BILL NUMBER: AB 2321 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Feuer
FEBRUARY 21, 2008
An act to amend Section 130350.5 of the Public Utilities Code,
relating to transportation, and declaring the urgency thereof, to
take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 2321, as introduced, Feuer. Transportation funding: County of
Los Angeles.
Existing law authorizes the Los Angeles County Metropolitan
Transportation Authority (MTA) to impose, in addition to any other
tax that it is authorized to impose, a transactions and use tax at
the rate of 0.5% for 61/2 years or less, for the funding of specified
transportation-related purposes designated as capital projects or
capital programs. Existing law conditions the imposition of a tax
under this authority upon voter approval as otherwise required by
law. It also prohibits the MTA from incurring bonded indebtedness
payable from the tax proceeds to fund those projects or programs or
from substituting revenue from the tax proceeds for current funding
commitments to the projects or programs. Existing law requires the
MTA to prepare an expenditure plan prior to submitting the tax
ordinance to voters, describing the projects and programs and their
cost and funding sources. Existing law also creates the Capital
Project Development Fund, into which the tax revenue is to be
deposited, and makes those moneys available for expenditure by the
MTA to fund the designated projects and programs.
This bill would modify these provisions to require the MTA tax
ordinance to specify that the tax is to be imposed for a period not
to exceed 30 years, and to require the MTA to include specified
projects and programs in its Long Range Transportation Plan. This
bill would also authorize the MTA to incur bonded indebtedness, as
specified, and would make other related changes.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 130350.5 of the Public Utilities Code is
amended to read:
130350.5. (a) In addition to any other tax that it is authorized
by law to impose, the Los Angeles County Metropolitan Transportation
Authority (MTA) may impose, in compliance with subdivision (b), a
transactions and use tax at a rate of 0.5 percent that is applicable
in the incorporated and unincorporated areas of the county.
(b) For purposes of the taxing authority set forth in subdivision
(a), all of the following apply:
(1) The tax shall be proposed in a transactions and use tax
ordinance, that conforms with Chapter 2 (commencing with Section
7261) to Chapter 4 (commencing with Section 7275), inclusive, of the
Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)
of Division 2 of the Revenue and Taxation Code), and that is
approved by a majority of the entire membership of the authority.
(2) The tax may be imposed only if the proposing ordinance is
approved by the voters in the manner as otherwise required by law
and, if so approved, shall become operative as provided in Section
130352.
(3) The proposing ordinance shall specify, in addition to the rate
of tax and other matters as required by the Transactions and Use Tax
Law, that the tax is to be imposed for a period of six and
one-half years or less not to exceed 30 years
and that the revenues derived from the tax, net of refunds and costs
of administration, are to be administered by the MTA
exclusively for the purposes of the "Capital Projects," as described
and in the amounts set forth in subparagraph (A), and for the
purposes of the "Capital Programs," as described and in the amounts
set forth in subparagraph (B) as provided in this
section. The MTA shall include the projects and programs described in
subparagraphs (A) and (B) in its Long Range Transportation Plan
(LRTP). The funding amounts specified in subparagraphs (A) and (B)
are minimum amounts that shall be allocated by the MTA from the
revenues derived from a tax imposed pursuant to this section. Nothing
in this section prohibits the MTA from allocating additional
revenues derived from the tax to these projects. The projects and
programs described in subparagraphs (A) and (B) shall be given the
highest priority in the LRTP for funding from the revenues derived
from a tax imposed pursuant to this section .
(A) Capital Projects.
(i) Exposition Boulevard Light Rail Transit Project from downtown
Los Angeles to Santa Monica. The sum of nine hundred twenty-five
million dollars ($925,000,000). This project shall be
completed by 2011, and shall be the first priority for federal
funding received for the capital projects in this subparagraph.
(ii) Crenshaw Metro Rapidway Transit
Corridor from Wilshire Boulevard to Los Angeles International
Airport along Crenshaw Boulevard. The sum of two hundred thirty-five
million five hundred thousand dollars ($235,500,000). This
project shall be completed by 2008.
(iii) San Fernando Valley North-South Rapidways. The sum of one
hundred million five hundred thousand dollars ($100,500,000).
This project shall be completed by 2009.
(iv) Metro Gold Line (Pasadena to Irwindale
Duarte ) Light Rail Transit Extension. The sum of three
hundred twenty-eight million dollars ($328,000,000). This
project shall be completed by 2012, and shall be the second priority
for federal funding received for the capital projects in this
subparagraph.
(v) Metro Center Regional Connector.
The sum of one hundred sixty million dollars ($160,000,000).
This project shall be completed by 2012.
(vi) Metro Red Line Westside Subway
Extension to Fairfax Avenue . The sum of nine
hundred million dollars ($900,000,000). This project shall
be completed by 2012.
(vii) State Highway Route 5 Carmenita Road Interchange
Improvement. The sum of one hundred thirty-eight million dollars
($138,000,000).
(viii) State Highway Route 5 Capacity Enhancement (State Highway
Route 134 to State Highway Route 170, including access improvement
for Empire Avenue). The sum of two hundred seventy-one million five
hundred thousand dollars ($271,500,000).
(ix) State Highway Route 5 Capacity Enhancement (State Highway
Route 605 to the Orange County line, including improvements to the
Valley View Interchange). The sum of two hundred sixty-four million
eight hundred thousand dollars ($264,800,000).
(x) State Highway Route 5/State Highway Route 14 Capacity
Enhancement. The sum of ninety million eight hundred thousand dollars
($90,800,000).
(xi) Capital Project Contingency Fund. The sum of one hundred
seventy-three million dollars ($173,000,000).
(B) Capital Programs.
(i) Alameda Corridor East Grade Separations. The sum of two
hundred million dollars ($200,000,000).
(ii) MTA and Municipal Regional Clean Fuel Bus Capital (Facilities
and Rolling Stock). The sum of one hundred fifty million dollars
($150,000,000). The first priority for the expenditure of
these funds shall be satisfaction by the MTA of the requirements of
the Consent Decree between the MTA and the Labor Community and
Strategy Center, et al., including the purchase of the entire number
of buses required to comply with the decree.
(iii) Countywide Soundwall Construction (MTA Regional List and
Monterey Park/State Highway Route 60). The sum of two hundred fifty
million dollars ($250,000,000).
(iv) Local return for major street resurfacing, rehabilitation,
and reconstruction. The sum of two hundred fifty million dollars
($250,000,000).
(v) Metrolink Capital Improvements. The sum of seventy million
dollars ($70,000,000).
(vi) Eastside Light Rail Access. The sum of thirty million dollars
($30,000,000).
(vii) Capital Program administration. The sum of ten million
dollars (10,000,000). The MTA shall use these funds for the
administration of the Capital Program.
(c) The MTA may not incur bonded indebtedness
payable from the proceeds of the tax provided by this section for the
funding of the projects and programs specified in this section
, or . The MTA shall not loan money
from the proceeds to other projects or programs in advance of
completing the projects and programs in subparagraphs (A) and (B) of
paragraph (3) of subdivision (b). The MTA shall complete all projects
and programs in subparagraphs (A) and (B) of paragraph (3) of
subdivision (b) as a condition of the use and expenditure of the
proceeds of the tax. The MTA shall maintain the current amount of any
funding for the projects and programs specified in this section
received from its sources other than the proceeds
of the tax, and may not reallocate money that is already allocated
for those projects and programs to other projects or uses.
(d) Notwithstanding Section 7251.1 of the Revenue and Taxation
Code, the tax rate authorized by this section may not be considered
for purposes of the combined rate limit established by that section.
(e) A jurisdiction or recipient is eligible to receive funds from
the local return program, described in clause (iv) of subparagraph
(B) of paragraph (3) of subdivision (b), only if it continues to
contribute to that program an amount that is equal to its existing
commitment of local funds or other available funds. The MTA may
develop guidelines which, at a minimum, specify maintenance of effort
requirements for the local return program, matching funds, and
administrative requirements for the recipients of revenue derived
from the tax.
(f) Prior to submitting the ordinance to the voters, the MTA shall
adopt an expenditure plan for the revenues derived from the tax. The
expenditure plan shall describe the specified projects and programs
listed in paragraph (3) of subdivision (b), the estimated total cost
for each project and program, funds other than the tax revenues that
the MTA anticipates will be expended on the projects and programs,
and the schedule during which the MTA anticipates funds will be
available for each project and program. The MTA shall also
identify in its expenditure plan the expected completion dates for
each project described in subparagraph (A) of paragraph (3) of
subdivision (b). To be eligible for proceeds
to receive revenues derived from the tax, an agency
sponsoring a capital project or capital program shall submit to the
MTA an expenditure plan for its project or program containing the
same elements as the expenditure plan that MTA is required by this
subdivision to prepare.
(g) The MTA shall establish and administer the
a Capital Project Development Fund. The revenue derived
from the tax shall be deposited into this fund. The moneys in the
fund shall be available to the MTA only to meet
expenditure and cash flow cashflow
needs of the capital projects and capital programs described in
subparagraphs (A) and (B) of paragraph (3) of subdivision (b) .
In the event that there are tax revenues in excess of the necessary
amounts as set forth in the expenditure plan to complete the projects
and programs described in subparagraphs (A) and (B) of paragraph (3)
of subdivision (b), the excess revenues may simultaneously be used
to complete other projects and programs in the LRTP
, including the replacement of federal or state funds if the amount
of those federal or state funds received by the MTA is
less than anticipated in the expenditure plan. If the sales
tax revenue from this section is less than that needed to meet these
expenditure and cash flow needs, the MTA shall supplement the sales
tax revenue with money from other sources available to the MTA. Any
funds remaining in the fund shall be allocated in equal amounts of 25
percent each to the MTA and to the Municipal Clean Fuel Bus Capital,
local return, and Countywide Soundwall programs as described in
subparagraph (B) of paragraph (3) of subdivision (b).
(h) If the total amount of revenue received from the tax
exceeds the amount in the MTA's expenditures plan or if
other funds , including, but not limited to, funds under the
Traffic Congestion Relief Act of 2000 (Chapter 4.5 (commencing with
Section 14556) of Part 5.3 of Division 3 of Title 2 of the Government
Code), become available and are allocated to complete
capital projects or capital programs, as described in subparagraphs
(A) and (B) of paragraph (3) of subdivision (b), the MTA may expend
the surplus tax revenue on its next highest priority projects in
the LRTP .
SEC. 2. The Legislature finds and declares that the tax authority
set forth in Section 130350.5 of the Public Utilities Code, as
amended by this act, is intended to provide those funds necessary to
complete the capital projects and capital programs described in that
section, and that the expenditure plan required by that section is
intended to be structured to provide appropriate funding guarantees
for the completion of each described project or program.
SEC. 3. 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 timely address the urgent transportation
infrastructure needs facing Los Angeles County, it is necessary that
this act go into immediate effect.