2007 California Streets and Highways Code Article 5. Funds For Highway And Public Mass Transit Guideway Purposes

CA Codes (shc:181-208)

181.  (a) The Transportation Revolving Account in the State
Transportation Fund is hereby created.  With the approval of the
Department of Finance, there shall be transferred to, or deposited
in, the account all money appropriated, contributed, or made
available from any source, including sources other than state
appropriations, for expenditure on work within the powers and duties
of the Department of Transportation, including, but not limited to,
services, surveys, reports, major and minor construction,
maintenance, improvements, and equipment as authorized by the state
agency for which such an appropriation is made or, as to funds from
sources other than state appropriations, as may be authorized by
written agreement between the contributor of such funds and the
Department of Transportation when approved by the Department of
Finance.
   (b) Money so transferred or deposited is continuously appropriated
for expenditure by the Department of Transportation for the purposes
for which appropriated, contributed, or made available without
regard to fiscal years and Section 16304 of the Government Code.  The
Department of Transportation may withdraw from the account for use
in work for other public agencies, local, state, or federal, such
sums as may be necessary for such work where the money to be paid by
such other agencies is not deposited in the account in advance of the
work being done.
   (c) The Department of Transportation shall file against the
account all claims covering expenditures incurred, including
expenditures incurred prior to the effective date of the act enacting
this section, in connection with services, surveys, reports, major
and minor construction, maintenance, improvements, and equipment, and
the State Controller shall draw his warrant therefor against the
account.
   (d) The Department of Transportation shall keep a record of all
expenditures chargeable against each specific portion of the account,
and any unused balance in any portion of the account shall, on
approval by the Department of Finance, be withdrawn from the account
and transferred to the credit of the appropriation from which it was
transferred or, as to funds from other than state appropriations, be
paid out or refunded as provided in the agreement relating to the
contribution.
   (e) The Director of Transportation may authorize the refund of
money received or collected by the department in payment of fees,
licenses, permits, tolls, or for rentals, property, or services,
wherein the license, permit, rental, property, or service cannot
lawfully be issued, furnished, or transferred to the person making
the payment, or in cases where the payment, in whole or in part,
represents overpayment or payment in duplicate.
   (f) The provisions of this section shall only be operative during
those fiscal years in which funds in the State Highway Account in the
State Transportation Fund are appropriated by the Budget Act for
such fiscal years.



182.  The "State Highway Fund" is continued in existence as the
State Highway Account in the State Transportation Fund.  Any
reference in any law or regulation to the State Highway Fund shall be
deemed to refer to the State Highway Account in the State
Transportation Fund.
   There shall be transferred to, or deposited in, the State Highway
Account all money appropriated, contributed, or made available from
any source, including sources other than state appropriations, for
expenditure on work within the powers and duties of the department,
including, but not limited to, services, investigations, surveys,
experiments, reports, right-of-way acquisitions, major and minor
construction, maintenance, improvements, and equipment, as authorized
by the state agency for which such an appropriation is made, or as
to funds from sources other than state appropriations, as may be
authorized by written agreement between the contributor of such funds
and the department.
   Money so transferred or deposited is available for expenditure by
the department for the purposes for which appropriated, contributed,
or made available without regard to fiscal years and Section 16304 of
the Government Code.  The department may withdraw from the account
for use in work for other public agencies, local, state, or federal,
such sums as may be necessary for such work where the money to be
paid by such other agencies is not deposited in the account in
advance of the work being done.



182.2.  Notwithstanding any other provision of law, toll bridge
seismic retrofit and replacement projects described in Section 188.5
shall continue to be governed by the provisions of former Article 4.9
(commending with Section 180), as added by Chapter 15 of the
Statutes of 1994 and subsequently amended, as that article read on
January 1, 2005, other than former Section 180.7 relative to repeal.
This section shall become inoperative when all toll bridge seismic
retrofit and replacement projects described in Section 188.5 are
complete.


182.5.  (a) It is the intent of the Legislature that the transition
to the new programs and procedures established in the bill enacting
this section shall be fair and equitable and minimize disruptions in
the delivery of projects.  With specific reference to the transition
from county minimums to county shares for regional improvement, no
project should be counted twice, no project that would be counted
under either the old or new procedures should escape being counted in
the transition, shares should be sufficient to fund projects
programmed in the 1996 State Transportation Improvement Program for
the same period, no incentive or reward should be provided for
delaying a project, and no incentive or reward should be provided for
allocating funds to a project earlier than the year in which the
funds are needed for the project.
   (b) At the end of the fiscal year ending June 30, 1998, the county
minimums and county minimum deficits shall be recalculated under the
law as it existed prior to the enactment of the bill adding this
section.
   (c) Notwithstanding Section 164, there shall be set aside
sufficient funding for every project that is included in the 1996
State Transportation Improvement Program.  This funding shall be set
aside in the fund estimate prior to and in addition to the
distribution of funding between programs pursuant to Section 164.
   (d) The amount of the cumulative county minimum deficit calculated
for any county pursuant to subdivision (b) shall be carried forward
as a county share for the 1998 State Transportation Improvement
Program, prior to and in addition to the computation of county shares
pursuant to subdivision (a) of Section 188.8.
   (e) The commission shall not allocate funds for any project unless
the commission has programmed the state transportation improvement
program in a manner that complies with the requirements of Sections
188, 188.8, and 188.11.
   (f) Notwithstanding subdivision (a), for a county within the
region defined by Section 66502 of the Government Code where funds
were traded in the 1996 State Transportation Improvement Program to
another county in that region, the county share for that county for
the 1998 State Transportation Improvement Program shall be increased
by the amount of the trade in the 1996 State Transportation
Improvement Program, as if the share were a county minimum deficit
under subdivision (d).
   (g) In adopting the 1998 State Transportation Improvement Program,
the commission shall, at a minimum, fund all intercity rail projects
that are included in the adopted 1996 State Transportation
Improvement Program.  The amount of funds programmed for each project
shall not be less than the amount in the 1996 State Transportation
Improvement Program.
   (h) The commission, after consulting with the department and the
regional planning agencies, shall adopt interim guidelines and
procedures relative to fund estimates and project selection in a
manner that the first state transportation improvement program,
pursuant to the provisions of the act adding this section, is adopted
not later than June 1, 1998.



182.6.  (a) Notwithstanding Sections 182 and 182.5, Sections 188,
188.8, and 825 do not apply to the expenditure of an amount of
federal funds equal to the amount of federal funds apportioned to the
state pursuant to that portion of subsection (b)(3) of Section 104,
subsections (a) and (c) of Section 157, and subsection (d) of Section
160 of Title 23 of the United States Code that is allocated within
the state subject to subsection (d)(3) of Section 133 of that code.
These funds shall be known as the regional surface transportation
program funds. The department, the transportation planning agencies,
the county transportation commissions, and the metropolitan planning
organizations may do all things necessary in their jurisdictions to
secure and expend those federal funds in accordance with the intent
of federal law and this chapter.
   (b) The regional surface transportation program funds shall be
apportioned by the department to the metropolitan planning
organizations designated pursuant to Section 134 of Title 23 of the
United States Code and, in areas where none has been designated, to
the transportation planning agency designated pursuant to Section
29532 of the Government Code. The funds shall be apportioned in the
manner and in accordance with the formula set forth in subsection (d)
(3) of Section 133 of Title 23 of the United States Code, except that
the apportionment shall be among all areas of the state. Funds
apportioned under this subdivision shall remain available for three
federal fiscal years, including the federal fiscal year apportioned.

   (c) Where county transportation commissions have been created by
Division 12 (commencing with Section 130000) of the Public Utilities
Code, all regional surface transportation program funds shall be
further apportioned by the metropolitan planning organization to the
county transportation commission on the basis of relative population.

   In the Monterey Bay region, all regional surface transportation
program funds shall be further apportioned, on the basis of relative
population, by the metropolitan planning organization to the regional
transportation planning agencies designated under subdivision (b) of
Section 29532 of the Government Code.
   (d) The applicable metropolitan planning organization, county
transportation commission, or transportation planning agency shall
annually apportion the regional surface transportation program funds
for projects in each county, as follows:
   (1) An amount equal to the amount apportioned under the
federal-aid urban program in federal fiscal year 1990-91 adjusted for
population.  The adjustment for population shall be based on the
population determined in the 1990 federal census except that no
county shall be apportioned less than 110 percent of the
apportionment received in the 1990-91 fiscal year. These funds shall
be apportioned for projects implemented by cities, counties, and
other transportation agencies on a fair and equitable basis based
upon an annually updated five-year average of allocations. Projects
shall be nominated by cities, counties, transit operators, and other
public transportation agencies through a process that directly
involves local government representatives.
   (2) An amount not less than 110 percent of the amount that the
county was apportioned under the federal-aid secondary program in
federal fiscal year 1990-91, for use by that county.
   (e) The department shall notify each metropolitan planning
organization, county transportation commission, and transportation
planning agency receiving an apportionment under this section, as
soon as possible each year, of the amount of obligation authority
estimated to be available for program purposes.
   The metropolitan planning organization and transportation planning
agency, in cooperation with the department, congestion management
agencies, cities, counties, and affected transit operators, shall
select and program projects in conformance with federal law. The
metropolitan planning organization and transportation planning agency
shall submit its transportation improvement program prepared
pursuant to Section 134 of Title 23 of the United States Code to the
department for incorporation into the state transportation
improvement program not later than August 1 of each even-numbered
year beginning in 1994.
   (f) Not later than July 1 of each year, the metropolitan planning
organizations, and the regional transportation planning agencies,
receiving obligational authority under this article shall notify the
department of the projected amount of obligational authority that
each entity intends to use during the remainder of the current
federal fiscal year, including, but not limited to, a list of
projects that will be obligated by the end of the current federal
fiscal year. Any federal obligational authority that will not be used
shall be redistributed by the department to other projects in a
manner that ensures that the state will continue to compete for and
receive increased obligational authority during the federal
redistribution of obligational authority. If the department does not
have sufficient federal apportionments to fully use excess
obligational authority, the metropolitan planning organizations or
regional transportation planning agencies relinquishing obligational
authority shall make sufficient apportionments available to the
department to fund alternate projects, when practical, within the
geographical areas relinquishing the obligational authority.
Notwithstanding this subdivision, the department shall comply with
subsections (d)(3) and (f) of Section 133 of Title 23 of the United
States Code.
   (g) A regional transportation planning agency that is not
designated as, nor represented by, a metropolitan planning
organization with an urbanized area population greater than 200,000
pursuant to the 1990 federal census may exchange its annual
apportionment received pursuant to this section on a
dollar-for-dollar basis for nonfederal State Highway Account funds,
which shall be apportioned in accordance with subdivision (d).
   (h) (1) If a regional transportation planning agency described in
subdivision (g) does not elect to exchange its annual apportionment,
a county located within the boundaries of that regional
transportation planning agency may elect to exchange its annual
apportionment received pursuant to paragraph (2) of subdivision (d)
for nonfederal State Highway Account funds.
   (2) A county not included in a regional transportation planning
agency described in subdivision (g), whose apportionment pursuant to
paragraph (2) of subdivision (d) was less than 1 percent of the total
amount apportioned to all counties in the state, may exchange its
apportionment for nonfederal State Highway Account funds. If the
apportionment to the county was more than 31/2 percent of the total
apportioned to all counties in the state, it may exchange that
portion of its apportionment in excess of 31/2 percent for nonfederal
State Highway Account funds. Exchange funds received by a county
pursuant to this section may be used for any transportation purpose.

   (i) The department shall be responsible for closely monitoring the
use of federal transportation funds, including regional surface
transportation program funds to assure full and timely use. The
department shall prepare a quarterly report for submission to the
commission regarding the progress in use of all federal
transportation funds. The department shall notify the commission and
the appropriate implementation agency whenever there is a failure to
use federal funds within the three-year apportionment period
established under subdivision (b).
   (j) The department shall provide written notice to implementing
agencies when there is one year remaining within the three-year
apportionment period established under subdivision (b) of this
section.
   (k) Within six months of the date of notification required under
subdivision (j), the implementing agency shall provide to the
department a plan to obligate funds that includes, but need not be
limited to, a list of projects and milestones.
   (l) If the implementing agency has not met the milestones
established in the implementation plan required under subdivision
(k), prior to the end of the three-year apportionment period
established under subdivision (b), the commission shall redirect
those funds for use on other transportation projects in the state.
   (m) Notwithstanding subdivisions (g) and (h), regional surface
transportation program funds available under this section exchanged
pursuant to Section 182.8 may be loaned to and expended by the
department.  The department shall repay from the State Highway
Account to the Traffic Congestion Relief Fund all funds received as
federal reimbursements for funds exchanged under Section 182.8 as
they are received from the Federal Highway Administration, except
that those repayments are not required to be made more frequently
than on a quarterly basis.
   (n) Prior to determining the amount for local subvention required
by this section, the department shall first deduct the amount
authorized by the Legislature for increased department oversight of
the federal subvented program.



182.7.  (a) Notwithstanding Sections 182 and 182.5, Sections 188,
188.8, and 825 do not apply to the expenditure of an amount of
federal funds equal to the amount of federal funds apportioned to the
state pursuant to subsection (b)(2) of Section 104 of Title 23 of
the United States Code. These funds shall be known as the congestion
mitigation and air quality program funds and shall be expended in
accordance with Section 149 of Title 23 of the United States Code.
The department, the transportation planning agencies, and the
metropolitan planning organizations may do all things necessary in
their jurisdictions to secure and expend those federal funds in
accordance with the intent of federal law and this chapter.
   (b) The congestion mitigation and air quality program funds,
including any funds to which subsection (c) of Section 110 of Title
23 of the United States Code, as added by subdivision (a) of Section
1310 of Public Law 105-178, applies, shall be apportioned by the
department to the metropolitan planning organizations designated
pursuant to Section 134 of Title 23 of the United States Code and, in
areas where none has been designated, to the transportation planning
agency established by Section 29532 of the Government Code. The
funds shall be apportioned to metropolitan planning organizations and
transportation planning agencies responsible for air quality
conformity determinations in federally designated air quality
nonattainment and maintenance areas within the state in the manner
and in accordance with the formula set forth in subsection (b)(2) of
Section 104 of Title 23 of the United States Code.  Funds apportioned
under this subdivision shall remain available for three federal
fiscal years, including the federal fiscal year apportioned.
Notwithstanding the foregoing, the formula for distributing
apportionments made to metropolitan planning organizations and
transportation planning agencies eligible for funding according to
subsection (b)(2) of Section 104 of Title 23 of the United States
Code shall, for the 2007 and 2008 federal fiscal years, provide
apportionments for the Monterey Bay and Santa Barbara regions such
that each shall receive 50 percent of its 2005 apportionment in
federal fiscal year 2007 and 25 percent of its 2005 apportionment in
federal fiscal year 2008.
   (c) Notwithstanding subdivision (b), where county transportation
commissions have been created by Division 12 (commencing with Section
130000) of the Public Utilities Code, all congestion mitigation and
air quality program funds shall be further apportioned by the
metropolitan planning organization to the county transportation
commission on the basis of relative population within the federally
designated air quality nonattainment and maintenance areas after
first apportioning to the nonattainment and maintenance areas in the
manner and in accordance with the formula set forth in subsection (b)
(2) of Section 104 of Title 23 of the United States Code.
   In the Monterey Bay region, all congestion mitigation and air
quality improvement program funds shall be further apportioned, on
the basis of relative population, by the metropolitan planning
organization to the regional transportation planning agencies
designated under subdivision (b) of Section 29532 of the Government
Code.
   (d) The department shall notify each metropolitan planning
organization, transportation planning agency, and county
transportation commission receiving an apportionment under this
section, as soon as possible each year, of the amount of obligational
authority estimated to be available for expenditure from the federal
apportionment. The metropolitan planning organizations,
transportation planning agencies, and county transportation
commissions, in cooperation with the department, congestion
management agencies, cities and counties, and affected transit
operators, shall select and program projects in conformance with
federal law. Each metropolitan planning organization and
transportation planning agency shall, not later than August 1 of each
even-numbered year beginning in 1994, submit its transportation
improvement program prepared pursuant to Section 134 of Title 23 of
the United States Code to the department for incorporation into the
state transportation improvement program.
   (e) Not later than July 1 of each year, the metropolitan planning
organizations and the regional transportation planning agencies
receiving obligational authority under this section, shall notify the
department of the projected amount of obligational authority that
each entity intends to use during the remainder of the current
federal fiscal year, including, but not limited to, a list of
projects that will use the obligational authority. Any federal
obligational authority that will not be used shall be redistributed
by the department to other projects in a manner that ensures that the
state will continue to compete for and receive increased
obligational authority during the federal redistribution of
obligational authority. If the department does not have sufficient
federal apportionments to fully use excess obligational authority,
the metropolitan planning organization or transportation planning
agency relinquishing obligational authority shall make sufficient
apportionments available to the department to fund alternate
projects, when practical, within the geographical areas relinquishing
the obligational authority.  Notwithstanding this subdivision, the
department shall comply with subsection (f) of Section 133 of Title
23 of the United States Code.
   (f) The department shall be responsible for closely monitoring the
use of federal transportation funds, including congestion management
and air quality funds to assure full and timely use. The department
shall prepare a quarterly report for submission to the commission
regarding the progress in use of all federal transportation funds.
The department shall notify the commission and the appropriate
implementation agency whenever there is a failure to use federal
funds within the three-year apportionment period established under
subdivision (b).
   (g) The department shall provide written notice to implementing
agencies when there is one year remaining within the three-year
apportionment period established under subdivision (b).
   (h) Within six months of the date of notification required under
subdivision (g), the implementing agency shall provide to the
department a plan to obligate funds that includes, but need not be
limited to, a list of projects and milestones.
   (i) If the implementing agency has not met the milestones
established in the implementation plan required under subdivision
(h), prior to the end of the three-year apportionment period
established under subdivision (b), the commission shall redirect
those funds for use on other transportation projects in the state.
   (j) Congestion mitigation and air quality program funds available
under this section exchanged pursuant to Section 182.8 may be loaned
to and expended by the department. The department shall repay from
the State Highway Account to the Traffic Congestion Relief Fund all
funds received as federal reimbursements for funds exchanged under
Section 182.8 as they are received from the Federal Highway
Administration, except that those repayments are not required to be
made more frequently than on a quarterly basis.
   (k) Prior to determining the amount for local subvention required
by this section, the department shall first deduct the amount
authorized by the Legislature for increased department oversight of
the federal subvented program.



182.8.  (a) It is the intent of the Legislature that this program
help increase flexibility in the use of state and federal funding to
complete transportation improvements.  The ability to exchange
certain federal funds for state funds may enhance that flexibility.
However, it is the intent of the Legislature that the commission make
these exchanges only if the exchanges do not compromise other state
funded projects or activities.
   (b) The commission shall propose guidelines and procedures to
implement this section, hold a public hearing on the guidelines, and
adopt the guidelines on or before February 1, 2001.  The commission
shall begin the exchange program on or before February 1, 2001, if it
determines that funding is available for that purpose.  The
commission may amend its guidelines after holding a public hearing,
but may not amend the guidelines between the time it notifies
regional transportation planning agencies of the amount of state
funds available for exchange and its approval of projects for
exchange in any given year.
   (c) On or before January 5 of each year, the department shall
report to the commission the amounts apportioned as federal local
assistance in the regional surface transportation and congestion
mitigation and air quality programs for the year, the Federal
Obligation Authority for the year, and the amount of federal funds it
expects to be able to obligate for work on projects in all programs
on or before September 30 of that year, and the commission, in
cooperation with the department, shall determine the amount of state
funds from the Traffic Congestion Relief Fund that can be made
available for exchange under this section.  If the release of federal
apportionments and obligational authority is delayed beyond November
1 in any year, all the dates specified in this section shall be
extended by an equivalent time, however, all federal funds exchanged
shall be obligated on or before September 30 of the current federal
fiscal year.
   (d) The commission may exchange funds under this section if it
determines all of the following:
   (1) Adequate state funds are available to accomplish the exchange
without putting at risk other transportation activities or projects
needing state funds.
   (2) Any exchange will be consistent with full implementation of
the Traffic Congestion Relief Act of 2000.
   (3) Federal funds received in exchange can be readily and
effectively used on other projects or activities by the state during
the federal fiscal year.
   (e) After making the determinations set forth in subdivision (d)
the commission may offer to exchange state funds from the Traffic
Congestion Relief Fund for federal local assistance funds, subject to
the limits imposed under this section.  For the purpose of this
section, "federal local assistance" funds means regional surface
transportation program or congestion mitigation and air quality
program apportionments received that federal fiscal year and
apportioned as local assistance pursuant to Sections 182.6 and 182.7.

   (f) Not later than February 1 of each year, the commission shall
notify the regional transportation planning agencies of the amount of
state funds available for exchange for federal local assistance
funds for that year.  The maximum amount of state funds to be
exchanged may not exceed 50 percent of the total amount of federal
regional surface transportation program and congestion mitigation and
air quality program funds apportioned for the current fiscal year as
local assistance pursuant to subdivision (b) of Section 182.6 and
subdivision (b) of Section 182.7, exclusive of state funds that may
be exchanged pursuant to subdivision (g) of Section 182.6, paragraphs
(1) and (2) of subdivision (h) of Section 182.6, or Section 182.7.
Federal funds exchanged under this program shall be available for
projects identified by the commission as ready to obligate during
determination of the amount available for exchange.  The amount of
exchange may not exceed the department's ability to obligate all
federal funds during the current federal fiscal year.  The commission
may not exchange state funds for regional surface transportation
program funds required to be spent for transportation enhancements.
This section does not affect the amount of exchange under subdivision
(g) of Sections 182.6, or paragraphs (1) and (2) of subdivision (h)
of Section 182.6.
   (g) Regional transportation planning agencies may submit
applications for exchange of funds to the commission not later than
March 15 of each year.  Applications shall identify the proposed use
for the exchange funds, including project descriptions, cost
estimates, scopes of work, schedules for construction, schedules for
expenditures, and any other information required by the commission.
The commission may require a region to identify priorities among
applications it submits.
   (h) If the commission receives applications for more exchange
funds than the amount of state funds available, the commission shall
select projects for exchange up to the amount of state funds
available.  The commission shall explain the criteria it uses to
select projects, which shall include, but are not limited to, all of
the following:
   (1) Removal of all federal funds from projects.
   (2) Assessment of projects that would benefit most from removal of
federal funding because of size, type, location, agency capability,
features, or federal requirements.
   (3) Approximate relative equity within the program among regions
in receiving state exchange funds over a multiyear period.
   (i) The commission may exchange state funds for federal local
assistance funds with agencies requesting exchanges.  Agencies
wishing to exchange their federal funds shall provide apportionments
and obligation authority at the same rate the Federal Highway
Administration distributes obligation authority.  Agencies exchanging
federal funds shall receive funds equal to 90 percent of the
obligation authority exchanged.  The commission shall approve
exchanges of funds not later than its second regularly scheduled
meeting following March 15 each year.
   (j) The commission shall determine an exchange payment schedule
based on expenditure plans.  The commission may suspend exchange
payment schedules if it determines projects are not proceeding.
   (k) For financial display and reporting purposes, obligational
authority received pursuant to this section shall be reported as a
revenue accrual in the Traffic Congestion Relief Fund in the year in
which the exchange is approved under subdivision (i).  Funds approved
for exchange shall be accrued as expenditures in the year in which
the exchange is approved.  Notwithstanding Section 16362 of the
Government Code, the department shall repay from the State Highway
Account to the Traffic Congestion Relief Fund all funds received as
federal reimbursements for funds exchanged under this section as they
are received from the Federal Highway Administration, except that
those repayments are not required to be made more frequently than on
a quarterly basis.
   (l) State funds provided through an exchange under this section
shall be encumbered within one year and expended within three years.

   (m) Upon adoption of its implementing guidelines, the commission
may consider requests for exchanges under this section.
   (n) Regional and local agencies shall use state exchange funds
only for projects or purposes for which the federal local assistance
funds being exchanged were originally intended, and may not supplant
local funds on projects in order that those local funds can
subsequently be used for nontransportation purposes.  The commission
may require agencies to certify that they are meeting this
requirement.  Agencies not meeting this maintenance of effort
requirement may not be allowed to participate in the next exchange
cycle.
   (o) The commission shall include a summary of exchanges made
pursuant to this section in its annual report to the Governor and
Legislature pursuant to Section 14556.36, including an assessment of
progress in implementing projects funded by exchanges, and discussion
of issues and recommendations related to implementation of the
exchange program.
   (p) Not later than the effective date of the reauthorization of
the federal surface transportation act, the commission shall submit a
report to the Governor and the Legislature recommending any changes
in the exchange program necessitated by that reauthorization.



182.9.  There shall be appropriated from nonfederal funds in the
State Highway Account, and the commission shall allocate to each
county, an amount, not to exceed one hundred thousand dollars
(0,000) each fiscal year, equal to 50 percent of the amount
allocated to the county pursuant to paragraph (2) of subdivision (d)
of Section 182.6.  The amount shall not be reduced by any exchange of
funds made pursuant to subdivision (g) of Section 182.   Funds
allocated pursuant to this section shall be used to match the federal
funds allocated pursuant to paragraph (2) of subdivision (d) of
Section 182.6 or, if excess, may be used for any transportation
purpose.



183.  (a) All money in the State Highway Account in the State
Transportation Fund derived from federal sources or from
appropriations to other state agencies, or deposited in the account
by local agencies or by others, is continuously appropriated to, and
shall be available for expenditure by, the department for the
purposes for which the money was made available.
   Unless otherwise expressly provided for by law, none of the
balance of the money in the State Highway Account shall be expended
until it has been specifically appropriated by the Legislature or
made available pursuant to Section 13322 of the Government Code.
   The Budget Act appropriations shall be made on a program basis
only and shall not identify the specific capital outlay projects to
be funded. The commission shall be responsible for allocating the
funds to specific projects within the budget program categories,
except that all funds described in Chapter 5 (commencing with Section
2200) of Division 3 shall be allocated on a program basis to the
department for allocation pursuant to that chapter.
   (b) Notwithstanding subdivision (a), commencing with the 1985-86
Budget, the department shall submit with its budget requests a
detailed description of the acquisition, improvement, and
construction of office building projects to the Legislature for
review. The total amount appropriated for those projects shall be
identified as a separate line item in the Budget Act. Funds
appropriated for those projects shall be allocated by the commission
only for projects which have been approved by the Legislature. Minor
projects are to be defined consistent with Section 167. The
commission may substitute for approved minor projects, if the total
sum of minor projects is within the amount approved by the
Legislature.
   (c) Notwithstanding any other provision of law, the Department of
Finance may adjust the budgeting, accounting, and reporting system
for the State Highway Account so that unliquidated encumbrances are
not reflected in the fund balance or financial statements.



183.1.  (a) Notwithstanding subdivision (a) of Section 182 or any
other provision of law, money deposited into the account that is not
subject to Article XIX of the California Constitution, including, but
not limited to, money that is derived from the sale of documents,
charges for miscellaneous services to the public, condemnation
deposits fund investments, rental of state property, or any other
miscellaneous uses of property or money, may be used for any
transportation purpose authorized by statute, upon appropriation by
the Legislature or, after transfer to another fund, upon
appropriation by the Legislature from that fund.
   (b) Not later than November 1 of each year, based on prior year
financial statements, the State Controller shall transfer the funds
identified in subdivision (a) for the prior fiscal year to the Public
Transportation Account in the State Transportation Fund.




183.3.  (a) Upon the order of the Director of Finance, the
Controller shall transfer the sum of one hundred seventy-three
million dollars (3,000,000) from the State Highway Account in the
State Transportation Fund to the General Fund.  This transfer of
money constitutes a loan under paragraph (2) of subdivision (b) of
Section 6 of Article XIX of the California Constitution.
   (b) The General Fund shall pay interest to the State Highway
Account on the loan authorized by subdivision (a) at the rate earned
by the Surplus Money Investment Fund.  The interest shall be
calculated annually and the loan shall be repaid no later than June
30, 2005.



183.4.  (a) The department may advance funds in the State Highway
Account in the State Transportation Fund to a local agency for all or
a portion of the cost of a project approved for bond funding
pursuant to Part 11.5 (commencing with Section 99600) of Division 10
of the Public Utilities Code.  The director shall first make a
finding that there are adequate funds for the advancement without
delaying or adversely affecting any other project.  The total amount
advanced shall not exceed the amount of the unsold bonds which the
committee created by Section 99692 of the Public Utilities Code has,
by resolution, authorized to be sold.
   (b) All advances shall be subject to the terms and conditions of
an agreement between the department and a local agency.  The
agreement shall contain provisions for reimbursement of the State
Highway Account from the proceeds of the next bond sale for funds
advanced pursuant to this section.  Any amounts advanced pursuant to
this section shall be repaid with interest at the rate being earned
by the Pooled Money Investment Account at the time of the advance.
Interest payments shall be made from funds of the local agency other
than from the proceeds of bonds authorized by Part 11.5 (commencing
with Section 99600) of Division 10 of the Public Utilities Code.



183.5.  No funds from the State Highway Account shall be budgeted,
allocated, or expended for any project which calls for any change in
passenger train stations or loading platforms used by the National
Railroad Passenger Corporation unless the change has been submitted
to the National Railroad Passenger Corporation for review and comment
which may include a recommendation for a modification in the change.
  If the agency submitting the change elects not to accept the
recommendation of the National Railroad Passenger Corporation, it
shall submit the matter to the  director who shall determine whether
the disputed recommendation for a modification in the change shall be
followed by the agency.


184.  The department shall set up and keep the accounts necessary to
show all expenditures from the State Highway Account for the several
purposes authorized or required by this article, and shall make and
keep on file in the office of the department an annual statement
showing all expenditures from the account.


185.  All money withdrawn from the State Highway Account in the
State Transportation Fund shall be withdrawn in the manner provided
by law upon demands made by the department.
   The department may establish a revolving fund to be administered
pursuant to Section 16400 of the Government Code and to serve as a
revolving fund from which relocation assistance payments may be made
pursuant to Chapter 16 (commencing with Section 7260) of Division 7
of Title 1 of the Government Code.



185.5.  The director shall pay from the State Highway Account in the
State Transportation Fund that portion of the administrative
expenses of the department that he determines, in consultation with
the commisson, to have resulted from the functions of the department
for purposes specified in Section 2101.



186.3.  Funds apportioned pursuant to Section 2106 may be expended
for highway-oriented transportation studies requested by a state or
federal agency.  Any expenditure of funds apportioned pursuant to
Section 2106 or 2107 by a county or city for the acquisition of
rights-of-way or construction upon a state highway, or upon a county
road or city street not under the jurisdiction of the county or city
that complements the system of roads or streets of the county or
city, shall be deemed an expenditure upon the system of roads or
streets of the county or city, as the case may be, making such
expenditure.


186.5.  Whenever local entities are unable to agree upon the number
and width of traffic lanes for a street or road proposed to be
constructed by any such entity where such specifications will affect
the uniform flow of traffic on a road or street from one such local
entity to another, the matter may be submitted to the department.
The department shall thereupon endeavor to establish such
specifications for such street or road proposed to be constructed,
and, if established, such specifications shall be binding upon the
local entity constructing such road or street.



186.6.  There is hereby appropriated to the commission from the
Motor Vehicle Fuel Fund an amount not to exceed fifty thousand
dollars (,000) annually for work done by the department in
assisting the Controller in carrying out duties imposed upon his
office in reviewing, approving or modifying the expenditure of
highway user funds by local agencies.



187.  For the purpose of allocating State funds available for
highway purposes the counties of the State are placed in these two
groups:
   Group No. 1.  All those counties not included in Group No. 2.
   Group No. 2.  The counties of San Luis Obispo, Kern, Mono, Tulare,
Inyo, Santa Barbara, Ventura, Los Angeles, San Bernardino, Orange,
Riverside, San Diego and Imperial.



188.  (a) All federal and state funds to be allocated by the
commission, or expended by the department, for transportation
improvements under Section 164, except for purposes of subdivisions
(b) and (c) of that section, shall be programmed during the period
commencing on July 1, 1997, and ending on June 30, 2004, and for each
four-year period thereafter, 40 percent in County Group No.  1 and
60 percent in County Group No. 2.
   (b) This section shall be known and may be cited as the
Barnes-Mills-Walsh formula.



188.1.  None of the provisions of this article or of Section 825
shall apply to the expenditure of either state or federal funds
necessary to replace or reconstruct any state highway damaged or
destroyed as the result of disaster over a wide area, such as by
enemy action, sabotage, floods, hurricanes, tidal waves, earthquakes,
severe storms, or other catastrophes where, at the time of the
catastrophe, the Governor declared an emergency, and where such
expenditure is authorized pursuant to this section by the commission
by resolution, and such resolution is approved by the Governor.  In
the event the funds expended for replacing or reconstructing the
damaged or destroyed state highway exceeds the cost of providing a
facility of equal utility with that damaged or destroyed as
determined by the director, he shall report the amount of such excess
to the commission, and any expenditure in excess of the cost of
providing a facility of equal utility  shall be subject to all the
provisions of this article and Section 825.



188.3.  The cost of maintenance of all toll bridges under the
jurisdiction of the commission shall be paid out of money in the
State Highway Account.


188.4.  (a) Maintenance expenditures on all toll facilities owned by
the state shall, for accounting purposes, be classified as Category
A or Category B expenditures. Notwithstanding any other provision of
law, the cost of maintenance of toll facilities in the geographic
jurisdiction of the Metropolitan Transportation Commission shall be
paid in accordance with the following:
   (1) Category A maintenance shall be paid from the State Highway
Account and shall include all normal highway maintenance which would
be performed by the state according to state procedures as if the
facility was a toll-free state facility.
   (2) Category B maintenance shall be paid from toll revenues and
shall include all maintenance and reconstruction work of those
facilities such as toll facility administration buildings and toll
booths which are constructed primarily for the purpose of collecting
tolls.
   (b) In no event shall the Category A maintenance expenditures for
the toll bridges in the geographic jurisdiction of the Metropolitan
Transportation Commission be funded at a lower percentage than was
established in accordance with procedures for funding Category A
maintenance of the toll bridges during the 1986-87 fiscal year.
   (c) Notwithstanding subdivisions (a) and (b), for each toll bridge
specified in Section 30910, maintenance expenditures shall be funded
from toll revenues. However, for a toll bridge that is part of the
program specified in Section 188.5, maintenance expenditures shall be
funded from toll revenues commencing with the completion of the
seismic retrofit or replacement work on that bridge as described in
Section 188.5. For the purposes of this subdivision, until the
obligations of the California Infrastructure and Economic Development
Bank secured by the seismic retrofit surcharge imposed pursuant to
subdivision (a) of Section 31010 are no longer outstanding, as that
term is defined in the constituent instruments defining the rights of
the holders of those obligations, the term "toll revenues" shall not
include the seismic retrofit surcharge imposed pursuant to
subdivision (a) of Section 31010, and the seismic retrofit surcharge
imposed pursuant to subdivision (a) of Section 31010 shall remain
pledged to the payment of obligations incurred by the California
Infrastructure and Economic Development Bank under Chapter 4.6
(commencing with Section 31070). Maintenance expenses that are
required to be funded with toll revenues and that would otherwise
constitute Category A maintenance expenditures shall be funded from
toll revenues remaining after provision is made for payment of all
obligations secured by the lien on toll revenues created by
subdivision (b) of Section 30960.



188.5.  (a) The Legislature finds and declares all of the following:

   (1) The department has determined that in order to provide maximum
safety for the traveling public and to ensure continuous and
unimpeded operation of the state's transportation network, six
state-owned toll bridges are in need of a seismic safety retrofit,
and one state-owned toll bridge is in need of a partial retrofit and
a partial replacement.
   (2) The bridges identified by the department as needing seismic
retrofit are the Benicia-Martinez Bridge, the Carquinez Bridge, the
Richmond-San Rafael Bridge, the San Mateo-Hayward Bridge, the San
Pedro-Terminal Island Bridge (also known as the Vincent Thomas
Bridge), the San Diego-Coronado Bridge, and the west span of the San
Francisco-Oakland Bay Bridge. The department has also identified the
east span of the San Francisco-Oakland Bay Bridge as needing to be
replaced. That replacement span will be safer, stronger, longer
lasting, and more cost efficient to maintain than completing a
seismic retrofit for the current east span.
   (3) The south span of the Carquinez Bridge is to be replaced
pursuant to Regional Measure 1, as described in Section 30917.
   (4) The cost estimate to retrofit the state-owned toll bridges and
to replace the east span of the San Francisco-Oakland Bay Bridge is
four billion six hundred thirty-seven million dollars
(,637,000,000), as follows:
   (A) The Benicia-Martinez Bridge retrofit is one hundred ninety
million dollars (0,000,000).
   (B) The north span of the Carquinez Bridge retrofit is one hundred
twenty-five million dollars (5,000,000).
   (C) The Richmond-San Rafael Bridge retrofit is six hundred
sixty-five million dollars (5,000,000).
   (D) The San Mateo-Hayward Bridge retrofit is one hundred ninety
million dollars (0,000,000).
   (E) The San Pedro-Terminal Island Bridge retrofit is sixty-two
million dollars (,000,000).
   (F) The San Diego-Coronado Bridge retrofit is one hundred five
million dollars (5,000,000).
   (G) The west span of the San Francisco-Oakland Bay Bridge
retrofit, as a lifeline bridge, is seven hundred million dollars
(0,000,000).
   (H) Replacement of the east span of the San Francisco-Oakland Bay
Bridge is two billion six hundred million dollars (,600,000,000).
   (b) It is the intent of the Legislature that the following amounts
from the following funds shall be allocated until expended, for the
seismic retrofit or replacement of state-owned toll bridges:
   (1) Six hundred fifty million dollars (0,000,000) from the 1996
Seismic Retrofit Account in the Seismic Retrofit Bond Fund of 1996
for the seven state-owned toll bridges identified by the department
as requiring seismic safety retrofit or replacement.
   (2) One hundred forty million dollars (0,000,000) in surplus
revenues generated under the Seismic Retrofit Bond Act of 1996 that
are in excess of the amount actually necessary to complete Phase Two
of the state's seismic retrofit program. These excess funds shall be
reallocated to assist in financing seismic retrofit of the
state-owned toll bridges.
   (3) Fifteen million dollars (,000,000) from the Vincent Thomas
Toll Bridge Revenue Account.
   (4) The funds necessary to meet both of the following:
   (A) A principal obligation of two billion two hundred eighty-two
million dollars (,282,000,000) from the seismic retrofit surcharge,
including any interest therefrom, imposed pursuant to Section 31010,
subject to the limitation set forth in subdivision (c) and
subdivision (b) of Section 31010.
   (B) All costs of financing, including capitalized interest,
reserves, costs of issuance, costs of credit enhancements and any
other financial products necessary or desirable in connection
therewith, and any other costs related to financing.
   (5) Thirty-three million dollars (,000,000) from the San
Diego-Coronado Toll Bridge Revenue Fund.
   (6) Not less than seven hundred forty-five million dollars
(5,000,000) from the State Highway Account to be used toward the
eight hundred seventy-five million dollars (5,000,000) state
contribution, to be achieved as follows:
   (A) (i) Two hundred million dollars (0,000,000) to be
appropriated for the state-local transportation partnership program
described in paragraph (7) of subdivision (d) of Section 164, prior
to its repeal by Chapter 622 of the Statutes of 1997, for the 1998-99
fiscal year.
   (ii) The remaining funds intended for that program and any program
savings to be made available for toll bridge seismic retrofit.
   (B) A reduction of not more than seventy-five million dollars
(,000,000) in the funding level specified in paragraph (4) of
subdivision (d) of Section 164, prior to its repeal by Chapter 622 of
the Statutes of 1997, for traffic system management.
   (C) Three hundred million dollars (0,000,000) in accumulated
savings by the department achieved from better efficiency and lower
costs.
   (7) Not more than one hundred thirty million dollars
(0,000,000) from the Transit Capital Improvement Program funded by
the Public Transportation Account in the State Transportation Fund
to be used toward the eight hundred seventy-five million dollars
(5,000,000) state contribution. If the contribution in
subparagraph (A) of paragraph (6) exceeds three hundred seventy
million dollars (0,000,000), it is the intent that the amount from
the Transit Capital Improvement Program shall be reduced by an
amount that is equal to that excess.
   (8) (A) The funds necessary to meet principal obligations of not
less than six hundred forty-two million dollars (2,000,000) from
the state's share of the federal Highway Bridge Replacement and
Rehabilitation (HBRR) Program.
   (B) If the project costs exceed four billion six hundred
thirty-seven million dollars (,637,000,000), the department may
program not more than four hundred forty-eight million dollars
(8,000,000) in project savings or other available resources from
the Interregional Transportation Improvement Program, the State
Highway Operation and Protection Program, or federal bridge funds for
that purpose.
   (C) None of the funds identified in subparagraph (B) may be
expended for any purpose other than the conditions and design
features described in paragraph (9).
   (9) The estimated cost of replacing the San Francisco-Oakland Bay
Bridge listed in subparagraph (H) of paragraph (4) of subdivision (a)
is based on the following conditions:
   (A) The new bridge shall be located north adjacent to the existing
bridge and shall be the Replacement Alternative N-6 (preferred)
Suspension Structure Variation, as specified in the Final
Environmental Impact Statement, dated May 1, 2001, submitted by the
department to the Federal Highway Administration.
   (B) The main span of the bridge shall be in the form of a single
tower cable suspension design and shall be the Replacement
Alternative N-6 (preferred) Suspension Structure Variation, as
specified in the Final Environmental Impact Statement, dated May 1,
2001, submitted by the department to the Federal Highway
Administration.
   (C) The roadway in each direction shall consist of five lanes,
each lane will be 12 feet wide, and there shall be 10-foot shoulders
as an emergency lane for public safety purposes on each side of the
main-traveled way.
   (c) If the actual cost of retrofit or replacement, or both
retrofit and replacement, of toll bridges is less than the cost
estimate of four billion six hundred thirty-seven million dollars
(,637,000,000), there shall be a reduction in the amount provided
in paragraph (4) of subdivision (b) equal to the proportion of total
funds committed to complete the projects funded from funds generated
from paragraph (4) of subdivision (b) as compared to the total funds
from paragraphs (6), (7), and (8) of subdivision (b), and there shall
be a proportional reduction in the amount specified in paragraph (8)
of subdivision (b).
   (d) If the department determines that the actual costs exceed the
amounts identified in subparagraph (B) of paragraph (8) of
subdivision (b), the department shall report to the Legislature
within 90 days from the date of that determination as to the
difference and the reason for the increase in costs.
   (e) Notwithstanding any other provision of law, the commission
shall adopt fund estimates consistent with subdivision (b) and
Section 188.6 and provide flexibility so that state funds can be made
available to match federal funds made available to regional
transportation planning agencies.
   (f) For the purposes of this section, "principal obligations" are
the amount of funds generated, either in cash, obligation authority,
or the proceeds of a bond or other indebtedness.
   (g) (1) Commencing on January 1, 2004, and quarterly thereafter
until completion of all applicable projects, the department shall
provide quarterly seismic reports to the transportation committees of
both houses of the Legislature and to the commission for other
seismic retrofit programs.
   (2) The reports shall include all of the following:
   (A) A progress report for each program.
   (B) The program baseline budget for support and capital outlay
construction costs.
   (C) The current or projected program budget for support and
capital outlay construction costs.
   (D) Expenditures to date for support and capital outlay
construction costs.
   (E) A comparison of the current or projected schedule and the
baseline schedule.
   (F) A summary of milestones achieved during the quarterly period
and any issues identified and actions taken to address those issues.



188.51.  (a) If the department utilizes its authority under Chapter
4 (commencing with Section 14550) of Part 5.3 of Division 3 of the
Government Code to issue federal highway grant anticipation notes
(GARVEE Bonds) from the state share of federal obligation authority
to fund the projects identified in subdivision (a) of Section 188.5,
Section 14553.6 of the Government Code shall not apply.
   (b) State expenditures for the purposes of subdivision (a) shall
not exceed 5 percent of the annual amount of federal obligation
authority received by the state for a period determined by the
department.


188.53.  Notwithstanding any other provision of law, it is the
intent of the Legislature that the programming authorization
described in subparagraph (B) of paragraph (8) of subdivision (b) of
Section 188.5 is available for any and all state-owned toll bridge
retrofit projects identified in paragraph (4) of subdivision (a) of
Section 188.5.



188.6.  (a) (1) The Legislature finds and declares that on August
16, 2004, the department reported to the Legislature that the funds
identified in Section 188.5 are insufficient to complete the state
toll bridge seismic retrofit program, including the replacement of
the east span of the San Francisco-Oakland Bay Bridge, due to cost
overruns for the program now estimated at three billion six hundred
million dollars (,600,000,000).
   (2) By enacting this section, it is the intent of the Legislature
to identify additional funds from various sources, as described in
subdivision (b), in order to fund this shortfall and so that the toll
bridge seismic retrofit and replacement program, as described in
Section 188.5, as that section read on January 1, 2005, may proceed
to completion without further costly delay.
   (b) The following amounts from the following funds shall be
allocated until expended in order to eliminate the shortfall
identified in subdivision (a) and to complete the seismic retrofit or
replacement of state-owned toll bridges as expeditiously as
possible:
   (1) Not less than two billion one hundred fifty million dollars
(,150,000,000) from the Bay Area Toll Account, derived from an
additional one dollar () surcharge on the state-owned toll bridges
within the geographic jurisdiction of the Metropolitan Transportation
Commission to be effective no sooner than January 1, 2007.
   (2) Not less than eight hundred twenty million dollars
(0,000,000) for the seismic retrofit or replacement of the
state-owned toll bridges in the geographic jurisdiction of the
Metropolitan Transportation Commission made available through the
consolidation of all toll revenues under the management of the Bay
Area Toll Authority and from the authorization for the authority to
refinance debt secured by toll revenues.
   (3) The amount of three hundred million dollars (0,000,000) to
fund the cost of demolition of the existing east span of the San
Francisco-Oakland Bay Bridge from funding sources supporting the
state highway operations and protection program, from available state
resources from transportation project savings, or from the federal
Highway Bridge Replacement and Rehabilitation Program.
   (4) The amount of three hundred thirty million dollars
(0,000,000) from the following accounts:
   (A) One hundred thirty million dollars (0,000,000) from the
State Highway Account from accumulated savings by the department
achieved from better efficiency, operational savings, and lower
costs.
   (B) One hundred twenty-five million dollars (5,000,000) of any
excess funds that would otherwise have been transferred in the
2006-07 fiscal year pursuant to subparagraph (F) of paragraph (1) of
subdivision (a) of Section 7102 of the Revenue and Taxation Code, as
amended by Chapter 76 of the Statutes of 2005, shall instead be
transferred to the Bay Area Toll Account and are hereby appropriated
to the department for the purposes of this section. If sufficient
funds are not available from this source for this purpose during the
2006-07 fiscal year, the funding required under this paragraph shall
be made available from additional accumulated savings by the
department achieved from better efficiency, operational savings, or
lower costs pursuant to subparagraph (A), or from the federal Highway
Bridge Replacement and Rehabilitation Program or the State Highway
Account, as determined by the department in consultation with, and
with approval of, the California Transportation Commission.
   (C) Seventy-five million dollars (,000,000) from the fund
reserve in the Motor Vehicle Account for the 2005 -06 fiscal year,
which is hereby appropriated.
   (c) If the amount of the overruns estimated by the department, as
described in subdivision (a), is less than three billion six hundred
million dollars (,600,000,000), the savings shall be shared between
the state and the authority in the same proportion as their
proportional contribution to the estimated cost overruns, as provided
in paragraphs (1), (3), and (4) of subdivision (b).
   (d) If the actual amount of the overruns exceeds the amount
estimated by the department, as described in subdivision (a), the
authority shall utilize funds generated under the powers granted to
it in Sections 30886, 30950.2, 30954, 30961, and 31011 to provide
additional financial resources to complete the state toll bridge
seismic retrofit program.
   (e) Funds made available under this section and Section 188.5 for
the replacement of the east span of the San Francisco-Oakland Bay
Bridge shall only be expended for the structure described in
paragraph (9) of subdivision (b) of Section 188.5 as that section
read on January 1, 2005.



188.7.  Any expenses incurred in connection with any state highway
under Article 4 (commencing with Section 2760) and Article 5
(commencing with Section 2780) of Chapter 5 of Title 1 of Part 3 of
the Penal Code shall be paid from money in the State Highway Account
available for the construction of state highways, but such
expenditures shall not be subject to Sections 188 and 188.8.



188.8.  (a) From the funds programmed pursuant to Section 188 for
regional improvement projects, the commission shall approve programs
and program amendments, so that funding is distributed to each county
of County Group No. 1 and in each county of County Group No. 2
during the county share periods commencing July 1, 1997, and ending
June 30, 2004, and each period of four years thereafter.  The amount
shall be computed as follows:
   (1) The commission shall compute, for the county share periods all
of the money to be expended for regional improvement projects in
County Groups Nos. 1 and 2, respectively, as provided in Section 188.

   (2) From the amount computed for County Group No. 1 in paragraph
(1) for the county share periods the commission shall determine the
amount of programming for each county in the group based on a formula
that is based 75 percent on the population of the county to the
total population of County Group No. 1 and 25 percent on state
highway miles in the county to the total state highway miles in
County Group No. 1.
   (3) From the amount computed for County Group No. 2 in paragraph
(1) for the county share periods the commission shall determine the
amount of programming for each county in the group based on a formula
that is based 75 percent on the population of the county to the
total population of County Group No. 2 and 25 percent on state
highway miles in the county to the total state highway miles in
County Group No. 2.
   (b) Notwithstanding subdivision (a), that portion of the county
population and state highway mileage in El Dorado and Placer Counties
that is included within the jurisdiction of the Tahoe Regional
Planning Agency shall be counted separately toward the area under the
jurisdiction of the Tahoe Regional Transportation Agency and may not
be included in El Dorado and Placer Counties.  The commission shall
approve programs, program amendments, and fund reservations for the
area under the jurisdiction of the Tahoe Regional Transportation
Agency that shall be calculated using the formula described in
paragraph (2) of subdivision (a).
   (c) A transportation planning agency designated pursuant to
Section 29532 of the Government Code, or a county transportation
commission created by Division 12 (commencing with Section 130000) of
the Public Utilities Code, may adopt a resolution to pool its county
share programming with any county or counties adopting similar
resolutions to consolidate its county shares for two consecutive
county share periods into a single share covering both periods.  A
multicounty transportation planning agency with a population of less
than three million may also adopt a resolution to pool the share of
any county or counties within its region.  The resolution shall
provide for pooling the county  share programming in any of the
pooling counties for the new single share period and shall be
submitted to the commission not later than May 1 immediately
preceding the commencement of the county share period.
   (d) For the purposes of this section, funds programmed shall
include the following costs pursuant to subdivision (b) of Section
14529 of the Government Code:
   (1) The amounts programmed or budgeted for both components of
project development in the original programmed year.
   (2) The amount programmed for right-of-way in the year programmed
in the most recent state transportation improvement program.  If the
final estimate is greater than 120 percent or less than 80 percent of
the amount originally programmed, the amount shall be adjusted for
final expenditure estimates at the time of right-of-way
certification.
   (3) The engineer's final estimate of project costs, including
construction engineering, presented to the commission for approval
pursuant to Section 14533 of the Government Code in the year
programmed in the most recent state transportation improvement
program.  If the construction contract award amount is less than 80
percent of the engineer's final estimate, excluding construction
engineering, the department shall notify the commission and the
commission may adjust its project allocation accordingly.
   (4) Project costs shown in the program, as amended, where project
allocations have not yet been approved by the commission, escalated
to the date of scheduled project delivery.
   (e) Project costs may not be changed to reflect any of the
following:
   (1) Differences that are within 20 percent of the amount
programmed for actual project development cost.
   (2) Actual right-of-way purchase costs.
   (3) Construction contract award amounts, except when those amounts
are less than 80 percent of the engineer's final estimate, excluding
construction engineering, and the commission has adjusted the
project construction allocation.
   (4) Changes in construction expenditures, except for supplemental
project allocations made by the commission.
   (f) For the purposes of this section, the population in each
county is that determined by the last preceding federal census, or a
subsequent census validated by the Population Research Unit of the
Department of Finance, at the beginning of each county share period.

   (g) For the purposes of this section, "state highway miles" means
the miles of state highways open to vehicular traffic at the
beginning of each county share period.
   (h) It is the intent of the Legislature that there is to be
flexibility in programming under this section and Section 188 so
that, while ensuring that each county will receive an equitable share
of state transportation improvement program funding, the types of
projects selected and the programs from which they are funded may
vary from county to county.
   (i) Commencing with the four-year period commencing on July 1,
2004, individual county share shortfalls and surpluses at the end of
each four-year period, if any, shall be carried forward and credited
or debited to the following four years.
   (j) The commission, with the consent of the department, may
consider programming projects in the state transportation improvement
program in a county with a population of not more than 1,000,000 at
a level higher or lower than the county share, when the regional
agency either asks to reserve part or all of the county's share until
a future programming year, to build up a larger share for a higher
cost project, or asks to advance an amount of the share, in an amount
not to exceed 200 percent of the county's current share, for a
larger project, to be deducted from shares for future programming
years.  After consulting with the department, the commission may
adjust the level of programming in the regional program in the
affected region against the level of interregional programming in the
improvement program to accomplish the reservation or advancement,
for the current state transportation improvement program.  The
commission shall keep track of any resulting shortfalls or surpluses
in county shares.
   (k) Notwithstanding subdivision (a), in a region defined by
Section 66502 of the Government Code, the transportation planning
agency may adopt a resolution to pool the county share of any county
or counties within the region, if each county receives no less than
85 percent and not more than 115 percent of its county share for a
single county share period and 100 percent of its county share over
two consecutive county share periods.  The resolution shall be
submitted to the commission not later than May 1, immediately
preceding the commencement of the county share period.
   (l) Federal funds used for federal demonstration projects that use
federal obligational authority otherwise available for other
projects shall be subtracted from the county share of the county
where the project is located.



188.10.  (a) The Toll Bridge Seismic Retrofit Account is hereby
created in the State Transportation Fund. The money in the account is
hereby appropriated, without regard to fiscal years, to the
department for the purpose of funding seismic retrofit or replacement
of the bridges listed in Section 188.5. Notwithstanding Section
11012 of the Government Code, the department, in consultation with
the Department of Finance and the Office of the State Treasurer, may
authorize the investment of bond proceeds or commercial paper
proceeds deposited into the account in obligations permitted by the
Treasurer. Those invested amounts may be held by a trustee who is
either the Treasurer or who is selected by the Treasurer. Authorized
investments made pursuant to this section shall be included as cash
balance for purposes of reporting the condition of the account in the
Governor's proposed budget or pursuant to the reporting requirement
contained in subdivision (b) of Section 14556.9 of the Government
Code.
   (b) The Department of Finance shall provide notification to the
Joint Legislative Budget Committee and to the transportation policy
committee in each house in the form of a financing plan or pro forma
at least 60 days prior to the initial issuance of any commercial
paper or the issuance of any bonds for purposes of the toll bridge
seismic retrofit program. The financing plan or pro forma shall
include all of the following components:
   (1) The amount and form of the debt issuance or issuances, the
term of the issuance or issuances, repayment and security provisions,
the amount and structure of any reserve funds, and all other details
of the proposed financing.
   (2) All necessary information with respect to the sources and uses
of funds to construct the projects identified in the toll bridge
seismic retrofit program and the timing of expenditures by each fund
source by fiscal year.
   (3) An assessment of funding available for the Bay Area Toll
Authority for authorized projects as a result of the financing.
   (c) The Department of Finance is not required to provide
additional notification to the Legislature after meeting the
requirements of subdivision (b) unless additional bonds are issued or
changes are made to existing bonds that alter the content of the
financing plan it submitted under subdivision (b). The Department of
Finance shall notify the Legislature within 60 days of the closing of
a refunding or an advance refunding of an existing bond but is not
required to include this information in its report under subdivision
(b).
   (d) No interest income earned as a result of investments made
pursuant to subdivision (a), or from reserve funds created to support
the financing, shall be used to pay project costs that are in excess
of four billion six hundred thirty-seven million dollars
(,637,000,000). No reserve funds, other than a required debt
service reserve fund, shall be in place subsequent to the completion
of the seismic retrofit projects.
   (e) Notwithstanding any other provision of law, the Department of
Finance may adjust the budgeting, accounting, and reporting system
for the account so that unliquidated encumbrances are not reflected
in the fund balance or financial statements.



188.11.  (a) The commission, with assistance from the department and
regional agencies, shall maintain a long-term balance of shares,
shortfalls, and surpluses for regional improvement programs.
   (b) The balance shall include all of the following:
   (1) Shares from the fund estimate for each state transportation
improvement program pursuant to Section 14525 of the Government Code.

   (2) Amounts programmed in each state transportation improvement
program pursuant to Section 14529 of the Government Code.
   (3) Surpluses or shortfalls due to reservations or advancements
pursuant to subdivision (j) of Section 188.8.
   (4) Amounts deducted or added because of changes in project
development costs or a cost increase or savings in the final
engineering estimate or the final right-of-way certification estimate
at the time of allocation for construction, pursuant to subdivisions
(d) and (e) of Section 188.8.
   (5) Any supplemental project allocations during or following
construction.
   (6) Amounts deducted or added because of amendments to the state
transportation improvement program that add, delete, or change the
scope and cost of regional improvement projects, pursuant to Section
14531 of the Government Code.
   (c) The balance through the preceding fiscal year shall be made
available for review by all regional agencies at the time of each
fund estimate, and by not later than August 15 of each year.
   (d) The commission, through the fund estimate, shall restore for
the next state transportation improvement program the interregional
improvement program level specified in subdivision (a) of Section
164.


188.14.  The department may transfer or loan, or both, funds between
the Toll Bridge Seismic Retrofit Account in the State Transportation
Fund and the State Highway Account for cash flow purposes to
accomplish individual toll bridge seismic requirements.  No funds may
be transferred or loaned from the State Highway Account to fund any
amenity, as defined by Section 31000, or to fund shortages that
result from the expenditure of funds from the Toll Bridge Seismic
Retrofit Account for amenities.



188.15.  (a) Except as authorized under subdivision (b), toll funds
used as a credit toward the nonfederal share of any federal-aid
highway project, as authorized under Section 120(j) of Title 23 of
the United States Code, or private entity expenditures used for that
purpose, as authorized under Section 1217(i) of the Transportation
Equity Act for the 21st Century (P.L. 105-178), may not be used as a
credit for any project that is not within the county or counties in
which the toll facility is located.
   (b) The toll funds and private expenditures described in
subdivision (a) may be used as a credit toward a project located
outside the county or counties in which the toll facility is located
if the department determines that there is no project in the current
state transportation improvement program cycle within that county or
counties for which the credit may be used.
   (c) The department shall do both of the following:
   (1) Obtain specific project proposals for use of the credit
described in subdivision (a) from the regional transportation
planning agencies and county transportation commissions of the county
or counties in which the toll facility is located.
   (2) Obtain contingency project proposals for use of the credit
outside the county or counties in which the toll facility is located,
in preparation for the occurrence of the condition described in
subdivision (b).
   (d) The county share allocations, as computed under Section 188 or
188.8, may not be increased or reduced as a consequence of any toll
revenues or private agency expenditures that are utilized under this
section as a credit toward the nonfederal share of any federally
funded project.



189.1.  Notwithstanding any other provision of law, State
Transportation District 12, consisting of the County of Orange, is
hereby created.  The district shall have a separate district
organization, staff, and facilities in the county.



190.  Each annual proposed budget prepared pursuant to Section 165
shall include the sum of fifteen million dollars (,000,000), which
sum may include federal funds available for grade separation
projects, for allocations to grade separation projects, in accordance
with Chapter 10 (commencing with Section 2450) of Division 3.  The
funds included for such purposes pursuant to this section each fiscal
year, or by any other provision of law, shall be available for
allocation and expenditure without regard to fiscal years.



191.  Prior to each July 15, the department shall prepare and
forward to the Controller a report identifying the amounts to be
deducted from the allocations under Sections 2104 and 2107 as
provided in Sections 2104.1 and 2107.6.  The amounts shall be a
proration of five million dollars (,000,000), less the federal
subventions for grade separation projects included in allocations
made pursuant to Chapter 10 (commencing with Section 2450) of
Division 3 in the preceding fiscal year in excess of three million
dollars (,000,000).  The proration shall be based on the ratio that
grade separation allocations to cities, and grade separation
allocations to counties, bears to the total allocations in the
preceding fiscal year.



191.5.  Any city, city and county, or county may use funds allocated
from the State Highway Account or the Highway Users Tax Account in
the Transportation Tax Fund to finance the local governmental entity'
s share of the cost of constructing protective facilities on all
mainline grade crossings.



192.  In apportioning the State Highway Account money as required by
this article, there shall be excluded, from the computations of
moneys expended, any sums contributed by any person or governmental
unit to pay any portion of the cost of constructing, improving, or
maintaining any state highway.
   Except as otherwise permitted in this article, any annual or
biennial balances remaining unexpended to the credit of any
particular county group shall remain credited to such county group.




193.  The State Highway Account money allocated and available each
year for state highways shall be expended by the department:
   (a) On the locations determined by the commission, to acquire the
necessary real property or interests therein for, and to construct or
improve to standards justified by traffic requirements, the state
highways in the state highway system.
   (b) To construct or improve highways in state parks in the manner
provided by law.


194.  Each annual proposed budget prepared pursuant to Section 165
shall include an amount recommended to be appropriated to the
Transportation Planning and Development Account in the State
Transportation Fund.  The amount shall, to the extent possible, equal
the pro rata share of the comprehensive transportation planning
duties attributable to highway and to exclusive public mass transit
guideway planning and development.



203.  It is the intent of the Legislature that each annual proposed
budget prepared pursuant to Section 165 include state funds from the
State Highway Account for the California Transportation Research and
Innovation Program, in accordance with Chapter 4 (commencing with
Section 14450) of Part 5 of Division 3 of Title 2 of the Government
Code.  These funds shall be identified as a distinct line-item in
each proposed budget and shall be in addition to existing research
and development conducted by the department.



204.  The department shall exercise the same powers and duties with
respect to State highways within cities as with respect to other
State highways.


207.  The commission may, by resolution, provide a plan under which
the department may invest presently unneeded money in the State
Highway Account in bonds or interest-bearing notes or obligations of
the United States for which the faith and credit of the United States
are pledged for the payment of principal and interest, in time bank
deposits in eligible banks described in Section 16500 of the
Government Code, in deposits in eligible savings and loan
associations described in Section 16600 of the Government Code, or in
any securities of federal agencies described in Section 16430 of the
Government Code.  The department may, with the approval of the State
Treasurer, invest such excess funds in accordance with the
resolution.  All such bonds, notes, or obligations purchased under
the provisions of this section shall be delivered to the State
Treasurer, who shall keep them as a portion of the State Highway
Account, and all interest thereon when collected shall be paid into
and become a part of the State Highway Account.
   All investments made under this section shall be liquidated as
soon as the funds invested are required for state highway purposes.



208.  The Controller shall, from time to time, determine whether any
portion of the money or investment in the Department of Motor
Vehicles Uncleared Collections Account in the Special Deposit Fund is
not necessary for immediate use and, if so, the amount thereof shall
thereupon be designated as "available money." On demand of the
Department of Transportation from time to time, the amounts demanded,
not exceeding ten million dollars (,000,000) in the aggregate,
shall, on order of the Controller, be transferred to the State
Highway Account from the "available money" and shall be available for
the acquisition of properties to constitute rights-of-way for state
highway purposes.  On demand of the Controller, the money shall be
retransferred to the Department of Motor Vehicles Uncleared
Collections Account.