CA ABX123

Requires the California Transportation Commission to establish by January 1, 2017 a process prioritizing highway capital improvement projects that provide meaningful benefits to disadvantaged communities, with a funding floor of no less than 35 percent of rehabilitation and reconstruction projects located in disadvantaged areas.

Defines "disadvantaged community" as areas with median household income below 80 percent of statewide median, areas in the most disadvantaged 25 percent according to CalEnviroScreen scores, or areas where 75 percent of public school students qualify for free or reduced-price meals.

Requires prioritization of projects that recruit and hire low-income, formerly incarcerated, and disconnected youth and adults through community workforce agreements and project labor agreements with targeted hire commitments.

Appropriates $125,000,000 annually from the State Highway Account to the Active Transportation Program for network grants prioritizing pedestrian and bicycle projects in underserved areas.

Mandates that a minimum of one-third of network grant funding support safe routes to school projects, with 10-30 percent of that amount dedicated to non-infrastructure programs including education and community engagement.