BILL NUMBER: ABX1 41 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Members Solorio and Charles Calderon
(Principal coauthor: Senator Wolk)
(Coauthors: Assembly Members Alejo and Wieckowski)
AUGUST 31, 2011
An act to amend Sections 10752.2, 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 41, as introduced, Solorio. Vehicle license fees.
The Vehicle License Fee Law, in lieu of any ad valorem property
tax upon vehicles, imposes an annual license fee on any vehicle
subject to registration in this state in the amount, on and after
July 1, 2011, of 0.65% of the market value of that vehicle, as
provided. For all initial and renewal registrations due on and after
May 1, 2009, but before July 1, 2011, existing law also imposes an
additional fee equal to 0.15% of the market value of specified
vehicles, as determined by the Department of Motor Vehicles, to be
deposited in the General Fund and transferred to the Local Safety and
Protection Account. Existing law continuously appropriates all
moneys in the Local Safety and Protection Account without regard to
fiscal year, to the Controller for allocation, as provided.
This bill would, for all initial and renewal registrations due on
and after January 1, 2012, impose an additional vehicle license fee
equal to 0.15% of the market value of the above-described vehicles,
as specified. It would also require all revenues from the additional
license fee to be deposited in the General Fund. During the 2011-12
fiscal year, the bill would transfer an amount to the Local Law
Enforcement Services Account in the Local Revenue Fund 2011, a
continuously appropriated fund, for allocation to cities, counties,
and cities and counties, as specified. The bill would require a
transfer of revenues, during the 2012-13 fiscal year and each fiscal
year thereafter to be allocated according the following order: first
to be transferred to the Local Law Enforcement Services Account in
the Local Revenue Fund 2011, as specified; and second, a total of
$35,000,000 to be transferred to the Bureau of Narcotics Enforcement
and Bureau of Investigation and Intelligence Fund, which the bill
would create as a continuously appropriated fund. Funds not
transferred would continue to be General Fund moneys. By depositing
moneys into a continuously appropriated fund and by establishing a
new, continuously appropriated fund, the bill would make an
appropriation.
Existing law requires that a specified portion of the motor
vehicle license fee revenues deposited to the credit of the Motor
Vehicle License Fee Account in the Transportation Tax Fund be
allocated or transferred by the Controller with those revenues being
allocated on or after July 1, 2004, but before July 1, 2011, first to
the County of Orange and next to each city and county meeting
specified criteria; and those revenues being allocated 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 limit that allocation for the 2011-12
fiscal year and each fiscal year thereafter to $300,000,000 in
monthly installments. The bill would then allocate the moneys to the
County of Orange, and to other cities and counties meeting specified
criteria in the order specified prior to July 1, 2011, as provided.
By authorizing revenues deposited in 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.
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. The Legislature hereby finds and declares both of the
following:
(a) Chapter 35 of the Statutes of 2011 amended Section 11003 of
the Revenue and Taxation Code to delete the previous transfer of
revenues from the Motor Vehicle License Fee Account in the
Transportation Tax Fund for use by the Department of Motor Vehicles
and the Franchise Tax Board for the enforcement of the Vehicle
License Fee Law (Part 5 (commencing with Section 10701) of Division 2
of the Revenue and Taxation Code). For the 2011-12 fiscal year, the
deletion of this transfer means that an additional $300,000,000 is
available for allocation from the account pursuant to Section 11005
of the Revenue and Taxation Code.
(b) It is the intent of the Legislature to allocate this
additional amount to the Local Law Enforcement Services Account in
the Local Revenue Fund 2011 for use by cities, counties, and cities
and counties.
SEC. 2. Section 10752.2 of the Revenue and Taxation Code is
amended to read:
10752.2. (a) (1) For initial or renewal
registrations due on and after May 19, 2009, but before July 1, 2011,
in addition to the annual license fee for a vehicle, other than a
commercial motor vehicle described in Section 9400.1 of the Vehicle
Code, imposed pursuant to Sections 10752 and 10752.1, a sum equal to
0.15 percent of the market value of the vehicle , as
determined by the department, shall be added to that annual fee.
(2) For initial or renewal registrations due on and after January
1, 2012, in addition to the annual license fee for a vehicle, other
than a commercial motor vehicle described in Section 9400.1 of the
Vehicle Code, imposed pursuant to Sections 10752 and 10752.1, a sum
equal to 0.15 percent of the market value of the vehicle, as
determined by the department, shall be added to that annual fee.
(b) (1) Notwithstanding Chapter 5
(commencing with Section 11001) or any other law to the contrary, all
revenues (including penalties), less refunds, derived from fees
collected pursuant to paragraph (1) of subdivision (a)
shall be deposited in the General Fund and transferred to the Local
Safety and Protection Account, which is hereby established in the
Transportation Tax Fund. Notwithstanding Section 13340 of the
Government Code, all moneys in the account derived from fees
collected pursuant to paragraph (1) of subdivision (a) are
hereby continuously appropriated, without regard to fiscal year, to
the Controller for allocation pursuant to Sections 29553, 30061, and
30070 of the Government Code, Section 13821 of the Penal Code, and
Sections 18220 and 18220.1 of the Welfare and Institutions Code. All
revenue derived from paragraph (1) of subdivision (a) that
is received after June 30, 2011, shall be deemed to have been
received during the 2010-11 fiscal year for purposes of allocation by
the Controller.
(2) Notwithstanding Chapter 5 (commencing with Section 11001) or
any other law to the contrary, all revenues (including penalties),
less refunds, derived from fees collected pursuant to paragraph (2)
of subdivision (a) shall be deposited in the General Fund and
transferred as follows:
(A) Moneys received during the 2011-12 fiscal year derived from
paragraph (2) of subdivision (a) shall be transferred 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, in an amount that,
together with the amount deposited pursuant to subdivision (b) of
Section 30027 of the Government Code, does not exceed four hundred
eighty-nine million nine hundred thousand dollars ($489,900,000).
Notwithstanding any other law, those moneys transferred to the Local
Law Enforcement Services Account pursuant to this subparagraph and
subdivision (b) of Section 30027 of the Government Code shall be
allocated in the manner provided in paragraphs (1) to (6), inclusive,
of subdivision (e) of Section 30029 of the Government Code. The
references contained in this subparagraph to sections of the
Government Code refer to those sections as they read on July 8, 2011.
(B) Moneys received during the 2012-13 fiscal year and each fiscal
year thereafter derived from paragraph (2) of subdivision (a) shall:
(i) First, be transferred 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 in an amount that, together with the amount
deposited pursuant to subdivision (b) of Section 30027 of the
Government Code, does not exceed four hundred eighty-nine million
nine hundred thousand dollars ($489,900,000). Notwithstanding any
other law, those moneys transferred to the Local Law Enforcement
Services Account pursuant to this subparagraph and subdivision (b) of
Section 30027 of the Government Code shall be allocated in the
manner provided in paragraphs (1) to (6), inclusive, of subdivision
(e) of Section 30029 of the Government Code. The references contained
in this clause to sections of the Government Code refer to those
sections as they read on July 8, 2011.
(ii) Second, a total of thirty-five million dollars ($35,000,000)
shall be transferred to the Bureau of Narcotics Enforcement and
Bureau of Investigation and Intelligence Fund, which is hereby
established in the State Treasury. Notwithstanding Section 13340 of
the Government Code, all moneys in the fund are hereby continuously
appropriated without regard to fiscal year to the Department of
Justice for the performance of the duties performed by the Bureau of
Narcotics Enforcement and the Bureau of Investigation and
Intelligence.
(3) All moneys deposited in the General Fund pursuant to paragraph
(2) and not transferred pursuant to subparagraphs (A) and (B) of
paragraph (2) shall continue to be General Fund moneys.
(c) (1) In 2010 2011 and each
calendar year thereafter, the Director of Finance shall, no later
than January 10 and upon the enactment of the Budget Act during the
calendar year, make a written determination of whether any of the
moneys derived from fees collected pursuant to paragraph (1) or
(2) of subdivision (a) are being allocated by the state for any
purpose not authorized by paragraph (1) or (2), as applicable,
of subdivision (b), respectively, and shall
immediately submit his or her written determination to all of the
following:
(A) The Director of the Department of Motor Vehicles.
(B) The Joint Legislative Budget Committee.
(C) The Senate and Assembly Appropriations Committees.
(D) The Senate and Assembly Revenue and Taxation Committees.
(2) If the Director of Finance determines that any moneys derived
from fees collected pursuant to paragraph (1) or (2) of
subdivision (a) are being allocated by the state for a purpose not
authorized by paragraph (1) or (2), as applicable, of
subdivision (b), the Director of the Department of Motor Vehicles
shall, upon receipt of the written determination, immediately cease
collection of the those fees imposed by
paragraph (1) or (2) of subdivision (a), and shall resume
collection of those fees only upon his or her receipt of written
determination provided under paragraph (1) that specifies that none
of the moneys derived from those fees collected pursuant
to paragraph (1) or (2) of subdivision (a) are being
allocated by the state for a purpose not authorized by paragraph
(1) or (2), as applicable, of subdivision (a)
(b) .
SEC. 3. Section 11001.5 of the Revenue and Taxation Code 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: allocated
to the County of Orange as provided in paragraph (1) of subdivision
(b) 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 to each city and city and county as provided by
law.
(A) Before July 1, 2011, first allocated to the County of Orange
as provided in subdivision (b) 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) 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 Chapter 78 of the
Statutes of 2006 are operative upon the enactment of
that act on July 18, 2006 . However, the
amendments made by the act that added this paragraph
Chapter 78 of the Statutes of 2006 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. 4. Section 11005 of the Revenue and Taxation Code 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:
(a) For the 2011-12 fiscal year and each fiscal year thereafter,
three hundred million dollars ($300,000,000) payable in monthly
installments 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) After the allocation made pursuant to subdivision (a), as
follows:
(1) First, to the County of Orange as required by paragraph
(1) of subdivision (a) of Sec tion 11001.5 . 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.
(2) 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) Third, to each city that was incorporated from an
unincorporated territory after August 5, 2004, in monthly
installments from the date of incorporation, 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) Fourth, to each city that was incorporated before August 5,
2004, in monthly installments, 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) 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) The Controller shall make any adjustments necessary to ensure
that allocations for the 2010-11 fiscal year and 2011-12 fiscal year
are equal to the allocations that would have been made had this
section been in effect between July 1, 2011, and the effective date
of the act that adds this subdivision.
SEC. 5. 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. 6. 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 protect public safety and timely avoid adverse effects
upon cities, counties, or a city and county resulting from the
enactment of Chapter 35 of the Statutes of 2011, it is necessary for
this act to take effect immediately.