BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 2704
                                                                  Page  1

          Date of Hearing:   April 19, 2010

                               Bonnie Lowenthal, Chair
                    AB 2704 (Gaines) - As Amended:  April 8, 2010
          SUBJECT  :   Local government funds:  snow removal

           SUMMARY  :  Requires, notwithstanding any other provision of law,  
          that funding for local snow removal must be maintained as  
          provided for under existing law.  

           EXISTING LAW:  

          1)Imposes an excise tax of 18
 per gallon on gasoline and diesel              fuel.  

          2)Directs revenue from the gasoline and diesel fuel excise tax  
            to be deposited in the Motor Vehicle Fuel Account and  
            eventually transferred to the Highway Users Tax Account  

          3)Of the funds deposited in HUTA, allocates about 65% of the  
            funds to the California Department of Transportation  
            (Caltrans) and about 35% to cities and counties, for  
            transportation purposes.  

          4)Generally directs HUTA disbursements to be made monthly;  
            however, provided temporary deferrals of HUTA disbursements to  
            cities and counties during recent fiscal years because of the  
            state's cash shortfall.  

          5)Apportions up to $7 million annually to reimburse counties for  
            eligible snow removal activities on county roads.  

          6)Apportions to a city and a city and county an amount equal to  
            one-half of the amount of its snow removal expenditures over  
            $5,000 from the previous year.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  According to the author, revenues to local  
          governments have declined dramatically since the collapse of the  
          real estate market.  Furthermore, budget woes at the state level  
          have threatened funding for cities and counties snow removal  


                                                                  AB 2704
                                                                  Page  2

          activities.  The author asserts that, if funding for snow  
          removal is cut off, local economies would be devastated and  
          there would be disastrous results for public education, public  
          safety, and travel in general.  

          This bill seeks to ensure that, at a minimum, HUTA funding, to  
          cities and counties for snow removal activities is assured.  

           Committee concern:   It is doubtful that this bill will have any  
          real, practical effect.  The reality is, should the Legislature  
          have to take action to suspend snow removal reimbursements for  
          cities and counties, any subsequent Budget Act or trailer bill  
          would supersede provisions of this bill.  


          California State Association of Counties
          City of Truckee
          Nevada County Board of Supervisors
          Regional Council of Rural Counties
          Town of Mammoth Lakes

          None on file

          Analysis Prepared by  :   Janet Dawson / TRANS. / (916) 319-2093