BILL NUMBER: AB 427	CHAPTERED  07/28/03

	CHAPTER  129
	FILED WITH SECRETARY OF STATE  JULY 28, 2003
	APPROVED BY GOVERNOR  JULY 27, 2003
	PASSED THE ASSEMBLY  JULY 10, 2003
	PASSED THE SENATE  JULY 7, 2003
	AMENDED IN SENATE  JUNE 24, 2003
	AMENDED IN ASSEMBLY  MAY 13, 2003

INTRODUCED BY   Assembly Member Longville

                        FEBRUARY 14, 2003

   An act to amend Sections 180201 and 180204 of the Public Utilities
Code, relating to transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 427, Longville.  Local transportation sales taxes.
   The Local Transportation Authority and Improvement Act generally
authorizes a county board of supervisors to create or otherwise
designate a transportation authority in the county that may impose a
transportation sales tax for not more than 20 years if the tax
ordinance is adopted by a 2/3 vote of the authority and if the
ordinance is subsequently approved by a majority of the voters.
Existing law also authorizes approval of transportation sales taxes
for specific jurisdictions in a similar manner.  However, the
California Supreme Court has held that a transportation sales tax
measure is a special tax that requires approval by a 2/3 majority of
the voters pursuant to Proposition 62 of 1986.  Existing law makes
the ordinance operative on the first day of the first calendar
quarter commencing more than 120 days after the adoption of the
ordinance.
   This bill would delete the 20-year limit on the duration of a
local transportation sales tax under the general provisions described
above and would instead provide that the tax shall remain in effect
for the period of time specified in the tax ordinance that is adopted
by the authority and approved by the voters.  The bill would also
make the ordinance operative on the first day of the first calendar
quarter commencing more than 110 days after the adoption of the
ordinance.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 180201 of the Public Utilities Code is amended
to read:
   180201.  A retail transactions and use tax ordinance applicable in
the incorporated and unincorporated territory of a county may be
imposed by the authority in accordance with this chapter and Part 1.6
(commencing with Section 7251) of Division 2 of the Revenue and
Taxation Code, if the tax ordinance is adopted by a two-thirds vote
of the authority and imposition of the tax is subsequently approved
by a majority of the electors voting on the measure, or by any
otherwise applicable voter approval requirement, at a special
election called for that purpose by the board of supervisors, at the
request of the authority, and a county transportation expenditure
plan is adopted pursuant to Section 180206.
   A retail transactions and use tax approved by the electors shall
remain in effect for  the period of time specified in the tax
ordinance.  The tax may be continued in effect, or reimposed, by a
tax ordinance adopted by a two-thirds vote of the authority and the
reimposition of the tax is approved by  any applicable majority of
the electors.
  SEC. 2.  Section 180204 of the Public Utilities Code is amended to
read:
   180204.  (a) Any transactions and use tax ordinance adopted
pursuant to this chapter shall be operative on the first day of the
first calendar quarter commencing more than 110 days after adoption
of the ordinance.
   (b) Prior to the operative date of the ordinance, the authority
shall contract with the State Board of Equalization to perform all
functions incidental to the administration and operation of the
ordinance.