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HomePublic Utilities CodeDiv. 10Pt. 11Ch. 4Art. 8§ 99405 Local Transportation Funding Limits

§ 99405 Local Transportation Funding Limits

Public Utilities Code·California
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§ 99405 Local Transportation Funding Limits

Key Takeaways

  • •Cities and counties can't spend more than half of their planned money on one thing unless there's a special rule.
  • •If they're building big new things like roads or buildings, they can spend more than half if it fits their big transportation plan.
  • •Small towns with less than 5,000 people can spend money freely on transportation stuff without following the half rule.
  • •Money spent on fixing local streets and roads doesn’t have to follow the half rule either.

Example

A city wants to build a new bus station that costs $1 million.

Normally, the city can only spend half ($500,000) of its planned money on this project. But if the bus station is part of their big transportation plan, they can spend the full $1 million.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 99405 Local Transportation Funding Limits

(a) Except as otherwise provided in this section, the allocation for any purpose specified in Section 99400 may in no year exceed 50 percent of the amount required to meet the city’s or county’s total proposed expenditures for that purpose. (b) With respect to budgeted capital requirements for major new facilities, the transportation planning agency, notwithstanding the 50-percent limitation, may allocate up to the amount so budgeted, if the construction of the facilities has been found to be not inconsistent with the transportation planning agency’s regional transportation plan. (c) (1) The 50-percent limitation shall not apply to the allocation to a city, county, or transit district for services under contract pursuant to subdivision (c) or (d) of Section 99400. The city, county, or transit district that is not in compliance with Section 99268.20 shall be subject to Section 99268.3, 99268.4, 99268.5, or 99268.9, as the case may be, and shall be deemed an operator for purposes of those sections, or shall be subject to regional, countywide, or county subarea performance criteria, local match requirements, or fare recovery ratios adopted by resolution of the transportation planning agency or the county transportation commission for those services. (2) In adopting the performance criteria, local match requirements, or fare recovery ratios, the transportation planning agency or the county transportation commission may adopt the criteria of Section 99268.3, 99268.4, 99268.5, or 99268.9, or any combination or all of them. (3) If a transportation planning agency or county transportation commission has adopted performance criteria, local match requirements, or fare recovery ratios, the rules and regulations of the agency or commission shall apply, and Sections 99205.7 and 99241, subdivision (a) of Section 99247, and Section 99268.8 shall not apply. (d) The 50-percent limitation shall not apply to funds allocated under this article to a city or county with a population of less than 5,000, and, notwithstanding Section 99400, the city or county may claim funds under this article for transportation services, including associated capital, planning, and administrative costs, without contracting with another entity. (e) The 50-percent limitation shall not apply to funds allocated under this article for local street and road purposes. (Amended by Stats. 2021, Ch. 81, Sec. 14. (AB 149) Effective July 16, 2021.)

Last verified: January 23, 2026

Key Terms

transportationperformancecomplianceresolutionroadcontractcommissionregulation

Related Statutes

  • § 99275.5 Community Transit Service Claims
  • § 99400 Local Transportation Funding Claims
  • § 99234.7 Rail Service Contract Limits
  • § 99401.6 Transit Needs Funding Allocation
  • § 99403 Local Highway Funding Contributions

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 99405.
View Official Source