Existing law creates the Road Maintenance and Rehabilitation Program to address deferred maintenance on the state highway system and the local street and road system. Existing law provides for the deposit of various moneys, including revenues from certain fuel taxes and vehicle fees, for the program into the Road Maintenance and Rehabilitation Account (RMRA) . Existing law requires funds available for the program to be allocated for various specified purposes and requires the remaining funds available for the program to be continuously appropriated, with 50% for allocation to the Department of Transportation and 50% for apportionment to cities and counties by the Controller. Of the funds to be apportioned to cities and counties, existing law requires the Controller to apportion 50% of those funds to counties pursuant to a specified formula and 50% of those funds to cities in the proportion that the total population of each city bears to the total population of all the cities in the state. Existing law requires a city or county to submit to the California Transportation Commission a list of proposed projects, as specified, to be eligible for an apportionment of those funds.
Existing law establishes the State Highway Account in the State Transportation Fund. With specified exceptions, money in the State Highway Account is required to be appropriated by the Legislature.
This bill would authorize a city to submit a request to the Controller to receive a supplemental apportionment from the State Highway Account if, among other things, the city's apportionment from the RMRA for the applicable fiscal year is no more than $200,000, the cost of the city's list of projects submitted to the commission exceeds the amount of its apportionment, and the city agrees to reimburse the amount of supplemental funding provided from the State Highway Account with its future apportionments from the RMRA in accordance with terms and conditions established by the commission. The bill would require the Controller to apportion the amount of money requested by the city as a loan from the State Highway Account if the Controller determines, among other things, that the amount of supplemental funding is available as reserves in the State Highway Account.

Statutes affected:
AB2679: 2032 SHC
02/20/26 - Introduced: 2032 SHC
AB 2679: 2032 SHC