BILL NUMBER: SBX8 6 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY FEBRUARY 22, 2010
INTRODUCED BY Committee on Budget and Fiscal Review
JANUARY 20, 2010
An act relating to the Budget Act of 2009.
An act to add Section 41204.2 to the Education Code, to amend
Section 16965 of, and to add Chapter 2 (commencing with Section
55830) to Part 3 of Division 2 of Title 5 of, the Government Code, to
amend Sections 99312 and 99315 of the Public Utilities Code, to
amend Sections 7360, 23663, and 60050 of, to add Sections 6051.8,
6201.8, 6357.7, 7102.1, 7361.1, 7653.1, 17276.12, and 24416.12 to,
and to repeal Section 7103 of, the Revenue and Taxation Code, and to
amend Sections 183.1 and 2103 of the Streets and Highways Code,
relating to transportation finance, and making an appropriation
therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 6, as amended, Committee on Budget and Fiscal Review.
Budget Act of 2009. Transportation finance.
(1) Existing law requires the Director of Finance to make certain
adjustments in one of the formulas used in computing the state's
obligation under the California Constitution to provide funding for
school districts and community college districts so as to ensure that
the modifications in property tax revenue allocation requirements
that were made by prior enactments do not have a net fiscal impact on
school districts or community college districts, or upon the state's
funding obligation to those districts.
This bill would additionally specify adjustments on the
calculation of the state's constitutional funding obligations that
are related to the change in taxes made by this bill.
(2) The Sales and Use Tax Law imposes a tax on retailers measured
by the gross receipts from the sale of tangible personal property
sold at retail in this state, or on the storage, use, or other
consumption in this state of tangible personal property purchased
from a retailer for storage, use, or other consumption in this state.
Tangible personal property includes motor vehicle fuel, commonly
referred to as gasoline, and including aviation gasoline. Existing
law, pursuant to Article XIX B of the California Constitution,
requires a portion of the revenues from the sales and use tax on the
sale of, and the storage, use or other consumption of, motor vehicle
fuel to be deposited in the Transportation Investment Fund to be used
for specified highway, local street and road, and mass
transportation purposes.
This bill would, on and after July 1, 2010, exempt from those
taxes the gross receipts from the sale of, and the storage, use, or
other consumption in this state of, motor vehicle fuel, thereby
eliminating funding from this revenue source for those transportation
programs. This exemption would not apply to local sales and use
taxes imposed under the Bradley-Burns Uniform Local Sales and Use Tax
Law or transactions and use taxes, imposed in accordance with the
Transactions and Use Tax Law, and specified state sales and use
taxes.
This bill, on or after July 1, 2011, would impose an additional
1.75% tax on the sale of, and the storage, use, and other consumption
in this state of diesel fuel with revenues from those taxes
transferred to the Public Transportation Account.
(3) The Motor Vehicle Fuel Tax Law and the Diesel Fuel Tax Law
each impose a tax at the rate of $0.18 per gallon on the removal,
entry, sale, delivery, or specified use of motor vehicle fuel,
commonly referred to as gasoline, and including aviation gasoline,
and diesel fuel, and also imposes a tax at the rate of $0.02 per
gallon of aircraft jet fuel sold to a fuel user or used by a dealer.
Article XIX of the California Constitution requires state-imposed
excise tax revenues from fuel used in motor vehicles upon public
streets and highways to be used solely for highway and mass transit
guideway purposes.
This bill would increase the rate of tax on motor vehicle fuel
from $0.18 per gallon to $0.309 per gallon between July 1, 2010, and
July 1, 2011, as specified. The bill would impose a floor stock tax
equal to $0.129 per gallon for the privilege of storing motor vehicle
fuel and diesel fuel on July 1, 2010. Beginning with the 2011-12
fiscal year, and each fiscal year thereafter, the bill would require
the Board of Equalization to annually compute the motor vehicle fuel
tax rate consistent with the requirement that the estimated revenues
from an increase shall not exceed the estimated revenues from the
repealed sales and use tax on the sale of, or the storage, use, or
other consumption of, motor vehicle fuel, as provided. The new
revenues would first be used to reimburse the General Fund for the
amount needed for debt service on specified general obligation
transportation bonds, with 30% of remaining revenues to be
transferred to the State Highway Account to fund projects in the
state transportation improvement program (STIP), 30% to be
transferred to the State Highway Account for the State Highway
Operation and Protection Program (SHOPP), and the remaining 40% to be
apportioned to cities and counties for local street and road
purposes pursuant to a specified formula, thereby resulting in an
appropriation. However, in the 2010-11 fiscal year, 50% of the
remaining revenues would be allocated to the STIP and 50% would be
allocated to local streets and roads.
This bill would, on July 1, 2011, reduce the rate of tax on diesel
fuel from $0.18 per gallon to $0.136 per gallon, subject to
adjustment, as specified.
(4) Existing law, pursuant to Proposition 116 of 1990, creates the
Public Transportation Account as a trust fund, with revenues in the
account to be used solely for mass transportation and transportation
planning purposes, and requires revenues from specified portions of
the state sales and use tax on the sale of, and the storage, use or
other consumption of, motor vehicle fuel and diesel fuel to be
transferred to the account. Existing law also requires revenues
deposited in the State Highway Account from various miscellaneous
sources that are not subject to Article XIX of the California
Constitution to be transferred to the Public Transportation Account.
This bill, pursuant to the exemptions described in (2) above,
would eliminate the sales and use tax revenues from the sale of, and
the storage, use or other consumption of, motor vehicle fuel which
are currently deposited in the Public Transportation Account, thereby
eliminating funding from this source for the account. This bill
would also eliminate the transfer of miscellaneous revenues from the
State Highway Account to the Public Transportation Account in the
2010-11 fiscal year, and would instead transfer those revenues to the
Transportation Debt Service Fund for reimbursement of the General
Fund for payment of debt service for specified general obligation
rail and transit bonds. This bill would require the Controller to
retransfer to the State Highway Account $78,903,000 from the Public
Transportation Account that was transferred to that account in the
2009-10 fiscal year from the miscellaneous revenues in the State
Highway Account, and to transfer those revenues from the State
Highway Account to the Transportation Debt Service Fund for
reimbursement for debt service on specified general obligation rail
and transit bonds. This bill would also reduce the amount to be
transferred during the 2009-10 fiscal year from the Public
Transportation Account to the Transportation Debt Service Fund for
reimbursement of the General Fund for specified general obligation
rail and transit bonds from $225,044,000 to $142,058,000. This bill,
in the 2010-11 fiscal year, would transfer $254,222,000 from the
Public Transportation Account to the Transportation Debt Service Fund
for reimbursement of the General Fund for payment of debt service
for specified general obligation rail and transit bonds.
(5) Existing law specifies the authorized expenditures from the
Public Transportation Account. Existing law creates the State Transit
Assistance Program as one of the eligible transit programs to be
funded with 50% of specified revenues in the account. The program
provides grants to eligible local agencies under 2 different
formulas. Existing law, however, suspends the program for the 2009-10
to 2012-13 fiscal years, inclusive. The remaining funds in the
account are allocated to state-level mass transportation and
transportation planning programs.
This bill would lift the suspension of the State Transit
Assistance Program and appropriate $400,000,000 from the Public
Transportation Account for the program in the 2009-10 fiscal year
under the applicable formulas. The bill would provide for no further
funding of the State Transit Assistance Program in the 2010-11 fiscal
year. For 2010-11 and subsequent fiscal years, the bill would
continuously appropriate 3 /4 of specified revenues in the Public
Transportation Account under the applicable formulas to the State
Transit Assistance Program.
(6) Existing law requires certain motor vehicle fuel sales tax
revenues commonly known as the "spillover" that would otherwise be
deposited in the Public Transportation Account to instead be
deposited in the Mass Transportation Fund, for expenditure on various
programs and for transfer to the Transportation Debt Service Fund.
This bill would repeal the provisions governing the expenditures
from the Mass Transportation Fund.
(7) Existing law requires certain transportation planning
activities by regional transportation planning agencies designated by
the Director of Transportation, including development of a regional
transportation plan. Certain of these agencies are designated under
federal law as metropolitan planning organizations.
This bill would authorize a metropolitan planning organization,
subject to voter approval, to impose a light-duty vehicle mitigation
fee in all or part of the region within its jurisdiction. The fee
would be imposed on purchasers of motor vehicle fuel for use in cars
and light trucks and would be collected from those purchasers by the
retailer, and would define motor vehicle fuel for these purposes to
include gasoline and diesel.
The bill would provide for the fee to be imposed by the
metropolitan planning organization, with fee revenues to be used for
transit, bicycle, and pedestrian programs that have been identified
in the regional transportation plan. The bill would require a finding
by the metropolitan planning organization that the programs cost
effectively mitigate or avoid pollution from criteria air pollutants
and greenhouse gas emissions directly associated with the operation
of cars and light trucks, that the programs are consistent with a
sustainable communities or alternative planning strategy adopted in
conjunction with the regional transportation plan that would achieve
the greenhouse gas emissions reduction targets adopted by the State
Air Resources Board, and that there is a nexus between the payers of
the fee and the mitigation or avoidance, as funded by the fee, of
pollution from criteria air pollutants and greenhouse gas emissions.
The bill would require the board of supervisors of each county in the
jurisdiction of the metropolitan planning organization where the fee
is to be imposed, upon request of the organization, to submit a
ballot measure to the voters. The ballot measure would require
approval of a majority of the voters of the affected county. The bill
would require the metropolitan planning organization to contract
with the State Board of Equalization for administration of the fee
pursuant to the Fee Collections Procedures Law, a violation of which
is a crime, thereby imposing a state-mandated local program. In
certain counties, the county transportation commission rather than
the metropolitan planning organization, would impose the fee under
these provisions.
(8) The Personal Income Tax Law and the Corporation Tax Law allow
individual and corporate taxpayers to utilize net operating losses
and carryovers of those losses for purposes of offsetting their
individual and corporate tax liabilities. Those laws disallow the
deduction for net operating losses and net operating loss carryovers
in the 2008 and 2009 taxable years. Those laws extend the carryover
period for those net operating losses, thus allowing the taxpayers to
have the same number of years to utilize the deduction as they would
have if the change had not been enacted. Those laws, for net
operating losses incurred in taxable years beginning on or after
January 1, 2010, extend the carryover period to 20 years.
This bill would limit the allowable deductions for net operating
losses to a maximum of 68% of the taxpayer's income, for taxable
years beginning on or after January 1, 2010, and before January 1,
2011.
(9) The Corporation Tax Law, for taxable years beginning on or
after January 1, 2008, allows a credit to be assigned to an eligible
assignee, as defined, for use by that assignee in a taxable year
beginning on or after January 1, 2010.
This bill would delay the use of the assigned credit by an
eligible assignee to taxable years beginning on or after January 1,
2011.
(10) Existing law, the Clean Air and Transportation Improvement
Act of 1990, authorizes the issuance of $1.99 billion in general
obligation bonds for rail and transit purposes. Existing law provides
for the California Transportation Commission to allocate bond funds
to eligible projects.
Existing law, the Highway Safety, Traffic Reduction, Air Quality,
and Port Security Bond Act of 2006, authorizes the issuance of
$19.925 billion in general obligation bonds for various
transportation purposes. Existing law designates an administrative
agency that is responsible for programming these bond funds for the
various categories of projects funded by the act. Existing law
authorizes a regional or local agency that is a lead agency for a
project to be funded under the act to apply to the administrative
agency for a letter of no prejudice that permits the applicant to
spend its own resources on the project and then to be reimbursed at a
later date when bond funds become available, subject to various
requirements and conditions.
This bill would enact similar provisions applicable to regional or
local agencies relative to projects to be funded by the Clean Air
and Transportation Improvement Act of 1990.
(11) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
(12) The California Constitution authorizes the Governor to
declare a fiscal emergency and to call the Legislature into special
session for that purpose. The Governor issued a proclamation
declaring a fiscal emergency, and calling a special session for this
purpose, on January 8, 2010.
This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on January 8, 2010,
pursuant to the California Constitution.
This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2009.
The California Constitution authorizes the Governor to declare a
fiscal emergency and to call the Legislature into special session for
that purpose. The Governor issued a proclamation declaring a fiscal
emergency, and calling a special session for this purpose, on January
8, 2010.
This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on January 8, 2010,
pursuant to the California Constitution.
Vote: majority. Appropriation: no yes
. Fiscal committee: no yes .
State-mandated local program: no yes .
SB 6, as amended, Committee on Budget and Fiscal Review.
Budget Act of 2009. Transportation finance.
(1) Existing law requires the Director of Finance to make certain
adjustments in one of the formulas used in computing the state's
obligation under the California Constitution to provide funding for
school districts and community college districts so as to ensure that
the modifications in property tax revenue allocation requirements
that were made by prior enactments do not have a net fiscal impact on
school districts or community college districts, or upon the state's
funding obligation to those districts.
This bill would additionally specify adjustments on the
calculation of the state's constitutional funding obligations that
are related to the change in taxes made by this bill.
(2) The Sales and Use Tax Law imposes a tax on retailers measured
by the gross receipts from the sale of tangible personal property
sold at retail in this state, or on the storage, use, or other
consumption in this state of tangible personal property purchased
from a retailer for storage, use, or other consumption in this state.
Tangible personal property includes motor vehicle fuel, commonly
referred to as gasoline, and including aviation gasoline. Existing
law, pursuant to Article XIX B of the California Constitution,
requires a portion of the revenues from the sales and use tax on the
sale of, and the storage, use or other consumption of, motor vehicle
fuel to be deposited in the Transportation Investment Fund to be used
for specified highway, local street and road, and mass
transportation purposes.
This bill would, on and after July 1, 2010, exempt from those
taxes the gross receipts from the sale of, and the storage, use, or
other consumption in this state of, motor vehicle fuel, thereby
eliminating funding from this revenue source for those transportation
programs. This exemption would not apply to local sales and use
taxes imposed under the Bradley-Burns Uniform Local Sales and Use Tax
Law or transactions and use taxes, imposed in accordance with the
Transactions and Use Tax Law, and specified state sales and use
taxes.
This bill, on or after July 1, 2011, would impose an additional
1.75% tax on the sale of, and the storage, use, and other consumption
in this state of diesel fuel with revenues from those taxes
transferred to the Public Transportation Account.
(3) The Motor Vehicle Fuel Tax Law and the Diesel Fuel Tax Law
each impose a tax at the rate of $0.18 per gallon on the removal,
entry, sale, delivery, or specified use of motor vehicle fuel,
commonly referred to as gasoline, and including aviation gasoline,
and diesel fuel, and also impose a tax at the rate of $0.02 per
gallon of aircraft jet fuel sold to a fuel user or used by a dealer.
Article XIX of the California Constitution requires state-imposed
excise tax revenues from fuel used in motor vehicles upon public
streets and highways to be used solely for highway and mass transit
guideway purposes.
This bill would increase the rate of tax on motor vehicle fuel
from $0.18 per gallon to $0.309 per gallon between July 1, 2010, and
July 1, 2011, as specified. The bill would impose a floor stock tax
equal to $0.129 per gallon for the privilege of storing motor vehicle
fuel and diesel fuel on July 1, 2010. Beginning with the 2011-12
fiscal year, and each fiscal year thereafter, the bill would require
the Board of Equalization to annually compute the motor vehicle fuel
tax rate consistent with the requirement that the estimated revenues
from an increase shall not exceed the estimated revenues from the
repealed sales and use tax on the sale of, or the storage, use, or
other consumption of, motor vehicle fuel, as provided. The new
revenues would first be used to reimburse the General Fund for the
amount needed for debt service on specified general obligation
transportation bonds, with 30% of remaining revenues to be
transferred to the State Highway Account to fund projects in the
state transportation improvement program (STIP), 30% to be
transferred to the State Highway Account for the State Highway
Operation and Protection Program (SHOPP), and the remaining 40% to be
apportioned to cities and counties for local street and road
purposes pursuant to a specified formula, thereby resulting in an
appropriation. However, in the 2010-11 fiscal year, 50% of the
remaining revenues would be allocated to the STIP and 50% would be
allocated to local streets and roads.
This bill would, on July 1, 2011, reduce the rate of tax on diesel
fuel from $0.18 per gallon to $0.136 per gallon, subject to
adjustment, as specified.
(4) Existing law, pursuant to Proposition 116 of 1990, creates the
Public Transportation Account as a trust fund, with revenues in the
account to be used solely for mass transportation and transportation
planning purposes, and requires revenues from specified portions of
the state sales and use tax on the sale of, and the storage, use or
other consumption of, motor vehicle fuel and diesel fuel to be
transferred to the account. Existing law also requires revenues
deposited in the State Highway Account from various miscellaneous
sources that are not subject to Article XIX of the California
Constitution to be transferred to the Public Transportation Account.
This bill, pursuant to the exemptions described in (2) above,
would eliminate the sales and use tax revenues from the sale of, and
the storage, use or other consumption of, motor vehicle fuel which
are currently deposited in the Public Transportation Account, thereby
eliminating funding from this source for the account. This bill
would also eliminate the transfer of miscellaneous revenues from the
State Highway Account to the Public Transportation Account in the
2010-11 fiscal year, and would instead transfer those revenues to the
Transportation Debt Service Fund for reimbursement of the General
Fund for payment of debt service for specified general obligation
rail and transit bonds. This bill would require the Controller to
retransfer to the State Highway Account $78,903,000 from the Public
Transportation Account that was transferred to that account in the
2009-10 fiscal year from the miscellaneous revenues in the State
Highway Account, and to transfer those revenues from the State
Highway Account to the Transportation Debt Service Fund for
reimbursement for debt service on specified general obligation rail
and transit bonds. This bill would also reduce the amount to be
transferred during the 2009-10 fiscal year from the Public
Transportation Account to the Transportation Debt Service Fund for
reimbursement of the General Fund for specified general obligation
rail and transit bonds from $225,044,000 to $142,058,000. This bill,
in the 2010-11 fiscal year, would transfer $254,222,000 from the
Public Transportation Account to the Transportation Debt Service Fund
for reimbursement of the General Fund for payment of debt service
for specified general obligation rail and transit bonds.
(5) Existing law specifies the authorized expenditures from the
Public Transportation Account. Existing law creates the State Transit
Assistance Program as one of the eligible transit programs to be
funded with 50% of specified revenues in the account. The program
provides grants to eligible local agencies under 2 different
formulas. Existing law, however, suspends the program for the 2009-10
to 2012-13 fiscal years, inclusive. The remaining funds in the
account are allocated to state-level mass transportation and
transportation planning programs.
This bill would lift the suspension of the State Transit
Assistance Program and appropriate $400,000,000 from the Public
Transportation Account for the program in the 2009-10 fiscal year
under the applicable formulas. The bill would provide for no further
funding of the State Transit Assistance Program in the 2010-11 fiscal
year. For the 2011-12 fiscal year and subsequent fiscal years, the
bill would continuously appropriate 3/4 of specified revenues in the
Public Transportation Account under the applicable formulas to the
State Transit Assistance Program.
(6) Existing law requires certain motor vehicle fuel sales tax
revenues commonly known as the "spillover" that would otherwise be
deposited in the Public Transportation Account to instead be
deposited in the Mass Transportation Fund, for expenditure on various
programs and for transfer to the Transportation Debt Service Fund.
This bill would repeal the provisions governing the expenditures
from the Mass Transportation Fund.
(7) Existing law requires certain transportation planning
activities by regional transportation planning agencies designated by
the Director of Transportation, including development of a regional
transportation plan. Certain of these agencies are designated under
federal law as metropolitan planning organizations.
This bill would authorize a metropolitan planning organization,
subject to voter approval, to impose a light-duty vehicle mitigation
fee in all or part of the region within its jurisdiction. The fee
would be imposed on purchasers of motor vehicle fuel for use in cars
and light trucks and would be collected from those purchasers by the
retailer, and would define motor vehicle fuel for these purposes to
include gasoline and diesel.
The bill would provide for the fee to be imposed by the
metropolitan planning organization, with fee revenues to be used for
transit, bicycle, and pedestrian programs that have been identified
in the regional transportation plan. The bill would require a finding
by the metropolitan planning organization that the programs cost
effectively mitigate or avoid pollution from criteria air pollutants
and greenhouse gas emissions directly associated with the operation
of cars and light trucks, that the programs are consistent with a
sustainable communities or alternative planning strategy adopted in
conjunction with the regional transportation plan that would achieve
the greenhouse gas emissions reduction targets adopted by the State
Air Resources Board, and that there is a nexus between the payers of
the fee and the mitigation or avoidance, as funded by the fee, of
pollution from criteria air pollutants and greenhouse gas emissions.
The bill would require the board of supervisors of each county in the
jurisdiction of the metropolitan planning organization where the fee
is to be imposed, upon request of the organization, to submit a
ballot measure to the voters. The ballot measure would require
approval of a majority of the voters of the affected county. The bill
would require the metropolitan planning organization to contract
with the State Board of Equalization for administration of the fee
pursuant to the Fee Collections Procedures Law, a violation of which
is a crime, thereby imposing a state-mandated local program. In
certain counties, the county transportation commission rather than
the metropolitan planning organization, would impose the fee under
these provisions.
(8) The Personal Income Tax Law and the Corporation Tax Law allow
individual and corporate taxpayers to utilize net operating losses
and carryovers of those losses for purposes of offsetting their
individual and corporate tax liabilities. Those laws disallow the
deduction for net operating losses and net operating loss carryovers
in the 2008 and 2009 taxable years. Those laws extend the carryover
period for those net operating losses, thus allowing the taxpayers to
have the same number of years to utilize the deduction as they would
have if the change had not been enacted. Those laws, for net
operating losses incurred in taxable years beginning on or after
January 1, 2010, extend the carryover period to 20 years.
This bill would limit the allowable deductions for net operating
losses to a maximum of 68% of the taxpayer's income, for taxable
years beginning on or after January 1, 2010, and before January 1,
2011.
(9) The Corporation Tax Law, for taxable years beginning on or
after January 1, 2008, allows a credit to be assigned to an eligible
assignee, as defined, for use by that assignee in a taxable year
beginning on or after January 1, 2010.
This bill would delay the use of the assigned credit by an
eligible assignee to taxable years beginning on or after January 1,
2011.
(10) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
(11) The California Constitution authorizes the Governor to
declare a fiscal emergency and to call the Legislature into special
session for that purpose. The Governor issued a proclamation
declaring a fiscal emergency, and calling a special session for this
purpose, on January 8, 2010.
This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on January 8, 2010,
pursuant to the California Constitution.
This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2009.
The California Constitution authorizes the Governor to declare a
fiscal emergency and to call the Legislature into special session for
that purpose. The Governor issued a proclamation declaring a fiscal
emergency, and calling a special session for this purpose, on January
8, 2010.
This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on January 8, 2010,
pursuant to the California Constitution.
Vote: majority. Appropriation: no yes
. Fiscal committee: no yes .
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The functioning of the California
economy depends on a fully operational and well-maintained
transportation system as well as its related infrastructure in order
to provide for the efficient movement of goods, travel of employees
commuting to their places of work, and connection of businesses to
their customers.
(b) The state and local governments within the state have delayed
for many years the maintenance and repair of streets and highways
such that the resulting condition of those streets and highways
affects both public safety and the efficient functioning of the
economy. A recent survey found that California ranks 47th out of the
50 states in expenditures on street and highway maintenance.
(c) The California economy is in a deep recession, with overall
unemployment in excess of 12 percent. Employment by public transit
agencies has shrunk significantly during this recession. Maintaining
the streets and highways in this state and providing for the
operation of California's transit systems will generate badly needed
jobs nearly as quickly as the funds can be disbursed.
SEC. 2. Section 41204.2 is added to the
Education Code , to read:
41204.2. (a) (1) Pursuant to paragraph (1) of subdivision (b) of
Section 41204, the Director of Finance shall adjust "the percentage
of General Fund revenues appropriated for school districts and
community college districts, respectively, in fiscal year 1986-87"
for purposes of applying paragraph (1) of subdivision (b) of Section
8 of Article XVI of the California Constitution, to reflect the
allocation of certain tax revenues to the General Fund and to special
funds required by the qualifying provisions in a manner that ensures
that changes in those allocations will have no net fiscal impact
upon the amounts that are otherwise required to be applied by the
state for the support of school districts and community college
districts pursuant to Section 8 of Article XVI of the California
Constitution.
(2) For purposes of this section, "qualifying provisions," means
Sections 6357.7, 6051.8, 6201.8, and 7361.1, subdivision (b) of
Section 7360, and subdivision (b) of Section 60050 of the Revenue and
Taxation Code, as those provisions were enacted in the 2009-10
Eighth Extraordinary Session.
(b) Notwithstanding any other provision of law, for the 2010-11
fiscal year and each fiscal year thereafter, "the percentage of
General Fund revenues appropriated for school districts and community
college districts, respectively, in fiscal year 1986-87," for
purposes of paragraph (1) of subdivision (b) of Section 8 of Article
XVI of the California Constitution, shall be deemed to be the
percentage of General Fund revenues that would have been appropriated
for those entities if the qualifying provisions had been operative
for the 1986-87 fiscal year.
(c) Pursuant to paragraph (1) of subdivision (b) of Section 41204,
it is the intent of the Legislature in enacting the act adding this
section to ensure both of the following:
(1) That the changes required by the qualifying provisions in the
allocation of certain tax revenues to the General Fund and to special
funds do not have a net fiscal impact upon school districts, as
defined in Section 41302.5, or community college districts.
(2) That the changes required by the qualifying provisions in the
allocation of certain tax revenues to the General Fund and to special
funds do not have a net fiscal impact upon the amounts of revenue
otherwise required to be applied by the state for the support of
school districts and community college districts pursuant to Section
8 of Article XVI of the California Constitution.
SEC. 3. Section 16965 of the Government
Code is amended to read:
16965. (a) The Transportation Debt Service Fund is hereby created
in the State Treasury. Moneys in the fund shall, among other things,
as provided in this section, be dedicated to payment of debt service
on bonds including bonds issued pursuant to the Clean Air and
Transportation Improvement Act of 1990 (Part 11.5 (commencing with
Section 99600) of Division 10 of the Public Utilities Code), the
Passenger Rail and Clean Air Bond Act of 1990 (Chapter 17 (commencing
with Section 2701) of Division 3 of the Streets and Highways Code),
the Seismic Retrofit Bond Act of 1996 (Chapter 12.48 (commencing with
Section 8879) of Division 1 of Title 2), the Highway Safety, Traffic
Reduction, Air Quality, and Port Security Bond Act of 2006 (Chapter
12.49 (commencing with Section 8879.20) of Division 1 of Title 2),
and the Safe, Reliable High-Speed Passenger Train Bond Act for the
21st Century (Chapter 20 (commencing with Section 2704) of Division 3
of the Streets and Highways Code). If the moneys in the fund are
insufficient to pay the balance of the debt consistent with existing
obligations, the General Fund will be used to pay the balance of any
debt service.
(b) (1) From moneys transferred to the fund pursuant to
subdivision (b) of Section 7103 of the Revenue and Taxation Code, the
Director of Finance is hereby authorized to reimburse the General
Fund for up to three hundred thirty-nine million two hundred
eighty-nine thousand three hundred forty-five dollars ($339,289,345)
for the purpose of offsetting the cost of debt service payments made
from the General Fund during the 2007-08 fiscal year for public
transportation-related general obligation bond expenditures in the
following amounts:
(A) Clean Air and Transportation Improvement Act of 1990, one
hundred twenty-three million nine hundred seventy-three thousand four
hundred ninety-three dollars ($123,973,493).
(B) Passenger Rail and Clean Air Bond Act of 1990, seventy million
nine hundred eighty-three thousand three hundred sixty-three dollars
($70,983,363).
(C) Seismic Retrofit Bond Act of 1996, one hundred forty-four
million three hundred thirty-two thousand four hundred eighty-nine
dollars ($144,332,489).
(2) From moneys transferred to the fund pursuant to subdivision
(b) of Section 7103 of the Revenue and Taxation Code, the Director of
Finance is hereby authorized to reimburse the General Fund in the
2007-08 fiscal year for two hundred million dollars ($200,000,000)
for the purpose of offsetting the cost of debt service payments made
in prior fiscal years from the General Fund for public
transportation-related general obligation bond expenditures.
(c) From moneys transferred to the fund pursuant to subdivisions
(c) and (d) of Section 7103 of the Revenue and Taxation Code, the
Director of Finance is hereby authorized to reimburse the General
Fund any amount necessary to offset the cost of debt service payments
made from the General Fund during any fiscal year for
transportation-related general obligation bond expenditures.
(d) From moneys transferred to the fund pursuant to an annual
Budget Act or other statute from the State Highway Account in the
State Transportation Fund, the Director of Finance is hereby
authorized to reimburse the General Fund any amount necessary to
offset the cost of debt service payments made from the General Fund
during any fiscal year for transportation-related general obligation
bond expenditures consistent with Article XIX of the California
Constitution.
(e) From moneys transferred to the fund pursuant to Section 2103
of the Streets and Highways Code, the Director of Finance is hereby
authorized to reimburse the General Fund any amount necessary to
offset the cost of debt service payments made from the General Fund
on any bonds issued pursuant to Proposition 192 (1996) and
three-quarters of the amount of debt service payments made from the
General Fund on any bonds issued pursuant to Proposition 1B (2006).
(f) From moneys transferred to the fund pursuant to Section 183.1
of the Streets and Highways Code, the Director of Finance is hereby
authorized to reimburse the General Fund any amount necessary to
offset the cost of debt service payments made from the General Fund
on any bonds issued pursuant to Proposition 116 (1990).
(g) From moneys transferred to the fund pursuant to Section 99315
of the Public Utilities Code, the Director of Finance is hereby
authorized to reimburse the General Fund any amount necessary to
offset the cost of debt service payments made from the General Fund
on any bonds issued pursuant to Proposition 108 (1990) and
Proposition 1A (2008), and one-quarter of the amount of debt service
payment made from the General Fund on any bonds issued pursuant to
Proposition 1B (2006).
SEC. 4. The Legislature finds and declares all of
the following:
(a) In 2008, the Legislature passed, and the Governor signed into
law, Senate Bill 375 (Chapter 728, Statutes of 2008), pursuant to
which the Legislature found that the emissions from cars and light
trucks constitute 30 percent of greenhouse gas emissions from
California. The Legislature also found, even taking into account
emission reductions from new vehicle technology and increased use of
low-carbon fuels, that California would be unable to achieve its
climate goals without changed land use patterns and improved
transportation.
(b) Senate Bill 375 authorized the State Air Resources Board to
set greenhouse gas emission reduction targets to be achieved by each
region through changed land use patterns and improved transportation.
(c) Senate Bill 375 also created a process for the regions to
include in the regional transportation plan a sustainable communities
strategy, including a distinct process for the Southern California
Association of Governments region, that would show a forecasted
development pattern and integrated transportation network to achieve,
if there is a feasible way to do so, the greenhouse gas emission
targets set by the State Air Resources Board. If there is not a
feasible way to achieve the targets within the sustainable
communities strategy, the regions must prepare an alternative
planning strategy showing the most practicable choices for
achievement of the greenhouse gas emission reduction targets.
(d) In the sustainable communities strategy, or an alternative
planning strategy, if applicable, the regions will be able to
identify transportation programs and projects that would enable the
regions to mitigate the greenhouse gas emissions from cars and light
trucks in order to achieve the targets set by the State Air Resources
Board.
(e) The State Air Resources Board has found that 70 percent of air
pollution is caused by the combustion of motor vehicle fuel. Under
federal law, each regional transportation plan must demonstrate that
it will conform to the requirements of the federal Clean Air Act (42
U.S.C. Sec. 7401 et seq.). As part of the regional transportation
plan, the region may identify transportation programs and projects
that will mitigate or avoid pollution from criteria air pollutants
caused by motor vehicle fuels, and that would help achieve conformity
with the federal Clean Air Act. "Criteria air pollutants" are air
pollutants determined pursuant to Section 108 of the federal Clean
Air Act (42 U.S.C. Sec. 7408).
(f) Funding for transit operations has been severely reduced.
Without adequate transit funding, the regions will not be able to
implement transit programs to mitigate the climate impacts and air
quality impacts caused by the consumption of motor vehicle fuels in
cars and light trucks.
(g) It is also appropriate to provide additional funding for
pedestrian and bicycle facilities. Improved and continuous sidewalks
remove barriers to transit use by facilitating safe walking access to
transit stops. Bicycles are an effective environmentally sound
transportation mode.
(h) It is the intent of Section 5 of this act to authorize
metropolitan planning organizations, or within the Southern
California Association of Governments region, a county transportation
commission, to establish a light-duty vehicle mitigation fee within
their jurisdictions on users of motor vehicle fuels to fund
transportation programs and projects that are found by the regional
transportation plan to mitigate pollution from criteria air
pollutants and greenhouse gas emissions caused by the use of those
fuels in cars and light trucks.
SEC. 5. Chapter 2 (commencing with Section 55830)
is added to Part 3 of Division 2 of Title 5 of the
Government Code , to read:
CHAPTER 2. LIGHT-DUTY VEHICLE MITIGATION FEE
55830. (a) Subject to the approval of the voters pursuant to
subdivision (d), a metropolitan planning organization designated
pursuant to Section 134 of Title 23 of the United States Code may
impose a light-duty vehicle mitigation fee in all or part of its
jurisdiction pursuant to this section. The fee shall become operative
on the first day of the first calendar quarter commencing more than
90 days after voter approval.
(b) The fee shall be in addition to any other levies that the
metropolitan planning organization is authorized to impose. The fee
may be implemented for a period not to exceed 30 years on all
purchasers of motor vehicle fuels sold in all or part of the
jurisdiction of the metropolitan planning organization for use in a
car or light truck. The rate of the fee shall be established by the
metropolitan planning organization on a per gallon basis. As used in
this chapter, motor vehicle fuel includes, but is not limited to,
gasoline and diesel fuel which shall have the same meanings set forth
in Section 7316 and Section 60022, respectively, of the Revenue and
Taxation Code.
(c) (1) Revenues from the fee may be expended for transit,
bicycle, and pedestrian programs, including operation and maintenance
of transit services, that have been identified in the regional
transportation plan, provided that the metropolitan planning
organization has made a finding that the programs cost-effectively
mitigate and avoid pollution from criteria air pollutants, determined
pursuant to Section 108 of the federal Clean Air Act (42 U.S.C. Sec.
7408), and greenhouse gas emissions directly associated with the
operation of cars and light trucks, that the programs are consistent
with a strategy adopted pursuant to Section 65080 that would achieve
the greenhouse gas emissions reduction targets adopted by the State
Air Resources Board, and that there is a nexus between the payers of
the fee and the mitigation or avoidance of pollution from criteria
air pollutants and greenhouse gas emissions funded by the fee. A
metropolitan planning organization that includes a light-duty vehicle
mitigation fee in its regional transportation plan shall identify
the transit, bicycle, and pedestrian programs that would be funded by
the fee in the financial element of the regional transportation
plan. The financial element shall also identify the eligible transit
operators and other recipients and the amount of funds that would be
needed from all sources, including the light-duty vehicle mitigation
fee, for each year of the programs through the planning horizon of
the regional transportation plan.
(2) A fee authorized by this chapter shall include sufficient
funding, together with other funding sources realistically projected
to be available, to operate and maintain each program for the
duration of the fee.
(d) (1) Following the adoption by the metropolitan planning
organization of a regional transportation plan that provides for a
fee pursuant to this chapter, the board of supervisors of each county
and city and county in the jurisdiction of the metropolitan planning
organization where the fee is to be imposed shall, upon the request
of the metropolitan planning organization, submit to the voters at a
local election consolidated with a statewide primary or general
election specified by the metropolitan planning organization, a
measure, adopted by the organization, authorizing the organization to
impose the fee within all or part of the region consistent with
subdivision (c).
(2) The metropolitan planning organization shall reimburse each
county or city and county in the affected part of the region for the
cost of submitting the measure to the voters. These costs shall be
reimbursed from revenues derived from the fee if the measure is
approved by the voters or, if the measure is not approved, from any
funds of the metropolitan planning organization that are available
for general transportation planning.
(e) (1) Upon approval of the measure by a majority of the voters
voting at an election within that part of the region where the fee is
to be imposed, the metropolitan planning organization may impose the
fee. The fee shall be imposed on the purchaser of motor vehicle fuel
in a car or light truck at the point of retail sale in each county
or city and county within the region where the fee is imposed, and
shall be collected from the purchaser by the retailer and transmitted
to the State Board of Equalization. The ordinance shall provide for
refund, by the board, of fees paid for motor vehicle fuel that is not
used in a car or light truck.
(2) The fee required to be collected by the retailer and any
amount unreturned to the customer which is not the fee but was
collected from the customer under the representation that it was the
fee constitutes debts owed by the retailer to the state.
(3) The fees imposed by this chapter are due and payable quarterly
on or before the last day of the month next succeeding each calendar
quarter. The payment shall be accompanied by a return in the form
prescribed by the State Board of Equalization.
(f) (1) The metropolitan planning organization shall contract with
the State Board of Equalization for the administration of the fee
imposed under paragraph (1) of subdivision (a), and the board shall
be reimbursed for its actual cost in the administration of the fee,
including administration of refunds, and for its actual cost of
preparation to administer the fee based upon an independent audit.
(2) The State Board of Equalization shall collect the fees
pursuant to the Fee Collection Procedure Law (Part 30 (commencing
with Section 55001) of Division 2 of the Revenue and Taxation Code).
(3) After deducting its cost of administering the fee, the State
Board of Equalization shall periodically transmit the net revenues,
less refunds, to the metropolitan planning organization as promptly
as possible. Transmittal of those revenues shall be made at least
twice in each calendar quarter.
(g) The net revenues of the fee shall be deposited into the
Light-Duty Vehicle Mitigation Fund, to be created and administered
by the metropolitan planning organization, and shall be expended in
accordance with this chapter. The metropolitan planning organization
shall promptly transmit the funds to each eligible recipient pursuant
to the regional transportation plan.
(h) The metropolitan planning organization may issue bonds backed
solely by revenues from the fee authorized by this chapter. Revenues
from the fee may be pledged for payment of debt service on those
bonds.
(i) Notwithstanding any other provision of this section, in the
region served by the multicounty transportation planning agency
described in Section 130004 of the Public Utilities Code, a county
transportation commission may impose the fee within the region of its
jurisdiction if it finds that the transit, bicycle and pedestrian
programs, including operation and maintenance of transit services,
that have been identified in the regional transportation plan, cost
effectively mitigate and avoid pollution from criteria air
pollutants, determined pursuant to Section 108 of the federal Clean
Air Act (42 U.S.C. Sec. 7408), and greenhouse gas emissions directly
associated with the operation of cars and light trucks, that the
programs are consistent with a strategy adopted by the metropolitan
planning organization that would achieve the greenhouse gas emission
reduction targets adopted by the State Air Resources Board, and that
there is a nexus between the payers of the fee and the mitigation or
avoidance of pollution from criteria air pollutants and greenhouse
emissions funded by the fee. In this case, the county transportation
commission, rather than the metropolitan planning organization, shall
exercise all of the powers under this section relative to imposition
of the fee.
(j) The requirement for voter approval pursuant to subdivision (d)
is not a requirement of the California Constitution.
SEC. 6. Section 99312 of the Public
Utilities Code is amended to read:
99312. Except as provided in Sections 99311 and 99311.5, and
except as otherwise provided in subdivisions (d) and (e), the
funds in the account shall be made available for the following
purposes:
(a) Fifty Twenty-five percent for
purposes of Section 99315 , subject to appropriation by the
Legislature .
(b) To the Controller, 25 37.5
percent for allocation to transportation planning agencies, county
transportation commissions, and the San Diego Metropolitan Transit
Development Board pursuant to Section 99314. Commencing with the
2011-12 fiscal year, these funds are hereby continuously
appropriated for purposes of this subdivision.
(c) To the Controller, 25 37.5
percent for allocation to transportation agencies, county
transportation commissions, and the San Diego Metropolitan Transit
Development Board for purposes of Section 99313. Commencing with
the 2011-12 fiscal year, these funds are hereby
continuously appropriated for purposes of this subdivision.
(d) For the 2007-08 fiscal year, notwithstanding any other
provision of this section, or any other provision of law, the
allocations made pursuant to this section shall be adjusted as
follows:
(1) From the funds transferred to the account pursuant to
paragraph (1) of subdivision (a) of Section 7102 of the Revenue and
Taxation Code, fifty million dollars ($50,000,000) is hereby
appropriated to the Controller and shall be allocated pursuant to
subdivision (b); fifty million dollars ($50,000,000) is hereby
appropriated to the Controller and shall be allocated pursuant to
subdivision (c); and the remainder of revenue shall remain in the
Public Transportation Account to fund other state public
transportation priorities. The Controller shall make these
allocations in four equal quarterly amounts of twelve million five
hundred thousand dollars ($12,500,000), as achievable by the receipt
of the specified revenue.
(2) The amount appropriated in Item 2640-101-0046 of the Budget
Act of 2006 for state transit assistance pursuant to subdivision (b)
and (c) was greater than the amount of revenues received to support
state transit assistance pursuant to Section 7102 of the Revenue and
Taxation Code. Therefore, notwithstanding any other provision of law,
the amount that would have otherwise been available for
appropriation to state transit assistance in the 2007-08 fiscal year
pursuant to paragraphs (2) and (3) of subdivision (a) of Section 7102
of the Revenue and Taxation Code, shall be reduced by the excess
amount that was appropriated to state transit assistance in the
Budget Act of 2006, and that excess amount, as determined by the
Department of Finance, shall instead remain in the Public
Transportation Account to fund other state public transportation
priorities. The funding for state transit assistance as described in
this paragraph is hereby appropriated to the Controller for
allocation. The Controller shall attempt to spread this adjustment
equally over four quarterly payments, as achievable by revenue
estimates.
(e) For the 2008-09 fiscal year and thereafter, notwithstanding
any other provision of this section or any other provision of law,
and except as provided in subdivision (f), the funds transferred to
the account pursuant to
paragraph (1) of subdivision (a) of Section 7102 of the Revenue and
Taxation Code shall be made available for the following purposes:
(1) For purposes of Section 99315, 33.34 percent, subject to
appropriation by the Legislature.
(2) To the Controller, 33.33 percent for allocation to
transportation planning agencies, county transportation commissions,
and the San Diego Metropolitan Transit Development Board pursuant to
Section 99314. These funds are hereby continuously appropriated for
purposes of this paragraph.
(3) To the Controller, 33.33 percent for the allocation to
transportation agencies, county transportation commissions, and the
San Diego Metropolitan Transit Development Board for purposes of
Section 99313. These funds are hereby continuously appropriated for
purposes of this paragraph.
(f) For the 2009-10 to 2012-13 fiscal years, inclusive,
notwithstanding any other provision of this section or any other
provision of law, the funds in the account subject to this section
shall be made available only for purposes of Section 99315, subject
to appropriation by the Legislature.
(d) (1) For the 2009-10 fiscal year, notwithstanding any other
provision of this section or any other provision of law, the sum of
four hundred million dollars ($400,000,000) is hereby appropriated
from the account to the Controller for immediate allocation pursuant
to paragraph (2). These funds are intended to cover the two-year
period of the 2009-10 and 2010-11 fiscal years. The remaining funds
in the account subject to this section shall be available for the
purposes of Section 99315, subject to appropriation by the
Legislature.
(2) (A) Fifty percent of the amount appropriated to the Controller
pursuant to paragraph (1) shall be allocated to transportation
planning agencies, county transportation commissions, and the San
Diego Metropolitan Transit Development Board pursuant to Section
99314.
(B) Fifty percent of the amount appropriated to the Controller
pursuant to paragraph (1) shall be allocated to transportation
planning agencies, county transportation commissions, and the San
Diego Metropolitan Transit Development Board pursuant to Section
99313.
(e) For the 2010-11 fiscal year, notwithstanding any other
provision of this section or any other provision of law, the funds in
the account subject to this section shall be made available only for
purposes of Section 99315, subject to appropriation by the
Legislature.
SEC. 7. Section 99315 of the Public
Utilities Code is amended to read:
99315. Funds made available pursuant to subdivision (a) of
Section 99312 , shall be available for all of the
following purposes:
(a) To the department for bus and passenger rail services pursuant
to Sections 14035, 14035.5, and 14038 of the Government Code.
(b) To the department for funding of public transit capital
improvement projects in the state transportation improvement program,
pursuant to Section 14529 of the Government Code.
(c) To the department for its planning activities not payable from
the State Highway Account in the State Transportation Fund, its mass
transportation responsibilities, and its assistance in regional
transportation planning.
(d) To the department for allocation by the director to the
Institute of Transportation Studies of the University of California
for training and research in public transportation systems
engineering and management and coordination with other transportation
modes.
(e) To the commission for its activities not payable from the
State Highway Account.
(f) To the Public Utilities Commission for its passenger rail
safety responsibilities specified in statute on commuter rail,
intercity rail, and urban rail transit lines.
(g) To the State Department of Developmental Services for funding
of regional center transportation.
(h) To the Department of Education for funding of home-to-school
transportation, pursuant to Article 10 (commencing with Section
41850) of Chapter 5 of, and Small School District Transportation,
pursuant to Article 4.5 (commencing with Section 42290) of Chapter 7
of, Part 24 of Division 3 of Title 2 of the Education Code.
(i) To
(g) For transfer to the Transportation
Debt Service Fund created by Section 16965 of the Government Code to
reimburse the General Fund for current debt service payments on
rail and transit-related general obligation bonds
. For the 2009-10 fiscal year, the Director of Finance is
authorized to reimburse up to two hundred twenty-five million
forty-four thousand dollars ($225,044,000) in General Fund
expenditures for this purpose. other than those issued
pursuant to the Clean Air and Transportation Improvement
Act of 1990 (Part 11.5 (commencing with Section 99600)), as
follows:
(1) For the 2009-10 fiscal year, the Controller shall transfer up
to one hundred forty-two million fifty-eight thousand dollars
($142,058,000) to the fund upon order of the Director of Finance.
(2) For the 2010-11 fiscal year, the Controller shall transfer up
to two hundred fifty-four million two hundred twenty-two thousand
dollars ($254,222,000) to the fund, as follows:
(A) By the 15th of every month, the Treasurer, in consultation
with the Director of Finance, shall notify the Controller of the
amount of debt service that will be paid on each transportation bond
during that month.
(B) Within two business days following the 28th of every month,
the Controller shall transfer from the account to the Transportation
Debt Service Fund an amount equal to monthly debt service paid by the
General Fund on any bonds issued pursuant to Proposition 108 (1990)
and Proposition 1A (2008), and one-quarter of the monthly debt
service paid by the General Fund on any bonds issued pursuant to
Proposition 1B (2006).
SEC. 8. Section 6051.8 is added to the
Revenue and Taxation Code , to read:
6051.8. (a) In addition to the taxes imposed by this part, for
the privilege of selling tangible personal property at retail, a tax
is hereby imposed upon all retailers at the rate of 1.75 percent of
the gross receipts of any retailer from the sale of all diesel fuel,
as defined in Section 60022, sold at retail in this state on and
after the operative date of this subdivision.
(b) Subdivision (a) shall become operative on July 1, 2011.
SEC. 9. Section 6201.8 is added to the
Revenue and Taxation Code , to read:
6201.8. (a) In addition to the taxes imposed by this part, an
excise tax is hereby imposed on the storage, use, or other
consumption in the state of diesel fuel, as defined in Section 60022,
at the rate of 1.75 percent of the sales price of the diesel fuel on
and after the operative date of this subdivision.
(b) Subdivision (a) shall become operative on July 1, 2011.
SEC. 10. Section 6357.7 is added to the
Revenue and Taxation Code , to read:
6357.7. (a) On and after July 1, 2010, there are exempted from
the taxes imposed by this part, the gross receipts from the sale in
this state of, and the storage, use, or other consumption in this
state of, motor vehicle fuel, as defined in Section 7326.
(b) (1) Notwithstanding any provision of the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section
7200)) or the Transactions and Use Tax Law (Part 1.6 (commencing with
Section 7251)), the exemption established by this section shall not
apply with respect to any tax levied by a county, city, or district
pursuant to, or in accordance with, either of those laws.
(2) The exemption established by this section shall not apply with
respect to any tax levied pursuant to Section 6051.2, 6051.5,
6201.2, or 6201.5, or pursuant to Section 35 of Article XIII of the
California Constitution.
SEC. 11. Section 7102.1 is added to the
Revenue and Taxation Code , to read:
7102.1. Notwithstanding subdivision (b) of Section 7102, the
revenues, less refunds, derived from the tax in Sections 6051.8 and
6201.8 shall be estimated by the State Board of Equalization, with
the concurrence of the Department of Finance, and shall be
transferred quarterly to the Public Transportation Account in the
State Transportation Fund.
SEC. 12. Section 7103 of the Revenue
and Taxation Code is repealed.
7103. (a) The Mass Transportation Fund is hereby created in the
State Treasury. Upon appropriation by the Legislature, moneys in the
Mass Transportation Fund may be used for, but shall not necessarily
be limited to, the following transportation purposes:
(1) Payment of debt service on transportation bonds, or
reimbursement to the General Fund for past debt service payments on
transportation bonds.
(2) Funding of the Department of Developmental Services for
regional center transportation.
(3) Reimbursement to the General Fund for payments made by the
General Fund pursuant to subdivision (f) of Section 1 of Article XIX
B of the California Constitution.
(4) Funding of home-to-school transportation, pursuant to Article
10 (commencing with Section 41850) of Chapter 5 of Part 24 of the
Education Code, and Small School District Transportation, pursuant to
Article 4.5 (commencing with Section 42290) of Chapter 7 of Part 24
of the Education Code.
(b) From moneys transferred to the fund pursuant to subparagraph
(G) of paragraph (1) of subdivision (a) of Section 7102 in the
2007-08 fiscal year, the sum of five hundred thirty-nine million two
hundred eighty-nine thousand three hundred forty-eight dollars
($539,289,348) shall be transferred to the Transportation Debt
Service Fund, and the sum of eighty-two million six hundred
seventy-eight thousand dollars ($82,678,000) may be reimbursed by the
Director of Finance in the 2007-08 fiscal year for the purpose of
offsetting payments made by the General Fund pursuant to subdivision
(f) of Section 1 of Article XIX B of the California Constitution.
(c) From moneys transferred to the fund pursuant to subparagraph
(H) of paragraph (1) of subdivision (a) of Section 7102 in the
2008-09 fiscal year, the sum of eighty-two million six hundred
seventy-eight thousand dollars ($82,678,000) may be reimbursed by the
Director of Finance for the purpose of offsetting payments made by
the General Fund pursuant to subdivision (f) of Section 1 of Article
XIX B of the California Constitution, and the Director of Finance may
transfer any funds remaining in the fund after this reimbursement of
the General Fund to the Transportation Debt Service Fund.
(d) From moneys transferred to the fund pursuant to subparagraph
(I) of paragraph (1) of subdivision (a) of Section 7102, the Director
of Finance may transfer to the Transportation Debt Service Fund any
amount necessary to offset the cost of debt service payments made
from the General Fund during any fiscal year for
transportation-related general obligation bond expenditures.
SEC. 13. Section 7360 of the Revenue
and Taxation Code is amended to read:
7360. (a) A tax of eighteen cents ($0.18) is hereby imposed upon
each gallon of fuel subject to the tax in Sections 7362, 7363, and
7364.
(b) If the federal fuel tax is reduced below the rate of nine
cents ($0.09) per gallon and federal financial allocations to this
state for highway and exclusive public mass transit guideway purposes
are reduced or eliminated correspondingly, the tax rate imposed by
this section, on and after the date of the reduction, shall be
recalculated by an amount so that the combined state and federal tax
rate per gallon equals twenty-seven cents ($0.27).
(c) If any person or entity is exempt or partially exempt from the
federal fuel tax at the time of a reduction, the person or entity
shall continue to be so exempt under this section.
(b) (1) On and after July 1, 2010, in addition to the tax imposed
by subdivision (a), a tax is hereby imposed upon each gallon of fuel
subject to the tax in Sections 7362, 7363, and 7364 in an amount
equal to 12 9/10 cents ($0.129) per gallon.
(2) For the 2011-12 fiscal year and each fiscal year thereafter,
the board shall, on or before March 1 of the fiscal year immediately
preceding the applicable fiscal year, adjust the rate in paragraph
(1) in that manner as to generate an amount of revenue that will
equal the amount of revenue loss attributable to the exemption
provided by Section 6357.7, based on estimates made by the board.
(3) (A) In order to maintain revenue neutrality, for the rate
adjustment on or before March 1, 2012, the adjustment under paragraph
(2) shall also take into account the extent to which, for the
2010-11 fiscal year, the difference between actual amount of revenues
derived pursuant to this subdivision and Section 7361.1 and the
revenue loss attributable to the exemption provided by Section 6357.7
either exceeded or was less than a revenue loss of six hundred
sixty-five million dollars ($665,000,000).
(B) In order to maintain revenue neutrality for each year,
beginning with the rate adjustment on or before March 1, 2013, the
adjustment under paragraph (2) shall also take into account the
extent to which the actual amount of revenues derived pursuant to
this subdivision and the revenue loss attributable to the exemption
provided by Section 6357.7 differed from the estimates used in making
the adjustment under paragraph (2) for the fiscal year ending prior
to the rate adjustment date on or before March 1.
(4) The intent of paragraphs (2) and (3) is to ensure that the act
adding this subdivision and Section 6357.7 do not produce a net
revenue gain in state taxes.
SEC. 14. Section 7361.1 is added to the
Revenue and Taxation Code , to read:
7361.1. (a) For the privilege of storing, for the purpose of
sale, each supplier, wholesaler, and retailer owning 1,000 or more
gallons of tax-paid motor vehicle fuel on July 1, 2010, shall pay a
storage tax of twelve and nine-tenths cents ($0.129) per gallon of
tax-paid motor vehicle fuel in storage according to the volumetric
measure thereof.
(b) For purposes of this section:
(1) "Owning" means having title to the motor vehicle fuel.
(2) "Retailer" means any person who sells motor vehicle fuel in
this state to a person who subsequently uses the motor vehicle fuel.
(3) "Storing" includes the ownership or possession of tax-paid
motor vehicle fuel outside of the bulk transfer/terminal system,
including the holding of tax-paid motor vehicle fuel for sale at
wholesale or retail locations stored in a container of any kind,
including railroad tank cars and trucks or trailer cargo tanks.
"Storing" also includes tax-paid motor vehicle fuel purchased from
and invoiced by the seller, and tax-paid motor vehicle fuel removed
from a terminal or entered into by a supplier, prior to the date
specified in subdivision (a) and in transit on that date.
(4) "Wholesaler" means any person who sells motor vehicle fuel in
this state for resale to a retailer or to a person who is not a
retailer and subsequently uses the motor vehicle fuel.
SEC. 15. Section 7653.1 is added to the
Revenue and Taxation Code , to read:
7653.1. On or before August 31, 2010, each person subject to the
storage tax imposed under Section 7361.1 shall prepare and file with
the board, in a form prescribed by the board, a return showing the
total number of gallons of tax-paid motor vehicle fuel owned by the
person on July 1, 2010, the amount of the storage tax, and any other
information that the board deems necessary for the proper
administration of this part. The return shall be accompanied by a
remittance payable to the Controller in the amount of tax due.
SEC. 16. Section 17276.12 is added to the
Revenue and Taxation Code , to read:
17276.12. (a) For taxable years beginning on or after January 1,
2010, and before January 1, 2011, total deductions under Sections
17276, 17276.1, 17276.2, 17276.4, 17276.5, 17276.6, and 17276.7 of
this code and Section 172 of the Internal Revenue Code shall not
exceed 68 percent of the taxpayer's total income.
(b) For purposes of this section, "total income" means gross
income (within the meaning of Section 17071) without regard to any
deductions otherwise allowable in determining adjusted gross income
(within the meaning of Section 17072) and without regard to any
deduction otherwise allowable under Sections 17276, 17276.1, 17276.2,
17276.4, 17276.5, 17276.6, and 17276.7 of this code and Section 172
of the Internal Revenue Code.
(c) For any net operating loss or carryover of a net operating
loss for which a deduction is denied by subdivision (a), the
carryover period under Section 172 of the Internal Revenue Code shall
be extended by one year.
SEC. 17. Section 23663 of the Revenue
and Taxation Code is amended to read:
23663. (a) (1) Notwithstanding any other law to the contrary, for
each taxable year beginning on or after July 1, 2008, any credit
allowed to a taxpayer under this chapter that is an "eligible credit
(within the meaning of paragraph (2) of subdivision (b)) may be
assigned by that taxpayer to any "eligible assignee" (within the
meaning of paragraph (3) of subdivision (b)).
(2) A credit assigned under paragraph (1) may only be applied by
the eligible assignee against the "tax" of the eligible assignee in a
taxable year beginning on or after January 1, 2010
2011 .
(3) Except as specifically provided in this section, following an
assignment of any eligible credit under this section, the eligible
assignee shall be treated as if it originally earned the assigned
credit.
(b) For purposes of this section, the following definitions shall
apply:
(1) "Affiliated corporation" means a corporation that is a member
of a commonly controlled group as defined in Section 25105.
(2) "Eligible credit" shall mean:
(A) Any credit earned by the taxpayer in a taxable year beginning
on or after July 1, 2008, or
(B) Any credit earned in any taxable year beginning before July 1,
2008, that is eligible to be carried forward to the taxpayer's first
taxable year beginning on or after July 1, 2008, under the
provisions of this part.
(3) "Eligible assignee" shall mean any affiliated corporation that
is properly treated as a member of the same combined reporting group
pursuant to Section 25101 or 25110 as the taxpayer assigning the
eligible credit as of:
(A) In the case of credits earned in taxable years beginning
before July 1, 2008:
(i) June 30, 2008, and
(ii) The last day of the taxable year of the assigning taxpayer in
which the eligible credit is assigned.
(B) In the case of credits earned in taxable years beginning on or
after July 1, 2008.
(i) The last day of the first taxable year in which the credit was
allowed to the taxpayer, and
(ii) The last day of the taxable year of the assigning taxpayer in
which the eligible credit is assigned.
(c) (1) The election to assign any credit under subdivision (a)
shall be irrevocable once made, and shall be made by the taxpayer
allowed that credit on its original return for the taxable year in
which the assignment is made.
(2) The taxpayer assigning any credit under this section shall
reduce the amount of its unused credit by the face amount of any
credit assigned under this section, and the amount of the assigned
credit shall not be available for application against the assigning
taxpayer's "tax" in any taxable year, nor shall it thereafter be
included in the amount of any credit carryover of the assigning
taxpayer.
(3) The eligible assignee of any credit under this section may
apply all or any portion of the assigned credits against the "tax"
(as defined in Section 23036) of the eligible assignee for the
taxable year in which the assignment occurs, or any subsequent
taxable year, subject to any carryover period limitations that apply
to the assigned credit and also subject to the limitation in
paragraph (2) of subdivision (a).
(4) In no case may the eligible assignee sell, otherwise transfer,
or thereafter assign the assigned credit to any other taxpayer.
(d) (1) No consideration shall be required to be paid by the
eligible assignee to the assigning taxpayer for assignment of any
credit under this section.
(2) In the event that any consideration is paid by the eligible
assignee to the assigning taxpayer for the transfer of an eligible
credit under this section, then:
(A) No deduction shall be allowed to the eligible assignee under
this part with respect to any amounts so paid, and
(B) No amounts so received by the assigning taxpayer shall be
includable in gross income under this part.
(e) (1) The Franchise Tax Board shall specify the form and manner
in which the election required under this section shall be made, as
well as any necessary information that shall be required to be
provided by the taxpayer assigning the credit to the eligible
assignee.
(2) Any taxpayer who assigns any credit under this section shall
report any information, in the form and manner specified by the
Franchise Tax Board, necessary to substantiate any credit assigned
under this section and verify the assignment and subsequent
application of any assigned credit.
(3) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code shall not apply to any
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to paragraphs (1) and (2).
(4) The Franchise Tax Board may issue any regulations necessary to
implement the purposes of this section, including any regulations
necessary to specify the treatment of any assignment that does not
comply with the requirements of this section (including, for example,
where the taxpayer and eligible assignee are not properly treated as
members of the same combined reporting group on any of the dates
specified in paragraph (3) of subdivision (b).
(f) (1) The taxpayer and the eligible assignee shall be jointly
and severally liable for any tax, addition to tax, or penalty that
results from the disallowance, in whole or in part, of any eligible
credit assigned under this section.
(2) Nothing in this section shall limit the authority of the
Franchise Tax Board to audit either the assigning taxpayer or the
eligible assignee with respect to any eligible credit assigned under
this section.
(g) On or before June 30, 2013 2014 ,
the Franchise Tax Board shall report to the Joint Legislative Budget
Committee, the Legislative Analyst, and the relevant policy
committees of both houses on the effects of this section. The report
shall include, but need not be limited to, the following:
(1) An estimate of use of credits in the 2010 and
2011 and 2012 taxable years by eligible
taxpayers.
(2) An analysis of effect of this section on expanding business
activity in the state related to these credits.
(3) An estimate of the resulting tax revenue loss to the state.
(4) The report shall cover all credits covered in this section,
but focus on the credits related to research and development,
economic incentive areas, and low income housing.
SEC. 18. Section 24416.12 is added to the
Revenue and Taxation Code , to read:
24416.12. (a) For taxable years beginning on or after January 1,
2010, and before January 1, 2011, total deductions under Sections
24416, 24416.1, 24416.2, 24416.4, 24416.5, 24416.6, and 24416.7 of
this code and Section 172 of the Internal Revenue Code shall not
exceed 68 percent of the taxpayer's net income, determined without
regard to any deduction otherwise allowable under Sections 24416,
24416.1, 24416.2, 24416.4, 24416.5, 24416.6, and 24416.7 of this code
and Section 172 of the Internal Revenue Code.
(b) For any net operating loss or carryover of a net operating
loss for which a deduction is denied by subdivision (a), the
carryover period under Section 172 of the Internal Revenue Code shall
be extended by one year.
SEC. 19. Section 60050 of the Revenue
and Taxation Code is amended to read:
60050. (a) A tax of eighteen cents ($0.18) is hereby imposed upon
each gallon of diesel fuel subject to the tax in Sections 60051,
60052, and 60058.
(b) If the federal fuel tax is reduced below the rate of fifteen
cents ($0.15) per gallon and federal financial allocations to this
state for highway and exclusive public mass transit guideway purposes
are reduced or eliminated correspondingly, the tax rate imposed by
this section, on and after the date of the reduction, shall be
increased by an amount so that the combined state and federal tax
rate per gallon equals thirty-three cents ($0.33).
(c) If any person or entity is exempt or partially exempt from the
federal fuel tax at the time of a reduction, the person or entity
shall continue to be exempt under this section.
(b) (1) On July 1, 2011, the tax rate specified in subdivision (a)
shall be reduced to 13.6 cents ($0.136) and every July 1 thereafter
shall be adjusted pursuant to paragraphs (2) and (3).
(2) For the 2012-13 fiscal year and each fiscal year thereafter,
the board shall, on or before March 1 of the fiscal year immediately
preceding the applicable fiscal year, adjust the rate in paragraph
(1) in that manner as to generate an amount of revenue that will
equal the amount of revenue gain attributable to Sections 6051.8 and
6201.8, based on estimates made by the board.
(3) In order to maintain revenue neutrality for each year,
beginning with the rate adjustment on or before March 1, 2013, the
adjustment under paragraph (2) shall take into account the extent to
which the actual amount of revenues derived pursuant to Sections
6051.8 and 6201.8 and the revenue loss attributable to this
subdivision resulted in a net revenue gain or loss for the fiscal
year ending prior to the rate adjustment date on or before March 1.
(4) The intent of paragraphs (2) and (3) is to ensure that the act
adding this subdivision and Sections 6051.8 and 6201.8 do not
produce a net revenue gain in state taxes.
SEC. 20. Section 183.1 of the Streets
and Highways Code is amended to read:
183.1. (a) Notwithstanding subdivision (a) of Section 182 or any
other provision of law, money deposited into the account that is not
subject to Article XIX of the California Constitution, including, but
not limited to, money that is derived from the sale of documents,
charges for miscellaneous services to the public, condemnation
deposits fund investments, rental of state property, or any other
miscellaneous uses of property or money, may be used for any
transportation purpose authorized by statute, upon appropriation by
the Legislature or, after transfer to another fund, upon
appropriation by the Legislature from that fund.
(b) (1) Not later than November 1 of each
year, except as otherwise provided in subdivision (c),
based on prior year financial statements, the State
Controller shall transfer the funds identified in
subdivision (a) for the prior fiscal year to the Public
Transportation Account in the State Transportation Fund.
(2) From the funds transferred to the Public Transportation
Account pursuant to this subdivision in the 2009-10 fiscal year, the
Controller shall retransfer to the State Highway Account the sum of
seventy-eight million nine hundred three thousand dollars
($78,903,000). Notwithstanding paragraph (1), the Controller shall
then transfer these funds from the State Highway Account to the
Transportation Debt Service Fund in the State Transportation Fund.
(c) Notwithstanding subdivision (b), in the 2010-11 fiscal year,
and not later than November 1, 2010, based on prior year financial
statements, the Controller shall transfer the funds identified in
subdivision (a) for the prior fiscal year to the Transportation Debt
Service Fund in the State Transportation Fund.
(d) Notwithstanding Section 99312 of the Public Utilities Code,
commencing with the 2011-12 fiscal year, the funds transferred to the
Public Transportation Account pursuant to subdivision (b) shall be
made available only for the purposes of Section 99315 of the Public
Utilities Code, subject to appropriation by the Legislature, except
as provided in paragraphs (1) and (2).
(1) For the 2011-12 fiscal year, eleven million five hundred
thousand dollars ($11,500,000), subject to appropriation by the
Legislature, shall be allocated pursuant to subdivision (b) of
Section 99312 of the Public Utilities Code, and eleven million five
hundred thousand dollars ($11,500,000), subject to appropriation by
the Legislature, shall be allocated pursuant to subdivision (c) of
Section 99312 of the Public Utilities Code.
(2) For the 2012-13 fiscal year, six million dollars ($6,000,000),
subject to appropriation by the Legislature, shall be allocated
pursuant to subdivision (b) of Section 99312 of the Public Utilities
Code, and six million dollars ($6,000,000), subject to appropriation
by the Legislature, shall be allocated pursuant to subdivision (c) of
Section 99312 of the Public Utilities Code.
SEC. 21. Section 2103 of the Streets
and Highways Code is amended to read:
2103. At (a) Of the
net revenues deposited to the credit of the Highway Users Tax
Account t hat are derived from the increases in the rates
of taxes that are imposed pursuant to subdivision (b) of Section 7360
and Section 7361.1 of the Revenue and Taxation Code, all of the
following shall occur on a monthly basis:
(1) (A) By the 15th day of every month, the Treasurer's office, in
consultation with the Department of Finance, shall notify the
Controller of the amount of debt service that will be paid on each
transportation bond during that month.
(B) Within two business days following the 28th day of each month,
the Controller shall transfer to the Transportation Debt Service
Fund an amount equal to the amount of monthly debt service paid by
the General Fund on any bonds issued pursuant to the Seismic Retrofit
Bond Act of 1996 (Chapter 12.48 (commencing with Section 8879) of
Division 1 of Title 2 of the Government Code) or any other highway
bonds, and three-quarters of the amount of debt service paid on any
bonds issued pursuant to the Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006 (Chapter 12.49
(commencing with Section 8879.20) of Division 1 of Title 2) for
reimbursement of the General Fund for these costs. If revenues
available pursuant to this subdivision in any given month are
insufficient to fully reimburse the General Fund for the debt service
payments made, the first revenues available pursuant to this
subdivision in the following month or months shall be transferred to
the Transportation Debt Service Fund so that all debt service
payments made on these bonds from the General Fund in a given fiscal
year are fully reimbursed.
(2) After the monthly transfer made pursuant to paragraph (1), the
Controller shall transfer any remaining net revenues subject to this
subdivision as follows:
(A) Thirty percent shall be transferred to the State Highway
Account to fund projects in the State Transportation Improvement
Program that are consistent with Section 1 of Article XIX of the
California Constitution, except in the 2010-11 fiscal year, 50
percent shall be transferred for purposes of this subparagraph.
(B) Thirty percent shall be transferred to the State Highway
Account to fund projects in the State Highway Operation and
Protection Program, except in the 2010-11 fiscal year, no revenues
shall be transferred for purposes of this subparagraph.
(C) Forty percent shall be apportioned by the Controller for local
street and road purposes, except in the 2010-11 fiscal year, 50
percent shall be transferred for purposes of this subparagraph as
follows:
(i) Fifty percent shall be apportioned by the Controller to
cities, including a city and county, in the proportion that the total
population of the city bears to the total population of all the
cities in the state.
(ii) Fifty percent shall be apportioned by the Controller to
counties, including a city and county, in accordance with the
following formulas:
(I) Seventy-five percent shall be apportioned among the counties
in the proportion that the number of fee-paid and exempt vehicles
that are registered in the county bear to the number of fee-paid and
exempt vehicles registered in the state.
(II) Twenty-five percent shall be apportioned among the counties
in the proportion that the number of miles of maintained county roads
in each county bear to the total number of miles of maintained
county roads in the state. For the purposes of apportioning funds
under this subparagraph, any roads within the boundaries of a city
and county that are not state highways shall be deemed to be county
roads.
(b) After the transfers or
apportionments pursuant to subdivision (a), at least 90 percent
of the balance deposited to the credit of the Highway Users Tax
Account in the Transportation Tax Fund by the 28th day of each month
shall be apportioned or transferred, as applicable, by the
State Controller by the second working day
thereafter, except for June, in which case the apportionment or
transfer shall be made the same day. These apportionments
or transfers shall be made as provided for in Sections 2104 to
2122, inclusive. If information is not available to make the
apportionment or transfer as required, the apportionment
or transfer shall be made on the basis of the information
of the previous month. Amounts not apportioned or transferred
shall be included in the apportionment or transfer
of the subsequent month.
SEC. 22. The provisions of this act are severable.
If any provision of this act or its application is held invalid,
that invalidity shall not affect other provisions or applications
that can be given effect without the invalid provision or
application.
SEC. 23. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SEC. 24. This act addresses the fiscal emergency
declared by the Governor by proclamation on January 8, 2010, pursuant
to subdivision (f) of Section 10 of Article IV of the California
Constitution.
SECTION 1. It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2009.
SEC. 2. This act addresses the fiscal emergency
declared by the Governor by proclamation on January 8, 2010,
pursuant to subdivision (f) of Section 10 of Article IV of the
California Constitution.
SECTION 1. (a) The functioning of the California
economy depends on a fully operational and well-maintained
transportation system as well as its related infrastructure in order
to provide for the efficient movement of goods, travel of employees
commuting to their places of work, and connection of businesses to
their customers.
(b) The state and local governments within the state have delayed
for many years the maintenance and repair of streets and highways
such that the resulting condition of those streets and highways
affects both public safety and the efficient functioning of the
economy. A recent survey found that California ranks 47th out of the
50 states in expenditures on street and highway maintenance.
(c) The California economy is in a deep recession, with overall
unemployment in excess of 12 percent. Employment by public transit
agencies has shrunk significantly during this recession. Maintaining
the streets and highways in this state and providing for the
operation of California's transit systems will generate badly needed
jobs nearly as quickly as the funds can be disbursed.
SEC. 2. Section 41204.2 is added to the
Education Code , to read:
41204.2. (a) (1) Pursuant to paragraph (1) of subdivision (b) of
Section 41204, the Director of Finance shall adjust "the percentage
of General Fund revenues appropriated for school districts and
community college districts, respectively, in fiscal year 1986-87"
for purposes of applying paragraph (1) of subdivision (b) of Section
8 of Article XVI of the California Constitution, to reflect the
allocation of certain tax revenues to the General Fund and to special
funds required by the qualifying provisions in a manner that ensures
that changes in those allocations will have no net fiscal impact
upon the amounts that are otherwise required to be applied by the
state for the support of school districts and community college
districts pursuant to Section 8 of Article XVI of the California
Constitution.
(2) For purposes of this section, "qualifying provisions," means
Sections 6357.7, 6051.8, 6201.8, and 7361.1, subdivision (b) of
Section 7360, and subdivision (b) of Section 60050 of the Revenue and
Taxation Code, as those provisions were enacted in the 2009-10
Eighth Extraordinary Session.
(b) Notwithstanding any other provision of law, for the 2010-11
fiscal year and each fiscal year thereafter, "the percentage of
General Fund revenues appropriated for school districts and community
college districts, respectively, in fiscal year 1986-87," for
purposes of paragraph (1) of subdivision (b) of Section 8 of Article
XVI of the California Constitution, shall be deemed to be the
percentage of General Fund revenues that would have been appropriated
for those entities if the qualifying provisions had been operative
for the 1986-87 fiscal year.
(c) Pursuant to paragraph (1) of subdivision (b) of Section 41204,
it is the intent of the Legislature in enacting the act adding this
section to ensure both of the following:
(1) That the changes required by the qualifying provisions in the
allocation of certain tax revenues to the General Fund and to special
funds do not have a net fiscal impact upon school districts, as
defined in Section 41302.5, or community college districts.
(2) That the changes required by the qualifying provisions in the
allocation of certain tax revenues to the General Fund and to special
funds do not have a net fiscal impact upon the amounts of revenue
otherwise required to be applied by the state for the support of
school districts and community college districts pursuant to Section
8 of Article XVI of the California Constitution.
SEC. 3. Section 16965 of the Government
Code is amended to read:
16965. (a) The Transportation Debt Service Fund is hereby created
in the State Treasury. Moneys in the fund shall, among other things,
as provided in this section, be dedicated to payment of debt service
on bonds including bonds issued pursuant to the Clean Air and
Transportation Improvement Act of 1990 (Part 11.5 (commencing with
Section 99600) of Division 10 of the Public Utilities Code), the
Passenger Rail and Clean Air Bond Act of 1990 (Chapter 17 (commencing
with Section 2701) of Division 3 of the Streets and Highways Code),
the Seismic Retrofit Bond Act of 1996 (Chapter 12.48 (commencing with
Section 8879) of Division 1 of Title 2), the Highway Safety, Traffic
Reduction, Air Quality, and Port Security Bond Act of 2006 (Chapter
12.49 (commencing with Section 8879.20) of Division 1 of Title 2),
and the Safe, Reliable High-Speed Passenger Train Bond Act for the
21st Century (Chapter 20 (commencing with Section 2704) of Division 3
of the Streets and Highways Code). If the moneys in the fund are
insufficient to pay the balance of the debt consistent with existing
obligations, the General Fund will be used to pay the balance of any
debt service.
(b) (1) From moneys transferred to the fund pursuant to
subdivision (b) of Section 7103 of the Revenue and Taxation Code, the
Director of Finance is hereby authorized to reimburse the General
Fund for up to three hundred thirty-nine million two hundred
eighty-nine thousand three hundred forty-five dollars ($339,289,345)
for the purpose of offsetting the cost of debt service payments made
from the General Fund during the 2007-08 fiscal year for public
transportation-related general obligation bond expenditures in the
following amounts:
(A) Clean Air and Transportation Improvement Act of 1990, one
hundred twenty-three million nine hundred seventy-three thousand four
hundred ninety-three dollars ($123,973,493).
(B) Passenger Rail and Clean Air Bond Act of 1990, seventy million
nine hundred eighty-three thousand three hundred sixty-three dollars
($70,983,363).
(C) Seismic Retrofit Bond Act of 1996, one hundred forty-four
million three hundred thirty-two thousand four hundred eighty-nine
dollars ($144,332,489).
(2) From moneys transferred to the fund pursuant to subdivision
(b) of Section 7103 of the Revenue and Taxation Code, the Director of
Finance is hereby authorized to reimburse the General Fund in the
2007-08 fiscal year for two hundred million dollars ($200,000,000)
for the purpose of offsetting the cost of debt service payments made
in prior fiscal years from the General Fund for public
transportation-related general obligation bond expenditures.
(c) From moneys transferred to the fund pursuant to subdivisions
(c) and (d) of Section 7103 of the Revenue and Taxation Code, the
Director of Finance is hereby authorized to reimburse the General
Fund any amount necessary to offset the cost of debt service payments
made from the General Fund during any fiscal year for
transportation-related general obligation bond expenditures.
(d) From moneys transferred to the fund pursuant to an annual
Budget Act or other statute from the State Highway Account in the
State Transportation Fund, the Director of Finance is hereby
authorized to reimburse the General Fund any amount necessary to
offset the cost of debt service payments made from the General Fund
during any fiscal year for transportation-related general obligation
bond expenditures consistent with Article XIX of the California
Constitution.
(e) From moneys transferred to the fund pursuant to Section 2103
of the Streets and Highways Code, the Director of Finance is hereby
authorized to reimburse the General Fund any amount necessary to
offset the cost of debt service payments made from the General Fund
on any bonds issued pursuant to Proposition 192 (1996) and
three-quarters of the amount of debt service payments made from the
General Fund on any bonds issued pursuant to Proposition 1B (2006).
(f) From moneys transferred to the fund pursuant to Section 183.1
of the Streets and Highways Code, the Director of Finance is hereby
authorized to reimburse the General Fund any amount necessary to
offset the cost of debt service payments made from the General Fund
on any bonds issued pursuant to Proposition 116 (1990).
(g) From moneys transferred to the fund pursuant to Section 99315
of the Public Utilities Code, the Director of Finance is hereby
authorized to reimburse the General Fund any amount necessary to
offset the cost of debt service payments made from the General Fund
on any bonds issued pursuant to Proposition 108 (1990) and
Proposition 1A (2008), and one-quarter of the amount of debt service
payment made from the General Fund on any bonds issued pursuant to
Proposition 1B (2006).
SEC. 4. The Legislature finds and declares all of
the following:
(a) In 2008, the Legislature passed, and the Governor signed into
law, Senate Bill 375 (Chapter 728, Statutes of 2008), pursuant to
which the Legislature found that the emissions from cars and light
trucks constitute 30 percent of greenhouse gas emissions from
California. The Legislature also found, even taking into account
emission reductions from new vehicle technology and increased use of
low-carbon fuels, that California would be unable to achieve its
climate goals without changed land use patterns and improved
transportation.
(b) Senate Bill 375 authorized the State Air Resources Board to
set greenhouse gas emission reduction targets to be achieved by each
region through changed land use patterns and improved transportation.
(c) Senate Bill 375 also created a process for the regions to
include in the regional transportation plan a sustainable communities
strategy, including a distinct process for the Southern California
Association of Governments region, that would show a forecasted
development pattern and integrated transportation network to achieve,
if there is a feasible way to do so, the greenhouse gas emission
targets set by the State Air Resources Board. If there is not a
feasible way to achieve the targets within the sustainable
communities strategy, the regions must prepare an alternative
planning strategy showing the most practicable choices for
achievement of the greenhouse gas emission reduction targets.
(d) In the sustainable communities strategy, or an alternative
planning strategy, if applicable, the regions will be able to
identify transportation programs and projects that would enable the
regions to mitigate the greenhouse gas emissions from cars and light
trucks in order to achieve the targets set by the State Air Resources
Board.
(e) The State Air Resources Board has found that 70 percent of air
pollution is caused by the combustion of motor vehicle fuel. Under
federal law, each regional transportation plan must demonstrate that
it will conform to the requirements of the federal Clean Air Act (42
U.S.C. Sec. 7401 et seq.). As part of the regional transportation
plan, the region may identify transportation programs and projects
that will mitigate or avoid pollution from criteria air pollutants
caused by motor vehicle fuels, and that would help achieve conformity
with the federal Clean Air Act. "Criteria air pollutants" are air
pollutants determined pursuant to Section 108 of the federal Clean
Air Act (42 U.S.C. Sec. 7408).
(f) Funding for transit operations has been severely reduced.
Without adequate transit funding, the regions will not be able to
implement transit programs to mitigate the climate impacts and air
quality impacts caused by the consumption of motor vehicle fuels in
cars and light trucks.
(g) It is also appropriate to provide additional funding for
pedestrian and bicycle facilities. Improved and continuous sidewalks
remove barriers to transit use by facilitating safe walking access to
transit stops. Bicycles are an effective environmentally sound
transportation mode.
(h) It is the intent of Section 5 of this act to authorize
metropolitan planning organizations, or within the Southern
California Association of Governments region, a county transportation
commission, to establish a light-duty vehicle mitigation fee within
their jurisdictions on users of motor vehicle fuels to fund
transportation programs and projects that are found by the regional
transportation plan to mitigate pollution from criteria air
pollutants and greenhouse gas emissions caused by the use of those
fuels in cars and light trucks.
SEC. 5. Chapter 2 (commencing with Section 55830)
is added to Part 3 of Division 2 of Title 5 of the
Government Code , to read:
CHAPTER 2. LIGHT-DUTY VEHICLE MITIGATION FEE
55830. (a) Subject to the approval of the voters pursuant to
subdivision (d), a metropolitan planning organization designated
pursuant to Section 134 of Title 23 of the United States Code may
impose a light-duty vehicle mitigation fee in all or part of its
jurisdiction pursuant to this section. The fee shall become operative
on the first day of the first calendar quarter commencing more than
90 days after voter approval.
(b) The fee shall be in addition to any other levies that the
metropolitan planning organization is authorized to impose. The fee
may be implemented for a period not to exceed 30 years on all
purchasers of motor vehicle fuels sold in all or part of the
jurisdiction of the metropolitan planning organization for use in a
car or light truck. The rate of the fee shall be established by the
metropolitan planning organization on a per gallon basis. As used in
this chapter, motor vehicle fuel includes, but is not limited to,
gasoline and diesel fuel which shall have the same meanings set forth
in Section 7316 and Section 60022, respectively, of the Revenue and
Taxation Code.
(c) (1) Revenues from the fee may be expended for transit,
bicycle, and pedestrian programs, including operation and maintenance
of transit services, that have been identified in the regional
transportation plan, provided that the metropolitan planning
organization has made a finding that the programs cost-effectively
mitigate and avoid pollution from criteria air pollutants, determined
pursuant to Section 108 of the federal Clean Air Act (42 U.S.C. Sec.
7408), and greenhouse gas emissions directly associated with the
operation of cars and light trucks, that the programs are consistent
with a strategy adopted pursuant to Section 65080 that would achieve
the greenhouse gas emissions reduction targets adopted by the State
Air Resources Board, and that there is a nexus between the payers of
the fee and the mitigation or avoidance of pollution from criteria
air pollutants and greenhouse gas emissions funded by the fee. A
metropolitan planning organization that includes a light-duty vehicle
mitigation fee in its regional transportation plan shall identify
the transit, bicycle, and pedestrian programs that would be funded by
the fee in the financial element of the regional transportation
plan. The financial element shall also identify the eligible transit
operators and other recipients and the amount of funds that would be
needed from all sources, including the light-duty vehicle mitigation
fee, for each year of the programs through the planning horizon of
the regional transportation plan.
(2) A fee authorized by this chapter shall include sufficient
funding, together with other funding sources realistically projected
to be available, to operate and maintain each program for the
duration of the fee.
(d) (1) Following the adoption by the metropolitan planning
organization of a regional transportation plan that provides for a
fee pursuant to this chapter, the board of supervisors of each county
and city and county in the jurisdiction of the metropolitan planning
organization where the fee is to be imposed shall, upon the request
of the metropolitan planning organization, submit to the voters at a
local election consolidated with a statewide primary or general
election specified by the metropolitan planning organization, a
measure, adopted by the organization, authorizing the organization to
impose the fee within all or part of the region consistent with
subdivision (c).
(2) The metropolitan planning organization shall reimburse each
county or city and county in the affected part of the region for the
cost of submitting the measure to the voters. These costs shall be
reimbursed from revenues derived from the fee if the measure is
approved by the voters or, if the measure is not approved, from any
funds of the metropolitan planning organization that are available
for general transportation planning.
(e) (1) Upon approval of the measure by a majority of the voters
voting at an election within that part of the region where the fee is
to be imposed, the metropolitan planning organization may impose the
fee. The fee shall be imposed on the purchaser of motor vehicle fuel
in a car or light truck at the point of retail sale in each county
or city and county within the region where the fee is imposed, and
shall be collected from the purchaser by the retailer and transmitted
to the State Board of Equalization. The ordinance shall provide for
refund, by the board, of fees paid for motor vehicle fuel that is not
used in a car or light truck.
(2) The fee required to be collected by the retailer and any
amount unreturned to the customer which is not the fee but was
collected from the customer under the representation that it was the
fee constitutes debts owed by the retailer to the state.
(3) The fees imposed by this chapter are due and payable quarterly
on or before the last day of the month next succeeding each calendar
quarter. The payment shall be accompanied by a return in the form
prescribed by the State Board of Equalization.
(f) (1) The metropolitan planning organization shall contract with
the State Board of Equalization for the administration of the fee
imposed under paragraph (1) of subdivision (a), and the board shall
be reimbursed for its actual cost in the administration of the fee,
including administration of refunds, and for its actual cost of
preparation to administer the fee based upon an independent audit.
(2) The State Board of Equalization shall collect the fees
pursuant to the Fee Collection Procedure Law (Part 30 (commencing
with Section 55001) of Division 2 of the Revenue and Taxation Code).
(3) After deducting its cost of administering the fee, the State
Board of Equalization shall periodically transmit the net revenues,
less refunds, to the metropolitan planning organization as promptly
as possible. Transmittal of those revenues shall be made at least
twice in each calendar quarter.
(g) The net revenues of the fee shall be deposited into the
Light-Duty Vehicle Mitigation Fund, to be created and administered by
the metropolitan planning organization, and shall be expended in
accordance with this chapter. The metropolitan planning organization
shall promptly transmit the funds to each eligible recipient pursuant
to the regional transportation plan.
(h) The metropolitan planning organization may issue bonds backed
solely by revenues from the fee authorized by this chapter. Revenues
from the fee may be pledged for payment of debt service on those
bonds.
(i) Notwithstanding any other provision of this section, in the
region served by the multicounty transportation planning agency
described in Section 130004 of the Public Utilities Code, a county
transportation commission may impose the fee within the region of its
jurisdiction if it finds that the transit, bicycle and pedestrian
programs, including operation and maintenance of transit services,
that have been identified in the regional transportation plan, cost
effectively mitigate and avoid pollution from criteria air
pollutants, determined pursuant to Section 108 of the federal Clean
Air Act (42 U.S.C. Sec. 7408), and greenhouse gas emissions directly
associated with the operation of cars and light trucks, that the
programs are consistent with a strategy adopted by the metropolitan
planning organization that would achieve the greenhouse gas emission
reduction targets adopted by the State Air Resources Board, and that
there is a nexus between the payers of the fee and the mitigation or
avoidance of pollution from criteria air pollutants and greenhouse
emissions funded by the fee. In this case, the county transportation
commission, rather than the metropolitan planning organization, shall
exercise all of the powers under this section relative to imposition
of the fee.
(j) The requirement for voter approval pursuant to subdivision (d)
is not a requirement of the California Constitution.
SEC. 6. Section 99312 of the Public
Utilities Code is amended to read:
99312. Except as provided in Sections 99311 and 99311.5, and
except as otherwise provided in subdivisions (d) and (e), the
funds in the account shall be made available for the following
purposes:
(a) Fifty Twenty-five percent for
purposes of Section 99315 , subject to appropriation by the
Legislature .
(b) To the Controller, 25 37.5
percent for allocation to transportation planning agencies, county
transportation commissions, and the San Diego Metropolitan Transit
Development Board pursuant to Section 99314. Commencing with the
2011-12 fiscal year, these funds are hereby continuously
appropriated for purposes of this subdivision.
(c) To the Controller, 25 37.5
percent for allocation to transportation agencies, county
transportation commissions, and the San Diego Metropolitan Transit
Development Board for purposes of Section 99313. Commencing with
the 2011-12 fiscal year, these funds are hereby
continuously appropriated for purposes of this subdivision.
(d) For the 2007-08 fiscal year, notwithstanding any other
provision of this section, or any other provision of law, the
allocations made pursuant to this section shall be adjusted as
follows:
(1) From the funds transferred to the account pursuant to
paragraph (1) of subdivision (a) of Section 7102 of the Revenue and
Taxation Code, fifty million dollars ($50,000,000) is hereby
appropriated to the Controller and shall be allocated pursuant to
subdivision (b); fifty million dollars ($50,000,000) is hereby
appropriated to the Controller and shall be allocated pursuant to
subdivision (c); and the remainder of revenue shall remain in the
Public Transportation Account to fund other state public
transportation priorities. The Controller shall make these
allocations in four equal quarterly amounts of twelve million five
hundred thousand dollars ($12,500,000), as achievable by the receipt
of the specified revenue.
(2) The amount appropriated in Item 2640-101-0046 of the Budget
Act of 2006 for state transit assistance pursuant to subdivision (b)
and (c) was greater than the amount of revenues received to support
state transit assistance pursuant to Section 7102 of the Revenue and
Taxation Code. Therefore, notwithstanding any other provision of law,
the amount that would have otherwise been available for
appropriation to state transit assistance in the 2007-08 fiscal year
pursuant to paragraphs (2) and (3) of subdivision (a) of Section 7102
of the Revenue and Taxation Code, shall be reduced by the excess
amount that was appropriated to state transit assistance in the
Budget Act of 2006, and that excess amount, as determined by the
Department of Finance, shall instead remain in the Public
Transportation Account to fund other state public transportation
priorities. The funding for state transit assistance as described in
this paragraph is hereby appropriated to the Controller for
allocation. The Controller shall attempt to spread this adjustment
equally over four quarterly payments, as achievable by revenue
estimates.
(e) For the 2008-09 fiscal year and thereafter, notwithstanding
any other provision of this section or any other provision of law,
and except as provided in subdivision (f), the funds transferred to
the account pursuant
to paragraph (1) of subdivision (a) of Section 7102 of the Revenue
and Taxation Code shall be made available for the following purposes:
(1) For purposes of Section 99315, 33.34 percent, subject to
appropriation by the Legislature.
(2) To the Controller, 33.33 percent for allocation to
transportation planning agencies, county transportation commissions,
and the San Diego Metropolitan Transit Development Board pursuant to
Section 99314. These funds are hereby continuously appropriated for
purposes of this paragraph.
(3) To the Controller, 33.33 percent for the allocation to
transportation agencies, county transportation commissions, and the
San Diego Metropolitan Transit Development Board for purposes of
Section 99313. These funds are hereby continuously appropriated for
purposes of this paragraph.
(f) For the 2009-10 to 2012-13 fiscal years, inclusive,
notwithstanding any other provision of this section or any other
provision of law, the funds in the account subject to this section
shall be made available only for purposes of Section 99315, subject
to appropriation by the Legislature.
(d) (1) For the 2009-10 fiscal year, notwithstanding any other
provision of this section or any other provision of law, the sum of
four hundred million dollars ($400,000,000) is hereby appropriated
from the account to the Controller for immediate allocation pursuant
to paragraph (2). These funds are intended to cover the two-year
period of the 2009-10 and 2010-11 fiscal years. The remaining funds
in the account subject to this section shall be available for the
purposes of Section 99315, subject to appropriation by the
Legislature.
(2) (A) Fifty percent of the amount appropriated to the Controller
pursuant to paragraph (1) shall be allocated to transportation
planning agencies, county transportation commissions, and the San
Diego Metropolitan Transit Development Board pursuant to Section
99314.
(B) Fifty percent of the amount appropriated to the Controller
pursuant to paragraph (1) shall be allocated to transportation
planning agencies, county transportation commissions, and the San
Diego Metropolitan Transit Development Board pursuant to Section
99313.
(e) For the 2010-11 fiscal year, notwithstanding any other
provision of this section or any other provision of law, the funds in
the account subject to this section shall be made available only for
purposes of Section 99315, subject to appropriation by the
Legislature.
SEC. 7. Section 99315 of the Public
Utilities Code is amended to read:
99315. Funds made available pursuant to subdivision (a) of
Section 99312 , shall be available for all of the
following purposes:
(a) To the department for bus and passenger rail services pursuant
to Sections 14035, 14035.5, and 14038 of the Government Code.
(b) To the department for funding of public transit capital
improvement projects in the state transportation improvement program,
pursuant to Section 14529 of the Government Code.
(c) To the department for its planning activities not payable from
the State Highway Account in the State Transportation Fund, its mass
transportation responsibilities, and its assistance in regional
transportation planning.
(d) To the department for allocation by the director to the
Institute of Transportation Studies of the University of California
for training and research in public transportation systems
engineering and management and coordination with other transportation
modes.
(e) To the commission for its activities not payable from the
State Highway Account.
(f) To the Public Utilities Commission for its passenger rail
safety responsibilities specified in statute on commuter rail,
intercity rail, and urban rail transit lines.
(g) To the State Department of Developmental Services for funding
of regional center transportation.
(h) To the Department of Education for funding of home-to-school
transportation, pursuant to Article 10 (commencing with Section
41850) of Chapter 5 of, and Small School District Transportation,
pursuant to Article 4.5 (commencing with Section 42290) of Chapter 7
of, Part 24 of Division 3 of Title 2 of the Education Code.
(i) To
(g) For transfer to the Transportation
Debt Service Fund created by Section 16965 of the Government Code to
reimburse the General Fund for current debt service payments on
rail and transit-related general obligation bonds
. For the 2009-10 fiscal year, the Director of Finance is
authorized to reimburse up to two hundred twenty-five million
forty-four thousand dollars ($225,044,000) in General Fund
expenditures for this purpose. other than those issued
pursuant to the Clean Air and Transportation Improvement Act of 1990
(Part 11.5 (commencing with Section 99600)), as follows:
(1) For the 2009-10 fiscal year, the Controller shall transfer up
to one hundred forty-two million fifty-eight thousand dollars
($142,058,000) to the fund upon order of the Director of Finance.
(2) For the 2010-11 fiscal year, the Controller shall transfer up
to two hundred fifty-four million two hundred twenty-two thousand
dollars ($254,222,000) to the fund, as follows:
(A) By the 15th of every month, the Treasurer, in consultation
with the Director of Finance, shall notify the Controller of the
amount of debt service that will be paid on each transportation bond
during that month.
(B) Within two business days following the 28th of every month,
the Controller shall transfer from the account to the Transportation
Debt Service Fund an amount equal to monthly debt service paid by the
General Fund on any bonds issued pursuant to Proposition 108 (1990)
and Proposition 1A (2008), and one-quarter of the monthly debt
service paid by the General Fund on any bonds issued pursuant to
Proposition 1B (2006).
SEC. 8. Section 6051.8 is added to the
Revenue and Taxation Code , to read:
6051.8. (a) In addition to the taxes imposed by this part, for
the privilege of selling tangible personal property at retail, a tax
is hereby imposed upon all retailers at the rate of 1.75 percent of
the gross receipts of any retailer from the sale of all diesel fuel,
as defined in Section 60022, sold at retail in this state on and
after the operative date of this subdivision.
(b) Subdivision (a) shall become operative on July 1, 2011.
SEC. 9. Section 6201.8 is added to the
Revenue and Taxation Code , to read:
6201.8. (a) In addition to the taxes imposed by this part, an
excise tax is hereby imposed on the storage, use, or other
consumption in the state of diesel fuel, as defined in Section 60022,
at the rate of 1.75 percent of the sales price of the diesel fuel on
and after the operative date of this subdivision.
(b) Subdivision (a) shall become operative on July 1, 2011.
SEC. 10. Section 6357.7 is added to the
Revenue and Taxation Code , to read:
6357.7. (a) On and after July 1, 2010, there are exempted from
the taxes imposed by this part, the gross receipts from the sale in
this state of, and the storage, use, or other consumption in this
state of, motor vehicle fuel, as defined in Section 7326.
(b) (1) Notwithstanding any provision of the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section
7200)) or the Transactions and Use Tax Law (Part 1.6 (commencing with
Section 7251)), the exemption established by this section shall not
apply with respect to any tax levied by a county, city, or district
pursuant to, or in accordance with, either of those laws.
(2) The exemption established by this section shall not apply with
respect to any tax levied pursuant to Section 6051.2, 6051.5,
6201.2, or 6201.5, or pursuant to Section 35 of Article XIII of the
California Constitution.
SEC. 11. Section 7102.1 is added to the
Revenue and Taxation Code , to read:
7102.1. Notwithstanding subdivision (b) of Section 7102, the
revenues, less refunds, derived from the tax in Sections 6051.8 and
6201.8 shall be estimated by the State Board of Equalization, with
the concurrence of the Department of Finance, and shall be
transferred quarterly to the Public Transportation Account in the
State Transportation Fund.
SEC. 12. Section 7103 of the Revenue
and Taxation Code is repealed.
7103. (a) The Mass Transportation Fund is hereby created in the
State Treasury. Upon appropriation by the Legislature, moneys in the
Mass Transportation Fund may be used for, but shall not necessarily
be limited to, the following transportation purposes:
(1) Payment of debt service on transportation bonds, or
reimbursement to the General Fund for past debt service payments on
transportation bonds.
(2) Funding of the Department of Developmental Services for
regional center transportation.
(3) Reimbursement to the General Fund for payments made by the
General Fund pursuant to subdivision (f) of Section 1 of Article XIX
B of the California Constitution.
(4) Funding of home-to-school transportation, pursuant to Article
10 (commencing with Section 41850) of Chapter 5 of Part 24 of the
Education Code, and Small School District Transportation, pursuant to
Article 4.5 (commencing with Section 42290) of Chapter 7 of Part 24
of the Education Code.
(b) From moneys transferred to the fund pursuant to subparagraph
(G) of paragraph (1) of subdivision (a) of Section 7102 in the
2007-08 fiscal year, the sum of five hundred thirty-nine million two
hundred eighty-nine thousand three hundred forty-eight dollars
($539,289,348) shall be transferred to the Transportation Debt
Service Fund, and the sum of eighty-two million six hundred
seventy-eight thousand dollars ($82,678,000) may be reimbursed by the
Director of Finance in the 2007-08 fiscal year for the purpose of
offsetting payments made by the General Fund pursuant to subdivision
(f) of Section 1 of Article XIX B of the California Constitution.
(c) From moneys transferred to the fund pursuant to subparagraph
(H) of paragraph (1) of subdivision (a) of Section 7102 in the
2008-09 fiscal year, the sum of eighty-two million six hundred
seventy-eight thousand dollars ($82,678,000) may be reimbursed by the
Director of Finance for the purpose of offsetting payments made by
the General Fund pursuant to subdivision (f) of Section 1 of Article
XIX B of the California Constitution, and the Director of Finance may
transfer any funds remaining in the fund after this reimbursement of
the General Fund to the Transportation Debt Service Fund.
(d) From moneys transferred to the fund pursuant to subparagraph
(I) of paragraph (1) of subdivision (a) of Section 7102, the Director
of Finance may transfer to the Transportation Debt Service Fund any
amount necessary to offset the cost of debt service payments made
from the General Fund during any fiscal year for
transportation-related general obligation bond expenditures.
SEC. 13. Section 7360 of the Revenue and
Taxation Code is amended to read:
7360. (a) A tax of eighteen cents ($0.18) is hereby imposed upon
each gallon of fuel subject to the tax in Sections 7362, 7363, and
7364.
(b) If the federal fuel tax is reduced below the rate of nine
cents ($0.09) per gallon and federal financial allocations to this
state for highway and exclusive public mass transit guideway purposes
are reduced or eliminated correspondingly, the tax rate imposed by
this section, on and after the date of the reduction, shall be
recalculated by an amount so that the combined state and federal tax
rate per gallon equals twenty-seven cents ($0.27).
(c) If any person or entity is exempt or partially exempt from the
federal fuel tax at the time of a reduction, the person or entity
shall continue to be so exempt under this section.
(b) (1) On and after July 1, 2010, in addition to the tax imposed
by subdivision (a), a tax is hereby imposed upon each gallon of fuel
subject to the tax in Sections 7362, 7363, and 7364 in an amount
equal to twelve and nine-tenths cents ($0.129) per gallon.
(2) For the 2011-12 fiscal year and each fiscal year thereafter,
the board shall, on or before March 1 of the fiscal year immediately
preceding the applicable fiscal year, adjust the rate in paragraph
(1) in that manner as to generate an amount of revenue that will
equal the amount of revenue loss attributable to the exemption
provided by Section 6357.7, based on estimates made by the board.
(3) (A) In order to maintain revenue neutrality, for the rate
adjustment on or before March 1, 2012, the adjustment under paragraph
(2) shall also take into account the extent to which, for the
2010-11 fiscal year, the difference between actual amount of revenues
derived pursuant to this subdivision and Section 7361.1 and the
revenue loss attributable to the exemption provided by Section 6357.7
either exceeded or was less than a revenue loss of six hundred
sixty-five million dollars ($665,000,000).
(B) In order to maintain revenue neutrality for each year,
beginning with the rate adjustment on or before March 1, 2013, the
adjustment under paragraph (2) shall also take into account the
extent to which the actual amount of revenues derived pursuant to
this subdivision and the revenue loss attributable to the exemption
provided by Section 6357.7 differed from the estimates used in making
the adjustment under paragraph (2) for the fiscal year ending prior
to the rate adjustment date on or before March 1.
(4) The intent of paragraphs (2) and (3) is to ensure that the act
adding this subdivision and Section 6357.7 do not produce a net
revenue gain in state taxes.
SEC. 14. Section 7361.1 is added to the
Revenue and Taxation Code , to read:
7361.1. (a) For the privilege of storing, for the purpose of
sale, each supplier, wholesaler, and retailer owning 1,000 or more
gallons of tax-paid motor vehicle fuel on July 1, 2010, shall pay a
storage tax of twelve and nine-tenths cents ($0.129) per gallon of
tax-paid motor vehicle fuel in storage according to the volumetric
measure thereof.
(b) For purposes of this section:
(1) "Owning" means having title to the motor vehicle fuel.
(2) "Retailer" means any person who sells motor vehicle fuel in
this state to a person who subsequently uses the motor vehicle fuel.
(3) "Storing" includes the ownership or possession of tax-paid
motor vehicle fuel outside of the bulk transfer/terminal system,
including the holding of tax-paid motor vehicle fuel for sale at
wholesale or retail locations stored in a container of any kind,
including railroad tank cars and trucks or trailer cargo tanks.
"Storing" also includes tax-paid motor vehicle fuel purchased from
and invoiced by the seller, and tax-paid motor vehicle fuel removed
from a terminal or entered into by a supplier, prior to the date
specified in subdivision (a) and in transit on that date.
(4) "Wholesaler" means any person who sells motor vehicle fuel in
this state for resale to a retailer or to a person who is not a
retailer and subsequently uses the motor vehicle fuel.
SEC. 15. Section 7653.1 is a dded to
the Revenue and Taxation Code , to read:
7653.1. On or before August 31, 2010, each person subject to the
storage tax imposed under Section 7361.1 shall prepare and file with
the board, in a form prescribed by the board, a return showing the
total number of gallons of tax-paid motor vehicle fuel owned by the
person on July 1, 2010, the amount of the storage tax, and any other
information that the board deems necessary for the proper
administration of this part. The return shall be accompanied by a
remittance payable to the Controller in the amount of tax due.
SEC. 16. Section 17276.12 is added to the
Revenue and Taxation Code , to read:
17276.12. (a) For taxable years beginning on or after January 1,
2010, and before January 1, 2011, total deductions under Sections
17276, 17276.1, 17276.2, 17276.4, 17276.5, 17276.6, and 17276.7 of
this code and Section 172 of the Internal Revenue Code shall not
exceed 68 percent of the taxpayer's total income.
(b) For purposes of this section, "total income" means gross
income (within the meaning of Section 17071) without regard to any
deductions otherwise allowable in determining adjusted gross income
(within the meaning of Section 17072) and without regard to any
deduction otherwise allowable under Sections 17276, 17276.1, 17276.2,
17276.4, 17276.5, 17276.6, and 17276.7 of this code and Section 172
of the Internal Revenue Code.
(c) For any net operating loss or carryover of a net operating
loss for which a deduction is denied by subdivision (a), the
carryover period under Section 172 of the Internal Revenue Code shall
be extended by one year.
SEC. 17. Section 23663 of the Revenue
and Taxation Code is amended to read:
23663. (a) (1) Notwithstanding any other law to the contrary, for
each taxable year beginning on or after July 1, 2008, any credit
allowed to a taxpayer under this chapter that is an "eligible credit
(within the meaning of paragraph (2) of subdivision (b)) may be
assigned by that taxpayer to any "eligible assignee" (within the
meaning of paragraph (3) of subdivision (b)).
(2) A credit assigned under paragraph (1) may only be applied by
the eligible assignee against the "tax" of the eligible assignee in a
taxable year beginning on or after January 1, 2010
2011 .
(3) Except as specifically provided in this section, following an
assignment of any eligible credit under this section, the eligible
assignee shall be treated as if it originally earned the assigned
credit.
(b) For purposes of this section, the following definitions shall
apply:
(1) "Affiliated corporation" means a corporation that is a member
of a commonly controlled group as defined in Section 25105.
(2) "Eligible credit" shall mean:
(A) Any credit earned by the taxpayer in a taxable year beginning
on or after July 1, 2008, or
(B) Any credit earned in any taxable year beginning before July 1,
2008, that is eligible to be carried forward to the taxpayer's first
taxable year beginning on or after July 1, 2008, under the
provisions of this part.
(3) "Eligible assignee" shall mean any affiliated corporation that
is properly treated as a member of the same combined reporting group
pursuant to Section 25101 or 25110 as the taxpayer assigning the
eligible credit as of:
(A) In the case of credits earned in taxable years beginning
before July 1, 2008:
(i) June 30, 2008, and
(ii) The last day of the taxable year of the assigning taxpayer in
which the eligible credit is assigned.
(B) In the case of credits earned in taxable years beginning on or
after July 1, 2008.
(i) The last day of the first taxable year in which the credit was
allowed to the taxpayer, and
(ii) The last day of the taxable year of the assigning taxpayer in
which the eligible credit is assigned.
(c) (1) The election to assign any credit under subdivision (a)
shall be irrevocable once made, and shall be made by the taxpayer
allowed that credit on its original return for the taxable year in
which the assignment is made.
(2) The taxpayer assigning any credit under this section shall
reduce the amount of its unused credit by the face amount of any
credit assigned under this section, and the amount of the assigned
credit shall not be available for application against the assigning
taxpayer's "tax" in any taxable year, nor shall it thereafter be
included in the amount of any credit carryover of the assigning
taxpayer.
(3) The eligible assignee of any credit under this section may
apply all or any portion of the assigned credits against the "tax"
(as defined in Section 23036) of the eligible assignee for the
taxable year in which the assignment occurs, or any subsequent
taxable year, subject to any carryover period limitations that apply
to the assigned credit and also subject to the limitation in
paragraph (2) of subdivision (a).
(4) In no case may the eligible assignee sell, otherwise transfer,
or thereafter assign the assigned credit to any other taxpayer.
(d) (1) No consideration shall be required to be paid by the
eligible assignee to the assigning taxpayer for assignment of any
credit under this section.
(2) In the event that any consideration is paid by the eligible
assignee to the assigning taxpayer for the transfer of an eligible
credit under this section, then:
(A) No deduction shall be allowed to the eligible assignee under
this part with respect to any amounts so paid, and
(B) No amounts so received by the assigning taxpayer shall be
includable in gross income under this part.
(e) (1) The Franchise Tax Board shall specify the form and manner
in which the election required under this section shall be made, as
well as any necessary information that shall be required to be
provided by the taxpayer assigning the credit to the eligible
assignee.
(2) Any taxpayer who assigns any credit under this section shall
report any information, in the form and manner specified by the
Franchise Tax Board, necessary to substantiate any credit assigned
under this section and verify the assignment and subsequent
application of any assigned credit.
(3) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code shall not apply to any
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to paragraphs (1) and (2).
(4) The Franchise Tax Board may issue any regulations necessary to
implement the purposes of this section, including any regulations
necessary to specify the treatment of any assignment that does not
comply with the requirements of this section (including, for example,
where the taxpayer and eligible assignee are not properly treated as
members of the same combined reporting group on any of the dates
specified in paragraph (3) of subdivision (b).
(f) (1) The taxpayer and the eligible assignee shall be jointly
and severally liable for any tax, addition to tax, or penalty that
results from the disallowance, in whole or in part, of any eligible
credit assigned under this section.
(2) Nothing in this section shall limit the authority of the
Franchise Tax Board to audit either the assigning taxpayer or the
eligible assignee with respect to any eligible credit assigned under
this section.
(g) On or before June 30, 2013 2014
, the Franchise Tax Board shall report to the Joint Legislative
Budget Committee, the Legislative Analyst, and the relevant policy
committees of both houses on the effects of this section. The report
shall include, but need not be limited to, the following:
(1) An estimate of use of credits in the 2010 and
2011 and 2012 taxable years by eligible
taxpayers.
(2) An analysis of effect of this section on expanding business
activity in the state related to these credits.
(3) An estimate of the resulting tax revenue loss to the state.
(4) The report shall cover all credits covered in this section,
but focus on the credits related to research and development,
economic incentive areas, and low income housing.
SEC. 18. Section 24416.12 is added to the
Revenue and Taxation Code , to read:
24416.12. (a) For taxable years beginning on or after January 1,
2010, and before January 1, 2011, total deductions under Sections
24416, 24416.1, 24416.2, 24416.4, 24416.5, 24416.6, and 24416.7 of
this code and Section 172 of the Internal Revenue Code shall not
exceed 68 percent of the taxpayer's net income, determined without
regard to any deduction otherwise allowable under Sections 24416,
24416.1, 24416.2, 24416.4, 24416.5, 24416.6, and 24416.7 of this code
and Section 172 of the Internal Revenue Code.
(b) For any net operating loss or carryover of a net operating
loss for which a deduction is denied by subdivision (a), the
carryover period under Section 172 of the Internal Revenue Code shall
be extended by one year.
SEC. 19. Section 60050 of the Revenue
and Taxation Code is amended to read:
60050. (a) A tax of eighteen cents ($0.18) is hereby
imposed upon each gallon of diesel fuel subject to the tax in
Sections 60051, 60052, and 60058.
(b) If the federal fuel tax is reduced below the rate of fifteen
cents ($0.15) per gallon and federal financial allocations to this
state for highway and exclusive public mass transit guideway purposes
are reduced or eliminated correspondingly, the tax rate imposed by
this section, on and after the date of the reduction, shall be
increased by an amount so that the combined state and federal tax
rate per gallon equals thirty-three cents ($0.33).
(c) If any person or entity is exempt or partially exempt from the
federal fuel tax at the time of a reduction, the person or entity
shall continue to be exempt under this section.
(b) (1) On July 1, 2011, the tax rate specified in subdivision (a)
shall be reduced to thirteen and six-tenths cents ($0.136) and every
July 1 thereafter shall be adjusted pursuant to paragraphs (2) and
(3).
(2) For the 2012-13 fiscal year and each fiscal year thereafter,
the board shall, on or before March 1 of the fiscal year immediately
preceding the applicable fiscal year, adjust the rate in paragraph
(1) in that manner as to generate an amount of revenue that will
equal the amount of revenue gain attributable to Sections 6051.8 and
6201.8, based on estimates made by the board.
(3) In order to maintain revenue neutrality for each year,
beginning with the rate adjustment on or before March 1, 2013, the
adjustment under paragraph (2) shall take into account the extent to
which the actual amount of revenues derived pursuant to Sections
6051.8 and 6201.8 and the revenue loss attributable to this
subdivision resulted in a net revenue gain or loss for the fiscal
year ending prior to the rate adjustment date on or before March 1.
(4) The intent of paragraphs (2) and (3) is to ensure that the act
adding this subdivision and Sections 6051.8 and 6201.8 do not
produce a net revenue gain in state taxes.
SEC. 20. Section 183.1 of the Streets
and Highways Code is amended to read:
183.1. (a) Notwithstanding subdivision (a) of Section 182 or any
other provision of law, money deposited into the account that is not
subject to Article XIX of the California Constitution, including, but
not limited to, money that is derived from the sale of documents,
charges for miscellaneous services to the public, condemnation
deposits fund investments, rental of state property, or any other
miscellaneous uses of property or money, may be used for any
transportation purpose authorized by statute, upon appropriation by
the Legislature or, after transfer to another fund, upon
appropriation by the Legislature from that fund.
(b) (1) Not later than November 1 of each
year, except as otherwise provided in subdivision (c),
based on prior year financial statements, the State
Controller shall transfer the funds identified in
subdivision (a) for the prior fiscal year to the Public
Transportation Account in the State Transportation Fund.
(2) From the funds transferred to the Public Transportation
Account pursuant to this subdivision in the 2009-10 fiscal year, the
Controller shall retransfer to the State Highway Account the sum of
seventy-eight million nine hundred three thousand dollars
($78,903,000). Notwithstanding paragraph (1), the Controller shall
then transfer these funds from the State Highway Account to the
Transportation Debt Service Fund in the State Transportation Fund.
(c) Notwithstanding subdivision (b), in the 2010-11 fiscal year,
and not later than November 1, 2010, based on prior year financial
statements, the Controller shall transfer the funds identified in
subdivision (a) for the prior fiscal year to the Transportation Debt
Service Fund in the State Transportation Fund.
(d) Notwithstanding Section 99312 of the Public Utilities Code,
commencing with the 2011-12 fiscal year, the funds transferred to the
Public Transportation Account pursuant to subdivision (b) shall be
made available only for the purposes of Section 99315 of the Public
Utilities Code, subject to appropriation by the Legislature, except
as provided in paragraphs (1) and (2).
(1) For the 2011-12 fiscal year, eleven million five hundred
thousand dollars ($11,500,000), subject to appropriation by the
Legislature, shall be allocated pursuant to subdivision (b) of
Section 99312 of the Public Utilities Code, and eleven million five
hundred thousand dollars ($11,500,000), subject to appropriation by
the Legislature, shall be allocated pursuant to subdivision (c) of
Section 99312 of the Public Utilities Code.
(2) For the 2012-13 fiscal year, six million dollars ($6,000,000),
subject to appropriation by the Legislature, shall be allocated
pursuant to subdivision (b) of Section 99312 of the Public Utilities
Code, and six million dollars ($6,000,000), subject to appropriation
by the Legislature, shall be allocated pursuant to subdivision (c) of
Section 99312 of the Public Utilities Code.
SEC. 21. Section 2103 of the Streets
and Highways Code is amended to read:
2103. At (a) Of the
net revenues deposited to the credit of the Highway Users Tax
Account that are derived from the increases in the rates of taxes
that are imposed pursuant to subdivision (b) of Section 7360 and
Section 7361.1 of the Revenue and Taxation Code, all of the following
shall occur on a monthly basis:
(1) (A) By the 15th day of every month, the Treasurer's office, in
consultation with the Department of Finance, shall notify the
Controller of the amount of debt service that will be paid on each
transportation bond during that month.
(B) Within two business days following the 28th day of each month,
the Controller shall transfer to the Transportation Debt Service
Fund an amount equal to the amount of monthly debt service paid by
the General Fund on any bonds issued pursuant to the Seismic Retrofit
Bond Act of 1996 (Chapter 12.48 (commencing with Section 8879) of
Division 1 of Title 2 of the Government Code) or any other highway
bonds, and three-quarters of the amount of debt service paid on any
bonds issued pursuant to the Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006 (Chapter 12.49
(commencing with Section 8879.20) of Division 1 of Title 2) for
reimbursement of the General Fund for these costs. If revenues
available pursuant to this subdivision in any given month are
insufficient to fully reimburse the General Fund for the debt service
payments made, the first revenues available pursuant to this
subdivision in the following month or months shall be transferred to
the Transportation Debt Service Fund so that all debt service
payments made on these bonds from the General Fund in a given fiscal
year are fully reimbursed.
(2) After the monthly transfer made pursuant to paragraph (1), the
Controller shall transfer any remaining net revenues subject to this
subdivision as follows:
(A) Thirty percent shall be transferred to the State Highway
Account to fund projects in the State Transportation Improvement
Program that are consistent with Section 1 of Article XIX of the
California Constitution, except in the 2010-11 fiscal year, 50
percent shall be transferred for purposes of this subparagraph.
(B) Thirty percent shall be transferred to the State Highway
Account to fund projects in the State Highway Operation and
Protection Program, except in the 2010-11 fiscal year, no revenues
shall be transferred for purposes of this subparagraph.
(C) Forty percent shall be apportioned by the Controller for local
street and road purposes, except in the 2010-11 fiscal year, 50
percent shall be transferred for purposes of this subparagraph as
follows:
(i) Fifty percent shall be apportioned by the Controller to
cities, including a city and county, in the proportion that the total
population of the city bears to the total population of all the
cities in the state.
(ii) Fifty percent shall be apportioned by the Controller to
counties, including a city and county, in accordance with the
following formulas:
(I) Seventy-five percent shall be apportioned among the counties
in the proportion that the number of fee-paid and exempt vehicles
that are registered in the county bear to the number of fee-paid and
exempt vehicles registered in the state.
(II) Twenty-five percent shall be apportioned among the counties
in the proportion that the number of miles of maintained county roads
in each county bear to the total number of miles of maintained
county roads in the state. For the purposes of apportioning funds
under this subparagraph, any roads within the boundaries of a city
and county that are not state highways shall be deemed to be county
roads.
(b) After the transfers or
apportionments pursuant to subdivision (a), at least 90 percent
of the balance deposited to the credit of the Highway Users Tax
Account in the Transportation Tax Fund by the 28th day of each month
shall be apportioned or transferred, as applicable, by the
State Controller by the second working day
thereafter, except for June, in which case the apportionment or
transfer shall be made the same day. These apportionments
or transfers shall be made as provided for in Sections 2104 to
2122, inclusive. If information is not available to make the
apportionment or transfer as required, the apportionment
or transfer shall be made on the basis of the information
of the previous month. Amounts not apportioned or transferred
shall be included in the apportionment or transfer
of the subsequent month.
SEC. 22. The provisions of this act are severable.
If any provision of this act or its application is held invalid,
that invalidity shall not affect other provisions or applications
that can be given effect without the invalid provision or
application.
SEC. 23. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SEC. 24. This act addresses the fiscal emergency
declared by the Governor by proclamation on January 8, 2010, pursuant
to subdivision (f) of Section 10 of Article IV of the California
Constitution.
SECTION 1. It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2009.
SEC. 2. This act addresses the fiscal emergency
declared by the Governor by proclamation on January 8, 2010,
pursuant to subdivision (f) of Section 10 of Article IV of the
California Constitution.
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22 and 28.
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