2005 California Government Code Sections 14520-14534 CHAPTER 2. DUTIES

14520.  The commission shall advise and assist the Secretary of the
Business, Transportation and Housing Agency and the Legislature in
formulating and evaluating state policies and plans for
transportation programs in the state.
14520.3.  (a) The Legislature, through the enactment of Senate Bill
45 during the 1997-98 Regular Session, intends to establish
priorities and processes for the programming and expenditure of state
transportation funds that are at the discretion of the Legislature
and the Governor.
   (b) The department is responsible for the planning, design,
construction, maintenance, and operation of the state highway system
and Senate Bill 45 is not intended to alter that responsibility.
   (c) In addition to other responsibilities established by law, the
department is the responsible agency for performing all state highway
project components specified in subdivision (b) of Section 14529 of
the Government Code except for construction.
   (d) The Legislature, through the enactment of this section,
intends that nothing in subdivision (b) of Section 14529 of the
Government Code or any other provision in the act that added this
section to the Government Code shall be construed to expand or
restrict the authority or responsibility of the department, as
provided by statute or the California Constitution, to perform the
components described in subdivision (b) of Section 14529 of the
Government Code on state highways.
14521.  The commission may request and review reports of the
department and of other entities which pertain to transportation
issues and concerns that the commission determines need special
study.
14522.  In cooperation with the regional transportation planning
agencies, the commission may prescribe study areas for analysis and
evaluation by such agencies and guidelines for the preparation of the
regional transportation plans.
14523.  The commission may prepare an independent evaluation of the
department's budget regarding the adequacy of funding levels and the
relative needs of program categories as defined in Section 167 of the
Streets and Highways Code and submit its recommendations to the
Legislature not later than April 1 of each year.  The report shall
reflect the commission's judgment regarding the overall funding
levels for each program category and shall not duplicate the
item-by-item analysis conducted by the Legislative Analyst.
14524.  (a) Not later than July 15, 2001, and July 15 of each
odd-numbered year thereafter, the department shall submit to the
commission a five-year estimate pursuant to Section 164 of the
Streets and Highways Code, in annual increments, of all federal and
state funds reasonably expected to be available during the following
five fiscal years.
   (b) The estimate shall specify the amount that may be programmed
in each county for regional improvement programs pursuant to
paragraph (2) of subdivision (a) of Section 164 of the Streets and
Highways Code and shall identify any statutory restriction on the use
of particular funds.
   (c) For the purpose of estimating revenues, the department shall
assume that there will be no changes in existing state and federal
statutes.  Federal funds available for demonstration projects that
are not subject to federal obligational authority, or are accompanied
with their own dedicated obligational authority, shall not be
considered funds that would otherwise be available to the state and
shall not be included in the fund estimate.
   (d) The method by which the estimate is determined shall be
determined by the commission, in consultation with the department,
transportation planning agencies, and county transportation
commissions.
14524.16.  (a) The department shall, as part of the reports required
pursuant to Sections 14524.15 and 14525.5, report on its costs of
project development for all state transportation improvement program
projects awarded during the previous fiscal year.
   (b) For purposes of this section, "costs of project development"
includes all noncapital costs incurred by the department from
completion of the project study report through the award of the
construction contract.
   The costs of project development include the prorated share of
distributed departmental administration, as identified in the
Governor's proposed budget, attributable to these project development
activities.  The calculation of the prorated share of departmental
administration shall exclude tort payments, costs of legal services
associated with those payments, and central administrative services.
   (c) The department shall attempt to keep its cost of project
development, as defined in subdivision (b), from exceeding 20 percent
of the value of state transportation improvement program projects,
including right-of-way costs, awarded during the previous fiscal
year, except for those projects where the department has provided
design oversight only or has not been the responsible agency for
project design.
   The average cost of project delivery for the three previous fiscal
years shall not exceed the 20 percent target.
   (d) On or before June 1 of each year, the Legislative Analyst
shall assess the department's costs of project development.
14524.2.  (a) If the department's total project delivery plan for
any year requires a permanent and temporary capital outlay support
staffing level which equals the 1986-87 budgeted permanent and
temporary capital outlay support staffing level, the department's
budget request for that year shall contain a permanent and temporary
capital outlay support staffing level equal to its 1986-87 authorized
permanent and temporary capital outlay support staffing level.
   (b) If the department's total project delivery plan for any year
requires a permanent and temporary capital outlay support staffing
level and personnel year equivalents for cash overtime and contract
services which exceed the 1986-87 authorized permanent and temporary
capital outlay support staffing level and personnel year equivalents
for cash overtime and contract services, the department's budget
request for that year shall contain a permanent and temporary capital
outlay support staffing level and personnel year equivalents for
cash overtime equal to the 1986-87 authorized permanent and temporary
capital outlay support staffing level and personnel year equivalents
for cash overtime plus one-half of the excess over the 1986-87
authorized permanent and temporary capital outlay support staffing
level and personnel year equivalents for cash overtime and contract
services.  The department may contract out, pursuant to Section
14131, an equal number of personnel year equivalents for each
authorized permanent and temporary capital outlay support staffing
level and personnel year equivalents for cash overtime which exceed
the 1986-87 authorized permanent and temporary capital outlay support
staffing level and personnel year equivalents for cash overtime.
   (c) For purposes of this section, "permanent and temporary capital
outlay support staffing level" means the department's permanent and
temporary capital outlay support staffing level funded by state and
federal funds through the State Highway Account.
14525.  (a) Not later than August 15, 2001, and August 15 of each
odd-numbered year thereafter, the commission shall adopt a five-year
estimate pursuant to Section 164 of the Streets and Highways Code, in
annual increments, of all state and federal funds reasonably
expected to be available during the following five fiscal years.
   (b) The estimate shall specify the amount that may be programmed
in each county for regional improvement programs under paragraph (2)
of subdivision (a) of Section 164 of the Streets and Highways Code
and shall identify any statutory restriction on the use of particular
funds.
   (c) For the purpose of estimating revenues, the commission shall
assume that there will be no change in existing state and federal
statutes.  Federal funds available for demonstration projects that
are not subject to federal obligational authority, or are accompanied
with their own dedicated obligational authority, shall not be
considered funds that would otherwise be available to the state and
shall not be included in the fund estimate.
   (d) If the commission finds that legislation pending before the
Legislature or the United States Congress may have a significant
impact on the fund estimate, the commission may postpone the adoption
of the fund estimate for no more than 90 days.  Prior to March 1 of
each even-numbered year, the commission may amend the estimate
following consultation with the department, transportation planning
agencies, and county transportation commissions to account for
unexpected revenues or other unforeseen circumstances.  In the event
the fund estimate is amended, the commission shall extend the dates
for the submittal of improvement programs as specified in Sections
14526 and 14527 and for the adoption of the state transportation
improvement program pursuant to Section 14529.
14525.1.  The department and the commission shall use an inflation
rate that has been established by the Department of Finance.  The
Department of Finance shall consult with the Legislative Analyst and
the Department of Transportation when calculating the inflation rate
for this purpose.
14525.5.  (a) The department shall submit a project delivery report
to the Governor and the Legislature not later than November 15 of
each year.  The report shall include all state highway projects that
are included in the adopted state transportation improvement program
costing one million dollars ($1,000,000) or more and for which the
department is the responsible agency for project development work.
   (b) For each of these projects, the report shall identify the
milestone dates by month and year.
   (c) For each fiscal year corresponding with the fiscal year used
in programming the state transportation improvement program, the
report shall identify the number of these projects which met one or
more of the milestone dates.  The report shall also identify each
project where the  department failed to meet one or more milestones.
For each of those projects, the report shall identify the specific
circumstances resulting in the delay, and present a plan to resolve
any problems and a new schedule for delivery.
   (d) For purposes of this section, each of the following is a
"milestone date":
   (1) Commencement of the environmental process.
   (2) Commencement of the circulation of the draft environmental
documents.
   (3) Final approval of the environmental documents.
   (4) Commencement of work on the plans, specifications, and
estimates.
   (5) Project ready to advertise.
   (6) Project delivery.
   (e) "Project delivery" is the date on which the project is
advertised.
14526.  (a) Not later than December 15, 2001, and December 15 of
each odd-numbered year thereafter, and after consulting with the
transportation planning agencies, county transportation commissions,
and transportation authorities, the department shall submit to the
commission its five-year interregional transportation improvement
program consisting of all of the following:
   (1) Projects to improve state highways, pursuant to subdivision
(b) of Section 164 of the Streets and Highways Code.
   (2) Projects to improve the intercity passenger rail system.
   (3) Projects to improve interregional movement of people,
vehicles, and goods.
   (b) Projects may not be included in the interregional
transportation improvement program without a project study report or
major investment study.
   (c) Major projects shall include current costs updated as of
November 1 of the year of submittal and escalated to the appropriate
year, and shall be consistent with, and provide the information
required in, subdivision (b) of Section 14529.
   (d) Projects included in the interregional transportation
improvement program shall be consistent with the adopted regional
transportation plan.
14526.5.  (a) The department shall prepare a state highway operation
and protection program for the expenditure of transportation funds
for major capital improvements that are necessary to preserve and
protect the state highway system.  Projects included in the program
shall be limited to capital improvements relative to maintenance,
safety, and rehabilitation of state highways and bridges which do not
add a new traffic lane to the system.
   (b) The program shall include projects which are expected to be
advertised prior to July 1 of the year following submission of the
program, but which have not yet been funded.  The program shall
include those projects for which construction is to begin within four
fiscal years, starting July 1 of the year following the year the
program is submitted.
   (c) The program shall be submitted to the commission not later
than January 31 of each even-numbered year.  Prior to submitting the
plan, the department shall make a draft of its proposed program
available to transportation planning agencies for review and comment
and shall include the comments in its submittal to the commission.
   (d) The commission may review the program relative to its overall
adequacy, level of annual funding needed to implement the program,
and the impact of those expenditures on the state transportation
improvement program.  The commission shall approve and submit the
program to the Legislature and the Governor not later than April 1 of
each even-numbered year.
   (e) Expenditures for these projects shall not be subject to
Sections 188 and 188.8 of the Streets and Highways Code.
14527.  (a) After consulting with the department, the regional
transportation planning agencies and county transportation
commissions shall adopt and submit to the commission and the
department, not later than December 15, 2001, and December 15 of each
odd-numbered year thereafter, a five-year regional transportation
improvement program in conformance with Section 65082.  In counties
where a county transportation commission or authority has been
created pursuant to Chapter 2 (commencing with Section 130050) of
Division 12 of the Public Utilities Code, the commission or the
authority shall adopt and submit the county transportation
improvement program, in conformance with Sections 130303 and 130304
of that code, to the multicounty designated transportation planning
agency.  Other information, including a program for expenditure of
local or federal funds, may be submitted for information purposes
with the program, but only at the discretion of the transportation
planning agencies or the county transportation commissions.
   (b) The regional transportation improvement program shall include
all projects to be funded with regional improvement funds under
paragraph (2) of subdivision (a) of Section 164 of the Streets and
Highways Code.  The regional programs shall be limited to projects to
be funded in whole or in part with regional improvement funds that
shall include all projects to receive allocations by the commission
during the following five fiscal years.  For each project, the total
expenditure for each project component and the total amount of
commission allocation and the year of allocation shall be stated.
The total cost of projects to be funded with regional improvement
funds shall not exceed the amount specified in the fund estimate made
by the commission pursuant to Section 14525.
   (c) The regional transportation planning agencies and county
transportation commissions may recommend projects to improve state
highways with interregional improvement funds pursuant to subdivision
(b) of Section 164 of the Streets and Highways Code.  The
recommendations shall be separate and distinct from the regional
transportation program.  A project recommended for funding pursuant
to this subdivision shall constitute a usable segment and shall not
be a condition for inclusion of other projects in the regional
transportation improvement program.
   (d) The department may nominate or recommend the inclusion of
projects in the regional transportation improvement program to
improve state highways with regional transportation improvement funds
pursuant to paragraph (2) of subdivision (a) and subdivision (e) of
Section 164 of the Streets and Highways Code.  A regional
transportation planning agency and a county transportation commission
shall have sole authority for determining whether any of the project
nominations or recommendations are accepted and included in the
regional transportation improvement program adopted and submitted
pursuant to this section.  This authority provided to a regional
transportation planning agency or to a county transportation
commission extends only to a project located within its jurisdiction.
   (e) Major projects shall include current costs updated as of
November 1 of the year of submittal and escalated to the appropriate
year, and shall be consistent with, and provide the information
required in, subdivision (b) of Section 14529.
   (f) The regional transportation improvement program may not change
the project delivery milestone date of any project as shown in the
prior adopted state transportation improvement program without the
consent of the department or other agency responsible for the project'
s delivery.
   (g) Projects may not be included in the regional transportation
improvement program without a complete project study report or, for a
project that is not on a state highway, a project study report
equivalent or major investment study.
   (h) The transportation planning agencies and county transportation
commissions may request and receive an amount not to exceed 1
percent of their regional improvement fund expenditures for the
purposes of project planning, programming, and monitoring.  A
transportation planning agency or county transportation commission
not receiving federal metropolitan planning funds may request and
receive an amount not to exceed 5 percent of its regional improvement
fund expenditures for the purposes of project planning, programming,
and monitoring.
14528.5.  (a) To resolve local transportation problems resulting
from the infeasibility of planned state transportation facilities on
State Highway Route 238 and State Highway Route 84 between existing
State Highway Routes 238 and 880, the city or county in which either
of the planned facilities were to be located, acting jointly with the
transportation planning agency having jurisdiction over the city or
county, may develop and file with the commission a local alternative
transportation improvement program that addresses transportation
problems and opportunities in the county which were to be served by
the planned facilities. Priorities for funding in the local
alternative program shall go to projects in the local voter-approved
transportation sales tax measure.
   (b) The commission shall have the final authority regarding the
content and approval of the local alternative transportation
improvement program. The commission shall not approve any local
alternative transportation improvement program submitted under this
section after July 1, 2010.
   (c) All proceeds from the sale of the excess properties, less any
reimbursements due to the federal government and all costs incurred
in the sale of those excess properties, shall be allocated by the
commission to fund the approved local alternative transportation
improvement program and shall not be subject to Sections 188 and
188.8 of the Streets and Highways Code. The proceeds shall be used
only for state highway purposes.
   (d) This section does not apply to those highways that are in the
National System of Interstate and Defense Highways.
   (e) This section applies only to State Highway Routes 238 and 84.
14528.6.  A local alternative transportation improvement program,
approved pursuant to Section 14528.5, shall include all of the
following:
   (a) A program to provide relocation assistance for residents
eligible for relocation assistance pursuant to Chapter 16 (commencing
with Section 7260) of Division 7 of Title 1 of this code and
guidelines adopted pursuant to Section 50460 of the Health and Safety
Code.
   (b) A program to provide relocation assistance for all lower
income households, regardless of their eligibility for assistance
pursuant to subdivision (a), who will be displaced from their
residences because of actions taken to finance or implement the local
alternative improvement transportation program, including sale or
removal of their residences.  To be eligible for assistance, lower
income households shall have occupied their residence on the date
that the local alternative transportation improvement program was
approved by the commission.  The program shall comply with the
requirements, except eligibility requirements, of Chapter 16
(commencing with Section 7260) of Division 7 of Title 1 of this code
and with guidelines adopted pursuant to Section 50460 of the Health
and Safety Code.
   (c) A program to provide all persons or families who are not
otherwise eligible for assistance pursuant to subdivisions (a) and
(b), with relocation advice and moving expenses, as defined in
Section 7261 and subdivisions (a) and (b) of Section 7262.
   (d) A program to provide replacement housing units for persons and
families of low or moderate income at an affordable housing cost.
At a minimum, the program shall provide that the total number of new
units for persons or families of low or moderate income to be
provided shall be equal to or greater than the number of units
occupied by persons or families of low or moderate income displaced
by the local alternative transportation improvement program, and that
the total number of new housing units to be provided for lower
income households shall be equal to or greater than the number of
units occupied by lower income households displaced by the local
alternative transportation improvement program.  The number of units
so provided shall be determined at least one year prior to the date
the commission approves the local alternative transportation
improvement program.  If it is not feasible to replace the total
number of units required on surplus public property, other types of
property shall be used in order to provide the replacement units.
Replacement of the units shall be completed utilizing funds other
than those derived from the sale of excess properties and shall be
completed within four years of the date the persons or families are
displaced or, if unoccupied, from the date of demolition or removal.
Unoccupied units shall be replaced in the same ratio as units
occupied by persons and families of low and moderate income in the
right-of-way. It shall be an objective of the program that, where
financially feasible, the number of new housing units of persons and
families of low or moderate income shall be not less than 20 percent
of all new housing units developed on the aggregate surplus public
property.
   (e) For purposes of this section, the terms "affordable housing
cost," "lower income households," and "persons and families of low or
moderate income" shall be defined as provided in Division 31
(commencing with Section 50000) of the Health and Safety Code.
   (f) Unless specifically stated, this section shall in no way
reduce or limit any requirements for the provision of housing for
persons or families of low or moderate income as contained in any
other provision of law.
   (g) No state highway account funds shall be expended for planning
or implementing the housing provisions of the local alternative
transportation improvement program which are required to be carried
out pursuant to subdivisions (b) to (d), inclusive.
   (h) Neither the excess property nor the proceeds from the sale of
the excess property shall be used for housing purposes.  The excess
property may be used for housing purposes after sale by the
department.
14528.7.  A city or county acting jointly with the transportation
planning agency having jurisdiction over the city or county may adopt
a resolution requesting the rescission of a state highway route
location within the  city or county, as the case may be.  The city or
county, acting jointly with the transportation planning agency, may
submit an alternative state highway project proposal with the
resolution.  If the commission concurs in the resolution, the route
location shall be rescinded, and the department shall proceed with
the sale of excess real properties that were acquired for the
rescinded route location.
   In the case of a city or county under the jurisdiction of a county
transportation commission, only the county transportation commission
may adopt the resolution and submit an alternative state highway
project proposal.
14528.8.  When the department sells any real property or interest
therein acquired for a state highway route location rescinded
pursuant to Section 14528.7, the proceeds from the sale shall be
allocated by the commission for expenditure by the department to fund
the alternative state highway project proposed by the city or
county, as the case may be, if it is approved by the commission.
Expenditure of the proceeds for an alternative state highway project
within the same county is not subject to Sections 188 and 188.8 of
the Streets and Highways Code if the route location was rescinded
pursuant to Section 14528.7.
14529.  (a) The state transportation improvement program shall
include a listing of all capital improvement projects that are
expected to receive an allocation of state transportation funds under
Section 164 of the Streets and Highways Code, including revenues
from transportation bond acts, from the commission during the
following five fiscal years.  It shall include, and be limited to,
the projects to be funded with the following:
   (1) Interregional improvement funds.
   (2) Regional improvement funds.
   (b) For each project, the program shall specify the allocation or
expenditure amount and the allocation or expenditure year for each of
the following project components:
   (1) Completion of all permits and environmental studies.
   (2) Preparation of plans, specifications, and estimates.
   (3) The acquisition of rights-of-way, including, but not limited
to, support activities.
   (4) Construction and construction management and engineering,
including surveys and inspection.
   (c) Funding for right-of-way acquisition and construction for a
project may be included in the program only if the commission makes a
finding that the sponsoring agency will complete the environmental
process and can proceed with right-of-way acquisition or construction
within the five-year period.  No allocation for right-of-way
acquisition or construction shall be made until the completion of the
environmental studies and the selection of a preferred alternative.
   (d) The commission shall adopt and submit to the Legislature and
the Governor, not later than April 1 of each even-numbered year
thereafter, a state transportation improvement program.  The program
shall cover a period of five years, beginning July 1 of the year it
is adopted, and shall be a statement of intent by the commission for
the allocation or expenditure of funds during those  five years.  The
program shall include projects which are expected to receive funds
prior to July 1 of the year of adoption, but for which the commission
has not yet allocated funds.
   (e) The projects included in the adopted state transportation
improvement program shall be limited to those projects submitted or
recommended pursuant to Sections 14526 and 14527.  The total amount
programmed in each fiscal year for each program category shall not
exceed the amount specified in the fund estimate adopted under
Section 14525.
   (f) The state transportation improvement program is a resource
management document to assist the state and local entities to plan
and implement transportation improvements and to utilize available
resources in a cost-effective manner.  It is a document for each
county and each region to declare their intent to use available state
and federal funds in a timely and cost-effective manner.
   (g) Prior to the adoption of the state transportation improvement
program, the commission shall hold not less than one hearing in
northern California and one hearing in southern California to
reconcile any objections by any county or regional agency to the
department's program or the department's objections to any regional
program.
   (h) The commission shall incorporate projects that are included in
the regional transportation improvement program and are to be funded
with regional improvement funds, unless the commission finds that
the regional transportation improvement program is not consistent
with the guidelines adopted by the commission or is not a
cost-effective expenditure of state funds, in which case the
commission may reject the regional transportation improvement program
in its entirety.  The finding shall be based on an objective
analysis, including, but not limited to, travel forecast, cost, and
air quality.  The commission shall hold a public hearing in the
affected county or region prior to rejecting the program, or not
later than 60 days after rejecting the program.  When a regional
transportation improvement program is rejected, the regional entity
may submit a new regional transportation improvement program for
inclusion in the state transportation improvement program.  The
commission shall not reject a regional transportation improvement
program unless, not later than 60 days after the date it received the
program, it provided notice to the affected agency that specified
the factual basis for its proposed action.
   (i) A project may be funded with more than one of the program
categories listed in Section 164 of the Streets and Highways Code.
   (j) Notwithstanding any other provision of law, no local or
regional matching funds shall be required for projects that are
included in the state transportation improvement program.
   (k) The commission may include a project recommended by a regional
transportation planning agency or county transportation commission
pursuant to subdivision (c) of Section 14527, if the commission makes
a finding, based on an objective analysis, that the recommended
project is more cost-effective than a project submitted by the
department pursuant to Section 14526.
14529.01.  (a) It is the intent of the Legislature to facilitate
project development work on needed transportation projects to produce
a steady flow of construction projects by adding an advance project
development element to the state transportation improvement program,
beginning with the 2000 State Transportation Improvement Program.
   (b) The advance project development element shall include only
project development activities for projects that are eligible for
inclusion in a state transportation improvement program.
   (c) The fund estimate for each state transportation improvement
program shall designate an amount to be available for the advance
project development element, which shall be not more than 25 percent
of the programmable resources estimated to be available for the first
and second years following the period of the state transportation
improvement program, subject to the formulas in Sections 164, 188 and
188.8 of the Streets and Highways Code.
   (d) The department, transportation planning agencies, and county
transportation commissions may nominate projects to the commission
for inclusion in the advance project development element through
submission of the regional transportation improvement program and the
interregional transportation improvement program.
   (e) The funds programmed in the advance project development
element may be allocated within the period of the state
transportation improvement program without regard to fiscal year.
   (f) Not later than September 1, 2002, the commission shall report
to the Governor and the Legislature on the impact of adding the
advance project development element described in subdivision (a) with
the funding level described in subdivision (c).  The report shall
evaluate whether the element has proven effective in producing a
steady, deliverable stream of projects and whether addition of the
element has resulted in any detrimental effects on the state's
transportation system.
   (g) The commission may develop guidelines to implement this
section.
14529.1.  The commission shall establish guidelines for the
allocation of funds to an entity for a project to verify that the
entity has the resources and capabilities to implement the project in
a timely manner and may establish a process for monitoring the
progress being made and proper use of funds.  The guidelines and
process shall be kept to the minimum needed to protect state funds
and provide for a timely use of those funds.  The commission shall
request that the entity receiving funds accept an audit of funds
allocated to it by the commission if an audit is deemed necessary.
14529.17.  (a) A regional or local entity that is the sponsor of, or
is eligible to receive funding for, a project contained in the state
transportation improvement program may expend its own funds for any
component of a transportation project within its jurisdiction that is
included in an adopted state transportation improvement program and
for which the commission has not made an allocation.
   (b) The amount expended under subdivision (a) shall be reimbursed
by the state, subject to annual appropriation by the Legislature, if
all of the following conditions are met:
   (1) The commission makes an allocation for, and the department
executes an agreement to transfer funds for, the project.
   (2) Expenditures made by the regional or local entity are eligible
for reimbursement in accordance with state and federal laws and
procedures.  In the event expenditures made by the regional or local
entity are determined to be ineligible, the state has no obligation
to reimburse those expenditures.
   (3) The regional or local entity complies with all legal
requirements for the project, including, but not limited to,
authorization by the federal government, if required, Section
14520.3, and the requirements of the California Environmental Quality
Act (Division 13 (commencing with Section 21000) of the Public
Resources Code).
   (c) Upon the execution of an agreement with the department to
transfer reimbursement funds for a project described in subdivision
(a), the commission may delay reimbursement pursuant to this section
only if programming or cash-management issues prevent immediate
repayment.
   (d) This section shall be limited to projects advanced for
expenditure by an eligible local or regional entity within the 12
months preceding the date the project would otherwise be allocated
funding by the commission.
   (e) Unless otherwise agreed in advance by the commission and the
department, the funds appropriated for the purposes of reimbursement
under this section shall be federal funds and state matching funds.
14529.19.  (a) If no deficiencies that require clarification by a
local or regional entity are identified in the preaward audit for a
local or regional project that is included in an adopted state
transportation improvement program, the department and the local or
regional entity shall execute an agreement to transfer funds for the
project within 90 days from the date on which the commission approves
an allocation for the project.
   (b) Notwithstanding Section 7550.5, on July 1, 2000, and annually
thereafter, the department shall compile information and report to
the Legislature on the number of projects for which an agreement to
transfer funds under subdivision (a) was executed and on all projects
for which an agreement was not executed within the period provided
under subdivision (a) and the reasons therefor.  The information
provided by the department shall include a description of any actions
taken by the department during the prior fiscal year to streamline,
expedite, and simplify the department's process for executing the
agreements to transfer funds required under subdivision (a).
14529.23.  The department shall implement systems that allow rapid
access to funds made available under executed agreements to transfer
funds.  The Controller shall develop a system that provides access to
those funds by electronic transfer of funds.  Upon the development
of that system by the Controller, the department shall utilize that
system to comply with Section 14529.19 to the maximum extent
feasible.
14529.3.  At least 20 days prior to the adoption of the state
transportation improvement program, the executive director shall make
available to the commission, the department, and the transportation
planning agencies and county transportation commissions the
recommendations of the staff on the program.
14529.4.  The commission may include capacity-increasing projects in
the adopted state transportation improvement program adopted
pursuant to Section 14529 only if the project studies report has been
completed for that project pursuant to Section 65086.5.
14529.6.  (a) (1) Notwithstanding any other provision of law, the
commission may advance unallocated funds in the State Highway
Account, in the form of loans, to transportation planning agencies,
county transportation commissions, transit districts, city and county
governments, and local transportation authorities for the
advancement of projects eligible under the state transportation
improvement program that are included within an adopted regional
transportation plan.
   (2) No application for a loan may be approved under this section
for an agency that is not the approving authority for the county's
submission to the state transportation improvement program unless the
agency applies jointly with the approving authority.
   (b) When considering loan applications, the commission shall
ensure that all of the following conditions are met:
   (1) Projects shall comply with the environmental impact report
certification requirements of the California Environmental Quality
Act (Division 13 (commencing with Section 21000) of the Public
Resources Code) and associated rules and regulations, and have
prepared an environmental impact report under that act.
   (2) Total project costs shall be greater than ten million dollars
($10,000,000).  In counties with populations of less than 500,000
persons, the commission may waive this requirement if 50 percent of a
county's share for the current county share period made under
Section 188.8 of the Streets and Highways Code is equal to or greater
than the amount of project costs to be loaned.
   (3) A fiscal assessment of the applicant's ability to repay a loan
shall be made by an independent fiscal consultant selected by the
applicant from a pre-qualified list of fiscal consultants approved
jointly by the department and the commission.  The department shall
make a recommendation to the commission based on the analysis
conducted by the independent fiscal consultant regarding each
specific loan.  Costs incurred for this assessment shall be paid by
the applicant.
   (4) The maximum amount of funds that may be loaned to any single
county in any single loan for one or more projects shall be not more
than 50 percent of the most recent regional-choice funding allocation
made pursuant to Section 188.8 of the Streets and Highways Code, in
an amount of not more than one hundred million dollars
($100,000,000).
   (5) Loan repayments shall be made in cash from nonstate sources.
   (6) Loans shall be repaid within four years from the date the loan
is made.
   (7) If a default occurs, 100 percent repayment of the principal
and interest, plus a penalty charge of 5 percent of the outstanding
principal, shall be required in the form of a reduction in the county'
s next allocation of county share funding made under Section 188.8 of
the Streets and Highways Code.  If that reduction is not sufficient
to pay the principal, interest, and penalty due, further reduction
shall be made from subsequent allocations until the outstanding
amount is paid in full.  Additionally, the defaulting county shall be
ineligible for regional choice fund programming made under Section
188.8 of the Streets and Highways Code until the outstanding amount
is paid in full.
   (8) Interest rates on loans shall be set at the  rate paid on
money in the Pooled Money Investment Account during the period of
time that the money is loaned.
   (9) The commission shall approve or disapprove all loan
applications not more than 30 days after the application is
submitted.
   (10) When approved by the commission, the money for the loan shall
be transmitted by the department directly to the applicant not later
than 30 days after approval.
   (11) The total amount of outstanding loans approved under this
program may not exceed five hundred million dollars ($500,000,000) at
any one time.
   (12) All payments on the principal of any loan plus interest or
penalties paid shall be deposited in the State Highway Account.
   (13) The department shall require in writing that projects funded
under this section be under construction not later than six months
after the date the loan funds are transmitted.  If the project is not
under construction on or before the date set by the department under
this paragraph, the department shall require that the loan be paid
back, with interest, not later than 10 days after the department
notifies the recipient that repayment is due.
   (c) The loan program created under this section shall
automatically commence on a first-come, first-served basis whenever
the State Highway Account cash balance exceeds four hundred million
dollars ($400,000,000) and shall be suspended whenever the commission
determines that moneys in the State Highway Account will reach a
cash balance of less than four hundred million dollars
($400,000,000), based on historical experience, the need for state
matching funds, and anticipated contractual needs, except that the
commission may terminate the program at any time it deems termination
to be the most prudent course of action.  For purposes of informing
potential loan applicants of the availability of funds to be loaned,
the commission shall adopt, on January 15 and July 15 of each year,
projections regarding the availability of funds to be loaned and the
period of time during which funds will be available.  The department
shall report to the commission prior to each projection regarding the
cash-flow needs of the state transportation improvement program for
the following six months.
   (d) Prior to loan approval, local agencies shall certify that
other resources are not available to fund the project for which the
loan is requested and that the agency does not intend to create an
indirect arbitrage situation.
   (e) Not later than 120 days from the effective date of the act
that added this section during the 1999-2000 Regular Session, the
commission, in consultation with the department and interested
parties, shall propose guidelines and procedures to implement and
expedite the loan program established under this section.
   (f) Not later than 180 days from the effective date of the act
that added this section during the 1999-2000 Regular Session, the
commission, after a public hearing, shall adopt a uniform loan
agreement package, including guidelines and implementation
procedures, and shall begin operation of the loan program.  The
uniform loan agreement package shall describe loan repayment options,
and all other terms and conditions necessary to protect the public
interest as well as expedite the availability of funds for needed
transportation improvements in the state.  The commission shall make
available to all interested parties the loan agreement associated
with every specific loan made under this section for a period of 30
days prior to approval of those loans by the commission.
   (g) The commission shall recommend to the Governor and the
Legislature any suggested changes in the dollar limits required under
subdivision (c) and any proposed solutions to any other issues
relating to the program's impact on expediting delivery of
transportation projects.
14529.7.  (a) A local jurisdiction may, with the concurrence of the
appropriate transportation planning agency, the commission, and the
department, advance a project included in the state transportation
improvement program to an earlier fiscal year through the use of its
own funds.  A project advanced in this manner shall be deliverable by
the state, or by the local jurisdiction pursuant to agreement, in
the earlier year proposed by the local jurisdiction.
   If a project is advanced pursuant to this subdivision, the state
transportation improvement program shall be revised at the time of
adoption or by amendment to show the project in the earlier fiscal
year.
   With the concurrence of the appropriate transportation planning
agency, the commission, and the department, one or more replacement
state transportation projects shall be identified and included in the
state transportation improvement program for the equivalent
escalated dollar value and at the originally scheduled fiscal year of
the advanced project.  If the project to be advanced is programmed
with federal funds, the replacement project or projects shall not
result in an increase in state matching funds.  A replacement project
or projects shall have no lower priority for funding and delivery
than did the advanced project, as originally scheduled.
   (b) A local agency may enter into an agreement with the
appropriate transportation planning agency, the department, and the
commission to use its own funds to develop, purchase right-of-way
for, and construct a transportation project within its jurisdiction
if the project is one which is included in the adopted state
transportation improvement program, funded by the Passenger Rail Bond
Fund, as set forth in Section 2701.05 of the Streets and Highways
Code, or if approved by the voters, the Passenger Rail Bond Fund
created by, respectively, Section 2702.05 or 2703.05 of the Streets
and Highways Code, the Clean Air and Transportation Improvement Fund
created by Section 99610 of the Public Utilities Code, the State
Highway Account, or the Transportation Planning and Development
Account, or any combination thereof, pursuant to all of the following
requirements:
   (1) Projects constructed pursuant to this subdivision shall
conform to all applicable state and federal design and construction
standards.
   (2) Pursuant to the agreement, and from funds allocated by the
commission for the project in the year it was scheduled in the state
transportation improvement program, subject to annual legislative
appropriation, the department shall reimburse a local agency for the
actual cost of constructing the project, including the acquisition of
right-of-way, with local funds pursuant to this subdivision.
Interest or other debt service costs incurred by local agencies to
finance right-of-way acquisition or construction for the project are
not reimbursable.  Reimbursements made to a local agency pursuant to
this subdivision shall be made from the funding source identified in
the state transportation program.  For purposes of Sections 188 and
188.8 of the Streets and Highways Code, the project shall be
considered as an expenditure in the year it was originally scheduled
in the state transportation improvement program.
   (3) The amount actually reimbursed to the local agency under
paragraph (2) shall be the amount expended by the local agency for
right-of-way and construction, escalated by the actual construction
cost index between the time of contract award and the time of
commission allocation of reimbursement funding, but not to exceed the
escalated amount programmed for expenditure for the project in the
state transportation improvement program in the originally scheduled
year.  If the expenditure of local funds does not result in the
completion of an operable segment of a transportation project,
payback shall be limited only to the actual amount expended by the
local agency for right-of-way or partial construction, with no
escalation factor.
   (4) From funds appropriated to the department for project
development work, the department shall reimburse  the local agency
for the actual cost of developing the project with local funds
pursuant to this subdivision.  Reimbursement of project development
costs shall not exceed 20 percent of estimated construction costs.
In no case shall this reimbursement exceed any lesser amount mutually
agreed to by the department, commission, and local agency.
Reimbursement shall occur at the earliest date the department has
budget authority to do so, but not later than the year in which the
department would have made those expenditures to deliver the project
as originally scheduled in the state transportation improvement
program.
   (5) The commission shall prepare a report on the progress and
impact of the local transportation construction program authorized by
this subdivision and shall include the report as an element of the
annual report to the Legislature required pursuant to Sections 14535
and 14536 of the Government Code.
   (6) Reimbursements made to local agencies pursuant to this
subdivision for expenditures of local voter approved sales and use
tax revenues shall be used for the same purposes for which the
imposition of the sales and use tax is authorized.
   (7) A project which is constructed pursuant to this subdivision is
ineligible for funding from the State-Local Transportation
Partnership Program established by Chapter 16 (commencing with
Section 2600) of Division 3 of the Streets and Highways Code.
   (8) The commission, in consultation with the department and local
transportation officials, shall develop and adopt guidelines to
implement this subdivision.
14529.8.  (a) Funds may be allocated by the commission for each
project element during the fiscal year that is identified in the
state transportation improvement program and the funds shall be
available for expenditure during that fiscal year and the following
two fiscal years.  Any funds not allocated, or allocated but not
encumbered, during the period specified in this section, shall remain
in the  State Highway Account or Public Transportation Account, or
be returned to that particular account, as the case may be.
   (b) Upon a finding that an unforeseen and extraordinary
circumstance beyond the control of the responsible agency has
occurred that justifies an extension, the commission may extend the
deadlines specified in subdivision (a).  The deadline extensions
shall not exceed the period of delay directly attributed to the
extraordinary circumstance and in no event be more than 20 months.
The commission shall not grant more than one extension.
14529.9.  (a) A transportation planning agency, county
transportation commission, or local transportation authority may,
with the concurrence of the commission, request the department to
make a portion of the cost of any project funded by a local entity
that is included in the state transportation improvement program
eligible for reimbursement by the federal government pursuant to
Section 115 of Title 23 of the United States Code.  The
transportation planning agency, county transportation commission, or
local transportation authority shall be responsible for the cost the
department incurs in making the project's cost eligible for federal
reimbursement.
   (b) The transportation planning agency, county transportation
commission, or local transportation authority and the department
shall specify by agreement whether reimbursements for project costs
received from the federal government pursuant to Section 115 of Title
23 of the United States Code shall be returned to the local funding
entity for transportation projects or allocated to additional
projects in the state transportation improvement program.  For
purposes of Sections 188 and 188.8 of the Streets and Highways Code,
reimbursements to local entities shall be considered expenditures
from the State Highway Account in the year the reimbursement occurs.
   (c)  For reimbursements which a local funding entity specifies are
to be allocated to additional projects in the state transportation
improvement program, the transportation planning agency, county
transportation commission, or local transportation authority and the
department, in making their recommendations, and the commission, in
adopting the state transportation improvement program, shall consider
the recommendations of the local funding entity for projects to be
funded from federal reimbursements received for a project the entity
has funded.   The reimbursements may not be used as substitute
funding for projects the commission has included in the adopted state
transportation improvement program and programmed to receive state
and federal funds, other than those provided as reimbursement
pursuant to Section 115 of Title 23 of the United States Code.
   (d) The department, in its recommended funding estimate, shall
identify the amount of project costs that can be made eligible for
reimbursement pursuant to Section 115 of Title 23 of the United
States Code.  The department shall also estimate the amount of
federal funds available for reimbursement in each year of the state
transportation improvement program.
   (e) Each year the department shall determine the actual amount of
federal funds available for reimbursement pursuant to Section 115 of
Title 23 of the United States Code and shall notify the commission
and regional transportation planning agencies.
   (f) In any federal fiscal year in which the department determines
funding is available for reimbursement pursuant to Section 115 of
Title 23 of the United States Code, the department shall seek
reimbursement for locally funded projects in the order in which the
projects were made eligible pursuant to subdivision (a).  If the
funds available are not sufficient to fully reimburse a locally
funded project, the department shall seek reimbursment for the next
project whose amount can be fully reimbursed.  Projects bypassed for
reimbursement in one fiscal year shall retain their priority in the
next fiscal year in which funding is available.
   (g)  The commission shall not make a reimbursement pursuant to
this section unless the department finds that implementation of
advance construction of projects results in the state receiving
federal funds in addition to those which would be received in the
absence of advanced construction agreements under this section.
Reimbursement shall only be made when the commission determines that
all county minimum expenditures pursuant to Section 188.8 of the
Streets and Highways Code can be reasonably met, that the minimum
expenditures cannot be met for reasons not related to advance
construction reimbursements, or when the county in which a
reimbursement would be made is below its minimum expenditure amount
pursuant to that section.  A project bypassed for reimbursement under
this subdivision in one fiscal year shall retain its priority in the
next fiscal year in which funding is available.
   (h) The department shall notify the commission within 30 days of
applying for  reimbursement by the federal government for locally
funded projects.
14529.10.  The department shall recommend, and the commission shall
adopt, guidelines and procedures to implement Sections 14529.8 and
14529.9.
14529.11.  (a) In order to assist in the delivery of high-priority
transportation projects, as determined by the commission, or advance
project development work, the commission shall adopt, not later than
January 30, 2000, guidelines for an expedited process through which
projects may comply with the requirement that a project study report
be prepared in order for a project to be considered for inclusion in
the state transportation improvement program.  The expedited
compliance process may be initiated whenever the commission finds it
to be in the public interest.
   (b) The guidelines required under subdivision (a) shall be
developed in consultation with the department, the county agencies
responsible for submission of projects for inclusion in the state
transportation improvement program, and regional transportation
planning agencies.
   (c) The guidelines developed by the commission shall require that
any request for use of the expedited compliance process be approved
by the county agency responsible for submission of projects for
inclusion in the state transportation improvement program and that
each county approval be reviewed and approved by the department
before being considered by the commission.
14529.12.  (a) The department and the regional planning agencies
shall consult and seek consensus on state highway projects to be
proposed for inclusion in the state transportation improvement
program under Sections 14526 and 14527.
   (b) Agreements between the state and transportation planning
agencies or county transportation commissions relating to program
approvals or federal or state fund transfers and the expenditure of
funds pursuant to those agreements shall comply with all applicable
federal and state laws and regulations and be subject to the
administrative operating procedures set forth in Federal Office of
Management and Budget Circulars A-87, A-102, and A-128, but not to
any other state agency procedures or requirements.
14529.15.  (a) The commission shall make a report to the Legislature
on or before February 1, 1999, and on or before February 1, 2001,
assessing the relative success of the provisions of Senate Bill 45,
as enacted during the 1997-98 Regular Session, in achieving the
Legislature's intent for reform of the state transportation
improvement program, and assessing program delivery, expenditure of
funds at both regional and statewide levels, and program performance.
   (b) The Legislature intends that the 1998 State Transportation
Improvement Program conform with the requirements of Senate Bill 45,
as enacted during the 1997-98 Regular Session, to the maximum degree
feasible, taking into account the limited time allowed between
enactment of that bill and adoption of that program.  The commission
shall comply fully with all procedures and requirements of Senate
Bill 45, as enacted during the 1997-98 Regular Session, in the
preparation and adoption of the subsequent state transportation
improvement programs.
   (c) The 1998 State Transportation Improvement Program shall cover
a period of six years as a transition into a four-year programming
period.
14530.  The commission may deviate, in the adoption of the state
transportation improvement program, from a regional transportation
improvement program based on a finding that there (a) are
inconsistencies between the program and the appropriate guidelines,
(b) are insufficient funds available to implement the program, (c)
are conflicts between the regional transportation improvement
programs, (d) are conflicts between a regional transportation
improvement program and the department's recommendations in its
transportation improvement program, (e) is an overriding state need
for a project to adequately accommodate interregional traffic, or (f)
is no adopted congestion management program for a county in which a
project is proposed.
14530.1.  (a) The department, in cooperation with the commission,
transportation planning agencies, and county transportation
commissions and local governments, shall develop guidelines for the
development of the state transportation improvement program and the
incorporation of projects into the state transportation improvement
program.
   (b) The guidelines shall include, but not be limited to, all of
the following:
   (1) Standards for project deliverability.
   (2) Standards for identifying projects and project components.
   (3) Standards for cost estimating.
   (4) Programming methods for increases and schedule changes.
   (5) Objective criteria for measuring system performance and
cost-effectiveness of candidate projects.
   (c) The guidelines shall be submitted to the commission by
February 1, 1999.  After conducting at least one hearing in northern
California and one in southern California, the commission shall adopt
the guidelines by May 1, 1999.
   (d) The guidelines shall be the complete and full statement of the
policy, standards, and criteria that the commission intends to use
in selecting projects to be included in the state transportation
improvement program.
   (e) The commission may amend the adopted guidelines after
conducting at least one public hearing.  The commission shall make a
reasonable effort to adopt the amended guidelines prior to its
adoption of the fund estimate pursuant to Section 14525.  In no event
shall the adopted guidelines be amended, or otherwise revised,
modified, or altered during the period commencing 30 days after the
adoption of the fund estimate pursuant to Section 14525 and before
the adoption of the state transportation improvement program pursuant
to Section 14529.
14531.  (a) The commission may amend the state transportation
improvement program if the amendment meets both of the following
conditions:
   (1) The request for the amendment is made by the entity that
submitted the project or projects that are in the program and are to
be changed by the amendment.
   (2) The total amount programmed in each county for regional
improvements does not exceed the county's share prior to the
amendment, or the total amount programmed in each county is treated
as an adjustment to the share pursuant to Section 188.11 of the
Streets and Highways Code.
   (b) Public notice of the proposed amendments to the program or the
plan shall be made at least 30 days before the commission takes
formal action on the proposed amendments.  The notice shall include
the text and complete description of the proposed amendments.
14532.  (a) In appropriating the funds allocated under paragraph (C)
of subdivision (c) of Article XIX B of the California Constitution,
the funds shall be apportioned in accordance with the apportionment
formula set forth in paragraph (5) of subdivision (c) of Section 7104
of the Revenue and Taxation Code.
   (b) In appropriating the funds allocated under paragraph (D) of
subdivision (c) of Article XIX B of the California Constitution, the
funds shall be apportioned in accordance with the apportionment
formulas set forth in subparagraphs (A) and (B) of paragraph (4) of
subdivision (c) of Section 7104 of the Revenue and Taxation Code.
   (c) The funds appropriated in accordance with subdivisions (a) and
(b) are subject to subdivisions (d) to (f), inclusive, and
subdivision (h), of Section 7104 of the Revenue and Taxation Code.
   (d) This section shall become operative on the date that Assembly
Constitutional Amendment No. 4 (Res. Ch. 87, Stats. 2001) is approved
by the voters.
14533.  The commission shall allocate funds for transportation
projects consistent with those provisions of the current and prior
Budget Acts that apply to the use of the appropriated funds to be
allocated.  The commission shall not allocate funds for major
projects required to be in a state transportation improvement
program, or in the department's highway systems operation and
protection plan, that are not included in the adopted state
transportation improvement program or in the department's highway
systems operation and protection plan, except as follows:
   (a) The allocation is necessary for a response to an emergency
condition which has placed either people or property in jeopardy or
which has caused or threatens to cause closure of a critical state
transportation facility or access to it.
   (b) Costs will be significantly increased if the project is
delayed pending amendment to the program.
   (c) When bids are opened, it is necessary to obtain an additional
allocation which will make the project a major project and the delay
in amending the program will increase the cost of the project
significantly.
   (d) The allocation is to supplement funding for an advertised
project.
14533.5.  (a) The department shall advance funds for an exclusive
public mass transit guideway project to a public entity eligible for
those funds when all of the following conditions exist:
   (1) The commission has allocated the funds pursuant to Section
14533 of this code and in accordance with Section 99317 of the Public
Utilities Code or Section 199 of the Streets and Highways Code.
   (2) The financing plan and the schedule for the project have been
approved by the department pursuant to Section 14085.
   (3) The department and the public entity have entered into a fund
transfer agreement which specifies the terms of the advance and the
procedure for periodic reimbursement of actual costs incurred for the
project.
   (4) The public entity has demonstrated to the satisfaction of the
department that the advance is required to pay current expenses on
the project for which the allocation is authorized.
   (5) The advance does not exceed 10 percent of the allocation
authorized.
   (6) The advance will not jeopardize the timely discharge of the
other commitments against the account in the State Transportation
Fund from which the advance is made.
   (b) If, upon completion of the project, the advance of funds,
together with interest on the advance of funds earned for the full
period of the advance equivalent to the average rate earned by
investments in the Pooled Money Investment Account during the same
period, exceeds that portion of the actual reimbursable costs for
which the public entity has not been reimbursed, the public entity
shall repay the excess amount to the state for deposit in the account
from which the advance was made.
   (c) If the department encounters any substantial problems in
carrying out this section, it shall promptly prepare and submit to
the Legislature a report which summarizes the procedures adopted to
carry out the section, identifies any problems encountered, and
indicates the direct and indirect costs to the state incurred in
carrying out the section.
14533.6.  As used in this chapter:
   (a) "Minority business enterprise" means a business concern which
is all of the following:
   (1) At least 51 percent owned by one or more minorities, or in the
case of a publicly owned business, at least 51 percent of the stock
of which is owned by one or more minorities.
   (2) Managed by, and the daily business operations are controlled
by, one or more minorities.
   (3) A domestic corporation with its home office located in the
United States.
   (b) "Women business enterprise" means a business concern which is
all of the following:
   (1) At least 51 percent owned by a woman or, in the case of a
publicly owned business, at least 51 percent of the stock of which is
owned by one or more women.
   (2) Managed by, and the daily business operations are controlled
by, one or more women.
   (3) A domestic corporation with its home office located in the
United States.
14534.  Upon the adoption of the state transportation improvement
program, the Secretary of the Business, Transportation and Housing
Agency, the commission, and the department shall act in accordance
with the program in carrying out their respective powers and duties,
except as otherwise provided by law.
   The existing adopted state transportation improvement program
shall remain in effect until a new state transportation improvement
program is adopted by the commission.