AB-2679 • 2026

Road Maintenance and Rehabilitation Program: State Highway Account loans: cities.

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Hadwick
Last action: 2026-04-21
Official status: From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 15. Noes 0.) (April 20). Re-referred to Com. on APPR.
Effective date: Not listed

Plain English Breakdown

The bill summary does not provide specific details on the amount of additional funds that can be borrowed or what happens in case cities cannot repay the loans.

Road Maintenance and Rehabilitation Program: City Funding

This law sets a minimum funding requirement for cities from the Road Maintenance and Rehabilitation Account starting fiscal year 2027-28, and allows cities to borrow additional funds if needed.

What This Bill Does

Sets a new rule that every city must receive at least $200,000 from the Road Maintenance and Rehabilitation Account (RMRA) starting in fiscal year 2027-28.
Allows cities to request extra money as a loan from the State Highway Account if their regular funding is less than $200,000 and they need more for road projects.
Requires cities to agree to pay back borrowed funds from future payments they receive.
Gives the Controller of California the authority to provide these loans if there are sufficient reserve funds in the State Highway Account.

Who It Names or Affects

Cities that receive funding for road maintenance and rehabilitation.
The Controller of California, who manages state finances.
The California Transportation Commission, which reviews city project lists.

Terms To Know

Road Maintenance and Rehabilitation Account (RMRA): A fund that collects money from fuel taxes and vehicle fees to fix roads and highways in California.
State Highway Account: An account within the State Transportation Fund where money is kept for highway projects.

Limits and Unknowns

The bill does not specify how much extra money cities can borrow.
It's unclear if all cities will qualify for the minimum $200,000 funding or if there are exceptions.
The bill doesn't explain what happens if a city cannot pay back borrowed funds.

Bill History

2026-04-21 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 15. Noes 0.) (April 20). Re-referred to Com. on APPR.
2026-04-14 California Legislative Information
Re-referred to Com. on TRANS.
2026-04-13 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on TRANS. Read second time and amended.
2026-03-16 California Legislative Information
Referred to Com. on TRANS.
2026-02-21 California Legislative Information
From printer. May be heard in committee March 23.
2026-02-20 California Legislative Information
Read first time. To print.

Official Summary Text

AB 2679, as amended, Hadwick.
Road Maintenance and Rehabilitation
Account: funding apportionments:
Program: State Highway Account loans:
cities.
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.
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.
This bill would require the Controller, with respect to the revenues apportioned to cities, to apportion a minimum of $200,000 to each city, regardless of its population size, in the 2027–28 fiscal year and each fiscal year thereafter.
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.

Current Bill Text

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