BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 2704
                                                                  Page  1
          AB 2704 (Gaines)
          As Amended  April 8, 2010
          Majority vote 

           TRANSPORTATION      11-0                                        
          |Ayes:|Bonnie Lowenthal, Jeffries,  | |                          |
          |     |Bill Berryhill, Buchanan,    | |                          |
          |     |Eng, Furutani, Galgiani,     | |                          |
          |     |Hayashi, Miller, Niello,     | |                          |
          |     |Solorio                      | |                          |
          |     |                             | |                          |
           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 (HUTA).  

          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  

          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


                                                                  AB 2704
                                                                  Page  2
           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 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.   
          However, the real, practical effect of the bill is questionable  
          because, should the Legislature have to take action to suspend snow  
          removal reimbursements for cities and counties, any subsequent  
          Budget Act or trailer bill could supersede provisions of this bill.  

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