SECTIONS 14553-14553.10 - California Statutes

GOVERNMENT CODE

SECTION 14553-14553.10

14553. (a) The commission may from time to time select and
designate eligible projects to be funded from the proceeds of notes,
if financing of the project from the proceeds of notes has been
approved by the Federal Highway Administration and the regional
transportation planning agency, and the project has completed
environmental clearance and project design.
(b) Notwithstanding Section 7550.5 of the Government Code, on or
before April 1 of each year, the commission, in conjunction with the
Treasurer's office, shall prepare an annual analysis of the bonding
capacity of federal transportation funds deposited in the State
Highway Account in the State Transportation Fund.

14553.2. The commission, in cooperation with the department and
regional transportation planning agencies, shall establish guidelines
for eligibility for funding allocations under this chapter. The
guidelines shall be nondiscriminatory and shall be designed to allow
as many counties as possible to establish eligibility for funding
allocations under this chapter, regardless of the population or
geographic location of the county.

14553.4. The Treasurer may not authorize the issuance of notes if
the annual repayment obligations of all outstanding notes in any
fiscal year would exceed 15 percent of the total amount of federal
transportation funds deposited in the State Highway Account in the
State Transportation Fund for any consecutive 12-month period within
the preceding 24 months.

14553.6. Funds allocated to a State Transportation Improvement
Program project under this chapter, including cost overruns and
financing costs, shall be counted against the interregional
improvement program share in the case of a project in the
interregional improvement program and the county share for the county
in which the project is located in the case of a project in a
regional improvement program.

14553.7. In order to provide security for repayment of the notes,
the commission shall adopt a resolution dedicating and pledging any
future receipts of federal transportation funds received by the state
to the payment of principal of, and interest and premium on the
notes, for as long as any notes remain outstanding. That action shall
constitute a pledge or receipt of those moneys as collateral within
the meaning of subdivision (b) of Section 5450. The pledge shall be
governed under Chapter 5.5 (commencing with Section 5450) of Division
6 of Title 1 of the Government Code. The commission shall be deemed
a "public body" for purposes of Section 5451, as defined in Section
5450.

14553.8. Before notes are issued under this chapter, the
commission, in cooperation with the department and the Department of
Finance, shall consider and determine the appropriateness of the
mechanism authorized by this chapter in comparison to other funding
mechanisms, including, but not limited to, pay-as-you-go, federal
advance construction, federal incremental advance construction, or
other funding methods authorized under federal law to achieve maximum
efficiency from the state's federal allocation of transportation
funds.

14553.9. (a) Upon taking the actions authorized under this article,
the commission may request the Treasurer to issue notes to provide
funds for the eligible projects.
(b) Notwithstanding Section 7550.5 of the Government Code, on or
before April 1 of each year, the commission shall prepare and submit
an annual report regarding the preceding calendar year to the
Governor and the Legislature. Each report shall compile and detail
the total amount of outstanding debt issued pursuant to this chapter
and the projects funded by that outstanding debt.

14553.10. On or before October 1 of each year, the commission shall
report to the Governor, the Department of Finance, the Legislative
Analyst, and the Chairs of the transportation committees in the
Assembly and Senate on the amount of notes that the commission
intends to issue for the subsequent fiscal year.