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SB-137 Federal transportation funds: state exchange programs.(2019-2020)

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Date Published: 06/18/2019 09:00 PM
SB137:v98#DOCUMENT

Amended  IN  Assembly  June 18, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 137


Introduced by Senator Dodd

January 15, 2019


An act to add Sections Section 182.85 and 2334.5 to the Streets and Highways Code, relating to transportation.


LEGISLATIVE COUNSEL'S DIGEST


SB 137, as amended, Dodd. Federal transportation funds: state exchange programs.
Existing federal law apportions transportation funds to the states under various programs, including the Surface Transportation Program and the Highway Safety Improvement Program, subject to certain conditions on the use of those funds. Existing law provides for the allocation of certain of those funds to local entities. Existing law provides for the exchange of federal and state transportation funds between local entities and the state under certain circumstances.
Existing law requires that all money in the State Highway Account in the State Transportation Fund derived from federal sources or from appropriations to other state agencies, or deposited in the account by local agencies or by others, to be continuously appropriated to, and available for expenditure by, the Department of Transportation for the purposes for which the money was made available, including, among other purposes, transportation improvements.

Existing law establishes the Road Maintenance and Rehabilitation Program to address deferred maintenance on the state highway system and the local street and road system, and funds that program from fuel taxes and an annual transportation improvement fee imposed on vehicles.

This bill would authorize the Department of Transportation to allow the above-described federal transportation funds that are allocated as local assistance to be exchanged for Road Maintenance and Rehabilitation Program State Highway Account funds appropriated to the department.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.Section 182.85 is added to the Streets and Highways Code, to read:
182.85.

(a)For purposes of this section, the term “federal local assistance funds” means regional surface transportation program apportionments received in a federal fiscal year and apportioned as local assistance pursuant to Section 182.6 for transportation improvements that include road maintenance and rehabilitation activities.

(b)To increase flexibility in the use of state and federal funding to complete transportation improvements, the department may, upon the adoption of implementing guidelines pursuant to subdivision (e), exchange state funds appropriated to the department from the Road Maintenance and Rehabilitation Account created by Section 2031 for federal local assistance funds received by regional transportation planning agencies.

(c)The department shall not exchange state funds pursuant to this section unless the exchange meets all of the following criteria:

(1)The exchange will be used by the local agencies for projects or purposes for which the federal local assistance funds being exchanged were originally intended.

(2)The exchange will not put at risk other transportation activities or projects needing state funds.

(3)The exchange is consistent with the full implementation of the Road Maintenance and Rehabilitation Program created by Section 2030.

(4)Federal funds received in exchange can be readily and effectively used on other projects by the state during the federal fiscal year.

(5)The amount of exchange will not exceed the department’s ability to obligate all federal funds received in exchange during the current federal fiscal year.

(d)An exchange of federal funds authorized pursuant to subdivision (b) shall be on a dollar-for-dollar basis with nonfederal funds.

(e)The department shall propose guidelines and procedures to implement this section, hold a public hearing on the guidelines, and adopt the guidelines on or before January 1, 2021. The department shall begin the exchange program on or before July 1, 2021, if it determines that funding is available for that purpose. The department may amend its guidelines after holding a public hearing, but may not amend the guidelines between the time it notifies regional transportation planning agencies of the amount of state funds available for exchange and its approval of projects for exchange in any given year.

(f)This section does not affect the amount of an exchange permitted by subdivision (g) or (h) of Section 182.6.

SEC. 2.Section 2334.5 is added to the Streets and Highways Code, to read:

SECTION 1.

 Section 182.85 is added to the Streets and Highways Code, to read:

2334.5.182.85.
 (a) For purposes of this section, the term “federal local assistance funds” means either of the following:
(1) Highway Safety Improvement Program apportionments received in a federal fiscal year and allocated as local assistance pursuant to this chapter.
(2) Federal funds apportioned for local bridge projects.
(b) To increase flexibility in the use of state and federal funding to complete transportation improvements, the department may, upon the adoption of implementing guidelines pursuant to subdivision (e), exchange state funds appropriated to the department from the Road Maintenance and Rehabilitation Account created by Section 2031 State Highway Account for federal local assistance funds received by a city, county, or city and county.
(c) The department shall not exchange state funds pursuant to this section unless the exchange meets all of the following criteria:
(1) The exchange will be used by the city, county, or city and county for projects or purposes for which the federal local assistance funds being exchanged were originally intended.
(2) The exchange will not put at risk other transportation activities or projects needing state funds.

(3)The exchange is consistent with the full implementation of the Road Maintenance and Rehabilitation Program created by Section 2030.

(4)

(3) Federal funds received in exchange can be readily and effectively used on other projects by the state during the federal fiscal year.

(5)

(4) The amount of exchange will not exceed the department’s ability to obligate all federal funds received in exchange during the current federal fiscal year.
(d) An exchange of federal funds authorized pursuant to subdivision (b) shall be on a dollar-for-dollar basis with nonfederal funds.
(e) The department, in consultation with the League of California Cities and the California State Association of Counties, shall propose guidelines and procedures to implement this section, hold a public hearing on the guidelines, and adopt the guidelines on or before January 1, 2021. The department shall begin the exchange program on or before July 1, 2021, if it determines that funding is available for that purpose. The department may amend its guidelines after holding a public hearing, but may not amend the guidelines between the time it notifies cities, counties, or cities and counties of the amount of state funds available for exchange and its approval of projects for exchange in any given year.