Chapter 2Road Maintenance and Rehabilitation Program

Section § 2030

Explanation

The Road Maintenance and Rehabilitation Program in California is set up to fund essential maintenance and repairs on highways and local roads. The money is focused mainly on basic upkeep, rehabilitation, and safety projects. This includes road repairs, safety measures, railroad crossings, and adding things like bike paths and better pedestrian access.

The funds can also help meet matching requirements for obtaining state or federal project funds. The program encourages using advanced technology and recycling to cut costs and emissions, and also plans for future technology like electric vehicle charging.

It considers climate change impacts, aiming to make roads more resilient to issues like fires and flooding. There’s also an emphasis on making roads safer for all users, including cyclists and pedestrians. Finally, the program’s funding guidelines align with other state programs and they bypass certain administrative rules for faster allocation.

(a)CA Streets and Highways Code § 2030(a) The Road Maintenance and Rehabilitation Program is hereby created to address deferred maintenance on the state highway system and the local street and road system. Funds made available by the program shall be prioritized for expenditure on basic road maintenance and road rehabilitation projects, and on critical safety projects.
(b)Copy CA Streets and Highways Code § 2030(b)
(1)Copy CA Streets and Highways Code § 2030(b)(1) Funds made available by the program shall be used for projects that include, but are not limited to, the following:
(A)CA Streets and Highways Code § 2030(b)(1)(A) Road maintenance and rehabilitation.
(B)CA Streets and Highways Code § 2030(b)(1)(B) Safety projects.
(C)CA Streets and Highways Code § 2030(b)(1)(C) Railroad grade separations.
(D)CA Streets and Highways Code § 2030(b)(1)(D) Complete street components, including active transportation purposes, pedestrian and bicycle safety projects, transit facilities, and drainage and stormwater capture projects in conjunction with any other allowable project.
(E)CA Streets and Highways Code § 2030(b)(1)(E) Traffic control devices.
(2)CA Streets and Highways Code § 2030(b)(2) Funds made available by the program may also be used to satisfy a match requirement in order to obtain state or federal funds for projects authorized by this subdivision.
(c)CA Streets and Highways Code § 2030(c) To the extent possible and cost effective, and where feasible, the department and cities and counties receiving funds under the program shall use advanced technologies and material recycling techniques that reduce the cost of maintaining and rehabilitating the streets and highways, and that exhibit reduced levels of greenhouse gas emissions through material choice and construction method.
(d)CA Streets and Highways Code § 2030(d) To the extent possible and cost effective, and where feasible, the department and cities and counties receiving funds under the program shall use advanced technologies and communications systems in transportation infrastructure that recognize and accommodate advanced automotive technologies that may include, but are not necessarily limited to, charging or fueling opportunities for zero-emission vehicles, and provision of infrastructure-to-vehicle communications for transitional or full autonomous vehicle systems.
(e)CA Streets and Highways Code § 2030(e) To the extent deemed cost effective, and where feasible, in the context of both the project scope and the risk level for the asset due to global climate change, the department and cities and counties receiving funds under the program shall include features in the projects funded by the program to better adapt the asset to withstand the negative effects of climate change and make the asset more resilient to impacts such as fires, floods, and sea level rise.
(f)CA Streets and Highways Code § 2030(f) To the extent beneficial, cost effective, and practicable in the context of facility type, right-of-way, project scope, and quality of nearby alternative facilities, and where feasible, the department and cities and counties receiving funds under the program shall incorporate complete street elements into projects funded by the program, including, but not limited to, elements that improve the quality of bicycle and pedestrian facilities and that improve safety for all users of transportation facilities.
(g)CA Streets and Highways Code § 2030(g) For purposes of funds directed to the State Highway Operation and Protection Program, the guidelines and reporting provisions shall be consistent with Section 14526.5 of the Government Code.
(h)CA Streets and Highways Code § 2030(h) Guidelines adopted by the commission to facilitate the allocation of funds in the account shall be exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
road maintenance rehabilitation program safety projects railroad grade separations active transportation pedestrian and bicycle safety transit facilities traffic control devices material recycling greenhouse gas emissions zero-emission vehicles autonomous vehicle systems climate change adaptation complete street components infrastructure communications
(Added by Stats. 2017, Ch. 5, Sec. 36. (SB 1) Effective April 28, 2017.)

Section § 2031

Explanation

The law states that certain revenues are to be stored in a special account called the Road Maintenance and Rehabilitation Account within the State Transportation Fund. These include extra funds from increased motor vehicle fuel taxes, transportation improvement fees, and higher vehicle registration fees.

Additionally, it includes part of the increased diesel fuel tax and any other funds specified for this program. Essentially, it's about collecting money from various vehicle-related fees and taxes to be used for road upkeep and improvements.

The following revenues shall be deposited in the Road Maintenance and Rehabilitation Account, which is hereby created in the State Transportation Fund:
(a)CA Streets and Highways Code § 2031(a) Notwithstanding subdivision (b) of Section 2103 and pursuant to subdivision (a) of Section 2103.1, the portion of the revenues in the Highway Users Tax Account attributable to the increases in the motor vehicle fuel excise tax pursuant to subdivision (c) of Section 7360 of the Revenue and Taxation Code, as adjusted pursuant to subdivision (d) of that section.
(b)CA Streets and Highways Code § 2031(b) The revenues from the portion of the transportation improvement fee pursuant to subdivision (c) of Section 11053 of the Revenue and Taxation Code.
(c)CA Streets and Highways Code § 2031(c) The revenues from the increase in the vehicle registration fee pursuant to Section 9250.6 of the Vehicle Code, as adjusted pursuant to subdivision (b) of that section.
(d)CA Streets and Highways Code § 2031(d) Notwithstanding subdivision (b) of Section 2103 and pursuant to paragraph (2) of subdivision (b) of Section 2103.1, one-half of the revenues attributable to the increase in the diesel fuel excise tax pursuant to subdivisions (b) and (c) of Section 60050 of the Revenue and Taxation Code.
(e)CA Streets and Highways Code § 2031(e) Any other revenues designated for the program.
Road Maintenance and Rehabilitation Account State Transportation Fund motor vehicle fuel excise tax transportation improvement fee vehicle registration fee diesel fuel excise tax Highway Users Tax Account revenue allocation funding for road maintenance state infrastructure funding fuel tax increase rehabilitation funding transportation revenue public road improvements
(Added by Stats. 2017, Ch. 5, Sec. 36. (SB 1) Effective April 28, 2017.)

Section § 2031.5

Explanation

This law says that each year, the state budget must include funds from the Road Maintenance and Rehabilitation Account to cover the administrative costs related to this particular chapter.

For each fiscal year, the annual Budget Act shall contain an appropriation from the Road Maintenance and Rehabilitation Account for the costs of administering this chapter.
fiscal year funding annual budget Road Maintenance and Rehabilitation Account administrative costs funding allocation budget appropriation road maintenance funding California state budget budget act infrastructure funding rehabilitation costs
(Added by Stats. 2017, Ch. 5, Sec. 36. (SB 1) Effective April 28, 2017.)

Section § 2032

Explanation

This statute outlines how funds from the Road Maintenance and Rehabilitation Account in California are distributed for transportation-related projects. Each year, $200 million goes to local agencies with voter-approved transportation taxes or fees for improvements like freeways, while $100 million is allocated to the Active Transportation Program. Another $400 million is set for bridge and culvert maintenance, and $25 million supports the freeway service patrol program. Additionally, $5 million is dedicated annually to workforce development for preapprenticeship programs, and $25 million supports local planning grants. University research receives $5 million for UC and $2 million for CSU. Remaining funds are split equally between maintaining state highways and supporting city and county projects.

(a)Copy CA Streets and Highways Code § 2032(a)
(1)Copy CA Streets and Highways Code § 2032(a)(1) After deducting the amounts appropriated in the annual Budget Act, as provided in Section 2031.5, two hundred million dollars ($200,000,000) of the remaining revenues deposited in the Road Maintenance and Rehabilitation Account shall be set aside annually for local or regional transportation agencies that have sought and received voter approval of taxes or that have imposed fees, including uniform developer fees as defined by subdivision (b) of Section 8879.67 of the Government Code, which taxes or fees are dedicated solely to transportation improvements. The Controller shall each month set aside one-twelfth of this amount, except in fiscal year 2017–18, the Controller shall set aside one-eighth of this amount, to accumulate a total of two hundred million dollars ($200,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.
(2)CA Streets and Highways Code § 2032(a)(2) Eligible projects under this subdivision include, but not are limited to, sound walls for a freeway that was built before 1987 without sound walls and with or without high-occupancy vehicle lanes if the completion of the sound walls has been deferred due to lack of available funding for at least 20 years and a noise barrier scope summary report has been completed within the last 20 years.
(3)CA Streets and Highways Code § 2032(a)(3) Notwithstanding Section 13340 of the Government Code, the funds available under this subdivision in each fiscal year are hereby continuously appropriated for allocation by the commission for road maintenance and rehabilitation and other transportation improvement projects pursuant to Section 2033.
(b)CA Streets and Highways Code § 2032(b) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amount allocated in subdivision (a), beginning in the 2017–18 fiscal year, one hundred million dollars ($100,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, on the Active Transportation Program created pursuant to Chapter 8 (commencing with Section 2380) of Division 3 to be allocated by the California Transportation Commission pursuant to Section 2381. The Controller shall each month set aside one-twelfth of this amount, except in the 2017–18 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of one hundred million dollars ($100,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.
(c)CA Streets and Highways Code § 2032(c) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) and (b), beginning in the 2017–18 fiscal year, four hundred million dollars ($400,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for bridge and culvert maintenance and rehabilitation. The Controller shall each month set aside one-twelfth of this amount, except in the 2017–18 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of four hundred million dollars ($400,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.
(d)CA Streets and Highways Code § 2032(d) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a), (b), and (c), beginning in the 2017–18 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be transferred annually to the State Highway Account for expenditure, upon appropriation by the Legislature, to supplement the freeway service patrol program. The Controller shall each month set aside one-twelfth of this amount, except in the 2017–18 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.
(e)CA Streets and Highways Code § 2032(e) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a), (b), (c), and (d), in the 2017–18, 2018–19, 2019–20, 2020–21, and 2021–22 fiscal years, from revenues in the Road Maintenance and Rehabilitation Account that are not subject to Article XIX of the California Constitution, five million dollars ($5,000,000) shall be appropriated in each fiscal year to the California Workforce Development Board to assist local agencies to implement policies to promote preapprenticeship training programs to carry out the projects that are funded by the account pursuant to Section 2038. Funds appropriated pursuant to this subdivision in the Budget Act but remaining unexpended at the end of each applicable fiscal year shall be reappropriated for the same purposes in the following year’s Budget Act, but all funds appropriated or reappropriated pursuant to this subdivision in the Budget Act shall be liquidated no later than June 30, 2027.
(f)CA Streets and Highways Code § 2032(f) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a), (b), (c), (d), and (e), beginning in the 2017–18 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for local planning grants, as described in Section 2033.5. The Controller shall each month set aside one-twelfth of this amount, except in the 2017–18 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.
(g)CA Streets and Highways Code § 2032(g) After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a), (b), (c), (d), (e), and (f), beginning in the 2017–18 fiscal year and each fiscal year thereafter, from the remaining revenues, five million dollars ($5,000,000) shall be available, upon appropriation, to the University of California for the purpose of conducting transportation research and two million dollars ($2,000,000) shall be available, upon appropriation, to the California State University for the purpose of conducting transportation research and transportation-related workforce education, training, and development. Before the start of each fiscal year, the Secretary of Transportation and the chairs of the Assembly Committee on Transportation and the Senate Committee on Transportation and Housing may set out a recommended priority list of research components to be addressed in the upcoming fiscal year.
(h)CA Streets and Highways Code § 2032(h) Notwithstanding Section 13340 of the Government Code, the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account are hereby continuously appropriated as follows:
(1)CA Streets and Highways Code § 2032(h)(1) Fifty percent for allocation to the department for maintenance of the state highway system or for purposes of the state highway operation and protection program.
(2)CA Streets and Highways Code § 2032(h)(2) Fifty percent for apportionment to cities and counties by the Controller pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103 for the purposes authorized by this chapter.
Road Maintenance and Rehabilitation Account local transportation agencies voter-approved taxes sound walls bridge maintenance culvert rehabilitation freeway service patrol Active Transportation Program workforce development local planning grants transportation research funding transportation improvement projects state highway maintenance city and county projects apprenticeship training programs
(Amended by Stats. 2018, Ch. 92, Sec. 205. (SB 1289) Effective January 1, 2019.)

Section § 2032.5

Explanation

This law section requires the Department of Transportation and local governments in California to be accountable for how they spend public money on maintaining highways, streets, and roads. They must set performance goals, track their progress, and report annually on how funds are used and what has been achieved. The department needs to detail completed projects, including costs, locations, and outcomes.

The California Transportation Commission reviews these reports to ensure funds are effectively reducing maintenance backlogs and improving road conditions. If funds are mismanaged, they can suggest improvements or halt future funding. Additionally, the department is tasked with finding $100 million in savings each year to reinvest in highway maintenance and improvements, reporting these savings back to the commission.

(a)CA Streets and Highways Code § 2032.5(a) It is the intent of the Legislature that the Department of Transportation and local governments are held accountable for the efficient investment of public funds to maintain the public highways, streets, and roads, and are accountable to the people through performance goals that are tracked and reported.
(b)CA Streets and Highways Code § 2032.5(b) The department shall annually report to the commission relative to the expenditures made with funds received pursuant to subdivision (c) of, and paragraph (1) of subdivision (h) of, Section 2032, and the progress made and achievement of the performance goals outlined in subdivision (n) of Section 1 of the act adding this section.
(c)CA Streets and Highways Code § 2032.5(c) For each fiscal year in which the department receives an allocation of funds described in subdivision (b), the department shall submit documentation to the commission that includes a description and the location of each completed project, the amount of funds expended on the project, the completion date, and the project’s estimated useful life. Annually, the commission shall evaluate the effectiveness of the department in reducing deferred maintenance and improving road conditions on the state highway system, as demonstrated by the progress made by the goals set forth in subdivision (n) of Section 1 of the act enacting this section. The commission may make recommendations for improvement and may withhold future project allocations if it determines program funds are not being appropriately spent. The commission shall annually include any findings in its annual report to the Legislature pursuant to Section 14535 of the Government Code.
(d)CA Streets and Highways Code § 2032.5(d) The department shall implement efficiency measures with the goal to generate at least one hundred million dollars ($100,000,000) per year in savings to invest in maintenance and rehabilitation of the state highway system. These savings shall be reported to the commission.
Department of Transportation public funds accountability highway maintenance performance goals annual reporting project documentation expenditure tracking road conditions improvement fund allocation deferred maintenance reduction efficiency measures cost savings Transportation Commission performance evaluation legislative report
(Amended by Stats. 2017, Ch. 20, Sec. 16. (AB 115) Effective June 27, 2017.)

Section § 2033

Explanation

This law requires that by January 1, 2018, the California Transportation Commission, together with various local and state agencies, must create guidelines for how to distribute certain transportation funds. These guidelines must clearly outline the policies, standards, and criteria for fund allocation. The commission can change these guidelines after holding a public hearing. Additionally, the guidelines might allow local transportation agencies to use their own money upfront, with approval, and get reimbursed later once allocated funds become available. However, reimbursement only occurs when there are enough funds to cover it.

(a)CA Streets and Highways Code § 2033(a) On or before January 1, 2018, the commission, in cooperation with the department, transportation planning agencies, county transportation commissions, and other local agencies, shall develop guidelines for the allocation of funds pursuant to subdivision (a) of Section 2032.
(b)CA Streets and Highways Code § 2033(b) The guidelines shall be the complete and full statement of the policy, standards, and criteria that the commission intends to use to determine how these funds will be allocated.
(c)CA Streets and Highways Code § 2033(c) The commission may amend the adopted guidelines after conducting at least one public hearing.
(d)CA Streets and Highways Code § 2033(d) The guidelines may include streamlining of project delivery by authorizing local or regional transportation agencies to seek commission approval of a letter of no prejudice that allows the agency to expend its own funds in advance of an allocation of funds by the commission, and to be reimbursed at a later time for eligible expenditures. A letter of no prejudice shall only be available to local or regional transportation agencies for moneys that have been identified for future allocation to the applicant agency. Moneys designated pursuant to subdivision (a) of Section 2032 shall only be reimbursed when there is funding available in an amount sufficient to make the reimbursement.
transportation fund allocation commission guidelines public hearing project delivery streamlining letter of no prejudice local transportation agencies reimbursement procedures funding availability transportation planning county transportation commission collaboration advance fund expenditure funding guidelines development allocation criteria
(Amended by Stats. 2017, Ch. 255, Sec. 5. (AB 135) Effective September 16, 2017.)

Section § 2033.5

Explanation

This section of the law explains that a department within the government uses certain funds to provide grants for local and regional planning. These planning initiatives should support California's state goals, particularly those detailed in regional transportation plan guidelines. The department has to create a guide for these grants, working with various state bodies like the Air Resources Board and the Department of Housing. Importantly, this guide doesn't have to follow the usual procedures of the Administrative Procedure Act, which speeds up its creation process.

The department, from funds made available pursuant to subdivision (f) of Section 2032, shall allocate local planning grants to encourage local and regional planning that furthers state goals, including, but not limited to, the goals and best practices cited in the regional transportation plan guidelines adopted by the commission pursuant to Sections 14522 to 14522.3, inclusive, of the Government Code. The department shall develop a grant guide and shall consult with the State Air Resources Board, the Governor’s Office of Planning and Research, and the Department of Housing and Community Development in the development of the grant guide, and shall provide status reports as it administers these funds. The grant guide shall be exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
local planning grants regional planning state goals transportation plan guidelines State Air Resources Board Governor’s Office of Planning Department of Housing grant guide development Administrative Procedure Act exemption funds allocation state agencies consultation planning best practices California state goals regional transportation status reports
(Amended by Stats. 2017, Ch. 20, Sec. 17. (AB 115) Effective June 27, 2017.)

Section § 2034

Explanation

This law section explains how cities and counties in California can receive funding for projects. They must first submit a list of proposed projects to the commission, and these need to be approved at a public meeting. Cities and counties can also collaborate on projects, which requires them to agree on who will lead and detail each party's contributions.

After project lists are submitted, the commission reports to the Controller, who then allocates funds. If a city or county submits their project list late, funds are held until they're eligible. Funds not distributed after 90 days are reallocated to all eligible cities and counties.

Once funds are used, cities and counties must provide detailed reports on the expenditures. They can also initially use other funds for projects and reimburse these sources once they receive their allocation.

(a)Copy CA Streets and Highways Code § 2034(a)
(1)Copy CA Streets and Highways Code § 2034(a)(1) Before receiving an apportionment of funds under the program pursuant to paragraph (2) of subdivision (h) of Section 2032 from the Controller in a fiscal year, an eligible city or county shall submit to the commission a list of projects proposed to be funded with these funds. Two or more eligible cities, or one or more cities and a county, may propose a project to be jointly funded with these funds. Each city or county that proposes to jointly fund a project shall include its participation in the project in its list of projects submitted to the commission. All projects proposed to receive funding shall be adopted by resolution by the applicable city council or county board of supervisors at a regular public meeting. A proposed jointly funded project shall additionally be endorsed by a memorandum of understanding that is approved by the entities proposing to jointly fund the project and that includes the identity of the project’s lead agency and a description of the individual contributions of each participating city and county to the project. The list of projects proposed to be funded with these funds, including jointly funded projects, shall include a description and the location of each proposed project, a proposed schedule for that project’s completion, and the estimated useful life of the improvement. The project list shall not limit the flexibility of an eligible city or county to fund projects in accordance with local needs and priorities so long as the projects are consistent with subdivision (b) of Section 2030.
(2)CA Streets and Highways Code § 2034(a)(2) The commission shall submit an initial report to the Controller that indicates the cities and counties that have submitted a list of projects as described in this subdivision and that are therefore eligible to receive an apportionment of funds under the program for the applicable fiscal year. If the commission receives a list of projects from a city or county after it submits its initial report to the Controller, the commission shall submit a subsequent report to the Controller that indicates the cities and counties that submitted a list of projects after the commission submitted its initial report.
(3)CA Streets and Highways Code § 2034(a)(3) The Controller, upon receipt of the initial report, shall apportion funds to eligible cities and counties.
(4)Copy CA Streets and Highways Code § 2034(a)(4)
(A)Copy CA Streets and Highways Code § 2034(a)(4)(A) For any city or county that is not included in the initial report submitted to the Controller pursuant to paragraph (2), the Controller shall retain the monthly share of funds that would otherwise be apportioned and distributed to the city or county pursuant to paragraph (3).
(B)CA Streets and Highways Code § 2034(a)(4)(A)(B) If the Controller receives a subsequent report from the commission within 90 days of receiving the initial report from the commission that a city or county has become eligible to receive an apportionment, the Controller shall apportion the funds retained pursuant to subparagraph (A) to the city or county.
(C)CA Streets and Highways Code § 2034(a)(4)(A)(C) The Controller shall reapportion to all eligible cities and counties pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103 any funds that were retained pursuant to subparagraph (A) but that were not apportioned and distributed pursuant to subparagraph (B).
(b)CA Streets and Highways Code § 2034(b) For each fiscal year, each city or county receiving an apportionment of funds shall, upon expending program funds, submit documentation to the commission that details the expenditures of all funds under the program, including a description and location of each completed project, the amount of funds expended on the project, the completion date, if applicable, and the estimated useful life of the improvement. For projects jointly funded pursuant to paragraph (1) of subdivision (a), each participating city and county shall submit to the commission the documentation required pursuant to this subdivision.
(c)CA Streets and Highways Code § 2034(c) Before receiving an apportionment of funds under the program pursuant to paragraph (2) of subdivision (h) of Section 2032, an eligible city or county may expend other funds on eligible projects and may reimburse the source of those other funds when it receives its apportionment from the Controller over one or more years.
project funding submission joint funding projects public meeting approval project list commission report Controller apportionment late project list submission project expenditure documentation fund retention and reapportionment initial report eligible cities and counties reimbursement of other funds lead agency project contribution description project completion schedule
(Amended by Stats. 2021, Ch. 108, Sec. 1. (SB 640) Effective January 1, 2022.)

Section § 2036

Explanation

This section outlines the requirements for cities and counties to retain their eligibility for road funding. They must keep their spending on streets, roads, and highways at least equal to the average amount spent during the 2009-2012 fiscal years. This includes money from flexible sources like vehicle tax but excludes one-time funds. The Controller can ask for spending data and may withhold funds if a city or county doesn't comply, offering a chance for adjustment the following year.

For cities formed after 2009, spending averages are decided from the date of incorporation up to 2015. Special provisions were in place for the 2019-2022 fiscal years, considering decreases in taxable sales or allowing petitioning for adjustments based on hotel tax revenues. The Controller ensures compliance and can audit as needed, with the power to reallocate withheld funds to compliant cities and counties.

(a)CA Streets and Highways Code § 2036(a) Cities and counties shall maintain their existing commitment of local funds for street, road, and highway purposes in order to remain eligible for an allocation or apportionment of funds pursuant to Section 2032.
(b)CA Streets and Highways Code § 2036(b) In order to receive an allocation or apportionment pursuant to Section 2032, the city or county shall annually expend from its general fund for street, road, and highway purposes an amount not less than the annual average of its expenditures from its general fund during the 2009–10, 2010–11, and 2011–12 fiscal years, as reported to the Controller pursuant to Section 2151. For purposes of this subdivision, in calculating a city’s or county’s annual general fund expenditures and its average general fund expenditures for the 2009–10, 2010–11, and 2011–12 fiscal years, any unrestricted funds that the city or county may expend at its discretion, including vehicle in-lieu tax revenues and revenues from fines and forfeitures, expended for street, road, and highway purposes shall be considered expenditures from the general fund. One-time allocations that have been expended for street and highway purposes, but which may not be available on an ongoing basis, including revenue provided under the Teeter Plan Bond Law of 1994 (Chapter 6.6 (commencing with Section 54773) of Part 1 of Division 2 of Title 5 of the Government Code), shall not be considered when calculating a city’s or county’s annual general fund expenditures.
(c)CA Streets and Highways Code § 2036(c) For any city incorporated after July 1, 2009, the Controller shall calculate an annual average expenditure for the period between July 1, 2009, to December 31, 2015, inclusive, that the city was incorporated.
(d)CA Streets and Highways Code § 2036(d) For purposes of subdivision (b), the Controller may request fiscal data from cities and counties in addition to data provided pursuant to Section 2151, for the 2009–10, 2010–11, and 2011–12 fiscal years. Each city and county shall furnish the data to the Controller not later than 120 days after receiving the request. The Controller may withhold payment to cities and counties that do not comply with the request for information or that provide incomplete data.
(e)CA Streets and Highways Code § 2036(e) The Controller may perform audits to ensure compliance with subdivision (b) when deemed necessary.
(1)CA Streets and Highways Code § 2036(e)(1) For any city or county that has not complied with subdivision (b), the Controller shall withhold from its apportionment pursuant to Section 2032 for a fiscal year following an audit an amount up to the amount of funds that the city or county received during the fiscal year that was audited. The amount withheld shall be reapportioned in one annual payment pursuant to paragraph (3).
(2)CA Streets and Highways Code § 2036(e)(2) If the amount to be apportioned pursuant to Section 2032 is less than the amount to be withheld pursuant to paragraph (1), the city or county shall reimburse the state for the difference between the amount withheld and the apportionment that was received during the fiscal year that was audited. If the city or county is ineligible for an apportionment pursuant to Section 2032, the city or county shall reimburse the state in an amount equal to the allocation or apportionment it received in the fiscal year that was audited.
(3)CA Streets and Highways Code § 2036(e)(3) Any funds withheld or returned as a result of a failure to comply with subdivision (b) shall be reallocated or reapportioned to the other counties or cities whose expenditures are in compliance during the fiscal year that the funds are withheld or returned. The reallocation or reapportionment shall be pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103.
(4)CA Streets and Highways Code § 2036(e)(4) The Controller may adopt any rules, regulations, and procedures necessary to carry out the purposes of this section.
(f)CA Streets and Highways Code § 2036(f) If a city or county fails to comply with the requirements of subdivision (b) in a particular fiscal year, the city or county may expend during that fiscal year and the following fiscal year a total amount that is not less than the total amount required to be expended for those fiscal years for purposes of complying with subdivision (b).
(g)CA Streets and Highways Code § 2036(g) For the 2019–20 fiscal year, cities and counties are not required to comply with the annual expenditure requirements set forth in subdivision (b) or (c).
(h)CA Streets and Highways Code § 2036(h) For the 2020–21 fiscal year, the Controller shall adjust the annual expenditure requirements in subdivisions (b) and (c) in proportion to any decrease in taxable sales within the applicable city or county from the 2018–19 fiscal year to the 2019–20 fiscal year. The Controller shall not make an adjustment if taxable sales increased.
(i)CA Streets and Highways Code § 2036(i) For the 2021–22 fiscal year, the Controller shall adjust the annual expenditure requirements in subdivisions (b) and (c) in proportion to any decrease in taxable sales within the applicable city or county from the 2018–19 fiscal year to the 2020–21 fiscal year. The Controller shall not make an adjustment if taxable sales increased.
(j)CA Streets and Highways Code § 2036(j) A city or county may petition the Controller to use transient occupancy tax revenues, in lieu of taxable sales, for purposes of adjusting the calculation in subdivision (i), if transient occupancy tax revenues in the 2018–19 fiscal year exceeded the amount determined in subdivision (b) and the amount of decrease in transient occupancy tax revenues from the 2018–19 fiscal year to the 2020–21 fiscal year exceeds the amount of decrease in sales and use tax revenues from the 2018–19 fiscal year to the 2020–21 fiscal year.
local funding commitment street maintenance funding road maintenance highway funding general fund expenditure Controller audits funding eligibility fiscal compliance spending requirements taxable sales adjustment transient occupancy tax average expenditure calculation allocation withholding audit compliance 2021-22 fiscal adjustment
(Amended by Stats. 2021, Ch. 81, Sec. 20. (AB 149) Effective July 16, 2021.)

Section § 2037

Explanation

If a city or county maintains an average Pavement Condition Index of 80 or higher, they can choose to use their allocated funds on transportation projects that aren't normally permitted under the specific funding program rules.

A city or county may spend its apportionment of funds under the program on transportation priorities other than those allowable pursuant to this chapter if the city’s or county’s average Pavement Condition Index meets or exceeds 80.
Pavement Condition Index transportation funding city budget county budget infrastructure spending road maintenance transportation projects fund allocation flexibility urban development local government discretion transportation priorities funding program public works funding infrastructure priorities municipal planning
(Added by Stats. 2017, Ch. 5, Sec. 36. (SB 1) Effective April 28, 2017.)

Section § 2038

Explanation

This California law section requires public agencies receiving funds for road maintenance and rehabilitation to engage with preapprenticeship training programs. By July 1, 2023, these agencies must adhere to guidelines developed by the California Workforce Development Board. The board will also run a grant program to support preapprenticeship development. Agencies can apply for these grants, often in partnership with others, to advance workforce training, especially for women, minorities, disadvantaged youth, and former inmates in construction trades. The programs must follow specific curricula and coordinate with local apprenticeship initiatives. Grant recipients need to collect and report demographic data about participants, which the board will compile into annual reports for the Legislature, highlighting participant diversity and program outcomes.

(a)CA Streets and Highways Code § 2038(a) The California Workforce Development Board shall develop guidelines for public agencies receiving Road Maintenance and Rehabilitation Account funds to participate in, invest in, or partner with, new or existing preapprenticeship training programs established pursuant to subdivision (e) of Section 14230 of the Unemployment Insurance Code. The department and local agencies that receive Road Maintenance and Rehabilitation Account funds pursuant to this chapter shall, not later than July 1, 2023, follow the guidelines set forth by the board. The board shall also establish a preapprenticeship development and training grant program, beginning January 1, 2019, pursuant to subdivision (e) of Section 14230 of the Unemployment Insurance Code. Local public agencies that receive Road Maintenance and Rehabilitation Account funds pursuant to this chapter are eligible to compete for such grants and may apply in partnership with other agencies and entities, including those with existing preapprenticeship programs. Successful grant applicants shall, to the extent feasible:
(1)CA Streets and Highways Code § 2038(a)(1) Follow the multicraft core curriculum implemented by the State Department of Education for its pilot project with the California Partnership Academies and by the California Workforce Development Board and local boards.
(2)CA Streets and Highways Code § 2038(a)(2) Include a plan for outreach to and retention of women participants in the preapprenticeship program to help increase the representation of women in the building and construction trades.
(3)CA Streets and Highways Code § 2038(a)(3) Include a plan for outreach to and retention of minority participants and underrepresented subgroups in the preapprenticeship program to help increase their representation in the building and construction trades.
(4)CA Streets and Highways Code § 2038(a)(4) Include a plan for outreach to and retention of disadvantaged youth participants in the preapprenticeship program to help increase their employment opportunities in the building and construction trades.
(5)CA Streets and Highways Code § 2038(a)(5) Include a plan for outreach to individuals in the local labor market area and to formerly incarcerated individuals to provide pathways to employment and training.
(6)CA Streets and Highways Code § 2038(a)(6) Coordinate with local state-approved apprenticeship programs, local building trade councils, and to the extent possible the California Conservation Corps and certified community conservation corps, so individuals who have completed these programs have a pathway to continued employment.
(b)CA Streets and Highways Code § 2038(b) As a condition of receiving a grant, grantees shall collect demographic data from participants and shall report this data to the California Workforce Development Board. The California Workforce Development Board shall provide technical assistance to grantees on the manner in which to collect this data. The California Workforce Development Board shall annually report this demographic data to the Legislature, detailing the racial, ethnic, and gender makeup of participants in the grant programs. This report shall include demographic data on participation, completion, and placement.
road maintenance funds preapprenticeship training guidelines for agencies workforce development multicraft core curriculum women in trades minority outreach disadvantaged youth formerly incarcerated employment training partnerships demographic reporting construction trades employment pathways training grants labor market outreach
(Amended by Stats. 2017, Ch. 95, Sec. 16. (SB 103) Effective July 21, 2017.)