Proposition 1B			00.00 10/05
	Full Extract
	Submitted as: "Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006"
	Type:  Amendment to the Government Code
	Subject:  $19.925 Billion Bond for transportation, traffic, transit, and security purposes.
	Submitters:  Perata, California Legislature, SB 1266
		Senate Vote: 37 Yes, 1 No (of 40)
		Assembly Vote: 61 Yes, 10 No (of 80)
	Supporting Organization:
		Name:	The Rebuild California Plan 1127 11th Street, Suite 950 Sacramento, CA 95814
		Email:
		Web Site: www.plan4ourfuture.org
		Phone:  - 916.443.5900
	Opposing Organization:
		Name:	California Taxpayer Protection Committee 9971 Base Line Road Elverta, CA 95626-9411
		Email: info at protecttaxpayers.com
		Web Site: www.protecttaxpayers.com
		Phone: (916) 991-9300
	Section 1
	Adds Chapter 12.49 to Division 1 of Title 2 of the Government Code
	8879.23 Creates Highway Safety, Traffic Reduction, Air Quality and Port Security Fund of 2006 in State Treasury.
	8879.23 (a) (1)  Deposits $4.5 billion in a Corridor Mobility Improvement Account, created by this measure, to be made available to the California Transportation Commission by later appropriation by the Legislature.  Its purpose is to pay for performance improvements on highly congested travel corridors in California.
	8879.23 (a) (2)  Requires the California Transportation Commission to establish guidelines for spending the above sum, by December 1, 2006.
	8879.23 (a) (3)  Per the above guidelines, by January 15, 2007, the Department of Transportation (DOT) must "nominate" projects to which money could be allocated.
	8879.23 (a) (4)  Per the above guidelines, by January 15, 2007, regional transportation agencies may also nominate projects, that would fit with regional transport plans.
	8879.23 (a) (5)  The above nominations must be documented and part of a plan.
	8879.23 (a) (6)  Taking into account the nominations and documentation, the Commission, by March 1, 2007, "shall adopt an initial program of projects to be funded".  To be included in the program, a project must meet ALL of the following criteria:
		(A) Is a high priority project "in the corridor", meaning that it must be either (i) nominated by both the DOT and the regional transport authority or (ii) the money completes the funding of a project also funded by state, local, or federal funds.
		(B) Can begin work no later than December 31, 2012.
		(C) Improves mobility, connectivity, or operation and safety.
		(D) Improves access to jobs, housing, markets and commerce.
	8879.23 (a) (7)  If two "competing projects" each meet the above criteria, additional benefits must be considered.  These are:
		(A) The project provides quantifiable air quality benefits.
		(B) The project increases the safety for travelers.
	8879.23 (a) (8)  The Commission must make an annual report to the Legislature summarizing "its activities related to the administration of this program".
	8879.23 (a) (9)  In adopting a program, the Commission must ensure that the program (i) is geographically balanced, (ii) provides mobility improvements, and (iii) pulls in the maximum contribution of federal dollars.
	8879.23 (b) Makes available $1 Billion to the state Department of Transportation, for "improvements to State Route 99", to be accessed by later appropriation by the Legislature.
	8879.23 (c)  Deposits $3.1 billion in a California Ports Infrastructure, Security, and Air Quality Improvement Account, created by this measure, to be accessed by later appropriation by the Legislature, in accord with the following criteria:
	8879.23 (c) (1)
		(A) $2 billion of the $3.1 billion is to be transferred to a Trade Corridors Improvement Fund, created by this measure, to be accessed by later appropriation of the Legislature to the California Transportation Commission.  Eligible projects may be, but are not limited to, the following:
			(i) Highway capacity improvements
			(ii) Freight rail system improvements
			(iii) Projects to enhance the capacity and efficiency of ports
			(iv) Truck corridor improvements
			(v) Border access improvements
			(vi) Surface transportation improvements
		(B) In its allocation of funds, the Commission must (i) address the State's most urgent needs, (ii) balance the demands of various ports, (iii) provide reasonable balance between regions, and (iv) emphasize mobility while reducing emissions.
		(C) The Commission must allocate the funds assigned by this paragraph only to projects for which local, federal or private supplemental funds have already been committed, never paying more than half the total.  The sole exception to this is border access improvements
		(D) The Commission shall make an annual report to the Legislature summarizing "its activities related to the administration of this program".
	8879.23 (c) (2) $1 billion of the $3.1 billion is to be made available by later appropriation of the Legislature to the California State Air Resources Board to be used for emission reductions, supplementing the expenditure of funds already required by law.
	8879.23 (c) (3) $100 million ($.1B) of the $3.1 billion is to be made available by later appropriation of the Legislature to the Office of Emergency Services, to improve monitoring processes and purchase security equipment upgrades.
	8879.23 (d) $200 million ($.2B) is to be made available by later appropriation of the Legislature for school-bus retrofit (to reduce pollution and children's exposure to diesel exhaust).
	8879.23 (e) Deposits $2 billion in a Transportation Facilities Account, created by this measure, to be accessed by later appropriation by the Legislature, to the State Transportation Improvement Program to "augment funds otherwise available for this purpose."  The purpose is to fund projects in the state transportation improvement program.
	8879.23 (f) (1) Deposits $4 billion in a Public Transportation Modernization, Improvement, and Service Enhancement Account, created by this measure, to be accessed by later appropriation by the Legislature to the Department of Transportation, to be used for intercity rail projects and other transit operators.
	8879.23 (f) (2) Of the $4 billion, $400 million ($.4B) will be available to the department for intercity rail improvements, and of that, $125 million must be used to acquire additional intercity railcars and locomotives.
	8879.23 (f) (3) The remaining portion of the $4 billion goes to the Controller.  50% ($1.8 billion) goes to eligible agencies under Section 99313 of the Public Utilities Code and 50% ($1.8 billion) goes to eligible agencies under Section 99314 of the Public Utilities Code.  [99313 says "an amount shall be allocated by the Controller to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board, based on the ratio of the population of the area under its jurisdiction to the total population of the state."  99314 says "an amount shall be allocated by the Controller to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board."  The allocation is proportionate to the revenue of the various mass transit authorities within each district.]
	8879.23 (g) Deposits $1 billion in a State-Local Partnership Program Account, created by this measure, to be accessed by later appropriation by the Legislature, to the Department of Transportation to be allocated over a five-year period, to fund projects "nominated" by a local transportation agency.  The local agency must provide a dollar for dollar match in order to receive state funds.
	8879.23 (h) Deposits $1 billion in a Transit System Safety, Security and Disaster Response Account, created by this measure, to be accessed by later appropriation by the Legislature, to create disaster response systems, subject to "such conditions and criteria as the Legislature may provide."
	8879.23 (i) Deposits $125 million ($.125B) in a Local Bridge Seismic Retrofit Account, created by this measure, to be accessed by later appropriation by the Legislature, to provide the 11.5 % match for Federal Highway Bridge funds for seismic work on bridges.
	8879.23 (j) (1) Deposits $250 million ($.25B) in a Highway-Railroad Crossing Safety Account, created by this measure, to be accessed by later appropriation by the Legislature, to the Department of Transportation for completion of high priority grade separation and railroad crossing improvements.  A dollar for dollar match of non-state funds is required.  The limitation on maximum project cost specified in Section 2454 (g) of the Streets and Highways Code shall not be applied to these expenditures.  [This limit is $5 million]
	8879.23 (j) (2) Notwithstanding the content of the above paragraph, $100 million ($.1B) of these funds will be assigned to projects selected in consultation with the High Speed Rail Authority.
	8879.23 (k) (1) Deposits $750 million ($.75B) in a Highway Safety, Rehabilitation and Preservation Account, created by this measure, to be accessed by later appropriation by the Legislature, to the Department of Transportation, as allocated by the California Transportation Commission, to support the state highway operation and protection program described in Section 14526.5 of this [Government] code.  [14526.5 charges the DOT with "the expenditure of transportation funds for major capital improvements that are necessary to preserve and protect the state highway system".
	8879.23 (k) (2) The Department shall develop a program "for distribution" of $250 million ($.25B) of these funds for technology-based improvements to improve safety, operations and the effective capacity of local streets and roads.
	8879.23 (l) (1) Deposits $2 billion in a Local Streets and Road Improvement, Congestion Relief, and Traffic Safety Account, created by this measure, to be accessed by later appropriation by the Legislature, and paid to the Controller for the following purposes:
		(A) $1 billion (50%) of the $2 billion must be paid to the counties, divided as follows:
			(i) $750 million ($.75B) distributed among the counties in the same ratio as the number of vehicles in those counties has to the total vehicles in the state.
			(ii) $250 million ($.25B) distributed among the counties in the same ratio as the number of miles of county maintained road in those counties has to the total miles of county maintained road in the state.
		(B) $1 billion (50%) of the $2 billion shall be paid to the cities, distributed among the cities in the same ratio as the population of the city has to the total population of the state.  No city shall receive less than $400 thousand.
	8879.23 (l) (2) Funds received by counties and cities under this section must not be co-mingled with other local funds.
	8879.23 (l) (3) Specifies the source to be used for population counts, which is the most recent estimate by the Demographic Research Unit of the Department of Finance.  []
	8879.23 (l) (4) Limits the way in which funds provided under this paragraph may be spent by the cities and counties.
	8879.23 (l) (5) Authorizes the Controller to verify that expenditures were made in accord with these limits, and to require reimbursement to the State if the expenditure is not valid.
	8879.25 Authorizes sale of a total $19.925 billion in bonds, and pledges full faith and credit of the State for their repayment.
	8879.26 Specifies that bond handling is to be consistent with the State General Obligation Bond Law, part of this [Government] Code, starting with section 16720, except Section 16727 (a) where that is inconsistent with this initiative. [16727 limits what bond proceeds may be spent upon, and (a) talks about the costs of construction or acquisition of capital assets.]
	8879.27 (a) Creates the Highway Safety, Traffic Reduction, Air Quality and Port Security Committee to manage the bond.  Members are the Treasurer, Controller, Director of Finance, and Secretary of the Business, Transportation, and Housing Agency, with the Treasurer serving as Chair.
	8879.27 (b) Authorizes the Committee to establish guidelines for its own administration.
	8879.27 (c) To satisfy the State General Obligation Bond Law, defines "board" as "any department receiving an allocation pursuant to this chapter."
	8879.28 Authorizes the Committee, upon request by the board, to issue bonds, at times and in amounts to be determined by the Committee.
	8879.29 Demands that "there shall be collected annually, ... in addition to the ordinary revenue of the state", "a sum of money ... sufficient to pay the principal of, and interest on" the bonds.
	8879.30 Contrary to Section 13340 of this [Government] Code, this initiative immediately withdraws from the General Fund an amount equal to the sum of (a) the principal and interest on the bonds, when they become due and payable, and (b) any additional funds required to carry out 8879.32 below.  [13340 says "on and after July 1, 2007, no moneys in any fund that, by any statute other than a Budget Act, are continuously appropriated without regard to fiscal years, may be encumbered unless the Legislature, by statute, specifies that the moneys in the fund are appropriated for encumbrance. "]
	8879.31 The board may request the Pooled Money Investment Board (PMIB) to make a loan from the Pooled Money Investment Account (PMIA), per Section 16312.  The amount requested may not exceed the amount of bonds authorized to be sold but not yet actually sold. [The PMIB, consisting of the Controller, Treasurer and Director of Finance, is created and discussed starting at 16480 of the Government Code.  The PMIA holds state funds available for expenditure but not currently committed.]
	8879.32 The Director of Finance may, by Executive Order, withdraw from the General Fund any amount less than the amount of bonds authorized to be sold but not yet actually sold.  Amounts withdrawn MUST be deposited to the Highway Safety, Traffic Reduction, Air Quality and Port Security Fund of 2006.   The sale of bonds must then be used to repay the amount withdrawn.
	8879.33 Bonds may be refunded.  Voter approval of this initiative constitutes approval of refunding bonds.  ["Refund" means to pay off an existing bond by taking out a new one, for example at a lower interest rate.]
	8879.34 The maturity period for the Bonds may not exceed 30 years.
	8879.35 The Legislature declares revenues from this bond are not "proceeds of taxes" and therefore not liable to the limitations imposed by Article XIII B of the state Constitution [Prop 13]
	8879.36  The Treasurer is authorized to maintain a separate account to hold and handle investment earnings, and pay out these earnings as necessary to maintain the Federal tax-exempt status of the bonds.
	8879.37 Any interest paid on the bonds shall be transferred to the General Fund as a credit to expenditures for bond interest.
	8879.38 Any interest paid on the bonds shall be transferred to the General Fund as a credit to expenditures for bond interest.
	Section 2
	Puts Section 1 into effect following adoption of this initiative by the voters.
	Section 3
	Contrary to sections 13115 and 13117 of the Elections Code, specifies a numbering scheme and order for this and 4 other initiatives created by the Legislature.  [Section 13115 specifies a certain order in which measures are to appear on the ballot.  13117 requires Measures to be numbered in a continuous sequence.  The 1A, 1B ... sequence would otherwise violate this.]
	Section 4
	Contrary to sections 13247 and 13281 of the Elections Code, specifies the exact wording to be used on the ballot to describe this Initiative.  [13427 limits the ballot statement to an abbreviated 75 words prepared by the Attorney General; 13281 repeats this]
	Section 5
	Declares SB 1266 to be an emergency act, because of the need to get the initiative onto the November 2006 ballot
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