BILL NUMBER: AB 2321 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 4, 2008
AMENDED IN SENATE JULY 2, 2008
AMENDED IN ASSEMBLY MAY 28, 2008
AMENDED IN ASSEMBLY MAY 23, 2008
AMENDED IN ASSEMBLY APRIL 21, 2008
INTRODUCED BY Assembly Members Feuer, Levine, and Davis
FEBRUARY 21, 2008
An act to amend Section 130350.5 of the Public Utilities Code,
relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2321, as amended, 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.
Vote: majority. 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 two-thirds of the voters , in the manner as
otherwise required by law , voting on this measure, in an
election held on November 4, 2008, or at a subsequent election
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 not to exceed 30
years and that the revenues derived from the tax, net of
refunds and costs of administration, the net revenues
derived from the tax are to be administered by the MTA as
provided in this section. Net revenues shall be defined as all
revenues derived from the tax less any refunds, costs of
administration by the State Board of Equalization, and costs of
administration by the MTA. Such costs of administration by the MTA
shall not exceed one and one-half percent (1.5%) of the revenues
derived from the tax. The MTA shall, during the period in
which the ordinance is operative, allocate 20 percent of all
net revenues derived from the tax for bus operations to
all eligible and included municipal transit operators in the County
of Los Angeles and to the MTA, in accordance with Section
99285, and 99285. However, the allocations to the MTA
and eligible and included municipal operators shall be made solely
from revenues derived from a tax imposed pursuant to this section,
and not from local discretionary sources. In addition to this amount,
the MTA shall allocate 5 percent of all net
revenues derived from the tax for rail operations. The MTA shall
include the projects and programs described in subparagraphs (A) and
(B) in the expenditure plan required under subdivision (f). The
MTA shall include all projects and programs described in the
expenditure plan required under subdivision (f) in its Long
Range Transportation Plan (LRTP). The priorities for projects
and programs described in subparagraphs (A) and (B) and in the
expenditure plan required under subdivision (f) shall be those set
forth in the expenditure plan. The funding amounts specified in
subparagraphs (A) and (B) are minimum amounts that shall be
allocated by the MTA from the net revenues derived from a
tax imposed pursuant to this section. Nothing in this section
prohibits the MTA from allocating additional net 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. to these
projects and programs.
(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).
(ii) Crenshaw 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).
(iii) San Fernando Valley North-South Rapidways. The sum of one
hundred million five hundred thousand dollars ($100,500,000).
(iv) Metro Gold Line (Pasadena to Azusa)
Claremont) Light Rail Transit Extension. The sum of
three hundred twenty-eight million dollars ($328,000,000)
seven hundred thirty-five million dollars ($735,000,000). .
(v) Metro Regional Connector. The sum of one hundred sixty million
dollars ($160,000,000).
(vi) Metro Westside Subway Extension. The sum of nine hundred
million dollars ($900,000,000).
(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).
(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 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. 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 proceeds of the
tax provided by this section pursuant to the bond issuance provisions
of Section 130500 et seq. of the Public Utilities Code, and any
successor act. The MTA shall include in the expenditure plan,
required under subdivision (f), the amount of net revenue specified
for 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 that has been previously programmed or
received from sources other than the proceeds of the tax, and may not
reallocate money that is already allocated
has been previously programmed or received 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
shall 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 that , 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 net revenues derived
from the tax. The expenditure plan shall describe
include, in addition to other projects and programs identified
by the MTA, 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 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 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
to meet expenditure and 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.
(h) If other funds 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.
(i) (1) Notwithstanding subdivision (h), if a capital project or
capital program, as described in subparagraphs (A) and (B) of
paragraph (3) of subdivision (b), has been fully funded from other
sources on or before December 31, 2008, the funds designated to the
project or program in subparagraphs (A) and (B) of paragraph (3) of
subdivision (b) shall remain in the subregion in which the project or
program is located and shall be allocated to other projects or
programs in the subregion.
(2) A capital project or capital program funded with reallocated
funds pursuant to paragraph (1) shall be included in the adopted 2008
Long Range Transportation Plan or the successor plan and shall be of
regional significance.
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.
(g) The MTA shall establish and administer a sales tax revenue
fund. The net revenue derived from the tax, after payment of any debt
services and related obligations, shall be credited to this fund.
The moneys in the fund shall be available to the MTA to meet
expenditure and cashflow needs of the projects and programs described
in the expenditure plan required under subdivision (f). In the event
that there are net revenues in excess of the amount necessary to
provide the amount of net revenues specified in the expenditure plan
for the projects and programs described therein, the MTA may expend
the excess net revenues on projects and programs in the expenditure
plan or the LRTP. In the event that projects and programs in the
expenditure plan are completed without the expenditure of the amount
of net revenues specified, the MTA shall expend the excess net
revenues on projects and programs in the expenditure plan or the LRTP
within the same subregion as the project or program that is
completed. For the purposes of this section, "subregion" shall be
defined in the LRTP.
(h) If other funds become available and are allocated to provide
all or a portion of the amount of net revenues specified in the
expenditure plan for the projects or programs described therein, the
MTA may expend the surplus net revenues on other projects and
programs in the expenditure plan or the LRTP.
(i) (1) Notwithstanding subdivision (h), if a capital project or
capital program described in clauses (i) to (x), inclusive, of
subparagraph (A) of paragraph (3) of subdivision (b) and clauses (i)
and (vi) of subparagraph (B) of paragraph (3) of subdivision (b), has
been fully funded from other sources on or before December 31, 2008,
the funds designated to the project or program in clauses (i) to
(x), inclusive, of subparagraph (A) of paragraph (3) of subdivision
(b) and clauses (i) and (vi) of subparagraph (B) of paragraph (3) of
subdivision (b) shall remain in the subregion in which the project or
program is located and shall be allocated to other projects or
programs in the subregion prior to the expiration of the tax.
(2) A capital project or capital program funded with reallocated
funds pursuant to paragraph (1) shall be included in the adopted 2008
Long Range Transportation Plan or the successor plan and shall be of
regional significance as determined by the MTA. For purposes of this
subdivision, "subregions" means the subregions as defined in the
LRTP in effect as of January 1, 2008.
(j) Notwithstanding Section 130354, revenues raised under this
section may be used to facilitate the transportation of people and
goods within Los Angeles County. The use of the revenues shall not be
limited to public transit purposes.
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 provide the amount of net revenues specified for
the capital projects and capital programs described in the
expenditure plan required pursuant to Section 130350.5 of the Public
Utilities Code, as amended by this act.