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AB-604 Road Maintenance and Rehabilitation Account: apportionment of funds: accrued interest. (2021-2022)

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Date Published: 02/11/2021 09:00 PM
AB604:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 604


Introduced by Assembly Member Daly

February 11, 2021


An act to amend Sections 2031 and 2032.5 of, and to add Section 2031.3 to, the Streets and Highways Code, relating to transportation, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 604, as introduced, Daly. Road Maintenance and Rehabilitation Account: apportionment of funds: accrued interest.
Existing law creates the Road Maintenance and Rehabilitation Program to address deferred maintenance on the state highway system and the local street and road system. Existing law provides for the deposit of various funds, including revenues from certain fuel taxes and vehicle fees, for the program in the Road Maintenance and Rehabilitation Account. Existing law requires funds available for the program to be allocated for various specified purposes and requires the remaining funds available for the program to be continuously appropriated 50% for allocation to the Department of Transportation for maintenance of the state highway system or for the State Highway Operation and Protection Program and 50% for apportionment to cities and counties by the Controller pursuant to a specified formula.
This bill would continuously appropriate interest earnings derived from revenues deposited in the Road Maintenance and Rehabilitation Account to the department for maintenance of the state highway system or for purposes of the State Highway Operation and Protection Program.
Vote: MAJORITY   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 2031 of the Streets and Highways Code is amended to read:

2031.
 The following revenues shall be deposited in the Road Maintenance and Rehabilitation Account, which is hereby created in the State Transportation Fund:
(a) Notwithstanding subdivision (b) of Section 2103 and pursuant to subdivision (a) of Section 2103.1, the portion of the revenues in the Highway Users Tax Account attributable to the increases in the motor vehicle fuel excise tax pursuant to subdivision (c) of Section 7360 of the Revenue and Taxation Code, as adjusted pursuant to subdivision (d) of that section.
(b) The revenues from the portion of the transportation improvement fee pursuant to subdivision (c) of Section 11053 of the Revenue and Taxation Code.
(c) The revenues from the increase in the vehicle registration fee pursuant to Section 9250.6 of the Vehicle Code, as adjusted pursuant to subdivision (b) of that section.
(d) Notwithstanding subdivision (b) of Section 2103 and pursuant to paragraph (2) of subdivision (b) of Section 2103.1, one-half of the revenues attributable to the increase in the diesel fuel excise tax pursuant to subdivisions (b) and (c) of Section 60050 of the Revenue and Taxation Code.
(e) Any interest earned on the revenues in the Road Maintenance and Rehabilitation Account.

(e)

(f) Any other revenues designated for the program.

SEC. 2.

 Section 2031.3 is added to the Streets and Highways Code, to read:

2031.3.
 (a) The revenues described in subdivision (e) of Section 2031 shall not be used to satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive, of Section 2032 and shall not be appropriated pursuant to subdivision (h) of Section 2032.
(b) Notwithstanding Section 13340 of the Government Code, the revenues described in subdivision (e) of Section 2031 shall be continuously appropriated to the department for maintenance of the state highway system or for purposes of the State Highway Operation and Protection Program.

SEC. 3.

 Section 2032.5 of the Streets and Highways Code is amended to read:

2032.5.
 (a) It is the intent of the Legislature that the Department of Transportation and local governments are held accountable for the efficient investment of public funds to maintain the public highways, streets, and roads, and are accountable to the people through performance goals that are tracked and reported.
(b) The department shall annually report to the commission relative to the expenditures made with funds received pursuant to Section 2031.3 and subdivision (c) of, and paragraph (1) of subdivision (h) of, Section 2032, and the progress made and achievement of the performance goals outlined in subdivision (n) of Section 1 of the act adding this section.
(c) For each fiscal year in which the department receives an allocation of funds described in subdivision (b), the department shall submit documentation to the commission that includes a description and the location of each completed project, the amount of funds expended on the project, the completion date, and the project’s estimated useful life. Annually, the commission shall evaluate the effectiveness of the department in reducing deferred maintenance and improving road conditions on the state highway system, as demonstrated by the progress made by the goals set forth in subdivision (n) of Section 1 of the act enacting this section. The commission may make recommendations for improvement and may withhold future project allocations if it determines program funds are not being appropriately spent. The commission shall annually include any findings in its annual report to the Legislature pursuant to Section 14535 of the Government Code.
(d) The department shall implement efficiency measures with the goal to generate at least one hundred million dollars ($100,000,000) per year in savings to invest in maintenance and rehabilitation of the state highway system. These savings shall be reported to the commission.