BILL NUMBER: SCA 7 ENROLLED
BILL TEXT
PASSED THE ASSEMBLY MAY 5, 2006
PASSED THE SENATE MAY 4, 2006
AMENDED IN SENATE MAY 4, 2006
AMENDED IN SENATE JANUARY 12, 2006
AMENDED IN SENATE JANUARY 9, 2006
INTRODUCED BY Senator Torlakson
FEBRUARY 15, 2005
A resolution to propose to the people of the State of California
an amendment to the Constitution of the State, by amending Section 1
of Article XIX B thereof, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
SCA 7, Torlakson Transportation Investment Fund.
Article XIX B of the California Constitution requires, commencing
with the 2003-04 fiscal year, that sales taxes on motor vehicle fuel
that are deposited into the General Fund be transferred to the
Transportation Investment Fund (TIF) for allocation for various
transportation purposes. Article XIX B authorizes this transfer to
the TIF to be suspended in whole or in part for a fiscal year during
a fiscal emergency pursuant to a proclamation by the Governor and the
enactment of a statute by a 2/3 vote in each house of the
Legislature if the statute does not contain any unrelated provision.
This measure would recast these suspension provisions. This
measure would authorize a suspension, in whole or in part, of the
transfer of these revenues to the TIF for a fiscal year if (1) the
Governor issues a proclamation that the suspension is necessary due
to a severe state fiscal hardship, (2) a statute containing no other
unrelated provision is enacted by a 2/3 vote of each house of the
Legislature suspending the transfer, and (3) a statute is enacted to
repay, with interest, the TIF within 3 years for the amount of any
revenues that were not transferred as a result of the suspension.
This measure would also prohibit a suspension of transfer of these
revenues from occurring more than twice during any period of 10
consecutive fiscal years, and would prohibit a suspension in any
fiscal year in which a required repayment from a prior suspension has
not been fully completed.
This measure would also require payments to be made from the
General Fund to the Transportation Investment Fund relative to a
portion of the revenues that were not transferred due to a suspension
of transfer occurring on or before July 1, 2007, with payments made
pursuant to a specified schedule.
Resolved by the Senate, the Assembly concurring, That the
Legislature of the State of California at its 2005 -06 Regular
Session commencing on the sixth day of December 2004, two-thirds of
the membership of each house concurring, hereby proposes to the
people of the State of California, that the Constitution of the State
be amended as follows:
That Section 1 of Article XIX B thereof is amended to read:
SECTION 1. (a) For the 2003-04 fiscal year and each fiscal
year thereafter, all moneys that are collected during the fiscal year
from taxes under the Sales and Use Tax Law (Part 1 (commencing with
Section 6001) of Division 2 of the Revenue and Taxation Code), or any
successor to that law, upon the sale, storage, use, or other
consumption in this State of motor vehicle fuel, and that are
deposited in the General Fund of the State pursuant to that law,
shall be transferred to the Transportation Investment Fund, which is
hereby created in the State Treasury.
(b) (1) For the 2003-04 to 2007-08 fiscal years, inclusive, moneys
in the Transportation Investment Fund shall be allocated, upon
appropriation by the Legislature, in accordance with Section 7104 of
the Revenue and Taxation Code as that section read on March 6, 2002.
(2) For the 2008-09 fiscal year and each fiscal year thereafter,
moneys in the Transportation Investment Fund shall be allocated
solely for the following purposes:
(A) Public transit and mass transportation.
(B) Transportation capital improvement projects, subject to the
laws governing the State Transportation Improvement Program, or any
successor to that program.
(C) Street and highway maintenance, rehabilitation,
reconstruction, or storm damage repair conducted by cities, including
a city and county.
(D) Street and highway maintenance, rehabilitation,
reconstruction, or storm damage repair conducted by counties,
including a city and county.
(c) For the 2008-09 fiscal year and each fiscal year thereafter,
moneys in the Transportation Investment Fund shall be allocated, upon
appropriation by the Legislature, as follows:
(A) Twenty percent of the moneys for the purposes set forth in
subparagraph (A) of paragraph (2) of subdivision (b).
(B) Forty percent of the moneys for the purposes set forth in
subparagraph (B) of paragraph (2) of subdivision (b).
(C) Twenty percent of the moneys for the purposes set forth in
subparagraph (C) of paragraph (2) of subdivision (b).
(D) Twenty percent of the moneys for the purposes set forth in
subparagraph (D) of paragraph (2) of subdivision (b).
(d) (1) Except as otherwise provided by paragraph (2), the
transfer of revenues from the General Fund of the State to the
Transportation Investment Fund pursuant to subdivision (a) may be
suspended, in whole or in part, for a fiscal year if all of the
following conditions are met:
(A) The Governor issues a proclamation that declares that, due to
a severe state fiscal hardship, the suspension of the transfer of
revenues required by subdivision (a) is necessary.
(B) The Legislature enacts by statute, pursuant to a bill passed
in each house of the Legislature by rollcall vote entered in the
journal, two-thirds of the membership concurring, a suspension for
that fiscal year of the transfer of revenues required by subdivision
(a) and the bill does not contain any other unrelated provision.
(C) No later than the effective date of the statute described in
subparagraph (B), a separate statute is enacted that provides for the
full repayment to the Transportation Investment Fund of the total
amount of revenue that was not transferred to that fund as a result
of the suspension, including interest as provided by law. This full
repayment shall be made not later than the end of the third fiscal
year immediately following the fiscal year to which the suspension
applies.
(2) (A) The transfer required by subdivision (a) shall not be
suspended for more than two fiscal years during any period of 10
consecutive fiscal years, which period begins with the first fiscal
year commencing on or after July 1, 2007, for which the transfer
required by subdivision (a) is suspended.
(B) The transfer required by subdivision (a) shall not be
suspended during any fiscal year if a full repayment required by a
statute enacted in accordance with subparagraph (C) of paragraph (1)
has not yet been completed.
(e) The Legislature may enact a statute that modifies the
percentage shares set forth in subdivision (c) by a bill passed in
each house of the Legislature by rollcall vote entered in the
journal, two-thirds of the membership concurring, provided that the
bill does not contain any other unrelated provision and that the
moneys described in subdivision (a) are expended solely for the
purposes set forth in paragraph (2) of subdivision (b).
(f) (1) An amount equivalent to the total amount of revenues that
were not transferred from the General Fund of the State to the
Transportation Investment Fund, as of July 1, 2007, because of a
suspension of transfer of revenues pursuant to this section as it
read on January 1, 2006, but excluding the amount to be paid to the
Transportation Deferred Investment Fund pursuant to Section 63048.65
of the Government Code, shall be transferred from the General Fund to
the Transportation Investment Fund no later than June 30, 2016.
Until this total amount has been transferred, the amount of transfer
payments to be made in each fiscal year shall not be less than
one-tenth of the total amount required to be transferred by June 30,
2016. The transferred revenues shall be allocated solely for the
purposes set forth in this section as if they had been received in
the absence of a suspension of transfer of revenues.
(2) The Legislature may provide by statute for the issuance of
bonds by the state or local agencies, as applicable, that are secured
by the minimum transfer payments required by paragraph (1). Proceeds
from the sale of those bonds shall be allocated solely for the
purposes set forth in this section as if they were revenues subject
to allocation pursuant to paragraph (2) of subdivision (b).