BILL NUMBER: ABX1 36	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Solorio
   (Coauthors: Assembly Members Harkey and Norby)
   (Coauthor: Senator Correa)

                        JULY 1, 2011

   An act to amend Sections 11001.5 and 11005 of the Revenue and
Taxation Code, relating to taxation, making an appropriation
therefor, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 36, as introduced, Solorio. Vehicle license fees.
   Existing law, as proposed to be amended by SB 89 of the 2011-12
Regular Session, would require that a specified amount of motor
vehicle license fees deposited to the credit of the Motor Vehicle
License Fee Account in the Transportation Tax Fund be allocated by
the Controller, as specified, according to a specified order, with
moneys allocated on or after July 1, 2004, but before July 1, 2011,
first to the County of Orange, next to each city and county meeting
specified criteria, and on or after July 1, 2011, to the Local Law
Enforcement Services Account in the Local Revenue Fund 2011, for
allocation to cities, counties, and cities and counties.
   This bill would instead require for all of those times that a
specified portion of those revenues be distributed first to the
County of Orange. By authorizing within the Motor Vehicle License Fee
Account in the Transportation Tax Fund, a continuously appropriated
fund, to be used for a new purpose, the bill would make an
appropriation. This bill would become operative only if SB 89 is
chaptered, as provided.
   The California Constitution authorizes the Governor to declare a
fiscal emergency and to call the Legislature into special session for
that purpose. Governor Schwarzenegger issued a proclamation
declaring a fiscal emergency, and calling a special session for this
purpose, on December 6, 2010. Governor Brown issued a proclamation on
January 20, 2011, declaring and reaffirming that a fiscal emergency
exists and stating that his proclamation supersedes the earlier
proclamation for purposes of that constitutional provision.
   This bill would state that it addresses the fiscal emergency
declared and reaffirmed by the Governor by proclamation issued on
January 20, 2011, pursuant to the California Constitution.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 11001.5 of the Revenue and Taxation Code, as
amended by Section 7 of Senate Bill 89 of the 2011-12 Regular
Session, is amended to read:
   11001.5.  (a) (1) Notwithstanding Section 11001, and except as
provided in paragraph (2) and in subdivisions (b) and (d), 24.33
percent, and on and after July 1, 2004, 74.9 percent, of the moneys
collected by the department under this part shall be reported monthly
to the Controller, and at the same time, deposited in the State
Treasury to the credit of the Local Revenue Fund, as established
pursuant to Section 17600 of the Welfare and Institutions Code. All
other moneys collected by the department under this part shall
continue to be deposited to the credit of the Motor Vehicle License
Fee Account in the Transportation Tax Fund and in accordance with the
following:
   (A)  Before July 1, 2011, first   First 
  allocated to the County of Orange as provided in
subdivision  (b)   (a)  of Section 11005
and as necessary for the service of indebtedness as pledged by
Sections 25350.6 and 53585.1 of the Government Code and in accordance
with written instructions provided by the Controller under Sections
25350.7, 25350.9, and 53585.1 of the Government Code, and the balance
shall be allocated to each city and city and county as otherwise
provided by law.
   (B) On and after July 1, 2011, allocated pursuant to subdivision
 (a)   (c)  of Section 11005.
   (2) For the period beginning on and after July 1, 2003, and ending
on February 29, 2004, the Controller shall deposit an amount equal
to 28.07 percent of the moneys collected by the department under this
part in the State Treasury to the credit of the Local Revenue Fund.
All other moneys collected by the department under this part shall
continue to be deposited to the credit of the Motor Vehicle License
Fee Account in the Transportation Tax Fund and allocated to each
city, county, and city and county as otherwise provided by law.
   (b) (1) Notwithstanding Section 11001, net funds collected as a
result of procedures developed for greater compliance with vehicle
license fee laws in order to increase the amount of vehicle license
fee collections shall be reported monthly to the Controller, and at
the same time, deposited in the State Treasury to the credit of the
Vehicle License Collection Account of the Local Revenue Fund as
established pursuant to Section 17600 of the Welfare and Institutions
Code. All revenues in excess of fourteen million dollars
($14,000,000) in the 2004-05 fiscal year and in any fiscal year
thereafter shall be allocated to cities, counties, and cities and
counties as follows:
   (A) (i) Fifty percent shall be paid to the cities and cities and
counties of this state in the proportion that the population of each
city or city and county bears to the total population of all cities
and cities and counties in this state, as determined by the
population research unit of the Department of Finance. For purposes
of this subparagraph, the population of each city or city and county
is that population determined by the last federal decennial or
special census, or a subsequent census validated by the population
research unit or subsequent estimate prepared pursuant to Section
2107.2 of the Streets and Highways Code.
   (ii) In the case of a city incorporated subsequent to the last
federal census, or a subsequent census validated by the population
research unit, the population research unit shall determine the
population of the city. In the case of unincorporated territory
annexed to a city subsequent to the last federal census, or a
subsequent census validated by the population research unit, the
population research unit shall determine the population of the
annexed territory by the use of any federal decennial or special
census, or estimate prepared pursuant to Section 2107.2 of the
Streets and Highways Code. In the case of the consolidation of one
city with another subsequent to the last federal census, or a
subsequent census validated by the population research unit, the
population of the consolidated city, for the purpose of this
subparagraph, is the aggregate population of the respective cities as
determined by the last federal census, or a subsequent census or
estimate validated by the population research unit.
   (B) Fifty percent shall be paid to the counties and cities and
counties in the proportion that the population of each county or city
and county bears to the total population of all counties and cities
and counties, as determined by the population research unit. For
purposes of this subparagraph, the population of each county or city
and county is that determined by the last federal census, or
subsequent census validated by the population research unit, or as
determined by Section 11005.6 of the Revenue and Taxation Code.
   (2) The amendments made to this section by the act that added this
paragraph are operative upon the enactment of that act. However, the
amendments made by the act that added this paragraph apply to
revenues in the Vehicle License Collection Account in excess of
fourteen million dollars ($14,000,000) in the 2004-05 fiscal year and
any fiscal year thereafter.
   (c) Notwithstanding Section 11001, 25.72 percent of the moneys
collected by the department on or after August 1, 1991, and before
August 1, 1992, under this part shall be reported monthly to the
Controller, and at the same time, deposited in the State Treasury to
the credit of the Local Revenue Fund, as established pursuant to
Section 17600 of the Welfare and Institutions Code. All other moneys
collected by the department under this part shall continue to be
deposited to the credit of the Motor Vehicle License Fee Account in
the Transportation Tax Fund and allocated to each city, county, and
city and county as otherwise provided by law.
   (d) Notwithstanding any other  provision of  law,
both of the following apply:
   (1) This section is operative for the period beginning on and
after March 1, 2004.
   (2) It is the intent of the Legislature that the total amount
deposited by the Controller in the State Treasury to the credit of
the Local Revenue Fund for the 2003-04 fiscal year be equal to the
total amount that would have been deposited to the credit of the
Local Revenue Fund if paragraph (1) of subdivision (a) was applied
during that entire fiscal year. The department shall calculate and
notify the Controller of the adjustment amounts that are required by
this paragraph to be deposited in the State Treasury to the credit of
the Local Revenue Fund. The amounts deposited in the State Treasury
to the credit of the Local Revenue Fund pursuant to this paragraph
shall be deemed to have been deposited during the 2003-04 fiscal
year.
   (e) This section does not amend nor is it intended to amend or
impair Section 25350 and following of, Section 53584 and following
of, the Government Code, or any other statute dealing with the
interception of funds.
  SEC. 2.  Section 11005 of the Revenue and Taxation Code, as amended
by Section 9 of Senate Bill 89 of the 2011-12 Regular Session, is
amended to read:
   11005.  After payment of refunds therefrom and after making the
deductions authorized by Section 11003 and reserving the amount
determined necessary by the Pooled Money Investment Board to meet the
transfers ordered or proposed to be ordered pursuant to Section
16310 of the Government Code, the balance of all motor vehicle
license fees and any other money appropriated by law for expenditure
pursuant to this section, deposited to the credit of the Motor
Vehicle License Fee Account in the Transportation Tax Fund, and
remaining unexpended in that account at the close of business on the
last day of the calendar month, shall be allocated by the Controller
by the 10th day of the following month in accordance with the
following: 
   (a) On and after July 1, 2011, to the Local Law Enforcement
Services Account in the Local Revenue Fund 2011, as established by
Section 30025 of the Government Code, for allocation to cities,
counties, and cities and counties. 
   (b) On or after July 1, 2004, but before July 1, 2011: 

   (1) 
    (a)  First, to the County of Orange. For the 2004-05
fiscal year, that county shall be allocated fifty-four million
dollars ($54,000,000) in monthly installments. For the 2005-06 fiscal
year and each fiscal year thereafter, that county shall receive, in
monthly installments, an amount equal to the amount allocated under
this section for the prior fiscal year, adjusted for the percentage
change in the amount of revenues credited to the Motor Vehicle
License Fee Account in the Transportation Tax Fund from the revenues
credited to that account in the prior fiscal year. Moneys allocated
to the County of Orange under this subdivision shall be used first
for the service of indebtedness as provided in paragraph (1) of
subdivision (a) of Section 11001.5. Any amounts in excess of the
amount required for this service of indebtedness may be used by that
county for any lawful purpose. 
   (b) On and after July 1, 2004, but before July 1, 2011: 

   (2) 
    (1)  Second, to each city, the population of which is
determined under Section 11005.3 on August 5, 2004, in an amount
equal to the additional amount of vehicle license fee revenue,
including offset transfers, that would be allocated to that city
under Sections 11000 and 11005, as those sections read on January 1,
2004, as a result of that city's population being determined under
subdivision (a) or (b) of Section 11005.3. 
   (3) 
    (2)  Third, to each city that was incorporated from an
unincorporated territory after August 5, 2004, in an amount equal to
the product of the following two amounts:
   (A) The quotient derived from the following fraction:
   (i) The numerator is the product of the following two amounts:
   (I) Fifty dollars ($50) per year.
   (II) The fraction determined as the total amount of vehicle
license fee revenue collected during the most recent fiscal year
divided by the total amount of vehicle license fee revenue collected
during the 2004-05 fiscal year.
   (ii) The denominator is the fraction determined as the actual
population, as defined in subdivision (e) of Section 11005.3, of all
cities during the most recent fiscal year, divided by the actual
population, as defined in subdivision (e) of Section 11005.3, of all
cities in the 2004-05 fiscal year.
   (B) The city's population determined in accordance with Section
11005.3. 
   (4) 
    (3)  Fourth, to each city that was incorporated before
August 5, 2004, in an amount equal to the product of the following
two amounts:
   (A) The quotient derived from the following fraction:
   (i) The numerator is the product of the following two amounts:
   (I) Fifty dollars ($50) per year.
   (II) The fraction determined as the total amount of vehicle
license fee revenue collected during the most recent fiscal year
divided by the total amount of vehicle license fee revenue collected
during the 2004-05 fiscal year.
   (ii) The denominator is the fraction determined as the actual
population, as defined in subdivision (e) of Section 11005.3, of all
cities during the most recent fiscal year, divided by the actual
population, as defined in subdivision (e) of Section 11005.3, of all
cities in the 2004-05 fiscal year.
   (B) The actual population, as defined in subdivision (e) of
Section 11005.3, residing in areas annexed after August 5, 2004, as
of the date of annexation. 
   (5) 
    (4)   Fifth, to the cities and cities and counties of
this state in the proportion that the population of each city or city
and county bears to the total population of all cities and cities
and counties in this state, as determined by the Demographic Research
Unit of the Department of Finance. For the purpose of this
subdivision, the population of each city or city and county shall be
determined in accordance with Section 11005.3. 
   (c) On or after July 1, 2011, to the Local Law Enforcement
Services Account in the Local Revenue Fund 2011, as established by
Section 30025 of the Government Code, for allocation to cities,
counties, and cities and counties. 
  SEC. 3.  This act addresses the fiscal emergency declared and
reaffirmed by the Governor by proclamation on January 20, 2011,
pursuant to subdivision (f) of Section 10 of Article IV of the
California Constitution.
  SEC. 4.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to not adversely affect the County of Orange due to the
enactment of Senate Bill 89, it is necessary for this act to take
effect immediately.
  SEC. 5.  This bill shall become operative only if Senate Bill 89 of
the 2011-12 Regular Session is chaptered and amends Sections 11001.5
and 11005 of the Revenue and Taxation Code.