BILL ANALYSIS
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THIRD READING
Bill No: AB 30XXXX
Author: Assembly Budget Committee
Amended: 7/23/09 in Senate
Vote: 21
WITHOUT REFERENCE TO COMMITTEE
PRIOR VOTE NOT RELEVANT
SUBJECT : Budget Act of 2009: allocations of gas tax
funds
SOURCE : Author
DIGEST : Senate Floor Amendments of 7/23/09 delete the
prior version of the bill expressing the intent of the
Legislature to enact statutory changes relating to the 2009
Budget Act.
This bill now provides the necessary statutory changes in
the area of transportation in order to amend the 2009
Budget Act.
ANALYSIS : This trailer bill relates to reallocation of
gas tax funding in the Highway Users Tax Account (HUTA) and
does the following:
1. Shifts local gas tax revenue to State bond debt
payments . Shifts $971 million in gasoline excise tax
revenue from cities and counties to the General Fund for
CONTINUED
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reimbursement of transportation-related
general-obligation bond payments. In 2010-11, an
additional $750 million will be shifted for the same
purpose, but in 2011-12, and thereafter, the full
current-law allocation will be made to cities and
counties. The amount shifted is within the limit set by
Article XIX of the Constitution, no more that 25 percent
of specified transportation revenue can be directed to
bond debt service. This funding is in HUTA and will
otherwise fund local street and road projects.
2. Exemptions from the shift . Local cities and counties
may be exempted in 2009-10 from the shift under two
exemption provisions:
A. Small cities exemption, defined as those who
received the minimum Proposition 1B bond fund
allocation of $400,000 are exempted. This
exemption reduces the General Fund benefit by about
$15 million.
B. Extreme hardship exemption, as determined by the
Director of Finance, an exemption may be provided
for cities and counties for bankruptcy or similar
extreme hardship.
3. Declaratory Language . Declares that the redistribution
of revenue in this act represents another basis for an
equitable, geographical, and jurisdictional distribution
of gasoline excise tax funds. The Legislature finds and
declares that this new allocation will give equal
consideration to the transportation needs of all areas
of the State and all segments of the population
consistent with the orderly achievement of the adopted
local, regional, and statewide goals for ground
transportation in local general plans, regional
transportation plans, and the California transportation
plan. Specifies how specific components of the new
allocation are consistent with these declarations.
Article XIX, Section 4, of the Constitution requires
that any new allocation of fuel taxes achieves these
goals.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
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Local: No
DLW:do 7/23/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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