BILL NUMBER: SB 521 CHAPTERED 09/12/01 CHAPTER 297 FILED WITH SECRETARY OF STATE SEPTEMBER 12, 2001 APPROVED BY GOVERNOR SEPTEMBER 12, 2001 PASSED THE SENATE AUGUST 28, 2001 PASSED THE ASSEMBLY AUGUST 27, 2001 AMENDED IN ASSEMBLY AUGUST 23, 2001 AMENDED IN ASSEMBLY JUNE 29, 2001 AMENDED IN SENATE MAY 7, 2001 AMENDED IN SENATE MARCH 27, 2001 INTRODUCED BY Senator Alpert FEBRUARY 22, 2001 An act to add Section 120354 to, to add Article 6 (commencing with Section 132320) to Chapter 2 of Division 12.7 of, and to repeal Section 120265 of, the Public Utilities Code, relating to transportation. LEGISLATIVE COUNSEL'S DIGEST SB 521, Alpert. Transportation. (1) Existing law requires the San Diego Metropolitan Transit Development Board to provide a system of specified regional transit operating services and support activities, to be funded from the regional transit fund that the board is required to create. Under existing law, the board is required to determine the routes, fares, frequency of service, and hours of operation of regional service. Existing law also authorizes the board to adopt and amend, on an annual basis, an assessment formula for funding regional services. This bill would delete these provisions. (2) Existing law authorizes the board to receive federal funds for mass transit purposes and to reallocate the funds for these purposes in accordance with federal law. This bill would prohibit any other public entity within the area of the board's jurisdiction from filing an application for funds for public transportation under specified provisions relating to transportation development. This bill would require the board to consolidate all available local, state, and federal transit financial resources for public mass transit operators and systems within its jurisdiction and, in coordination with the various operators, adopt a policy for annually prioritizing the use of those funds for specified purposes. To the extent that these provisions would increase the level of service required of the board, the bill would impose a state-mandated local program. (3) Existing law establishes the San Diego County Regional Transportation Commission in the County of San Diego and authorizes the commission to impose a retail transactions and use tax by ordinance in the county, upon approval of the proposal by the voters at a special election called for that purpose and compliance with certain other requirements. This bill would authorize the commission to extend or expand, as defined, the tax imposed as specified above, upon approval of the proposal by the voters at a special election called for that purpose and compliance with certain other requirements. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 120265 of the Public Utilities Code is repealed. SEC. 2. Section 120354 is added to the Public Utilities Code, to read: 120354. (a) No other public entity within the area of the board's jurisdiction may file an application for funds for public transportation under Chapter 4 (commencing with Section 99200) of Part 11 of Division 10 of the Public Utilities Code. (b) The board shall consolidate all available local, state, and federal transit financial resources for public mass transit operators and systems within its jurisdiction and, in coordination with the various operators, shall adopt a policy for annually prioritizing the use of those funds for all of the following: (1) Services provided pursuant to the Americans with Disabilities Act of 1990 (Public Law 101-336). (2) Local match requirements for federal and state transit capital grants. (3) The local and regional service base. (4) Any additional planning and operation of transit services and development and implementation of capital programs approved by the board. SEC. 3. Article 6 (commencing with Section 132320) is added to Chapter 2 of Division 12.7 of the Public Utilities Code, to read: Article 6. Extension or Expansion of Transactions and Use Tax 132320. For the purposes of this article, the following terms have the following meanings: (a) To "expand" the transactions and use tax means to expand the purposes for which the revenue derived from the tax may be expended to include covering the costs of implementing measures to manage the impacts of regional transportation improvements, including, but not limited to, impacts related to growth, and maximize the efficiency of regional transportation and transit systems. These measures may include, but need not be limited to, any or all of the following: (1) Acquisition, management, maintenance, and monitoring of natural habitat and open space. (2) Development and implementation of watershed management. (3) Construction, repair, replacement, and maintenance of storm water conveyance systems. (b) To "extend" the transactions and use tax means to extend the imposition of the tax beyond any term stated in the tax ordinance originally imposing the tax. 132322. (a) An ordinance expanding or extending, or both, the retail transactions and use tax imposed under this chapter shall be imposed by the commission and shall be applicable in the incorporated and unincorporated territory of the county, if the constitutionally required percentage of the electors voting on the measure vote to approve its imposition at a special election called for that purpose by the commission. The ordinance shall take effect on the day immediately following the day of the election at which the proposition is adopted. (b) If at any time the voters do not approve the imposition of the expansion or extension, or both, of the transactions and use tax, this chapter remains in full force and effect. The commission may, at any time thereafter, submit the same, or a different, measure to the voters in accordance with this article. 132324. (a) In the ordinance, the commission shall state the nature of the tax to be imposed, the tax rate or the maximum tax rate, and the purposes for which the revenue derived from the tax will be used. (b) If the tax is extended, the ordinance shall set forth the new term during which the tax will be imposed. (c) If the tax is expanded, the ordinance shall contain an expenditure plan that includes the allocation of revenues for the expanded purposes. 132326. (a) The county shall conduct an election called by the commission pursuant to Section 132322. (b) The election shall be called and conducted in the same manner as provided by law for the conduct of elections by a county. 132328. (a) Any ordinance extending or expanding, or both, the transactions and use tax shall be operative on the day immediately following the day of the election at which the proposition is adopted. (b) If the ordinance extends the transactions and use tax, the commission shall contract with the State Board of Equalization to perform all functions incident to the extended administration and operation of the ordinance. 132330. Any action or proceeding wherein the validity of the adoption of the extension or expansion, or both, of the retail transactions and use tax, or the issuance of any bonds thereunder, or any of the proceedings in relation thereto is contested, questioned, or denied, shall be commenced within 60 days from the date of the election at which the ordinance is approved; otherwise, the bonds and all proceedings in relation thereto, including the adoption and approval of the ordinance and the levy and collection of the retail transactions and use tax, shall be held to be valid and in every respect legal and incontestable. 132332. The commission has no power to extend or expand, or both, any tax other than the transactions and use tax extended or expanded upon approval of the voters in accordance with this chapter. 132334. All provisions of Article 5 (commencing with Section 132300) relating to allocation of revenues, tax rates, and bonds apply to the expanded or extended, or both, transactions and use tax, except that the revenues derived from the expanded tax may be used for the additional purposes described in subdivision (a) of Section 132320. SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district are the result of a program for which legislative authority was requested by that local agency or school district, within the meaning of Section 17556 of the Government Code and Section 6 of Article XIIIB of the California Constitution.