BILL NUMBER: AB 227	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Alejo

                        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, 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 introduced, 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. 
   (c) (1) For any payments of debt service, as defined in paragraph
(4) of subdivision (a) of Section 16965, with respect to any
designated bonds issued pursuant to Proposition 1B, the Controller
shall first draw warrants against the appropriation from the
Transportation Bond Direct Payment Account of the Transportation Debt
Service Fund created by subdivision (a) of Section 16965, and, to
the extent moneys in that account are insufficient to pay the amount
of debt service then due, shall draw warrants from the General Fund
for payment of any remaining amount then due against such
appropriation as may be available therefor, including the
appropriation made by Proposition 1B.  
   (2) (A) For purposes of this subdivision and Section 16965,
"Proposition 1B" means the Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006 (Chapter 12.49
(commencing with Section 8879.20) of Division 1).  
   (B) For purposes of this subdivision, Section 16965, and Section
9400.4 of the Vehicle Code, the term "designated bond" means any
designated bond under Proposition 1B, and the term "nondesignated
bond" means any bond issued under Proposition 1B, whether issued
before or after the enactment of the act adding this subdivision,
that is not a designated bond. For purposes of this subdivision, a
"designated bond" is an issue of bonds (including refunding bonds)
under Proposition 1B that has been designated by the Treasurer upon
or prior to its issuance, with the approval of the related finance
committee, to be paid pursuant to paragraph (1). 
  SEC. 3.  Section 16965 of the Government Code is repealed. 

   16965.  (a) (1) The Transportation Debt Service Fund is hereby
created in the State Treasury. Moneys in the fund shall be dedicated
to all of the following purposes:
   (A) Payment of debt service with respect to designated bonds, as
defined in subdivision (c) of Section 16773, and as further provided
in paragraph (3) and subdivision (b).
   (B) To reimburse the General Fund for debt service with respect to
bonds.
   (C) To redeem or retire bonds, pursuant to Section 16774, maturing
in a subsequent fiscal year.
   (2) The bonds eligible under subparagraph (B) or (C) of paragraph
(1) include issued pursuant to the Clean Air and Transportation
Improvement Act of 1990 (Part 11.5 (commencing with Section 99600) of
Division 10 of the Public Utilities Code), the Passenger Rail and
Clean Air Bond Act of 1990 (Chapter 17 (commencing with Section 2701)
of Division 3 of the Streets and Highways Code), the Seismic
Retrofit Bond Act of 1996 (Chapter 12.48 (commencing with Section
8879) of Division 1 of Title 2), and the Safe, Reliable High-Speed
Passenger Train Bond Act for the 21st Century (Chapter 20 (commencing
with Section 2704) of Division 3 of the Streets and Highways Code),
and nondesignated bonds under Proposition 1B, as defined in
subdivision (c) of Section 16773.
   (3) (A) The Transportation Bond Direct Payment Account is hereby
created in the State Treasury, as a subaccount within the
Transportation Debt Service Fund, for the purpose of directly paying
the debt service, as defined in paragraph (4), of designated bonds of
Proposition 1B, as defined in subdivision (c) of Section 16773.
Notwithstanding Section 13340, moneys in the Transportation Bond
Direct Payment Account are continuously appropriated for payment of
debt service with respect to designated bonds as provided in
subdivision (c) of Section 16773. So long as any designated bonds
remain outstanding, the moneys in the Transportation Bond Direct
Payment Account may not be used for any other purpose, and may not be
borrowed by or available for transfer to the General Fund pursuant
to Section 16310 or any similar law, or to the General Cash Revolving
Fund pursuant to Section 16381 or any similar law.
   (B) Once the Treasurer makes a certification that payment of debt
service with respect to all designated bonds has been paid or
provided for, any remaining moneys in the Transportation Bond Direct
Payment Account shall be transferred back to the Transportation Debt
Service Fund.
   (C) The moneys in the Transportation Bond Direct Payment Account
shall be invested in the Surplus Money Investment Fund, and all
investment earnings shall accrue to the account.
   (D) The Controller may establish subaccounts within the
Transportation Bond Direct Payment Account as may be required by the
resolution, indenture, or other documents governing any designated
bonds.
   (4) For purposes of this subdivision and subdivision (b), and
subdivision (c) of Section 16773, "debt service" means payment of all
of the following costs and expenses with respect to any designated
bond:
   (A) The principal of and interest on the bonds.
   (B) Amounts payable as the result of tender on any bonds, as
described in clause (iv) of subparagraph (B) of paragraph (1) of
subdivision (d) of Section 16731.
   (C) Amounts payable under any contractual obligation of the state
to repay advances and pay interest thereon under a credit enhancement
or liquidity agreement as described in clause (iv) of subparagraph
(B) of paragraph (1) of subdivision (d) of Section 16731.
   (D) Any amount owed by the state to a counterparty after any
offset for payments owed to the state on any hedging contract as
described in subparagraph (A) of paragraph (2) of subdivision (d) of
Section 16731.
   (b) From the moneys transferred to the fund pursuant to paragraph
(2) or (3) of subdivision (c) of Section 9400.4 of the Vehicle Code,
there shall first be deposited into the Transportation Bond Direct
Payment Account in each month sufficient funds to equal the amount
designated in a certificate submitted by the Treasurer to the
Controller and the Director of Finance at the start of each fiscal
year, and as may be modified by the Treasurer thereafter upon
issuance of any new issue of designated bonds or upon change in
circumstances that requires such a modification. This certificate
shall be calculated by the Treasurer to identify, for each month, the
amount necessary to fund all of the debt service with respect to all
designated bonds. This calculation shall be done in a manner
provided in the resolution, indenture, or other documents governing
the designated bonds. In the event that transfers to the
Transportation Bond Direct Payment Account in any month are less than
the amounts required in the Treasurer's certificate, the shortfall
shall carry over to be part of the required payment in the succeeding
month or months.
   (c) The state hereby covenants with the holders from time to time
of any designated bonds that it will not alter, amend, or restrict
the provisions of subdivision (c) of Section 16773 of the Government
Code, or Sections 9400, 9400.1, 9400.4, and 42205 of the Vehicle
Code, which provide directly or indirectly for the transfer of weight
fees to the Transportation Debt Service Fund or the Transportation
Bond Direct Payment Account, or subdivisions (a) and (b) of this
section, or reduce the rate of imposition of vehicle weight fees
under Sections 9400 and 9400.1 of the Vehicle Code as they existed on
the date of the first issuance of any designated bonds, if that
alteration, amendment, restriction, or reduction would result in
projected weight fees for the next fiscal year determined by the
Director of Finance being less than two times the maximum annual debt
service with respect to all outstanding designated bonds, as such
calculation is determined pursuant to the resolution, indenture, or
other documents governing the designated bonds. The state may include
this covenant in the resolution, indenture, or other documents
governing the designated bonds.
   (d) Once the required monthly deposit, including makeup of any
shortfalls from any prior month, has been made pursuant to
subdivision (b), from moneys transferred to the fund pursuant to
paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the
Controller shall transfer as an expenditure reduction to the General
Fund any amount necessary to offset the cost of current year debt
service payments made from the General Fund with respect to any bonds
issued pursuant to Proposition 192 (1996) and three-quarters of the
amount of current year debt service payments made from the General
Fund with respect to any nondesignated bonds, as defined in
subdivision (c) of Section 16773, issued pursuant to Proposition 1B
(2006). In the alternative, these funds may also be used to redeem or
retire the applicable bonds, pursuant to Section 16774, maturing in
a subsequent fiscal year as directed by the Director of Finance.
   (e) From moneys transferred to the fund pursuant to Section 183.1
of the Streets and Highways Code, the Controller shall transfer as an
expenditure reduction to the General Fund any amount necessary to
offset the cost of current year debt service payments made from the
General Fund with respect to any bonds issued pursuant to Proposition
116 (1990). In the alternative, these funds may also be used to
redeem or retire the applicable bonds, pursuant to Section 16774,
maturing in a subsequent fiscal year as directed by the Director of
Finance.
   (f) Once the required monthly deposit, including makeup of any
shortfalls from any prior month, has been made pursuant to
subdivision (b), from moneysmoneys transferred to the fund pursuant
to paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the
Controller shall transfer as an expenditure reduction to the General
Fund any amount necessary to offset the eligible cost of current year
debt service payments made from the General Fund with respect to any
bonds issued pursuant to Proposition 108 (1990) and Proposition 1A
(2008), and one-quarter of the amount of current year debt service
payments made from the General Fund with respect to any nondesignated
bonds, as defined in subdivision (c) of Section 16773, issued
pursuant to Proposition 1B (2006). The Department of Finance shall
notify the Controller by July 30 of every year of the percentage of
debt service that is expected to be paid in that fiscal year with
respect to bond-funded projects that qualify as eligible guideway
projects consistent with the requirements applicable to the
expenditure of revenues under Article XIX of the California
Constitution, and the Controller shall make payments only for those
eligible projects. In the alternative, these funds may also be used
to redeem or retire the applicable bonds, pursuant to Section 16774,
maturing in a subsequent fiscal year as directed by the Director of
Finance.
   (g) On or before the second business day following the date on
which transfers are made to the Transportation Debt Service Fund, and
after the required monthly deposits for that month, including makeup
of any shortfalls from any prior month, have been made to the
Transportation Bond Direct Payment Account, the Controller shall
transfer the funds designated for reimbursement of bond debt service
with respect to nondesignated bonds, as defined in subdivision (c) of
Section 16773, and other bonds identified in subdivisions (d), (e),
and (f) in that month from the fund to the General Fund pursuant to
this section. 
  SEC. 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  June 30, 2021:   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.  Upon repayment of those loans to the
State Highway Account, those funds shall be immediately transferred
by the Controller to the Transportation Debt Service Fund for use
pursuant to Section 16965. 
   (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  June
30, 2021.   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.  Any repayments made to the State Highway Account
pursuant to subdivision (e) of Section 63048.65, upon transfer of
those funds to the State Highway Account, shall be immediately
transferred by the Controller from the State Highway Account to the
Transportation Debt Service Fund for use pursuant to Section 16965.

  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  Business,
 Transportation  and Housing  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  Business, Transportation and Housing 
 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  6800)   6820)  of Part 1 of
Division 2 of the Public Contract Code, other than Sections 
6802, 6803,   6821  and  6813 
 6822  of that  code, if those provisions are
enacted by the Legislature during the 2009-10 Regular Session, or a
2009-10 extraordinary session.   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  (P.L. 
 (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,  2017   ____  .
  SEC. 7.  Section 183.1 of the Streets and Highways Code is amended
to read:
   183.1.   (a)    Notwithstanding
subdivision (a) of Section 182 or any other provision of law, money
deposited into the account that is not subject to Article XIX of the
California Constitution, including, but not limited to, money that is
derived from the sale of documents, charges for miscellaneous
services to the public, condemnation deposits fund investments,
rental of state property, or any other miscellaneous uses of property
or money, may be used for any transportation purpose authorized by
statute, upon appropriation by the Legislature or, after transfer to
another fund, upon appropriation by the Legislature from that fund.

   (b) Commencing with the 2013-14 fiscal year, and not later than
November 1 of each fiscal year thereafter, based on prior year
financial statements, the Controller shall transfer the funds
identified in subdivision (a) for the prior fiscal year from the
State Highway Account to the Transportation Debt Service Fund in the
State Transportation Fund, and those funds are continuously
appropriated for the purposes specified for the Transportation Debt
Service Fund. 
  SEC. 8.  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) (A) By the 15th day of every month, the Treasurer's office, in
consultation with the Department of Finance, shall notify the
Controller of the amount of debt service that will be paid on each
transportation bond during that month.  
   (B) Within two business days following the 28th day of each month,
the Controller shall transfer to the Transportation Debt Service
Fund an amount equal to the amount of monthly debt service paid by
the General Fund on any bonds issued pursuant to the Seismic Retrofit
Bond Act of 1996 (Chapter 12.48 (commencing with Section 8879) of
Division 1 of Title 2 of the Government Code) or any other bonds
issued for highway or eligible guideway projects consistent with the
requirements applicable to the expenditure of revenues under Article
XIX of the California Constitution as identified by the Department of
Finance pursuant to Section 16965 of the Government Code, and
three-quarters of the amount of monthly debt service paid on any
bonds issued pursuant to the Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006 (Chapter 12.49
(commencing with Section 8879.20) of Division 1 of Title 2) for
reimbursement of the General Fund for these costs. If revenues
available pursuant to this subdivision in any given month are
insufficient to fully reimburse the General Fund for the debt service
payments made, the first revenues available pursuant to this
subdivision in the following month or months shall be transferred to
the Transportation Debt Service Fund so that all debt service
payments made on these bonds from the General Fund in a given fiscal
year are fully reimbursed. However, no further transfers shall be
made pursuant to this subparagraph once the transfers for the months
of July to October, inclusive, in 2010 have been made. Any transfers
made from the net revenues identified in this paragraph for highway
and eligible guideway bond debt service for months after October 2010
shall be reversed and shall instead be made from weight fee revenues
in the State Highway Account, as described in subparagraph (F).
 
   (C) Beginning November 2, 2010, the Controller shall transfer to
the State Highway Account within two business days following the 28th
day of each month all of the monthly net revenues identified in
subparagraph (B) that were designated for highway and eligible
guideway bond debt service reimbursement but that have not been
transferred, or that were transferred by means of a transfer that was
reversed, pursuant to that subparagraph. To the extent the
Controller has distributed any of those net revenues to cities and
counties pursuant to subparagraph (C) of paragraph (3) between
November 2, 2010, and March 24, 2011, the Controller shall
subsequently reduce the amount transferred to cities and counties on
a monthly basis pursuant to subparagraph (C) of paragraph (3) and
shall instead transfer these funds to the State Highway Account until
all of the revenues that would otherwise have been transferred to
the State Highway Account on and after November 2, 2010, pursuant to
this subparagraph have been so transferred. For the 2011-12 fiscal
year, the Controller shall transfer to the State Highway Account
within two business days following the 28th day of each month an
amount equal to the weight fee revenues transferred to the
Transportation Debt Service Fund pursuant to subdivision (b) of
Section 9400.4 of the Vehicle Code, including forty-three million
seven hundred thousand dollars ($43,700,000) authorized pursuant to
Item 2660-013-0042 of Section 2.00 of the Budget Act of 2011 and an
amount equal to weight fee revenues transferred to the General Fund
as a loan pursuant to subdivision (b) of Section 9400.4 of the
Vehicle Code. To the extent the Controller has distributed any of
those revenues to cities and counties pursuant to subparagraph (C) of
paragraph (3), the Controller shall subsequently reduce the amount
transferred to cities and counties on a monthly basis pursuant to
subparagraph (C) of paragraph (3) and instead transfer these funds to
the State Highway Account until all of the revenues that would
otherwise have been transferred to the State Highway Account in the
2011-12 fiscal year pursuant to this subparagraph have been so
transferred.  
   (D) Notwithstanding subparagraph (C), commencing with the 2012-13
fiscal year and every fiscal year thereafter, the Controller shall
transfer to the State Highway Account within two business days
following the 28th day of each month an amount equal to the amount of
weight fee revenues transferred to the Transportation Debt Service
Fund for highway and eligible guideway bond debt service and to the
General Fund as a loan pursuant to subdivision (c) of Section 9400.4
of the Vehicle Code.  
   (E) Beginning July 1, 2011, transfers made under subparagraphs (C)
and (D) during a fiscal year shall not exceed the annual revenue
generated from weight fees, as determined by Sections 9400.4 and
42205 of the Vehicle Code, at the rates in effect as of March 24,
2011, as determined by the Department of Finance.  
   (F) Any remaining amount of the highway or eligible guideway bond
debt service reimbursement authorized by this paragraph that has not
been made pursuant to subparagraph (B) on and after November 2, 2010,
shall instead be made pursuant to subdivisions (a), (b), and (c) of
Section 9400.4 of the Vehicle Code from revenues in the State Highway
Account derived from weight fees deposited in the account pursuant
to subdivision (e) of Section 9400.1 and Section 42205 of the Vehicle
Code.  
   (2) (A) In the 2010-11 fiscal year, after the monthly transfer
made pursuant to paragraph (1), the sum of fifty-four million one
hundred sixty-seven thousand dollars ($54,167,000) per month shall be
held in the account for future appropriation by the Legislature.
 
   (B) Notwithstanding any other provision of law, with respect to
the monthly net revenues described in subparagraph (A), no further
transfers of these revenues for the purpose of loans to the General
Fund shall be made pursuant to Item 2660-011-0062 of Section 2.00 of
the Budget Act of 2010 once the loan transfers for the months of July
to October, inclusive, in 2010 have been made. Notwithstanding the
loan repayment date specified in the provisional language for that
item, the funds loaned shall be repaid by June 30, 2021. Any
transfers made from the monthly net revenues in subparagraph (A) for
months after October 2010 shall be reversed and shall instead be made
from weight fee revenues in the State Highway Account, as described
in subparagraph (D). The revenues from loan repayments shall be held
in the Highway Users Tax Account for future appropriation by the
Legislature.  
   (C) Beginning November 2, 2010, all of the monthly net revenues
described in subparagraph (A) shall instead be transferred by the
Controller to the State Highway Account within two business days
following the 28th day of each month. To the extent that the
Controller has distributed any of the revenues identified in this
paragraph to cities and counties pursuant to subparagraph (C) of
paragraph (3) between October 14, 2010, and March 24, 2011, the
Controller shall subsequently reduce the amount transferred to cities
and counties on a monthly basis pursuant to subparagraph (C) of
paragraph (3) and shall instead transfer these funds to the State
Highway Account until all of the revenues that would have been
transferred to the General Fund as a loan pursuant to Item
2660-011-0062 of Section 2.00 of the Budget Act of 2010 on and after
November 2, 2010, have instead been transferred to the State Highway
Account.  
   (D) Any remaining amount of the loans to the General Fund
authorized pursuant to Item 2660-011-0062 of Section 2.00 of the
Budget Act of 2010 that has not been made pursuant to subparagraph
(B) on and after November 2, 2010, shall instead be made pursuant to
subdivisions (a), (b), and (c) of Section 9400.4 of the Vehicle Code
from revenues in the State Highway Account derived from weight fees
deposited in the account pursuant to subdivision (e) of Section
9400.1 and Section 42205 of the Vehicle Code.  
   (3) The Controller shall transfer any remaining net revenues
subject to this subdivision as follows:  
   (A) 
    (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  1   2  of Article XIX of the
California  Constitution, except in the 2010-11 fiscal year,
50 percent shall be transferred for purposes of this subparagraph.
  Constitution.  
   (B) 
    (2)  Twelve percent shall be transferred to the State
Highway Account to fund projects in the State Highway Operation and
Protection  Program, except in the 2010-11 fiscal year, no
revenues shall be transferred for purposes of this subparagraph.
  Program.  
   (C) 
    (3)  Forty-four percent shall be apportioned by the
Controller for local street and road purposes  , except in
the 2010-11 fiscal year, 50 percent shall be transferred for purposes
of this subparagraph  as follows: 
   (i) 
    (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. 
   (ii) 
    (B)  Fifty percent shall be apportioned by the
Controller to counties, including a city and county, in accordance
with the following formulas: 
   (I) 
    (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) 
    (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  subparagraph
(C) of  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.  Section 9400.1 of the Vehicle Code is amended to read:
   9400.1.  (a) (1) In addition to any other required fee, there
shall be paid the fees set forth in this section for the registration
of commercial motor vehicles operated either singly or in
combination with a declared gross vehicle weight of 10,001 pounds or
more. Pickup truck and electric vehicle weight fees are not
calculated under this section.
   (2) The weight of a vehicle issued an identification plate
pursuant to an application under Section 5014, and the weight of an
implement of husbandry as defined in Section 36000, shall not be
considered when calculating, pursuant to this section, the declared
gross vehicle weight of a towing commercial motor vehicle that is
owned and operated exclusively by a farmer or an employee of a farmer
in the conduct of agricultural operations.
   (3) Tow trucks that are utilized to render assistance to the
motoring public or to tow or carry impounded vehicles shall pay fees
in accordance with this section, except that the fee calculation
shall be based only on the gross vehicle weight rating of the towing
or carrying vehicle. Upon each initial or transfer application for
registration of a tow truck described in this paragraph, the
registered owner or lessee or that owner's or lessee's designee,
shall certify to the department the gross vehicle weight rating of
the tow truck:
Gross Vehicle Weight Range                Fee
10,001-15,000 .......................... $ 257
15,001-20,000 ..........................   353
20,001-26,000 ..........................   435
26,001-30,000 ..........................   552
30,001-35,000 ..........................   648
35,001-40,000 ..........................   761
40,001-45,000 ..........................   837
45,001-50,000 ..........................   948
50,001-54,999 ..........................  1,03
                                              9
55,000-60,000 ..........................  1,17
                                              3
60,001-65,000 ..........................  1,28
                                              2
65,001-70,000 ..........................  1,39
                                              8
70,001-75,000 ..........................  1,65
                                              0
75,001-80,000 ..........................  1,70
                                              0


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


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


   (d) (1) In addition to the fees set forth in subdivision (a), a
Cargo Theft Interdiction Program fee of three dollars ($3) shall be
paid at the time of initial or original registration or renewal of
registration of each motor vehicle subject to weight fees under this
section.
   (2) This subdivision does not apply to vehicles used or maintained
for the transportation of persons for hire, compensation or profit,
and tow trucks.
   (3) For vehicles registered under Article 4 (commencing with
Section 8050) of Chapter 4, the fee imposed under this subdivision
shall be apportioned as required for registration fees under that
article.
   (4) Funds collected pursuant to the Cargo Theft Interdiction
Program shall not be proportionately reduced for each month and shall
be transferred to the Motor Carriers Safety Improvement Fund.
   (e) Notwithstanding Section 42270 or any other provision of law,
of the moneys collected by the department under this section, one
hundred twenty-two dollars ($122) for each initial, original, and
renewal registration shall be reported monthly to the Controller, and
at the same time, deposited in the State Treasury to the credit of
the Motor Vehicle Account in the State Transportation Fund. All other
moneys collected by the department under this section shall be
deposited to the credit of the State Highway Account in the State
Transportation  Fund, or directly to the credit of the
Transportation Debt Service Fund as provided in paragraph (2) of
subdivision (c) of Section 9400.4, as applicable   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.  Section 9400.4 of the Vehicle Code is repealed. 
   9400.4.  Weight fee revenue deposited into the State Highway
Account pursuant to subdivision (e) of Section 9400.1 and subdivision
(a) of Section 42205 net of amounts appropriated for other purposes
pursuant to subdivision (b) of Section 42205, and weight fee revenues
deposited directly into the Transportation Debt Service Fund
pursuant to subdivision (e) of Section 9400.1 and subdivision (a) of
Section 42205, as applicable, shall be used as follows:
   (a) For the 2010-11 fiscal year, seven hundred fifty-six million
three hundred ninety-six thousand dollars ($756,396,000) is hereby
appropriated from weight fee revenues in the State Highway Account
for transfer to the General Fund as transportation bond debt service
reimbursement and loans as follows:
   (1) The Controller shall transfer all weight fee revenues
deposited into the State Highway Account in any month to the
Transportation Debt Service Fund for transfer to the General Fund as
reimbursement for debt service costs until all of the debt service
paid on transportation bonds for projects that the Director of
Finance indicates qualify for reimbursement as provided for in
Section 16965 of the Government Code have been reimbursed.
   (2) After the Director of Finance has notified the Controller that
all debt service costs for the 2010-11 fiscal year have been
reimbursed, the Controller shall transfer any remaining monthly
weight fee revenues in the State Highway Account to the General Fund
as a loan until the full amount appropriated in this subdivision has
been transferred to the General Fund. The Director of Finance may
repay any remaining portion of the outstanding balance of this loan
in any year in which the Director of Finance determines the funds are
needed to reimburse the General Fund for current year transportation
bond debt service or to redeem or retire those bonds, pursuant to
Section 16774 of the Government Code, maturing in a subsequent fiscal
year, provided that the loans shall be repaid no later than June 30,
2021. All funds loaned pursuant to this section, upon repayment to
the State Highway Account, shall be immediately transferred by the
Controller to the Transportation Debt Service Fund for use pursuant
to Section 16965 of the Government Code.
   (3) By June 15, 2011, the Director of Finance in consultation with
the Treasurer shall notify the Controller regarding the final amount
of debt service paid from the General Fund during the 2010-11 fiscal
year pursuant to Section 16965 of the Government Code and shall
direct the Controller to reverse and adjust any transfers made as
debt service reimbursements or loans so that a maximum amount of
transfers are made for debt service reimbursements and with any loan
amounts limited to the difference between this amount and the total
amount appropriated in this subdivision. The total amount of weight
fee revenues transferred from the State Highway Account for the
2010-11 fiscal year shall not be greater than the total amount of
weight fee revenues deposited into the State Highway Account for that
year.
   (4) With respect to transfers or portions of transfers that cannot
be made in any given month if weight fee revenues are insufficient,
the first weight fee revenues available in the following month or
months shall be used to complete the transfers for the previous month
or months prior to making additional transfers for later months.
   (b) For the 2011-12 fiscal year, all revenue generated from weight
fees in the State Highway Account, as determined by Sections 9400.1
and 42205, excluding an amount equal to the loan of forty-three
million seven hundred thousand dollars ($43,700,000) authorized
pursuant to Item 2660-013-0042 of Section 2.00 of the Budget Act of
2011, is hereby appropriated for transfer to the General Fund as debt
service reimbursement and loans as follows:
   (1) The Controller shall transfer all weight fee revenues
deposited into the State Highway Account in any month to the
Transportation Debt Service Fund for transfer to the General Fund as
reimbursement for debt service costs until all of the debt service
paid on transportation bonds for projects that the Director of
Finance indicates qualify for reimbursement as provided for in
Section 16965 of the Government Code have been reimbursed.
   (2) After the Director of Finance has notified the Controller that
all debt service costs for the 2011-12 fiscal year have been
reimbursed, the Controller shall transfer any remaining weight fee
revenues for that fiscal year in the State Highway Account to the
General Fund as a loan until all weight fee revenues for that fiscal
year appropriated in this subdivision have been transferred to the
General Fund, excluding forty-two million dollars ($42,000,000),
which shall be transferred to the General Fund as a loan on July 1,
2012. The Director of Finance may repay any portion of the balance of
this loan in any year in which the Director of Finance determines
the funds are needed to reimburse the General Fund for current year
transportation bond debt service or to redeem or retire those bonds,
pursuant to Section 16774 of the Government Code, maturing in a
subsequent year, provided that the loans shall be repaid no later
than June 30, 2021. All funds loaned pursuant to this section, upon
repayment to the State Highway Account, shall be immediately
transferred by the Controller to the Transportation Debt Service Fund
for use pursuant to Section 16965 of the Government Code.
   (3) By June 15, 2012, the Director of Finance in consultation with
the Treasurer shall notify the Controller regarding the final amount
of debt service paid from the General Fund during the 2011-12 fiscal
year pursuant to Section 16965 of the Government Code and shall
direct the Controller to reverse and adjust any transfers made as
debt service reimbursements or loans so that a maximum amount of
transfers are made for debt service reimbursements and with any loan
amounts limited to the difference between this amount and the total
amount appropriated in this subdivision. The total amount of weight
fee revenues transferred from the State Highway Account for the
2011-12 fiscal year shall not be greater than the total amount of
weight fee revenues deposited into the State Highway Account in that
year.
   (4) With respect to transfers or portions of transfers that cannot
be made in any given month if weight fee revenues are insufficient,
the first weight fee revenues available in the following month or
months shall be used to complete the transfers for the previous month
or months prior to making additional transfers for later months.
   (c) (1) (A) Until the month of first issuance of designated bonds
as defined in subdivision (c) of Section 16773 of the Government
Code, and at any time thereafter that a Treasurer's certification
pursuant to subparagraph (B) of paragraph (3) of subdivision (a) of
Section 16965 of the Government Code applies, all weight fee revenues
subject to this section in any month shall be transferred from the
State Highway Account to the Transportation Debt Service Fund.
   (B) Except as provided in paragraph (3), or when subparagraph (A)
applies pursuant to a Treasurer's certification, upon the first
issuance of designated bonds, as defined in subdivision (c) of
Section 16773 of the Government Code, starting in the month following
that first issuance, all weight fee revenues received by the
Controller from the first day through the 14th day of every month
shall be transferred from the State Highway Account to the
Transportation Debt Service Fund.
   (C) All funds transferred pursuant to subparagraphs (A) and (B)
are hereby appropriated for transfer to the General Fund by the
Controller as reimbursement for debt service costs paid with respect
to eligible bonds described in subparagraph (A) of paragraph (2) of
subdivision (a) of Section 16965 of the Government Code, until all
debt service that the Director of Finance indicates qualifies for
reimbursement as provided for in subdivision (d), (e), or (f) of
Section 16965 of the Government Code has been reimbursed, or to
redeem or retire bonds, pursuant to Section 16774 of the Government
Code, as referenced in subdivision (d), (e), or (f) of Section 16965
of the Government Code, that are maturing in a subsequent year. After
the Director of Finance has notified the Controller that all debt
service costs for the fiscal year have been reimbursed, the
Controller shall transfer any remaining revenue generated from weight
fees subject to this section for that fiscal year in the State
Highway Account to the General Fund as a loan. The Director of
Finance may repay any portion of the balance of this loan in any year
in which the Director of Finance determines that the funds are
needed to reimburse the General Fund for current year transportation
bond debt service or to redeem or retire those bonds pursuant to
Section 16774 of the Government Code, maturing in a future fiscal
year, provided that the loans shall be repaid no later than June 30,
2021. All funds loaned pursuant to this section, upon repayment to
the State Highway Account, shall be immediately transferred by the
Controller to the Transportation Debt Service Fund for use pursuant
to Section 16965 of the Government Code. By June 15 of each year, the
Director of Finance, in consultation with the Treasurer, shall
notify the Controller regarding the final amount of debt service paid
from the General Fund during that fiscal year pursuant to
subdivision (d), (e), or (f) of Section 16965 of the Government Code
and shall direct the Controller to reverse or adjust any transfers
made as debt service reimbursements or loans so that a maximum amount
of transfers are made for debt service reimbursements and with any
loan amounts limited to the difference between this amount and the
total amount of revenue for that fiscal year generated from weight
fees, as determined by Sections 9400.1 and 42205. The total amount of
weight fee revenues transferred from the State Highway Account in
any fiscal year shall not be greater than the total amount of weight
fee revenues deposited into the State Highway Account in that year.
   (2) Starting in the month following the first issuance of any
designated bonds, unless a Treasurer's certification pursuant to
subparagraph (B) of paragraph (3) of subdivision (a) of Section 16965
of the Government Code applies, all weight fee revenues subject to
this section that are received by the Controller from the 15th day of
every month, or the first business day thereafter if not a business
day, through the last day of the month shall be deposited directly in
the Transportation Debt Service Fund and are hereby appropriated for
transfer as follows:
   (A) First, to the Transportation Bond Direct Payment Account as
set forth in subdivision (b) of Section 16965 of the Government Code,
to provide for payment of debt service with respect to designated
bonds.
   (B) Thereafter, as provided in subparagraph (C) of paragraph (1).
   (3) Notwithstanding paragraphs (1) and (2), if by the last day of
a month the transfer for that month relating to designated bonds
required by the Treasurer's certificate described in subdivision (b)
of Section 16965 of the Government Code has not been made due to
insufficient weight fee revenue, weight fee revenue shall continue to
be transferred pursuant to paragraph (2) beginning with the first
day of the subsequent month and continuing every day until such time
as sufficient revenue for full compliance with the certificate has
been transferred.
   (4) Except as otherwise provided in paragraph (1), (2), or (3),
with respect to any transfers or portions of transfers that cannot be
made in any given month if weight fee revenues are insufficient, the
first weight fee revenues available in the following month or months
shall be used to complete the transfers for the previous month or
months prior to making additional transfers for later months.

  SEC. 11.  Section 42205 of the Vehicle Code is amended to read:
   42205.  (a) Notwithstanding Chapter 3 (commencing with Section
42270), the department shall file, at least monthly with the
Controller, a report of money received by the department pursuant to
Section 9400 for the previous month and shall, at the same time,
remit all money so reported to the Treasurer. On order of the
Controller, the Treasurer shall deposit all money so remitted into
the State Highway Account in the State Transportation  Fund,
or directly into the Transportation Debt Service Fund as provided in
paragraph (2) of subdivision (c) of Section 9400.4, as applicable
  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  ,
other than the direct deposits to the Transportation Debt Service
Fund                                                referenced in
subdivision (a),  may be appropriated to the Department of
Transportation, the Department of the California Highway Patrol, and
the Department of Motor Vehicles for the purposes authorized under
Section 3 of Article XIX of the California Constitution.