SECTIONS 165-171 - California Statutes

STREETS AND HIGHWAYS CODE

SECTION 165-171

165. The department shall prepare and submit to the Governor a
proposed budget. The department shall include, within the proposed
budget, the portion of that budget that is to be funded from the
State Highway Account.
The department shall inform the commission of all pertinent
assumptions and policy directions it intends to use in preparing the
budget. This information shall be forwarded to the commission as soon
as available. The commission shall review the assumptions and policy
directions used in preparing the budget and forward its comments and
recommendations to the department.

166. The portion of the proposed budget to be funded from the State
Highway Account shall be included in the printed fiscal year budget
submitted to the Legislature. The degree of detail contained in the
portion of the proposed budget shall be established jointly by the
Department of Transportation and the Department of Finance. That
portion of the proposed budget shall be, for the State Highway
Account, the complete and detailed budget as required by Section
13320 of the Government Code. In case of inconsistency between that
section and this article, the provisions of this article shall
control.
Notwithstanding Section 13321 of the Government Code, the
Department of Transportation, in administering the budget of the
State Highway Account, shall be responsible for determining the
expenditures or incurrence of obligations by quarter or other period
of the fiscal year.

166.5. In order to support its proposed budgets and to improve its
program management, the Department of Transportation shall develop
budgeting, accounting, fiscal control, and management information
systems to provide at least the following information:
(a) Documentation and control of positions and personnel services
expenditures.
(b) Accounting and reporting of revenues and expenditures on a
basis generally consistent with provisions of the Government Code.
These systems shall be developed to better inform the Legislature
so that responsible legislative oversight of the program and budget
of the Department of Transportation would be possible. These systems
shall recognize the special characteristics of the department's
program.
Development of these systems shall be closely coordinated with the
Department of Finance, the Joint Legislative Budget Committee, the
Committees on Transportation of the Senate and Assembly, the
Subcommittee on General Government and Transportation of the Senate
Committee on Finance, and the Subcommittee on Resources and
Transportation of the Assembly Committee on Ways and Means.

167. (a) Funds in the State Highway Account in the State
Transportation Fund shall be programmed, budgeted subject to Section
163, and expended to maximize the use of federal funds and shall be
based on the following sequence of priorities:
(1) Operation, maintenance, and rehabilitation of the state
highway system.
(2) Safety improvements where physical changes, other than adding
additional lanes, would reduce fatalities and the number and severity
of injuries.
(3) Transportation capital improvements that expand capacity or
reduce congestion, or do both.
(4) Environmental enhancement and mitigation programs.
(b) With respect to the funds in the State Highway Account, in the
Public Transportation Account, and in the Passenger Rail Bond Fund,
the proposed budget shall be organized on a program basis. The
proposed budget shall list the proposed expenditures for the
transportation program under the following program elements:
(1) Administration.
(2) Program development.
(3) Maintenance.
(4) State highway operation and protection.
(5) Local assistance.
(6) Interregional improvements.
(7) Regional improvements.
(8) Environmental enhancement and mitigation programs.
(c) State operations expenditure amounts of the department for
interregional and regional transportation improvement projects shall
be listed as required by subdivision (b) of Section 14529 of the
Government Code, but those amounts other than those for the
acquisition of rights-of-way and construction shall not be subject to
allocation by the commission.
(d) To align the annual budget with the adopted state
transportation improvement program, the department may submit to the
Department of Finance revised capital outlay support and capital
outlay budget estimates as part of its May revision process.
(e) The budget shall not include specific appropriations for
specific transportation improvement projects, and the Legislature
shall not enact legislation containing specific individual
transportation projects.
(f) The basis for defining major and minor capital outlay projects
shall be established by the commission.
(g) The Legislative Analyst shall prepare an analysis of the
proposed expenditures for each program element as a part of the
budget analysis.

169. For the purposes of this code, except as provided in Section
170, the date of the award of a contract and of the commencement of a
day-labor project shall be deemed the time when the entire
obligation thereunder is incurred.

170. Where it is estimated by the department that the work involved
in a project to be constructed under the State Contract Act (Chapter
1 (commencing with Section 10100) of Part 2 of Division 2 of the
Public Contract Code) will not be completed within a given fiscal
year, the department, in the contract specifications, may provide a
limitation upon the amounts that will be paid to the contractor
during the first or second fiscal years of the construction period.
Subject to this limitation, the contracts shall provide for the
completion of the work and full payment therefor.
For the purposes of complying with Section 169, the department may
include in any proposed budget, and the commission may allocate, at
least the amounts with reference to those construction projects as
would be payable during the fiscal year, together with all necessary
engineering and other charges.

170.5. Notwithstanding Section 13302 of the Government Code, the
department may, with respect to any project which will not be
completed within a fiscal year, finance the project on a cash basis
if the department has sufficient unused bonding authority not
earmarked for any other project.

171. Prior to the commencement of each fiscal year, the department
may advertise for bids for capital outlay projects anticipated to be
budgeted during the fiscal year. However, the department shall not
award any contract for any capital outlay project until (1)
sufficient funds have been appropriated for such project and (2) the
commission has allocated sufficient funds for the project.