2100-2128.1
STREETS AND HIGHWAYS CODE
SECTION 2100-2128.1
2100. The Highway Users Tax Fund is continued in existence as the
Highway Users Tax Account in the Transportation Tax Fund.
Any reference in any law or regulation to the Highway Users Tax
Fund shall be deemed to refer to the Highway Users Tax Account in the
Transportation Tax Fund.
2101. All moneys in the Highway Users Tax Account in the
Transportation Tax Fund and hereafter received in the account are
appropriated for all of the following:
(a) The research, planning, construction, improvement,
maintenance, and operation of public streets and highways (and their
related public facilities for nonmotorized traffic), including the
mitigation of their environmental effects, the payment for property
taken or damaged for such purposes, and the administrative costs
necessarily incurred in the foregoing purposes.
(b) The research and planning for exclusive public mass transit
guideways (and their related fixed facilities), the payment for
property taken or damaged for such purposes, and the administrative
costs necessarily incurred in the foregoing purposes.
(c) The construction and improvement of exclusive public mass
transit guideways (and their related fixed facilities), including the
mitigation of their environmental effects, the payment for property
taken or damaged for such purposes, the administrative costs
necessarily incurred in the foregoing purposes, and the maintenance
of the structures and the immediate right-of-way for the public mass
transit guideways, but excluding the maintenance and operating costs
for mass transit power systems and mass transit passenger facilities,
vehicles, equipment, and services, in any area where the voters
thereof have approved a proposition pursuant to Section 4 of Article
XIX of the California Constitution.
(d) The payment of principal and interest on voter-approved bonds
issued for the purposes specified in subdivision (c).
2102. Net revenue derived from a tax means the amount of revenue
derived from a tax that is deposited into the Highway Users Tax
Account in the Transportation Tax Fund.
2103. (a) Of the net revenues deposited to the credit of the
Highway Users Tax Account that are derived from the increases in the
rates of taxes that are imposed pursuant to subdivision (b) of
Section 7360 and Section 7361.1 of the Revenue and Taxation Code, all
of the following shall occur on a monthly basis:
(1) (A) By the 15th day of every month, the Treasurer's office, in
consultation with the Department of Finance, shall notify the
Controller of the amount of debt service that will be paid on each
transportation bond during that month.
(B) Within two business days following the 28th day of each month,
the Controller shall transfer to the Transportation Debt Service
Fund an amount equal to the amount of monthly debt service paid by
the General Fund on any bonds issued pursuant to the Seismic Retrofit
Bond Act of 1996 (Chapter 12.48 (commencing with Section 8879) of
Division 1 of Title 2 of the Government Code) or any other highway
bonds, and three-quarters of the amount of monthly debt service paid
on any bonds issued 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) for
reimbursement of the General Fund for these costs. If revenues
available pursuant to this subdivision in any given month are
insufficient to fully reimburse the General Fund for the debt service
payments made, the first revenues available pursuant to this
subdivision in the following month or months shall be transferred to
the Transportation Debt Service Fund so that all debt service
payments made on these bonds from the General Fund in a given fiscal
year are fully reimbursed.
(2) In the 2010-11 fiscal year, after the monthly transfer made
pursuant to paragraph (1), the sum of fifty-four million one hundred
sixty-seven thousand dollars ($54,167,000) per month shall be held in
the account for future appropriation by the Legislature.
(3) The Controller shall transfer any remaining net revenues
subject to this subdivision as follows:
(A) Forty-four percent shall be transferred to the State Highway
Account to fund projects in the State Transportation Improvement
Program that are consistent with Section 1 of Article XIX of the
California Constitution, except in the 2010-11 fiscal year, 50
percent shall be transferred for purposes of this subparagraph.
(B) Twelve percent shall be transferred to the State Highway
Account to fund projects in the State Highway Operation and
Protection Program, except in the 2010-11 fiscal year, no revenues
shall be transferred for purposes of this subparagraph.
(C) Forty-four percent shall be apportioned by the Controller for
local street and road purposes, except in the 2010-11 fiscal year, 50
percent shall be transferred for purposes of this subparagraph as
follows:
(i) Fifty 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.
(ii) Fifty percent shall be apportioned by the Controller to
counties, including a city and county, in accordance with the
following formulas:
(I) Seventy-five percent shall be apportioned among the counties
in the proportion that the number of fee-paid and exempt vehicles
that are registered in the county bear to the number of fee-paid and
exempt vehicles registered in the state.
(II) Twenty-five percent shall be apportioned among the counties
in the proportion that the number of miles of maintained county roads
in each county bear 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) After the transfers or other actions pursuant to subdivision
(a), at least 90 percent of the balance deposited to the credit of
the Highway Users Tax Account in the Transportation Tax Fund by the
28th day of each month shall be apportioned or transferred, as
applicable, by the Controller by the second working day thereafter,
except for June, in which case the apportionment or transfer shall be
made the same day. These apportionments or transfers shall be made
as provided for in Sections 2104 to 2122, inclusive. If information
is not available to make the apportionment or transfer as required,
the apportionment or transfer shall be made on the basis of the
information of the previous month. Amounts not apportioned or
transferred shall be included in the apportionment or transfer of the
subsequent month.
2103.1. (a) Notwithstanding any other law, the apportionment of
revenues deposited to the credit of the Highway Users Tax Account in
the Transportation Tax Fund that are otherwise required to be made,
pursuant to this chapter, to cities, counties, and cities and
counties for the following months shall be deferred and shall be made
as follows:
(1) For the months of July and August of 2009, the apportionments
shall be paid with the payment of August revenues in September 2009.
This deferral shall not apply to a county with a population of less
than 40,000.
(2) For the months of November and December of 2009, and January,
February, and March of 2010, the apportionments shall be paid on or
within two business days of April 28, 2010. This deferral shall not
apply to a county with a population of less than 40,000.
(3) (A) For the months of July, August, September, October,
November, and December 2010, and January, February, and March 2011,
no more than fifty million dollars ($50,000,000) for each month shall
be deferred on a pro rata basis, as determined by the Controller,
from all allocations to cities, counties, and cities and counties
from the Highway Users Tax Account. The balance of unpaid
apportionments for these months shall be paid on or within two
business days of April 28, 2011. The state shall not defer any
payments to a county with a population less than 50,000, or a city
within a county with a population less than 50,000.
(B) A city may request an exemption from all or a portion of the
deferral in subparagraph (A) if the deferral will create a hardship
in making required bond debt payments. The request must be received
not less than 30 days prior to the date of the monthly payment that
is the subject of the city's request and that otherwise is subject to
deferral. The Director of Finance shall determine if the exemption
is necessary, and the exemption shall be approved or denied at his or
her sole discretion.
(C) A city requesting an exemption pursuant to subparagraph (B)
shall provide all of the following documentation:
(i) Month-by-month expected payments from the Highway Users Tax
Account.
(ii) The timing and amount of the required bond payments.
(iii) Evidence that the deferral of payments from the Highway
Users Tax Account will result in the inability of the city to meet
bond payments specified in clause (ii).
(b) For the purpose of meeting the cash obligations associated
with ongoing budgeted costs, a city, county, or city and county may
borrow from its account that is designated for the receipt of state
funds allocated for local streets and roads or the 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) and apply the proceeds
of the borrowing to local street and road maintenance and operations,
during the period of the deferrals of apportionment payments
pursuant to subdivision (a). Any borrowing from funds that is
disbursed by the Controller's office on or after March 1, 2010, shall
be repaid with interest, computed at the current average rate of
interest earned by the local agency with respect to amounts on
deposit in the account from which the borrowing occurs, as determined
by the local agency, within the fiscal year in which the borrowing
initially occurs. Interest that is repaid on amounts borrowed
pursuant to this subdivision shall be applied by the local agency for
the purposes set forth in the Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006. The use of this cash
shall not be considered as an expenditure of bond act funds if the
cash is replaced when the payments in subdivision (a) are made.
(c) Notwithstanding any other provision of law, for the purpose of
meeting the cash obligations associated with ongoing street and road
costs, a city, county, or city and county may make use of any cash
balance available to a special fund of the city, county, or city and
county during the period of deferral of apportionment payments
pursuant to subdivision (a).
(d) This section shall not affect any requirement that an
expenditure is required to be accrued and reflected from the
appropriate funding source for which the money was received and that
an expenditure is required to meet all the requirements of its
funding source.
2104. A sum equal to the net revenue derived from a per gallon tax
of 2.035 cents ($0.02035) under the Motor Vehicle Fuel License Tax
Law (Part 2 (commencing with Section 7301) of Division 2), 1.80 cents
($0.0180) under the Use Fuel Tax Law (Part 3 (commencing with
Section 8601) of Division 2), and 1.80 cents ($0.0180) under the
Diesel Fuel Tax Law (Part 31 (commencing with Section 60001) of
Division 2) of the Revenue and Taxation Code, shall be apportioned
among the counties, as follows:
(a) Each county shall be paid one thousand six hundred sixty-seven
dollars ($1,667) during each calendar month, which amount shall be
expended exclusively for engineering costs and administrative
expenses with respect to county roads.
(b) A sum equal to the total of all reimbursable snow removal or
snow grooming, or both, costs filed pursuant to subdivision (d) of
Section 2152, or seven million dollars ($7,000,000), whichever is
less, shall be apportioned in 12 approximately equal monthly
apportionments for snow removal or snow grooming, or both, on county
roads, as provided in Section 2110.
(c) A sum equal to five hundred thousand dollars ($500,000) shall
be apportioned in 12 approximately equal monthly apportionments, as
provided in Section 2110.5.
(d) (1) Seventy-five percent of the funds payable under this
section shall be apportioned among the counties monthly in the
respective proportions that the number of fee-paid and exempt
vehicles which are registered in each county bears to the total
number of fee-paid and exempt vehicles registered in the state.
(2) For purposes of apportionment under this subdivision, the
Department of Motor Vehicles shall, as soon as possible after the
last day of each calendar month, furnish to the Controller a verified
statement showing the number of fee-paid and exempt vehicles which
are registered in each county and in the state as of the last day of
each calendar month as reflected by the records of the Department of
Motor Vehicles.
(e) Of the remaining money payable, there shall be paid to each
eligible county an amount that is computed monthly as follows: The
number of miles of maintained county roads in each county shall be
multiplied by sixty dollars ($60); from the resultant amount, there
shall be deducted the amount received by each county under
subdivision (d) and the remainder, if any, shall be paid to each
county.
(f) The remaining money payable, after the foregoing
apportionments, shall be apportioned among the counties in the same
proportion as the money referred to in subdivision (d).
(g) (1) Transfers of revenues from the Highway Users Tax Account
to counties pursuant to this section collected during the months of
March, April, May, June, and July of 2008, shall be made with the
transfer of August 2008 revenues in September of 2008. This
suspension shall not apply to a county with a population of less than
40,000.
(2) For the purpose of meeting the cash obligations associated
with ongoing budgeted costs, a county may make use of any cash
balance in its 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 streets and roads
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 in
September of 2008. Counties may accrue the revenue received in
September 2008 as repayment of these suspensions for the months of
April, May, and June of 2008 back to the 2007-08 fiscal year. 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 the requirements of those
funding sources.
(h) (1) The transfer of revenues from the Highway Users Tax
Account to counties pursuant to this section that are collected
during the months of January, February, and March 2009, shall be made
with the transfer of April 2009 revenues in May 2009.
(2) For the purpose of meeting the cash obligations associated
with ongoing budgeted costs, a county may make use of any cash
balance in its 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 (bond act)) for local streets and roads maintenance
during the period of this suspension, provided the cash is replaced
once this suspension is repaid in May of 2009.
(3) This subdivision shall not affect any requirement that an
expenditure is required to be accrued and reflected from the
appropriate funding source for which the money was received and to
meet all the requirements of its funding source.
2104.1. The Controller shall deduct annually, from the amount
apportioned pursuant to Section 2104, the amount identified as
applicable to counties in the report submitted in the preceding
fiscal year pursuant to Section 191, and shall transfer the amount to
the State Highway Account.
2105. In addition to the apportionments prescribed by Sections
2104, 2106, and 2107, from the revenues derived from a per gallon tax
imposed pursuant to Section 7360 of the Revenue and Taxation Code,
and a per gallon tax imposed pursuant to Section 8651 of the Revenue
and Taxation Code, and a per gallon tax imposed pursuant to Sections
60050 and 60115 of the Revenue and Taxation Code, the following
apportionments shall be made:
(a) A sum equal to 1.035 cents ($0.01035) per gallon from the tax
under Section 7360 of the Revenue and Taxation Code, 11.5 percent of
any per gallon tax in excess of nine cents ($0.09) per gallon under
Section 8651 of the Revenue and Taxation Code, and 1.035 cents
($0.01035) per gallon from the tax under Sections 60050 and 60115 of
the Revenue and Taxation Code, shall be apportioned among the
counties, including a city and county.
The amount of apportionment to each county, including a city and
county, during a fiscal year shall be calculated as follows:
(1) One million dollars ($1,000,000) for apportionment to all
counties, including a city and county, in proportion to each county's
receipts during the prior fiscal year under Sections 2104 and 2106.
(2) One million dollars ($1,000,000) for apportionment to all
counties, including a city and county, as follows:
(A) Seventy-five percent in the proportion that the number of
fee-paid and exempt vehicles which are registered in the county bears
to the number of fee-paid and exempt vehicles registered in the
state.
(B) Twenty-five percent in the proportion that the number of miles
of maintained county roads in the county bears to the miles of
maintained county roads in the state.
(3) For each county, determine its factor which is the higher
amount calculated pursuant to paragraph (1) or (2) divided by the sum
of the higher amounts for all of the counties.
(4) The amount to be apportioned to each county is equal to its
factor multiplied by the amount available for apportionment.
(b) A sum equal to 1.035 cents ($0.01035) per gallon from the tax
under Section 7360 of the Revenue and Taxation Code, 11.5 percent of
any per gallon tax in excess of nine cents ($0.09) per gallon under
Section 8651 of the Revenue and Taxation Code, and 1.035 cents
($0.01035) per gallon from the tax under Sections 60050 and 60115 of
the Revenue and Taxation Code, shall be apportioned 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.
(c) (1) Transfers of revenues from the Highway Users Tax Account
to counties or cities pursuant to this section collected during the
months of March, April, May, June, and July of 2008, shall be made
with the transfer of August 2008 revenues in September of 2008. This
suspension shall not apply to a county with a population of less than
40,000.
(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 the city account that is designated for the receipt
of state funds allocated for local streets and roads or the 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 streets and roads 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 in September of 2008.
Counties and cities may accrue the revenue received in September 2008
as repayment of these suspensions for the months of April, May, and
June of 2008 back to the 2007-08 fiscal year. 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 the requirements of those funding sources.
(d) (1) The transfer of revenues from the Highway Users Tax
Account to counties or cities pursuant to this section collected
during the months of January, February, and March 2009 shall be made
with the transfer of April 2009 revenues in May 2009.
(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 the city account that is designated for the receipt
of state funds allocated for local streets and roads or the 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
(bond act)) for local streets and roads maintenance, during the
period of this suspension, and the use of this cash shall not be
considered as an expenditure of bond act funds, if the cash is
replaced when the payments that are suspended pursuant to this
subdivision are repaid in May 2009.
(3) This subdivision shall not affect any requirement that an
expenditure is required to be accrued and reflected from the
appropriate funding source for which the money was received and to
meet all the requirements of its funding source.
2106. A sum equal to the net revenue derived from one and four
one-hundredths cent ($0.0104) per gallon tax under the Motor Vehicle
Fuel License Tax Law (Part 2 (commencing with Section 7301) of
Division 2 of the Revenue and Taxation Code) shall be apportioned
monthly from the Highway Users Tax Account in the Transportation Tax
Fund among the counties and cities as follows:
(a) Four hundred dollars ($400) per month shall be apportioned to
each city and city and county and eight hundred dollars ($800) per
month shall be apportioned to each county and city and county.
(b) Commencing on July 31, 2007, and on the last day of each month
after that date, the sum of six hundred thousand dollars ($600,000)
per month shall be transferred to the Bicycle Transportation Account
in the State Transportation Fund.
(c) The balance shall be apportioned, as follows:
(1) A base sum shall be computed for each county by using the same
proportions of fee-paid and exempt vehicles as are established for
purposes of apportionment of funds under subdivision (d) of Section
2104.
(2) For each county, the percentage of the total assessed
valuation of tangible property subject to local tax levies within the
county which is represented by the assessed valuation of tangible
property outside the incorporated cities of the county shall be
applied to its base sum, and the resulting amount shall be
apportioned to the county. The assessed valuation of taxable tangible
property, for purposes of this computation, shall be that most
recently used for countywide tax levies as reported to the Controller
by the State Board of Equalization. If an incorporation or
annexation is legally completed following the base sum computation,
the new city's assessed valuation shall be deducted from the county's
assessed valuation, the estimate of which may be provided by the
State Board of Equalization.
(3) The difference between the base sum for each county and the
amount apportioned to the county shall be apportioned to the cities
of that county in the proportion that the population of each city
bears to the total population of all the cities in the county.
Populations used for determining apportionment of money under Section
2107 are to be used for purposes of this section.
(d) (1) Transfers of revenues from the Highway Users Tax Account
to counties or cities pursuant to this section collected during the
months of March, April, May, June, and July of 2008, shall be made
with the transfer of August 2008 revenues in September of 2008. This
suspension shall not apply to a county with a population of less than
40,000.
(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 the city account that is designated for the receipt
of state funds allocated for local streets and roads or the 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 streets and roads 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 in September of 2008.
Counties and cities may accrue the revenue received in September 2008
as repayment of these suspensions for the months of April, May, and
June of 2008 back to the 2007-08 fiscal year. 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 the requirements of those funding sources.
(e) (1) The transfer of revenues from the Highway Users Tax
Account to counties or cities pursuant to this section collected
during the months of January, February, and March 2009, shall be made
with the transfer of April 2009 revenues in May 2009.
(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 the city account that is designated for the receipt
of state funds allocated for local streets and roads or the 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
(bond act)) for local streets and roads maintenance, during the
period of this suspension, and the use of this cash shall not be
considered as an expenditure of bond act funds, if the cash is
replaced when the payments that are suspended pursuant to this
subdivision are repaid in May 2009.
(3) This subdivision shall not affect any requirement that an
expenditure is required to be accrued and reflected from the
appropriate funding source for which the money was received and to
meet all the requirements of its funding source.
2106.3. If Los Angeles County elects to allocate any portion of the
revenues it receives pursuant to Section 2104 or 2106 to the cities
within the county under any program in which those revenues are
allocated to at least 70 percent of the cities, it shall make
allocations to each city within the county based on the two following
equally weighted factors:
(1) The population of the city to the total population of all the
cities in the county.
(2) The city street mileage to the total street mileage of all the
cities in the county, as determined from the county master plan.
2106.4. From funds apportioned to the County of Los Angeles
pursuant to Sections 2104, 2105, and 2106, or from other
transportation funds available to the county, or from any combination
of those funds, as determined by the county, the county shall,
beginning in the 1996-97 fiscal year, commence the annual transfer to
the Los Angeles County Metropolitan Transportation Authority of
funds in an amount calculated to amortize, in equal annual
installments over a 5-year period, the amount by which fiscal
realignment revenues deposited in the county general fund exceed
fifty million dollars ($50,000,000). The highest priority for the use
of the remaining funds apportioned to the county pursuant to this
chapter shall be for safety and for maintenance of county facilities
in urban areas with the highest backlog of maintenance and
rehabilitation needs.
2106.5. (a) Each county and any of its incorporated cities may
enter into an agreement regarding the base sum established by
paragraph (1) of subdivision (c) of Section 2106, providing for
expenditure of the amounts apportioned to the county and apportioned
for expenditure within the cities participating in the agreement upon
road and streets within the county and the cities participating in
the agreement.
(b) Any of the incorporated cities within a county may enter into
an agreement among themselves regarding the amount apportioned to
them pursuant to paragraph (3) of subdivision (c) of Section 2106 for
expenditure upon city streets within the cities participating in the
agreement.
(c) Any such agreement shall be filed with the State Controller.
After verification of the agreement by the State Controller, the
State Controller shall make disposition of the apportionments to the
parties participating in the agreement in accordance with terms of
the agreement.
2107. (a) A sum equal to the net revenues derived from a per gallon
tax of 1.315 cents ($0.01315) under the Motor Vehicle Fuel License
Tax Law (Part 2 (commencing with Section 7301) of Division 2), 2.59
cents ($0.0259) under the Use Fuel Tax Law (Part 3 (commencing with
Section 8601) of Division 2), and 1.80 cents ($0.0180) under the
Diesel Fuel Tax Law (Part 31 (commencing with Section 60001) of
Division 2) of the Revenue and Taxation Code, shall be apportioned
monthly to the cities and cities and counties of this state from the
Highway Users Tax Account in the Transportation Tax Fund as provided
in this section.
(b) From the sum determined pursuant to subdivision (a), the
Controller shall allocate annually to each city that has filed a
report containing the information prescribed by subdivision (c) of
Section 2152, and that had expenditures in excess of five thousand
dollars ($5,000) during the preceding fiscal year for snow removal,
an amount equal to one-half of the amount of its expenditures for
snow removal in excess of five thousand dollars ($5,000) during that
fiscal year.
(c) The balance of the sum determined pursuant to subdivision (a)
from the Highway Users Tax Account shall be allocated to each city,
including city and county, in the proportion that the total
population of the city bears to the total population of all the
cities in this state.
(d) (1) For the purpose of this section, except as otherwise
provided in paragraph (2), the population in each city is the
population determined for that city in the manner specified in
Section 11005.3 of the Revenue and Taxation Code.
(2) Commencing with the ninth fiscal year of a city described in
subdivision (a) of Section 11005.3 of the Revenue and Taxation Code,
the sixth fiscal year of a city described in subdivision (b) of
Section 11005.3 of the Revenue and Taxation Code, and the 61st month
of the city described in subdivision (c) of Section 11005.3 of the
Revenue and Taxation Code, the population in each city is the actual
population of that city, as defined in subdivision (e) of Section
11005.3 of the Revenue and Taxation Code.
(e) (1) Transfers of revenues from the Highway Users Tax Account
to cities pursuant to this section collected during the months of
March, April, May, June, and July of 2008, shall be made with the
transfer of August 2008 revenues in September of 2008.
(2) For the purpose of meeting the cash obligations associated
with ongoing budgeted costs, a city may make use of any cash balance
in the city account that is designated for the receipt of state funds
allocated for local streets and roads, 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 streets and roads
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 in
September of 2008. Cities may accrue the revenue received in
September 2008 as repayment of these suspensions for the months of
April, May, and June of 2008 back to the 2007-08 fiscal year. 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 the requirements of those
funding sources.
(f) (1) A transfer of revenues from the Highway Users Tax Account
to cities pursuant to this section collected during the months of
January, February, and March 2009, shall be made with the transfer of
April 2009 revenues in May 2009.
(2) For the purpose of meeting the cash obligations associated
with ongoing budgeted costs, a city may make use of any cash balance
in the city account that is designated for the receipt of state funds
allocated for local streets and roads, 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 (bond act)) for local streets and roads
maintenance, during the period of this suspension, and the use of
this cash shall not be reflected as an expenditure of bond act funds,
if the cash is replaced once this suspension is repaid in May 2009.
(3) This subdivision shall not affect any requirement that an
expenditure is required to be accrued and reflected from the
appropriate funding sources for which the moneys were received and to
meet all the requirements of those funding sources.
2107.1. Any city or city and county may apply to the United States
Bureau of Census to determine its population. Upon receipt from the
bureau of its determination of population, the city or city and
county may, at its option, file a certified copy of the determination
with the Controller.
All apportionments made under Section 2107 and all payments under
Section 11005 of the Revenue and Taxation Code for any apportionment
made beginning with the month following the filing of the
determination shall be based upon the population so determined until
such time as a subsequent determination is made by the bureau and a
certified copy is filed by the city or city and county with the
Controller or a certified copy of a subsequent estimate or census
result validated by the Department of Finance is filed with the
Controller as provided in Section 2107.2. For the purposes of this
section, a written or telegraphic certification from the Director of
the Census to the Controller of the determination of population may
be accepted by the Controller in lieu of the filing by the city or
city and county of the certified copy of the determination.
The cost of any determination by the United States Bureau of
Census or by the Department of Finance is a proper charge against the
city or city and county applying therefor and shall be paid by it to
the bureau or to the department.
This section does not apply to counties.
2107.2. Any city or city and county may apply to the population
research unit of the Department of Finance to estimate its population
or the population of any inhabited territory annexed to the city
subsequent to the last federal or state census validated by the
population research unit of the Department of Finance. The department
may make the estimate if in the opinion of the department there is
available adequate information upon which to base the estimate. The
department may develop or contract for the development of additional
information if, in the opinion of the department, additional
information may make an estimate feasible. Not less than 25 days nor
more than 30 days after the completion of the estimate, the
Department of Finance shall file a certified copy thereof with the
Controller if the estimate is greater than the current certified
population.
All apportionments under Section 2107 and all payments under
Section 11005 of the Revenue and Taxation Code for any apportionment
made beginning with the month following the filing of the estimate
shall be based upon the population so estimated until a subsequent
estimate is made by the department and a certified copy is filed with
the Controller or a subsequent determination is made by the United
States Bureau of the Census and a certified copy is filed by the city
or city and county with the Controller as provided in Section
2107.1.
The Department of Finance may assess a reasonable charge, not to
exceed the actual cost thereof, for the preparation of population
estimates pursuant to this section, which is a proper charge against
the city or city and county applying therefor. The amount received
shall be deposited in the State Treasury as a reimbursement to be
credited to the appropriation from which the expenditure is made.
No more than one estimate of its total population shall be filed
each fiscal year for each city or city and county.
As of May 1, 1988, any population estimate prepared by the
Department of Finance pursuant to Section 2227 of the Revenue and
Taxation Code may be used for all purposes of this section unless a
written request not to certify is received by the department from the
city or city and county within 25 days of completion of the
estimate.
2107.3. The incorporation of a new city, or any annexation or
exclusion of territory to or from an existing city, shall be
considered for the purpose of apportionment of funds pursuant to
Section 2107. The revenue shall be apportioned among the cities
monthly as revenues are received in the Highway Users Tax Fund. Any
newly incorporated city or any increase in population due to
annexation shall be included in the monthly apportionment following
such incorporation or annexation.
In the event of the disincorporation of a city, or in the event
the incorporation of a city is adjudged invalid, any funds
apportioned pursuant to Section 2107 to such city, but which are
unexpended, shall revert to the Highway Users Tax Fund and shall be
reapportioned to all other cities and cities and counties pursuant to
Section 2107.
The Controller shall not be required to reapportion funds
previously apportioned for expenditure in the different cities of the
state by reason of any subsequent incorporation, invalidation of
incorporation, annexation or exclusion of territory.
2107.4. Not more than one-quarter of the funds allocated to a city
or county from the Highway Users Tax Account in the Transportation
Tax Fund for the construction of streets therein may be used to make
principal and interest payments on bonds issued for such
construction, if the issuance of such bonds is authorized by a
proposition approved by a majority of the votes cast thereon. The
term of any such bonds shall not exceed 25 years.
2107.5. In addition to the amounts apportioned to cities from the
Highway Users Tax Fund under Sections 2106 and 2107, the following
amounts shall be allocated annually during the month of July of each
fiscal year for expenditure exclusively for engineering costs and
administrative expenses in respect to city streets:
(a) For each city with a
population of over 500,000
inhabitants.................... $20,000
(b) For each city with a
population of 100,000 to
500,000 inhabitants............ 10,000
(c) For each city with a
population of 50,000 to 99,999
inhabitants.................... 7,500
(d) For each city with a
population of 25,000 to 49,999
inhabitants.................... 6,000
(e) For each city with a
population of 20,000 to 24,999
inhabitants.................... 5,000
(f) For each city with a
population of 15,000 to 19,999
inhabitants.................... 4,000
(g) For each city with a
population of 10,000 to 14,999
inhabitants.................... 3,000
(h) For each city with a
population of 5,000 to 9,999
inhabitants.................... 2,000
For each city with a
(i) population of less than
5,000
inhabitants.................... 1,000
For the purpose of this section the population in each city shall
be determined in accordance with Sections 2107, 2107.1, and 2107.2 at
the time of allocation. Any city incorporated after the first day of
July of any year shall receive the full annual allocation prescribed
in this section, such allocation to be made during the month
succeeding the filing or certification of the incorporation by the
Secretary of State.
Any city under subdivision (h) or (i) above may expend the moneys
allocated to it hereunder for acquisition of rights-of-way for and
construction of its street system.
Transfers of revenues from the Highway Users Tax Account to cities
pursuant to this section that are to be allocated during the month
of July 2008, shall be made in September of 2008.
For the purpose of meeting the cash obligations associated with
ongoing budgeted costs, a city may make use of any cash balance in
the city account that is designated for the receipt of state funds
allocated for local streets and roads, 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 streets and roads
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 in
September of 2008. 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 the
requirements of those funding sources.
2107.6. The Controller shall deduct annually, from the amount
apportioned pursuant to Section 2107, the amount identified as
applicable to cities in the report submitted in the preceding fiscal
year pursuant to Section 191, and shall transfer the amount to the
State Highway Account.
2107.7. (a) For each fiscal year, there shall be included in the
annual Budget Bill submitted by the Governor an amount not to exceed
three million four hundred thousand dollars ($3,400,000) to be
appropriated by the Legislature from the Highway Users Tax Account in
the Transportation Tax Fund to the State Parks and Recreation Fund.
(b) These funds shall be appropriated to the Department of Parks
and Recreation for the maintenance and repair of highways in units of
the state park system.
(c) In addition, the money may be used by the Department of Parks
and Recreation for construction and improvement on the highways when
appropriated for such purposes by the Legislature.
(d) The highway construction and improvement shall be designed in
accordance with the standards established by the Department of Parks
and Recreation for state park roads, and may be carried out through
service agreements with the Department of Transportation.
(e) Any increase in the amount of this appropriation shall be
considered in the course of the annual budget process, which shall
include review and comment by the Department of Transportation.
(f) For purposes of this section, highways in units of the state
park system shall include those routes of motor vehicle travel
generally open to public travel and service roads, parking areas, and
roads within campgrounds. Nothing in this section shall constitute
the highway as a state highway or add it to the state highway system.
2107.9. The Legislature finds and declares that it intends counties
and cities to use the additional funds provided them by the act
enacting this section during the 1980-81 Regular Session of the
Legislature to supplement existing local revenues being used for
transportation purposes.
Counties and cities are further encouraged to maintain their
existing commitment of local funds for transportation purposes.
2107.10. If the board of supervisors of a county with a population
of more than 6,000,000 did not adopt and submit a resolution pursuant
to Section 41 of the act enacting this section during the 1981-82
Regular Session of the Legislature, the increase in allocation for
the county as a result of Section 2104, as amended and added by that
act, shall instead be allocated to those cities in that county that
adopted and submitted resolutions pursuant to Section 41.
The allocation shall be on the basis of the population used for
purposes of Section 2107.
2108. The balance of the money in the Highway Users Tax Account in
the Transportation Tax Fund, after making the apportionments or
appropriations, as the case may be, pursuant to Sections 2104 to
2107.7, inclusive, shall be transferred to the State Highway Account
in the State Transportation Fund for expenditure in accordance with
Section 163.
2108.1. By July 1, 1990, the City, County, State Cooperation
Committee in the deparment shall develop and adopt a pavement
management program to be utilized on local streets or highways that
receive funding under the state transportation improvement program.
The pavement management program shall be transmitted to every
county and city for possible adoption or incorporation into an
existing pavement management program.
The City, County, State Cooperation Committee shall solicit
recommendations from transportation planning agencies and any other
entity the committee deems appropriate.
2109. State highways shall be maintained, constructed, and improved
out of the moneys received in the State Highway Account under
Section 2108. Notwithstanding Section 81, the department is not
required to maintain any route, or portion of a route, added after
January 1, 1947, until it has been laid out and constructed as a
state highway.
2110. (a) The moneys payable to the counties under subdivision (b)
of Section 2104 shall be apportioned monthly among the several
counties as follows:
(1) A sum equal to the total of all reimbursable snow removal
costs filed pursuant to subdivision (d) of Section 2152, or seven
million dollars ($7,000,000), whichever is less, shall be apportioned
in 12 approximately equal monthly apportionments for snow removal or
snow grooming, or both, on county roads as follows:
(2) If the total is less than seven million dollars ($7,000,000),
the full amount of reimbursable snow removal or snow grooming, or
both, costs shall be apportioned to the several counties in an amount
equal to that computed pursuant to the report filed by each county
pursuant to subdivision (d) of Section 2152.
(3) If the total is seven million dollars ($7,000,000) or more for
the fiscal year, the Controller shall compute percentages for the
apportionment of seven million dollars ($7,000,000) to the several
counties in the state for snow removal or snow grooming, or both, on
county roads, including the purchase of snow removal equipment
therefor, and shall apportion the amount to the counties in the
computed percentages. The percentage each county is to be apportioned
during the fiscal year shall be derived by adding its reimbursable
snow removal or snow grooming, or both, expenditures for the three
preceding fiscal years as to which the Controller has received snow
removal or snow grooming, or both, expenditure reports pursuant to
Section 2152, and dividing the sum by the total amount of
reimbursable snow removal or snow grooming, or both, expenditures by
all counties in the state during those fiscal years.
(b) On or before the first day of March of each year, the
Controller shall notify each county of the amount apportioned to it
pursuant to this section for expenditure for snow removal or snow
grooming, or both, on county roads during the following fiscal year.
2110.5. The money payable to the counties under subdivision (c) of
Section 2104 shall be apportioned monthly for heavy rainfall and
storm damage on county roads to the following counties in the named
percentages:
Alameda............................... 2.629
Amador................................ .135
Butte................................. .161
Colusa................................ .339
Contra Costa.......................... 10.575
Del Norte............................. .251
Fresno................................ .639
Humboldt.............................. 4.935
Los Angeles........................... 9.913
Marin................................. 3.781
Mendocino............................. 2.084
Monterey.............................. 3.701
Napa.................................. 1.950
Nevada................................ .718
Orange................................ .051
Placer................................ .085
Plumas................................ .897
Riverside............................. 1.185
San Benito............................ 1.070
San Bernardino........................ 2.609
San Francisco......................... 1.016
San Diego............................. 2.760
San Luis Obispo....................... 5.782
Santa Barbara......................... 7.661
Santa Cruz............................ 12.162
Sierra................................ .333
Siskiyou.............................. .814
Sonoma................................ 10.238
Trinity............................... 2.137
Ventura............................... 8.543
Yuba.................................. .846
2111. Apportionments from the Highway Users Tax Fund shall not be
made to any incorporated city the streets of which are not public
streets or which has not held an election of municipal officers
within a period of 10 years preceding the date of such apportionment.
Apportionments heretofore accumulated for expenditure within any
such city shall be reapportioned to all other cities and cities and
counties in the manner provided by Sections 2106 and 2107,
respectively.
2112. No money apportioned from the Highway Users Tax Fund as
provided in Section 2106 or 2107 shall be used for the construction
or improvement of any highway or street if the contract for such
construction or improvement specifies the use of any patented or
proprietary paving material, unless the contract has been awarded to
the lowest responsible bidder therefor after alternate bids have been
called for and opportunity afforded for bids to be submitted for
nonpatented or nonproprietary paving material in competition with an
equal thickness and like design of such patented or proprietary
paving material. This section shall not be deemed nor construed to
prohibit the use of any patented or proprietary paving material in
the maintenance of any highway or street when such highway or street
was constructed of such material and, in the opinion of the body,
board or officer ordering such maintenance, it would be impractical
to use a different paving material for such maintenance.
2113. No apportionment of money from the Highway Users Tax Fund as
provided in Section 2106 or 2107 shall be made to a city unless the
city has set up by ordinance a "special gas tax street improvement
fund."
All apportionments of such moneys shall be deposited in the
"special gas tax street improvement fund."
In making any expenditure a city shall follow the law governing it
in regard to the doing of the particular type of work in cases which
are not exclusively municipal affairs.
No state officer or employee shall be liable for anything done, or
omitted to be done, by any city in the performance of any work.
Interest received by a city from the investment of money in its
special gas tax street improvement fund shall be deposited in the
fund and shall be used for street purposes.
2113.5. Any city may have any or all of its engineering and
administrative work with respect to city streets done by contract. If
authorized by their legislative bodies, two or more cities, by
agreement, may jointly exercise the power granted by this section
pursuant to the provisions of Sections 6500-6513, inclusive, of the
Government Code.
2114. Contracts for any construction and improvement projects on
city streets for which funds apportioned from the Highway Users Tax
Fund as provided in Section 2106 or 2107 may be expended during any
fiscal year may be awarded on and after the first day of January
preceding the beginning of the fiscal year.
2114.5. In the event that any sums are taken or borrowed from the
Highway Users Tax Fund, to augment the General Fund, or to pay any
appropriations made from the General Fund, the Controller is
authorized to reduce the amounts paid from such reduced fund
proportionately to the reduction in such fund, such reductions to be
made up when and if such reduced fund is reimbursed from the General
Fund.
2115. To permit the accomplishment of major cooperative street or
highway projects in their entirety, the legislative body of a county
or city may authorize the Controller to accumulate moneys accruing to
the county or city over a period of time from the Highway Users Tax
Fund pursuant to Section 2106 or 2107.
2116. Any city may contract with the department for the performance
by the department of any or all street work in such city and for
such purpose may transfer to the department, for deposit in the State
Treasury, any moneys available for expenditure by such city for
street purposes.
2117. (a) Whenever a school district constructs a school building
for which any apportionment is made pursuant to Chapter 4 (commencing
with Section 15700) or Chapter 6 (commencing with Section 16000) of
Part 10 of the Education Code, and the city or county in which the
school building is situated requires the construction of any street
or road connected with the school premises on which the school
building is constructed, the State Allocation Board shall review the
requirement and recommend to the governing body of the city or county
a plan of construction adequate to meet the needs of the school
district and the safety of the public. If a different plan of
improvement or improvement to higher standards than that recommended
by the State Allocation Board is required by the governing body of
the city or county, the additional cost thereof shall be borne by the
city or county in which the school building is situated.
Notwithstanding any other provision of this code or any other law
limiting the purposes for which money apportioned to cities or
counties from the Highway Users Tax Account in the Transportation Tax
Fund may be expended, any of the moneys so apportioned may be
expended for the construction of the streets or roads referred to in
this section.
(b) Nothing in this section requires each cost item included in
any charge made pursuant to this section to be separately stated.
2118. When the State Controller determines it to be necessary, he
may require a county or city to deposit money received from the
Highway Users Tax Fund in a separate bank account.
2118.5. All or a portion of the cost of furnishing warranted
traffic control personnel whose function is to assist students in
crossing streets and highways and avoiding traffic hazards may be
charged against money apportioned to cities, cities and counties, or
counties from the Highway Users Tax Account in the Transportation Tax
Fund. The amount charged shall not exceed the portion of money
derived from the tax under the Motor Vehicle Account in the State
Transportation Fund. The department may assist local agencies in
establishing warrants for crossing guard protection.
2119. The State Controller shall not draw his warrant upon the
Highway Users Tax Fund in favor of any county or city which has
failed to establish any road or street fund as required by law, which
has failed to deposit money received from the Highway Users Tax Fund
in a separate bank account when required under Section 2118, which
has failed, neglected or refused to file any report required by law,
showing the amount of money received by such county or city from the
Highway Users Tax Fund and the disposition thereof, or which has
failed, neglected, or refused to restore any such moneys not expended
in conformance with any law or constitutional provision. On
satisfactory proof by such county or city to the State Controller of
the establishment of such road or street fund, the depositing of
money in a separate bank account, the filing of such report, or the
restoration of the improperly expended moneys, such warrant shall be
issued.
A county or city shall have a reasonable time, after notification
from the State Controller, to comply with the provisions of this
section.
2120. Upon the request of the board of supervisors of any county,
the Controller may deduct from the apportionment to such county any
amount specified in such request and pay the amount to any state
department for services to be furnished in accordance with the
request.
2121. (a) In May of each year each county shall submit to the
department any additions or exclusions from its mileage of maintained
county highways, specifying the termini and mileage of each route
added or excluded from its county maintained roads. The department
shall either approve or disapprove each inclusion or exclusion. A
county may appeal any disapproval as provided in Section 74. The
department shall certify county mileage figures to the Controller, as
required. No appeal shall affect any apportionment made by the
Controller pending the determination of the appeal. If, on appeal,
additional mileage is allowed the county, the department shall
immediately certify the corrected figure to the Controller, and the
same shall be used for subsequent apportionments.
(b) Upon relinquishing any state highway or portion thereof to a
county, the department shall immediately certify to the Controller
the mileage so relinquished and the same shall immediately be added
to the county's maintained mileage of county roads for purposes of
subsequent apportionments.
2122. Contracts for any construction and improvement projects on
county highways for which it is anticipated funds from the Highway
Users Tax Fund will be available during any fiscal year may be
awarded on and after the first day of March preceding the beginning
of the fiscal year.
2126. (a) The money appropriated pursuant to Item 9675-101-890 of
the Budget Act of 1985 (Chapter 111 of the Statutes of 1985) is
hereby appropriated to the Controller for allocation to counties and
cities for street and highway maintenance and reconstruction, 55
percent to the cities for allocation pursuant to subdivision (b) and
45 percent to the counties for allocation pursuant to subdivision
(c).
(b) (1) The amount to be allocated to a city, including a city and
county, equals the amount available for allocation to the cities
pursuant to subdivision (a) times the ratio of the total allocation
it received pursuant to Section 2107 over all allocations made
pursuant to that section during the prior fiscal year.
(2) In the case of a city whose incorporation was effective
between July 1, 1984, and October 2, 1986, inclusive, and which did
not receive the equivalent of a full year allocation of funds
appropriated for allocation pursuant to subdivision (a) of Section 7
of Chapter 1600 of the Statutes of 1985 or pursuant to subdivision
(a) of this section, the amount calculated for allocation pursuant to
subdivision (b) of that Section 7 shall be increased by an amount
which will provide the city an amount equivalent to the total
allocation it would have received pursuant to subdivisions (a) and
(b) of that Section 7 and subdivision (a) of this section.
(c) Fifty-five percent of the funds payable under this section to
counties, including a city and county, shall be apportioned among the
counties in the proportion that the number of fee-paid and exempt
vehicles registered in each county bears to the total number of
fee-paid and exempt vehicles which are registered in the state.
Forty-five percent of the funds payable under this section to
counties, including a city and county, 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.
(d) For purposes of this section:
(1) "Maintenance" means (A) patching and (B) overlay and sealing.
(2) "Reconstruction" does not include widening to increase the
traffic capacity of a street or highway, but does include any
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 nonfreeway 3R
(reconstruction, resurfacing, and rehabilitation) projects.
(e) The Controller shall allocate the funds available for that
Item 9675-101-890 within 30 days after they become available to the
state.
2127. (a) (1) Except in the case of a city or county which has made
an election pursuant to paragraph (2) or (3) of this subdivision, in
order to receive any allocation pursuant to Section 2126 or Section
7 of Chapter 1600 of the Statutes of 1985, the city or county, as the
case may be, shall expend for the maintenance and reconstruction, as
defined in subdivision (d) of Section 2126, of its local street and
highway system during the fiscal year that it receives an allocation
pursuant to Section 2126 or that Section 7 not less than its base
year expenditure, excluding the allocation received pursuant to
Section 2126 or that Section 7, or both, during the fiscal year.
(2) A city or county may elect to expend during the two fiscal
years that it receives an allocation, a total amount which is not
less than twice the amount of its base year expenditure.
(3) A city may elect to expend, during the two fiscal years that
it receives an allocation and the following fiscal year, a total
amount which is not less than three times the amount of its base year
expenditure. This paragraph applies only to the Cities of
Bakersfield, El Segundo, Novato, Oceanside, San Mateo, San Rafael,
Santa Maria, Seal Beach, and Westminster. For the purposes of this
paragraph, either actual expenditures or funds encumbered by
contractual obligations in the 1987-88 fiscal year shall qualify as
expenditures in the year after allocations are received.
(4) Any city, except the Cities of Bakersfield, El Segundo,
Novato, San Rafael, and Santa Maria, or county making an election
pursuant to paragraph (2) or (3) shall so notify the Controller by
December 31, 1987, and a city or county which fails to do so shall be
governed by paragraph (1).
(5) Any city or county with a population of 40,000 or less which
makes an election pursuant to paragraph (2) or (3) and which expends
funds pursuant to that election by October 30, 1988, shall be deemed
to have notified the Controller pursuant to paragraph (4).
(6) This subdivision does not apply to a city or a county,
including a city which filed a notice with the Controller pursuant to
subdivision (g), with a population of 10,000 or less, as most
recently determined by the Department of Finance.
(b) The amount allocated to a city or a county, as the case may
be, shall be expended by October 30, 1988.
(c) (1) For purposes of this section, "base year expenditure"
means the amount that the city or county, as the case may be,
expended for patching, overlay, and sealing, and reconstruction of
its local street and highway system during the 1984-85 fiscal year,
as reported to the Controller pursuant to Section 2151. Any city or
county, with a population of 100,000 or less as of October 1, 1986,
which filed a notice with the Controller pursuant to subdivision (g),
may elect to have its "base year expenditure" determined on the
basis of its 1983-84 fiscal year expenditures. A city or county
making this election shall so notify the Controller by December 31,
1987, and the election shall not be available to a city or county
which does not so notify the Controller.
(2) If the sum of the revenue received by a city or co