CA AB87

Establishes a competitive funding program through the California Transportation Commission to provide grants up to $7.2 million from the Trade Corridors Improvement Fund for short-line railroad reconstruction, maintenance, upgrade, and replacement projects, with guidelines to be adopted by July 1, 2020.

Expands the Independent Office of Audits and Investigations within the Department of Transportation to access all records of the department and external entities receiving state and federal transportation funds, and creates misdemeanor penalties for obstructing audits, altering records, or improperly releasing confidential draft audit documents.

Modifies repayment of $706 million in loans from the General Fund to the Traffic Congestion Relief Fund, requiring $470 million to be repaid pursuant to the California Constitution and $236 million to be repaid without constitutional requirement.

Transfers all assets and liabilities of the Local Transportation Loan Account to the State Highway Account and repeals the Transportation Finance Bank provisions effective January 1, 2020.

Redirects all revenue from California memorial license plate fees to the Antiterrorism Fund instead of splitting revenue between the Antiterrorism Fund (85%) and California Memorial Scholarship Fund (15%).