity or lessee shall only
be made after a demonstrable reduction in use of the facility
resulting in reduced toll or user fee revenues, and may not exceed
the difference between the reduction in those revenues and the amount
necessary to cover the costs of debt service, including principal
and interest on any debt incurred for the development, operation,
maintenance, or rehabilitation of the facility.
(j) (1) Agreements entered into pursuant to this section shall
authorize the contracting entity or lessee to impose tolls and user
fees for use of a facility constructed by it, and shall require that
over the term of the lease the toll revenues and user fees be applied
to payment of the capital outlay costs for the project, the costs
associated with operations, toll and user fee collection,
administration of the facility, reimbursement to the department or
other governmental entity for the costs of services to develop and
maintain the project, police services, and a reasonable return on
investment. The agreement shall require that, notwithstanding
Sections 164, 188, and 188.1, any excess toll or user fee revenue
either be applied to any indebtedness incurred by the contracting
entity or lessee with respect to the project, improvements to the
project, or be paid into the State Highway Account, or for all three
purposes, except that any excess toll revenue under a lease agreement
with a regional transportation agency may be paid to the regional
transportation agency for use in improving public transportation in
and near the project boundaries.
(2) Lease agreements shall establish specific toll or user fee
rates. Any proposed increase in those rates not otherwise established
or identified in the lease agreement during the term of the
agreement shall first be approved by the department or regional
transportation agency, as appropriate, after at least one public
hearing conducted at a location near the proposed or existing
facility.
(3) The collection of tolls and user fees for the use of these
facilities may be extended by the commission or regional
transportation agency at the expiration of the lease agreement.
However, those tolls or user fees shall not be used for any purpose
other than for the improvement, continued operation, or maintenance
of the facility.
(k) Agreements entered into pursuant to this section shall include
indemnity, defense, and hold harmless provisions agreed to by the
department or regional transportation agency and the contracting
entity or lessee, including provisions for indemnifying the State of
California or the regional transportation agency against any claims
or losses resulting or accruing from the performance of the
contracting entity or lessee.
(l) The plans and specifications for each transportation project
on the state highway system developed, maintained, repaired,
rehabilitated, reconstructed, or operated pursuant to this section
shall comply with the department's standards for state transportation
projects. The lease agreement shall include performance standards,
including, but not limited to, levels of service. The agreement shall
require facilities on the state highway system to meet all
requirements for noise mitigation, landscaping, pollution control,
and safety that otherwise would apply if the department were
designing, building, and operating the facility. If a facility is on
the state highway system, the facility leased pursuant to this
section shall, during the term of the lease, be deemed to be a part
of the state highway system for purposes of identification,
maintenance, enforcement of traffic laws, and for the purposes of
Division 3.6 (commencing with Section 810) of Title 1 of the
Government Code.
(m) Failure to comply with the lease agreement in any significant
manner shall constitute a default under the agreement and the
department or the
regional transportation agency, as appropriate, shall have the option
to initiate processes to revert the facility to the public agency.
(n) The assignment authorized by subdivision (c) of Section 130240
of the Public Utilities Code is consistent with this section.
(o) A lease to a private entity pursuant to this section is deemed
to be public property for a public purpose and exempt from
leasehold, real property, and ad valorem taxation, except for the
use, if any, of that property for ancillary commercial purposes.
(p) Nothing in this section is intended to infringe on the
authority to develop high-occupancy toll lanes pursuant to Section
149.4, 149.5, or 149.6.
(q) Nothing in this section shall be construed to allow the
conversion of any existing nontoll or nonuser-fee lanes into tolled
or user fee lanes with the exception of a high-occupancy vehicle lane
that may be operated as a high-occupancy toll lane for vehicles not
otherwise meeting the requirements for use of that lane.
(r) The lease agreement shall require the contracting entity or
lessee to provide any information or data requested by the California
Transportation Commission or the Legislative Analyst. The
commission, in cooperation with the Legislative Analyst, shall
annually prepare a report on the progress of each project and
ultimately on the operation of the resulting facility. The report
shall include, but not be limited to, a review of the performance
standards, a financial analysis, and any concerns or recommendations
for changes in the program authorized by this section.
(s) Notwithstanding any other provision of this section, no lease
agreement may be entered into pursuant to the section that affects,
alters, or supersedes the Memorandum of Understanding (MOU), dated
November 26, 2008, entered into by the Golden Gate Bridge Highway and
Transportation District, the Metropolitan Transportation Commission,
and the San Francisco County Transportation Authority, relating to
the financing of the U.S. Highway 101/Doyle Drive reconstruction
project located in the City and County of San Francisco.
(t) No lease agreements may be entered into under this section on
or after January 1, ____.
SEC. 7. SEC. 6. Section 183.1 of the
Streets and Highways Code is amended to read:
183.1. Notwithstanding subdivision (a) of Section 182 or any
other provision of law, money deposited into the account that is not
subject to Article XIX of the California Constitution, including, but
not limited to, money that is derived from the sale of documents,
charges for miscellaneous services to the public, condemnation
deposits fund investments, rental of state property, or any other
miscellaneous uses of property or money, may be used for any
transportation purpose authorized by statute, upon appropriation by
the Legislature or, after transfer to another fund, upon
appropriation by the Legislature from that fund.
SEC. 8. SEC. 7. Section 2103 of the
Streets and Highways Code is amended to read:
2103. (a) Notwithstanding Section 13340 of the Government Code,
of the net revenues deposited to the credit of the Highway Users Tax
Account that are derived from the increases in the rates of taxes
that are imposed pursuant to subdivision (b) of Section 7360 and
Section 7361.1 of the Revenue and Taxation Code, all of the following
shall occur on a monthly basis:
(1) Forty-four percent shall be transferred by the Controller to
the State Highway Account to fund projects in the State
Transportation Improvement Program that are consistent with Section 2
of Article XIX of the California Constitution.
(2) Twelve percent shall be transferred to the State Highway
Account to fund projects in the State Highway Operation and
Protection Program.
(3) Forty-four percent shall be apportioned by the Controller for
local street and road purposes as follows:
(A) Fifty percent shall be apportioned by the Controller to
cities, including a city and county, in the proportion that the total
population of the city bears to the total population of all the
cities in the state.
(B) Fifty percent shall be apportioned by the Controller to
counties, including a city and county, in accordance with the
following formulas:
(i) Seventy-five percent shall be apportioned among the counties
in the proportion that the number of fee-paid and exempt vehicles
that are registered in the county bear to the number of fee-paid and
exempt vehicles registered in the state.
(ii) Twenty-five percent shall be apportioned among the counties
in the proportion that the number of miles of maintained county roads
in each county bear to the total number of miles of maintained
county roads in the state. For the purposes of apportioning funds
under this subparagraph, any roads within the boundaries of a city
and county that are not state highways shall be deemed to be county
roads.
(b) After the transfers or other actions pursuant to subdivision
(a), at least 90 percent of the balance deposited to the credit of
the Highway Users Tax Account in the Transportation Tax Fund by the
28th day of each month shall be apportioned or transferred, as
applicable, by the Controller by the second working day thereafter,
except for June, in which case the apportionment or transfer shall be
made the same day. These apportionments or transfers shall be made
as provided for in Sections 2104 to 2122, inclusive. If information
is not available to make the apportionment or transfer as required,
the apportionment or transfer shall be made on the basis of the
information of the previous month. Amounts not apportioned or
transferred shall be included in the apportionment or transfer of the
subsequent month.
(c) Notwithstanding any other law, the funds apportioned by the
Controller to cities and counties pursuant to paragraph (3) of
subdivision (a) are not subject to Section 7104 or 7104.2 of the
Revenue and Taxation Code. These funds may be expended for any street
and road purpose consistent with the requirements of this chapter.
SEC. 9. SEC. 8. Section 9400.1 of
the Vehicle Code is amended to read:
9400.1. (a) (1) In addition to any other required fee, there
shall be paid the fees set forth in this section for the registration
of commercial motor vehicles operated either singly or in
combination with a declared gross vehicle weight of 10,001 pounds or
more. Pickup truck and electric vehicle weight fees are not
calculated under this section.
(2) The weight of a vehicle issued an identification plate
pursuant to an application under Section 5014, and the weight of an
implement of husbandry as defined in Section 36000, shall not be
considered when calculating, pursuant to this section, the declared
gross vehicle weight of a towing commercial motor vehicle that is
owned and operated exclusively by a farmer or an employee of a farmer
in the conduct of agricultural operations.
(3) Tow trucks that are utilized to render assistance to the
motoring public or to tow or carry impounded vehicles shall pay fees
in accordance with this section, except that the fee calculation
shall be based only on the gross vehicle weight rating of the towing
or carrying vehicle. Upon each initial or transfer application for
registration of a tow truck described in this paragraph, the
registered owner or lessee or that owner's or lessee's designee,
shall certify to the department the gross vehicle weight rating of
the tow truck:
Gross Vehicle Weight Range Fee
10,001-15,000 .......................... $ 257
15,001-20,000 .......................... 353
20,001-26,000 .......................... 435
26,001-30,000 .......................... 552
30,001-35,000 .......................... 648
35,001-40,000 .......................... 761
40,001-45,000 .......................... 837
45,001-50,000 .......................... 948
50,001-54,999 .......................... 1,03
9
55,000-60,000 .......................... 1,17
3
60,001-65,000 .......................... 1,28
2
65,001-70,000 .......................... 1,39
8
70,001-75,000 .......................... 1,65
0
75,001-80,000 .......................... 1,70
0
(b) The fees specified in subdivision (a) apply to both of the
following:
(1) An initial or original registration occurring on or after
December 31, 2001, to December 30, 2003, inclusive, of a commercial
motor vehicle operated either singly or in combination with a
declared gross vehicle weight of 10,001 pounds or more.
(2) The renewal of registration of a commercial motor vehicle
operated either singly or in combination, with a declared gross
vehicle weight of 10,001 pounds or more for which registration
expires on or after December 31, 2001, to December 30, 2003,
inclusive.
(c) (1) For both an initial or original registration occurring on
or after December 31, 2003, of a commercial motor vehicle operated
either singly or in combination with a declared gross vehicle weight
of 10,001 pounds or more, and the renewal of registration of a
commercial motor vehicle operated either singly or in combination,
with a declared gross vehicle weight of 10,001 pounds or more for
which registration expires on or after December 31, 2003, there shall
be paid fees as follows:
Gross Vehicle Weight
Range Weight Code Fee
10,001-15,000 A $ 332
15,001-20,000 B 447
20,001-26,000 C 546
26,001-30,000 D 586
30,001-35,000 E 801
35,001-40,000 F 937
40,001-45,000 G 1,028
45,001-50,000 H 1,161
50,001-54,999 I 1,270
55,000-60,000 J 1,431
60,001-65,000 K 1,562
65,001-70,000 L 1,701
70,001-75,000 M 2,004
75,001-80,000 N 2,064
(2) For the purpose of obtaining "revenue neutrality" as described
in Sections 1 and 59 of Senate Bill 2084 of the 1999-2000 Regular
Session (Chapter 861 of the Statutes of 2000), the Director of
Finance shall review the final 2003-04 Statement of Transactions of
the State Highway Account. If that review indicates that the actual
truck weight fee revenues deposited in the State Highway Account do
not total at least seven hundred eighty-nine million dollars
($789,000,000), the Director of Finance shall instruct the department
to adjust the schedule set forth in paragraph (1), but not to exceed
the following fee amounts:
Gross Vehicle Weight
Range Weight Code Fee
10,001-15,000 A $ 354
15,001-20,000 B 482
20,001-26,000 C 591
26,001-30,000 D 746
30,001-35,000 E 874
35,001-40,000 F 1,024
40,001-45,000 G 1,125
45,001-50,000 H 1,272
50,001-54,999 I 1,393
55,000-60,000 J 1,571
60,001-65,000 K 1,716
65,001-70,000 L 1,870
70,001-75,000 M 2,204
75,001-80,000 N 2,271
(d) (1) In addition to the fees set forth in subdivision (a), a
Cargo Theft Interdiction Program fee of three dollars ($3) shall be
paid at the time of initial or original registration or renewal of
registration of each motor vehicle subject to weight fees under this
section.
(2) This subdivision does not apply to vehicles used or maintained
for the transportation of persons for hire, compensation or profit,
and tow trucks.
(3) For vehicles registered under Article 4 (commencing with
Section 8050) of Chapter 4, the fee imposed under this subdivision
shall be apportioned as required for registration fees under that
article.
(4) Funds collected pursuant to the Cargo Theft Interdiction
Program shall not be proportionately reduced for each month and shall
be transferred to the Motor Carriers Safety Improvement Fund.
(e) Notwithstanding Section 42270 or any other provision of law,
of the moneys collected by the department under this section, one
hundred twenty-two dollars ($122) for each initial, original, and
renewal registration shall be reported monthly to the Controller, and
at the same time, deposited in the State Treasury to the credit of
the Motor Vehicle Account in the State Transportation Fund. All other
moneys collected by the department under this section shall be
deposited to the credit of the State Highway Account in the State
Transportation Fund. One hundred twenty-two dollars ($122) of the fee
imposed under this section shall not be proportionately reduced for
each month. For vehicles registered under Article 4 (commencing with
Section 8050) of Chapter 4, the fee shall be apportioned as required
for registration under that article.
(f) (1) The department, in consultation with the Department of the
California Highway Patrol, shall design and make available a set of
distinctive weight decals that reflect the declared gross combined
weight or gross operating weight reported to the department at the
time of initial registration, registration renewal, or when a weight
change is reported to the department pursuant to Section 9406.1. A
new decal shall be issued on each renewal or when the weight is
changed pursuant to Section 9406.1. The decal for a tow truck that is
subject to this section shall reflect the gross vehicle weight
rating or weight code.
(2) The department may charge a fee, not to exceed ten dollars
($10), for the department's actual cost of producing and issuing each
set of decals issued under paragraph (1).
(3) The weight decal shall be in sharp contrast to the background
and shall be of a size, shape, and color that is readily legible
during daylight hours from a distance of 50 feet.
(4) Each vehicle subject to this section shall display the weight
decal on both the right and left sides of the vehicle.
(5) A person may not display upon a vehicle a decal issued
pursuant to this subdivision that does not reflect the declared
weight reported to the department.
(6) Notwithstanding subdivision (e) or any other provision of law,
the moneys collected by the department under this subdivision shall
be deposited in the State Treasury to the credit of the Motor Vehicle
Account in the State Transportation Fund.
(7) This subdivision shall apply to vehicles subject to this
section at the time of an initial registration, registration renewal,
or reported weight change that occurs on or after July 1, 2004.
(8) The following shall apply to vehicles registered under the
permanent fleet registration program pursuant to Article 9.5
(commencing with Section 5301) of Chapter 1:
(A) The department, in consultation with the Department of the
California Highway Patrol, shall distinguish the weight decals issued
to permanent fleet registration vehicles from those issued to other
vehicles.
(B) The department shall issue the distinguishable weight decals
only to the following:
(i) A permanent fleet registration vehicle that is registered with
the department on January 1, 2005.
(ii) On and after January 1, 2005, a vehicle for which the
department has an application for initial registration as a permanent
fleet registration vehicle.
(iii) On and after January 1, 2005, a permanent fleet registration
vehicle that has a weight change pursuant to Section 9406.1.
(C) The weight decal issued under this paragraph shall comply with
the applicable provisions of paragraphs (1) to (6), inclusive.
SEC. 10. SEC. 9. Section 9400.4 of
the Vehicle Code is repealed.
SEC. 11. SEC. 10. Section 42205 of
the Vehicle Code is amended to read:
42205. (a) Notwithstanding Chapter 3 (commencing with Section
42270), the department shall file, at least monthly with the
Controller, a report of money received by the department pursuant to
Section 9400 for the previous month and shall, at the same time,
remit all money so reported to the Treasurer. On order of the
Controller, the Treasurer shall deposit all money so remitted into
the State Highway Account in the State Transportation Fund.
(b) The Legislature shall appropriate from the State Highway
Account in the State Transportation Fund to the department and the
Franchise Tax Board amounts equal to the costs incurred by each in
performing their duties pursuant to Article 3 (commencing with
Section 9400) of Chapter 6 of Division 3. The applicable amounts
shall be determined so that the appropriate costs for registration
and weight fee collection activities are appropriated between the
recipients of revenues in proportion to the revenues that would have
been received individually by those recipients if the total fee
imposed under the Vehicle License Fee Law (Part 5 (commencing with
Section 10701) of Division 2 of the Revenue and Taxation Code) was 2
percent of the market value of a vehicle. The remainder of the funds
collected under Section 9400 and deposited in the account may be
appropriated to the Department of Transportation, the Department of
the California Highway Patrol, and the Department of Motor Vehicles
for the purposes authorized under Section 3 of Article XIX of the
California Constitution.