| 1 | | - | Enrolled September 04, 2020 Passed IN Senate August 31, 2020 Passed IN Assembly August 31, 2020 Amended IN Assembly August 25, 2020 Amended IN Assembly August 24, 2020 Amended IN Assembly August 06, 2020 Amended IN Assembly July 27, 2020 Amended IN Senate March 25, 2020 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 1351Introduced by Senator Beall(Principal coauthor: Assembly Member Frazier)February 21, 2020An act to add Chapter 6 (commencing with Section 14470) to Part 5 of Division 3 of Title 2 of the Government Code, and to amend Sections 2031 and 2032 of the Streets and Highways Code, relating to transportation, and making an appropriation therefor.LEGISLATIVE COUNSEL'S DIGESTSB 1351, Beall. Transportation improvement fee: revenue bonds.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 revenues for the program in the Road Maintenance and Rehabilitation Account, including specified portions of revenues from certain fuel excise taxes, a road improvement fee imposed on certain zero-emission vehicles, and the transportation improvement fee. Existing law imposes the transportation improvement fee under the Vehicle License Fee Law with a varying fee between $25 and $175 based on vehicle value and an inflation adjustment, and requires the fee to be collected at the same time and in the same manner as the vehicle registration fee. Existing law requires revenues in the Road Maintenance and Rehabilitation Account to be annually allocated by first making specified deductions for various specified purposes and then continuously appropriating the remaining revenues in the account 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 create the Transportation Improvement Fee Subaccount in the Road Maintenance and Rehabilitation Account and would transfer the revenues from the transportation improvement fee that are deposited in the Road Maintenance and Rehabilitation Account to the subaccount. The bill would continuously appropriate the revenues in the subaccount to the department and cities and counties as part of the same appropriation made to those entities from the Road Maintenance and Rehabilitation Account. The bill would prohibit the revenues in the subaccount from being used to satisfy the above-described deductions from the Road Maintenance and Rehabilitation Account, except under specified circumstances. The bill would require the revenues in the subaccount to be used first to satisfy the 50% allocation to the department and would require those revenues to be deposited in the State Highway and SHOPP TIF Account, which the bill would create in the State Transportation Fund.This bill would continuously appropriate the amounts deposited in the State Highway and SHOPP TIF Account and pledged by the Transportation Improvement Fee Finance Committee, as specified below, to the Treasurer for the purposes of issuing revenue bonds, as specified, and the amounts that have not been pledged by the committee would be continuously appropriated to the department for the purposes of the maintenance of the state highway system or the State Highway Operation and Protection Program, subject to the terms of the issuing instrument for any outstanding revenue bonds.This bill would create the Transportation Improvement Fee Finance Committee, consisting of specified state officers, solely for the purpose of authorizing the issuance and sale of the above-described revenue bonds and the execution and delivery of ancillary obligations, and executing and entering into an issuing instrument. The bill would authorize the committee, in order to provide security for the revenue bonds and ancillary obligations, to include provisions in an issuing instrument pledging the interests of the state in the State Highway and SHOPP TIF Account to the payment of the revenue bonds and the payment of ancillary obligations.This bill would authorize the department to designate projects to be funded from the proceeds of revenue bonds that are included in the State Highway Operation and Protection Program adopted by the California Transportation Commission on May 13, 2020, and that have completed environmental clearance and project design. The bill would authorize the department to request the committee to authorize the issuance of revenue bonds to provide funds for the designated projects.This bill would permit the committee to authorize the Treasurer to sell the revenue bonds at public or private sale and to do all things necessary or convenient to carry out the powers and purposes of these provisions. The bill would authorize revenue bonds to be issued on a tax-exempt or taxable basis in a principal amount not to exceed $5,000,000,000, excluding refunding bonds and excluding any net original issuance premium derived from the sale of the bonds. The bill would create the State TIF Revenue Bond Fund in the State Treasury and would require the net proceeds derived from the issuance of revenue bonds to be deposited in the fund. The bill would continuously appropriate the moneys in the fund to the department and the Treasurer to finance or refinance projects designated by the department and to fund necessary reserves for principal and interest, capitalized interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the revenue bonds.This bill would provide that the revenue bonds may not be deemed to constitute a debt or liability of the state or any political subdivision of the state, or a pledge of the full faith and credit of the state or any political subdivision of the state, but shall be paid solely from the funds and revenues pledged for that purpose.This bill would provide that the state covenants with the holders of these revenue bonds, and with those parties who may enter into ancillary obligations, that it will not alter, amend, or restrict the specified provisions of law, including provisions creating the transportation improvement fee, in any manner that would materially adversely impair the interests of those bondholders or parties.Digest Key Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Chapter 6 (commencing with Section 14470) is added to Part 5 of Division 3 of Title 2 of the Government Code, to read: CHAPTER 6. Transportation Improvement Fee Revenue Bonds Article 1. Legislative Findings and Declarations14470. The Legislature hereby finds and declares all of the following:(a) Upon the passage of Senate Bill 1 of the 201718 Regular Session (Senate Bill 1), it was found, at that time, that the state faced a fifty-nine-billion-dollar ($59,000,000,000) shortfall over a 10-year period to adequately maintain the existing state highway system in order to keep the system in a basic state of good repair.(b) Additionally, upon the passage of Senate Bill 1, it was further found that California motorists were spending seventeen billion dollars ($17,000,000,000) annually in extra maintenance and car repair bills, which is more than seven hundred dollars ($700) per driver, due to the states poorly maintained roads.(c) Improving the condition of the states road system will have a positive impact on the economy as it lowers the transportation costs of doing business, reduces congestion impacts for employees, and protects property values in the state.(d) The federal government estimates that increased spending on infrastructure creates more than 13,000 jobs per one billion dollars ($1,000,000,000) spent.(e) Well-maintained roads benefit all users, not just drivers, as roads are used for all modes of transport, whether motor vehicles, transit, bicycles, or pedestrians.(f) Well-maintained roads additionally provide significant health benefits and prevent injuries and death due to crashes caused by poorly maintained infrastructure.(g) With the enactment of Senate Bill 1, otherwise known as the Road Repair and Accountability Act of 2017, the Legislature created a comprehensive funding package to address improvements to Californias transportation system.(h) One of the revenue sources created under the Road Repair and Accountability Act of 2017 was a new transportation improvement fee imposed under the Vehicle License Fee Law.(i) The new transportation improvement fee may only be used for transportation purposes pursuant to subdivision (d) of Section 11051 of the Revenue and Taxation Code and Section 1 of Article XIX D of the California Constitution.(j) A portion of the proceeds of the new transportation improvement fee are deposited into the Road Maintenance and Rehabilitation Account in the State Transportation Fund for use on deferred maintenance and road rehabilitation projects on the state highway system.(k) Using revenue bonds of the State of California to finance eligible state highway system transportation projects can greatly accelerate projects and can result in significant cost savings to the state, since those transportation projects can be completed at present-day costs.(l) Funding transportation projects with revenue bonds can also deliver projects to the public significantly sooner than traditional funding mechanisms.(m) Furthermore, accelerating transportation projects with revenue bonds will result in the timely creation of well-paid jobs and stimulate the states economy, which is currently experiencing a significant downturn as a result of the COVID-19 pandemic.(n) Therefore, it is in the best interest of the state to develop these new and innovative methods for funding and accelerating critical transportation projects. Article 2. Definitions14471. Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.14471.1. (a) Ancillary obligation means an obligation of the state entered into in connection with any revenue bonds issued in accordance with this chapter, including the following:(1) A credit enhancement or liquidity agreement, including any credit enhancement or liquidity agreement in the form of bond insurance, letter of credit, standby bond purchase agreement, reimbursement agreement, liquidity facility, surety bond, or other similar arrangement.(2) A remarketing agreement.(3) A broker-dealer agreement or other agreement relating to the marketing of the revenue bonds.(4) An interest rate or other type of swap or hedging contract.(5) An investment agreement, forward purchase agreement, or similar structured investment contract.(b) Committee means the Transportation Improvement Fee Finance Committee created pursuant to Section 14473.(c) Designated project means a project that has been designated for accelerated construction by the department in accordance with this chapter.(d) Issuing Instrument means any resolution, trust agreement, indenture, certificate, or other instrument authorizing the issuance of revenue bonds in accordance with this chapter and providing for their security and repayment.(e) Revenue bonds or bonds means revenue bonds of the state issued in accordance with this chapter.(f) State Highway and SHOPP TIF Account means the account created pursuant to subparagraph (A) of paragraph (1) of subdivision (i) of Section 2032 of the Streets and Highways Code.(g) Transportation improvement fee means the transportation improvement fee imposed pursuant to Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code.(h) Trustee means the Treasurer and, at the option of the Treasurer, any cotrustee which is a national bank, bank or trust company within or without the state, acting as trustee or cotrustee for any issue of revenue bonds in accordance with this chapter and, if there is more than one issue of bonds, the term means the trustee for each issue of bonds, respectively. If there are cotrustees for an issue of bonds, trustee means those cotrustees collectively. Article 3. Selection of Projects14472. (a) The department may designate projects to be funded from the proceeds of revenue bonds that are included in the State Highway Operation and Protection Program prepared pursuant to Section 14526.5 and adopted on May 13, 2020, and that have completed environmental clearance and project design.(b) When the department anticipates the issuance of new revenue bonds and, in conjunction with the commission, makes a written request in that regard, the department, in conjunction with the Treasurers office, shall prepare an analysis of the bonding capacity of transportation improvement fee revenues deposited in the State Highway and SHOPP TIF Account and expected to be available to fund designated projects. The bonding capacity determined pursuant to this subdivision shall not impact, reduce, or otherwise modify the allocation of revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount and continuously appropriated pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code.14472.1. (a) Upon taking the actions authorized under this article, the department may request the committee to authorize the issuance of revenue bonds to provide funds for the designated projects.(b) On or before April 1 of each year, the department shall prepare and submit an annual report regarding the preceding calendar year to the Governor and the Legislature. Each report shall compile and detail the total amount of outstanding debt issued pursuant to this chapter and the projects funded by that outstanding debt. A report to be submitted to the Legislature pursuant to this subdivision shall be submitted in compliance with Section 9795.14472.2. On or before October 1 of each year, the department shall report to the Governor, the Department of Finance, the Legislative Analysts Office, and the chairs of the transportation committees in the Assembly and Senate on the amount of revenue bonds that the department intends to request that the committee issue for the subsequent fiscal year.14472.3. Within 90 days of the effective date of this chapter, the department shall submit a list of projects to the Treasurer and the committee that are eligible to be designated pursuant to Section 14472. Article 4. Creation of the Transportation Improvement Fee Finance Committee14473. (a) The committee is hereby created solely for the purpose of authorizing the issuance and sale of the bonds and the execution and delivery of ancillary obligations authorized by this chapter, and executing and entering into an issuing instrument.(b) The committee shall consist of the Treasurer, the Controller, and the Director of Finance, or their designated representatives.(c) The Treasurer shall serve as chairperson of the committee.(d) A majority of the committee may act for the committee.(e) The Attorney General shall be the legal counsel for the committee. With the approval of the Attorney General, the committee may employ any legal counsel that in its judgment is necessary or advisable to enable it to carry out its duties and functions, including, but not limited to, the employment of any bond counsel deemed advisable in connection with the issuance and sale of revenue bonds.(f) A member, officer, or agent of the committee shall not be subject to personal liability on any revenue bonds or ancillary obligations issued or entered into in accordance with this chapter or for any acts or omissions of members, officers, or agents in carrying out the powers and duties conferred by this chapter.(g) The members of the committee shall serve without compensation. Article 5. Issuance of Revenue Bonds14474. (a) Revenue bonds may be issued in accordance with this chapter on a tax-exempt or taxable basis in a principal amount not to exceed five billion dollars ($5,000,000,000), excluding refunding bonds and excluding any net original issuance premium derived from the sale of the bonds, to finance or refinance designated projects and to fund necessary reserves for principal and interest, capitalized interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the revenue bonds.(b) The State TIF Revenue Bond Fund is hereby created within the State Treasury and, notwithstanding Section 13340 or any other law, continuously appropriated, without regard to fiscal years, to the department and the Treasurer for the purposes of, and in accordance with, this chapter. Accounts and subaccounts may be created within the fund as needed.(c) There shall be paid into the State TIF Revenue Bond Fund the net proceeds derived from the issuance of revenue bonds in accordance with this chapter.(d) Moneys in the State TIF Revenue Bond Fund may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.1. In order to provide security for repayment of the revenue bonds and ancillary obligations, the committee may include in an issuing instrument provisions pledging all or a portion of the interests of the state in the State Highway and SHOPP TIF Account and any moneys in that account and any accounts established under the issuing instrument and the moneys on deposit in those accounts designated by the committee to the payment of principal of, and interest and premium on, the revenue bonds and the payment of ancillary obligations, for as long as any revenue bonds or ancillary obligations remain outstanding. The committee shall not pledge any portion of the allocation of revenues pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code or, in any other way, impact, modify, or reduce that allocation. The pledge shall be governed by Chapter 5.5 (commencing with Section 5450) of Division 6 of Title 1. The pledge described in this section shall constitute a pledge of collateral within the meaning of subdivision (b) of Section 5450. The issuing instrument shall constitute a pledge document for purposes of Section 5451, as defined in Section 5450.14474.2. Revenue bonds may be issued from time to time pursuant to an issuing instrument, including an issuing instrument entered into between the committee and a trustee. The issuing instrument may contain any of the following provisions, which shall be a part of the contract with the holders of the revenue bonds to be authorized:(a) Provisions of the type described in Section 14474.1.(b) Provisions for classes of revenue bonds having different priority in the receipt of available transportation improvement fee revenues.(c) Provisions for the investment of proceeds of the revenue bonds or of the moneys received for repayment of the revenue bonds.(d) Provisions setting aside reserves or sinking funds, and the regulation and disposition thereof.(e) Limitations on the issuance of additional revenue bonds, the terms upon which additional revenue bonds may be issued and secured, and the refunding of outstanding revenue bonds.(f) The procedure, if any, by which the terms of any contract with revenue bondholders may be amended or abrogated, the amount of revenue bonds and the holders thereof that are required to give consent thereto, and the manner in which the consent may be given.(g) Definitions of acts or omissions to act that constitute a default in the duties of the state to holders of the revenue bonds, and provisions on the rights and remedies of the holders in the event of a default.14474.3. The revenue bonds shall be authorized by resolution or resolutions of the committee, shall be in the form, shall bear the date or dates, and shall mature at the time or times, as the issuing instrument may provide, except that no revenue bond may mature more than 40 years from the date of its issue. The revenue bonds shall bear interest at fixed or variable rate or rates, be in the denominations, be in the form, be executed in the manner, be payable in the medium of payment at the place or places within or without the state, be subject to the terms of redemption and tender for purchase and contain the terms and conditions, that the issuing instrument may provide. The committee may authorize the Treasurer, upon those terms and conditions that may be fixed by the committee or determined by the Treasurer, to sell the revenue bonds at public or private sale at, above, or below the par value. The committee may authorize the Treasurer to do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.4. (a) Notwithstanding Section 13340 or any other law, the amounts deposited in the State Highway and SHOPP TIF Account and pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the Treasurer, as trustee or cotrustee under the issuing instrument, for the purposes of, and in accordance with, this chapter, and the amounts deposited in the State Highway and SHOPP TIF Account that have not been pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the department, for the purposes of, and in accordance with paragraph (1) of subdivision (h) of Section 2032 of the Streets and Highways Code, subject to the terms of the issuing instrument for any outstanding revenue bonds.(b) Moneys in the State Highway and SHOPP TIF Account may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.5. (a) The committee may provide for the issuance and sale of refunding revenue bonds to refund any outstanding revenue bonds, and to fund necessary reserves for principal and interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the refunding revenue bonds.(b) The proceeds of any revenue bonds issued for the purpose of refunding of outstanding bonds may, at the discretion of the committee, be applied to the purchase or redemption before maturity or retirement at maturity of the outstanding bonds on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof, or paid to a third person to assume the obligation to make those payments, and may, pending that application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on any date or dates as may be determined by the committee.14474.6. Whenever the committee deems that it will increase the salability or the price of the revenue bonds to obtain, before or after sale, a legal opinion, other than that of the Attorney General, as to the validity or tax-exempt nature of the revenue bonds, the committee may obtain that legal opinion. Payment for those legal services shall be made from the proceeds of the sale of the revenue bonds.14474.7. (a) The Treasurer may employ financial, engineering, or transportation consultants or advisers, underwriters, and accountants as may be necessary in the Treasurers judgment in connection with the issuance and sale of any revenue bonds. Payment for these services may be made out of the proceeds of the sale of the revenue bonds.(b) The Treasurer may do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.8. Revenue bonds issued under this chapter are a legal investment for any state special or trust fund notwithstanding any law limiting the investments that may be made by the special or trust fund. The revenue bonds shall be legal investments in which all public officers and public bodies of the state, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings and loan associations, savings banks and savings associations, and investment companies, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons authorized to invest in revenue bonds or in other obligations of the state, may properly and legally invest funds, including capital, in their control or belonging to them. The revenue bonds may be used as security for public deposits. The revenue bonds are also securities that may properly and legally be deposited with and received by all public officers and bodies of state or any agency or political subdivision of the state and all municipalities and public corporations for any purpose for which the deposit of revenue bonds or other obligations of the state is authorized by law, including deposits to secured public funds.14474.9. Notwithstanding any other law, revenue bonds issued in accordance with this chapter are not and shall not be deemed to constitute a debt or liability of the state, or of any political subdivision of the state, and are not and shall not be deemed to be a pledge of the full faith and credit of the state, or of any political subdivision of the state, but shall be payable solely from the funds and revenues pledged therefor under the issuing instrument. All the revenue bonds shall contain on their face a statement to the effect that the State of California is not and shall not be obligated to pay the principal, or the interest on the revenue bonds, except from the funds and revenues pledged therefor under the issuing instrument, and that neither the faith and credit nor the taxing power of the State of California or of any of its political subdivisions is pledged or shall be pledged to the payment of the principal or interest on the revenue bonds. The issuance of revenue bonds in accordance with this chapter shall not directly or indirectly or contingently obligate the state, or any political subdivision of the state, to levy or to pledge any form of taxation whatsoever or to make any appropriation for their payment from the General Fund of the state.14474.10. Any bonds issued in accordance with this chapter, their transfer, and income therefrom shall at all times be free from taxation of every kind by the state and by all political subdivisions of the state.14474.11. The Legislature finds and declares that the expenditure of bond funds pursuant to this chapter does not constitute the use of bond proceeds or other indebtedness to pay a year-end state budget deficit, as prohibited by subdivision (c) of Section 1.3 of Article XVI of the California Constitution.14474.12. The state hereby covenants with the holders from time to time of any revenue bonds issued pursuant to this chapter, and with those parties who may enter into ancillary obligations pursuant to this chapter, that it will not alter, amend, or restrict the provisions of this section, Section 14474.4, Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code, and Sections 2031 and 2032 of the Streets and Highways Code in any manner that would materially adversely impair the interests of those bondholders or parties for so long as any revenue bonds or ancillary obligations remain outstanding. The committee may include this covenant in the issuing instrument.14474.13. An action to determine the validity of any revenue bond authorized to be issued pursuant to this chapter, and any ancillary obligations or other contracts related to those bonds, may be brought in accordance with Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. For the purposes of Section 860 of the Code of Civil Procedure, any action initiated pursuant to this section shall be brought in the Superior Court of the County of Sacramento.14474.14. This article provides a complete, additional, and alternative method for performing the acts authorized by this article and shall be construed as supplemental and additional to powers conferred by other laws; provided, however, that the issuance of the revenue bonds and refunding bonds and the execution of any agreements under this article are not subject to, and need not comply with, the requirements of any other law applicable to the issuance of those revenue bonds or refunding bonds and the execution of those agreements, including, but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).SEC. 2. Section 2031 of the Streets and Highways Code is amended to read:2031. (a) The following revenues shall be deposited in the Road Maintenance and Rehabilitation Account, which is hereby created in the State Transportation Fund:(1) 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.(2) The revenues from the portion of the transportation improvement fee pursuant to subdivision (c) of Section 11053 of the Revenue and Taxation Code.(3) 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.(4) 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.(5) Any other revenues designated for the program.(b) The revenues described in paragraph (2) of subdivision (a) shall be transferred to the Transportation Improvement Fee Subaccount, which is hereby created in the Road Maintenance and Rehabilitation Account.SEC. 3. Section 2032 of the Streets and Highways Code is amended to read:2032. (a) (1) After deducting the amounts appropriated in the annual Budget Act, as provided in Section 2031.5, two hundred million dollars ($200,000,000) of the remaining revenues deposited in the Road Maintenance and Rehabilitation Account shall be set aside annually for local or regional transportation agencies that have sought and received voter approval of taxes or that have imposed fees, including uniform developer fees as defined by subdivision (b) of Section 8879.67 of the Government Code, which taxes or fees are dedicated solely to transportation improvements. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, the Controller shall set aside one-eighth of this amount, to accumulate a total of two hundred million dollars ($200,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(2) Eligible projects under this subdivision include, but are not limited to, sound walls for a freeway that was built before 1987 without sound walls and with or without high-occupancy vehicle lanes if the completion of the sound walls has been deferred due to lack of available funding for at least 20 years and a noise barrier scope summary report has been completed within the last 20 years.(3) Notwithstanding Section 13340 of the Government Code, the funds available under this subdivision in each fiscal year are hereby continuously appropriated for allocation by the commission for road maintenance and rehabilitation and other transportation improvement projects pursuant to Section 2033.(b) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amount allocated in subdivision (a), beginning in the 201718 fiscal year, one hundred million dollars ($100,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, on the Active Transportation Program established pursuant to Chapter 8 (commencing with Section 2380) to be allocated by the California Transportation Commission pursuant to Section 2381. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of one hundred million dollars ($100,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(c) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) and (b), beginning in the 201718 fiscal year, four hundred million dollars ($400,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for bridge and culvert maintenance and rehabilitation. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of four hundred million dollars ($400,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(d) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (c), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be transferred annually to the State Highway Account for expenditure, upon appropriation by the Legislature, to supplement the freeway service patrol program. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(e) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (d), inclusive, in the 201718 to 202122 fiscal years, inclusive, from revenues in the Road Maintenance and Rehabilitation Account that are not subject to Article XIX of the California Constitution, five million dollars ($5,000,000) shall be appropriated in each fiscal year to the California Workforce Development Board to assist local agencies to implement policies to promote preapprenticeship training programs to carry out the projects that are funded by the account pursuant to Section 2038. Funds appropriated pursuant to this subdivision in the Budget Act but remaining unexpended at the end of each applicable fiscal year shall be reappropriated for the same purposes in the following years Budget Act, but all funds appropriated or reappropriated pursuant to this subdivision in the Budget Act shall be liquidated no later than June 30, 2027.(f) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (e), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for local planning grants, as described in Section 2033.5. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(g) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (f), inclusive, beginning in the 201718 fiscal year and each fiscal year thereafter, from the remaining revenues, five million dollars ($5,000,000) shall be available, upon appropriation, to the University of California for the purpose of conducting transportation research and two million dollars ($2,000,000) shall be available, upon appropriation, to the California State University for purposes of conducting transportation research and transportation-related workforce education, training, and development. Before the start of each fiscal year, the Secretary of Transportation and the chairs of the Assembly Committee on Transportation and the Senate Committee on Transportation and Housing may set out a recommended priority list of research components to be addressed in the upcoming fiscal year.(h) Notwithstanding Section 13340 of the Government Code, the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount are hereby continuously appropriated as follows and as provided in subdivision (i):(1) Fifty percent for allocation to the department for maintenance of the state highway system or for purposes of the State Highway Operation and Protection Program.(2) Fifty percent for apportionment to cities and counties by the Controller pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103 for the purposes authorized by this chapter.(i) (1) (A) This paragraph shall apply to how the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the revenues remaining in the Transportation Improvement Fee Subaccount after any adjustments made pursuant to paragraph (2) are used to fund the 50-percent allocation to the department in paragraph (1) of subdivision (h) and the 50-percent apportionment to cities and counties in paragraph (2) of subdivision (h). Nothing in this subdivision or in Section 14474.1 of the Government Code shall reduce, modify, or otherwise impact the continuous appropriation of the 50-percent allocation of the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount to cities and counties pursuant to paragraph (2) of subdivision (h).(B) The revenues in the Transportation Improvement Fee Subaccount specified in subdivision (h) shall be used first to fund the allocation specified in paragraph (1) of subdivision (h). The revenues from the Transportation Improvement Fee Subaccount used to fund the allocation specified in paragraph (1) of subdivision (h) shall be deposited into the State Highway and SHOPP TIF Account, which is hereby created in the State Transportation Fund.(C) If the revenues in the Transportation Improvement Fee Subaccount do not fully satisfy the allocation specified in paragraph (1) of subdivision (h), the revenues in the Road Maintenance and Rehabilitation Account shall be used to fund the remaining portion of the allocation specified in paragraph (1) of subdivision (h).(D) The revenues in the Road Maintenance and Rehabilitation Account and any revenues in the Transportation Improvement Fee Subaccount that remain after the allocation specified in paragraph (1) of subdivision (h) shall be used to fund the allocation specified in paragraph (2) of subdivision (h).(2) (A) Except as provided in subparagraphs (B) and (C), revenues in the Transportation Improvement Fee Subaccount shall not be used to satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive.(B) If there are insufficient revenues in the Road Maintenance and Rehabilitation Account to fully satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive, revenues in the Transportation Improvement Fee Subaccount shall be used to satisfy the remaining portion of those deductions that are not satisfied by the revenues in the Road Maintenance and Rehabilitation Account.(C) Revenues in the Transportation Improvement Fee Subaccount may, upon appropriation by the Legislature, be used to satisfy the allocation set forth in subdivision (e). |
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| 1 | + | Amended IN Assembly August 25, 2020 Amended IN Assembly August 24, 2020 Amended IN Assembly August 06, 2020 Amended IN Assembly July 27, 2020 Amended IN Senate March 25, 2020 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 1351Introduced by Senator Beall(Principal coauthor: Assembly Member Frazier)February 21, 2020An act to add Chapter 6 (commencing with Section 14470) to Part 5 of Division 3 of Title 2 of the Government Code, and to amend Sections 2031 and 2032 of the Streets and Highways Code, relating to transportation, and making an appropriation therefor.LEGISLATIVE COUNSEL'S DIGESTSB 1351, as amended, Beall. Transportation improvement fee: revenue bonds.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 revenues for the program in the Road Maintenance and Rehabilitation Account, including specified portions of revenues from certain fuel excise taxes, a road improvement fee imposed on certain zero-emission vehicles, and the transportation improvement fee. Existing law imposes the transportation improvement fee under the Vehicle License Fee Law with a varying fee between $25 and $175 based on vehicle value and an inflation adjustment, and requires the fee to be collected at the same time and in the same manner as the vehicle registration fee. Existing law requires revenues in the Road Maintenance and Rehabilitation Account to be annually allocated by first making specified deductions for various specified purposes and then continuously appropriating the remaining revenues in the account 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 create the Transportation Improvement Fee Subaccount in the Road Maintenance and Rehabilitation Account and would transfer the revenues from the transportation improvement fee that are deposited in the Road Maintenance and Rehabilitation Account to the subaccount. The bill would continuously appropriate the revenues in the subaccount to the department and cities and counties as part of the same appropriation made to those entities from the Road Maintenance and Rehabilitation Account. The bill would prohibit the revenues in the subaccount from being used to satisfy the above-described deductions from the Road Maintenance and Rehabilitation Account, except under specified circumstances. The bill would require the revenues in the subaccount to be used first to satisfy the 50% allocation to the department and would require those revenues to be deposited in the State Highway and SHOPP TIF Account, which the bill would create in the State Transportation Fund.This bill would continuously appropriate the amounts deposited in the State Highway and SHOPP TIF Account and pledged by the Transportation Improvement Fee Finance Committee, as specified below, to the Treasurer for the purposes of issuing revenue bonds, as specified, and the amounts that have not been pledged by the committee would be continuously appropriated to the department for the purposes of the maintenance of the state highway system or the State Highway Operation and Protection Program, subject to the terms of the issuing instrument for any outstanding revenue bonds.This bill would create the Transportation Improvement Fee Finance Committee, consisting of specified state officers, solely for the purpose of authorizing the issuance and sale of the above-described revenue bonds and the execution and delivery of ancillary obligations, and executing and entering into an issuing instrument. The bill would authorize the committee, in order to provide security for the revenue bonds and ancillary obligations, to include provisions in an issuing instrument pledging the interests of the state in the State Highway and SHOPP TIF Account to the payment of the revenue bonds and the payment of ancillary obligations.This bill would authorize the department to designate projects to be funded from the proceeds of revenue bonds that are included in the State Highway Operation and Protection Program adopted by the California Transportation Commission on May 13, 2020, and that have completed environmental clearance and project design. The bill would authorize the department to request the committee to authorize the issuance of revenue bonds to provide funds for the designated projects.This bill would permit the committee to authorize the Treasurer to sell the revenue bonds at public or private sale and to do all things necessary or convenient to carry out the powers and purposes of these provisions. The bill would authorize revenue bonds to be issued on a tax-exempt or taxable basis in a principal amount not to exceed $5,000,000,000, excluding refunding bonds and excluding any net original issuance premium derived from the sale of the bonds. The bill would create the State TIF Revenue Bond Fund in the State Treasury and would require the net proceeds derived from the issuance of revenue bonds to be deposited in the fund. The bill would continuously appropriate the moneys in the fund to the department and the Treasurer to finance or refinance projects designated by the department and to fund necessary reserves for principal and interest, capitalized interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the revenue bonds.This bill would provide that the revenue bonds may not be deemed to constitute a debt or liability of the state or any political subdivision of the state, or a pledge of the full faith and credit of the state or any political subdivision of the state, but shall be paid solely from the funds and revenues pledged for that purpose.This bill would provide that the state covenants with the holders of these revenue bonds, and with those parties who may enter into ancillary obligations, that it will not alter, amend, or restrict the specified provisions of law, including provisions creating the transportation improvement fee, in any manner that would materially adversely impair the interests of those bondholders or parties.Digest Key Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Chapter 6 (commencing with Section 14470) is added to Part 5 of Division 3 of Title 2 of the Government Code, to read: CHAPTER 6. Transportation Improvement Fee Revenue Bonds Article 1. Legislative Findings and Declarations14470. The Legislature hereby finds and declares all of the following:(a) Upon the passage of Senate Bill 1 of the 201718 Regular Session (Senate Bill 1), it was found, at that time, that the state faced a fifty-nine-billion-dollar ($59,000,000,000) shortfall over a 10-year period to adequately maintain the existing state highway system in order to keep the system in a basic state of good repair.(b) Additionally, upon the passage of Senate Bill 1, it was further found that California motorists were spending seventeen billion dollars ($17,000,000,000) annually in extra maintenance and car repair bills, which is more than seven hundred dollars ($700) per driver, due to the states poorly maintained roads.(c) Improving the condition of the states road system will have a positive impact on the economy as it lowers the transportation costs of doing business, reduces congestion impacts for employees, and protects property values in the state.(d) The federal government estimates that increased spending on infrastructure creates more than 13,000 jobs per one billion dollars ($1,000,000,000) spent.(e) Well-maintained roads benefit all users, not just drivers, as roads are used for all modes of transport, whether motor vehicles, transit, bicycles, or pedestrians.(f) Well-maintained roads additionally provide significant health benefits and prevent injuries and death due to crashes caused by poorly maintained infrastructure.(g) With the enactment of Senate Bill 1, otherwise known as the Road Repair and Accountability Act of 2017, the Legislature created a comprehensive funding package to address improvements to Californias transportation system.(h) One of the revenue sources created under the Road Repair and Accountability Act of 2017 was a new transportation improvement fee imposed under the Vehicle License Fee Law.(i) The new transportation improvement fee may only be used for transportation purposes pursuant to subdivision (d) of Section 11051 of the Revenue and Taxation Code and Section 1 of Article XIX D of the California Constitution.(j) A portion of the proceeds of the new transportation improvement fee are deposited into the Road Maintenance and Rehabilitation Account in the State Transportation Fund for use on deferred maintenance and road rehabilitation projects on the state highway system.(k) Using revenue bonds of the State of California to finance eligible state highway system transportation projects can greatly accelerate projects and can result in significant cost savings to the state, since those transportation projects can be completed at present-day costs.(l) Funding transportation projects with revenue bonds can also deliver projects to the public significantly sooner than traditional funding mechanisms.(m) Furthermore, accelerating transportation projects with revenue bonds will result in the timely creation of well-paid jobs and stimulate the states economy, which is currently experiencing a significant downturn as a result of the COVID-19 pandemic.(n) Therefore, it is in the best interest of the state to develop these new and innovative methods for funding and accelerating critical transportation projects. Article 2. Definitions14471. Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.14471.1. (a) Ancillary obligation means an obligation of the state entered into in connection with any revenue bonds issued in accordance with this chapter, including the following:(1) A credit enhancement or liquidity agreement, including any credit enhancement or liquidity agreement in the form of bond insurance, letter of credit, standby bond purchase agreement, reimbursement agreement, liquidity facility, surety bond, or other similar arrangement.(2) A remarketing agreement.(3) A broker-dealer agreement or other agreement relating to the marketing of the revenue bonds.(4) An interest rate or other type of swap or hedging contract.(5) An investment agreement, forward purchase agreement, or similar structured investment contract.(b) Committee means the Transportation Improvement Fee Finance Committee created pursuant to Section 14473.(c) Designated project means a project that has been designated for accelerated construction by the department in accordance with this chapter.(d) Issuing Instrument means any resolution, trust agreement, indenture, certificate, or other instrument authorizing the issuance of revenue bonds in accordance with this chapter and providing for their security and repayment.(e) Revenue bonds or bonds means revenue bonds of the state issued in accordance with this chapter.(f) State Highway and SHOPP TIF Account means the account created pursuant to subparagraph (A) of paragraph (1) of subdivision (i) of Section 2032 of the Streets and Highways Code.(g) Transportation improvement fee means the transportation improvement fee imposed pursuant to Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code.(h) Trustee means the Treasurer and, at the option of the Treasurer, any cotrustee which is a national bank, bank or trust company within or without the state, acting as trustee or cotrustee for any issue of revenue bonds in accordance with this chapter and, if there is more than one issue of bonds, the term means the trustee for each issue of bonds, respectively. If there are cotrustees for an issue of bonds, trustee means those cotrustees collectively. Article 3. Selection of Projects14472. (a) The department maydesignate may designate projects to be funded from the proceeds of revenue bonds that are included in the State Highway Operation and Protection Program prepared pursuant to Section 14526.5 and adopted on May 13, 2020, and that have completed environmental clearance and project design.(b) When the department anticipates the issuance of new revenue bonds and, in conjunction with the commission, makes a written request in that regard, the department, in conjunction with the Treasurers office, shall prepare an analysis of the bonding capacity of transportation improvement fee revenues deposited in the State Highway and SHOPP TIF Account and expected to be available to fund designated projects. The bonding capacity determined pursuant to this subdivision shall not impact, reduce, or otherwise modify the allocation of revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount and continuously appropriated pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code.14472.1. (a) Upon taking the actions authorized under this article, the department may request the committee to authorize the issuance of revenue bonds to provide funds for the designated projects.(b) On or before April 1 of each year, the department shall prepare and submit an annual report regarding the preceding calendar year to the Governor and the Legislature. Each report shall compile and detail the total amount of outstanding debt issued pursuant to this chapter and the projects funded by that outstanding debt. A report to be submitted to the Legislature pursuant to this subdivision shall be submitted in compliance with Section 9795.14472.2. On or before October 1 of each year, the department shall report to the Governor, the Department of Finance, the Legislative Analysts Office, and the chairs of the transportation committees in the Assembly and Senate on the amount of revenue bonds that the department intends to request that the committee issue for the subsequent fiscal year.14472.3. Within 90 days of the effective date of this chapter, the department shall submit a list of projects to the Treasurer and the committee that are eligible to be designated pursuant to Section 14472. Article 4. Creation of the Transportation Improvement Fee Finance Committee14473. (a) The committee is hereby created solely for the purpose of authorizing the issuance and sale of the bonds and the execution and delivery of ancillary obligations authorized by this chapter, and executing and entering into an issuing instrument.(b) The committee shall consist of the Treasurer, the Controller, and the Director of Finance, or their designated representatives.(c) The Treasurer shall serve as chairperson of the committee.(d) A majority of the committee may act for the committee.(e) The Attorney General shall be the legal counsel for the committee. With the approval of the Attorney General, the committee may employ any legal counsel that in its judgment is necessary or advisable to enable it to carry out its duties and functions, including, but not limited to, the employment of any bond counsel deemed advisable in connection with the issuance and sale of revenue bonds.(f) A member, officer, or agent of the committee shall not be subject to personal liability on any revenue bonds or ancillary obligations issued or entered into in accordance with this chapter or for any acts or omissions of members, officers, or agents in carrying out the powers and duties conferred by this chapter.(g) The members of the committee shall serve without compensation. Article 5. Issuance of Revenue Bonds14474. (a) Revenue bonds may be issued in accordance with this chapter on a tax-exempt or taxable basis in a principal amount not to exceed five billion dollars ($5,000,000,000), excluding refunding bonds and excluding any net original issuance premium derived from the sale of the bonds, to finance or refinance designated projects and to fund necessary reserves for principal and interest, capitalized interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the revenue bonds.(b) The State TIF Revenue Bond Fund is hereby created within the State Treasury and, notwithstanding Section 13340 or any other law, continuously appropriated, without regard to fiscal years, to the department and the Treasurer for the purposes of, and in accordance with, this chapter. Accounts and subaccounts may be created within the fund as needed.(c) There shall be paid into the State TIF Revenue Bond Fund the net proceeds derived from the issuance of revenue bonds in accordance with this chapter.(d) Moneys in the State TIF Revenue Bond Fund may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.1. In order to provide security for repayment of the revenue bonds and ancillary obligations, the committee may include in an issuing instrument provisions pledging all or a portion of the interests of the state in the State Highway and SHOPP TIF Account and any moneys in that account and any accounts established under the issuing instrument and the moneys on deposit in those accounts designated by the committee to the payment of principal of, and interest and premium on, the revenue bonds and the payment of ancillary obligations, for as long as any revenue bonds or ancillary obligations remain outstanding. The committee shall not pledge any portion of the allocation of revenues pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code or, in any other way, impact, modify, or reduce that allocation. The pledge shall be governed by Chapter 5.5 (commencing with Section 5450) of Division 6 of Title 1. The pledge described in this section shall constitute a pledge of collateral within the meaning of subdivision (b) of Section 5450. The issuing instrument shall constitute a pledge document for purposes of Section 5451, as defined in Section 5450.14474.2. Revenue bonds may be issued from time to time pursuant to an issuing instrument, including an issuing instrument entered into between the committee and a trustee. The issuing instrument may contain any of the following provisions, which shall be a part of the contract with the holders of the revenue bonds to be authorized:(a) Provisions of the type described in Section 14474.1.(b) Provisions for classes of revenue bonds having different priority in the receipt of available transportation improvement fee revenues.(c) Provisions for the investment of proceeds of the revenue bonds or of the moneys received for repayment of the revenue bonds.(d) Provisions setting aside reserves or sinking funds, and the regulation and disposition thereof.(e) Limitations on the issuance of additional revenue bonds, the terms upon which additional revenue bonds may be issued and secured, and the refunding of outstanding revenue bonds.(f) The procedure, if any, by which the terms of any contract with revenue bondholders may be amended or abrogated, the amount of revenue bonds and the holders thereof that are required to give consent thereto, and the manner in which the consent may be given.(g) Definitions of acts or omissions to act that constitute a default in the duties of the state to holders of the revenue bonds, and provisions on the rights and remedies of the holders in the event of a default.14474.3. The revenue bonds shall be authorized by resolution or resolutions of the committee, shall be in the form, shall bear the date or dates, and shall mature at the time or times, as the issuing instrument may provide, except that no revenue bond may mature more than 40 years from the date of its issue. The revenue bonds shall bear interest at fixed or variable rate or rates, be in the denominations, be in the form, be executed in the manner, be payable in the medium of payment at the place or places within or without the state, be subject to the terms of redemption and tender for purchase and contain the terms and conditions, that the issuing instrument may provide. The committee may authorize the Treasurer, upon those terms and conditions that may be fixed by the committee or determined by the Treasurer, to sell the revenue bonds at public or private sale at, above, or below the par value. The committee may authorize the Treasurer to do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.4. (a) Notwithstanding Section 13340 or any other law, the amounts deposited in the State Highway and SHOPP TIF Account and pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the Treasurer, as trustee or cotrustee under the issuing instrument, for the purposes of, and in accordance with, this chapter, and the amounts deposited in the State Highway and SHOPP TIF Account that have not been pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the department, for the purposes of, and in accordance with paragraph (1) of subdivision (h) of Section 2032 of the Streets and Highways Code, subject to the terms of the issuing instrument for any outstanding revenue bonds.(b) Moneys in the State Highway and SHOPP TIF Account may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.5. (a) The committee may provide for the issuance and sale of refunding revenue bonds to refund any outstanding revenue bonds, and to fund necessary reserves for principal and interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the refunding revenue bonds.(b) The proceeds of any revenue bonds issued for the purpose of refunding of outstanding bonds may, at the discretion of the committee, be applied to the purchase or redemption before maturity or retirement at maturity of the outstanding bonds on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof, or paid to a third person to assume the obligation to make those payments, and may, pending that application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on any date or dates as may be determined by the committee.14474.6. Whenever the committee deems that it will increase the salability or the price of the revenue bonds to obtain, before or after sale, a legal opinion, other than that of the Attorney General, as to the validity or tax-exempt nature of the revenue bonds, the committee may obtain that legal opinion. Payment for those legal services shall be made from the proceeds of the sale of the revenue bonds.14474.7. (a) The Treasurer may employ financial, engineering, or transportation consultants or advisers, underwriters, and accountants as may be necessary in the Treasurers judgment in connection with the issuance and sale of any revenue bonds. Payment for these services may be made out of the proceeds of the sale of the revenue bonds.(b) The Treasurer may do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.8. Revenue bonds issued under this chapter are a legal investment for any state special or trust fund notwithstanding any law limiting the investments that may be made by the special or trust fund. The revenue bonds shall be legal investments in which all public officers and public bodies of the state, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings and loan associations, savings banks and savings associations, and investment companies, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons authorized to invest in revenue bonds or in other obligations of the state, may properly and legally invest funds, including capital, in their control or belonging to them. The revenue bonds may be used as security for public deposits. The revenue bonds are also securities that may properly and legally be deposited with and received by all public officers and bodies of state or any agency or political subdivision of the state and all municipalities and public corporations for any purpose for which the deposit of revenue bonds or other obligations of the state is authorized by law, including deposits to secured public funds.14474.9. Notwithstanding any other law, revenue bonds issued in accordance with this chapter are not and shall not be deemed to constitute a debt or liability of the state, or of any political subdivision of the state, and are not and shall not be deemed to be a pledge of the full faith and credit of the state, or of any political subdivision of the state, but shall be payable solely from the funds and revenues pledged therefor under the issuing instrument. All the revenue bonds shall contain on their face a statement to the effect that the State of California is not and shall not be obligated to pay the principal, or the interest on the revenue bonds, except from the funds and revenues pledged therefor under the issuing instrument, and that neither the faith and credit nor the taxing power of the State of California or of any of its political subdivisions is pledged or shall be pledged to the payment of the principal or interest on the revenue bonds. The issuance of revenue bonds in accordance with this chapter shall not directly or indirectly or contingently obligate the state, or any political subdivision of the state, to levy or to pledge any form of taxation whatsoever or to make any appropriation for their payment from the General Fund of the state.14474.10. Any bonds issued in accordance with this chapter, their transfer, and income therefrom shall at all times be free from taxation of every kind by the state and by all political subdivisions of the state.14474.11. The Legislature finds and declares that the expenditure of bond funds pursuant to this chapter does not constitute the use of bond proceeds or other indebtedness to pay a year-end state budget deficit, as prohibited by subdivision (c) of Section 1.3 of Article XVI of the California Constitution.14474.12. The state hereby covenants with the holders from time to time of any revenue bonds issued pursuant to this chapter, and with those parties who may enter into ancillary obligations pursuant to this chapter, that it will not alter, amend, or restrict the provisions of this section, Section 14474.4, Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code, and Sections 2031 and 2032 of the Streets and Highways Code in any manner that would materially adversely impair the interests of those bondholders or parties for so long as any revenue bonds or ancillary obligations remain outstanding. The committee may include this covenant in the issuing instrument.14474.13. An action to determine the validity of any revenue bond authorized to be issued pursuant to this chapter, and any ancillary obligations or other contracts related to those bonds, may be brought in accordance with Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. For the purposes of Section 860 of the Code of Civil Procedure, any action initiated pursuant to this section shall be brought in the Superior Court of the County of Sacramento.14474.14. This article provides a complete, additional, and alternative method for performing the acts authorized by this article and shall be construed as supplemental and additional to powers conferred by other laws; provided, however, that the issuance of the revenue bonds and refunding bonds and the execution of any agreements under this article are not subject to, and need not comply with, the requirements of any other law applicable to the issuance of those revenue bonds or refunding bonds and the execution of those agreements, including, but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).SEC. 2. Section 2031 of the Streets and Highways Code is amended to read:2031. (a) The following revenues shall be deposited in the Road Maintenance and Rehabilitation Account, which is hereby created in the State Transportation Fund:(1) 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.(2) The revenues from the portion of the transportation improvement fee pursuant to subdivision (c) of Section 11053 of the Revenue and Taxation Code.(3) 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.(4) 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.(5) Any other revenues designated for the program.(b) The revenues described in paragraph (2) of subdivision (a) shall be transferred to the Transportation Improvement Fee Subaccount, which is hereby created in the Road Maintenance and Rehabilitation Account.SEC. 3. Section 2032 of the Streets and Highways Code is amended to read:2032. (a) (1) After deducting the amounts appropriated in the annual Budget Act, as provided in Section 2031.5, two hundred million dollars ($200,000,000) of the remaining revenues deposited in the Road Maintenance and Rehabilitation Account shall be set aside annually for local or regional transportation agencies that have sought and received voter approval of taxes or that have imposed fees, including uniform developer fees as defined by subdivision (b) of Section 8879.67 of the Government Code, which taxes or fees are dedicated solely to transportation improvements. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, the Controller shall set aside one-eighth of this amount, to accumulate a total of two hundred million dollars ($200,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(2) Eligible projects under this subdivision include, but are not limited to, sound walls for a freeway that was built before 1987 without sound walls and with or without high-occupancy vehicle lanes if the completion of the sound walls has been deferred due to lack of available funding for at least 20 years and a noise barrier scope summary report has been completed within the last 20 years.(3) Notwithstanding Section 13340 of the Government Code, the funds available under this subdivision in each fiscal year are hereby continuously appropriated for allocation by the commission for road maintenance and rehabilitation and other transportation improvement projects pursuant to Section 2033.(b) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amount allocated in subdivision (a), beginning in the 201718 fiscal year, one hundred million dollars ($100,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, on the Active Transportation Program established pursuant to Chapter 8 (commencing with Section 2380) to be allocated by the California Transportation Commission pursuant to Section 2381. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of one hundred million dollars ($100,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(c) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) and (b), beginning in the 201718 fiscal year, four hundred million dollars ($400,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for bridge and culvert maintenance and rehabilitation. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of four hundred million dollars ($400,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(d) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (c), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be transferred annually to the State Highway Account for expenditure, upon appropriation by the Legislature, to supplement the freeway service patrol program. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(e) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (d), inclusive, in the 201718 to 202122 fiscal years, inclusive, from revenues in the Road Maintenance and Rehabilitation Account that are not subject to Article XIX of the California Constitution, five million dollars ($5,000,000) shall be appropriated in each fiscal year to the California Workforce Development Board to assist local agencies to implement policies to promote preapprenticeship training programs to carry out the projects that are funded by the account pursuant to Section 2038. Funds appropriated pursuant to this subdivision in the Budget Act but remaining unexpended at the end of each applicable fiscal year shall be reappropriated for the same purposes in the following years Budget Act, but all funds appropriated or reappropriated pursuant to this subdivision in the Budget Act shall be liquidated no later than June 30, 2027.(f) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (e), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for local planning grants, as described in Section 2033.5. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(g) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (f), inclusive, beginning in the 201718 fiscal year and each fiscal year thereafter, from the remaining revenues, five million dollars ($5,000,000) shall be available, upon appropriation, to the University of California for the purpose of conducting transportation research and two million dollars ($2,000,000) shall be available, upon appropriation, to the California State University for purposes of conducting transportation research and transportation-related workforce education, training, and development. Before the start of each fiscal year, the Secretary of Transportation and the chairs of the Assembly Committee on Transportation and the Senate Committee on Transportation and Housing may set out a recommended priority list of research components to be addressed in the upcoming fiscal year.(h) Notwithstanding Section 13340 of the Government Code, the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount are hereby continuously appropriated as follows and as provided in subdivision (i):(1) Fifty percent for allocation to the department for maintenance of the state highway system or for purposes of the State Highway Operation and Protection Program.(2) Fifty percent for apportionment to cities and counties by the Controller pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103 for the purposes authorized by this chapter.(i) (1) (A) This subdivision paragraph shall apply to how the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the revenues remaining in the Transportation Improvement Fee Subaccount after any adjustments made pursuant to paragraph (2) are used to fund the 50-percent allocation to the department in paragraph (1) of subdivision (h) and the 50-percent apportionment to cities and counties in paragraph (2) of subdivision (h). Nothing in this subdivision or in Section 14474.1 of the Government Code shall reduce, modify, or otherwise impact the continuous appropriation of the 50-percent allocation of the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount to cities and counties pursuant to paragraph (2) of subdivision (h).(B) The revenues in the Transportation Improvement Fee Subaccount specified in subdivision (h) shall be used first to fund the allocation specified in paragraph (1) of subdivision (h). The revenues from the Transportation Improvement Fee Subaccount used to fund the allocation specified in paragraph (1) of subdivision (h) shall be deposited into the State Highway and SHOPP TIF Account, which is hereby created in the State Transportation Fund.(C) If the revenues in the Transportation Improvement Fee Subaccount do not fully satisfy the allocation specified in paragraph (1) of subdivision (h), the revenues in the Road Maintenance and Rehabilitation Account shall be used to fund the remaining portion of the allocation specified in paragraph (1) of subdivision (h).(D) The revenues in the Road Maintenance and Rehabilitation Account and any revenues in the Transportation Improvement Fee Subaccount that remain after the allocation specified in paragraph (1) of subdivision (h) shall be used to fund the allocation specified in paragraph (2) of subdivision (h).(2) (A) Except as provided in subparagraphs (B) and (C), revenues in the Transportation Improvement Fee Subaccount shall not be used to satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive.(B) If there are insufficient revenues in the Road Maintenance and Rehabilitation Account to fully satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive, revenues in the Transportation Improvement Fee Subaccount shall be used to satisfy the remaining portion of those deductions that are not satisfied by the revenues in the Road Maintenance and Rehabilitation Account.(C) Revenues in the Transportation Improvement Fee Subaccount shall may, upon appropriation by the Legislature, be used to satisfy the allocation set forth in subdivision (e). |
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| 57 | | - | The people of the State of California do enact as follows:SECTION 1. Chapter 6 (commencing with Section 14470) is added to Part 5 of Division 3 of Title 2 of the Government Code, to read: CHAPTER 6. Transportation Improvement Fee Revenue Bonds Article 1. Legislative Findings and Declarations14470. The Legislature hereby finds and declares all of the following:(a) Upon the passage of Senate Bill 1 of the 201718 Regular Session (Senate Bill 1), it was found, at that time, that the state faced a fifty-nine-billion-dollar ($59,000,000,000) shortfall over a 10-year period to adequately maintain the existing state highway system in order to keep the system in a basic state of good repair.(b) Additionally, upon the passage of Senate Bill 1, it was further found that California motorists were spending seventeen billion dollars ($17,000,000,000) annually in extra maintenance and car repair bills, which is more than seven hundred dollars ($700) per driver, due to the states poorly maintained roads.(c) Improving the condition of the states road system will have a positive impact on the economy as it lowers the transportation costs of doing business, reduces congestion impacts for employees, and protects property values in the state.(d) The federal government estimates that increased spending on infrastructure creates more than 13,000 jobs per one billion dollars ($1,000,000,000) spent.(e) Well-maintained roads benefit all users, not just drivers, as roads are used for all modes of transport, whether motor vehicles, transit, bicycles, or pedestrians.(f) Well-maintained roads additionally provide significant health benefits and prevent injuries and death due to crashes caused by poorly maintained infrastructure.(g) With the enactment of Senate Bill 1, otherwise known as the Road Repair and Accountability Act of 2017, the Legislature created a comprehensive funding package to address improvements to Californias transportation system.(h) One of the revenue sources created under the Road Repair and Accountability Act of 2017 was a new transportation improvement fee imposed under the Vehicle License Fee Law.(i) The new transportation improvement fee may only be used for transportation purposes pursuant to subdivision (d) of Section 11051 of the Revenue and Taxation Code and Section 1 of Article XIX D of the California Constitution.(j) A portion of the proceeds of the new transportation improvement fee are deposited into the Road Maintenance and Rehabilitation Account in the State Transportation Fund for use on deferred maintenance and road rehabilitation projects on the state highway system.(k) Using revenue bonds of the State of California to finance eligible state highway system transportation projects can greatly accelerate projects and can result in significant cost savings to the state, since those transportation projects can be completed at present-day costs.(l) Funding transportation projects with revenue bonds can also deliver projects to the public significantly sooner than traditional funding mechanisms.(m) Furthermore, accelerating transportation projects with revenue bonds will result in the timely creation of well-paid jobs and stimulate the states economy, which is currently experiencing a significant downturn as a result of the COVID-19 pandemic.(n) Therefore, it is in the best interest of the state to develop these new and innovative methods for funding and accelerating critical transportation projects. Article 2. Definitions14471. Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.14471.1. (a) Ancillary obligation means an obligation of the state entered into in connection with any revenue bonds issued in accordance with this chapter, including the following:(1) A credit enhancement or liquidity agreement, including any credit enhancement or liquidity agreement in the form of bond insurance, letter of credit, standby bond purchase agreement, reimbursement agreement, liquidity facility, surety bond, or other similar arrangement.(2) A remarketing agreement.(3) A broker-dealer agreement or other agreement relating to the marketing of the revenue bonds.(4) An interest rate or other type of swap or hedging contract.(5) An investment agreement, forward purchase agreement, or similar structured investment contract.(b) Committee means the Transportation Improvement Fee Finance Committee created pursuant to Section 14473.(c) Designated project means a project that has been designated for accelerated construction by the department in accordance with this chapter.(d) Issuing Instrument means any resolution, trust agreement, indenture, certificate, or other instrument authorizing the issuance of revenue bonds in accordance with this chapter and providing for their security and repayment.(e) Revenue bonds or bonds means revenue bonds of the state issued in accordance with this chapter.(f) State Highway and SHOPP TIF Account means the account created pursuant to subparagraph (A) of paragraph (1) of subdivision (i) of Section 2032 of the Streets and Highways Code.(g) Transportation improvement fee means the transportation improvement fee imposed pursuant to Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code.(h) Trustee means the Treasurer and, at the option of the Treasurer, any cotrustee which is a national bank, bank or trust company within or without the state, acting as trustee or cotrustee for any issue of revenue bonds in accordance with this chapter and, if there is more than one issue of bonds, the term means the trustee for each issue of bonds, respectively. If there are cotrustees for an issue of bonds, trustee means those cotrustees collectively. Article 3. Selection of Projects14472. (a) The department may designate projects to be funded from the proceeds of revenue bonds that are included in the State Highway Operation and Protection Program prepared pursuant to Section 14526.5 and adopted on May 13, 2020, and that have completed environmental clearance and project design.(b) When the department anticipates the issuance of new revenue bonds and, in conjunction with the commission, makes a written request in that regard, the department, in conjunction with the Treasurers office, shall prepare an analysis of the bonding capacity of transportation improvement fee revenues deposited in the State Highway and SHOPP TIF Account and expected to be available to fund designated projects. The bonding capacity determined pursuant to this subdivision shall not impact, reduce, or otherwise modify the allocation of revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount and continuously appropriated pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code.14472.1. (a) Upon taking the actions authorized under this article, the department may request the committee to authorize the issuance of revenue bonds to provide funds for the designated projects.(b) On or before April 1 of each year, the department shall prepare and submit an annual report regarding the preceding calendar year to the Governor and the Legislature. Each report shall compile and detail the total amount of outstanding debt issued pursuant to this chapter and the projects funded by that outstanding debt. A report to be submitted to the Legislature pursuant to this subdivision shall be submitted in compliance with Section 9795.14472.2. On or before October 1 of each year, the department shall report to the Governor, the Department of Finance, the Legislative Analysts Office, and the chairs of the transportation committees in the Assembly and Senate on the amount of revenue bonds that the department intends to request that the committee issue for the subsequent fiscal year.14472.3. Within 90 days of the effective date of this chapter, the department shall submit a list of projects to the Treasurer and the committee that are eligible to be designated pursuant to Section 14472. Article 4. Creation of the Transportation Improvement Fee Finance Committee14473. (a) The committee is hereby created solely for the purpose of authorizing the issuance and sale of the bonds and the execution and delivery of ancillary obligations authorized by this chapter, and executing and entering into an issuing instrument.(b) The committee shall consist of the Treasurer, the Controller, and the Director of Finance, or their designated representatives.(c) The Treasurer shall serve as chairperson of the committee.(d) A majority of the committee may act for the committee.(e) The Attorney General shall be the legal counsel for the committee. With the approval of the Attorney General, the committee may employ any legal counsel that in its judgment is necessary or advisable to enable it to carry out its duties and functions, including, but not limited to, the employment of any bond counsel deemed advisable in connection with the issuance and sale of revenue bonds.(f) A member, officer, or agent of the committee shall not be subject to personal liability on any revenue bonds or ancillary obligations issued or entered into in accordance with this chapter or for any acts or omissions of members, officers, or agents in carrying out the powers and duties conferred by this chapter.(g) The members of the committee shall serve without compensation. Article 5. Issuance of Revenue Bonds14474. (a) Revenue bonds may be issued in accordance with this chapter on a tax-exempt or taxable basis in a principal amount not to exceed five billion dollars ($5,000,000,000), excluding refunding bonds and excluding any net original issuance premium derived from the sale of the bonds, to finance or refinance designated projects and to fund necessary reserves for principal and interest, capitalized interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the revenue bonds.(b) The State TIF Revenue Bond Fund is hereby created within the State Treasury and, notwithstanding Section 13340 or any other law, continuously appropriated, without regard to fiscal years, to the department and the Treasurer for the purposes of, and in accordance with, this chapter. Accounts and subaccounts may be created within the fund as needed.(c) There shall be paid into the State TIF Revenue Bond Fund the net proceeds derived from the issuance of revenue bonds in accordance with this chapter.(d) Moneys in the State TIF Revenue Bond Fund may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.1. In order to provide security for repayment of the revenue bonds and ancillary obligations, the committee may include in an issuing instrument provisions pledging all or a portion of the interests of the state in the State Highway and SHOPP TIF Account and any moneys in that account and any accounts established under the issuing instrument and the moneys on deposit in those accounts designated by the committee to the payment of principal of, and interest and premium on, the revenue bonds and the payment of ancillary obligations, for as long as any revenue bonds or ancillary obligations remain outstanding. The committee shall not pledge any portion of the allocation of revenues pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code or, in any other way, impact, modify, or reduce that allocation. The pledge shall be governed by Chapter 5.5 (commencing with Section 5450) of Division 6 of Title 1. The pledge described in this section shall constitute a pledge of collateral within the meaning of subdivision (b) of Section 5450. The issuing instrument shall constitute a pledge document for purposes of Section 5451, as defined in Section 5450.14474.2. Revenue bonds may be issued from time to time pursuant to an issuing instrument, including an issuing instrument entered into between the committee and a trustee. The issuing instrument may contain any of the following provisions, which shall be a part of the contract with the holders of the revenue bonds to be authorized:(a) Provisions of the type described in Section 14474.1.(b) Provisions for classes of revenue bonds having different priority in the receipt of available transportation improvement fee revenues.(c) Provisions for the investment of proceeds of the revenue bonds or of the moneys received for repayment of the revenue bonds.(d) Provisions setting aside reserves or sinking funds, and the regulation and disposition thereof.(e) Limitations on the issuance of additional revenue bonds, the terms upon which additional revenue bonds may be issued and secured, and the refunding of outstanding revenue bonds.(f) The procedure, if any, by which the terms of any contract with revenue bondholders may be amended or abrogated, the amount of revenue bonds and the holders thereof that are required to give consent thereto, and the manner in which the consent may be given.(g) Definitions of acts or omissions to act that constitute a default in the duties of the state to holders of the revenue bonds, and provisions on the rights and remedies of the holders in the event of a default.14474.3. The revenue bonds shall be authorized by resolution or resolutions of the committee, shall be in the form, shall bear the date or dates, and shall mature at the time or times, as the issuing instrument may provide, except that no revenue bond may mature more than 40 years from the date of its issue. The revenue bonds shall bear interest at fixed or variable rate or rates, be in the denominations, be in the form, be executed in the manner, be payable in the medium of payment at the place or places within or without the state, be subject to the terms of redemption and tender for purchase and contain the terms and conditions, that the issuing instrument may provide. The committee may authorize the Treasurer, upon those terms and conditions that may be fixed by the committee or determined by the Treasurer, to sell the revenue bonds at public or private sale at, above, or below the par value. The committee may authorize the Treasurer to do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.4. (a) Notwithstanding Section 13340 or any other law, the amounts deposited in the State Highway and SHOPP TIF Account and pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the Treasurer, as trustee or cotrustee under the issuing instrument, for the purposes of, and in accordance with, this chapter, and the amounts deposited in the State Highway and SHOPP TIF Account that have not been pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the department, for the purposes of, and in accordance with paragraph (1) of subdivision (h) of Section 2032 of the Streets and Highways Code, subject to the terms of the issuing instrument for any outstanding revenue bonds.(b) Moneys in the State Highway and SHOPP TIF Account may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.5. (a) The committee may provide for the issuance and sale of refunding revenue bonds to refund any outstanding revenue bonds, and to fund necessary reserves for principal and interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the refunding revenue bonds.(b) The proceeds of any revenue bonds issued for the purpose of refunding of outstanding bonds may, at the discretion of the committee, be applied to the purchase or redemption before maturity or retirement at maturity of the outstanding bonds on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof, or paid to a third person to assume the obligation to make those payments, and may, pending that application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on any date or dates as may be determined by the committee.14474.6. Whenever the committee deems that it will increase the salability or the price of the revenue bonds to obtain, before or after sale, a legal opinion, other than that of the Attorney General, as to the validity or tax-exempt nature of the revenue bonds, the committee may obtain that legal opinion. Payment for those legal services shall be made from the proceeds of the sale of the revenue bonds.14474.7. (a) The Treasurer may employ financial, engineering, or transportation consultants or advisers, underwriters, and accountants as may be necessary in the Treasurers judgment in connection with the issuance and sale of any revenue bonds. Payment for these services may be made out of the proceeds of the sale of the revenue bonds.(b) The Treasurer may do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.8. Revenue bonds issued under this chapter are a legal investment for any state special or trust fund notwithstanding any law limiting the investments that may be made by the special or trust fund. The revenue bonds shall be legal investments in which all public officers and public bodies of the state, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings and loan associations, savings banks and savings associations, and investment companies, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons authorized to invest in revenue bonds or in other obligations of the state, may properly and legally invest funds, including capital, in their control or belonging to them. The revenue bonds may be used as security for public deposits. The revenue bonds are also securities that may properly and legally be deposited with and received by all public officers and bodies of state or any agency or political subdivision of the state and all municipalities and public corporations for any purpose for which the deposit of revenue bonds or other obligations of the state is authorized by law, including deposits to secured public funds.14474.9. Notwithstanding any other law, revenue bonds issued in accordance with this chapter are not and shall not be deemed to constitute a debt or liability of the state, or of any political subdivision of the state, and are not and shall not be deemed to be a pledge of the full faith and credit of the state, or of any political subdivision of the state, but shall be payable solely from the funds and revenues pledged therefor under the issuing instrument. All the revenue bonds shall contain on their face a statement to the effect that the State of California is not and shall not be obligated to pay the principal, or the interest on the revenue bonds, except from the funds and revenues pledged therefor under the issuing instrument, and that neither the faith and credit nor the taxing power of the State of California or of any of its political subdivisions is pledged or shall be pledged to the payment of the principal or interest on the revenue bonds. The issuance of revenue bonds in accordance with this chapter shall not directly or indirectly or contingently obligate the state, or any political subdivision of the state, to levy or to pledge any form of taxation whatsoever or to make any appropriation for their payment from the General Fund of the state.14474.10. Any bonds issued in accordance with this chapter, their transfer, and income therefrom shall at all times be free from taxation of every kind by the state and by all political subdivisions of the state.14474.11. The Legislature finds and declares that the expenditure of bond funds pursuant to this chapter does not constitute the use of bond proceeds or other indebtedness to pay a year-end state budget deficit, as prohibited by subdivision (c) of Section 1.3 of Article XVI of the California Constitution.14474.12. The state hereby covenants with the holders from time to time of any revenue bonds issued pursuant to this chapter, and with those parties who may enter into ancillary obligations pursuant to this chapter, that it will not alter, amend, or restrict the provisions of this section, Section 14474.4, Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code, and Sections 2031 and 2032 of the Streets and Highways Code in any manner that would materially adversely impair the interests of those bondholders or parties for so long as any revenue bonds or ancillary obligations remain outstanding. The committee may include this covenant in the issuing instrument.14474.13. An action to determine the validity of any revenue bond authorized to be issued pursuant to this chapter, and any ancillary obligations or other contracts related to those bonds, may be brought in accordance with Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. For the purposes of Section 860 of the Code of Civil Procedure, any action initiated pursuant to this section shall be brought in the Superior Court of the County of Sacramento.14474.14. This article provides a complete, additional, and alternative method for performing the acts authorized by this article and shall be construed as supplemental and additional to powers conferred by other laws; provided, however, that the issuance of the revenue bonds and refunding bonds and the execution of any agreements under this article are not subject to, and need not comply with, the requirements of any other law applicable to the issuance of those revenue bonds or refunding bonds and the execution of those agreements, including, but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).SEC. 2. Section 2031 of the Streets and Highways Code is amended to read:2031. (a) The following revenues shall be deposited in the Road Maintenance and Rehabilitation Account, which is hereby created in the State Transportation Fund:(1) 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.(2) The revenues from the portion of the transportation improvement fee pursuant to subdivision (c) of Section 11053 of the Revenue and Taxation Code.(3) 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.(4) 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.(5) Any other revenues designated for the program.(b) The revenues described in paragraph (2) of subdivision (a) shall be transferred to the Transportation Improvement Fee Subaccount, which is hereby created in the Road Maintenance and Rehabilitation Account.SEC. 3. Section 2032 of the Streets and Highways Code is amended to read:2032. (a) (1) After deducting the amounts appropriated in the annual Budget Act, as provided in Section 2031.5, two hundred million dollars ($200,000,000) of the remaining revenues deposited in the Road Maintenance and Rehabilitation Account shall be set aside annually for local or regional transportation agencies that have sought and received voter approval of taxes or that have imposed fees, including uniform developer fees as defined by subdivision (b) of Section 8879.67 of the Government Code, which taxes or fees are dedicated solely to transportation improvements. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, the Controller shall set aside one-eighth of this amount, to accumulate a total of two hundred million dollars ($200,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(2) Eligible projects under this subdivision include, but are not limited to, sound walls for a freeway that was built before 1987 without sound walls and with or without high-occupancy vehicle lanes if the completion of the sound walls has been deferred due to lack of available funding for at least 20 years and a noise barrier scope summary report has been completed within the last 20 years.(3) Notwithstanding Section 13340 of the Government Code, the funds available under this subdivision in each fiscal year are hereby continuously appropriated for allocation by the commission for road maintenance and rehabilitation and other transportation improvement projects pursuant to Section 2033.(b) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amount allocated in subdivision (a), beginning in the 201718 fiscal year, one hundred million dollars ($100,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, on the Active Transportation Program established pursuant to Chapter 8 (commencing with Section 2380) to be allocated by the California Transportation Commission pursuant to Section 2381. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of one hundred million dollars ($100,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(c) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) and (b), beginning in the 201718 fiscal year, four hundred million dollars ($400,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for bridge and culvert maintenance and rehabilitation. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of four hundred million dollars ($400,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(d) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (c), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be transferred annually to the State Highway Account for expenditure, upon appropriation by the Legislature, to supplement the freeway service patrol program. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(e) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (d), inclusive, in the 201718 to 202122 fiscal years, inclusive, from revenues in the Road Maintenance and Rehabilitation Account that are not subject to Article XIX of the California Constitution, five million dollars ($5,000,000) shall be appropriated in each fiscal year to the California Workforce Development Board to assist local agencies to implement policies to promote preapprenticeship training programs to carry out the projects that are funded by the account pursuant to Section 2038. Funds appropriated pursuant to this subdivision in the Budget Act but remaining unexpended at the end of each applicable fiscal year shall be reappropriated for the same purposes in the following years Budget Act, but all funds appropriated or reappropriated pursuant to this subdivision in the Budget Act shall be liquidated no later than June 30, 2027.(f) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (e), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for local planning grants, as described in Section 2033.5. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(g) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (f), inclusive, beginning in the 201718 fiscal year and each fiscal year thereafter, from the remaining revenues, five million dollars ($5,000,000) shall be available, upon appropriation, to the University of California for the purpose of conducting transportation research and two million dollars ($2,000,000) shall be available, upon appropriation, to the California State University for purposes of conducting transportation research and transportation-related workforce education, training, and development. Before the start of each fiscal year, the Secretary of Transportation and the chairs of the Assembly Committee on Transportation and the Senate Committee on Transportation and Housing may set out a recommended priority list of research components to be addressed in the upcoming fiscal year.(h) Notwithstanding Section 13340 of the Government Code, the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount are hereby continuously appropriated as follows and as provided in subdivision (i):(1) Fifty percent for allocation to the department for maintenance of the state highway system or for purposes of the State Highway Operation and Protection Program.(2) Fifty percent for apportionment to cities and counties by the Controller pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103 for the purposes authorized by this chapter.(i) (1) (A) This paragraph shall apply to how the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the revenues remaining in the Transportation Improvement Fee Subaccount after any adjustments made pursuant to paragraph (2) are used to fund the 50-percent allocation to the department in paragraph (1) of subdivision (h) and the 50-percent apportionment to cities and counties in paragraph (2) of subdivision (h). Nothing in this subdivision or in Section 14474.1 of the Government Code shall reduce, modify, or otherwise impact the continuous appropriation of the 50-percent allocation of the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount to cities and counties pursuant to paragraph (2) of subdivision (h).(B) The revenues in the Transportation Improvement Fee Subaccount specified in subdivision (h) shall be used first to fund the allocation specified in paragraph (1) of subdivision (h). The revenues from the Transportation Improvement Fee Subaccount used to fund the allocation specified in paragraph (1) of subdivision (h) shall be deposited into the State Highway and SHOPP TIF Account, which is hereby created in the State Transportation Fund.(C) If the revenues in the Transportation Improvement Fee Subaccount do not fully satisfy the allocation specified in paragraph (1) of subdivision (h), the revenues in the Road Maintenance and Rehabilitation Account shall be used to fund the remaining portion of the allocation specified in paragraph (1) of subdivision (h).(D) The revenues in the Road Maintenance and Rehabilitation Account and any revenues in the Transportation Improvement Fee Subaccount that remain after the allocation specified in paragraph (1) of subdivision (h) shall be used to fund the allocation specified in paragraph (2) of subdivision (h).(2) (A) Except as provided in subparagraphs (B) and (C), revenues in the Transportation Improvement Fee Subaccount shall not be used to satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive.(B) If there are insufficient revenues in the Road Maintenance and Rehabilitation Account to fully satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive, revenues in the Transportation Improvement Fee Subaccount shall be used to satisfy the remaining portion of those deductions that are not satisfied by the revenues in the Road Maintenance and Rehabilitation Account.(C) Revenues in the Transportation Improvement Fee Subaccount may, upon appropriation by the Legislature, be used to satisfy the allocation set forth in subdivision (e). |
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| 54 | + | The people of the State of California do enact as follows:SECTION 1. Chapter 6 (commencing with Section 14470) is added to Part 5 of Division 3 of Title 2 of the Government Code, to read: CHAPTER 6. Transportation Improvement Fee Revenue Bonds Article 1. Legislative Findings and Declarations14470. The Legislature hereby finds and declares all of the following:(a) Upon the passage of Senate Bill 1 of the 201718 Regular Session (Senate Bill 1), it was found, at that time, that the state faced a fifty-nine-billion-dollar ($59,000,000,000) shortfall over a 10-year period to adequately maintain the existing state highway system in order to keep the system in a basic state of good repair.(b) Additionally, upon the passage of Senate Bill 1, it was further found that California motorists were spending seventeen billion dollars ($17,000,000,000) annually in extra maintenance and car repair bills, which is more than seven hundred dollars ($700) per driver, due to the states poorly maintained roads.(c) Improving the condition of the states road system will have a positive impact on the economy as it lowers the transportation costs of doing business, reduces congestion impacts for employees, and protects property values in the state.(d) The federal government estimates that increased spending on infrastructure creates more than 13,000 jobs per one billion dollars ($1,000,000,000) spent.(e) Well-maintained roads benefit all users, not just drivers, as roads are used for all modes of transport, whether motor vehicles, transit, bicycles, or pedestrians.(f) Well-maintained roads additionally provide significant health benefits and prevent injuries and death due to crashes caused by poorly maintained infrastructure.(g) With the enactment of Senate Bill 1, otherwise known as the Road Repair and Accountability Act of 2017, the Legislature created a comprehensive funding package to address improvements to Californias transportation system.(h) One of the revenue sources created under the Road Repair and Accountability Act of 2017 was a new transportation improvement fee imposed under the Vehicle License Fee Law.(i) The new transportation improvement fee may only be used for transportation purposes pursuant to subdivision (d) of Section 11051 of the Revenue and Taxation Code and Section 1 of Article XIX D of the California Constitution.(j) A portion of the proceeds of the new transportation improvement fee are deposited into the Road Maintenance and Rehabilitation Account in the State Transportation Fund for use on deferred maintenance and road rehabilitation projects on the state highway system.(k) Using revenue bonds of the State of California to finance eligible state highway system transportation projects can greatly accelerate projects and can result in significant cost savings to the state, since those transportation projects can be completed at present-day costs.(l) Funding transportation projects with revenue bonds can also deliver projects to the public significantly sooner than traditional funding mechanisms.(m) Furthermore, accelerating transportation projects with revenue bonds will result in the timely creation of well-paid jobs and stimulate the states economy, which is currently experiencing a significant downturn as a result of the COVID-19 pandemic.(n) Therefore, it is in the best interest of the state to develop these new and innovative methods for funding and accelerating critical transportation projects. Article 2. Definitions14471. Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.14471.1. (a) Ancillary obligation means an obligation of the state entered into in connection with any revenue bonds issued in accordance with this chapter, including the following:(1) A credit enhancement or liquidity agreement, including any credit enhancement or liquidity agreement in the form of bond insurance, letter of credit, standby bond purchase agreement, reimbursement agreement, liquidity facility, surety bond, or other similar arrangement.(2) A remarketing agreement.(3) A broker-dealer agreement or other agreement relating to the marketing of the revenue bonds.(4) An interest rate or other type of swap or hedging contract.(5) An investment agreement, forward purchase agreement, or similar structured investment contract.(b) Committee means the Transportation Improvement Fee Finance Committee created pursuant to Section 14473.(c) Designated project means a project that has been designated for accelerated construction by the department in accordance with this chapter.(d) Issuing Instrument means any resolution, trust agreement, indenture, certificate, or other instrument authorizing the issuance of revenue bonds in accordance with this chapter and providing for their security and repayment.(e) Revenue bonds or bonds means revenue bonds of the state issued in accordance with this chapter.(f) State Highway and SHOPP TIF Account means the account created pursuant to subparagraph (A) of paragraph (1) of subdivision (i) of Section 2032 of the Streets and Highways Code.(g) Transportation improvement fee means the transportation improvement fee imposed pursuant to Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code.(h) Trustee means the Treasurer and, at the option of the Treasurer, any cotrustee which is a national bank, bank or trust company within or without the state, acting as trustee or cotrustee for any issue of revenue bonds in accordance with this chapter and, if there is more than one issue of bonds, the term means the trustee for each issue of bonds, respectively. If there are cotrustees for an issue of bonds, trustee means those cotrustees collectively. Article 3. Selection of Projects14472. (a) The department maydesignate may designate projects to be funded from the proceeds of revenue bonds that are included in the State Highway Operation and Protection Program prepared pursuant to Section 14526.5 and adopted on May 13, 2020, and that have completed environmental clearance and project design.(b) When the department anticipates the issuance of new revenue bonds and, in conjunction with the commission, makes a written request in that regard, the department, in conjunction with the Treasurers office, shall prepare an analysis of the bonding capacity of transportation improvement fee revenues deposited in the State Highway and SHOPP TIF Account and expected to be available to fund designated projects. The bonding capacity determined pursuant to this subdivision shall not impact, reduce, or otherwise modify the allocation of revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount and continuously appropriated pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code.14472.1. (a) Upon taking the actions authorized under this article, the department may request the committee to authorize the issuance of revenue bonds to provide funds for the designated projects.(b) On or before April 1 of each year, the department shall prepare and submit an annual report regarding the preceding calendar year to the Governor and the Legislature. Each report shall compile and detail the total amount of outstanding debt issued pursuant to this chapter and the projects funded by that outstanding debt. A report to be submitted to the Legislature pursuant to this subdivision shall be submitted in compliance with Section 9795.14472.2. On or before October 1 of each year, the department shall report to the Governor, the Department of Finance, the Legislative Analysts Office, and the chairs of the transportation committees in the Assembly and Senate on the amount of revenue bonds that the department intends to request that the committee issue for the subsequent fiscal year.14472.3. Within 90 days of the effective date of this chapter, the department shall submit a list of projects to the Treasurer and the committee that are eligible to be designated pursuant to Section 14472. Article 4. Creation of the Transportation Improvement Fee Finance Committee14473. (a) The committee is hereby created solely for the purpose of authorizing the issuance and sale of the bonds and the execution and delivery of ancillary obligations authorized by this chapter, and executing and entering into an issuing instrument.(b) The committee shall consist of the Treasurer, the Controller, and the Director of Finance, or their designated representatives.(c) The Treasurer shall serve as chairperson of the committee.(d) A majority of the committee may act for the committee.(e) The Attorney General shall be the legal counsel for the committee. With the approval of the Attorney General, the committee may employ any legal counsel that in its judgment is necessary or advisable to enable it to carry out its duties and functions, including, but not limited to, the employment of any bond counsel deemed advisable in connection with the issuance and sale of revenue bonds.(f) A member, officer, or agent of the committee shall not be subject to personal liability on any revenue bonds or ancillary obligations issued or entered into in accordance with this chapter or for any acts or omissions of members, officers, or agents in carrying out the powers and duties conferred by this chapter.(g) The members of the committee shall serve without compensation. Article 5. Issuance of Revenue Bonds14474. (a) Revenue bonds may be issued in accordance with this chapter on a tax-exempt or taxable basis in a principal amount not to exceed five billion dollars ($5,000,000,000), excluding refunding bonds and excluding any net original issuance premium derived from the sale of the bonds, to finance or refinance designated projects and to fund necessary reserves for principal and interest, capitalized interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the revenue bonds.(b) The State TIF Revenue Bond Fund is hereby created within the State Treasury and, notwithstanding Section 13340 or any other law, continuously appropriated, without regard to fiscal years, to the department and the Treasurer for the purposes of, and in accordance with, this chapter. Accounts and subaccounts may be created within the fund as needed.(c) There shall be paid into the State TIF Revenue Bond Fund the net proceeds derived from the issuance of revenue bonds in accordance with this chapter.(d) Moneys in the State TIF Revenue Bond Fund may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.1. In order to provide security for repayment of the revenue bonds and ancillary obligations, the committee may include in an issuing instrument provisions pledging all or a portion of the interests of the state in the State Highway and SHOPP TIF Account and any moneys in that account and any accounts established under the issuing instrument and the moneys on deposit in those accounts designated by the committee to the payment of principal of, and interest and premium on, the revenue bonds and the payment of ancillary obligations, for as long as any revenue bonds or ancillary obligations remain outstanding. The committee shall not pledge any portion of the allocation of revenues pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code or, in any other way, impact, modify, or reduce that allocation. The pledge shall be governed by Chapter 5.5 (commencing with Section 5450) of Division 6 of Title 1. The pledge described in this section shall constitute a pledge of collateral within the meaning of subdivision (b) of Section 5450. The issuing instrument shall constitute a pledge document for purposes of Section 5451, as defined in Section 5450.14474.2. Revenue bonds may be issued from time to time pursuant to an issuing instrument, including an issuing instrument entered into between the committee and a trustee. The issuing instrument may contain any of the following provisions, which shall be a part of the contract with the holders of the revenue bonds to be authorized:(a) Provisions of the type described in Section 14474.1.(b) Provisions for classes of revenue bonds having different priority in the receipt of available transportation improvement fee revenues.(c) Provisions for the investment of proceeds of the revenue bonds or of the moneys received for repayment of the revenue bonds.(d) Provisions setting aside reserves or sinking funds, and the regulation and disposition thereof.(e) Limitations on the issuance of additional revenue bonds, the terms upon which additional revenue bonds may be issued and secured, and the refunding of outstanding revenue bonds.(f) The procedure, if any, by which the terms of any contract with revenue bondholders may be amended or abrogated, the amount of revenue bonds and the holders thereof that are required to give consent thereto, and the manner in which the consent may be given.(g) Definitions of acts or omissions to act that constitute a default in the duties of the state to holders of the revenue bonds, and provisions on the rights and remedies of the holders in the event of a default.14474.3. The revenue bonds shall be authorized by resolution or resolutions of the committee, shall be in the form, shall bear the date or dates, and shall mature at the time or times, as the issuing instrument may provide, except that no revenue bond may mature more than 40 years from the date of its issue. The revenue bonds shall bear interest at fixed or variable rate or rates, be in the denominations, be in the form, be executed in the manner, be payable in the medium of payment at the place or places within or without the state, be subject to the terms of redemption and tender for purchase and contain the terms and conditions, that the issuing instrument may provide. The committee may authorize the Treasurer, upon those terms and conditions that may be fixed by the committee or determined by the Treasurer, to sell the revenue bonds at public or private sale at, above, or below the par value. The committee may authorize the Treasurer to do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.4. (a) Notwithstanding Section 13340 or any other law, the amounts deposited in the State Highway and SHOPP TIF Account and pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the Treasurer, as trustee or cotrustee under the issuing instrument, for the purposes of, and in accordance with, this chapter, and the amounts deposited in the State Highway and SHOPP TIF Account that have not been pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the department, for the purposes of, and in accordance with paragraph (1) of subdivision (h) of Section 2032 of the Streets and Highways Code, subject to the terms of the issuing instrument for any outstanding revenue bonds.(b) Moneys in the State Highway and SHOPP TIF Account may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.5. (a) The committee may provide for the issuance and sale of refunding revenue bonds to refund any outstanding revenue bonds, and to fund necessary reserves for principal and interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the refunding revenue bonds.(b) The proceeds of any revenue bonds issued for the purpose of refunding of outstanding bonds may, at the discretion of the committee, be applied to the purchase or redemption before maturity or retirement at maturity of the outstanding bonds on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof, or paid to a third person to assume the obligation to make those payments, and may, pending that application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on any date or dates as may be determined by the committee.14474.6. Whenever the committee deems that it will increase the salability or the price of the revenue bonds to obtain, before or after sale, a legal opinion, other than that of the Attorney General, as to the validity or tax-exempt nature of the revenue bonds, the committee may obtain that legal opinion. Payment for those legal services shall be made from the proceeds of the sale of the revenue bonds.14474.7. (a) The Treasurer may employ financial, engineering, or transportation consultants or advisers, underwriters, and accountants as may be necessary in the Treasurers judgment in connection with the issuance and sale of any revenue bonds. Payment for these services may be made out of the proceeds of the sale of the revenue bonds.(b) The Treasurer may do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.8. Revenue bonds issued under this chapter are a legal investment for any state special or trust fund notwithstanding any law limiting the investments that may be made by the special or trust fund. The revenue bonds shall be legal investments in which all public officers and public bodies of the state, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings and loan associations, savings banks and savings associations, and investment companies, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons authorized to invest in revenue bonds or in other obligations of the state, may properly and legally invest funds, including capital, in their control or belonging to them. The revenue bonds may be used as security for public deposits. The revenue bonds are also securities that may properly and legally be deposited with and received by all public officers and bodies of state or any agency or political subdivision of the state and all municipalities and public corporations for any purpose for which the deposit of revenue bonds or other obligations of the state is authorized by law, including deposits to secured public funds.14474.9. Notwithstanding any other law, revenue bonds issued in accordance with this chapter are not and shall not be deemed to constitute a debt or liability of the state, or of any political subdivision of the state, and are not and shall not be deemed to be a pledge of the full faith and credit of the state, or of any political subdivision of the state, but shall be payable solely from the funds and revenues pledged therefor under the issuing instrument. All the revenue bonds shall contain on their face a statement to the effect that the State of California is not and shall not be obligated to pay the principal, or the interest on the revenue bonds, except from the funds and revenues pledged therefor under the issuing instrument, and that neither the faith and credit nor the taxing power of the State of California or of any of its political subdivisions is pledged or shall be pledged to the payment of the principal or interest on the revenue bonds. The issuance of revenue bonds in accordance with this chapter shall not directly or indirectly or contingently obligate the state, or any political subdivision of the state, to levy or to pledge any form of taxation whatsoever or to make any appropriation for their payment from the General Fund of the state.14474.10. Any bonds issued in accordance with this chapter, their transfer, and income therefrom shall at all times be free from taxation of every kind by the state and by all political subdivisions of the state.14474.11. The Legislature finds and declares that the expenditure of bond funds pursuant to this chapter does not constitute the use of bond proceeds or other indebtedness to pay a year-end state budget deficit, as prohibited by subdivision (c) of Section 1.3 of Article XVI of the California Constitution.14474.12. The state hereby covenants with the holders from time to time of any revenue bonds issued pursuant to this chapter, and with those parties who may enter into ancillary obligations pursuant to this chapter, that it will not alter, amend, or restrict the provisions of this section, Section 14474.4, Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code, and Sections 2031 and 2032 of the Streets and Highways Code in any manner that would materially adversely impair the interests of those bondholders or parties for so long as any revenue bonds or ancillary obligations remain outstanding. The committee may include this covenant in the issuing instrument.14474.13. An action to determine the validity of any revenue bond authorized to be issued pursuant to this chapter, and any ancillary obligations or other contracts related to those bonds, may be brought in accordance with Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. For the purposes of Section 860 of the Code of Civil Procedure, any action initiated pursuant to this section shall be brought in the Superior Court of the County of Sacramento.14474.14. This article provides a complete, additional, and alternative method for performing the acts authorized by this article and shall be construed as supplemental and additional to powers conferred by other laws; provided, however, that the issuance of the revenue bonds and refunding bonds and the execution of any agreements under this article are not subject to, and need not comply with, the requirements of any other law applicable to the issuance of those revenue bonds or refunding bonds and the execution of those agreements, including, but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).SEC. 2. Section 2031 of the Streets and Highways Code is amended to read:2031. (a) The following revenues shall be deposited in the Road Maintenance and Rehabilitation Account, which is hereby created in the State Transportation Fund:(1) 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.(2) The revenues from the portion of the transportation improvement fee pursuant to subdivision (c) of Section 11053 of the Revenue and Taxation Code.(3) 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.(4) 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.(5) Any other revenues designated for the program.(b) The revenues described in paragraph (2) of subdivision (a) shall be transferred to the Transportation Improvement Fee Subaccount, which is hereby created in the Road Maintenance and Rehabilitation Account.SEC. 3. Section 2032 of the Streets and Highways Code is amended to read:2032. (a) (1) After deducting the amounts appropriated in the annual Budget Act, as provided in Section 2031.5, two hundred million dollars ($200,000,000) of the remaining revenues deposited in the Road Maintenance and Rehabilitation Account shall be set aside annually for local or regional transportation agencies that have sought and received voter approval of taxes or that have imposed fees, including uniform developer fees as defined by subdivision (b) of Section 8879.67 of the Government Code, which taxes or fees are dedicated solely to transportation improvements. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, the Controller shall set aside one-eighth of this amount, to accumulate a total of two hundred million dollars ($200,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(2) Eligible projects under this subdivision include, but are not limited to, sound walls for a freeway that was built before 1987 without sound walls and with or without high-occupancy vehicle lanes if the completion of the sound walls has been deferred due to lack of available funding for at least 20 years and a noise barrier scope summary report has been completed within the last 20 years.(3) Notwithstanding Section 13340 of the Government Code, the funds available under this subdivision in each fiscal year are hereby continuously appropriated for allocation by the commission for road maintenance and rehabilitation and other transportation improvement projects pursuant to Section 2033.(b) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amount allocated in subdivision (a), beginning in the 201718 fiscal year, one hundred million dollars ($100,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, on the Active Transportation Program established pursuant to Chapter 8 (commencing with Section 2380) to be allocated by the California Transportation Commission pursuant to Section 2381. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of one hundred million dollars ($100,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(c) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) and (b), beginning in the 201718 fiscal year, four hundred million dollars ($400,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for bridge and culvert maintenance and rehabilitation. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of four hundred million dollars ($400,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(d) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (c), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be transferred annually to the State Highway Account for expenditure, upon appropriation by the Legislature, to supplement the freeway service patrol program. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(e) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (d), inclusive, in the 201718 to 202122 fiscal years, inclusive, from revenues in the Road Maintenance and Rehabilitation Account that are not subject to Article XIX of the California Constitution, five million dollars ($5,000,000) shall be appropriated in each fiscal year to the California Workforce Development Board to assist local agencies to implement policies to promote preapprenticeship training programs to carry out the projects that are funded by the account pursuant to Section 2038. Funds appropriated pursuant to this subdivision in the Budget Act but remaining unexpended at the end of each applicable fiscal year shall be reappropriated for the same purposes in the following years Budget Act, but all funds appropriated or reappropriated pursuant to this subdivision in the Budget Act shall be liquidated no later than June 30, 2027.(f) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (e), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for local planning grants, as described in Section 2033.5. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(g) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (f), inclusive, beginning in the 201718 fiscal year and each fiscal year thereafter, from the remaining revenues, five million dollars ($5,000,000) shall be available, upon appropriation, to the University of California for the purpose of conducting transportation research and two million dollars ($2,000,000) shall be available, upon appropriation, to the California State University for purposes of conducting transportation research and transportation-related workforce education, training, and development. Before the start of each fiscal year, the Secretary of Transportation and the chairs of the Assembly Committee on Transportation and the Senate Committee on Transportation and Housing may set out a recommended priority list of research components to be addressed in the upcoming fiscal year.(h) Notwithstanding Section 13340 of the Government Code, the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount are hereby continuously appropriated as follows and as provided in subdivision (i):(1) Fifty percent for allocation to the department for maintenance of the state highway system or for purposes of the State Highway Operation and Protection Program.(2) Fifty percent for apportionment to cities and counties by the Controller pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103 for the purposes authorized by this chapter.(i) (1) (A) This subdivision paragraph shall apply to how the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the revenues remaining in the Transportation Improvement Fee Subaccount after any adjustments made pursuant to paragraph (2) are used to fund the 50-percent allocation to the department in paragraph (1) of subdivision (h) and the 50-percent apportionment to cities and counties in paragraph (2) of subdivision (h). Nothing in this subdivision or in Section 14474.1 of the Government Code shall reduce, modify, or otherwise impact the continuous appropriation of the 50-percent allocation of the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount to cities and counties pursuant to paragraph (2) of subdivision (h).(B) The revenues in the Transportation Improvement Fee Subaccount specified in subdivision (h) shall be used first to fund the allocation specified in paragraph (1) of subdivision (h). The revenues from the Transportation Improvement Fee Subaccount used to fund the allocation specified in paragraph (1) of subdivision (h) shall be deposited into the State Highway and SHOPP TIF Account, which is hereby created in the State Transportation Fund.(C) If the revenues in the Transportation Improvement Fee Subaccount do not fully satisfy the allocation specified in paragraph (1) of subdivision (h), the revenues in the Road Maintenance and Rehabilitation Account shall be used to fund the remaining portion of the allocation specified in paragraph (1) of subdivision (h).(D) The revenues in the Road Maintenance and Rehabilitation Account and any revenues in the Transportation Improvement Fee Subaccount that remain after the allocation specified in paragraph (1) of subdivision (h) shall be used to fund the allocation specified in paragraph (2) of subdivision (h).(2) (A) Except as provided in subparagraphs (B) and (C), revenues in the Transportation Improvement Fee Subaccount shall not be used to satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive.(B) If there are insufficient revenues in the Road Maintenance and Rehabilitation Account to fully satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive, revenues in the Transportation Improvement Fee Subaccount shall be used to satisfy the remaining portion of those deductions that are not satisfied by the revenues in the Road Maintenance and Rehabilitation Account.(C) Revenues in the Transportation Improvement Fee Subaccount shall may, upon appropriation by the Legislature, be used to satisfy the allocation set forth in subdivision (e). |
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| 63 | | - | SECTION 1. Chapter 6 (commencing with Section 14470) is added to Part 5 of Division 3 of Title 2 of the Government Code, to read: CHAPTER 6. Transportation Improvement Fee Revenue Bonds Article 1. Legislative Findings and Declarations14470. The Legislature hereby finds and declares all of the following:(a) Upon the passage of Senate Bill 1 of the 201718 Regular Session (Senate Bill 1), it was found, at that time, that the state faced a fifty-nine-billion-dollar ($59,000,000,000) shortfall over a 10-year period to adequately maintain the existing state highway system in order to keep the system in a basic state of good repair.(b) Additionally, upon the passage of Senate Bill 1, it was further found that California motorists were spending seventeen billion dollars ($17,000,000,000) annually in extra maintenance and car repair bills, which is more than seven hundred dollars ($700) per driver, due to the states poorly maintained roads.(c) Improving the condition of the states road system will have a positive impact on the economy as it lowers the transportation costs of doing business, reduces congestion impacts for employees, and protects property values in the state.(d) The federal government estimates that increased spending on infrastructure creates more than 13,000 jobs per one billion dollars ($1,000,000,000) spent.(e) Well-maintained roads benefit all users, not just drivers, as roads are used for all modes of transport, whether motor vehicles, transit, bicycles, or pedestrians.(f) Well-maintained roads additionally provide significant health benefits and prevent injuries and death due to crashes caused by poorly maintained infrastructure.(g) With the enactment of Senate Bill 1, otherwise known as the Road Repair and Accountability Act of 2017, the Legislature created a comprehensive funding package to address improvements to Californias transportation system.(h) One of the revenue sources created under the Road Repair and Accountability Act of 2017 was a new transportation improvement fee imposed under the Vehicle License Fee Law.(i) The new transportation improvement fee may only be used for transportation purposes pursuant to subdivision (d) of Section 11051 of the Revenue and Taxation Code and Section 1 of Article XIX D of the California Constitution.(j) A portion of the proceeds of the new transportation improvement fee are deposited into the Road Maintenance and Rehabilitation Account in the State Transportation Fund for use on deferred maintenance and road rehabilitation projects on the state highway system.(k) Using revenue bonds of the State of California to finance eligible state highway system transportation projects can greatly accelerate projects and can result in significant cost savings to the state, since those transportation projects can be completed at present-day costs.(l) Funding transportation projects with revenue bonds can also deliver projects to the public significantly sooner than traditional funding mechanisms.(m) Furthermore, accelerating transportation projects with revenue bonds will result in the timely creation of well-paid jobs and stimulate the states economy, which is currently experiencing a significant downturn as a result of the COVID-19 pandemic.(n) Therefore, it is in the best interest of the state to develop these new and innovative methods for funding and accelerating critical transportation projects. Article 2. Definitions14471. Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.14471.1. (a) Ancillary obligation means an obligation of the state entered into in connection with any revenue bonds issued in accordance with this chapter, including the following:(1) A credit enhancement or liquidity agreement, including any credit enhancement or liquidity agreement in the form of bond insurance, letter of credit, standby bond purchase agreement, reimbursement agreement, liquidity facility, surety bond, or other similar arrangement.(2) A remarketing agreement.(3) A broker-dealer agreement or other agreement relating to the marketing of the revenue bonds.(4) An interest rate or other type of swap or hedging contract.(5) An investment agreement, forward purchase agreement, or similar structured investment contract.(b) Committee means the Transportation Improvement Fee Finance Committee created pursuant to Section 14473.(c) Designated project means a project that has been designated for accelerated construction by the department in accordance with this chapter.(d) Issuing Instrument means any resolution, trust agreement, indenture, certificate, or other instrument authorizing the issuance of revenue bonds in accordance with this chapter and providing for their security and repayment.(e) Revenue bonds or bonds means revenue bonds of the state issued in accordance with this chapter.(f) State Highway and SHOPP TIF Account means the account created pursuant to subparagraph (A) of paragraph (1) of subdivision (i) of Section 2032 of the Streets and Highways Code.(g) Transportation improvement fee means the transportation improvement fee imposed pursuant to Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code.(h) Trustee means the Treasurer and, at the option of the Treasurer, any cotrustee which is a national bank, bank or trust company within or without the state, acting as trustee or cotrustee for any issue of revenue bonds in accordance with this chapter and, if there is more than one issue of bonds, the term means the trustee for each issue of bonds, respectively. If there are cotrustees for an issue of bonds, trustee means those cotrustees collectively. Article 3. Selection of Projects14472. (a) The department may designate projects to be funded from the proceeds of revenue bonds that are included in the State Highway Operation and Protection Program prepared pursuant to Section 14526.5 and adopted on May 13, 2020, and that have completed environmental clearance and project design.(b) When the department anticipates the issuance of new revenue bonds and, in conjunction with the commission, makes a written request in that regard, the department, in conjunction with the Treasurers office, shall prepare an analysis of the bonding capacity of transportation improvement fee revenues deposited in the State Highway and SHOPP TIF Account and expected to be available to fund designated projects. The bonding capacity determined pursuant to this subdivision shall not impact, reduce, or otherwise modify the allocation of revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount and continuously appropriated pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code.14472.1. (a) Upon taking the actions authorized under this article, the department may request the committee to authorize the issuance of revenue bonds to provide funds for the designated projects.(b) On or before April 1 of each year, the department shall prepare and submit an annual report regarding the preceding calendar year to the Governor and the Legislature. Each report shall compile and detail the total amount of outstanding debt issued pursuant to this chapter and the projects funded by that outstanding debt. A report to be submitted to the Legislature pursuant to this subdivision shall be submitted in compliance with Section 9795.14472.2. On or before October 1 of each year, the department shall report to the Governor, the Department of Finance, the Legislative Analysts Office, and the chairs of the transportation committees in the Assembly and Senate on the amount of revenue bonds that the department intends to request that the committee issue for the subsequent fiscal year.14472.3. Within 90 days of the effective date of this chapter, the department shall submit a list of projects to the Treasurer and the committee that are eligible to be designated pursuant to Section 14472. Article 4. Creation of the Transportation Improvement Fee Finance Committee14473. (a) The committee is hereby created solely for the purpose of authorizing the issuance and sale of the bonds and the execution and delivery of ancillary obligations authorized by this chapter, and executing and entering into an issuing instrument.(b) The committee shall consist of the Treasurer, the Controller, and the Director of Finance, or their designated representatives.(c) The Treasurer shall serve as chairperson of the committee.(d) A majority of the committee may act for the committee.(e) The Attorney General shall be the legal counsel for the committee. With the approval of the Attorney General, the committee may employ any legal counsel that in its judgment is necessary or advisable to enable it to carry out its duties and functions, including, but not limited to, the employment of any bond counsel deemed advisable in connection with the issuance and sale of revenue bonds.(f) A member, officer, or agent of the committee shall not be subject to personal liability on any revenue bonds or ancillary obligations issued or entered into in accordance with this chapter or for any acts or omissions of members, officers, or agents in carrying out the powers and duties conferred by this chapter.(g) The members of the committee shall serve without compensation. Article 5. Issuance of Revenue Bonds14474. (a) Revenue bonds may be issued in accordance with this chapter on a tax-exempt or taxable basis in a principal amount not to exceed five billion dollars ($5,000,000,000), excluding refunding bonds and excluding any net original issuance premium derived from the sale of the bonds, to finance or refinance designated projects and to fund necessary reserves for principal and interest, capitalized interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the revenue bonds.(b) The State TIF Revenue Bond Fund is hereby created within the State Treasury and, notwithstanding Section 13340 or any other law, continuously appropriated, without regard to fiscal years, to the department and the Treasurer for the purposes of, and in accordance with, this chapter. Accounts and subaccounts may be created within the fund as needed.(c) There shall be paid into the State TIF Revenue Bond Fund the net proceeds derived from the issuance of revenue bonds in accordance with this chapter.(d) Moneys in the State TIF Revenue Bond Fund may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.1. In order to provide security for repayment of the revenue bonds and ancillary obligations, the committee may include in an issuing instrument provisions pledging all or a portion of the interests of the state in the State Highway and SHOPP TIF Account and any moneys in that account and any accounts established under the issuing instrument and the moneys on deposit in those accounts designated by the committee to the payment of principal of, and interest and premium on, the revenue bonds and the payment of ancillary obligations, for as long as any revenue bonds or ancillary obligations remain outstanding. The committee shall not pledge any portion of the allocation of revenues pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code or, in any other way, impact, modify, or reduce that allocation. The pledge shall be governed by Chapter 5.5 (commencing with Section 5450) of Division 6 of Title 1. The pledge described in this section shall constitute a pledge of collateral within the meaning of subdivision (b) of Section 5450. The issuing instrument shall constitute a pledge document for purposes of Section 5451, as defined in Section 5450.14474.2. Revenue bonds may be issued from time to time pursuant to an issuing instrument, including an issuing instrument entered into between the committee and a trustee. The issuing instrument may contain any of the following provisions, which shall be a part of the contract with the holders of the revenue bonds to be authorized:(a) Provisions of the type described in Section 14474.1.(b) Provisions for classes of revenue bonds having different priority in the receipt of available transportation improvement fee revenues.(c) Provisions for the investment of proceeds of the revenue bonds or of the moneys received for repayment of the revenue bonds.(d) Provisions setting aside reserves or sinking funds, and the regulation and disposition thereof.(e) Limitations on the issuance of additional revenue bonds, the terms upon which additional revenue bonds may be issued and secured, and the refunding of outstanding revenue bonds.(f) The procedure, if any, by which the terms of any contract with revenue bondholders may be amended or abrogated, the amount of revenue bonds and the holders thereof that are required to give consent thereto, and the manner in which the consent may be given.(g) Definitions of acts or omissions to act that constitute a default in the duties of the state to holders of the revenue bonds, and provisions on the rights and remedies of the holders in the event of a default.14474.3. The revenue bonds shall be authorized by resolution or resolutions of the committee, shall be in the form, shall bear the date or dates, and shall mature at the time or times, as the issuing instrument may provide, except that no revenue bond may mature more than 40 years from the date of its issue. The revenue bonds shall bear interest at fixed or variable rate or rates, be in the denominations, be in the form, be executed in the manner, be payable in the medium of payment at the place or places within or without the state, be subject to the terms of redemption and tender for purchase and contain the terms and conditions, that the issuing instrument may provide. The committee may authorize the Treasurer, upon those terms and conditions that may be fixed by the committee or determined by the Treasurer, to sell the revenue bonds at public or private sale at, above, or below the par value. The committee may authorize the Treasurer to do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.4. (a) Notwithstanding Section 13340 or any other law, the amounts deposited in the State Highway and SHOPP TIF Account and pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the Treasurer, as trustee or cotrustee under the issuing instrument, for the purposes of, and in accordance with, this chapter, and the amounts deposited in the State Highway and SHOPP TIF Account that have not been pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the department, for the purposes of, and in accordance with paragraph (1) of subdivision (h) of Section 2032 of the Streets and Highways Code, subject to the terms of the issuing instrument for any outstanding revenue bonds.(b) Moneys in the State Highway and SHOPP TIF Account may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.5. (a) The committee may provide for the issuance and sale of refunding revenue bonds to refund any outstanding revenue bonds, and to fund necessary reserves for principal and interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the refunding revenue bonds.(b) The proceeds of any revenue bonds issued for the purpose of refunding of outstanding bonds may, at the discretion of the committee, be applied to the purchase or redemption before maturity or retirement at maturity of the outstanding bonds on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof, or paid to a third person to assume the obligation to make those payments, and may, pending that application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on any date or dates as may be determined by the committee.14474.6. Whenever the committee deems that it will increase the salability or the price of the revenue bonds to obtain, before or after sale, a legal opinion, other than that of the Attorney General, as to the validity or tax-exempt nature of the revenue bonds, the committee may obtain that legal opinion. Payment for those legal services shall be made from the proceeds of the sale of the revenue bonds.14474.7. (a) The Treasurer may employ financial, engineering, or transportation consultants or advisers, underwriters, and accountants as may be necessary in the Treasurers judgment in connection with the issuance and sale of any revenue bonds. Payment for these services may be made out of the proceeds of the sale of the revenue bonds.(b) The Treasurer may do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.8. Revenue bonds issued under this chapter are a legal investment for any state special or trust fund notwithstanding any law limiting the investments that may be made by the special or trust fund. The revenue bonds shall be legal investments in which all public officers and public bodies of the state, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings and loan associations, savings banks and savings associations, and investment companies, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons authorized to invest in revenue bonds or in other obligations of the state, may properly and legally invest funds, including capital, in their control or belonging to them. The revenue bonds may be used as security for public deposits. The revenue bonds are also securities that may properly and legally be deposited with and received by all public officers and bodies of state or any agency or political subdivision of the state and all municipalities and public corporations for any purpose for which the deposit of revenue bonds or other obligations of the state is authorized by law, including deposits to secured public funds.14474.9. Notwithstanding any other law, revenue bonds issued in accordance with this chapter are not and shall not be deemed to constitute a debt or liability of the state, or of any political subdivision of the state, and are not and shall not be deemed to be a pledge of the full faith and credit of the state, or of any political subdivision of the state, but shall be payable solely from the funds and revenues pledged therefor under the issuing instrument. All the revenue bonds shall contain on their face a statement to the effect that the State of California is not and shall not be obligated to pay the principal, or the interest on the revenue bonds, except from the funds and revenues pledged therefor under the issuing instrument, and that neither the faith and credit nor the taxing power of the State of California or of any of its political subdivisions is pledged or shall be pledged to the payment of the principal or interest on the revenue bonds. The issuance of revenue bonds in accordance with this chapter shall not directly or indirectly or contingently obligate the state, or any political subdivision of the state, to levy or to pledge any form of taxation whatsoever or to make any appropriation for their payment from the General Fund of the state.14474.10. Any bonds issued in accordance with this chapter, their transfer, and income therefrom shall at all times be free from taxation of every kind by the state and by all political subdivisions of the state.14474.11. The Legislature finds and declares that the expenditure of bond funds pursuant to this chapter does not constitute the use of bond proceeds or other indebtedness to pay a year-end state budget deficit, as prohibited by subdivision (c) of Section 1.3 of Article XVI of the California Constitution.14474.12. The state hereby covenants with the holders from time to time of any revenue bonds issued pursuant to this chapter, and with those parties who may enter into ancillary obligations pursuant to this chapter, that it will not alter, amend, or restrict the provisions of this section, Section 14474.4, Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code, and Sections 2031 and 2032 of the Streets and Highways Code in any manner that would materially adversely impair the interests of those bondholders or parties for so long as any revenue bonds or ancillary obligations remain outstanding. The committee may include this covenant in the issuing instrument.14474.13. An action to determine the validity of any revenue bond authorized to be issued pursuant to this chapter, and any ancillary obligations or other contracts related to those bonds, may be brought in accordance with Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. For the purposes of Section 860 of the Code of Civil Procedure, any action initiated pursuant to this section shall be brought in the Superior Court of the County of Sacramento.14474.14. This article provides a complete, additional, and alternative method for performing the acts authorized by this article and shall be construed as supplemental and additional to powers conferred by other laws; provided, however, that the issuance of the revenue bonds and refunding bonds and the execution of any agreements under this article are not subject to, and need not comply with, the requirements of any other law applicable to the issuance of those revenue bonds or refunding bonds and the execution of those agreements, including, but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). |
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| 60 | + | SECTION 1. Chapter 6 (commencing with Section 14470) is added to Part 5 of Division 3 of Title 2 of the Government Code, to read: CHAPTER 6. Transportation Improvement Fee Revenue Bonds Article 1. Legislative Findings and Declarations14470. The Legislature hereby finds and declares all of the following:(a) Upon the passage of Senate Bill 1 of the 201718 Regular Session (Senate Bill 1), it was found, at that time, that the state faced a fifty-nine-billion-dollar ($59,000,000,000) shortfall over a 10-year period to adequately maintain the existing state highway system in order to keep the system in a basic state of good repair.(b) Additionally, upon the passage of Senate Bill 1, it was further found that California motorists were spending seventeen billion dollars ($17,000,000,000) annually in extra maintenance and car repair bills, which is more than seven hundred dollars ($700) per driver, due to the states poorly maintained roads.(c) Improving the condition of the states road system will have a positive impact on the economy as it lowers the transportation costs of doing business, reduces congestion impacts for employees, and protects property values in the state.(d) The federal government estimates that increased spending on infrastructure creates more than 13,000 jobs per one billion dollars ($1,000,000,000) spent.(e) Well-maintained roads benefit all users, not just drivers, as roads are used for all modes of transport, whether motor vehicles, transit, bicycles, or pedestrians.(f) Well-maintained roads additionally provide significant health benefits and prevent injuries and death due to crashes caused by poorly maintained infrastructure.(g) With the enactment of Senate Bill 1, otherwise known as the Road Repair and Accountability Act of 2017, the Legislature created a comprehensive funding package to address improvements to Californias transportation system.(h) One of the revenue sources created under the Road Repair and Accountability Act of 2017 was a new transportation improvement fee imposed under the Vehicle License Fee Law.(i) The new transportation improvement fee may only be used for transportation purposes pursuant to subdivision (d) of Section 11051 of the Revenue and Taxation Code and Section 1 of Article XIX D of the California Constitution.(j) A portion of the proceeds of the new transportation improvement fee are deposited into the Road Maintenance and Rehabilitation Account in the State Transportation Fund for use on deferred maintenance and road rehabilitation projects on the state highway system.(k) Using revenue bonds of the State of California to finance eligible state highway system transportation projects can greatly accelerate projects and can result in significant cost savings to the state, since those transportation projects can be completed at present-day costs.(l) Funding transportation projects with revenue bonds can also deliver projects to the public significantly sooner than traditional funding mechanisms.(m) Furthermore, accelerating transportation projects with revenue bonds will result in the timely creation of well-paid jobs and stimulate the states economy, which is currently experiencing a significant downturn as a result of the COVID-19 pandemic.(n) Therefore, it is in the best interest of the state to develop these new and innovative methods for funding and accelerating critical transportation projects. Article 2. Definitions14471. Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.14471.1. (a) Ancillary obligation means an obligation of the state entered into in connection with any revenue bonds issued in accordance with this chapter, including the following:(1) A credit enhancement or liquidity agreement, including any credit enhancement or liquidity agreement in the form of bond insurance, letter of credit, standby bond purchase agreement, reimbursement agreement, liquidity facility, surety bond, or other similar arrangement.(2) A remarketing agreement.(3) A broker-dealer agreement or other agreement relating to the marketing of the revenue bonds.(4) An interest rate or other type of swap or hedging contract.(5) An investment agreement, forward purchase agreement, or similar structured investment contract.(b) Committee means the Transportation Improvement Fee Finance Committee created pursuant to Section 14473.(c) Designated project means a project that has been designated for accelerated construction by the department in accordance with this chapter.(d) Issuing Instrument means any resolution, trust agreement, indenture, certificate, or other instrument authorizing the issuance of revenue bonds in accordance with this chapter and providing for their security and repayment.(e) Revenue bonds or bonds means revenue bonds of the state issued in accordance with this chapter.(f) State Highway and SHOPP TIF Account means the account created pursuant to subparagraph (A) of paragraph (1) of subdivision (i) of Section 2032 of the Streets and Highways Code.(g) Transportation improvement fee means the transportation improvement fee imposed pursuant to Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code.(h) Trustee means the Treasurer and, at the option of the Treasurer, any cotrustee which is a national bank, bank or trust company within or without the state, acting as trustee or cotrustee for any issue of revenue bonds in accordance with this chapter and, if there is more than one issue of bonds, the term means the trustee for each issue of bonds, respectively. If there are cotrustees for an issue of bonds, trustee means those cotrustees collectively. Article 3. Selection of Projects14472. (a) The department maydesignate may designate projects to be funded from the proceeds of revenue bonds that are included in the State Highway Operation and Protection Program prepared pursuant to Section 14526.5 and adopted on May 13, 2020, and that have completed environmental clearance and project design.(b) When the department anticipates the issuance of new revenue bonds and, in conjunction with the commission, makes a written request in that regard, the department, in conjunction with the Treasurers office, shall prepare an analysis of the bonding capacity of transportation improvement fee revenues deposited in the State Highway and SHOPP TIF Account and expected to be available to fund designated projects. The bonding capacity determined pursuant to this subdivision shall not impact, reduce, or otherwise modify the allocation of revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount and continuously appropriated pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code.14472.1. (a) Upon taking the actions authorized under this article, the department may request the committee to authorize the issuance of revenue bonds to provide funds for the designated projects.(b) On or before April 1 of each year, the department shall prepare and submit an annual report regarding the preceding calendar year to the Governor and the Legislature. Each report shall compile and detail the total amount of outstanding debt issued pursuant to this chapter and the projects funded by that outstanding debt. A report to be submitted to the Legislature pursuant to this subdivision shall be submitted in compliance with Section 9795.14472.2. On or before October 1 of each year, the department shall report to the Governor, the Department of Finance, the Legislative Analysts Office, and the chairs of the transportation committees in the Assembly and Senate on the amount of revenue bonds that the department intends to request that the committee issue for the subsequent fiscal year.14472.3. Within 90 days of the effective date of this chapter, the department shall submit a list of projects to the Treasurer and the committee that are eligible to be designated pursuant to Section 14472. Article 4. Creation of the Transportation Improvement Fee Finance Committee14473. (a) The committee is hereby created solely for the purpose of authorizing the issuance and sale of the bonds and the execution and delivery of ancillary obligations authorized by this chapter, and executing and entering into an issuing instrument.(b) The committee shall consist of the Treasurer, the Controller, and the Director of Finance, or their designated representatives.(c) The Treasurer shall serve as chairperson of the committee.(d) A majority of the committee may act for the committee.(e) The Attorney General shall be the legal counsel for the committee. With the approval of the Attorney General, the committee may employ any legal counsel that in its judgment is necessary or advisable to enable it to carry out its duties and functions, including, but not limited to, the employment of any bond counsel deemed advisable in connection with the issuance and sale of revenue bonds.(f) A member, officer, or agent of the committee shall not be subject to personal liability on any revenue bonds or ancillary obligations issued or entered into in accordance with this chapter or for any acts or omissions of members, officers, or agents in carrying out the powers and duties conferred by this chapter.(g) The members of the committee shall serve without compensation. Article 5. Issuance of Revenue Bonds14474. (a) Revenue bonds may be issued in accordance with this chapter on a tax-exempt or taxable basis in a principal amount not to exceed five billion dollars ($5,000,000,000), excluding refunding bonds and excluding any net original issuance premium derived from the sale of the bonds, to finance or refinance designated projects and to fund necessary reserves for principal and interest, capitalized interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the revenue bonds.(b) The State TIF Revenue Bond Fund is hereby created within the State Treasury and, notwithstanding Section 13340 or any other law, continuously appropriated, without regard to fiscal years, to the department and the Treasurer for the purposes of, and in accordance with, this chapter. Accounts and subaccounts may be created within the fund as needed.(c) There shall be paid into the State TIF Revenue Bond Fund the net proceeds derived from the issuance of revenue bonds in accordance with this chapter.(d) Moneys in the State TIF Revenue Bond Fund may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.1. In order to provide security for repayment of the revenue bonds and ancillary obligations, the committee may include in an issuing instrument provisions pledging all or a portion of the interests of the state in the State Highway and SHOPP TIF Account and any moneys in that account and any accounts established under the issuing instrument and the moneys on deposit in those accounts designated by the committee to the payment of principal of, and interest and premium on, the revenue bonds and the payment of ancillary obligations, for as long as any revenue bonds or ancillary obligations remain outstanding. The committee shall not pledge any portion of the allocation of revenues pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code or, in any other way, impact, modify, or reduce that allocation. The pledge shall be governed by Chapter 5.5 (commencing with Section 5450) of Division 6 of Title 1. The pledge described in this section shall constitute a pledge of collateral within the meaning of subdivision (b) of Section 5450. The issuing instrument shall constitute a pledge document for purposes of Section 5451, as defined in Section 5450.14474.2. Revenue bonds may be issued from time to time pursuant to an issuing instrument, including an issuing instrument entered into between the committee and a trustee. The issuing instrument may contain any of the following provisions, which shall be a part of the contract with the holders of the revenue bonds to be authorized:(a) Provisions of the type described in Section 14474.1.(b) Provisions for classes of revenue bonds having different priority in the receipt of available transportation improvement fee revenues.(c) Provisions for the investment of proceeds of the revenue bonds or of the moneys received for repayment of the revenue bonds.(d) Provisions setting aside reserves or sinking funds, and the regulation and disposition thereof.(e) Limitations on the issuance of additional revenue bonds, the terms upon which additional revenue bonds may be issued and secured, and the refunding of outstanding revenue bonds.(f) The procedure, if any, by which the terms of any contract with revenue bondholders may be amended or abrogated, the amount of revenue bonds and the holders thereof that are required to give consent thereto, and the manner in which the consent may be given.(g) Definitions of acts or omissions to act that constitute a default in the duties of the state to holders of the revenue bonds, and provisions on the rights and remedies of the holders in the event of a default.14474.3. The revenue bonds shall be authorized by resolution or resolutions of the committee, shall be in the form, shall bear the date or dates, and shall mature at the time or times, as the issuing instrument may provide, except that no revenue bond may mature more than 40 years from the date of its issue. The revenue bonds shall bear interest at fixed or variable rate or rates, be in the denominations, be in the form, be executed in the manner, be payable in the medium of payment at the place or places within or without the state, be subject to the terms of redemption and tender for purchase and contain the terms and conditions, that the issuing instrument may provide. The committee may authorize the Treasurer, upon those terms and conditions that may be fixed by the committee or determined by the Treasurer, to sell the revenue bonds at public or private sale at, above, or below the par value. The committee may authorize the Treasurer to do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.4. (a) Notwithstanding Section 13340 or any other law, the amounts deposited in the State Highway and SHOPP TIF Account and pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the Treasurer, as trustee or cotrustee under the issuing instrument, for the purposes of, and in accordance with, this chapter, and the amounts deposited in the State Highway and SHOPP TIF Account that have not been pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the department, for the purposes of, and in accordance with paragraph (1) of subdivision (h) of Section 2032 of the Streets and Highways Code, subject to the terms of the issuing instrument for any outstanding revenue bonds.(b) Moneys in the State Highway and SHOPP TIF Account may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.5. (a) The committee may provide for the issuance and sale of refunding revenue bonds to refund any outstanding revenue bonds, and to fund necessary reserves for principal and interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the refunding revenue bonds.(b) The proceeds of any revenue bonds issued for the purpose of refunding of outstanding bonds may, at the discretion of the committee, be applied to the purchase or redemption before maturity or retirement at maturity of the outstanding bonds on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof, or paid to a third person to assume the obligation to make those payments, and may, pending that application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on any date or dates as may be determined by the committee.14474.6. Whenever the committee deems that it will increase the salability or the price of the revenue bonds to obtain, before or after sale, a legal opinion, other than that of the Attorney General, as to the validity or tax-exempt nature of the revenue bonds, the committee may obtain that legal opinion. Payment for those legal services shall be made from the proceeds of the sale of the revenue bonds.14474.7. (a) The Treasurer may employ financial, engineering, or transportation consultants or advisers, underwriters, and accountants as may be necessary in the Treasurers judgment in connection with the issuance and sale of any revenue bonds. Payment for these services may be made out of the proceeds of the sale of the revenue bonds.(b) The Treasurer may do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.8. Revenue bonds issued under this chapter are a legal investment for any state special or trust fund notwithstanding any law limiting the investments that may be made by the special or trust fund. The revenue bonds shall be legal investments in which all public officers and public bodies of the state, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings and loan associations, savings banks and savings associations, and investment companies, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons authorized to invest in revenue bonds or in other obligations of the state, may properly and legally invest funds, including capital, in their control or belonging to them. The revenue bonds may be used as security for public deposits. The revenue bonds are also securities that may properly and legally be deposited with and received by all public officers and bodies of state or any agency or political subdivision of the state and all municipalities and public corporations for any purpose for which the deposit of revenue bonds or other obligations of the state is authorized by law, including deposits to secured public funds.14474.9. Notwithstanding any other law, revenue bonds issued in accordance with this chapter are not and shall not be deemed to constitute a debt or liability of the state, or of any political subdivision of the state, and are not and shall not be deemed to be a pledge of the full faith and credit of the state, or of any political subdivision of the state, but shall be payable solely from the funds and revenues pledged therefor under the issuing instrument. All the revenue bonds shall contain on their face a statement to the effect that the State of California is not and shall not be obligated to pay the principal, or the interest on the revenue bonds, except from the funds and revenues pledged therefor under the issuing instrument, and that neither the faith and credit nor the taxing power of the State of California or of any of its political subdivisions is pledged or shall be pledged to the payment of the principal or interest on the revenue bonds. The issuance of revenue bonds in accordance with this chapter shall not directly or indirectly or contingently obligate the state, or any political subdivision of the state, to levy or to pledge any form of taxation whatsoever or to make any appropriation for their payment from the General Fund of the state.14474.10. Any bonds issued in accordance with this chapter, their transfer, and income therefrom shall at all times be free from taxation of every kind by the state and by all political subdivisions of the state.14474.11. The Legislature finds and declares that the expenditure of bond funds pursuant to this chapter does not constitute the use of bond proceeds or other indebtedness to pay a year-end state budget deficit, as prohibited by subdivision (c) of Section 1.3 of Article XVI of the California Constitution.14474.12. The state hereby covenants with the holders from time to time of any revenue bonds issued pursuant to this chapter, and with those parties who may enter into ancillary obligations pursuant to this chapter, that it will not alter, amend, or restrict the provisions of this section, Section 14474.4, Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code, and Sections 2031 and 2032 of the Streets and Highways Code in any manner that would materially adversely impair the interests of those bondholders or parties for so long as any revenue bonds or ancillary obligations remain outstanding. The committee may include this covenant in the issuing instrument.14474.13. An action to determine the validity of any revenue bond authorized to be issued pursuant to this chapter, and any ancillary obligations or other contracts related to those bonds, may be brought in accordance with Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. For the purposes of Section 860 of the Code of Civil Procedure, any action initiated pursuant to this section shall be brought in the Superior Court of the County of Sacramento.14474.14. This article provides a complete, additional, and alternative method for performing the acts authorized by this article and shall be construed as supplemental and additional to powers conferred by other laws; provided, however, that the issuance of the revenue bonds and refunding bonds and the execution of any agreements under this article are not subject to, and need not comply with, the requirements of any other law applicable to the issuance of those revenue bonds or refunding bonds and the execution of those agreements, including, but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). |
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| 69 | | - | CHAPTER 6. Transportation Improvement Fee Revenue Bonds Article 1. Legislative Findings and Declarations14470. The Legislature hereby finds and declares all of the following:(a) Upon the passage of Senate Bill 1 of the 201718 Regular Session (Senate Bill 1), it was found, at that time, that the state faced a fifty-nine-billion-dollar ($59,000,000,000) shortfall over a 10-year period to adequately maintain the existing state highway system in order to keep the system in a basic state of good repair.(b) Additionally, upon the passage of Senate Bill 1, it was further found that California motorists were spending seventeen billion dollars ($17,000,000,000) annually in extra maintenance and car repair bills, which is more than seven hundred dollars ($700) per driver, due to the states poorly maintained roads.(c) Improving the condition of the states road system will have a positive impact on the economy as it lowers the transportation costs of doing business, reduces congestion impacts for employees, and protects property values in the state.(d) The federal government estimates that increased spending on infrastructure creates more than 13,000 jobs per one billion dollars ($1,000,000,000) spent.(e) Well-maintained roads benefit all users, not just drivers, as roads are used for all modes of transport, whether motor vehicles, transit, bicycles, or pedestrians.(f) Well-maintained roads additionally provide significant health benefits and prevent injuries and death due to crashes caused by poorly maintained infrastructure.(g) With the enactment of Senate Bill 1, otherwise known as the Road Repair and Accountability Act of 2017, the Legislature created a comprehensive funding package to address improvements to Californias transportation system.(h) One of the revenue sources created under the Road Repair and Accountability Act of 2017 was a new transportation improvement fee imposed under the Vehicle License Fee Law.(i) The new transportation improvement fee may only be used for transportation purposes pursuant to subdivision (d) of Section 11051 of the Revenue and Taxation Code and Section 1 of Article XIX D of the California Constitution.(j) A portion of the proceeds of the new transportation improvement fee are deposited into the Road Maintenance and Rehabilitation Account in the State Transportation Fund for use on deferred maintenance and road rehabilitation projects on the state highway system.(k) Using revenue bonds of the State of California to finance eligible state highway system transportation projects can greatly accelerate projects and can result in significant cost savings to the state, since those transportation projects can be completed at present-day costs.(l) Funding transportation projects with revenue bonds can also deliver projects to the public significantly sooner than traditional funding mechanisms.(m) Furthermore, accelerating transportation projects with revenue bonds will result in the timely creation of well-paid jobs and stimulate the states economy, which is currently experiencing a significant downturn as a result of the COVID-19 pandemic.(n) Therefore, it is in the best interest of the state to develop these new and innovative methods for funding and accelerating critical transportation projects. Article 2. Definitions14471. Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.14471.1. (a) Ancillary obligation means an obligation of the state entered into in connection with any revenue bonds issued in accordance with this chapter, including the following:(1) A credit enhancement or liquidity agreement, including any credit enhancement or liquidity agreement in the form of bond insurance, letter of credit, standby bond purchase agreement, reimbursement agreement, liquidity facility, surety bond, or other similar arrangement.(2) A remarketing agreement.(3) A broker-dealer agreement or other agreement relating to the marketing of the revenue bonds.(4) An interest rate or other type of swap or hedging contract.(5) An investment agreement, forward purchase agreement, or similar structured investment contract.(b) Committee means the Transportation Improvement Fee Finance Committee created pursuant to Section 14473.(c) Designated project means a project that has been designated for accelerated construction by the department in accordance with this chapter.(d) Issuing Instrument means any resolution, trust agreement, indenture, certificate, or other instrument authorizing the issuance of revenue bonds in accordance with this chapter and providing for their security and repayment.(e) Revenue bonds or bonds means revenue bonds of the state issued in accordance with this chapter.(f) State Highway and SHOPP TIF Account means the account created pursuant to subparagraph (A) of paragraph (1) of subdivision (i) of Section 2032 of the Streets and Highways Code.(g) Transportation improvement fee means the transportation improvement fee imposed pursuant to Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code.(h) Trustee means the Treasurer and, at the option of the Treasurer, any cotrustee which is a national bank, bank or trust company within or without the state, acting as trustee or cotrustee for any issue of revenue bonds in accordance with this chapter and, if there is more than one issue of bonds, the term means the trustee for each issue of bonds, respectively. If there are cotrustees for an issue of bonds, trustee means those cotrustees collectively. Article 3. Selection of Projects14472. (a) The department may designate projects to be funded from the proceeds of revenue bonds that are included in the State Highway Operation and Protection Program prepared pursuant to Section 14526.5 and adopted on May 13, 2020, and that have completed environmental clearance and project design.(b) When the department anticipates the issuance of new revenue bonds and, in conjunction with the commission, makes a written request in that regard, the department, in conjunction with the Treasurers office, shall prepare an analysis of the bonding capacity of transportation improvement fee revenues deposited in the State Highway and SHOPP TIF Account and expected to be available to fund designated projects. The bonding capacity determined pursuant to this subdivision shall not impact, reduce, or otherwise modify the allocation of revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount and continuously appropriated pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code.14472.1. (a) Upon taking the actions authorized under this article, the department may request the committee to authorize the issuance of revenue bonds to provide funds for the designated projects.(b) On or before April 1 of each year, the department shall prepare and submit an annual report regarding the preceding calendar year to the Governor and the Legislature. Each report shall compile and detail the total amount of outstanding debt issued pursuant to this chapter and the projects funded by that outstanding debt. A report to be submitted to the Legislature pursuant to this subdivision shall be submitted in compliance with Section 9795.14472.2. On or before October 1 of each year, the department shall report to the Governor, the Department of Finance, the Legislative Analysts Office, and the chairs of the transportation committees in the Assembly and Senate on the amount of revenue bonds that the department intends to request that the committee issue for the subsequent fiscal year.14472.3. Within 90 days of the effective date of this chapter, the department shall submit a list of projects to the Treasurer and the committee that are eligible to be designated pursuant to Section 14472. Article 4. Creation of the Transportation Improvement Fee Finance Committee14473. (a) The committee is hereby created solely for the purpose of authorizing the issuance and sale of the bonds and the execution and delivery of ancillary obligations authorized by this chapter, and executing and entering into an issuing instrument.(b) The committee shall consist of the Treasurer, the Controller, and the Director of Finance, or their designated representatives.(c) The Treasurer shall serve as chairperson of the committee.(d) A majority of the committee may act for the committee.(e) The Attorney General shall be the legal counsel for the committee. With the approval of the Attorney General, the committee may employ any legal counsel that in its judgment is necessary or advisable to enable it to carry out its duties and functions, including, but not limited to, the employment of any bond counsel deemed advisable in connection with the issuance and sale of revenue bonds.(f) A member, officer, or agent of the committee shall not be subject to personal liability on any revenue bonds or ancillary obligations issued or entered into in accordance with this chapter or for any acts or omissions of members, officers, or agents in carrying out the powers and duties conferred by this chapter.(g) The members of the committee shall serve without compensation. Article 5. Issuance of Revenue Bonds14474. (a) Revenue bonds may be issued in accordance with this chapter on a tax-exempt or taxable basis in a principal amount not to exceed five billion dollars ($5,000,000,000), excluding refunding bonds and excluding any net original issuance premium derived from the sale of the bonds, to finance or refinance designated projects and to fund necessary reserves for principal and interest, capitalized interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the revenue bonds.(b) The State TIF Revenue Bond Fund is hereby created within the State Treasury and, notwithstanding Section 13340 or any other law, continuously appropriated, without regard to fiscal years, to the department and the Treasurer for the purposes of, and in accordance with, this chapter. Accounts and subaccounts may be created within the fund as needed.(c) There shall be paid into the State TIF Revenue Bond Fund the net proceeds derived from the issuance of revenue bonds in accordance with this chapter.(d) Moneys in the State TIF Revenue Bond Fund may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.1. In order to provide security for repayment of the revenue bonds and ancillary obligations, the committee may include in an issuing instrument provisions pledging all or a portion of the interests of the state in the State Highway and SHOPP TIF Account and any moneys in that account and any accounts established under the issuing instrument and the moneys on deposit in those accounts designated by the committee to the payment of principal of, and interest and premium on, the revenue bonds and the payment of ancillary obligations, for as long as any revenue bonds or ancillary obligations remain outstanding. The committee shall not pledge any portion of the allocation of revenues pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code or, in any other way, impact, modify, or reduce that allocation. The pledge shall be governed by Chapter 5.5 (commencing with Section 5450) of Division 6 of Title 1. The pledge described in this section shall constitute a pledge of collateral within the meaning of subdivision (b) of Section 5450. The issuing instrument shall constitute a pledge document for purposes of Section 5451, as defined in Section 5450.14474.2. Revenue bonds may be issued from time to time pursuant to an issuing instrument, including an issuing instrument entered into between the committee and a trustee. The issuing instrument may contain any of the following provisions, which shall be a part of the contract with the holders of the revenue bonds to be authorized:(a) Provisions of the type described in Section 14474.1.(b) Provisions for classes of revenue bonds having different priority in the receipt of available transportation improvement fee revenues.(c) Provisions for the investment of proceeds of the revenue bonds or of the moneys received for repayment of the revenue bonds.(d) Provisions setting aside reserves or sinking funds, and the regulation and disposition thereof.(e) Limitations on the issuance of additional revenue bonds, the terms upon which additional revenue bonds may be issued and secured, and the refunding of outstanding revenue bonds.(f) The procedure, if any, by which the terms of any contract with revenue bondholders may be amended or abrogated, the amount of revenue bonds and the holders thereof that are required to give consent thereto, and the manner in which the consent may be given.(g) Definitions of acts or omissions to act that constitute a default in the duties of the state to holders of the revenue bonds, and provisions on the rights and remedies of the holders in the event of a default.14474.3. The revenue bonds shall be authorized by resolution or resolutions of the committee, shall be in the form, shall bear the date or dates, and shall mature at the time or times, as the issuing instrument may provide, except that no revenue bond may mature more than 40 years from the date of its issue. The revenue bonds shall bear interest at fixed or variable rate or rates, be in the denominations, be in the form, be executed in the manner, be payable in the medium of payment at the place or places within or without the state, be subject to the terms of redemption and tender for purchase and contain the terms and conditions, that the issuing instrument may provide. The committee may authorize the Treasurer, upon those terms and conditions that may be fixed by the committee or determined by the Treasurer, to sell the revenue bonds at public or private sale at, above, or below the par value. The committee may authorize the Treasurer to do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.4. (a) Notwithstanding Section 13340 or any other law, the amounts deposited in the State Highway and SHOPP TIF Account and pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the Treasurer, as trustee or cotrustee under the issuing instrument, for the purposes of, and in accordance with, this chapter, and the amounts deposited in the State Highway and SHOPP TIF Account that have not been pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the department, for the purposes of, and in accordance with paragraph (1) of subdivision (h) of Section 2032 of the Streets and Highways Code, subject to the terms of the issuing instrument for any outstanding revenue bonds.(b) Moneys in the State Highway and SHOPP TIF Account may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.5. (a) The committee may provide for the issuance and sale of refunding revenue bonds to refund any outstanding revenue bonds, and to fund necessary reserves for principal and interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the refunding revenue bonds.(b) The proceeds of any revenue bonds issued for the purpose of refunding of outstanding bonds may, at the discretion of the committee, be applied to the purchase or redemption before maturity or retirement at maturity of the outstanding bonds on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof, or paid to a third person to assume the obligation to make those payments, and may, pending that application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on any date or dates as may be determined by the committee.14474.6. Whenever the committee deems that it will increase the salability or the price of the revenue bonds to obtain, before or after sale, a legal opinion, other than that of the Attorney General, as to the validity or tax-exempt nature of the revenue bonds, the committee may obtain that legal opinion. Payment for those legal services shall be made from the proceeds of the sale of the revenue bonds.14474.7. (a) The Treasurer may employ financial, engineering, or transportation consultants or advisers, underwriters, and accountants as may be necessary in the Treasurers judgment in connection with the issuance and sale of any revenue bonds. Payment for these services may be made out of the proceeds of the sale of the revenue bonds.(b) The Treasurer may do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.8. Revenue bonds issued under this chapter are a legal investment for any state special or trust fund notwithstanding any law limiting the investments that may be made by the special or trust fund. The revenue bonds shall be legal investments in which all public officers and public bodies of the state, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings and loan associations, savings banks and savings associations, and investment companies, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons authorized to invest in revenue bonds or in other obligations of the state, may properly and legally invest funds, including capital, in their control or belonging to them. The revenue bonds may be used as security for public deposits. The revenue bonds are also securities that may properly and legally be deposited with and received by all public officers and bodies of state or any agency or political subdivision of the state and all municipalities and public corporations for any purpose for which the deposit of revenue bonds or other obligations of the state is authorized by law, including deposits to secured public funds.14474.9. Notwithstanding any other law, revenue bonds issued in accordance with this chapter are not and shall not be deemed to constitute a debt or liability of the state, or of any political subdivision of the state, and are not and shall not be deemed to be a pledge of the full faith and credit of the state, or of any political subdivision of the state, but shall be payable solely from the funds and revenues pledged therefor under the issuing instrument. All the revenue bonds shall contain on their face a statement to the effect that the State of California is not and shall not be obligated to pay the principal, or the interest on the revenue bonds, except from the funds and revenues pledged therefor under the issuing instrument, and that neither the faith and credit nor the taxing power of the State of California or of any of its political subdivisions is pledged or shall be pledged to the payment of the principal or interest on the revenue bonds. The issuance of revenue bonds in accordance with this chapter shall not directly or indirectly or contingently obligate the state, or any political subdivision of the state, to levy or to pledge any form of taxation whatsoever or to make any appropriation for their payment from the General Fund of the state.14474.10. Any bonds issued in accordance with this chapter, their transfer, and income therefrom shall at all times be free from taxation of every kind by the state and by all political subdivisions of the state.14474.11. The Legislature finds and declares that the expenditure of bond funds pursuant to this chapter does not constitute the use of bond proceeds or other indebtedness to pay a year-end state budget deficit, as prohibited by subdivision (c) of Section 1.3 of Article XVI of the California Constitution.14474.12. The state hereby covenants with the holders from time to time of any revenue bonds issued pursuant to this chapter, and with those parties who may enter into ancillary obligations pursuant to this chapter, that it will not alter, amend, or restrict the provisions of this section, Section 14474.4, Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code, and Sections 2031 and 2032 of the Streets and Highways Code in any manner that would materially adversely impair the interests of those bondholders or parties for so long as any revenue bonds or ancillary obligations remain outstanding. The committee may include this covenant in the issuing instrument.14474.13. An action to determine the validity of any revenue bond authorized to be issued pursuant to this chapter, and any ancillary obligations or other contracts related to those bonds, may be brought in accordance with Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. For the purposes of Section 860 of the Code of Civil Procedure, any action initiated pursuant to this section shall be brought in the Superior Court of the County of Sacramento.14474.14. This article provides a complete, additional, and alternative method for performing the acts authorized by this article and shall be construed as supplemental and additional to powers conferred by other laws; provided, however, that the issuance of the revenue bonds and refunding bonds and the execution of any agreements under this article are not subject to, and need not comply with, the requirements of any other law applicable to the issuance of those revenue bonds or refunding bonds and the execution of those agreements, including, but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). |
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| 66 | + | CHAPTER 6. Transportation Improvement Fee Revenue Bonds Article 1. Legislative Findings and Declarations14470. The Legislature hereby finds and declares all of the following:(a) Upon the passage of Senate Bill 1 of the 201718 Regular Session (Senate Bill 1), it was found, at that time, that the state faced a fifty-nine-billion-dollar ($59,000,000,000) shortfall over a 10-year period to adequately maintain the existing state highway system in order to keep the system in a basic state of good repair.(b) Additionally, upon the passage of Senate Bill 1, it was further found that California motorists were spending seventeen billion dollars ($17,000,000,000) annually in extra maintenance and car repair bills, which is more than seven hundred dollars ($700) per driver, due to the states poorly maintained roads.(c) Improving the condition of the states road system will have a positive impact on the economy as it lowers the transportation costs of doing business, reduces congestion impacts for employees, and protects property values in the state.(d) The federal government estimates that increased spending on infrastructure creates more than 13,000 jobs per one billion dollars ($1,000,000,000) spent.(e) Well-maintained roads benefit all users, not just drivers, as roads are used for all modes of transport, whether motor vehicles, transit, bicycles, or pedestrians.(f) Well-maintained roads additionally provide significant health benefits and prevent injuries and death due to crashes caused by poorly maintained infrastructure.(g) With the enactment of Senate Bill 1, otherwise known as the Road Repair and Accountability Act of 2017, the Legislature created a comprehensive funding package to address improvements to Californias transportation system.(h) One of the revenue sources created under the Road Repair and Accountability Act of 2017 was a new transportation improvement fee imposed under the Vehicle License Fee Law.(i) The new transportation improvement fee may only be used for transportation purposes pursuant to subdivision (d) of Section 11051 of the Revenue and Taxation Code and Section 1 of Article XIX D of the California Constitution.(j) A portion of the proceeds of the new transportation improvement fee are deposited into the Road Maintenance and Rehabilitation Account in the State Transportation Fund for use on deferred maintenance and road rehabilitation projects on the state highway system.(k) Using revenue bonds of the State of California to finance eligible state highway system transportation projects can greatly accelerate projects and can result in significant cost savings to the state, since those transportation projects can be completed at present-day costs.(l) Funding transportation projects with revenue bonds can also deliver projects to the public significantly sooner than traditional funding mechanisms.(m) Furthermore, accelerating transportation projects with revenue bonds will result in the timely creation of well-paid jobs and stimulate the states economy, which is currently experiencing a significant downturn as a result of the COVID-19 pandemic.(n) Therefore, it is in the best interest of the state to develop these new and innovative methods for funding and accelerating critical transportation projects. Article 2. Definitions14471. Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.14471.1. (a) Ancillary obligation means an obligation of the state entered into in connection with any revenue bonds issued in accordance with this chapter, including the following:(1) A credit enhancement or liquidity agreement, including any credit enhancement or liquidity agreement in the form of bond insurance, letter of credit, standby bond purchase agreement, reimbursement agreement, liquidity facility, surety bond, or other similar arrangement.(2) A remarketing agreement.(3) A broker-dealer agreement or other agreement relating to the marketing of the revenue bonds.(4) An interest rate or other type of swap or hedging contract.(5) An investment agreement, forward purchase agreement, or similar structured investment contract.(b) Committee means the Transportation Improvement Fee Finance Committee created pursuant to Section 14473.(c) Designated project means a project that has been designated for accelerated construction by the department in accordance with this chapter.(d) Issuing Instrument means any resolution, trust agreement, indenture, certificate, or other instrument authorizing the issuance of revenue bonds in accordance with this chapter and providing for their security and repayment.(e) Revenue bonds or bonds means revenue bonds of the state issued in accordance with this chapter.(f) State Highway and SHOPP TIF Account means the account created pursuant to subparagraph (A) of paragraph (1) of subdivision (i) of Section 2032 of the Streets and Highways Code.(g) Transportation improvement fee means the transportation improvement fee imposed pursuant to Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code.(h) Trustee means the Treasurer and, at the option of the Treasurer, any cotrustee which is a national bank, bank or trust company within or without the state, acting as trustee or cotrustee for any issue of revenue bonds in accordance with this chapter and, if there is more than one issue of bonds, the term means the trustee for each issue of bonds, respectively. If there are cotrustees for an issue of bonds, trustee means those cotrustees collectively. Article 3. Selection of Projects14472. (a) The department maydesignate may designate projects to be funded from the proceeds of revenue bonds that are included in the State Highway Operation and Protection Program prepared pursuant to Section 14526.5 and adopted on May 13, 2020, and that have completed environmental clearance and project design.(b) When the department anticipates the issuance of new revenue bonds and, in conjunction with the commission, makes a written request in that regard, the department, in conjunction with the Treasurers office, shall prepare an analysis of the bonding capacity of transportation improvement fee revenues deposited in the State Highway and SHOPP TIF Account and expected to be available to fund designated projects. The bonding capacity determined pursuant to this subdivision shall not impact, reduce, or otherwise modify the allocation of revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount and continuously appropriated pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code.14472.1. (a) Upon taking the actions authorized under this article, the department may request the committee to authorize the issuance of revenue bonds to provide funds for the designated projects.(b) On or before April 1 of each year, the department shall prepare and submit an annual report regarding the preceding calendar year to the Governor and the Legislature. Each report shall compile and detail the total amount of outstanding debt issued pursuant to this chapter and the projects funded by that outstanding debt. A report to be submitted to the Legislature pursuant to this subdivision shall be submitted in compliance with Section 9795.14472.2. On or before October 1 of each year, the department shall report to the Governor, the Department of Finance, the Legislative Analysts Office, and the chairs of the transportation committees in the Assembly and Senate on the amount of revenue bonds that the department intends to request that the committee issue for the subsequent fiscal year.14472.3. Within 90 days of the effective date of this chapter, the department shall submit a list of projects to the Treasurer and the committee that are eligible to be designated pursuant to Section 14472. Article 4. Creation of the Transportation Improvement Fee Finance Committee14473. (a) The committee is hereby created solely for the purpose of authorizing the issuance and sale of the bonds and the execution and delivery of ancillary obligations authorized by this chapter, and executing and entering into an issuing instrument.(b) The committee shall consist of the Treasurer, the Controller, and the Director of Finance, or their designated representatives.(c) The Treasurer shall serve as chairperson of the committee.(d) A majority of the committee may act for the committee.(e) The Attorney General shall be the legal counsel for the committee. With the approval of the Attorney General, the committee may employ any legal counsel that in its judgment is necessary or advisable to enable it to carry out its duties and functions, including, but not limited to, the employment of any bond counsel deemed advisable in connection with the issuance and sale of revenue bonds.(f) A member, officer, or agent of the committee shall not be subject to personal liability on any revenue bonds or ancillary obligations issued or entered into in accordance with this chapter or for any acts or omissions of members, officers, or agents in carrying out the powers and duties conferred by this chapter.(g) The members of the committee shall serve without compensation. Article 5. Issuance of Revenue Bonds14474. (a) Revenue bonds may be issued in accordance with this chapter on a tax-exempt or taxable basis in a principal amount not to exceed five billion dollars ($5,000,000,000), excluding refunding bonds and excluding any net original issuance premium derived from the sale of the bonds, to finance or refinance designated projects and to fund necessary reserves for principal and interest, capitalized interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the revenue bonds.(b) The State TIF Revenue Bond Fund is hereby created within the State Treasury and, notwithstanding Section 13340 or any other law, continuously appropriated, without regard to fiscal years, to the department and the Treasurer for the purposes of, and in accordance with, this chapter. Accounts and subaccounts may be created within the fund as needed.(c) There shall be paid into the State TIF Revenue Bond Fund the net proceeds derived from the issuance of revenue bonds in accordance with this chapter.(d) Moneys in the State TIF Revenue Bond Fund may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.1. In order to provide security for repayment of the revenue bonds and ancillary obligations, the committee may include in an issuing instrument provisions pledging all or a portion of the interests of the state in the State Highway and SHOPP TIF Account and any moneys in that account and any accounts established under the issuing instrument and the moneys on deposit in those accounts designated by the committee to the payment of principal of, and interest and premium on, the revenue bonds and the payment of ancillary obligations, for as long as any revenue bonds or ancillary obligations remain outstanding. The committee shall not pledge any portion of the allocation of revenues pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code or, in any other way, impact, modify, or reduce that allocation. The pledge shall be governed by Chapter 5.5 (commencing with Section 5450) of Division 6 of Title 1. The pledge described in this section shall constitute a pledge of collateral within the meaning of subdivision (b) of Section 5450. The issuing instrument shall constitute a pledge document for purposes of Section 5451, as defined in Section 5450.14474.2. Revenue bonds may be issued from time to time pursuant to an issuing instrument, including an issuing instrument entered into between the committee and a trustee. The issuing instrument may contain any of the following provisions, which shall be a part of the contract with the holders of the revenue bonds to be authorized:(a) Provisions of the type described in Section 14474.1.(b) Provisions for classes of revenue bonds having different priority in the receipt of available transportation improvement fee revenues.(c) Provisions for the investment of proceeds of the revenue bonds or of the moneys received for repayment of the revenue bonds.(d) Provisions setting aside reserves or sinking funds, and the regulation and disposition thereof.(e) Limitations on the issuance of additional revenue bonds, the terms upon which additional revenue bonds may be issued and secured, and the refunding of outstanding revenue bonds.(f) The procedure, if any, by which the terms of any contract with revenue bondholders may be amended or abrogated, the amount of revenue bonds and the holders thereof that are required to give consent thereto, and the manner in which the consent may be given.(g) Definitions of acts or omissions to act that constitute a default in the duties of the state to holders of the revenue bonds, and provisions on the rights and remedies of the holders in the event of a default.14474.3. The revenue bonds shall be authorized by resolution or resolutions of the committee, shall be in the form, shall bear the date or dates, and shall mature at the time or times, as the issuing instrument may provide, except that no revenue bond may mature more than 40 years from the date of its issue. The revenue bonds shall bear interest at fixed or variable rate or rates, be in the denominations, be in the form, be executed in the manner, be payable in the medium of payment at the place or places within or without the state, be subject to the terms of redemption and tender for purchase and contain the terms and conditions, that the issuing instrument may provide. The committee may authorize the Treasurer, upon those terms and conditions that may be fixed by the committee or determined by the Treasurer, to sell the revenue bonds at public or private sale at, above, or below the par value. The committee may authorize the Treasurer to do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.4. (a) Notwithstanding Section 13340 or any other law, the amounts deposited in the State Highway and SHOPP TIF Account and pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the Treasurer, as trustee or cotrustee under the issuing instrument, for the purposes of, and in accordance with, this chapter, and the amounts deposited in the State Highway and SHOPP TIF Account that have not been pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the department, for the purposes of, and in accordance with paragraph (1) of subdivision (h) of Section 2032 of the Streets and Highways Code, subject to the terms of the issuing instrument for any outstanding revenue bonds.(b) Moneys in the State Highway and SHOPP TIF Account may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.5. (a) The committee may provide for the issuance and sale of refunding revenue bonds to refund any outstanding revenue bonds, and to fund necessary reserves for principal and interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the refunding revenue bonds.(b) The proceeds of any revenue bonds issued for the purpose of refunding of outstanding bonds may, at the discretion of the committee, be applied to the purchase or redemption before maturity or retirement at maturity of the outstanding bonds on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof, or paid to a third person to assume the obligation to make those payments, and may, pending that application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on any date or dates as may be determined by the committee.14474.6. Whenever the committee deems that it will increase the salability or the price of the revenue bonds to obtain, before or after sale, a legal opinion, other than that of the Attorney General, as to the validity or tax-exempt nature of the revenue bonds, the committee may obtain that legal opinion. Payment for those legal services shall be made from the proceeds of the sale of the revenue bonds.14474.7. (a) The Treasurer may employ financial, engineering, or transportation consultants or advisers, underwriters, and accountants as may be necessary in the Treasurers judgment in connection with the issuance and sale of any revenue bonds. Payment for these services may be made out of the proceeds of the sale of the revenue bonds.(b) The Treasurer may do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.8. Revenue bonds issued under this chapter are a legal investment for any state special or trust fund notwithstanding any law limiting the investments that may be made by the special or trust fund. The revenue bonds shall be legal investments in which all public officers and public bodies of the state, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings and loan associations, savings banks and savings associations, and investment companies, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons authorized to invest in revenue bonds or in other obligations of the state, may properly and legally invest funds, including capital, in their control or belonging to them. The revenue bonds may be used as security for public deposits. The revenue bonds are also securities that may properly and legally be deposited with and received by all public officers and bodies of state or any agency or political subdivision of the state and all municipalities and public corporations for any purpose for which the deposit of revenue bonds or other obligations of the state is authorized by law, including deposits to secured public funds.14474.9. Notwithstanding any other law, revenue bonds issued in accordance with this chapter are not and shall not be deemed to constitute a debt or liability of the state, or of any political subdivision of the state, and are not and shall not be deemed to be a pledge of the full faith and credit of the state, or of any political subdivision of the state, but shall be payable solely from the funds and revenues pledged therefor under the issuing instrument. All the revenue bonds shall contain on their face a statement to the effect that the State of California is not and shall not be obligated to pay the principal, or the interest on the revenue bonds, except from the funds and revenues pledged therefor under the issuing instrument, and that neither the faith and credit nor the taxing power of the State of California or of any of its political subdivisions is pledged or shall be pledged to the payment of the principal or interest on the revenue bonds. The issuance of revenue bonds in accordance with this chapter shall not directly or indirectly or contingently obligate the state, or any political subdivision of the state, to levy or to pledge any form of taxation whatsoever or to make any appropriation for their payment from the General Fund of the state.14474.10. Any bonds issued in accordance with this chapter, their transfer, and income therefrom shall at all times be free from taxation of every kind by the state and by all political subdivisions of the state.14474.11. The Legislature finds and declares that the expenditure of bond funds pursuant to this chapter does not constitute the use of bond proceeds or other indebtedness to pay a year-end state budget deficit, as prohibited by subdivision (c) of Section 1.3 of Article XVI of the California Constitution.14474.12. The state hereby covenants with the holders from time to time of any revenue bonds issued pursuant to this chapter, and with those parties who may enter into ancillary obligations pursuant to this chapter, that it will not alter, amend, or restrict the provisions of this section, Section 14474.4, Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code, and Sections 2031 and 2032 of the Streets and Highways Code in any manner that would materially adversely impair the interests of those bondholders or parties for so long as any revenue bonds or ancillary obligations remain outstanding. The committee may include this covenant in the issuing instrument.14474.13. An action to determine the validity of any revenue bond authorized to be issued pursuant to this chapter, and any ancillary obligations or other contracts related to those bonds, may be brought in accordance with Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. For the purposes of Section 860 of the Code of Civil Procedure, any action initiated pursuant to this section shall be brought in the Superior Court of the County of Sacramento.14474.14. This article provides a complete, additional, and alternative method for performing the acts authorized by this article and shall be construed as supplemental and additional to powers conferred by other laws; provided, however, that the issuance of the revenue bonds and refunding bonds and the execution of any agreements under this article are not subject to, and need not comply with, the requirements of any other law applicable to the issuance of those revenue bonds or refunding bonds and the execution of those agreements, including, but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). |
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| 71 | | - | CHAPTER 6. Transportation Improvement Fee Revenue Bonds Article 1. Legislative Findings and Declarations14470. The Legislature hereby finds and declares all of the following:(a) Upon the passage of Senate Bill 1 of the 201718 Regular Session (Senate Bill 1), it was found, at that time, that the state faced a fifty-nine-billion-dollar ($59,000,000,000) shortfall over a 10-year period to adequately maintain the existing state highway system in order to keep the system in a basic state of good repair.(b) Additionally, upon the passage of Senate Bill 1, it was further found that California motorists were spending seventeen billion dollars ($17,000,000,000) annually in extra maintenance and car repair bills, which is more than seven hundred dollars ($700) per driver, due to the states poorly maintained roads.(c) Improving the condition of the states road system will have a positive impact on the economy as it lowers the transportation costs of doing business, reduces congestion impacts for employees, and protects property values in the state.(d) The federal government estimates that increased spending on infrastructure creates more than 13,000 jobs per one billion dollars ($1,000,000,000) spent.(e) Well-maintained roads benefit all users, not just drivers, as roads are used for all modes of transport, whether motor vehicles, transit, bicycles, or pedestrians.(f) Well-maintained roads additionally provide significant health benefits and prevent injuries and death due to crashes caused by poorly maintained infrastructure.(g) With the enactment of Senate Bill 1, otherwise known as the Road Repair and Accountability Act of 2017, the Legislature created a comprehensive funding package to address improvements to Californias transportation system.(h) One of the revenue sources created under the Road Repair and Accountability Act of 2017 was a new transportation improvement fee imposed under the Vehicle License Fee Law.(i) The new transportation improvement fee may only be used for transportation purposes pursuant to subdivision (d) of Section 11051 of the Revenue and Taxation Code and Section 1 of Article XIX D of the California Constitution.(j) A portion of the proceeds of the new transportation improvement fee are deposited into the Road Maintenance and Rehabilitation Account in the State Transportation Fund for use on deferred maintenance and road rehabilitation projects on the state highway system.(k) Using revenue bonds of the State of California to finance eligible state highway system transportation projects can greatly accelerate projects and can result in significant cost savings to the state, since those transportation projects can be completed at present-day costs.(l) Funding transportation projects with revenue bonds can also deliver projects to the public significantly sooner than traditional funding mechanisms.(m) Furthermore, accelerating transportation projects with revenue bonds will result in the timely creation of well-paid jobs and stimulate the states economy, which is currently experiencing a significant downturn as a result of the COVID-19 pandemic.(n) Therefore, it is in the best interest of the state to develop these new and innovative methods for funding and accelerating critical transportation projects. Article 2. Definitions14471. Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.14471.1. (a) Ancillary obligation means an obligation of the state entered into in connection with any revenue bonds issued in accordance with this chapter, including the following:(1) A credit enhancement or liquidity agreement, including any credit enhancement or liquidity agreement in the form of bond insurance, letter of credit, standby bond purchase agreement, reimbursement agreement, liquidity facility, surety bond, or other similar arrangement.(2) A remarketing agreement.(3) A broker-dealer agreement or other agreement relating to the marketing of the revenue bonds.(4) An interest rate or other type of swap or hedging contract.(5) An investment agreement, forward purchase agreement, or similar structured investment contract.(b) Committee means the Transportation Improvement Fee Finance Committee created pursuant to Section 14473.(c) Designated project means a project that has been designated for accelerated construction by the department in accordance with this chapter.(d) Issuing Instrument means any resolution, trust agreement, indenture, certificate, or other instrument authorizing the issuance of revenue bonds in accordance with this chapter and providing for their security and repayment.(e) Revenue bonds or bonds means revenue bonds of the state issued in accordance with this chapter.(f) State Highway and SHOPP TIF Account means the account created pursuant to subparagraph (A) of paragraph (1) of subdivision (i) of Section 2032 of the Streets and Highways Code.(g) Transportation improvement fee means the transportation improvement fee imposed pursuant to Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code.(h) Trustee means the Treasurer and, at the option of the Treasurer, any cotrustee which is a national bank, bank or trust company within or without the state, acting as trustee or cotrustee for any issue of revenue bonds in accordance with this chapter and, if there is more than one issue of bonds, the term means the trustee for each issue of bonds, respectively. If there are cotrustees for an issue of bonds, trustee means those cotrustees collectively. Article 3. Selection of Projects14472. (a) The department may designate projects to be funded from the proceeds of revenue bonds that are included in the State Highway Operation and Protection Program prepared pursuant to Section 14526.5 and adopted on May 13, 2020, and that have completed environmental clearance and project design.(b) When the department anticipates the issuance of new revenue bonds and, in conjunction with the commission, makes a written request in that regard, the department, in conjunction with the Treasurers office, shall prepare an analysis of the bonding capacity of transportation improvement fee revenues deposited in the State Highway and SHOPP TIF Account and expected to be available to fund designated projects. The bonding capacity determined pursuant to this subdivision shall not impact, reduce, or otherwise modify the allocation of revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount and continuously appropriated pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code.14472.1. (a) Upon taking the actions authorized under this article, the department may request the committee to authorize the issuance of revenue bonds to provide funds for the designated projects.(b) On or before April 1 of each year, the department shall prepare and submit an annual report regarding the preceding calendar year to the Governor and the Legislature. Each report shall compile and detail the total amount of outstanding debt issued pursuant to this chapter and the projects funded by that outstanding debt. A report to be submitted to the Legislature pursuant to this subdivision shall be submitted in compliance with Section 9795.14472.2. On or before October 1 of each year, the department shall report to the Governor, the Department of Finance, the Legislative Analysts Office, and the chairs of the transportation committees in the Assembly and Senate on the amount of revenue bonds that the department intends to request that the committee issue for the subsequent fiscal year.14472.3. Within 90 days of the effective date of this chapter, the department shall submit a list of projects to the Treasurer and the committee that are eligible to be designated pursuant to Section 14472. Article 4. Creation of the Transportation Improvement Fee Finance Committee14473. (a) The committee is hereby created solely for the purpose of authorizing the issuance and sale of the bonds and the execution and delivery of ancillary obligations authorized by this chapter, and executing and entering into an issuing instrument.(b) The committee shall consist of the Treasurer, the Controller, and the Director of Finance, or their designated representatives.(c) The Treasurer shall serve as chairperson of the committee.(d) A majority of the committee may act for the committee.(e) The Attorney General shall be the legal counsel for the committee. With the approval of the Attorney General, the committee may employ any legal counsel that in its judgment is necessary or advisable to enable it to carry out its duties and functions, including, but not limited to, the employment of any bond counsel deemed advisable in connection with the issuance and sale of revenue bonds.(f) A member, officer, or agent of the committee shall not be subject to personal liability on any revenue bonds or ancillary obligations issued or entered into in accordance with this chapter or for any acts or omissions of members, officers, or agents in carrying out the powers and duties conferred by this chapter.(g) The members of the committee shall serve without compensation. Article 5. Issuance of Revenue Bonds14474. (a) Revenue bonds may be issued in accordance with this chapter on a tax-exempt or taxable basis in a principal amount not to exceed five billion dollars ($5,000,000,000), excluding refunding bonds and excluding any net original issuance premium derived from the sale of the bonds, to finance or refinance designated projects and to fund necessary reserves for principal and interest, capitalized interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the revenue bonds.(b) The State TIF Revenue Bond Fund is hereby created within the State Treasury and, notwithstanding Section 13340 or any other law, continuously appropriated, without regard to fiscal years, to the department and the Treasurer for the purposes of, and in accordance with, this chapter. Accounts and subaccounts may be created within the fund as needed.(c) There shall be paid into the State TIF Revenue Bond Fund the net proceeds derived from the issuance of revenue bonds in accordance with this chapter.(d) Moneys in the State TIF Revenue Bond Fund may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.1. In order to provide security for repayment of the revenue bonds and ancillary obligations, the committee may include in an issuing instrument provisions pledging all or a portion of the interests of the state in the State Highway and SHOPP TIF Account and any moneys in that account and any accounts established under the issuing instrument and the moneys on deposit in those accounts designated by the committee to the payment of principal of, and interest and premium on, the revenue bonds and the payment of ancillary obligations, for as long as any revenue bonds or ancillary obligations remain outstanding. The committee shall not pledge any portion of the allocation of revenues pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code or, in any other way, impact, modify, or reduce that allocation. The pledge shall be governed by Chapter 5.5 (commencing with Section 5450) of Division 6 of Title 1. The pledge described in this section shall constitute a pledge of collateral within the meaning of subdivision (b) of Section 5450. The issuing instrument shall constitute a pledge document for purposes of Section 5451, as defined in Section 5450.14474.2. Revenue bonds may be issued from time to time pursuant to an issuing instrument, including an issuing instrument entered into between the committee and a trustee. The issuing instrument may contain any of the following provisions, which shall be a part of the contract with the holders of the revenue bonds to be authorized:(a) Provisions of the type described in Section 14474.1.(b) Provisions for classes of revenue bonds having different priority in the receipt of available transportation improvement fee revenues.(c) Provisions for the investment of proceeds of the revenue bonds or of the moneys received for repayment of the revenue bonds.(d) Provisions setting aside reserves or sinking funds, and the regulation and disposition thereof.(e) Limitations on the issuance of additional revenue bonds, the terms upon which additional revenue bonds may be issued and secured, and the refunding of outstanding revenue bonds.(f) The procedure, if any, by which the terms of any contract with revenue bondholders may be amended or abrogated, the amount of revenue bonds and the holders thereof that are required to give consent thereto, and the manner in which the consent may be given.(g) Definitions of acts or omissions to act that constitute a default in the duties of the state to holders of the revenue bonds, and provisions on the rights and remedies of the holders in the event of a default.14474.3. The revenue bonds shall be authorized by resolution or resolutions of the committee, shall be in the form, shall bear the date or dates, and shall mature at the time or times, as the issuing instrument may provide, except that no revenue bond may mature more than 40 years from the date of its issue. The revenue bonds shall bear interest at fixed or variable rate or rates, be in the denominations, be in the form, be executed in the manner, be payable in the medium of payment at the place or places within or without the state, be subject to the terms of redemption and tender for purchase and contain the terms and conditions, that the issuing instrument may provide. The committee may authorize the Treasurer, upon those terms and conditions that may be fixed by the committee or determined by the Treasurer, to sell the revenue bonds at public or private sale at, above, or below the par value. The committee may authorize the Treasurer to do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.4. (a) Notwithstanding Section 13340 or any other law, the amounts deposited in the State Highway and SHOPP TIF Account and pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the Treasurer, as trustee or cotrustee under the issuing instrument, for the purposes of, and in accordance with, this chapter, and the amounts deposited in the State Highway and SHOPP TIF Account that have not been pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the department, for the purposes of, and in accordance with paragraph (1) of subdivision (h) of Section 2032 of the Streets and Highways Code, subject to the terms of the issuing instrument for any outstanding revenue bonds.(b) Moneys in the State Highway and SHOPP TIF Account may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.5. (a) The committee may provide for the issuance and sale of refunding revenue bonds to refund any outstanding revenue bonds, and to fund necessary reserves for principal and interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the refunding revenue bonds.(b) The proceeds of any revenue bonds issued for the purpose of refunding of outstanding bonds may, at the discretion of the committee, be applied to the purchase or redemption before maturity or retirement at maturity of the outstanding bonds on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof, or paid to a third person to assume the obligation to make those payments, and may, pending that application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on any date or dates as may be determined by the committee.14474.6. Whenever the committee deems that it will increase the salability or the price of the revenue bonds to obtain, before or after sale, a legal opinion, other than that of the Attorney General, as to the validity or tax-exempt nature of the revenue bonds, the committee may obtain that legal opinion. Payment for those legal services shall be made from the proceeds of the sale of the revenue bonds.14474.7. (a) The Treasurer may employ financial, engineering, or transportation consultants or advisers, underwriters, and accountants as may be necessary in the Treasurers judgment in connection with the issuance and sale of any revenue bonds. Payment for these services may be made out of the proceeds of the sale of the revenue bonds.(b) The Treasurer may do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.8. Revenue bonds issued under this chapter are a legal investment for any state special or trust fund notwithstanding any law limiting the investments that may be made by the special or trust fund. The revenue bonds shall be legal investments in which all public officers and public bodies of the state, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings and loan associations, savings banks and savings associations, and investment companies, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons authorized to invest in revenue bonds or in other obligations of the state, may properly and legally invest funds, including capital, in their control or belonging to them. The revenue bonds may be used as security for public deposits. The revenue bonds are also securities that may properly and legally be deposited with and received by all public officers and bodies of state or any agency or political subdivision of the state and all municipalities and public corporations for any purpose for which the deposit of revenue bonds or other obligations of the state is authorized by law, including deposits to secured public funds.14474.9. Notwithstanding any other law, revenue bonds issued in accordance with this chapter are not and shall not be deemed to constitute a debt or liability of the state, or of any political subdivision of the state, and are not and shall not be deemed to be a pledge of the full faith and credit of the state, or of any political subdivision of the state, but shall be payable solely from the funds and revenues pledged therefor under the issuing instrument. All the revenue bonds shall contain on their face a statement to the effect that the State of California is not and shall not be obligated to pay the principal, or the interest on the revenue bonds, except from the funds and revenues pledged therefor under the issuing instrument, and that neither the faith and credit nor the taxing power of the State of California or of any of its political subdivisions is pledged or shall be pledged to the payment of the principal or interest on the revenue bonds. The issuance of revenue bonds in accordance with this chapter shall not directly or indirectly or contingently obligate the state, or any political subdivision of the state, to levy or to pledge any form of taxation whatsoever or to make any appropriation for their payment from the General Fund of the state.14474.10. Any bonds issued in accordance with this chapter, their transfer, and income therefrom shall at all times be free from taxation of every kind by the state and by all political subdivisions of the state.14474.11. The Legislature finds and declares that the expenditure of bond funds pursuant to this chapter does not constitute the use of bond proceeds or other indebtedness to pay a year-end state budget deficit, as prohibited by subdivision (c) of Section 1.3 of Article XVI of the California Constitution.14474.12. The state hereby covenants with the holders from time to time of any revenue bonds issued pursuant to this chapter, and with those parties who may enter into ancillary obligations pursuant to this chapter, that it will not alter, amend, or restrict the provisions of this section, Section 14474.4, Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code, and Sections 2031 and 2032 of the Streets and Highways Code in any manner that would materially adversely impair the interests of those bondholders or parties for so long as any revenue bonds or ancillary obligations remain outstanding. The committee may include this covenant in the issuing instrument.14474.13. An action to determine the validity of any revenue bond authorized to be issued pursuant to this chapter, and any ancillary obligations or other contracts related to those bonds, may be brought in accordance with Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. For the purposes of Section 860 of the Code of Civil Procedure, any action initiated pursuant to this section shall be brought in the Superior Court of the County of Sacramento.14474.14. This article provides a complete, additional, and alternative method for performing the acts authorized by this article and shall be construed as supplemental and additional to powers conferred by other laws; provided, however, that the issuance of the revenue bonds and refunding bonds and the execution of any agreements under this article are not subject to, and need not comply with, the requirements of any other law applicable to the issuance of those revenue bonds or refunding bonds and the execution of those agreements, including, but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). |
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| 68 | + | CHAPTER 6. Transportation Improvement Fee Revenue Bonds Article 1. Legislative Findings and Declarations14470. The Legislature hereby finds and declares all of the following:(a) Upon the passage of Senate Bill 1 of the 201718 Regular Session (Senate Bill 1), it was found, at that time, that the state faced a fifty-nine-billion-dollar ($59,000,000,000) shortfall over a 10-year period to adequately maintain the existing state highway system in order to keep the system in a basic state of good repair.(b) Additionally, upon the passage of Senate Bill 1, it was further found that California motorists were spending seventeen billion dollars ($17,000,000,000) annually in extra maintenance and car repair bills, which is more than seven hundred dollars ($700) per driver, due to the states poorly maintained roads.(c) Improving the condition of the states road system will have a positive impact on the economy as it lowers the transportation costs of doing business, reduces congestion impacts for employees, and protects property values in the state.(d) The federal government estimates that increased spending on infrastructure creates more than 13,000 jobs per one billion dollars ($1,000,000,000) spent.(e) Well-maintained roads benefit all users, not just drivers, as roads are used for all modes of transport, whether motor vehicles, transit, bicycles, or pedestrians.(f) Well-maintained roads additionally provide significant health benefits and prevent injuries and death due to crashes caused by poorly maintained infrastructure.(g) With the enactment of Senate Bill 1, otherwise known as the Road Repair and Accountability Act of 2017, the Legislature created a comprehensive funding package to address improvements to Californias transportation system.(h) One of the revenue sources created under the Road Repair and Accountability Act of 2017 was a new transportation improvement fee imposed under the Vehicle License Fee Law.(i) The new transportation improvement fee may only be used for transportation purposes pursuant to subdivision (d) of Section 11051 of the Revenue and Taxation Code and Section 1 of Article XIX D of the California Constitution.(j) A portion of the proceeds of the new transportation improvement fee are deposited into the Road Maintenance and Rehabilitation Account in the State Transportation Fund for use on deferred maintenance and road rehabilitation projects on the state highway system.(k) Using revenue bonds of the State of California to finance eligible state highway system transportation projects can greatly accelerate projects and can result in significant cost savings to the state, since those transportation projects can be completed at present-day costs.(l) Funding transportation projects with revenue bonds can also deliver projects to the public significantly sooner than traditional funding mechanisms.(m) Furthermore, accelerating transportation projects with revenue bonds will result in the timely creation of well-paid jobs and stimulate the states economy, which is currently experiencing a significant downturn as a result of the COVID-19 pandemic.(n) Therefore, it is in the best interest of the state to develop these new and innovative methods for funding and accelerating critical transportation projects. Article 2. Definitions14471. Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.14471.1. (a) Ancillary obligation means an obligation of the state entered into in connection with any revenue bonds issued in accordance with this chapter, including the following:(1) A credit enhancement or liquidity agreement, including any credit enhancement or liquidity agreement in the form of bond insurance, letter of credit, standby bond purchase agreement, reimbursement agreement, liquidity facility, surety bond, or other similar arrangement.(2) A remarketing agreement.(3) A broker-dealer agreement or other agreement relating to the marketing of the revenue bonds.(4) An interest rate or other type of swap or hedging contract.(5) An investment agreement, forward purchase agreement, or similar structured investment contract.(b) Committee means the Transportation Improvement Fee Finance Committee created pursuant to Section 14473.(c) Designated project means a project that has been designated for accelerated construction by the department in accordance with this chapter.(d) Issuing Instrument means any resolution, trust agreement, indenture, certificate, or other instrument authorizing the issuance of revenue bonds in accordance with this chapter and providing for their security and repayment.(e) Revenue bonds or bonds means revenue bonds of the state issued in accordance with this chapter.(f) State Highway and SHOPP TIF Account means the account created pursuant to subparagraph (A) of paragraph (1) of subdivision (i) of Section 2032 of the Streets and Highways Code.(g) Transportation improvement fee means the transportation improvement fee imposed pursuant to Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code.(h) Trustee means the Treasurer and, at the option of the Treasurer, any cotrustee which is a national bank, bank or trust company within or without the state, acting as trustee or cotrustee for any issue of revenue bonds in accordance with this chapter and, if there is more than one issue of bonds, the term means the trustee for each issue of bonds, respectively. If there are cotrustees for an issue of bonds, trustee means those cotrustees collectively. Article 3. Selection of Projects14472. (a) The department maydesignate may designate projects to be funded from the proceeds of revenue bonds that are included in the State Highway Operation and Protection Program prepared pursuant to Section 14526.5 and adopted on May 13, 2020, and that have completed environmental clearance and project design.(b) When the department anticipates the issuance of new revenue bonds and, in conjunction with the commission, makes a written request in that regard, the department, in conjunction with the Treasurers office, shall prepare an analysis of the bonding capacity of transportation improvement fee revenues deposited in the State Highway and SHOPP TIF Account and expected to be available to fund designated projects. The bonding capacity determined pursuant to this subdivision shall not impact, reduce, or otherwise modify the allocation of revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount and continuously appropriated pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code.14472.1. (a) Upon taking the actions authorized under this article, the department may request the committee to authorize the issuance of revenue bonds to provide funds for the designated projects.(b) On or before April 1 of each year, the department shall prepare and submit an annual report regarding the preceding calendar year to the Governor and the Legislature. Each report shall compile and detail the total amount of outstanding debt issued pursuant to this chapter and the projects funded by that outstanding debt. A report to be submitted to the Legislature pursuant to this subdivision shall be submitted in compliance with Section 9795.14472.2. On or before October 1 of each year, the department shall report to the Governor, the Department of Finance, the Legislative Analysts Office, and the chairs of the transportation committees in the Assembly and Senate on the amount of revenue bonds that the department intends to request that the committee issue for the subsequent fiscal year.14472.3. Within 90 days of the effective date of this chapter, the department shall submit a list of projects to the Treasurer and the committee that are eligible to be designated pursuant to Section 14472. Article 4. Creation of the Transportation Improvement Fee Finance Committee14473. (a) The committee is hereby created solely for the purpose of authorizing the issuance and sale of the bonds and the execution and delivery of ancillary obligations authorized by this chapter, and executing and entering into an issuing instrument.(b) The committee shall consist of the Treasurer, the Controller, and the Director of Finance, or their designated representatives.(c) The Treasurer shall serve as chairperson of the committee.(d) A majority of the committee may act for the committee.(e) The Attorney General shall be the legal counsel for the committee. With the approval of the Attorney General, the committee may employ any legal counsel that in its judgment is necessary or advisable to enable it to carry out its duties and functions, including, but not limited to, the employment of any bond counsel deemed advisable in connection with the issuance and sale of revenue bonds.(f) A member, officer, or agent of the committee shall not be subject to personal liability on any revenue bonds or ancillary obligations issued or entered into in accordance with this chapter or for any acts or omissions of members, officers, or agents in carrying out the powers and duties conferred by this chapter.(g) The members of the committee shall serve without compensation. Article 5. Issuance of Revenue Bonds14474. (a) Revenue bonds may be issued in accordance with this chapter on a tax-exempt or taxable basis in a principal amount not to exceed five billion dollars ($5,000,000,000), excluding refunding bonds and excluding any net original issuance premium derived from the sale of the bonds, to finance or refinance designated projects and to fund necessary reserves for principal and interest, capitalized interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the revenue bonds.(b) The State TIF Revenue Bond Fund is hereby created within the State Treasury and, notwithstanding Section 13340 or any other law, continuously appropriated, without regard to fiscal years, to the department and the Treasurer for the purposes of, and in accordance with, this chapter. Accounts and subaccounts may be created within the fund as needed.(c) There shall be paid into the State TIF Revenue Bond Fund the net proceeds derived from the issuance of revenue bonds in accordance with this chapter.(d) Moneys in the State TIF Revenue Bond Fund may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.1. In order to provide security for repayment of the revenue bonds and ancillary obligations, the committee may include in an issuing instrument provisions pledging all or a portion of the interests of the state in the State Highway and SHOPP TIF Account and any moneys in that account and any accounts established under the issuing instrument and the moneys on deposit in those accounts designated by the committee to the payment of principal of, and interest and premium on, the revenue bonds and the payment of ancillary obligations, for as long as any revenue bonds or ancillary obligations remain outstanding. The committee shall not pledge any portion of the allocation of revenues pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code or, in any other way, impact, modify, or reduce that allocation. The pledge shall be governed by Chapter 5.5 (commencing with Section 5450) of Division 6 of Title 1. The pledge described in this section shall constitute a pledge of collateral within the meaning of subdivision (b) of Section 5450. The issuing instrument shall constitute a pledge document for purposes of Section 5451, as defined in Section 5450.14474.2. Revenue bonds may be issued from time to time pursuant to an issuing instrument, including an issuing instrument entered into between the committee and a trustee. The issuing instrument may contain any of the following provisions, which shall be a part of the contract with the holders of the revenue bonds to be authorized:(a) Provisions of the type described in Section 14474.1.(b) Provisions for classes of revenue bonds having different priority in the receipt of available transportation improvement fee revenues.(c) Provisions for the investment of proceeds of the revenue bonds or of the moneys received for repayment of the revenue bonds.(d) Provisions setting aside reserves or sinking funds, and the regulation and disposition thereof.(e) Limitations on the issuance of additional revenue bonds, the terms upon which additional revenue bonds may be issued and secured, and the refunding of outstanding revenue bonds.(f) The procedure, if any, by which the terms of any contract with revenue bondholders may be amended or abrogated, the amount of revenue bonds and the holders thereof that are required to give consent thereto, and the manner in which the consent may be given.(g) Definitions of acts or omissions to act that constitute a default in the duties of the state to holders of the revenue bonds, and provisions on the rights and remedies of the holders in the event of a default.14474.3. The revenue bonds shall be authorized by resolution or resolutions of the committee, shall be in the form, shall bear the date or dates, and shall mature at the time or times, as the issuing instrument may provide, except that no revenue bond may mature more than 40 years from the date of its issue. The revenue bonds shall bear interest at fixed or variable rate or rates, be in the denominations, be in the form, be executed in the manner, be payable in the medium of payment at the place or places within or without the state, be subject to the terms of redemption and tender for purchase and contain the terms and conditions, that the issuing instrument may provide. The committee may authorize the Treasurer, upon those terms and conditions that may be fixed by the committee or determined by the Treasurer, to sell the revenue bonds at public or private sale at, above, or below the par value. The committee may authorize the Treasurer to do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.4. (a) Notwithstanding Section 13340 or any other law, the amounts deposited in the State Highway and SHOPP TIF Account and pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the Treasurer, as trustee or cotrustee under the issuing instrument, for the purposes of, and in accordance with, this chapter, and the amounts deposited in the State Highway and SHOPP TIF Account that have not been pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the department, for the purposes of, and in accordance with paragraph (1) of subdivision (h) of Section 2032 of the Streets and Highways Code, subject to the terms of the issuing instrument for any outstanding revenue bonds.(b) Moneys in the State Highway and SHOPP TIF Account may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.5. (a) The committee may provide for the issuance and sale of refunding revenue bonds to refund any outstanding revenue bonds, and to fund necessary reserves for principal and interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the refunding revenue bonds.(b) The proceeds of any revenue bonds issued for the purpose of refunding of outstanding bonds may, at the discretion of the committee, be applied to the purchase or redemption before maturity or retirement at maturity of the outstanding bonds on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof, or paid to a third person to assume the obligation to make those payments, and may, pending that application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on any date or dates as may be determined by the committee.14474.6. Whenever the committee deems that it will increase the salability or the price of the revenue bonds to obtain, before or after sale, a legal opinion, other than that of the Attorney General, as to the validity or tax-exempt nature of the revenue bonds, the committee may obtain that legal opinion. Payment for those legal services shall be made from the proceeds of the sale of the revenue bonds.14474.7. (a) The Treasurer may employ financial, engineering, or transportation consultants or advisers, underwriters, and accountants as may be necessary in the Treasurers judgment in connection with the issuance and sale of any revenue bonds. Payment for these services may be made out of the proceeds of the sale of the revenue bonds.(b) The Treasurer may do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.8. Revenue bonds issued under this chapter are a legal investment for any state special or trust fund notwithstanding any law limiting the investments that may be made by the special or trust fund. The revenue bonds shall be legal investments in which all public officers and public bodies of the state, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings and loan associations, savings banks and savings associations, and investment companies, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons authorized to invest in revenue bonds or in other obligations of the state, may properly and legally invest funds, including capital, in their control or belonging to them. The revenue bonds may be used as security for public deposits. The revenue bonds are also securities that may properly and legally be deposited with and received by all public officers and bodies of state or any agency or political subdivision of the state and all municipalities and public corporations for any purpose for which the deposit of revenue bonds or other obligations of the state is authorized by law, including deposits to secured public funds.14474.9. Notwithstanding any other law, revenue bonds issued in accordance with this chapter are not and shall not be deemed to constitute a debt or liability of the state, or of any political subdivision of the state, and are not and shall not be deemed to be a pledge of the full faith and credit of the state, or of any political subdivision of the state, but shall be payable solely from the funds and revenues pledged therefor under the issuing instrument. All the revenue bonds shall contain on their face a statement to the effect that the State of California is not and shall not be obligated to pay the principal, or the interest on the revenue bonds, except from the funds and revenues pledged therefor under the issuing instrument, and that neither the faith and credit nor the taxing power of the State of California or of any of its political subdivisions is pledged or shall be pledged to the payment of the principal or interest on the revenue bonds. The issuance of revenue bonds in accordance with this chapter shall not directly or indirectly or contingently obligate the state, or any political subdivision of the state, to levy or to pledge any form of taxation whatsoever or to make any appropriation for their payment from the General Fund of the state.14474.10. Any bonds issued in accordance with this chapter, their transfer, and income therefrom shall at all times be free from taxation of every kind by the state and by all political subdivisions of the state.14474.11. The Legislature finds and declares that the expenditure of bond funds pursuant to this chapter does not constitute the use of bond proceeds or other indebtedness to pay a year-end state budget deficit, as prohibited by subdivision (c) of Section 1.3 of Article XVI of the California Constitution.14474.12. The state hereby covenants with the holders from time to time of any revenue bonds issued pursuant to this chapter, and with those parties who may enter into ancillary obligations pursuant to this chapter, that it will not alter, amend, or restrict the provisions of this section, Section 14474.4, Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code, and Sections 2031 and 2032 of the Streets and Highways Code in any manner that would materially adversely impair the interests of those bondholders or parties for so long as any revenue bonds or ancillary obligations remain outstanding. The committee may include this covenant in the issuing instrument.14474.13. An action to determine the validity of any revenue bond authorized to be issued pursuant to this chapter, and any ancillary obligations or other contracts related to those bonds, may be brought in accordance with Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. For the purposes of Section 860 of the Code of Civil Procedure, any action initiated pursuant to this section shall be brought in the Superior Court of the County of Sacramento.14474.14. This article provides a complete, additional, and alternative method for performing the acts authorized by this article and shall be construed as supplemental and additional to powers conferred by other laws; provided, however, that the issuance of the revenue bonds and refunding bonds and the execution of any agreements under this article are not subject to, and need not comply with, the requirements of any other law applicable to the issuance of those revenue bonds or refunding bonds and the execution of those agreements, including, but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). |
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| 72 | 69 | | |
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| 73 | 70 | | CHAPTER 6. Transportation Improvement Fee Revenue Bonds |
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| 74 | 71 | | |
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| 75 | 72 | | CHAPTER 6. Transportation Improvement Fee Revenue Bonds |
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| 76 | 73 | | |
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| 77 | 74 | | Article 1. Legislative Findings and Declarations14470. The Legislature hereby finds and declares all of the following:(a) Upon the passage of Senate Bill 1 of the 201718 Regular Session (Senate Bill 1), it was found, at that time, that the state faced a fifty-nine-billion-dollar ($59,000,000,000) shortfall over a 10-year period to adequately maintain the existing state highway system in order to keep the system in a basic state of good repair.(b) Additionally, upon the passage of Senate Bill 1, it was further found that California motorists were spending seventeen billion dollars ($17,000,000,000) annually in extra maintenance and car repair bills, which is more than seven hundred dollars ($700) per driver, due to the states poorly maintained roads.(c) Improving the condition of the states road system will have a positive impact on the economy as it lowers the transportation costs of doing business, reduces congestion impacts for employees, and protects property values in the state.(d) The federal government estimates that increased spending on infrastructure creates more than 13,000 jobs per one billion dollars ($1,000,000,000) spent.(e) Well-maintained roads benefit all users, not just drivers, as roads are used for all modes of transport, whether motor vehicles, transit, bicycles, or pedestrians.(f) Well-maintained roads additionally provide significant health benefits and prevent injuries and death due to crashes caused by poorly maintained infrastructure.(g) With the enactment of Senate Bill 1, otherwise known as the Road Repair and Accountability Act of 2017, the Legislature created a comprehensive funding package to address improvements to Californias transportation system.(h) One of the revenue sources created under the Road Repair and Accountability Act of 2017 was a new transportation improvement fee imposed under the Vehicle License Fee Law.(i) The new transportation improvement fee may only be used for transportation purposes pursuant to subdivision (d) of Section 11051 of the Revenue and Taxation Code and Section 1 of Article XIX D of the California Constitution.(j) A portion of the proceeds of the new transportation improvement fee are deposited into the Road Maintenance and Rehabilitation Account in the State Transportation Fund for use on deferred maintenance and road rehabilitation projects on the state highway system.(k) Using revenue bonds of the State of California to finance eligible state highway system transportation projects can greatly accelerate projects and can result in significant cost savings to the state, since those transportation projects can be completed at present-day costs.(l) Funding transportation projects with revenue bonds can also deliver projects to the public significantly sooner than traditional funding mechanisms.(m) Furthermore, accelerating transportation projects with revenue bonds will result in the timely creation of well-paid jobs and stimulate the states economy, which is currently experiencing a significant downturn as a result of the COVID-19 pandemic.(n) Therefore, it is in the best interest of the state to develop these new and innovative methods for funding and accelerating critical transportation projects. |
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| 78 | 75 | | |
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| 79 | 76 | | Article 1. Legislative Findings and Declarations |
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| 80 | 77 | | |
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| 81 | 78 | | Article 1. Legislative Findings and Declarations |
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| 82 | 79 | | |
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| 83 | 80 | | 14470. The Legislature hereby finds and declares all of the following:(a) Upon the passage of Senate Bill 1 of the 201718 Regular Session (Senate Bill 1), it was found, at that time, that the state faced a fifty-nine-billion-dollar ($59,000,000,000) shortfall over a 10-year period to adequately maintain the existing state highway system in order to keep the system in a basic state of good repair.(b) Additionally, upon the passage of Senate Bill 1, it was further found that California motorists were spending seventeen billion dollars ($17,000,000,000) annually in extra maintenance and car repair bills, which is more than seven hundred dollars ($700) per driver, due to the states poorly maintained roads.(c) Improving the condition of the states road system will have a positive impact on the economy as it lowers the transportation costs of doing business, reduces congestion impacts for employees, and protects property values in the state.(d) The federal government estimates that increased spending on infrastructure creates more than 13,000 jobs per one billion dollars ($1,000,000,000) spent.(e) Well-maintained roads benefit all users, not just drivers, as roads are used for all modes of transport, whether motor vehicles, transit, bicycles, or pedestrians.(f) Well-maintained roads additionally provide significant health benefits and prevent injuries and death due to crashes caused by poorly maintained infrastructure.(g) With the enactment of Senate Bill 1, otherwise known as the Road Repair and Accountability Act of 2017, the Legislature created a comprehensive funding package to address improvements to Californias transportation system.(h) One of the revenue sources created under the Road Repair and Accountability Act of 2017 was a new transportation improvement fee imposed under the Vehicle License Fee Law.(i) The new transportation improvement fee may only be used for transportation purposes pursuant to subdivision (d) of Section 11051 of the Revenue and Taxation Code and Section 1 of Article XIX D of the California Constitution.(j) A portion of the proceeds of the new transportation improvement fee are deposited into the Road Maintenance and Rehabilitation Account in the State Transportation Fund for use on deferred maintenance and road rehabilitation projects on the state highway system.(k) Using revenue bonds of the State of California to finance eligible state highway system transportation projects can greatly accelerate projects and can result in significant cost savings to the state, since those transportation projects can be completed at present-day costs.(l) Funding transportation projects with revenue bonds can also deliver projects to the public significantly sooner than traditional funding mechanisms.(m) Furthermore, accelerating transportation projects with revenue bonds will result in the timely creation of well-paid jobs and stimulate the states economy, which is currently experiencing a significant downturn as a result of the COVID-19 pandemic.(n) Therefore, it is in the best interest of the state to develop these new and innovative methods for funding and accelerating critical transportation projects. |
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| 84 | 81 | | |
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| 85 | 82 | | |
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| 86 | 83 | | |
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| 87 | 84 | | 14470. The Legislature hereby finds and declares all of the following: |
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| 88 | 85 | | |
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| 89 | 86 | | (a) Upon the passage of Senate Bill 1 of the 201718 Regular Session (Senate Bill 1), it was found, at that time, that the state faced a fifty-nine-billion-dollar ($59,000,000,000) shortfall over a 10-year period to adequately maintain the existing state highway system in order to keep the system in a basic state of good repair. |
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| 90 | 87 | | |
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| 91 | 88 | | (b) Additionally, upon the passage of Senate Bill 1, it was further found that California motorists were spending seventeen billion dollars ($17,000,000,000) annually in extra maintenance and car repair bills, which is more than seven hundred dollars ($700) per driver, due to the states poorly maintained roads. |
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| 92 | 89 | | |
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| 93 | 90 | | (c) Improving the condition of the states road system will have a positive impact on the economy as it lowers the transportation costs of doing business, reduces congestion impacts for employees, and protects property values in the state. |
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| 94 | 91 | | |
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| 95 | 92 | | (d) The federal government estimates that increased spending on infrastructure creates more than 13,000 jobs per one billion dollars ($1,000,000,000) spent. |
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| 96 | 93 | | |
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| 97 | 94 | | (e) Well-maintained roads benefit all users, not just drivers, as roads are used for all modes of transport, whether motor vehicles, transit, bicycles, or pedestrians. |
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| 98 | 95 | | |
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| 99 | 96 | | (f) Well-maintained roads additionally provide significant health benefits and prevent injuries and death due to crashes caused by poorly maintained infrastructure. |
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| 100 | 97 | | |
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| 101 | 98 | | (g) With the enactment of Senate Bill 1, otherwise known as the Road Repair and Accountability Act of 2017, the Legislature created a comprehensive funding package to address improvements to Californias transportation system. |
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| 102 | 99 | | |
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| 103 | 100 | | (h) One of the revenue sources created under the Road Repair and Accountability Act of 2017 was a new transportation improvement fee imposed under the Vehicle License Fee Law. |
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| 104 | 101 | | |
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| 105 | 102 | | (i) The new transportation improvement fee may only be used for transportation purposes pursuant to subdivision (d) of Section 11051 of the Revenue and Taxation Code and Section 1 of Article XIX D of the California Constitution. |
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| 106 | 103 | | |
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| 107 | 104 | | (j) A portion of the proceeds of the new transportation improvement fee are deposited into the Road Maintenance and Rehabilitation Account in the State Transportation Fund for use on deferred maintenance and road rehabilitation projects on the state highway system. |
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| 108 | 105 | | |
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| 109 | 106 | | (k) Using revenue bonds of the State of California to finance eligible state highway system transportation projects can greatly accelerate projects and can result in significant cost savings to the state, since those transportation projects can be completed at present-day costs. |
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| 110 | 107 | | |
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| 111 | 108 | | (l) Funding transportation projects with revenue bonds can also deliver projects to the public significantly sooner than traditional funding mechanisms. |
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| 112 | 109 | | |
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| 113 | 110 | | (m) Furthermore, accelerating transportation projects with revenue bonds will result in the timely creation of well-paid jobs and stimulate the states economy, which is currently experiencing a significant downturn as a result of the COVID-19 pandemic. |
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| 114 | 111 | | |
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| 115 | 112 | | (n) Therefore, it is in the best interest of the state to develop these new and innovative methods for funding and accelerating critical transportation projects. |
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| 116 | 113 | | |
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| 117 | 114 | | Article 2. Definitions14471. Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.14471.1. (a) Ancillary obligation means an obligation of the state entered into in connection with any revenue bonds issued in accordance with this chapter, including the following:(1) A credit enhancement or liquidity agreement, including any credit enhancement or liquidity agreement in the form of bond insurance, letter of credit, standby bond purchase agreement, reimbursement agreement, liquidity facility, surety bond, or other similar arrangement.(2) A remarketing agreement.(3) A broker-dealer agreement or other agreement relating to the marketing of the revenue bonds.(4) An interest rate or other type of swap or hedging contract.(5) An investment agreement, forward purchase agreement, or similar structured investment contract.(b) Committee means the Transportation Improvement Fee Finance Committee created pursuant to Section 14473.(c) Designated project means a project that has been designated for accelerated construction by the department in accordance with this chapter.(d) Issuing Instrument means any resolution, trust agreement, indenture, certificate, or other instrument authorizing the issuance of revenue bonds in accordance with this chapter and providing for their security and repayment.(e) Revenue bonds or bonds means revenue bonds of the state issued in accordance with this chapter.(f) State Highway and SHOPP TIF Account means the account created pursuant to subparagraph (A) of paragraph (1) of subdivision (i) of Section 2032 of the Streets and Highways Code.(g) Transportation improvement fee means the transportation improvement fee imposed pursuant to Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code.(h) Trustee means the Treasurer and, at the option of the Treasurer, any cotrustee which is a national bank, bank or trust company within or without the state, acting as trustee or cotrustee for any issue of revenue bonds in accordance with this chapter and, if there is more than one issue of bonds, the term means the trustee for each issue of bonds, respectively. If there are cotrustees for an issue of bonds, trustee means those cotrustees collectively. |
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| 118 | 115 | | |
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| 119 | 116 | | Article 2. Definitions |
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| 120 | 117 | | |
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| 121 | 118 | | Article 2. Definitions |
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| 122 | 119 | | |
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| 123 | 120 | | 14471. Unless the context otherwise requires, the definitions in this article govern the construction of this chapter. |
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| 124 | 121 | | |
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| 125 | 122 | | |
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| 126 | 123 | | |
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| 127 | 124 | | 14471. Unless the context otherwise requires, the definitions in this article govern the construction of this chapter. |
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| 128 | 125 | | |
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| 129 | 126 | | 14471.1. (a) Ancillary obligation means an obligation of the state entered into in connection with any revenue bonds issued in accordance with this chapter, including the following:(1) A credit enhancement or liquidity agreement, including any credit enhancement or liquidity agreement in the form of bond insurance, letter of credit, standby bond purchase agreement, reimbursement agreement, liquidity facility, surety bond, or other similar arrangement.(2) A remarketing agreement.(3) A broker-dealer agreement or other agreement relating to the marketing of the revenue bonds.(4) An interest rate or other type of swap or hedging contract.(5) An investment agreement, forward purchase agreement, or similar structured investment contract.(b) Committee means the Transportation Improvement Fee Finance Committee created pursuant to Section 14473.(c) Designated project means a project that has been designated for accelerated construction by the department in accordance with this chapter.(d) Issuing Instrument means any resolution, trust agreement, indenture, certificate, or other instrument authorizing the issuance of revenue bonds in accordance with this chapter and providing for their security and repayment.(e) Revenue bonds or bonds means revenue bonds of the state issued in accordance with this chapter.(f) State Highway and SHOPP TIF Account means the account created pursuant to subparagraph (A) of paragraph (1) of subdivision (i) of Section 2032 of the Streets and Highways Code.(g) Transportation improvement fee means the transportation improvement fee imposed pursuant to Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code.(h) Trustee means the Treasurer and, at the option of the Treasurer, any cotrustee which is a national bank, bank or trust company within or without the state, acting as trustee or cotrustee for any issue of revenue bonds in accordance with this chapter and, if there is more than one issue of bonds, the term means the trustee for each issue of bonds, respectively. If there are cotrustees for an issue of bonds, trustee means those cotrustees collectively. |
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| 130 | 127 | | |
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| 131 | 128 | | |
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| 132 | 129 | | |
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| 133 | 130 | | 14471.1. (a) Ancillary obligation means an obligation of the state entered into in connection with any revenue bonds issued in accordance with this chapter, including the following: |
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| 134 | 131 | | |
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| 135 | 132 | | (1) A credit enhancement or liquidity agreement, including any credit enhancement or liquidity agreement in the form of bond insurance, letter of credit, standby bond purchase agreement, reimbursement agreement, liquidity facility, surety bond, or other similar arrangement. |
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| 136 | 133 | | |
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| 137 | 134 | | (2) A remarketing agreement. |
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| 138 | 135 | | |
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| 139 | 136 | | (3) A broker-dealer agreement or other agreement relating to the marketing of the revenue bonds. |
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| 140 | 137 | | |
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| 141 | 138 | | (4) An interest rate or other type of swap or hedging contract. |
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| 142 | 139 | | |
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| 143 | 140 | | (5) An investment agreement, forward purchase agreement, or similar structured investment contract. |
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| 144 | 141 | | |
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| 145 | 142 | | (b) Committee means the Transportation Improvement Fee Finance Committee created pursuant to Section 14473. |
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| 146 | 143 | | |
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| 147 | 144 | | (c) Designated project means a project that has been designated for accelerated construction by the department in accordance with this chapter. |
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| 148 | 145 | | |
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| 149 | 146 | | (d) Issuing Instrument means any resolution, trust agreement, indenture, certificate, or other instrument authorizing the issuance of revenue bonds in accordance with this chapter and providing for their security and repayment. |
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| 150 | 147 | | |
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| 151 | 148 | | (e) Revenue bonds or bonds means revenue bonds of the state issued in accordance with this chapter. |
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| 152 | 149 | | |
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| 153 | 150 | | (f) State Highway and SHOPP TIF Account means the account created pursuant to subparagraph (A) of paragraph (1) of subdivision (i) of Section 2032 of the Streets and Highways Code. |
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| 154 | 151 | | |
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| 155 | 152 | | (g) Transportation improvement fee means the transportation improvement fee imposed pursuant to Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code. |
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| 156 | 153 | | |
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| 157 | 154 | | (h) Trustee means the Treasurer and, at the option of the Treasurer, any cotrustee which is a national bank, bank or trust company within or without the state, acting as trustee or cotrustee for any issue of revenue bonds in accordance with this chapter and, if there is more than one issue of bonds, the term means the trustee for each issue of bonds, respectively. If there are cotrustees for an issue of bonds, trustee means those cotrustees collectively. |
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| 158 | 155 | | |
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| 170 | 167 | | |
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| 171 | 168 | | (b) When the department anticipates the issuance of new revenue bonds and, in conjunction with the commission, makes a written request in that regard, the department, in conjunction with the Treasurers office, shall prepare an analysis of the bonding capacity of transportation improvement fee revenues deposited in the State Highway and SHOPP TIF Account and expected to be available to fund designated projects. The bonding capacity determined pursuant to this subdivision shall not impact, reduce, or otherwise modify the allocation of revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount and continuously appropriated pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code. |
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| 172 | 169 | | |
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| 173 | 170 | | 14472.1. (a) Upon taking the actions authorized under this article, the department may request the committee to authorize the issuance of revenue bonds to provide funds for the designated projects.(b) On or before April 1 of each year, the department shall prepare and submit an annual report regarding the preceding calendar year to the Governor and the Legislature. Each report shall compile and detail the total amount of outstanding debt issued pursuant to this chapter and the projects funded by that outstanding debt. A report to be submitted to the Legislature pursuant to this subdivision shall be submitted in compliance with Section 9795. |
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| 174 | 171 | | |
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| 175 | 172 | | |
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| 176 | 173 | | |
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| 177 | 174 | | 14472.1. (a) Upon taking the actions authorized under this article, the department may request the committee to authorize the issuance of revenue bonds to provide funds for the designated projects. |
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| 178 | 175 | | |
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| 179 | 176 | | (b) On or before April 1 of each year, the department shall prepare and submit an annual report regarding the preceding calendar year to the Governor and the Legislature. Each report shall compile and detail the total amount of outstanding debt issued pursuant to this chapter and the projects funded by that outstanding debt. A report to be submitted to the Legislature pursuant to this subdivision shall be submitted in compliance with Section 9795. |
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| 180 | 177 | | |
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| 181 | 178 | | 14472.2. On or before October 1 of each year, the department shall report to the Governor, the Department of Finance, the Legislative Analysts Office, and the chairs of the transportation committees in the Assembly and Senate on the amount of revenue bonds that the department intends to request that the committee issue for the subsequent fiscal year. |
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| 182 | 179 | | |
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| 183 | 180 | | |
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| 184 | 181 | | |
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| 185 | 182 | | 14472.2. On or before October 1 of each year, the department shall report to the Governor, the Department of Finance, the Legislative Analysts Office, and the chairs of the transportation committees in the Assembly and Senate on the amount of revenue bonds that the department intends to request that the committee issue for the subsequent fiscal year. |
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| 186 | 183 | | |
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| 187 | 184 | | 14472.3. Within 90 days of the effective date of this chapter, the department shall submit a list of projects to the Treasurer and the committee that are eligible to be designated pursuant to Section 14472. |
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| 188 | 185 | | |
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| 189 | 186 | | |
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| 190 | 187 | | |
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| 191 | 188 | | 14472.3. Within 90 days of the effective date of this chapter, the department shall submit a list of projects to the Treasurer and the committee that are eligible to be designated pursuant to Section 14472. |
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| 192 | 189 | | |
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| 193 | 190 | | Article 4. Creation of the Transportation Improvement Fee Finance Committee14473. (a) The committee is hereby created solely for the purpose of authorizing the issuance and sale of the bonds and the execution and delivery of ancillary obligations authorized by this chapter, and executing and entering into an issuing instrument.(b) The committee shall consist of the Treasurer, the Controller, and the Director of Finance, or their designated representatives.(c) The Treasurer shall serve as chairperson of the committee.(d) A majority of the committee may act for the committee.(e) The Attorney General shall be the legal counsel for the committee. With the approval of the Attorney General, the committee may employ any legal counsel that in its judgment is necessary or advisable to enable it to carry out its duties and functions, including, but not limited to, the employment of any bond counsel deemed advisable in connection with the issuance and sale of revenue bonds.(f) A member, officer, or agent of the committee shall not be subject to personal liability on any revenue bonds or ancillary obligations issued or entered into in accordance with this chapter or for any acts or omissions of members, officers, or agents in carrying out the powers and duties conferred by this chapter.(g) The members of the committee shall serve without compensation. |
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| 194 | 191 | | |
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| 195 | 192 | | Article 4. Creation of the Transportation Improvement Fee Finance Committee |
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| 196 | 193 | | |
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| 197 | 194 | | Article 4. Creation of the Transportation Improvement Fee Finance Committee |
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| 198 | 195 | | |
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| 199 | 196 | | 14473. (a) The committee is hereby created solely for the purpose of authorizing the issuance and sale of the bonds and the execution and delivery of ancillary obligations authorized by this chapter, and executing and entering into an issuing instrument.(b) The committee shall consist of the Treasurer, the Controller, and the Director of Finance, or their designated representatives.(c) The Treasurer shall serve as chairperson of the committee.(d) A majority of the committee may act for the committee.(e) The Attorney General shall be the legal counsel for the committee. With the approval of the Attorney General, the committee may employ any legal counsel that in its judgment is necessary or advisable to enable it to carry out its duties and functions, including, but not limited to, the employment of any bond counsel deemed advisable in connection with the issuance and sale of revenue bonds.(f) A member, officer, or agent of the committee shall not be subject to personal liability on any revenue bonds or ancillary obligations issued or entered into in accordance with this chapter or for any acts or omissions of members, officers, or agents in carrying out the powers and duties conferred by this chapter.(g) The members of the committee shall serve without compensation. |
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| 200 | 197 | | |
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| 201 | 198 | | |
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| 202 | 199 | | |
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| 203 | 200 | | 14473. (a) The committee is hereby created solely for the purpose of authorizing the issuance and sale of the bonds and the execution and delivery of ancillary obligations authorized by this chapter, and executing and entering into an issuing instrument. |
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| 204 | 201 | | |
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| 205 | 202 | | (b) The committee shall consist of the Treasurer, the Controller, and the Director of Finance, or their designated representatives. |
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| 206 | 203 | | |
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| 207 | 204 | | (c) The Treasurer shall serve as chairperson of the committee. |
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| 208 | 205 | | |
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| 209 | 206 | | (d) A majority of the committee may act for the committee. |
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| 210 | 207 | | |
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| 211 | 208 | | (e) The Attorney General shall be the legal counsel for the committee. With the approval of the Attorney General, the committee may employ any legal counsel that in its judgment is necessary or advisable to enable it to carry out its duties and functions, including, but not limited to, the employment of any bond counsel deemed advisable in connection with the issuance and sale of revenue bonds. |
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| 212 | 209 | | |
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| 213 | 210 | | (f) A member, officer, or agent of the committee shall not be subject to personal liability on any revenue bonds or ancillary obligations issued or entered into in accordance with this chapter or for any acts or omissions of members, officers, or agents in carrying out the powers and duties conferred by this chapter. |
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| 214 | 211 | | |
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| 215 | 212 | | (g) The members of the committee shall serve without compensation. |
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| 216 | 213 | | |
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| 217 | 214 | | Article 5. Issuance of Revenue Bonds14474. (a) Revenue bonds may be issued in accordance with this chapter on a tax-exempt or taxable basis in a principal amount not to exceed five billion dollars ($5,000,000,000), excluding refunding bonds and excluding any net original issuance premium derived from the sale of the bonds, to finance or refinance designated projects and to fund necessary reserves for principal and interest, capitalized interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the revenue bonds.(b) The State TIF Revenue Bond Fund is hereby created within the State Treasury and, notwithstanding Section 13340 or any other law, continuously appropriated, without regard to fiscal years, to the department and the Treasurer for the purposes of, and in accordance with, this chapter. Accounts and subaccounts may be created within the fund as needed.(c) There shall be paid into the State TIF Revenue Bond Fund the net proceeds derived from the issuance of revenue bonds in accordance with this chapter.(d) Moneys in the State TIF Revenue Bond Fund may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.1. In order to provide security for repayment of the revenue bonds and ancillary obligations, the committee may include in an issuing instrument provisions pledging all or a portion of the interests of the state in the State Highway and SHOPP TIF Account and any moneys in that account and any accounts established under the issuing instrument and the moneys on deposit in those accounts designated by the committee to the payment of principal of, and interest and premium on, the revenue bonds and the payment of ancillary obligations, for as long as any revenue bonds or ancillary obligations remain outstanding. The committee shall not pledge any portion of the allocation of revenues pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code or, in any other way, impact, modify, or reduce that allocation. The pledge shall be governed by Chapter 5.5 (commencing with Section 5450) of Division 6 of Title 1. The pledge described in this section shall constitute a pledge of collateral within the meaning of subdivision (b) of Section 5450. The issuing instrument shall constitute a pledge document for purposes of Section 5451, as defined in Section 5450.14474.2. Revenue bonds may be issued from time to time pursuant to an issuing instrument, including an issuing instrument entered into between the committee and a trustee. The issuing instrument may contain any of the following provisions, which shall be a part of the contract with the holders of the revenue bonds to be authorized:(a) Provisions of the type described in Section 14474.1.(b) Provisions for classes of revenue bonds having different priority in the receipt of available transportation improvement fee revenues.(c) Provisions for the investment of proceeds of the revenue bonds or of the moneys received for repayment of the revenue bonds.(d) Provisions setting aside reserves or sinking funds, and the regulation and disposition thereof.(e) Limitations on the issuance of additional revenue bonds, the terms upon which additional revenue bonds may be issued and secured, and the refunding of outstanding revenue bonds.(f) The procedure, if any, by which the terms of any contract with revenue bondholders may be amended or abrogated, the amount of revenue bonds and the holders thereof that are required to give consent thereto, and the manner in which the consent may be given.(g) Definitions of acts or omissions to act that constitute a default in the duties of the state to holders of the revenue bonds, and provisions on the rights and remedies of the holders in the event of a default.14474.3. The revenue bonds shall be authorized by resolution or resolutions of the committee, shall be in the form, shall bear the date or dates, and shall mature at the time or times, as the issuing instrument may provide, except that no revenue bond may mature more than 40 years from the date of its issue. The revenue bonds shall bear interest at fixed or variable rate or rates, be in the denominations, be in the form, be executed in the manner, be payable in the medium of payment at the place or places within or without the state, be subject to the terms of redemption and tender for purchase and contain the terms and conditions, that the issuing instrument may provide. The committee may authorize the Treasurer, upon those terms and conditions that may be fixed by the committee or determined by the Treasurer, to sell the revenue bonds at public or private sale at, above, or below the par value. The committee may authorize the Treasurer to do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.4. (a) Notwithstanding Section 13340 or any other law, the amounts deposited in the State Highway and SHOPP TIF Account and pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the Treasurer, as trustee or cotrustee under the issuing instrument, for the purposes of, and in accordance with, this chapter, and the amounts deposited in the State Highway and SHOPP TIF Account that have not been pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the department, for the purposes of, and in accordance with paragraph (1) of subdivision (h) of Section 2032 of the Streets and Highways Code, subject to the terms of the issuing instrument for any outstanding revenue bonds.(b) Moneys in the State Highway and SHOPP TIF Account may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority.14474.5. (a) The committee may provide for the issuance and sale of refunding revenue bonds to refund any outstanding revenue bonds, and to fund necessary reserves for principal and interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the refunding revenue bonds.(b) The proceeds of any revenue bonds issued for the purpose of refunding of outstanding bonds may, at the discretion of the committee, be applied to the purchase or redemption before maturity or retirement at maturity of the outstanding bonds on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof, or paid to a third person to assume the obligation to make those payments, and may, pending that application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on any date or dates as may be determined by the committee.14474.6. Whenever the committee deems that it will increase the salability or the price of the revenue bonds to obtain, before or after sale, a legal opinion, other than that of the Attorney General, as to the validity or tax-exempt nature of the revenue bonds, the committee may obtain that legal opinion. Payment for those legal services shall be made from the proceeds of the sale of the revenue bonds.14474.7. (a) The Treasurer may employ financial, engineering, or transportation consultants or advisers, underwriters, and accountants as may be necessary in the Treasurers judgment in connection with the issuance and sale of any revenue bonds. Payment for these services may be made out of the proceeds of the sale of the revenue bonds.(b) The Treasurer may do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds.14474.8. Revenue bonds issued under this chapter are a legal investment for any state special or trust fund notwithstanding any law limiting the investments that may be made by the special or trust fund. The revenue bonds shall be legal investments in which all public officers and public bodies of the state, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings and loan associations, savings banks and savings associations, and investment companies, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons authorized to invest in revenue bonds or in other obligations of the state, may properly and legally invest funds, including capital, in their control or belonging to them. The revenue bonds may be used as security for public deposits. The revenue bonds are also securities that may properly and legally be deposited with and received by all public officers and bodies of state or any agency or political subdivision of the state and all municipalities and public corporations for any purpose for which the deposit of revenue bonds or other obligations of the state is authorized by law, including deposits to secured public funds.14474.9. Notwithstanding any other law, revenue bonds issued in accordance with this chapter are not and shall not be deemed to constitute a debt or liability of the state, or of any political subdivision of the state, and are not and shall not be deemed to be a pledge of the full faith and credit of the state, or of any political subdivision of the state, but shall be payable solely from the funds and revenues pledged therefor under the issuing instrument. All the revenue bonds shall contain on their face a statement to the effect that the State of California is not and shall not be obligated to pay the principal, or the interest on the revenue bonds, except from the funds and revenues pledged therefor under the issuing instrument, and that neither the faith and credit nor the taxing power of the State of California or of any of its political subdivisions is pledged or shall be pledged to the payment of the principal or interest on the revenue bonds. The issuance of revenue bonds in accordance with this chapter shall not directly or indirectly or contingently obligate the state, or any political subdivision of the state, to levy or to pledge any form of taxation whatsoever or to make any appropriation for their payment from the General Fund of the state.14474.10. Any bonds issued in accordance with this chapter, their transfer, and income therefrom shall at all times be free from taxation of every kind by the state and by all political subdivisions of the state.14474.11. The Legislature finds and declares that the expenditure of bond funds pursuant to this chapter does not constitute the use of bond proceeds or other indebtedness to pay a year-end state budget deficit, as prohibited by subdivision (c) of Section 1.3 of Article XVI of the California Constitution.14474.12. The state hereby covenants with the holders from time to time of any revenue bonds issued pursuant to this chapter, and with those parties who may enter into ancillary obligations pursuant to this chapter, that it will not alter, amend, or restrict the provisions of this section, Section 14474.4, Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code, and Sections 2031 and 2032 of the Streets and Highways Code in any manner that would materially adversely impair the interests of those bondholders or parties for so long as any revenue bonds or ancillary obligations remain outstanding. The committee may include this covenant in the issuing instrument.14474.13. An action to determine the validity of any revenue bond authorized to be issued pursuant to this chapter, and any ancillary obligations or other contracts related to those bonds, may be brought in accordance with Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. For the purposes of Section 860 of the Code of Civil Procedure, any action initiated pursuant to this section shall be brought in the Superior Court of the County of Sacramento.14474.14. This article provides a complete, additional, and alternative method for performing the acts authorized by this article and shall be construed as supplemental and additional to powers conferred by other laws; provided, however, that the issuance of the revenue bonds and refunding bonds and the execution of any agreements under this article are not subject to, and need not comply with, the requirements of any other law applicable to the issuance of those revenue bonds or refunding bonds and the execution of those agreements, including, but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). |
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| 218 | 215 | | |
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| 219 | 216 | | Article 5. Issuance of Revenue Bonds |
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| 220 | 217 | | |
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| 221 | 218 | | Article 5. Issuance of Revenue Bonds |
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| 222 | 219 | | |
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| 223 | 220 | | 14474. (a) Revenue bonds may be issued in accordance with this chapter on a tax-exempt or taxable basis in a principal amount not to exceed five billion dollars ($5,000,000,000), excluding refunding bonds and excluding any net original issuance premium derived from the sale of the bonds, to finance or refinance designated projects and to fund necessary reserves for principal and interest, capitalized interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the revenue bonds.(b) The State TIF Revenue Bond Fund is hereby created within the State Treasury and, notwithstanding Section 13340 or any other law, continuously appropriated, without regard to fiscal years, to the department and the Treasurer for the purposes of, and in accordance with, this chapter. Accounts and subaccounts may be created within the fund as needed.(c) There shall be paid into the State TIF Revenue Bond Fund the net proceeds derived from the issuance of revenue bonds in accordance with this chapter.(d) Moneys in the State TIF Revenue Bond Fund may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority. |
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| 224 | 221 | | |
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| 225 | 222 | | |
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| 226 | 223 | | |
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| 227 | 224 | | 14474. (a) Revenue bonds may be issued in accordance with this chapter on a tax-exempt or taxable basis in a principal amount not to exceed five billion dollars ($5,000,000,000), excluding refunding bonds and excluding any net original issuance premium derived from the sale of the bonds, to finance or refinance designated projects and to fund necessary reserves for principal and interest, capitalized interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the revenue bonds. |
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| 228 | 225 | | |
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| 229 | 226 | | (b) The State TIF Revenue Bond Fund is hereby created within the State Treasury and, notwithstanding Section 13340 or any other law, continuously appropriated, without regard to fiscal years, to the department and the Treasurer for the purposes of, and in accordance with, this chapter. Accounts and subaccounts may be created within the fund as needed. |
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| 230 | 227 | | |
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| 231 | 228 | | (c) There shall be paid into the State TIF Revenue Bond Fund the net proceeds derived from the issuance of revenue bonds in accordance with this chapter. |
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| 232 | 229 | | |
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| 233 | 230 | | (d) Moneys in the State TIF Revenue Bond Fund may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority. |
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| 234 | 231 | | |
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| 235 | 232 | | 14474.1. In order to provide security for repayment of the revenue bonds and ancillary obligations, the committee may include in an issuing instrument provisions pledging all or a portion of the interests of the state in the State Highway and SHOPP TIF Account and any moneys in that account and any accounts established under the issuing instrument and the moneys on deposit in those accounts designated by the committee to the payment of principal of, and interest and premium on, the revenue bonds and the payment of ancillary obligations, for as long as any revenue bonds or ancillary obligations remain outstanding. The committee shall not pledge any portion of the allocation of revenues pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code or, in any other way, impact, modify, or reduce that allocation. The pledge shall be governed by Chapter 5.5 (commencing with Section 5450) of Division 6 of Title 1. The pledge described in this section shall constitute a pledge of collateral within the meaning of subdivision (b) of Section 5450. The issuing instrument shall constitute a pledge document for purposes of Section 5451, as defined in Section 5450. |
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| 236 | 233 | | |
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| 237 | 234 | | |
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| 238 | 235 | | |
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| 239 | 236 | | 14474.1. In order to provide security for repayment of the revenue bonds and ancillary obligations, the committee may include in an issuing instrument provisions pledging all or a portion of the interests of the state in the State Highway and SHOPP TIF Account and any moneys in that account and any accounts established under the issuing instrument and the moneys on deposit in those accounts designated by the committee to the payment of principal of, and interest and premium on, the revenue bonds and the payment of ancillary obligations, for as long as any revenue bonds or ancillary obligations remain outstanding. The committee shall not pledge any portion of the allocation of revenues pursuant to paragraph (2) of subdivision (h) of Section 2032 of the Streets and Highways Code or, in any other way, impact, modify, or reduce that allocation. The pledge shall be governed by Chapter 5.5 (commencing with Section 5450) of Division 6 of Title 1. The pledge described in this section shall constitute a pledge of collateral within the meaning of subdivision (b) of Section 5450. The issuing instrument shall constitute a pledge document for purposes of Section 5451, as defined in Section 5450. |
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| 240 | 237 | | |
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| 241 | 238 | | 14474.2. Revenue bonds may be issued from time to time pursuant to an issuing instrument, including an issuing instrument entered into between the committee and a trustee. The issuing instrument may contain any of the following provisions, which shall be a part of the contract with the holders of the revenue bonds to be authorized:(a) Provisions of the type described in Section 14474.1.(b) Provisions for classes of revenue bonds having different priority in the receipt of available transportation improvement fee revenues.(c) Provisions for the investment of proceeds of the revenue bonds or of the moneys received for repayment of the revenue bonds.(d) Provisions setting aside reserves or sinking funds, and the regulation and disposition thereof.(e) Limitations on the issuance of additional revenue bonds, the terms upon which additional revenue bonds may be issued and secured, and the refunding of outstanding revenue bonds.(f) The procedure, if any, by which the terms of any contract with revenue bondholders may be amended or abrogated, the amount of revenue bonds and the holders thereof that are required to give consent thereto, and the manner in which the consent may be given.(g) Definitions of acts or omissions to act that constitute a default in the duties of the state to holders of the revenue bonds, and provisions on the rights and remedies of the holders in the event of a default. |
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| 242 | 239 | | |
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| 243 | 240 | | |
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| 244 | 241 | | |
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| 245 | 242 | | 14474.2. Revenue bonds may be issued from time to time pursuant to an issuing instrument, including an issuing instrument entered into between the committee and a trustee. The issuing instrument may contain any of the following provisions, which shall be a part of the contract with the holders of the revenue bonds to be authorized: |
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| 246 | 243 | | |
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| 247 | 244 | | (a) Provisions of the type described in Section 14474.1. |
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| 248 | 245 | | |
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| 249 | 246 | | (b) Provisions for classes of revenue bonds having different priority in the receipt of available transportation improvement fee revenues. |
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| 250 | 247 | | |
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| 251 | 248 | | (c) Provisions for the investment of proceeds of the revenue bonds or of the moneys received for repayment of the revenue bonds. |
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| 252 | 249 | | |
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| 253 | 250 | | (d) Provisions setting aside reserves or sinking funds, and the regulation and disposition thereof. |
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| 254 | 251 | | |
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| 255 | 252 | | (e) Limitations on the issuance of additional revenue bonds, the terms upon which additional revenue bonds may be issued and secured, and the refunding of outstanding revenue bonds. |
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| 256 | 253 | | |
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| 257 | 254 | | (f) The procedure, if any, by which the terms of any contract with revenue bondholders may be amended or abrogated, the amount of revenue bonds and the holders thereof that are required to give consent thereto, and the manner in which the consent may be given. |
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| 258 | 255 | | |
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| 259 | 256 | | (g) Definitions of acts or omissions to act that constitute a default in the duties of the state to holders of the revenue bonds, and provisions on the rights and remedies of the holders in the event of a default. |
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| 260 | 257 | | |
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| 261 | 258 | | 14474.3. The revenue bonds shall be authorized by resolution or resolutions of the committee, shall be in the form, shall bear the date or dates, and shall mature at the time or times, as the issuing instrument may provide, except that no revenue bond may mature more than 40 years from the date of its issue. The revenue bonds shall bear interest at fixed or variable rate or rates, be in the denominations, be in the form, be executed in the manner, be payable in the medium of payment at the place or places within or without the state, be subject to the terms of redemption and tender for purchase and contain the terms and conditions, that the issuing instrument may provide. The committee may authorize the Treasurer, upon those terms and conditions that may be fixed by the committee or determined by the Treasurer, to sell the revenue bonds at public or private sale at, above, or below the par value. The committee may authorize the Treasurer to do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds. |
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| 262 | 259 | | |
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| 263 | 260 | | |
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| 264 | 261 | | |
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| 265 | 262 | | 14474.3. The revenue bonds shall be authorized by resolution or resolutions of the committee, shall be in the form, shall bear the date or dates, and shall mature at the time or times, as the issuing instrument may provide, except that no revenue bond may mature more than 40 years from the date of its issue. The revenue bonds shall bear interest at fixed or variable rate or rates, be in the denominations, be in the form, be executed in the manner, be payable in the medium of payment at the place or places within or without the state, be subject to the terms of redemption and tender for purchase and contain the terms and conditions, that the issuing instrument may provide. The committee may authorize the Treasurer, upon those terms and conditions that may be fixed by the committee or determined by the Treasurer, to sell the revenue bonds at public or private sale at, above, or below the par value. The committee may authorize the Treasurer to do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds. |
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| 266 | 263 | | |
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| 267 | 264 | | 14474.4. (a) Notwithstanding Section 13340 or any other law, the amounts deposited in the State Highway and SHOPP TIF Account and pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the Treasurer, as trustee or cotrustee under the issuing instrument, for the purposes of, and in accordance with, this chapter, and the amounts deposited in the State Highway and SHOPP TIF Account that have not been pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the department, for the purposes of, and in accordance with paragraph (1) of subdivision (h) of Section 2032 of the Streets and Highways Code, subject to the terms of the issuing instrument for any outstanding revenue bonds.(b) Moneys in the State Highway and SHOPP TIF Account may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority. |
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| 268 | 265 | | |
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| 269 | 266 | | |
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| 270 | 267 | | |
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| 271 | 268 | | 14474.4. (a) Notwithstanding Section 13340 or any other law, the amounts deposited in the State Highway and SHOPP TIF Account and pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the Treasurer, as trustee or cotrustee under the issuing instrument, for the purposes of, and in accordance with, this chapter, and the amounts deposited in the State Highway and SHOPP TIF Account that have not been pledged by the committee in accordance with this chapter are hereby continuously appropriated, without regard to fiscal years, to the department, for the purposes of, and in accordance with paragraph (1) of subdivision (h) of Section 2032 of the Streets and Highways Code, subject to the terms of the issuing instrument for any outstanding revenue bonds. |
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| 272 | 269 | | |
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| 273 | 270 | | (b) Moneys in the State Highway and SHOPP TIF Account may not be borrowed by, or available for transfer to, the General Fund pursuant to Section 16310 or any similar authority, or the General Cash Revolving Fund pursuant to Section 16381 or any similar authority. |
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| 274 | 271 | | |
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| 275 | 272 | | 14474.5. (a) The committee may provide for the issuance and sale of refunding revenue bonds to refund any outstanding revenue bonds, and to fund necessary reserves for principal and interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the refunding revenue bonds.(b) The proceeds of any revenue bonds issued for the purpose of refunding of outstanding bonds may, at the discretion of the committee, be applied to the purchase or redemption before maturity or retirement at maturity of the outstanding bonds on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof, or paid to a third person to assume the obligation to make those payments, and may, pending that application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on any date or dates as may be determined by the committee. |
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| 276 | 273 | | |
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| 277 | 274 | | |
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| 278 | 275 | | |
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| 279 | 276 | | 14474.5. (a) The committee may provide for the issuance and sale of refunding revenue bonds to refund any outstanding revenue bonds, and to fund necessary reserves for principal and interest, credit enhancement or liquidity costs, costs of issuance, and administrative expenses associated with the refunding revenue bonds. |
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| 280 | 277 | | |
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| 281 | 278 | | (b) The proceeds of any revenue bonds issued for the purpose of refunding of outstanding bonds may, at the discretion of the committee, be applied to the purchase or redemption before maturity or retirement at maturity of the outstanding bonds on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof, or paid to a third person to assume the obligation to make those payments, and may, pending that application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on any date or dates as may be determined by the committee. |
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| 282 | 279 | | |
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| 283 | 280 | | 14474.6. Whenever the committee deems that it will increase the salability or the price of the revenue bonds to obtain, before or after sale, a legal opinion, other than that of the Attorney General, as to the validity or tax-exempt nature of the revenue bonds, the committee may obtain that legal opinion. Payment for those legal services shall be made from the proceeds of the sale of the revenue bonds. |
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| 284 | 281 | | |
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| 285 | 282 | | |
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| 286 | 283 | | |
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| 287 | 284 | | 14474.6. Whenever the committee deems that it will increase the salability or the price of the revenue bonds to obtain, before or after sale, a legal opinion, other than that of the Attorney General, as to the validity or tax-exempt nature of the revenue bonds, the committee may obtain that legal opinion. Payment for those legal services shall be made from the proceeds of the sale of the revenue bonds. |
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| 288 | 285 | | |
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| 289 | 286 | | 14474.7. (a) The Treasurer may employ financial, engineering, or transportation consultants or advisers, underwriters, and accountants as may be necessary in the Treasurers judgment in connection with the issuance and sale of any revenue bonds. Payment for these services may be made out of the proceeds of the sale of the revenue bonds.(b) The Treasurer may do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds. |
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| 290 | 287 | | |
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| 291 | 288 | | |
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| 292 | 289 | | |
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| 293 | 290 | | 14474.7. (a) The Treasurer may employ financial, engineering, or transportation consultants or advisers, underwriters, and accountants as may be necessary in the Treasurers judgment in connection with the issuance and sale of any revenue bonds. Payment for these services may be made out of the proceeds of the sale of the revenue bonds. |
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| 294 | 291 | | |
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| 295 | 292 | | (b) The Treasurer may do all things necessary or convenient to carry out the powers and purposes of this chapter, including the execution and delivery of any ancillary obligations relating to the revenue bonds. |
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| 296 | 293 | | |
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| 297 | 294 | | 14474.8. Revenue bonds issued under this chapter are a legal investment for any state special or trust fund notwithstanding any law limiting the investments that may be made by the special or trust fund. The revenue bonds shall be legal investments in which all public officers and public bodies of the state, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings and loan associations, savings banks and savings associations, and investment companies, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons authorized to invest in revenue bonds or in other obligations of the state, may properly and legally invest funds, including capital, in their control or belonging to them. The revenue bonds may be used as security for public deposits. The revenue bonds are also securities that may properly and legally be deposited with and received by all public officers and bodies of state or any agency or political subdivision of the state and all municipalities and public corporations for any purpose for which the deposit of revenue bonds or other obligations of the state is authorized by law, including deposits to secured public funds. |
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| 298 | 295 | | |
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| 299 | 296 | | |
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| 300 | 297 | | |
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| 301 | 298 | | 14474.8. Revenue bonds issued under this chapter are a legal investment for any state special or trust fund notwithstanding any law limiting the investments that may be made by the special or trust fund. The revenue bonds shall be legal investments in which all public officers and public bodies of the state, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings and loan associations, savings banks and savings associations, and investment companies, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons authorized to invest in revenue bonds or in other obligations of the state, may properly and legally invest funds, including capital, in their control or belonging to them. The revenue bonds may be used as security for public deposits. The revenue bonds are also securities that may properly and legally be deposited with and received by all public officers and bodies of state or any agency or political subdivision of the state and all municipalities and public corporations for any purpose for which the deposit of revenue bonds or other obligations of the state is authorized by law, including deposits to secured public funds. |
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| 302 | 299 | | |
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| 303 | 300 | | 14474.9. Notwithstanding any other law, revenue bonds issued in accordance with this chapter are not and shall not be deemed to constitute a debt or liability of the state, or of any political subdivision of the state, and are not and shall not be deemed to be a pledge of the full faith and credit of the state, or of any political subdivision of the state, but shall be payable solely from the funds and revenues pledged therefor under the issuing instrument. All the revenue bonds shall contain on their face a statement to the effect that the State of California is not and shall not be obligated to pay the principal, or the interest on the revenue bonds, except from the funds and revenues pledged therefor under the issuing instrument, and that neither the faith and credit nor the taxing power of the State of California or of any of its political subdivisions is pledged or shall be pledged to the payment of the principal or interest on the revenue bonds. The issuance of revenue bonds in accordance with this chapter shall not directly or indirectly or contingently obligate the state, or any political subdivision of the state, to levy or to pledge any form of taxation whatsoever or to make any appropriation for their payment from the General Fund of the state. |
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| 304 | 301 | | |
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| 305 | 302 | | |
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| 306 | 303 | | |
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| 307 | 304 | | 14474.9. Notwithstanding any other law, revenue bonds issued in accordance with this chapter are not and shall not be deemed to constitute a debt or liability of the state, or of any political subdivision of the state, and are not and shall not be deemed to be a pledge of the full faith and credit of the state, or of any political subdivision of the state, but shall be payable solely from the funds and revenues pledged therefor under the issuing instrument. All the revenue bonds shall contain on their face a statement to the effect that the State of California is not and shall not be obligated to pay the principal, or the interest on the revenue bonds, except from the funds and revenues pledged therefor under the issuing instrument, and that neither the faith and credit nor the taxing power of the State of California or of any of its political subdivisions is pledged or shall be pledged to the payment of the principal or interest on the revenue bonds. The issuance of revenue bonds in accordance with this chapter shall not directly or indirectly or contingently obligate the state, or any political subdivision of the state, to levy or to pledge any form of taxation whatsoever or to make any appropriation for their payment from the General Fund of the state. |
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| 308 | 305 | | |
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| 309 | 306 | | 14474.10. Any bonds issued in accordance with this chapter, their transfer, and income therefrom shall at all times be free from taxation of every kind by the state and by all political subdivisions of the state. |
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| 310 | 307 | | |
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| 311 | 308 | | |
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| 312 | 309 | | |
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| 313 | 310 | | 14474.10. Any bonds issued in accordance with this chapter, their transfer, and income therefrom shall at all times be free from taxation of every kind by the state and by all political subdivisions of the state. |
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| 314 | 311 | | |
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| 315 | 312 | | 14474.11. The Legislature finds and declares that the expenditure of bond funds pursuant to this chapter does not constitute the use of bond proceeds or other indebtedness to pay a year-end state budget deficit, as prohibited by subdivision (c) of Section 1.3 of Article XVI of the California Constitution. |
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| 316 | 313 | | |
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| 317 | 314 | | |
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| 318 | 315 | | |
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| 319 | 316 | | 14474.11. The Legislature finds and declares that the expenditure of bond funds pursuant to this chapter does not constitute the use of bond proceeds or other indebtedness to pay a year-end state budget deficit, as prohibited by subdivision (c) of Section 1.3 of Article XVI of the California Constitution. |
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| 320 | 317 | | |
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| 321 | 318 | | 14474.12. The state hereby covenants with the holders from time to time of any revenue bonds issued pursuant to this chapter, and with those parties who may enter into ancillary obligations pursuant to this chapter, that it will not alter, amend, or restrict the provisions of this section, Section 14474.4, Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code, and Sections 2031 and 2032 of the Streets and Highways Code in any manner that would materially adversely impair the interests of those bondholders or parties for so long as any revenue bonds or ancillary obligations remain outstanding. The committee may include this covenant in the issuing instrument. |
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| 322 | 319 | | |
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| 323 | 320 | | |
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| 324 | 321 | | |
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| 325 | 322 | | 14474.12. The state hereby covenants with the holders from time to time of any revenue bonds issued pursuant to this chapter, and with those parties who may enter into ancillary obligations pursuant to this chapter, that it will not alter, amend, or restrict the provisions of this section, Section 14474.4, Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code, and Sections 2031 and 2032 of the Streets and Highways Code in any manner that would materially adversely impair the interests of those bondholders or parties for so long as any revenue bonds or ancillary obligations remain outstanding. The committee may include this covenant in the issuing instrument. |
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| 326 | 323 | | |
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| 327 | 324 | | 14474.13. An action to determine the validity of any revenue bond authorized to be issued pursuant to this chapter, and any ancillary obligations or other contracts related to those bonds, may be brought in accordance with Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. For the purposes of Section 860 of the Code of Civil Procedure, any action initiated pursuant to this section shall be brought in the Superior Court of the County of Sacramento. |
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| 328 | 325 | | |
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| 329 | 326 | | |
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| 330 | 327 | | |
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| 331 | 328 | | 14474.13. An action to determine the validity of any revenue bond authorized to be issued pursuant to this chapter, and any ancillary obligations or other contracts related to those bonds, may be brought in accordance with Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. For the purposes of Section 860 of the Code of Civil Procedure, any action initiated pursuant to this section shall be brought in the Superior Court of the County of Sacramento. |
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| 332 | 329 | | |
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| 333 | 330 | | 14474.14. This article provides a complete, additional, and alternative method for performing the acts authorized by this article and shall be construed as supplemental and additional to powers conferred by other laws; provided, however, that the issuance of the revenue bonds and refunding bonds and the execution of any agreements under this article are not subject to, and need not comply with, the requirements of any other law applicable to the issuance of those revenue bonds or refunding bonds and the execution of those agreements, including, but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). |
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| 334 | 331 | | |
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| 335 | 332 | | |
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| 336 | 333 | | |
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| 337 | 334 | | 14474.14. This article provides a complete, additional, and alternative method for performing the acts authorized by this article and shall be construed as supplemental and additional to powers conferred by other laws; provided, however, that the issuance of the revenue bonds and refunding bonds and the execution of any agreements under this article are not subject to, and need not comply with, the requirements of any other law applicable to the issuance of those revenue bonds or refunding bonds and the execution of those agreements, including, but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). |
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| 338 | 335 | | |
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| 339 | 336 | | SEC. 2. Section 2031 of the Streets and Highways Code is amended to read:2031. (a) The following revenues shall be deposited in the Road Maintenance and Rehabilitation Account, which is hereby created in the State Transportation Fund:(1) 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.(2) The revenues from the portion of the transportation improvement fee pursuant to subdivision (c) of Section 11053 of the Revenue and Taxation Code.(3) 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.(4) 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.(5) Any other revenues designated for the program.(b) The revenues described in paragraph (2) of subdivision (a) shall be transferred to the Transportation Improvement Fee Subaccount, which is hereby created in the Road Maintenance and Rehabilitation Account. |
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| 340 | 337 | | |
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| 341 | 338 | | SEC. 2. Section 2031 of the Streets and Highways Code is amended to read: |
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| 342 | 339 | | |
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| 343 | 340 | | ### SEC. 2. |
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| 344 | 341 | | |
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| 345 | 342 | | 2031. (a) The following revenues shall be deposited in the Road Maintenance and Rehabilitation Account, which is hereby created in the State Transportation Fund:(1) 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.(2) The revenues from the portion of the transportation improvement fee pursuant to subdivision (c) of Section 11053 of the Revenue and Taxation Code.(3) 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.(4) 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.(5) Any other revenues designated for the program.(b) The revenues described in paragraph (2) of subdivision (a) shall be transferred to the Transportation Improvement Fee Subaccount, which is hereby created in the Road Maintenance and Rehabilitation Account. |
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| 346 | 343 | | |
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| 347 | 344 | | 2031. (a) The following revenues shall be deposited in the Road Maintenance and Rehabilitation Account, which is hereby created in the State Transportation Fund:(1) 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.(2) The revenues from the portion of the transportation improvement fee pursuant to subdivision (c) of Section 11053 of the Revenue and Taxation Code.(3) 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.(4) 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.(5) Any other revenues designated for the program.(b) The revenues described in paragraph (2) of subdivision (a) shall be transferred to the Transportation Improvement Fee Subaccount, which is hereby created in the Road Maintenance and Rehabilitation Account. |
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| 348 | 345 | | |
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| 349 | 346 | | 2031. (a) The following revenues shall be deposited in the Road Maintenance and Rehabilitation Account, which is hereby created in the State Transportation Fund:(1) 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.(2) The revenues from the portion of the transportation improvement fee pursuant to subdivision (c) of Section 11053 of the Revenue and Taxation Code.(3) 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.(4) 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.(5) Any other revenues designated for the program.(b) The revenues described in paragraph (2) of subdivision (a) shall be transferred to the Transportation Improvement Fee Subaccount, which is hereby created in the Road Maintenance and Rehabilitation Account. |
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| 350 | 347 | | |
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| 351 | 348 | | |
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| 352 | 349 | | |
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| 353 | 350 | | 2031. (a) The following revenues shall be deposited in the Road Maintenance and Rehabilitation Account, which is hereby created in the State Transportation Fund: |
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| 354 | 351 | | |
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| 355 | 352 | | (1) 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. |
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| 356 | 353 | | |
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| 357 | 354 | | (2) The revenues from the portion of the transportation improvement fee pursuant to subdivision (c) of Section 11053 of the Revenue and Taxation Code. |
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| 358 | 355 | | |
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| 359 | 356 | | (3) 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. |
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| 360 | 357 | | |
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| 361 | 358 | | (4) 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. |
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| 362 | 359 | | |
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| 363 | 360 | | (5) Any other revenues designated for the program. |
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| 364 | 361 | | |
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| 365 | 362 | | (b) The revenues described in paragraph (2) of subdivision (a) shall be transferred to the Transportation Improvement Fee Subaccount, which is hereby created in the Road Maintenance and Rehabilitation Account. |
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| 366 | 363 | | |
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| 367 | | - | SEC. 3. Section 2032 of the Streets and Highways Code is amended to read:2032. (a) (1) After deducting the amounts appropriated in the annual Budget Act, as provided in Section 2031.5, two hundred million dollars ($200,000,000) of the remaining revenues deposited in the Road Maintenance and Rehabilitation Account shall be set aside annually for local or regional transportation agencies that have sought and received voter approval of taxes or that have imposed fees, including uniform developer fees as defined by subdivision (b) of Section 8879.67 of the Government Code, which taxes or fees are dedicated solely to transportation improvements. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, the Controller shall set aside one-eighth of this amount, to accumulate a total of two hundred million dollars ($200,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(2) Eligible projects under this subdivision include, but are not limited to, sound walls for a freeway that was built before 1987 without sound walls and with or without high-occupancy vehicle lanes if the completion of the sound walls has been deferred due to lack of available funding for at least 20 years and a noise barrier scope summary report has been completed within the last 20 years.(3) Notwithstanding Section 13340 of the Government Code, the funds available under this subdivision in each fiscal year are hereby continuously appropriated for allocation by the commission for road maintenance and rehabilitation and other transportation improvement projects pursuant to Section 2033.(b) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amount allocated in subdivision (a), beginning in the 201718 fiscal year, one hundred million dollars ($100,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, on the Active Transportation Program established pursuant to Chapter 8 (commencing with Section 2380) to be allocated by the California Transportation Commission pursuant to Section 2381. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of one hundred million dollars ($100,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(c) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) and (b), beginning in the 201718 fiscal year, four hundred million dollars ($400,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for bridge and culvert maintenance and rehabilitation. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of four hundred million dollars ($400,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(d) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (c), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be transferred annually to the State Highway Account for expenditure, upon appropriation by the Legislature, to supplement the freeway service patrol program. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(e) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (d), inclusive, in the 201718 to 202122 fiscal years, inclusive, from revenues in the Road Maintenance and Rehabilitation Account that are not subject to Article XIX of the California Constitution, five million dollars ($5,000,000) shall be appropriated in each fiscal year to the California Workforce Development Board to assist local agencies to implement policies to promote preapprenticeship training programs to carry out the projects that are funded by the account pursuant to Section 2038. Funds appropriated pursuant to this subdivision in the Budget Act but remaining unexpended at the end of each applicable fiscal year shall be reappropriated for the same purposes in the following years Budget Act, but all funds appropriated or reappropriated pursuant to this subdivision in the Budget Act shall be liquidated no later than June 30, 2027.(f) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (e), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for local planning grants, as described in Section 2033.5. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(g) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (f), inclusive, beginning in the 201718 fiscal year and each fiscal year thereafter, from the remaining revenues, five million dollars ($5,000,000) shall be available, upon appropriation, to the University of California for the purpose of conducting transportation research and two million dollars ($2,000,000) shall be available, upon appropriation, to the California State University for purposes of conducting transportation research and transportation-related workforce education, training, and development. Before the start of each fiscal year, the Secretary of Transportation and the chairs of the Assembly Committee on Transportation and the Senate Committee on Transportation and Housing may set out a recommended priority list of research components to be addressed in the upcoming fiscal year.(h) Notwithstanding Section 13340 of the Government Code, the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount are hereby continuously appropriated as follows and as provided in subdivision (i):(1) Fifty percent for allocation to the department for maintenance of the state highway system or for purposes of the State Highway Operation and Protection Program.(2) Fifty percent for apportionment to cities and counties by the Controller pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103 for the purposes authorized by this chapter.(i) (1) (A) This paragraph shall apply to how the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the revenues remaining in the Transportation Improvement Fee Subaccount after any adjustments made pursuant to paragraph (2) are used to fund the 50-percent allocation to the department in paragraph (1) of subdivision (h) and the 50-percent apportionment to cities and counties in paragraph (2) of subdivision (h). Nothing in this subdivision or in Section 14474.1 of the Government Code shall reduce, modify, or otherwise impact the continuous appropriation of the 50-percent allocation of the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount to cities and counties pursuant to paragraph (2) of subdivision (h).(B) The revenues in the Transportation Improvement Fee Subaccount specified in subdivision (h) shall be used first to fund the allocation specified in paragraph (1) of subdivision (h). The revenues from the Transportation Improvement Fee Subaccount used to fund the allocation specified in paragraph (1) of subdivision (h) shall be deposited into the State Highway and SHOPP TIF Account, which is hereby created in the State Transportation Fund.(C) If the revenues in the Transportation Improvement Fee Subaccount do not fully satisfy the allocation specified in paragraph (1) of subdivision (h), the revenues in the Road Maintenance and Rehabilitation Account shall be used to fund the remaining portion of the allocation specified in paragraph (1) of subdivision (h).(D) The revenues in the Road Maintenance and Rehabilitation Account and any revenues in the Transportation Improvement Fee Subaccount that remain after the allocation specified in paragraph (1) of subdivision (h) shall be used to fund the allocation specified in paragraph (2) of subdivision (h).(2) (A) Except as provided in subparagraphs (B) and (C), revenues in the Transportation Improvement Fee Subaccount shall not be used to satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive.(B) If there are insufficient revenues in the Road Maintenance and Rehabilitation Account to fully satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive, revenues in the Transportation Improvement Fee Subaccount shall be used to satisfy the remaining portion of those deductions that are not satisfied by the revenues in the Road Maintenance and Rehabilitation Account.(C) Revenues in the Transportation Improvement Fee Subaccount may, upon appropriation by the Legislature, be used to satisfy the allocation set forth in subdivision (e). |
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| 364 | + | SEC. 3. Section 2032 of the Streets and Highways Code is amended to read:2032. (a) (1) After deducting the amounts appropriated in the annual Budget Act, as provided in Section 2031.5, two hundred million dollars ($200,000,000) of the remaining revenues deposited in the Road Maintenance and Rehabilitation Account shall be set aside annually for local or regional transportation agencies that have sought and received voter approval of taxes or that have imposed fees, including uniform developer fees as defined by subdivision (b) of Section 8879.67 of the Government Code, which taxes or fees are dedicated solely to transportation improvements. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, the Controller shall set aside one-eighth of this amount, to accumulate a total of two hundred million dollars ($200,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(2) Eligible projects under this subdivision include, but are not limited to, sound walls for a freeway that was built before 1987 without sound walls and with or without high-occupancy vehicle lanes if the completion of the sound walls has been deferred due to lack of available funding for at least 20 years and a noise barrier scope summary report has been completed within the last 20 years.(3) Notwithstanding Section 13340 of the Government Code, the funds available under this subdivision in each fiscal year are hereby continuously appropriated for allocation by the commission for road maintenance and rehabilitation and other transportation improvement projects pursuant to Section 2033.(b) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amount allocated in subdivision (a), beginning in the 201718 fiscal year, one hundred million dollars ($100,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, on the Active Transportation Program established pursuant to Chapter 8 (commencing with Section 2380) to be allocated by the California Transportation Commission pursuant to Section 2381. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of one hundred million dollars ($100,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(c) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) and (b), beginning in the 201718 fiscal year, four hundred million dollars ($400,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for bridge and culvert maintenance and rehabilitation. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of four hundred million dollars ($400,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(d) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (c), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be transferred annually to the State Highway Account for expenditure, upon appropriation by the Legislature, to supplement the freeway service patrol program. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(e) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (d), inclusive, in the 201718 to 202122 fiscal years, inclusive, from revenues in the Road Maintenance and Rehabilitation Account that are not subject to Article XIX of the California Constitution, five million dollars ($5,000,000) shall be appropriated in each fiscal year to the California Workforce Development Board to assist local agencies to implement policies to promote preapprenticeship training programs to carry out the projects that are funded by the account pursuant to Section 2038. Funds appropriated pursuant to this subdivision in the Budget Act but remaining unexpended at the end of each applicable fiscal year shall be reappropriated for the same purposes in the following years Budget Act, but all funds appropriated or reappropriated pursuant to this subdivision in the Budget Act shall be liquidated no later than June 30, 2027.(f) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (e), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for local planning grants, as described in Section 2033.5. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(g) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (f), inclusive, beginning in the 201718 fiscal year and each fiscal year thereafter, from the remaining revenues, five million dollars ($5,000,000) shall be available, upon appropriation, to the University of California for the purpose of conducting transportation research and two million dollars ($2,000,000) shall be available, upon appropriation, to the California State University for purposes of conducting transportation research and transportation-related workforce education, training, and development. Before the start of each fiscal year, the Secretary of Transportation and the chairs of the Assembly Committee on Transportation and the Senate Committee on Transportation and Housing may set out a recommended priority list of research components to be addressed in the upcoming fiscal year.(h) Notwithstanding Section 13340 of the Government Code, the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount are hereby continuously appropriated as follows and as provided in subdivision (i):(1) Fifty percent for allocation to the department for maintenance of the state highway system or for purposes of the State Highway Operation and Protection Program.(2) Fifty percent for apportionment to cities and counties by the Controller pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103 for the purposes authorized by this chapter.(i) (1) (A) This subdivision paragraph shall apply to how the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the revenues remaining in the Transportation Improvement Fee Subaccount after any adjustments made pursuant to paragraph (2) are used to fund the 50-percent allocation to the department in paragraph (1) of subdivision (h) and the 50-percent apportionment to cities and counties in paragraph (2) of subdivision (h). Nothing in this subdivision or in Section 14474.1 of the Government Code shall reduce, modify, or otherwise impact the continuous appropriation of the 50-percent allocation of the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount to cities and counties pursuant to paragraph (2) of subdivision (h).(B) The revenues in the Transportation Improvement Fee Subaccount specified in subdivision (h) shall be used first to fund the allocation specified in paragraph (1) of subdivision (h). The revenues from the Transportation Improvement Fee Subaccount used to fund the allocation specified in paragraph (1) of subdivision (h) shall be deposited into the State Highway and SHOPP TIF Account, which is hereby created in the State Transportation Fund.(C) If the revenues in the Transportation Improvement Fee Subaccount do not fully satisfy the allocation specified in paragraph (1) of subdivision (h), the revenues in the Road Maintenance and Rehabilitation Account shall be used to fund the remaining portion of the allocation specified in paragraph (1) of subdivision (h).(D) The revenues in the Road Maintenance and Rehabilitation Account and any revenues in the Transportation Improvement Fee Subaccount that remain after the allocation specified in paragraph (1) of subdivision (h) shall be used to fund the allocation specified in paragraph (2) of subdivision (h).(2) (A) Except as provided in subparagraphs (B) and (C), revenues in the Transportation Improvement Fee Subaccount shall not be used to satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive.(B) If there are insufficient revenues in the Road Maintenance and Rehabilitation Account to fully satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive, revenues in the Transportation Improvement Fee Subaccount shall be used to satisfy the remaining portion of those deductions that are not satisfied by the revenues in the Road Maintenance and Rehabilitation Account.(C) Revenues in the Transportation Improvement Fee Subaccount shall may, upon appropriation by the Legislature, be used to satisfy the allocation set forth in subdivision (e). |
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| 373 | | - | 2032. (a) (1) After deducting the amounts appropriated in the annual Budget Act, as provided in Section 2031.5, two hundred million dollars ($200,000,000) of the remaining revenues deposited in the Road Maintenance and Rehabilitation Account shall be set aside annually for local or regional transportation agencies that have sought and received voter approval of taxes or that have imposed fees, including uniform developer fees as defined by subdivision (b) of Section 8879.67 of the Government Code, which taxes or fees are dedicated solely to transportation improvements. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, the Controller shall set aside one-eighth of this amount, to accumulate a total of two hundred million dollars ($200,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(2) Eligible projects under this subdivision include, but are not limited to, sound walls for a freeway that was built before 1987 without sound walls and with or without high-occupancy vehicle lanes if the completion of the sound walls has been deferred due to lack of available funding for at least 20 years and a noise barrier scope summary report has been completed within the last 20 years.(3) Notwithstanding Section 13340 of the Government Code, the funds available under this subdivision in each fiscal year are hereby continuously appropriated for allocation by the commission for road maintenance and rehabilitation and other transportation improvement projects pursuant to Section 2033.(b) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amount allocated in subdivision (a), beginning in the 201718 fiscal year, one hundred million dollars ($100,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, on the Active Transportation Program established pursuant to Chapter 8 (commencing with Section 2380) to be allocated by the California Transportation Commission pursuant to Section 2381. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of one hundred million dollars ($100,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(c) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) and (b), beginning in the 201718 fiscal year, four hundred million dollars ($400,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for bridge and culvert maintenance and rehabilitation. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of four hundred million dollars ($400,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(d) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (c), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be transferred annually to the State Highway Account for expenditure, upon appropriation by the Legislature, to supplement the freeway service patrol program. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(e) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (d), inclusive, in the 201718 to 202122 fiscal years, inclusive, from revenues in the Road Maintenance and Rehabilitation Account that are not subject to Article XIX of the California Constitution, five million dollars ($5,000,000) shall be appropriated in each fiscal year to the California Workforce Development Board to assist local agencies to implement policies to promote preapprenticeship training programs to carry out the projects that are funded by the account pursuant to Section 2038. Funds appropriated pursuant to this subdivision in the Budget Act but remaining unexpended at the end of each applicable fiscal year shall be reappropriated for the same purposes in the following years Budget Act, but all funds appropriated or reappropriated pursuant to this subdivision in the Budget Act shall be liquidated no later than June 30, 2027.(f) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (e), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for local planning grants, as described in Section 2033.5. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(g) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (f), inclusive, beginning in the 201718 fiscal year and each fiscal year thereafter, from the remaining revenues, five million dollars ($5,000,000) shall be available, upon appropriation, to the University of California for the purpose of conducting transportation research and two million dollars ($2,000,000) shall be available, upon appropriation, to the California State University for purposes of conducting transportation research and transportation-related workforce education, training, and development. Before the start of each fiscal year, the Secretary of Transportation and the chairs of the Assembly Committee on Transportation and the Senate Committee on Transportation and Housing may set out a recommended priority list of research components to be addressed in the upcoming fiscal year.(h) Notwithstanding Section 13340 of the Government Code, the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount are hereby continuously appropriated as follows and as provided in subdivision (i):(1) Fifty percent for allocation to the department for maintenance of the state highway system or for purposes of the State Highway Operation and Protection Program.(2) Fifty percent for apportionment to cities and counties by the Controller pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103 for the purposes authorized by this chapter.(i) (1) (A) This paragraph shall apply to how the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the revenues remaining in the Transportation Improvement Fee Subaccount after any adjustments made pursuant to paragraph (2) are used to fund the 50-percent allocation to the department in paragraph (1) of subdivision (h) and the 50-percent apportionment to cities and counties in paragraph (2) of subdivision (h). Nothing in this subdivision or in Section 14474.1 of the Government Code shall reduce, modify, or otherwise impact the continuous appropriation of the 50-percent allocation of the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount to cities and counties pursuant to paragraph (2) of subdivision (h).(B) The revenues in the Transportation Improvement Fee Subaccount specified in subdivision (h) shall be used first to fund the allocation specified in paragraph (1) of subdivision (h). The revenues from the Transportation Improvement Fee Subaccount used to fund the allocation specified in paragraph (1) of subdivision (h) shall be deposited into the State Highway and SHOPP TIF Account, which is hereby created in the State Transportation Fund.(C) If the revenues in the Transportation Improvement Fee Subaccount do not fully satisfy the allocation specified in paragraph (1) of subdivision (h), the revenues in the Road Maintenance and Rehabilitation Account shall be used to fund the remaining portion of the allocation specified in paragraph (1) of subdivision (h).(D) The revenues in the Road Maintenance and Rehabilitation Account and any revenues in the Transportation Improvement Fee Subaccount that remain after the allocation specified in paragraph (1) of subdivision (h) shall be used to fund the allocation specified in paragraph (2) of subdivision (h).(2) (A) Except as provided in subparagraphs (B) and (C), revenues in the Transportation Improvement Fee Subaccount shall not be used to satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive.(B) If there are insufficient revenues in the Road Maintenance and Rehabilitation Account to fully satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive, revenues in the Transportation Improvement Fee Subaccount shall be used to satisfy the remaining portion of those deductions that are not satisfied by the revenues in the Road Maintenance and Rehabilitation Account.(C) Revenues in the Transportation Improvement Fee Subaccount may, upon appropriation by the Legislature, be used to satisfy the allocation set forth in subdivision (e). |
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| 370 | + | 2032. (a) (1) After deducting the amounts appropriated in the annual Budget Act, as provided in Section 2031.5, two hundred million dollars ($200,000,000) of the remaining revenues deposited in the Road Maintenance and Rehabilitation Account shall be set aside annually for local or regional transportation agencies that have sought and received voter approval of taxes or that have imposed fees, including uniform developer fees as defined by subdivision (b) of Section 8879.67 of the Government Code, which taxes or fees are dedicated solely to transportation improvements. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, the Controller shall set aside one-eighth of this amount, to accumulate a total of two hundred million dollars ($200,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(2) Eligible projects under this subdivision include, but are not limited to, sound walls for a freeway that was built before 1987 without sound walls and with or without high-occupancy vehicle lanes if the completion of the sound walls has been deferred due to lack of available funding for at least 20 years and a noise barrier scope summary report has been completed within the last 20 years.(3) Notwithstanding Section 13340 of the Government Code, the funds available under this subdivision in each fiscal year are hereby continuously appropriated for allocation by the commission for road maintenance and rehabilitation and other transportation improvement projects pursuant to Section 2033.(b) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amount allocated in subdivision (a), beginning in the 201718 fiscal year, one hundred million dollars ($100,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, on the Active Transportation Program established pursuant to Chapter 8 (commencing with Section 2380) to be allocated by the California Transportation Commission pursuant to Section 2381. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of one hundred million dollars ($100,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(c) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) and (b), beginning in the 201718 fiscal year, four hundred million dollars ($400,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for bridge and culvert maintenance and rehabilitation. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of four hundred million dollars ($400,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(d) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (c), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be transferred annually to the State Highway Account for expenditure, upon appropriation by the Legislature, to supplement the freeway service patrol program. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(e) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (d), inclusive, in the 201718 to 202122 fiscal years, inclusive, from revenues in the Road Maintenance and Rehabilitation Account that are not subject to Article XIX of the California Constitution, five million dollars ($5,000,000) shall be appropriated in each fiscal year to the California Workforce Development Board to assist local agencies to implement policies to promote preapprenticeship training programs to carry out the projects that are funded by the account pursuant to Section 2038. Funds appropriated pursuant to this subdivision in the Budget Act but remaining unexpended at the end of each applicable fiscal year shall be reappropriated for the same purposes in the following years Budget Act, but all funds appropriated or reappropriated pursuant to this subdivision in the Budget Act shall be liquidated no later than June 30, 2027.(f) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (e), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for local planning grants, as described in Section 2033.5. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(g) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (f), inclusive, beginning in the 201718 fiscal year and each fiscal year thereafter, from the remaining revenues, five million dollars ($5,000,000) shall be available, upon appropriation, to the University of California for the purpose of conducting transportation research and two million dollars ($2,000,000) shall be available, upon appropriation, to the California State University for purposes of conducting transportation research and transportation-related workforce education, training, and development. Before the start of each fiscal year, the Secretary of Transportation and the chairs of the Assembly Committee on Transportation and the Senate Committee on Transportation and Housing may set out a recommended priority list of research components to be addressed in the upcoming fiscal year.(h) Notwithstanding Section 13340 of the Government Code, the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount are hereby continuously appropriated as follows and as provided in subdivision (i):(1) Fifty percent for allocation to the department for maintenance of the state highway system or for purposes of the State Highway Operation and Protection Program.(2) Fifty percent for apportionment to cities and counties by the Controller pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103 for the purposes authorized by this chapter.(i) (1) (A) This subdivision paragraph shall apply to how the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the revenues remaining in the Transportation Improvement Fee Subaccount after any adjustments made pursuant to paragraph (2) are used to fund the 50-percent allocation to the department in paragraph (1) of subdivision (h) and the 50-percent apportionment to cities and counties in paragraph (2) of subdivision (h). Nothing in this subdivision or in Section 14474.1 of the Government Code shall reduce, modify, or otherwise impact the continuous appropriation of the 50-percent allocation of the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount to cities and counties pursuant to paragraph (2) of subdivision (h).(B) The revenues in the Transportation Improvement Fee Subaccount specified in subdivision (h) shall be used first to fund the allocation specified in paragraph (1) of subdivision (h). The revenues from the Transportation Improvement Fee Subaccount used to fund the allocation specified in paragraph (1) of subdivision (h) shall be deposited into the State Highway and SHOPP TIF Account, which is hereby created in the State Transportation Fund.(C) If the revenues in the Transportation Improvement Fee Subaccount do not fully satisfy the allocation specified in paragraph (1) of subdivision (h), the revenues in the Road Maintenance and Rehabilitation Account shall be used to fund the remaining portion of the allocation specified in paragraph (1) of subdivision (h).(D) The revenues in the Road Maintenance and Rehabilitation Account and any revenues in the Transportation Improvement Fee Subaccount that remain after the allocation specified in paragraph (1) of subdivision (h) shall be used to fund the allocation specified in paragraph (2) of subdivision (h).(2) (A) Except as provided in subparagraphs (B) and (C), revenues in the Transportation Improvement Fee Subaccount shall not be used to satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive.(B) If there are insufficient revenues in the Road Maintenance and Rehabilitation Account to fully satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive, revenues in the Transportation Improvement Fee Subaccount shall be used to satisfy the remaining portion of those deductions that are not satisfied by the revenues in the Road Maintenance and Rehabilitation Account.(C) Revenues in the Transportation Improvement Fee Subaccount shall may, upon appropriation by the Legislature, be used to satisfy the allocation set forth in subdivision (e). |
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| 375 | | - | 2032. (a) (1) After deducting the amounts appropriated in the annual Budget Act, as provided in Section 2031.5, two hundred million dollars ($200,000,000) of the remaining revenues deposited in the Road Maintenance and Rehabilitation Account shall be set aside annually for local or regional transportation agencies that have sought and received voter approval of taxes or that have imposed fees, including uniform developer fees as defined by subdivision (b) of Section 8879.67 of the Government Code, which taxes or fees are dedicated solely to transportation improvements. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, the Controller shall set aside one-eighth of this amount, to accumulate a total of two hundred million dollars ($200,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(2) Eligible projects under this subdivision include, but are not limited to, sound walls for a freeway that was built before 1987 without sound walls and with or without high-occupancy vehicle lanes if the completion of the sound walls has been deferred due to lack of available funding for at least 20 years and a noise barrier scope summary report has been completed within the last 20 years.(3) Notwithstanding Section 13340 of the Government Code, the funds available under this subdivision in each fiscal year are hereby continuously appropriated for allocation by the commission for road maintenance and rehabilitation and other transportation improvement projects pursuant to Section 2033.(b) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amount allocated in subdivision (a), beginning in the 201718 fiscal year, one hundred million dollars ($100,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, on the Active Transportation Program established pursuant to Chapter 8 (commencing with Section 2380) to be allocated by the California Transportation Commission pursuant to Section 2381. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of one hundred million dollars ($100,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(c) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) and (b), beginning in the 201718 fiscal year, four hundred million dollars ($400,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for bridge and culvert maintenance and rehabilitation. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of four hundred million dollars ($400,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(d) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (c), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be transferred annually to the State Highway Account for expenditure, upon appropriation by the Legislature, to supplement the freeway service patrol program. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(e) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (d), inclusive, in the 201718 to 202122 fiscal years, inclusive, from revenues in the Road Maintenance and Rehabilitation Account that are not subject to Article XIX of the California Constitution, five million dollars ($5,000,000) shall be appropriated in each fiscal year to the California Workforce Development Board to assist local agencies to implement policies to promote preapprenticeship training programs to carry out the projects that are funded by the account pursuant to Section 2038. Funds appropriated pursuant to this subdivision in the Budget Act but remaining unexpended at the end of each applicable fiscal year shall be reappropriated for the same purposes in the following years Budget Act, but all funds appropriated or reappropriated pursuant to this subdivision in the Budget Act shall be liquidated no later than June 30, 2027.(f) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (e), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for local planning grants, as described in Section 2033.5. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(g) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (f), inclusive, beginning in the 201718 fiscal year and each fiscal year thereafter, from the remaining revenues, five million dollars ($5,000,000) shall be available, upon appropriation, to the University of California for the purpose of conducting transportation research and two million dollars ($2,000,000) shall be available, upon appropriation, to the California State University for purposes of conducting transportation research and transportation-related workforce education, training, and development. Before the start of each fiscal year, the Secretary of Transportation and the chairs of the Assembly Committee on Transportation and the Senate Committee on Transportation and Housing may set out a recommended priority list of research components to be addressed in the upcoming fiscal year.(h) Notwithstanding Section 13340 of the Government Code, the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount are hereby continuously appropriated as follows and as provided in subdivision (i):(1) Fifty percent for allocation to the department for maintenance of the state highway system or for purposes of the State Highway Operation and Protection Program.(2) Fifty percent for apportionment to cities and counties by the Controller pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103 for the purposes authorized by this chapter.(i) (1) (A) This paragraph shall apply to how the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the revenues remaining in the Transportation Improvement Fee Subaccount after any adjustments made pursuant to paragraph (2) are used to fund the 50-percent allocation to the department in paragraph (1) of subdivision (h) and the 50-percent apportionment to cities and counties in paragraph (2) of subdivision (h). Nothing in this subdivision or in Section 14474.1 of the Government Code shall reduce, modify, or otherwise impact the continuous appropriation of the 50-percent allocation of the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount to cities and counties pursuant to paragraph (2) of subdivision (h).(B) The revenues in the Transportation Improvement Fee Subaccount specified in subdivision (h) shall be used first to fund the allocation specified in paragraph (1) of subdivision (h). The revenues from the Transportation Improvement Fee Subaccount used to fund the allocation specified in paragraph (1) of subdivision (h) shall be deposited into the State Highway and SHOPP TIF Account, which is hereby created in the State Transportation Fund.(C) If the revenues in the Transportation Improvement Fee Subaccount do not fully satisfy the allocation specified in paragraph (1) of subdivision (h), the revenues in the Road Maintenance and Rehabilitation Account shall be used to fund the remaining portion of the allocation specified in paragraph (1) of subdivision (h).(D) The revenues in the Road Maintenance and Rehabilitation Account and any revenues in the Transportation Improvement Fee Subaccount that remain after the allocation specified in paragraph (1) of subdivision (h) shall be used to fund the allocation specified in paragraph (2) of subdivision (h).(2) (A) Except as provided in subparagraphs (B) and (C), revenues in the Transportation Improvement Fee Subaccount shall not be used to satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive.(B) If there are insufficient revenues in the Road Maintenance and Rehabilitation Account to fully satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive, revenues in the Transportation Improvement Fee Subaccount shall be used to satisfy the remaining portion of those deductions that are not satisfied by the revenues in the Road Maintenance and Rehabilitation Account.(C) Revenues in the Transportation Improvement Fee Subaccount may, upon appropriation by the Legislature, be used to satisfy the allocation set forth in subdivision (e). |
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| 372 | + | 2032. (a) (1) After deducting the amounts appropriated in the annual Budget Act, as provided in Section 2031.5, two hundred million dollars ($200,000,000) of the remaining revenues deposited in the Road Maintenance and Rehabilitation Account shall be set aside annually for local or regional transportation agencies that have sought and received voter approval of taxes or that have imposed fees, including uniform developer fees as defined by subdivision (b) of Section 8879.67 of the Government Code, which taxes or fees are dedicated solely to transportation improvements. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, the Controller shall set aside one-eighth of this amount, to accumulate a total of two hundred million dollars ($200,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(2) Eligible projects under this subdivision include, but are not limited to, sound walls for a freeway that was built before 1987 without sound walls and with or without high-occupancy vehicle lanes if the completion of the sound walls has been deferred due to lack of available funding for at least 20 years and a noise barrier scope summary report has been completed within the last 20 years.(3) Notwithstanding Section 13340 of the Government Code, the funds available under this subdivision in each fiscal year are hereby continuously appropriated for allocation by the commission for road maintenance and rehabilitation and other transportation improvement projects pursuant to Section 2033.(b) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amount allocated in subdivision (a), beginning in the 201718 fiscal year, one hundred million dollars ($100,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, on the Active Transportation Program established pursuant to Chapter 8 (commencing with Section 2380) to be allocated by the California Transportation Commission pursuant to Section 2381. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of one hundred million dollars ($100,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(c) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) and (b), beginning in the 201718 fiscal year, four hundred million dollars ($400,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for bridge and culvert maintenance and rehabilitation. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of four hundred million dollars ($400,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(d) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (c), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be transferred annually to the State Highway Account for expenditure, upon appropriation by the Legislature, to supplement the freeway service patrol program. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(e) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (d), inclusive, in the 201718 to 202122 fiscal years, inclusive, from revenues in the Road Maintenance and Rehabilitation Account that are not subject to Article XIX of the California Constitution, five million dollars ($5,000,000) shall be appropriated in each fiscal year to the California Workforce Development Board to assist local agencies to implement policies to promote preapprenticeship training programs to carry out the projects that are funded by the account pursuant to Section 2038. Funds appropriated pursuant to this subdivision in the Budget Act but remaining unexpended at the end of each applicable fiscal year shall be reappropriated for the same purposes in the following years Budget Act, but all funds appropriated or reappropriated pursuant to this subdivision in the Budget Act shall be liquidated no later than June 30, 2027.(f) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (e), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for local planning grants, as described in Section 2033.5. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(g) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (f), inclusive, beginning in the 201718 fiscal year and each fiscal year thereafter, from the remaining revenues, five million dollars ($5,000,000) shall be available, upon appropriation, to the University of California for the purpose of conducting transportation research and two million dollars ($2,000,000) shall be available, upon appropriation, to the California State University for purposes of conducting transportation research and transportation-related workforce education, training, and development. Before the start of each fiscal year, the Secretary of Transportation and the chairs of the Assembly Committee on Transportation and the Senate Committee on Transportation and Housing may set out a recommended priority list of research components to be addressed in the upcoming fiscal year.(h) Notwithstanding Section 13340 of the Government Code, the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount are hereby continuously appropriated as follows and as provided in subdivision (i):(1) Fifty percent for allocation to the department for maintenance of the state highway system or for purposes of the State Highway Operation and Protection Program.(2) Fifty percent for apportionment to cities and counties by the Controller pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103 for the purposes authorized by this chapter.(i) (1) (A) This subdivision paragraph shall apply to how the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the revenues remaining in the Transportation Improvement Fee Subaccount after any adjustments made pursuant to paragraph (2) are used to fund the 50-percent allocation to the department in paragraph (1) of subdivision (h) and the 50-percent apportionment to cities and counties in paragraph (2) of subdivision (h). Nothing in this subdivision or in Section 14474.1 of the Government Code shall reduce, modify, or otherwise impact the continuous appropriation of the 50-percent allocation of the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount to cities and counties pursuant to paragraph (2) of subdivision (h).(B) The revenues in the Transportation Improvement Fee Subaccount specified in subdivision (h) shall be used first to fund the allocation specified in paragraph (1) of subdivision (h). The revenues from the Transportation Improvement Fee Subaccount used to fund the allocation specified in paragraph (1) of subdivision (h) shall be deposited into the State Highway and SHOPP TIF Account, which is hereby created in the State Transportation Fund.(C) If the revenues in the Transportation Improvement Fee Subaccount do not fully satisfy the allocation specified in paragraph (1) of subdivision (h), the revenues in the Road Maintenance and Rehabilitation Account shall be used to fund the remaining portion of the allocation specified in paragraph (1) of subdivision (h).(D) The revenues in the Road Maintenance and Rehabilitation Account and any revenues in the Transportation Improvement Fee Subaccount that remain after the allocation specified in paragraph (1) of subdivision (h) shall be used to fund the allocation specified in paragraph (2) of subdivision (h).(2) (A) Except as provided in subparagraphs (B) and (C), revenues in the Transportation Improvement Fee Subaccount shall not be used to satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive.(B) If there are insufficient revenues in the Road Maintenance and Rehabilitation Account to fully satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive, revenues in the Transportation Improvement Fee Subaccount shall be used to satisfy the remaining portion of those deductions that are not satisfied by the revenues in the Road Maintenance and Rehabilitation Account.(C) Revenues in the Transportation Improvement Fee Subaccount shall may, upon appropriation by the Legislature, be used to satisfy the allocation set forth in subdivision (e). |
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| 377 | | - | 2032. (a) (1) After deducting the amounts appropriated in the annual Budget Act, as provided in Section 2031.5, two hundred million dollars ($200,000,000) of the remaining revenues deposited in the Road Maintenance and Rehabilitation Account shall be set aside annually for local or regional transportation agencies that have sought and received voter approval of taxes or that have imposed fees, including uniform developer fees as defined by subdivision (b) of Section 8879.67 of the Government Code, which taxes or fees are dedicated solely to transportation improvements. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, the Controller shall set aside one-eighth of this amount, to accumulate a total of two hundred million dollars ($200,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(2) Eligible projects under this subdivision include, but are not limited to, sound walls for a freeway that was built before 1987 without sound walls and with or without high-occupancy vehicle lanes if the completion of the sound walls has been deferred due to lack of available funding for at least 20 years and a noise barrier scope summary report has been completed within the last 20 years.(3) Notwithstanding Section 13340 of the Government Code, the funds available under this subdivision in each fiscal year are hereby continuously appropriated for allocation by the commission for road maintenance and rehabilitation and other transportation improvement projects pursuant to Section 2033.(b) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amount allocated in subdivision (a), beginning in the 201718 fiscal year, one hundred million dollars ($100,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, on the Active Transportation Program established pursuant to Chapter 8 (commencing with Section 2380) to be allocated by the California Transportation Commission pursuant to Section 2381. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of one hundred million dollars ($100,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(c) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) and (b), beginning in the 201718 fiscal year, four hundred million dollars ($400,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for bridge and culvert maintenance and rehabilitation. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of four hundred million dollars ($400,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(d) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (c), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be transferred annually to the State Highway Account for expenditure, upon appropriation by the Legislature, to supplement the freeway service patrol program. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(e) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (d), inclusive, in the 201718 to 202122 fiscal years, inclusive, from revenues in the Road Maintenance and Rehabilitation Account that are not subject to Article XIX of the California Constitution, five million dollars ($5,000,000) shall be appropriated in each fiscal year to the California Workforce Development Board to assist local agencies to implement policies to promote preapprenticeship training programs to carry out the projects that are funded by the account pursuant to Section 2038. Funds appropriated pursuant to this subdivision in the Budget Act but remaining unexpended at the end of each applicable fiscal year shall be reappropriated for the same purposes in the following years Budget Act, but all funds appropriated or reappropriated pursuant to this subdivision in the Budget Act shall be liquidated no later than June 30, 2027.(f) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (e), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for local planning grants, as described in Section 2033.5. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(g) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (f), inclusive, beginning in the 201718 fiscal year and each fiscal year thereafter, from the remaining revenues, five million dollars ($5,000,000) shall be available, upon appropriation, to the University of California for the purpose of conducting transportation research and two million dollars ($2,000,000) shall be available, upon appropriation, to the California State University for purposes of conducting transportation research and transportation-related workforce education, training, and development. Before the start of each fiscal year, the Secretary of Transportation and the chairs of the Assembly Committee on Transportation and the Senate Committee on Transportation and Housing may set out a recommended priority list of research components to be addressed in the upcoming fiscal year.(h) Notwithstanding Section 13340 of the Government Code, the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount are hereby continuously appropriated as follows and as provided in subdivision (i):(1) Fifty percent for allocation to the department for maintenance of the state highway system or for purposes of the State Highway Operation and Protection Program.(2) Fifty percent for apportionment to cities and counties by the Controller pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103 for the purposes authorized by this chapter.(i) (1) (A) This paragraph shall apply to how the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the revenues remaining in the Transportation Improvement Fee Subaccount after any adjustments made pursuant to paragraph (2) are used to fund the 50-percent allocation to the department in paragraph (1) of subdivision (h) and the 50-percent apportionment to cities and counties in paragraph (2) of subdivision (h). Nothing in this subdivision or in Section 14474.1 of the Government Code shall reduce, modify, or otherwise impact the continuous appropriation of the 50-percent allocation of the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount to cities and counties pursuant to paragraph (2) of subdivision (h).(B) The revenues in the Transportation Improvement Fee Subaccount specified in subdivision (h) shall be used first to fund the allocation specified in paragraph (1) of subdivision (h). The revenues from the Transportation Improvement Fee Subaccount used to fund the allocation specified in paragraph (1) of subdivision (h) shall be deposited into the State Highway and SHOPP TIF Account, which is hereby created in the State Transportation Fund.(C) If the revenues in the Transportation Improvement Fee Subaccount do not fully satisfy the allocation specified in paragraph (1) of subdivision (h), the revenues in the Road Maintenance and Rehabilitation Account shall be used to fund the remaining portion of the allocation specified in paragraph (1) of subdivision (h).(D) The revenues in the Road Maintenance and Rehabilitation Account and any revenues in the Transportation Improvement Fee Subaccount that remain after the allocation specified in paragraph (1) of subdivision (h) shall be used to fund the allocation specified in paragraph (2) of subdivision (h).(2) (A) Except as provided in subparagraphs (B) and (C), revenues in the Transportation Improvement Fee Subaccount shall not be used to satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive.(B) If there are insufficient revenues in the Road Maintenance and Rehabilitation Account to fully satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive, revenues in the Transportation Improvement Fee Subaccount shall be used to satisfy the remaining portion of those deductions that are not satisfied by the revenues in the Road Maintenance and Rehabilitation Account.(C) Revenues in the Transportation Improvement Fee Subaccount may, upon appropriation by the Legislature, be used to satisfy the allocation set forth in subdivision (e). |
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| 374 | + | 2032. (a) (1) After deducting the amounts appropriated in the annual Budget Act, as provided in Section 2031.5, two hundred million dollars ($200,000,000) of the remaining revenues deposited in the Road Maintenance and Rehabilitation Account shall be set aside annually for local or regional transportation agencies that have sought and received voter approval of taxes or that have imposed fees, including uniform developer fees as defined by subdivision (b) of Section 8879.67 of the Government Code, which taxes or fees are dedicated solely to transportation improvements. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, the Controller shall set aside one-eighth of this amount, to accumulate a total of two hundred million dollars ($200,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(2) Eligible projects under this subdivision include, but are not limited to, sound walls for a freeway that was built before 1987 without sound walls and with or without high-occupancy vehicle lanes if the completion of the sound walls has been deferred due to lack of available funding for at least 20 years and a noise barrier scope summary report has been completed within the last 20 years.(3) Notwithstanding Section 13340 of the Government Code, the funds available under this subdivision in each fiscal year are hereby continuously appropriated for allocation by the commission for road maintenance and rehabilitation and other transportation improvement projects pursuant to Section 2033.(b) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amount allocated in subdivision (a), beginning in the 201718 fiscal year, one hundred million dollars ($100,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, on the Active Transportation Program established pursuant to Chapter 8 (commencing with Section 2380) to be allocated by the California Transportation Commission pursuant to Section 2381. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of one hundred million dollars ($100,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(c) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) and (b), beginning in the 201718 fiscal year, four hundred million dollars ($400,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for bridge and culvert maintenance and rehabilitation. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of four hundred million dollars ($400,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(d) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (c), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be transferred annually to the State Highway Account for expenditure, upon appropriation by the Legislature, to supplement the freeway service patrol program. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(e) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (d), inclusive, in the 201718 to 202122 fiscal years, inclusive, from revenues in the Road Maintenance and Rehabilitation Account that are not subject to Article XIX of the California Constitution, five million dollars ($5,000,000) shall be appropriated in each fiscal year to the California Workforce Development Board to assist local agencies to implement policies to promote preapprenticeship training programs to carry out the projects that are funded by the account pursuant to Section 2038. Funds appropriated pursuant to this subdivision in the Budget Act but remaining unexpended at the end of each applicable fiscal year shall be reappropriated for the same purposes in the following years Budget Act, but all funds appropriated or reappropriated pursuant to this subdivision in the Budget Act shall be liquidated no later than June 30, 2027.(f) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (e), inclusive, beginning in the 201718 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for local planning grants, as described in Section 2033.5. The Controller shall each month set aside one-twelfth of this amount, except in the 201718 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.(g) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (f), inclusive, beginning in the 201718 fiscal year and each fiscal year thereafter, from the remaining revenues, five million dollars ($5,000,000) shall be available, upon appropriation, to the University of California for the purpose of conducting transportation research and two million dollars ($2,000,000) shall be available, upon appropriation, to the California State University for purposes of conducting transportation research and transportation-related workforce education, training, and development. Before the start of each fiscal year, the Secretary of Transportation and the chairs of the Assembly Committee on Transportation and the Senate Committee on Transportation and Housing may set out a recommended priority list of research components to be addressed in the upcoming fiscal year.(h) Notwithstanding Section 13340 of the Government Code, the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount are hereby continuously appropriated as follows and as provided in subdivision (i):(1) Fifty percent for allocation to the department for maintenance of the state highway system or for purposes of the State Highway Operation and Protection Program.(2) Fifty percent for apportionment to cities and counties by the Controller pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103 for the purposes authorized by this chapter.(i) (1) (A) This subdivision paragraph shall apply to how the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the revenues remaining in the Transportation Improvement Fee Subaccount after any adjustments made pursuant to paragraph (2) are used to fund the 50-percent allocation to the department in paragraph (1) of subdivision (h) and the 50-percent apportionment to cities and counties in paragraph (2) of subdivision (h). Nothing in this subdivision or in Section 14474.1 of the Government Code shall reduce, modify, or otherwise impact the continuous appropriation of the 50-percent allocation of the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account and the Transportation Improvement Fee Subaccount to cities and counties pursuant to paragraph (2) of subdivision (h).(B) The revenues in the Transportation Improvement Fee Subaccount specified in subdivision (h) shall be used first to fund the allocation specified in paragraph (1) of subdivision (h). The revenues from the Transportation Improvement Fee Subaccount used to fund the allocation specified in paragraph (1) of subdivision (h) shall be deposited into the State Highway and SHOPP TIF Account, which is hereby created in the State Transportation Fund.(C) If the revenues in the Transportation Improvement Fee Subaccount do not fully satisfy the allocation specified in paragraph (1) of subdivision (h), the revenues in the Road Maintenance and Rehabilitation Account shall be used to fund the remaining portion of the allocation specified in paragraph (1) of subdivision (h).(D) The revenues in the Road Maintenance and Rehabilitation Account and any revenues in the Transportation Improvement Fee Subaccount that remain after the allocation specified in paragraph (1) of subdivision (h) shall be used to fund the allocation specified in paragraph (2) of subdivision (h).(2) (A) Except as provided in subparagraphs (B) and (C), revenues in the Transportation Improvement Fee Subaccount shall not be used to satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive.(B) If there are insufficient revenues in the Road Maintenance and Rehabilitation Account to fully satisfy the deductions set forth in Section 2031.5 and subdivisions (a) to (g), inclusive, revenues in the Transportation Improvement Fee Subaccount shall be used to satisfy the remaining portion of those deductions that are not satisfied by the revenues in the Road Maintenance and Rehabilitation Account.(C) Revenues in the Transportation Improvement Fee Subaccount shall may, upon appropriation by the Legislature, be used to satisfy the allocation set forth in subdivision (e). |
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