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g�-� Legislative Biil Action ............................................................... from the local assistance program of the State in the committee. Staff: Natasha Fooman; Status: Highway Account (SHA). Additionally, it authorizes AsApps, 5/19/04; Positi�m: Support. local agencies, nonprofit entities, metropolitan plan- ning organizations (MPOs), regional transportation ACA 29 (Harman) Tra� �sportation Investment organizations, Native American tribal governments, Fund. ACA 29 would delete a provision in the state community-based organizations, public universities, Constitution allowing for the suspension of a man- local transportation commissions, port authorities, dated transfer of the state's share of gasoline tax airport commissions, and similar entities to apply for revenue from the General Fund to the Transportation and receive grants, which may not exceed $300,000 Investment Fund. This bill was held on the suspense for any single grant. The grants must undertake and will stay in the committee. Staff: Natasha environmental justice and community based transpor- Fooman, Status: AsApps, 5/19/04, Position: Sup- tation projects that are directly or indirectly related to port. the transportation planning process. The League opposes placing the sub accounts PUBLIC SAFETY within the "local assistance program" which would compete with diminishing funds for other critical local AB 2641 (Cox). Prisoners. Local Cost Reim- projects such as seismic bridge retrofit projects which bursements. The League of Califomia Cities have been halted due to loss of local assistance supports AB 2641, which requires the Califomia State monies and pose the potential for catastrophic failure Controller to pay interest upon reimbursement claims of 580 bridges throughout the State. This also comes filed by cities and counties for costs incurred in at a time when cities and counties have seen a connection with state prisons and prisoners. Specifi- significant reduction in other transportation revenues cally, AB 2641 requires the Controller to pay accrued sources they are dependent upon, including $188 interest on claims made by cities and counties for million loss in Proposition 42 monies in 2003-04 and reimbursement of costs connected to state prisons another proposed loss of an equal amount in the next and prisoners, if the payment is made more than 60 budget year. Creating new demands at a time when days after receipt of a reimbursement claim. AB2641 we are facing an ever shrinking pot of revenue is of also specifies that interest shall accrue as of the 61st great concern. day after the receipt of the reimbursement claim at the Pooled Money Investment Account rate. Delayed The League believes that the CBTP and the EJ payment on reimbursement claims related to state programs should not be funded from the "local prisons and prisoners puts a financial burden on assistance program", but through the State Highway already-strapped cities and counties. Under the Account Transportation Planning Funds. According to current system, local officials must incur the costs Caltrans, the CBTP Grant Program is primarily used first, and then file for reimbursement with the Control- to provide "seed funding" for planning activities that ler, a process that can take many months. Smaller encourage livable communities. Staff: Natasha cities are hit particularly hard by delays in reimburse- Fooman; Status: SenTrans, Pending; Position: ment payments, due to their limited tax base and Oppose Unless Amended. resources. AB 2641 will ensure that cities and counties are reimbursed and/or compensated for ACA 24 (Dutra) Transportation Investment costs incurred in connection with state prisons and Fund: Loans. ACA 24 would take the first steps in prisoners. Staff: Natasha Fooman; Status: protecting Proposition 42 monies to ensure that they AsApps; Position: Support. are utilized as the voters intended for transportation purposes. This measure would require any loans of these funds to be repaid with interest synonymous with the manner in which Article XIX of the California Constitution protects other critical transportation funds. This bill was held on the suspense and will stay Visit the League's Official Web Site--www.cacities.org PRIORITY FOCUS/PAGE 7