BILL NUMBER: AB 1098 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 31, 2012
PASSED THE ASSEMBLY SEPTEMBER 1, 2012
AMENDED IN SENATE AUGUST 30, 2012
AMENDED IN SENATE AUGUST 7, 2012
AMENDED IN ASSEMBLY MARCH 31, 2011
INTRODUCED BY Assembly Member Carter
(Principal coauthors: Senators Negrete McLeod and Emmerson)
FEBRUARY 18, 2011
An act to amend Sections 11003 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 1098, Carter. Vehicle license fees: allocation.
Existing law requires 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, 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, on and after July 1, 2012, that
those revenues be distributed first to each city that was
incorporated from an unincorporated territory after August 5, 2004,
in an amount determined pursuant to a specified formula, second to
each city that was incorporated before August 5, 2004, in an amount
determined pursuant to a specified formula, and third to the Local
Law Enforcement Services Account in the Local Revenue Fund 2011, for
allocation to cities, counties, and cities and counties. 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.
Existing law requires the Legislature to determine and appropriate
annually an amount for the use of the Department of Motor Vehicles
and the Franchise Tax Board for the enforcement of the Vehicle
License Fee Law.
This bill would not allow that amount to be appropriated from the
Motor Vehicle License Fee Account in the Transportation Tax Fund.
This bill would declare that it is to take effect immediately as
an urgency statute.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) It is the intent of the Legislature commencing with the
2012-13 fiscal year to reinstate allocations of motor vehicle license
fees to recently incorporated cities and cities which annexed
inhabited areas, consistent with the allocation formula those
communities relied upon when making the decision to incorporate or
annex the affected territory.
(b) It is also the intent of the Legislature to ensure that such
revenues and incentives remain available for other communities
considering incorporation, including unincorporated communities of
East Los Angeles, and annexations of inhabited areas, including
disadvantaged unincorporated communities.
(c) Numerous state laws support the policy of furthering orderly
development in compact forms, including the annexation of inhabited
territory and the incorporation of communities consistent with state
laws, the policies of local agency formation commissions, and often
the approval of local voters.
(d) The passage of Senate Bill 89 of the 2011-12 Regular Session
(Chapter 35 of the Statutes of 2011) removed critical revenues from
these communities without providing a reasonable opportunity for
input from the affected agencies and the public.
SEC. 2. Section 11003 of the Revenue and Taxation Code is amended
to read:
11003. The Legislature shall annually determine and appropriate
an amount for the use of the Department of Motor Vehicles and the
Franchise Tax Board for the enforcement of this part. That amount
shall not be appropriated from the Motor Vehicle License Fee Account
in the Transportation Tax Fund.
SEC. 3. Section 11005 of the Revenue and Taxation Code is amended
to read:
11005. After payment of refunds therefrom 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, 2012:
(1) First, 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 (d) of Section 11005.3, of all
cities during the most recent fiscal year, divided by the actual
population, as defined in subdivision (d) 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.
(2) Second, 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 (d) of Section 11005.3, of all
cities during the most recent fiscal year, divided by the actual
population, as defined in subdivision (d) of Section 11005.3, of all
cities in the 2004-05 fiscal year.
(B) The actual population, as defined in subdivision (d) of
Section 11005.3, residing in areas annexed after August 5, 2004, as
of the date of annexation.
(3) Third, 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 and after July 1, 2011, and before July 1, 2012, 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.
(c) On or after July 1, 2004, but before July 1, 2011:
(1) 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.
(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 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 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.
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 restore critical revenues to recently incorporated
cities and cities that annexed inhabited areas, removed from these
communities as a result of the passage of Senate Bill 89 of the
2011-12 Regular Session (Chapter 35 of the Statutes of 2011) without
providing a reasonable opportunity for input from the affected
agencies and the public, it is necessary that this act take effect
immediately.