BILL NUMBER: SB 1099	CHAPTERED  08/05/04

	CHAPTER  210
	FILED WITH SECRETARY OF STATE  AUGUST 5, 2004
	APPROVED BY GOVERNOR  AUGUST 5, 2004
	PASSED THE SENATE  JULY 29, 2004
	PASSED THE ASSEMBLY  JULY 28, 2004
	AMENDED IN ASSEMBLY  JULY 27, 2004
	AMENDED IN ASSEMBLY  JUNE 29, 2004

INTRODUCED BY   Committee on Budget and Fiscal Review

                        JANUARY 12, 2004

   An act to add Section 14558 to the Government Code, relating to
transportation, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1099, Committee on Budget and Fiscal Review.  Sales taxes on
motor vehicle fuels:  suspension of transfer.
   Article XIX B of the California Constitution requires sales taxes
on motor vehicle fuel that are deposited in the General Fund to be
transferred to the Transportation Investment Fund for allocation to
various transportation purposes, including allocations to particular
transportation projects included in the Transportation Congestion
Relief Program.  Article XIX B authorizes the transfer of these
revenues to the Transportation Investment Fund to be suspended in
whole or in part for a fiscal year during a fiscal emergency pursuant
to a proclamation issued by the Governor and the enactment of a
statute by a 2/3 vote of both houses of the Legislature if the
statute does not contain any unrelated provision.
   This bill, pursuant to Article XIX B, would suspend the transfer
of motor vehicle fuel sales tax revenues from the General Fund to the
Transportation Investment Fund for the 2004-05 fiscal year.
   This bill would declare that it is to take effect immediately as
an urgency statute.


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


  SECTION 1.  Section 14558 is added to the Government Code, to read:

   14558.  (a) The Legislature finds and declares that the Governor
has issued a proclamation pursuant to paragraph (1) of subdivision
(d) of Section 1 of Article XIX B of the California Constitution
declaring that the transfer of revenues from the General Fund to the
Transportation Investment Fund during the 2004-05 fiscal year
pursuant to subdivision (a) of Section 1 of Article XIX B would have
a significant negative fiscal impact on the range of functions of
government funded by the General Fund of the state.
   (b) Pursuant to paragraph (2) of subdivision (d) of Section 1 of
Article XIX B, the transfer of revenues from the General Fund to the
Transportation Investment Fund that would otherwise be required under
subdivision (a) of Section 1 of Article XIX B is hereby suspended
for the 2004-05 fiscal year.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to suspend the transfer of funds from the General Fund to
the Transportation Investment Fund for the 2004-05 fiscal year
pursuant to Section 1 of Article XIX B of the California Constitution
as quickly as possible, it is necessary that this act take effect
immediately.