BILL NUMBER: AB 1446	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 15, 2012
	AMENDED IN SENATE  AUGUST 7, 2012
	AMENDED IN SENATE  JUNE 19, 2012
	AMENDED IN ASSEMBLY  MAY 17, 2012
	AMENDED IN ASSEMBLY  APRIL 26, 2012
	AMENDED IN ASSEMBLY  APRIL 17, 2012
	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Feuer
   (Coauthor: Assembly Member Brownley)

                        JANUARY 4, 2012

   An act to amend Section 130350.5 of, and to add Section 130350.6
to, the Public Utilities Code, relating to transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1446, as amended, Feuer. Los Angeles County Metropolitan
Transportation Authority: transactions and use tax.
   Existing law authorizes the Los Angeles County Metropolitan
Transportation Authority (MTA) to impose, in addition to any other
tax that it is authorized to impose, a transactions and use tax at a
rate of 0.5% for not more than 30 years for the funding of specified
transportation-related purposes pursuant to an adopted expenditure
plan, subject to voter approval.
   This bill would authorize the MTA to impose that transactions and
use tax  without a limitation as to   beyond
 its  current  duration, subject to voter approval. The
bill would require the MTA to include, in the proposing ordinance, a
new expenditure plan for the tax revenues. The bill would permit the
MTA to secure bonded indebtedness payable from the proceeds of the
tax imposed and would require that the proceeds from those bonds, and
from the tax after repayment of bonded indebtedness, be used to
accelerate the completion of specified projects and programs, and to
fund specified operations. The bill would require the MTA to use any
tax proceeds remaining after completion of designated capital
projects and payment of bonded indebtedness for specified long-range
transportation projects. The bill would make other related conforming
changes.
   Vote: majority. Appropriation: no. 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 all of the
following:
   (a) Section 130350.5 of the Public Utilities Code authorizes the
Los Angeles County Metropolitan Transportation Authority (MTA) to
propose for voter approval a 30-year1/2 cent sales and use tax
dedicated to the construction and operation of transportation-related
projects, to be enumerated in a local ballot measure. In November
2008, more than 67 percent of Los Angeles County voters approved this
tax pursuant to a ballot measure known as Measure R.
   (b) The Measure R transit, highway, and other transportation
projects became part of the MTA's Long Range Transportation Plan,
along with an expenditure plan that spread the costs and construction
of the Measure R projects over the 30-year duration of the1/2 cent
sales and use tax.
   (c) Since 2008, the nation and the State of California have
plunged into a recession. In Los Angeles County, 336,000 jobs have
been lost since 2007. An estimated 582,900 people were unemployed in
Los Angeles County as of October 2011. The construction industry has
been hit particularly hard: more than 53,300 construction jobs have
been lost since 2007, and some estimates put the percentage of area
construction workers who are out of work as high as 40 percent.
   (d) Traffic congestion is increasing throughout Los Angeles
County, and new, environmentally sound transit options are
desperately needed as alternatives to private vehicle trips and the
economic, environmental, and health impacts that result from them.
   (e) Therefore, the Legislature intends to authorize the MTA to
seek voter approval to  extend or  eliminate the sunset date
for the imposition of the Measure R sales and use tax authorization
and allow the MTA to bond against the proceeds from the tax and build
the Measure R projects and programs much sooner than originally
contemplated. Providing for the imposition of this sales and use tax
and for the accelerated completion of Measure R projects and programs
would create more than 166,000 desperately needed jobs and
dramatically improve the economy, environment, and public health of
Los Angeles County.
   (f) Any future ordinance related to a Measure R extension should
provide the flexibility to amend the Measure R expenditure plan to
allow net revenues to be transferred between transit capital and
highway subfunds within a subregion, by a two-thirds vote of the MTA
governing board.
  SEC. 2.  Section 130350.5 of the Public Utilities Code is amended
to read:
   130350.5.  (a) In addition to any other tax that it is authorized
by law to impose, the Los Angeles County Metropolitan Transportation
Authority (MTA) may impose, in compliance with subdivision (b) and
Section 130350.6, a transactions and use tax at a rate of 0.5 percent
that is applicable in the incorporated and unincorporated areas of
the county.
   (b) For purposes of the taxing authority set forth in subdivision
(a), all of the following apply:
   (1) The tax shall be proposed in a transactions and use tax
ordinance, that conforms with Chapter 2 (commencing with Section
7261) to Chapter 4 (commencing with Section 7275), inclusive, of the
Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)
of Division 2 of the Revenue and Taxation Code), and that is
approved by a majority of the entire membership of the authority.
   (2) The tax may be imposed only if the proposing ordinance is
approved by two-thirds of the voters, in the manner as otherwise
required by law, voting on this measure, in an election held on
November 4, 2008, or at a subsequent election and, if so approved,
shall become operative as provided in Section 130352.
   (3) The proposing ordinance shall specify, in addition to the rate
of tax and other matters as required by the Transactions and Use Tax
Law, that the net revenues derived from the tax are to be
administered by the MTA as provided in this section. Net revenues
shall be defined as all revenues derived from the tax less any
refunds, costs of administration by the State Board of Equalization,
and costs of administration by the MTA. Such costs of administration
by the MTA shall not exceed 1.5 percent of the revenues derived from
the tax. The MTA shall, during the period in which the ordinance is
operative, allocate 20 percent of all net revenues derived from the
tax for bus operations to all eligible and included municipal transit
operators in the County of Los Angeles and to the MTA, in accordance
with Section 99285. However, the allocations to the MTA and eligible
and included municipal operators shall be made solely from revenues
derived from a tax imposed pursuant to this section, and not from
local discretionary sources. Funds allocated by MTA to itself
pursuant to this section shall be used for transit operations and
shall not supplant funds from any other source allocated by MTA to
itself for public transit operations. Funds allocated by MTA to the
eligible and included municipal operators pursuant to this section
shall be used for transit operations and shall not supplant any funds
authorized by other provisions of law and allocated by MTA to the
eligible and included municipal operators for public transit. In
addition to this amount, the MTA shall allocate 5 percent of all net
revenues derived from the tax, for rail operations. The MTA shall
include the projects and programs described in subparagraphs (A) and
(B) in the expenditure plan required under subdivision (f). The MTA
shall include all projects and programs described in the expenditure
plan required under subdivision (f) in its Long Range Transportation
Plan (LRTP). The priorities for projects and programs described in
subparagraphs (A) and (B) and in the expenditure plan required under
subdivision (f) shall be those set forth in the expenditure plan. The
funding amounts specified in subparagraphs (A) and (B) are minimum
amounts that shall be allocated by the MTA from the net revenues
derived from a tax imposed pursuant to this section. Nothing in this
section prohibits the MTA from allocating additional net revenues
derived from the tax to these projects and programs.
   (A) Capital Projects.
   (i) Exposition Boulevard Light Rail Transit Project from downtown
Los Angeles to Santa Monica. The sum of nine hundred twenty-five
million dollars ($925,000,000).
   (ii) Crenshaw Transit Corridor from Wilshire Boulevard to Los
Angeles International Airport along Crenshaw Boulevard. The sum of
two hundred thirty-five million five hundred thousand dollars
($235,500,000).
   (iii) San Fernando Valley North-South Rapidways. The sum of one
hundred million five hundred thousand dollars ($100,500,000).
   (iv) Metro Gold Line (Pasadena to Claremont) Light Rail Transit
Extension. The sum of seven hundred thirty-five million dollars
($735,000,000).
   (v) Metro Regional Connector. The sum of one hundred sixty million
dollars ($160,000,000).
   (vi) Metro Westside Subway Extension. The sum of nine hundred
million dollars ($900,000,000).
   (vii) State Highway Route 5 Carmenita Road Interchange
Improvement. The sum of one hundred thirty-eight million dollars
($138,000,000).
   (viii) State Highway Route 5 Capacity Enhancement (State Highway
Route 134 to State Highway Route 170, including access improvement
for Empire Avenue). The sum of two hundred seventy-one million five
hundred thousand dollars ($271,500,000).
   (ix) State Highway Route 5 Capacity Enhancement (State Highway
Route 605 to the Orange County line, including improvements to the
Valley View Interchange). The sum of two hundred sixty-four million
eight hundred thousand dollars ($264,800,000).
   (x) State Highway Route 5/State Highway Route 14 Capacity
Enhancement. The sum of ninety million eight hundred thousand dollars
($90,800,000).
   (xi) Capital Project Contingency Fund. The sum of one hundred
seventy-three million dollars ($173,000,000).
   (B) Capital Programs.
   (i) Alameda Corridor East Grade Separations. The sum of two
hundred million dollars ($200,000,000).
   (ii) MTA and Municipal Regional Clean Fuel Bus Capital (Facilities
and Rolling Stock). The sum of one hundred fifty million dollars
($150,000,000).
   (iii) Countywide Soundwall Construction (MTA Regional List and
Monterey Park/State Highway Route 60). The sum of two hundred fifty
million dollars ($250,000,000).
   (iv) Local return for major street resurfacing, rehabilitation,
and reconstruction. The sum of two hundred fifty million dollars
($250,000,000).
   (v) Metrolink Capital Improvements. The sum of seventy million
dollars ($70,000,000).
   (vi) Eastside Light Rail Access. The sum of thirty million dollars
($30,000,000).
   (c) The MTA may incur bonded indebtedness payable from the
proceeds of the tax provided by this section pursuant to the bond
issuance provisions of Section 130500 et seq. of the Public Utilities
Code, and any successor act. The MTA shall include in the
expenditure plan, required under subdivision (f), the amount of net
revenue specified for all projects and programs in subparagraphs (A)
and (B) of paragraph (3) of subdivision (b) as a condition of the use
and expenditure of the proceeds of the tax. The MTA shall maintain
the current amount of any funding for the projects and programs
specified in this section that has been previously programmed or
received from sources other than the proceeds of the tax, and may not
reallocate money that has been previously programmed or received for
those projects and programs to other projects or uses.
   (d) Notwithstanding Section 7251.1 of the Revenue and Taxation
Code, the tax rate authorized by this section shall not be considered
for purposes of the combined rate limit established by that section.

   (e) A jurisdiction or recipient is eligible to receive funds from
the local return program, described in clause (iv) of subparagraph
(B) of paragraph (3) of subdivision (b) of this section and in
 paragraph (1) of subdivision (b)   subdivision
(c)  of Section 130350.6, only if it continues to contribute to
that program an amount that is equal to its existing commitment of
local funds or other available funds. The MTA may develop guidelines
that, at a minimum, specify maintenance of effort requirements for
the local return program, matching funds, and administrative
requirements for the recipients of revenue derived from the tax.
   (f) Prior to submitting the ordinance to the voters, the MTA shall
adopt an expenditure plan for the net revenues derived from the tax.
The expenditure plan shall include, in addition to other projects
and programs identified by the MTA, the specified projects and
programs listed in paragraph (3) of subdivision (b), the estimated
total cost for each project and program, funds other than the tax
revenues that the MTA anticipates will be expended on the projects
and programs, and the schedule during which the MTA anticipates funds
will be available for each project and program. The MTA shall also
identify in its expenditure plan the expected completion dates for
each project described in subparagraph (A) of paragraph (3) of
subdivision (b). To be eligible to receive revenues derived from the
tax, an agency sponsoring a capital project or capital program shall
submit to the MTA an expenditure plan for its project or program
containing the same elements as the expenditure plan that MTA is
required by this subdivision to prepare.
   (g) The MTA shall establish and administer a sales tax revenue
fund. The net revenue derived from the tax, after payment of any debt
services and related obligations, shall be credited to this fund.
The moneys in the fund shall be available to the MTA to meet
expenditure and cashflow needs of the projects and programs described
in the expenditure plan required under subdivision (f). In the event
that there are net revenues in excess of the amount necessary to
provide the amount of net revenues specified in the expenditure plan
for the projects and programs described therein, the MTA may expend
the excess net revenues on projects and programs in the expenditure
plan or the LRTP. In the event that projects and programs in the
expenditure plan are completed without the expenditure of the amount
of net revenues specified, the MTA shall expend the excess net
revenues on projects and programs in the expenditure plan or the LRTP
within the same subregion as the project or program that is
completed. For the purposes of this section, "subregion" shall be
defined in the LRTP.
   (h) If other funds become available and are allocated to provide
all or a portion of the amount of net revenues specified in the
expenditure plan for the projects or programs described therein, the
MTA may expend the surplus net revenues on other projects and
programs in the expenditure plan or the LRTP.
   (i) (1) Notwithstanding subdivision (h), if a capital project or
capital program described in clauses (i) to (x), inclusive, of
subparagraph (A) of paragraph (3) of subdivision (b) and clauses (i)
and (vi) of subparagraph (B) of paragraph (3) of subdivision (b), has
been fully funded from other sources on or before December 31, 2008,
the funds designated to the project or program in clauses (i) to
(x), inclusive, of subparagraph (A) of paragraph (3) of subdivision
(b) and clauses (i) and (vi) of subparagraph (B) of paragraph (3) of
subdivision (b) shall remain in the subregion in which the project or
program is located and shall be allocated to other projects or
programs in the subregion prior to the expiration of the tax.
   (2) A capital project or capital program funded with reallocated
funds pursuant to paragraph (1) shall be included in the adopted 2008
Long Range Transportation Plan or the successor plan and shall be of
regional significance as determined by the MTA. For purposes of this
subdivision, "subregions" means the subregions as defined in the
LRTP in effect as of January 1, 2008.
   (j) Notwithstanding Section 130354, revenues raised under this
section and Section 130350.6 may be used to facilitate the
transportation of people and goods within Los Angeles County. The use
of the revenues shall not be limited to public transit purposes.
   (k) No later than 365 days prior to the adoption of an amendment
described in paragraph (1) to an expenditure plan adopted pursuant to
subdivision (f), including, but not limited to, the expenditure plan
adopted by the MTA board as "Attachment A" in Ordinance #08-01
adopted by the board on July 24, 2008, and in addition to any other
notice requirements in the proposing ordinance, the board shall
notify the Members of the Legislature representing the County of Los
Angeles of all of the following:
   (1) A description of the proposed amendments to the adopted
expenditure plan that would do any of the following:
   (A) Affect the amount of net revenues derived from the tax imposed
pursuant to this act that is proposed to be expended on a capital
project or projects identified in the adopted expenditure plan.
   (B) Delay the schedule for the availability of funds proposed to
be expended on a capital project or projects identified in the
adopted expenditure plan.
   (C) Delay the schedule for the estimated or expected completion
date of a capital project or projects identified in the adopted
expenditure plan.
   (2) The reason for the proposed amendment.
   (3) The estimated impact the proposed amendment will have on the
schedule, cost, scope, or timely availability of funding for the
capital project or projects contained in the adopted expenditure
plan.
   (l) The notification required pursuant to subdivision (k) shall be
achieved by resolution adopted by the MTA board.
   (m) The MTA board shall provide prior written notice to the
Members of the Legislature representing the County of Los Angeles of
any proposed amendments to the adopted expenditure plan that would
accelerate funding for a capital project or projects in the adopted
expenditure plan.
  SEC. 3.  Section 130350.6 is added to the Public Utilities Code, to
read:
   130350.6.  (a) The tax authorized by Section 130350.5 may be
imposed as set forth in paragraph (3) of subdivision (b) of Section
130350.5 in a transactions and use tax ordinance, or an amendment of
the ordinance approved pursuant to paragraph (1) of subdivision (b)
of Section 130350.5, that conforms with Chapter 2 (commencing with
Section 7261) to Chapter 4 (commencing with Section 7275), inclusive,
of the Transactions and Use Tax Law (Part 1.6 (commencing with
Section 7251) of Division 2 of the Revenue and Taxation Code), and
that is approved by a majority of the entire membership of the
authority. The tax may be imposed pursuant to this section only if
the proposing ordinance, or amendment thereof, is approved by
two-thirds of the voters, in the manner as otherwise required by law,
voting on this measure, in a special or general election and, if so
approved, shall become operative as provided in Section 130352. The
proposing ordinance shall specify that the net revenues derived from
the tax are to be administered by the Los Angeles County Metropolitan
Transportation Authority (MTA) as provided in this section. Net
revenues shall be defined as all revenues derived from the tax less
any refunds, costs of administration by the State Board of
Equalization, and costs of administration by the MTA. Such costs of
administration by the MTA shall not exceed 1.5 percent of the
revenues derived from the tax. The proposing ordinance shall be
accompanied by a new expenditure plan for the net revenues derived
from the tax. This new expenditure plan shall identify the years in
which the MTA anticipates net revenues derived from the tax will be
available to each project or program in the new expenditure plan.
   (b) The MTA may incur bonded indebtedness payable from the
proceeds of the tax authorized by this section pursuant to the bond
issuance provisions of this chapter, and any successor act.
   (c) Proceeds from the tax authorized by this section, including
proceeds from bonds issued pursuant to subdivision (b), after payment
of the bonded indebtedness, shall be used to accelerate the
completion of the projects and programs identified in subparagraphs
(A) and (B) of paragraph (3) of subdivision (b) of Section 130350.5,
for the expenditure plan adopted by the MTA board on July 24, 2008,
and for operations pursuant to paragraph (3) of subdivision (b) of
Section 130350.5.
   (d) Upon completion of the projects and programs identified in
subparagraphs (A) and (B) of paragraph (3) of subdivision (b) of
Section 130350.5 and the expenditure plan adopted by the MTA board on
July 24, 2008, any funds remaining from the bonds described in
subdivision (b) and any funds remaining from the proceeds of the tax
authorized by this section, after payment of the bonded indebtedness,
shall be expended by the MTA on projects and programs in the Long
Range Transportation Plan or its successor plans, and for operations
pursuant to paragraph (3) of subdivision (b) of Section 130350.5.
   (e) To the extent that MTA deems it necessary to accelerate the
completion of a project or program in a new expenditure plan adopted
pursuant to this section, MTA shall expend funds derived from the
sales tax authorized by Section 130350.5 according to the schedule
described in the new expenditure plan adopted pursuant to this
section. MTA shall make this determination by a majority vote of the
MTA board.