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California Revenue and Taxation Code Section 7104.2

Legal Research Home > California Laws > Revenue and Taxation Code > California Revenue and Taxation Code Section 7104.2

7104.2.  (a) The Transportation Investment Fund (hereafter the fund)
in the State Treasury is hereby continued in existence. All revenues
transferred to the fund pursuant to Article XIX B of the California
Constitution beginning with the 2008-09 fiscal year shall be
available for expenditure as provided in this section.
Notwithstanding Section 13340 of the Government Code or any other
provision of law, moneys in the fund are continuously appropriated
without regard to fiscal years for disbursement in the manner and for
the purposes set forth in this section.
   (b) All of the following shall occur on a quarterly basis:
   (1) The State Board of Equalization, in consultation with the
Department of Finance, shall estimate the amount that is transferred
to the General Fund under subdivision (b) of Section 7102 that is
attributable to revenue collected for the sale, storage, use, or
other consumption in this state of motor vehicle fuel, as defined in
Section 7326.
   (2) The State Board of Equalization shall inform the Controller,
in writing, of the amount estimated under paragraph (1).
   (3) Commencing with the 2008-09 fiscal year, the Controller shall
transfer the amount estimated under paragraph (1) from the General
Fund to the fund.
   (c) For each quarter, commencing with the 2008-09 fiscal year, the
Controller shall make all of the following transfers and
apportionments from the fund:
   (1) To the Public Transportation Account, a trust fund in the
State Transportation Fund, 20 percent of the revenues deposited in
the fund. Funds transferred under this paragraph shall be made
available as follows:
   (A) Twenty-five percent for purposes of Section 99315 of the
Public Utilities Code, subject to appropriation by the Legislature.
   (B) Thirty-seven and one-half percent to the Controller, for
allocation pursuant to Section 99314 of the Public Utilities Code.
Funds allocated under this subparagraph shall be subject to all of
the provisions governing funds allocated under Section 99314 of the
Public Utilities Code. These funds are continuously appropriated to
the Controller for purposes of this subparagraph.
   (C) Thirty-seven and one-half percent to the Controller, for
allocation pursuant to Section 99313 of the Public Utilities Code.
Funds allocated under this subparagraph shall be subject to all of
the provisions governing funds allocated under Section 99313 of the
Public Utilities Code. These funds are continuously appropriated to
the Controller for purposes of this subparagraph.
   (D) Notwithstanding subparagraphs (A), (B), and (C), for the
2009-10 to 2012-13 fiscal years, inclusive, all funds transferred
under this paragraph shall be made available only for purposes of
Section 99315 of the Public Utilities Code, subject to appropriation
by the Legislature.
   (2) To the Department of Transportation for expenditure for
transportation capital improvement projects subject to all of the
rules governing the State Transportation Improvement Program, 40
percent of the revenues deposited in the fund.
   (3) To the Controller for apportionment pursuant to subparagraphs
(A) and (B), 40 percent of the revenues deposited in the fund.
   (A) Of the amount available under this paragraph, 50 percent shall
be apportioned by the Controller to the counties, including a city
and county, in accordance with the following formulas:
   (i) Seventy-five percent of the funds payable under this
subparagraph shall be apportioned among the counties in the
proportion that the number of fee-paid and exempt vehicles that are
registered in the county bears to the number of fee-paid and exempt
vehicles registered in the state.
   (ii) Twenty-five percent of the funds payable under this
subparagraph shall be apportioned among the counties in the
proportion that the number of miles of maintained county roads in
each county bears to the total number of miles of maintained county
roads in the state. For the purposes of apportioning funds under this
subparagraph, any roads within the boundaries of a city and county
that are not state highways shall be deemed to be county roads.
   (B) Of the amount available under this paragraph, 50 percent shall
be apportioned by the Controller to cities, including a city and
county, in the proportion that the total population of the city bears
to the total population of all the cities in the state.
   (d) Funds received under subparagraph (A) or (B) of paragraph (3)
of subdivision (c) shall be deposited as follows in order to avoid
the commingling of those funds with other local funds:
   (1) In the case of a city, into the city account that is
designated for the receipt of state funds allocated for
transportation purposes.
   (2) In the case of a county, into the county road fund.
   (3) In the case of a city and county, into a local account that is
designated for the receipt of state funds allocated for
transportation purposes.
   (e) Funds allocated to a city, county, or city and county under
subparagraph (A) or (B) of paragraph (3) of subdivision (c) shall be
used only for street and highway maintenance, rehabilitation,
reconstruction, and storm damage repair. For purposes of this
section, the following terms have the following meanings:
   (1) "Maintenance" means either or both of the following:
   (A) Patching.
   (B) Overlay and sealing.
   (2) "Reconstruction" includes any overlay, sealing, or widening of
the roadway, if the widening is necessary to bring the roadway width
to the desirable minimum width consistent with the geometric design
criteria of the department for 3R (reconstruction, resurfacing, and
rehabilitation) projects that are not on a freeway, but does not
include widening for the purpose of increasing the traffic capacity
of a street or highway.
   (3) "Storm damage repair" is repair or reconstruction of local
streets and highways and related drainage improvements that have been
damaged due to winter storms and flooding, and construction of
drainage improvements to mitigate future roadway flooding and damage
problems, in those jurisdictions that have been declared disaster
areas by the President of the United States, where the costs of those
repairs are ineligible for emergency funding with Federal Emergency
Relief (ER) funds or Federal Emergency Management Administration
(FEMA) funds.
   (f) (1) Cities and counties shall maintain their existing
commitment of local funds for street and highway maintenance,
rehabilitation, reconstruction, and storm damage repair in order to
remain eligible for the allocation of funds pursuant to subparagraph
(A) or (B) of paragraph (3) of subdivision (c).
   (2) In order to receive any allocation pursuant to subparagraph
(A) or (B) of paragraph (3) of subdivision (c), 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 1996-97, 1997-98, and
1998-99 fiscal years, as reported to the Controller pursuant to
Section 2151 of the Streets and Highways Code. For purposes of this
paragraph, in calculating a city's or county's annual general fund
expenditures and its average general fund expenditures for the
1996-97, 1997-98, and 1998-99 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 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),
may not be considered when calculating a city's or county's annual
general fund expenditures.
   (3) For any city incorporated after July 1, 1996, the Controller
shall calculate an annual average of expenditure for the period
between July 1, 1996, and December 31, 2000, inclusive, that the city
was incorporated.
   (4) For purposes of paragraph (2), the Controller may request
fiscal data from cities and counties in addition to data provided
pursuant to Section 2151, for the 1996-97, 1997-98, and 1998-99
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.
   (5) The Controller may perform audits to ensure compliance with
paragraph (2) when deemed necessary. Any city or county that has not
complied with paragraph (2) shall reimburse the state for the funds
it received during that fiscal year. Any funds withheld or returned
as a result of a failure to comply with paragraph (2) shall be
reallocated to the other counties and cities whose expenditures are
in compliance.
   (6) If a city or county fails to comply with the requirements of
paragraph (2) 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 paragraph (2).
   (7) The allocation made under subparagraph (A) or (B) of paragraph
(3) of subdivision (c) shall be expended not later than the end of
the fiscal year following the fiscal year in which the allocation was
made, and any funds not expended within that period shall be
returned to the Controller and shall be reallocated to the other
cities and counties pursuant to the allocation formulas set forth in
subparagraph (A) or (B) of paragraph (3) of subdivision (c).
   (g) For the purpose of allocating funds under subparagraph (A) or
(B) of paragraph (3) of subdivision (c) to counties, cities, and a
city and county, the Controller shall use the most recent population
estimates prepared by the Demographic Research Unit of the Department
of Finance. For a city that incorporated after January 1, 2008, that
does not appear on the most recent population estimates prepared by
the Demographic Research Unit, the Controller shall use the
population determined for that city under Section 11005.3.
   (h) (1) Notwithstanding any other law, the quarterly
apportionments scheduled to be made in October 2009 and January 2010
pursuant to paragraph (3) of subdivision (c) shall be suspended and
deferred until May 31, 2010.
   (2) For the purpose of meeting the cash obligations associated
with ongoing budgeted costs, a city or county may make use of any
cash balance in its city or county road fund, including that
resulting from the receipt of funds pursuant to the Highway Safety,
Traffic Reduction, Air Quality, and Port Security Bond Act of 2006
(Chapter 12.49 (commencing with Section 8879.20) of Division 1 of
Title 2 of the Government Code (hereafter bond act)) for local street
and road maintenance, during the period of this suspension, without
the use of this cash being reflected as an expenditure of bond act
funds, provided the cash is replaced once this suspension is repaid.
Nothing in this paragraph shall change the fact that expenditures
must be accrued and reflected from the appropriate funding sources
for which the moneys were received and meet all requirements of those
funding sources.
   (i) Notwithstanding any other provision of law, the Controller may
use the funds in the Transportation Investment Fund for cashflow
loans to the General Fund as provided in Sections 16310 and 16381 of
the Government Code. Any such loan shall be exempt from paragraph (2)
of subdivision (b) of Section 16310 of the Government Code. Interest
shall be paid on all moneys loaned to the General Fund and shall be
computed at a rate determined by the Pooled Money Investment Board to
be the current earning rate of the fund from which the money is
loaned. This subdivision does not authorize any transfer that would
interfere with the carrying out of the object for which these funds
were created.

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Last modified: March 17, 2014