BILL ANALYSIS Ó
AB 1446
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Date of Hearing: April 23, 2012
ASSEMBLY COMMITTEE ON TRANSPORTATION
Bonnie Lowenthal, Chair
AB 1446 (Feuer) - As Amended: April 17, 2012
SUBJECT : Los Angeles County Metropolitan Transportation
Authority: transaction and use tax: indefinite extension.
SUMMARY : Allows the Los Angeles County Metropolitan
Transportation Authority (MTA) indefinitely to extend its
existing -cent transaction and use tax (sales tax) related to
transportation, subject to voter approval. Specifically, this
bill :
1)Sets forth legislative findings and declarations regarding the
Legislature's intent to authorize MTA to seek voter approval
to extend indefinitely its existing 30-year, -cent sales tax
(known as Measure R).
2)Subjects imposition of the extended tax upon approval of a
majority of the MTA board of directors and upon approval of
two-thirds of the voters in Los Angeles County.
3)Directs the proceeds from the extended tax to capital projects
and programs as identified in Measure R (however, unlike
Measure R, this bill does not set tax revenue aside for
transit operations and rail operations).
4)Authorizes MTA to incur bonded indebtedness, payable from the
proceeds of the extended tax, to accelerate completion of
capital projects and programs previously established under
Measure R.
5)Requires, upon completion of capital projects and programs,
that any remaining funds from bonds issued or from tax
extension proceeds be deposited in MTA's sales tax revenue
fund.
6)Requires MTA to amend its existing expenditure plan,
previously adopted as a part of Measure R, relative to project
costs and schedule dates.
EXISTING LAW:
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1)Authorized MTA to adopt a -cent sales tax in Los Angeles
County for 30 years, subject to a two-thirds approval of local
voters. The sales tax, presented to the voters as Measure R,
was approved in 2008.
1)Requires MTA to allocate 20% of the proceeds derived from the
-cent sales tax for bus operations and 5% for rail
operations.
2)Authorizes MTA to incur bonded indebtedness payable from the
proceeds of Measure R.
3)Required MTA to adopt an expenditure plan prior to submitting
the proposed Measure R to the voters for a vote.
FISCAL EFFECT : Unknown. (Measure R, the original sales tax, is
expected to raise $40 billion over 30 years.)
COMMENTS : This bill authorizes MTA to place on the ballot for
Los Angeles County voter approval the permanent extension of an
existing countywide -cent sales tax, revenue from which will be
dedicated to transportation. The bill is author-sponsored.
According to the author, this bill is intended to give Los
Angeles County voters the opportunity to extend the duration of
a local source of funding for an ambitious program of
transportation infrastructure projects that will transform the
Los Angeles region. The anticipated new revenue can be bonded
against to build projects in MTA's transportation plan sooner.
The author notes that efforts are underway to obtain federal
loans secured by Measure R revenues to expedite the construction
of Measure R projects. While these efforts may or may not
succeed, additional Measure R revenues will be necessary to
accelerate Measure R projects to the maximum extent regardless.
This bill was previously referred to the Assembly Local
Government Committee. It passed out of that committee on a vote
of 7-1.
Proposed amendments:
1)Questions have arisen since the bill was introduced about
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whether this bill would alter the expenditure priorities
established in the legislation that authorized Measure R.
Furthermore, concerns have been raised that none of the
revenue from the extended tax proceeds would be directed to
pay transit operations or rail operations.
The author intends to take amendments in committee that will
clearly demonstrate his intent to extend the funding
commitments made in Measure R to the extended sales tax as
well, including 20% for transit operations and 5% for rail
operations.
2)Requires, upon completion of capital projects and programs,
that any remaining funds from bonds issued or from tax
extension proceeds be deposited in MTA's sales tax revenue
fund. The bill does not, however, specifically authorize the
use of those funds, which would presumably be for MTA's
long-range plans, as is the case in the original Measure R,
consistent with the proposed amendment above.
Previous legislation:
SB 314 (Murray), Chapter 785, Statutes of 2003, originally
enacted provisions that authorized MTA to impose a 0.5% sales
tax, for no more than six and one-half years, for specific
transportation projects and programs. That sales tax was never
imposed.
AB 2321 (Feuer), Chapter 302, Statutes of 2008, authorized MTA
propose an ordinance to impose a -cent sales tax for 30 years
and required the MTA to include specified projects and programs
in its long range transportation plan. In November of 2008,
more than 67% of Los Angeles County voters approved this tax in
a ballot measure known as Measure R.
REGISTERED SUPPORT / OPPOSITION :
Support
American Council of Engineering Companies
Los Angeles Area Chamber of Commerce
Los Angeles Business Council
Los Angeles County Federation of Labor, AFL-CIO
Move LA
Southern California Contractors Association
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State Building and Construction Trades Council of California
The Associated General Contractors
Opposition
California Taxpayers Association
Howard Jarvis Taxpayers Association
Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093