BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  AB 2704|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  AB 2704
          Author:   Gaines (R)
          Amended:  4/8/10 in Assembly
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  6-1, 6/15/10
          AYES:  Lowenthal, Huff, Ashburn, DeSaulnier, Harman,  
            Simitian
          NOES:  Kehoe
          NO VOTE RECORDED:  Oropeza, Pavley

           ASSEMBLY FLOOR  :  73-0, 4/22/10 - See last page for vote


           SUBJECT  :    Local government streets and road funds

           SOURCE  :     Author


           DIGEST  :    This bill continues the allocation of local snow  
          removal funds. 

           ANALYSIS  :    

          Existing law:

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

          2. Deposits the excise tax revenue in the Motor Vehicle  
             Fuel Account and transfers the revenue to the Highway  
             Users Tax Account (HUTA). 
                                                           CONTINUED





                                                               AB 2704
                                                                Page  
          2


          3. Allocates approximately 65 percent of the HUTA funds to  
             the State Highway Account and approximately 35 percent  
             to cities and counties for street and road purposes with  
             disbursements made to cities and counties monthly  
             according to various formulas. 

          4. Apportions HUTA funds annually to cover 80 percent of  
             each county's cost of snow removal above $5,000 but not  
             to exceed $7 million statewide. 

          5. Apportions HUTA funds to cover one-half of the cost of  
             snow removal above $5,000 to each city and city and  
             county that provides snow removal services. 

          This bill requires the continuance of funding for local  
          street and road snow removal in the event HUTA funds are  
          diverted for other purposes. 

           Background  

          Last year, SB 30 X4 (Ducheny) passed the Senate.  The bill  
          contained a provision diverting HUTA funds to the state  
          General Fund.  The Assembly did not take this bill up for a  
          vote, and so it failed to pass the Legislature. This year,  
          AB 5 X8 (Assembly Budget Committee), Chapter 1, Statutes of  
          2009-10, Eighth Extraordinary Session, delays HUTA payments  
          to cities and counties for the months of July 2010 through  
          March 2011.  HUTA payments for these months will be made in  
          one lump sum at the end of April 2011. Local agencies will  
          receive no HUTA funds for snow removal until after the snow  
          season. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  6/15/10)

          California State Association of Counties
          City of South Lake Tahoe
          City of Truckee
          Nevada County Board of Supervisors
          Regional Council of Rural Counties
          Siskiyou County Board of Supervisors

                                                           CONTINUED





                                                               AB 2704
                                                                Page  
          3

          Town of Mammoth Lakes
          Town of Truckee


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Bradford,  
            Brownley, Buchanan, Charles Calderon, Carter, Chesbro,  
            Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore,  
            Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes,  
            Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore,  
            Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Jeffries,  
            Jones, Knight, Lieu, Logue, Bonnie Lowenthal, Ma,  
            Mendoza, Miller, Monning, Nava, Nestande, Niello,  
            Nielsen, V. Manuel Perez, Portantino, Ruskin, Salas,  
            Saldana, Silva, Skinner, Smyth, Solorio, Audra  
            Strickland, Swanson, Torlakson, Torres, Torrico, Tran,  
            Villines, Yamada, John A. Perez
          NO VOTE RECORDED:  Bass, Blumenfield, Caballero, Huber,  
            Huffman, Norby, Vacancy


          JJA:mw  6/15/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****


















                                                           CONTINUED