California Assembly Bill AB672 Amended / Bill

 BILL NUMBER: AB 672AMENDED BILL TEXT AMENDED IN ASSEMBLY MAY 4, 2009 AMENDED IN ASSEMBLY APRIL 21, 2009 AMENDED IN ASSEMBLY APRIL 14, 2009 INTRODUCED BY Assembly Members Bass and Eng FEBRUARY 25, 2009 An act to add Section 8879.501 to the Government Code, relating to transportation. LEGISLATIVE COUNSEL'S DIGEST AB 672, as amended, Bass. Transportation: bond-funded projects: letter of no prejudice. Existing law, the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006, authorizes the issuance of $19.925 billion of general obligation bonds for various transportation purposes. Existing law designates the state agency responsible for programming bond funds under the act as the administrative agency for those purposes. This bill would authorize a regional or local agency that is a lead agency for a project that  has been approved   is programmed  for bond funding  on or after July 1, 2008,  to apply to the administrative agency for a letter of no prejudice that would allow the regional or local agency to expend its own funds for any bond-funded component of the project, subject to later reimbursement from bond proceeds, as specified. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. It is the intent of the Legislature in enacting this act to enhance the ability of regional and local government entities to deliver critical transportation capital improvement projects in an expeditious manner. SEC. 2. Section 8879.501 is added to the Government Code, to read: 8879.501. (a) A regional or local agency that is a lead applicant agency for a project that  has been approved for funding   is programmed for funding on or after July 1, 2008,  pursuant to Chapter 12.49 (commencing with Section 8879.20) may apply to the administrative agency for a letter of no prejudice for the project. If approved by the administrative agency, the letter of no prejudice shall allow the regional or local agency to expend its own funds for any bond-funded component of the project. (b) A project may be considered for a letter of no prejudice and, upon issuance of the letter of no prejudice, shall be eligible for reimbursement under this section if all of the following apply: (1) The administrative agency makes an allocation for the project pursuant to Section 8879.50. (2) The project component for which the letter of no prejudice was requested has been completed. (3) The expenditures made by the regional or local agency are eligible for reimbursement in accordance with state and federal laws and procedures. If expenditures made are determined to be ineligible, then the state has no obligation to reimburse for those expenditures. (4) The regional or local agency complies with all legal requirements for the project, including the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). (c) Upon execution of an agreement with the administrative agency to transfer reimbursement funds for a project described in subdivision (a), the administrative agency may delay reimbursement pursuant to this section only if cash management issues prevent immediate repayment and upon the advice of the Treasurer. (d) The administrative agency, in consultation with regional and local agencies, may develop guidelines to implement this section.