BILL NUMBER: SB 81	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JANUARY 19, 2012
	AMENDED IN ASSEMBLY  MARCH 14, 2011

INTRODUCED BY   Committee on Budget and Fiscal Review

                        JANUARY 10, 2011

    An act to repeal and add Section 41204.2 of the Education
Code, to amend Sections 8879.52, 8879.61, 8879.65, 14556.7, and
16965 of the Government Code, to amend Sections 99312, 99315, and
185024 of, and to add Sections 99312.1 and 99312.2 to, the Public
Utilities Code, to repeal Section 7102.1 of, and to repeal and add
Sections 6051.8, 6201.8, 6357.3, 6357.7, 6480.1, 7360, 7361.1,
7653.1, and 60050 of, the Revenue and Taxation Code, to amend
Sections 167, 183.1, and 2103 of, and to add Section 183.2 to, the
Streets and Highways Code, and to amend Sections 1661, 4601, 5902.5,
9552, and 12811 of, and to add Section 9400.4 to, the Vehicle Code,
relating to transportation, making an appropriation therefor, and
declaring the urgency thereof, to take effect immediately. 
 An act to amend Section 46201.3 of, and to add Section 46201.4
to, the Education Code, relating to education finance, and making an
appropriation therefor, to take effect immediately, bill related to
the budget. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 81, as amended, Committee on Budget and Fiscal Review. 
Transportation.  Budget Act of 2011. 
    (1)     Existing law establishes an
education funding system under which the Superintendent of Public
Instruction apportions to each qualifying school district, county
office of education, and charter school, state aid funds in an amount
not to exceed the revenue limit, an amount that is largely based on
average daily attendance, which is computed as specified. Existing
law also requires, for the 2011-   12 school year, that the
revenue limit for each school district, county office of education,
and charter school be reduced pursuant to a specified formula. 
    This bill would require, for the 2011   -12 
 school year, that the revenue limit for each school district,
county office of education, and charter school be reduced by an
additional 0.65%. The bill would also require that the computation of
the revenue limit for each school district, county office of
education, and charter school for the 2012-13 fiscal year be
determined based on the revenue limit for the 2011-12 fiscal year,
not including the 0.65% reduction. 
    (2)     Existing law authorized the
Director of Finance to make reductions to certain appropriations in
the Budget Act of 2011 if the higher of 2 specified revenue forecasts
for the 2011-12 fiscal year was less one or both of 2 specified
sums. Pursuant to this provision, the Director of Finance is required
to reduce the appropriation for home-to-school transportation that
was included in the Budget Act of 2011 by up to  
$248,000,000.  
   This bill would make an appropriation of $248,000,000 from the
General Fund to the State Department of Education, for transfer to
Section A of the State School Fund, to restore any funding for
home-to-school transportation for the 2011-12 fiscal year reduced
pursuant to this authority.  
   (3) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
 
   (1) Existing law provides for payment of current general
obligation bond debt service for specified voter-approved
transportation bonds from gasoline excise tax revenue in the Highway
Users Tax Account and revenue in the Public Transportation Account,
and requires the Controller to make specified transfers of revenues
in that regard to the Transportation Debt Service Fund. Existing law,
pursuant to the Budget Act of 2010, provides for a loan of
$761,639,000 from gasoline excise tax revenue in the Highway Users
Tax Account to the General Fund, to be repaid with interest by June
30, 2013.  
   Proposition 22, approved by the voters on November 2, 2010, amends
the California Constitution to, among other things, impose new
restrictions on the use of fuel excise tax revenues allocated to the
state and revenues deposited in the Public Transportation Account.
 
   This bill, in fiscal years 2010-11 and 2011-12, would require the
Controller to transfer specified amounts of revenues deposited in the
State Highway Account from vehicle weight fees to the Transportation
Debt Service Fund to be used for reimbursement of the General Fund
for payment of current general obligation bond debt service for
specified voter-approved transportation bonds, in lieu of the
previously authorized gasoline excise tax revenues and Public
Transportation Account revenues. In subsequent years, the bill would
require all vehicle weight fee revenues to be transferred for this
purpose. The bill would make appropriations in this regard. The bill
would require the Department of Finance to notify the Controller of
the amount of debt service relating to expenditures for eligible mass
transit guideway projects that may be paid from revenues restricted
by Article XIX of the California Constitution.  
   This bill, in fiscal year 2010-11, would require the Controller to
transfer specified amounts of revenues deposited in the State
Highway Account from vehicle weight fees to the General Fund as a
loan, in lieu of the previously authorized loan of gasoline excise
tax revenues. The loan amount for 2010-11 would be repaid over 3
years beginning on June 30, 2014. The bill would also authorize an
additional loan in fiscal year 2011-12 of specified vehicle weight
fee revenues, to be repaid by June 30, 2015. The bill would make
appropriations in this regard.  
   This bill would require the Controller to take various other
conforming actions as of November 2, 2010, due to voter approval of
Proposition 22 and to the extent the Controller has previously taken
actions inconsistent with the requirements imposed by this bill.
 
   (2) Existing law, in the 2011-12 fiscal year, requires certain
revenues deposited in the State Highway Account that are not
restricted as to expenditure by Article XIX of the California
Constitution to be transferred to the Transportation Debt Service
Fund for payment of current year debt service on certain mass
transportation bonds. Thereafter, these revenues are to be
transferred to the Public Transportation Account.  
   This bill would, instead, transfer these revenues to the
Transportation Debt Service Fund for payment of current year debt
service on certain mass transportation bonds in the 2011-12 and
2012-13 fiscal years. Beginning in 2013-14, these revenues would be
retained in the State Highway Account until appropriated by the
Legislature.  
   (3) Proposition 26, approved by the voters on November 2, 2010,
amends the California Constitution to, among other things, require a
2/3 vote of both houses of the Legislature for any change in statute
that results in any taxpayer paying a higher tax. Proposition 26 also
provides that any tax adopted after January 1, 2010, but prior to
November 3, 2010, that was not adopted in compliance with the 2/3
vote requirement shall be void on November 3, 2011, unless the tax in
reenacted by the Legislature with a 2/3 vote.  
   Existing law, as of July 1, 2010, eliminates the state sales and
use tax on motor vehicle fuel (gasoline) and increases the excise
tax. Existing law, as of July 1, 2011, increases the sales and use
tax on diesel and decreases the excise tax. Existing law requires the
State Board of Equalization to annually modify both the gasoline and
diesel excise tax rates on a going-forward basis so that the various
changes in the taxes imposed on gasoline and diesel, as described
above, are revenue neutral. Existing law enacts other provisions
related to the implementation of these provisions.  

   This bill would repeal all of these provisions. The bill would
enact new, similar replacement provisions, and state the intent of
the Legislature that the changes are being made in order to comply
with Proposition 26. The bill would also increase the new diesel
sales and use tax rates to be applicable in fiscal years 2011-12,
2012-13, and 2013-14 above the rates currently in effect that the
bill would repeal. These increases in the diesel sales and use tax
rates would be offset by a reduction in the diesel excise tax rate as
of July 1, 2011, and a requirement for the State Board of
Equalization to adjust diesel excise tax rates on a going-forward
basis to ensure that the overall changes in these diesel fuel taxes
are revenue neutral.  
   (4) Existing statutory law provides that 75% of diesel sales tax
revenues at the 4 % rate are to be allocated by the Controller from
the Public Transportation Account to local agencies for public
transportation purposes pursuant to the State Transit Assistance
Program, with the remaining 25% of revenues to made available for
mass transit programs at the state level. Proposition 22, approved by
the voters on November 2, 2010, amends the California Constitution
to require these Public Transportation Account revenues to be divided
equally between the State Transit Assistance Program and the
state-level programs.  
   This bill would conform the statutory provisions to the
requirements of Proposition 22. The bill would appropriate $23
million to the Controller from the Public Transportation Account in
the 2011-12 fiscal year for allocation to the State Transit
Assistance Program. The bill would also continuously appropriate all
of the diesel sales revenues above the 4 % rate to the Controller
for allocation to that program.  
   (5) Existing law provides for a loan of $135,000,000 from the
State Highway Account to the General Fund that is to be repaid by
June 30, 2012.  
   This bill would instead require that loan to be repaid by June 30,
2013.  
   (6) Existing law, until July 1, 2011, authorizes the Department of
Transportation to transfer funds as short-term loans between various
transportation accounts.  
   This bill would extend the operation of these provisions until
July 1, 2014. The bill would also eliminate the authority of the
department to transfer funds as short-term loans to and from the
Transportation Investment Fund, the Transportation Deferred
Investment Fund, and the Public Transportation Account. 

   (7) Existing law creates the California Transportation Commission,
with various duties and responsibilities relative to the programming
and allocation of funds for transportation capital projects.
Existing law requires the commission to submit, by December 15 of
each year, an annual report to the Legislature summarizing the
commission's prior-year decisions in allocating transportation
capital funds and identifying timely and relevant transportation
issues facing the state. Existing law, the Highway Safety, Traffic
Reduction, Air Quality, and Port Security Bond Act of 2006,
authorizes the issuance of $19.25 billion of general obligation bonds
for specified purposes, including $2 billion to be transferred to
the Trade Corridors Improvement Fund to be available, upon
appropriation in the annual Budget Act by the Legislature and subject
to such conditions and criteria as the Legislature may provide by
statute, for allocation by the commission. Existing law requires the
Department of Transportation to, on or before February 18, 2009,
report to specified committees of the Legislature a summary of any
memorandum of understanding or any other agreement executed between a
railroad company and any state or local transportation agency
relative to any project funded with moneys allocated from the Trade
Corridors Improvement Fund.  
   This bill would instead require the commission to provide that
report to specified committees of the Legislature within 30 days of
receiving such a memorandum of understanding or executed agreement.
The bill would also, commencing January 1, 2012, require the
commission to provide semiannual reports to those committees on the
status of all railroad projects programmed in the Trade Corridors
Improvement Fund program. The bill would make these reporting
requirements inoperative on January 1, 2015.  
   (8) The Highway Safety, Traffic Reduction, Air Quality, and Port
Security Bond Act of 2006 also requires that $1,000,000,000 of bond
funds be deposited in the Transit System Safety, Security, and
Disaster Response Account, administered by the California Emergency
Management Agency (Cal EMA), for capital projects that provide
increased protection against a security and safety threat, and for
capital expenditures to increase the capacity of transit operators to
develop disaster response transportation systems, as specified.
Existing law requires 25% of available funds to be allocated to
certain regional public waterborne transit agencies. Existing law
requires entities receiving funds from that account to expend those
funds within 3 fiscal years of the fiscal year in which the funds
were allocated and requires that funds remaining unexpended after
those 3 years revert to Cal EMA for reallocation in subsequent fiscal
years.  
   This bill, notwithstanding these provisions, would provide that
entities receiving an allocation of the funds set aside for regional
public waterborne transit agencies, relative to allocations of funds
made prior to June 30, 2011, shall have 4 fiscal years from the last
day of the fiscal year in which the funds were received by that
entity to expend those funds.  
   (9) Existing law requires funds from the Local Street and Road
Improvement, Congestion Relief, and Traffic Safety Account of 2006 to
be made available to the Controller for allocation to cities,
counties, and a city and county, for purposes of the Highway Safety,
Traffic Reduction, Air Quality, and Port Security Bond Act of 2006,
as specified. Upon receipt of funds, a city, county, or city and
county is required to expend those funds within 3 fiscal years from
the date that the funds are allocated to it by the Controller, and
any funds not expended within that period are required to be returned
to the Controller and reallocated to other cities, counties, or a
city and county, as specified.  
   Existing law establishes the Highway Users Tax Account in the
Transportation Tax Fund with revenues in the account restricted to
expenditure on various purposes, including public street and highway
purposes and certain mass transit guideway purposes. 

   This bill would authorize a city, county, or city and county that
receives these funds in a fiscal year in which funds from the Highway
Users Tax Account are deferred, suspended, borrowed, or shifted, to
expend those funds within 4 fiscal years from the last date of the
fiscal year in which the funds are allocated to it by the Controller.
 
   (10) Existing law, the California High-Speed Rail Act, creates the
High-Speed Rail Authority to develop and implement a high-speed rail
system in the state, with specified powers and duties. Existing law
provides for appointment of an executive director by the authority,
who is exempt from civil service and serves at the pleasure of the
authority. Existing law requires the executive director to be paid a
salary established by the authority and approved by the Department of
Personnel Administration.  
   This bill, for purposes of managing and administering the ongoing
work of the authority in implementing the high-speed train project,
would authorize the Governor, upon the recommendation of the
executive director, to appoint up to 6 additional individuals, exempt
from civil service, who would serve in specified positions at the
pleasure of the executive director. The bill would require a salary
survey to be conducted to determine the compensation for the
executive director and additional exempt persons, and would require
the salaries to be established by the authority and approved by the
Department of Personnel Administration.  
   This bill would impose certain reporting requirements on the
authority with respect to a portion of funds appropriated to the
authority in the 2010 and 2011 Budget Acts, to be submitted to the
Joint Legislative Budget Committee.  
   (11) Existing law provides that the Department of Transportation
has full possession and control of the state highway system. Existing
law creates various programs to fund transportation capital
improvement programs and provides for allocation of those funds.
Existing law requires the department to prepare an annual budget, as
specified, for submission to the Governor.  
   This bill would require the department to submit specified
supplemental information by May 1 of each year to the Legislative
Analyst and to the Senate Committee on Appropriations and the
Assembly Committee on Appropriations to substantiate the department's
proposed capital outlay support budget.  
   (12) Existing law provides for apportionment by the Controller of
a specified amount of gasoline excise tax revenues in the Highway
Users Tax Account to cities and counties for local street and road
purposes, including revenues from the increase in the gasoline excise
tax, pursuant to Chapters 11 and 12 of the 8th Extraordinary Session
of the Statutes of 2010. These revenues, including the revenues from
the increase in the gasoline excise tax, are not subject to
expenditure requirements and restrictions that were applicable to
revenues from the gasoline sales tax that was repealed by the
above-referenced legislation.  
   This bill would clarify that the revenues apportioned to cities
and counties from the increase in the gasoline excise tax may be used
for any local street and road purpose and are not subject to the
requirements and restrictions applicable to the former gasoline sales
tax revenues.  
   (13) Existing law establishes fees for original and renewal
registration of vehicles to be collected by the Department of Motor
Vehicles. Existing law requires the department, with a specified
exception, to notify the registered owner of each vehicle of the date
that registration renewal fees for the vehicle are due, at least 60
days prior to that due date, and to indicate the fact that the
required notice was mailed by a notation in the department's records.
 
   This bill would, commencing on June 8, 2011, and operative until
January 1, 2012, reduce the department's time period for notification
that vehicle registration renewal fees are due to 30 days prior to
the due date.  
   (14) Existing law requires that the renewal of registration for a
vehicle that is either currently registered or for which a specified
certification is filed be obtained not more than 75 days prior to the
expiration of the current registration or certification. 

   This bill would, commencing on June 8, 2011, and operative until
July 1, 2011, instead apply the above-specified requirement only to
the renewal of registration for any vehicle that expires on or before
June 30, 2011, and would require the renewal of registration for a
vehicle that expires on or after July 1, 2011, or for which a
specified certification is filed, to be obtained not more than 15
days prior to the expiration of the current registration or
certification.  
   (15) Existing law requires that if an application for a
registration transaction is filed with the Department of Motor
Vehicles during the 30 days immediately preceding the date of
expiration of registration of the vehicle, the application be
accompanied by the full renewal fees for the ensuing registration
year in addition to any other fees that are due and payable.
 
   This bill would, commencing on the date that this bill becomes
operative and remaining operative until July 1, 2011, reduce the time
period to 10 days immediately preceding the date of expiration of
registration of the vehicle.  
   (16) Existing law provides that fees are delinquent if an
application for renewal of registration, or an application for
renewal of special license plates, is made after midnight of the
expiration date of the registration or special plates, or 60 days
after the date the registered owner is notified by the Department of
Motor Vehicles, whichever is later.  
   This bill would, commencing on June 8, 2011, and operative until
January 1, 2012, reduce the time period to 30 days after the date the
registered owner is notified by the department.  
   (17) Under existing law, when the Department of Motor Vehicles
determines that an applicant is lawfully entitled to a driver's
license, the department is required to issue that license to the
applicant. Existing law specifies the contents of a driver's license.
Existing law requires that the front of an application for an
original or renewal of a driver's license or identification card
contain a space for an applicant to give his or her consent to be an
organ and tissue donor upon death.  
   This bill would also require the application for a driver's
license or identification card to contain a space for an applicant to
indicate whether he or she has served in the Armed Forces of the
United States and to give his or her consent to be contacted
regarding eligibility to receive state or federal veterans benefits.
The bill would require the Department of Motor Vehicles to
electronically transmit to the Department of Veterans Affairs
specified information on an applicant who has identified on his or
her application for a driver's license or identification card that he
or she has served in the Armed Forces of the United States and
consents to being contacted about veterans benefits. 

   (18) The bill would enact other related provisions. 

   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. 

   (19) This bill would declare that it is to take effect immediately
as an urgency statute. 
   Vote:  2/3   majority  . Appropriation:
yes. Fiscal committee: yes. State-mandated local program: no.


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

   SECTION 1.    Section 46201.3 of the  
Education Code   is amended to read: 
   46201.3.  (a) For the 2011-12 school year, the minimum number of
instructional days and minutes school districts, county offices of
education, and charter schools are required to offer as set forth in
Sections 41420, 46200, 46200.5, 46201, 46201.5, 46202, and 47612.5
shall be reduced by up to seven days.
   (b) Implementation of the reduction in the number of instructional
days offered by a school district, county office of education, and
charter school that is subject to collective bargaining pursuant to
Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1
of the Government Code shall be achieved through the bargaining
process, provided that the agreement has been completed and
reductions implemented no later than June 30, 2012.
   (c) The revenue limit for each school district, county office of
education, and charter school determined pursuant to Article 3
(commencing with Section 2550) of Chapter 12 of Part 2 of Division 1
of Title 1, Article 2 (commencing with Section 42238) of Chapter 7 of
Part 24 of Division 3, and Article 2 (commencing with Section 47633)
of Chapter 6 of Part 26.8 of Division 4 shall be reduced by the
product of 4 percent and the fraction determined pursuant to
paragraph (2).
   (1) Subtract the revenue forecast determined pursuant to
subdivision (a) of Section 3.94 of the Budget Act of 2011 from
eighty-six billion four hundred fifty-two million five hundred
thousand dollars ($86,452,500,000).
   (2) Divide the lesser of two billion dollars ($2,000,000,000) or
the amount calculated in paragraph (1) by two billion dollars
($2,000,000,000). 
   (d) Notwithstanding any other law, and in addition to the
reductions authorized by subdivision (c), the revenue limit for each
school district, county office of education, and charter school
determined pursuant to Article 3 (commencing with Section 2550) of
Chapter 12 of Part 2 of Division 1 of Title 1, Article 2 (commencing
with Section 42238) of Chapter 7 of Part 24 of Division 3, and
Article 2 (commencing with Section 47633) of Chapter 6 of Part 26.8
of Division 4 shall be reduced by 0.65 percent.  
   (d) 
    (e)  This section does not affect the number of
instructional days or instructional minutes that may be reduced
pursuant to Section 46201.2. 
   (e) 
    (f)  The revenue limit reductions authorized by this
section, when combined with the reductions applied under subdivision
(c) of Section 3.94 of the Budget Act of 2011, may not be applied so
as to reduce school funding below the requirements of Section 8 of
Article XVI of the California Constitution based on the applicable
revenues estimated by the Department of Finance pursuant to Section
3.94 of the Budget Act of 2011. 
   (f) 
    (g)  This section shall be operative on February 1,
2012, only for the 2011-12 school year and only if subdivision (c) of
Section 3.94 of the Budget Act of 2011 is operative.
   SEC. 2.    Section 46201.4 is added to the  
Education Code   , to read:  
   46201.4.  In computing the revenue limit for each school district,
county office of education, and charter school for the 2012-13
fiscal year pursuant to this article, the revenue limit shall be
determined as if the revenue limit for each school district, county
office of education, and charter school had been determined for the
2011-12 fiscal year without being reduced by the percentage specified
in subdivision (d) of Section 46201.3. 
   SEC. 3.    In restoration of any moneys reduced
pursuant to paragraph (1) of subdivision (c) of Section 3.94 of the
Budget Act of 2011, the sum of two hundred forty-eight million
dollars ($248,000,000) is hereby appropriated from the General Fund
to the State Department of Education, Program 10-Instruction, for
transfer to Section A of the State School Fund, for Home to School
Transportation for the 2011-12 fiscal year, in augmentation of Item
6110-111-0001 of Section 2.00 of the Budget Act of 2011. 
   SEC. 4.    This act is a bill providing for
appropriations related to the Budget Bill within the meaning of
subdivision (e) of Section 12 of Article IV of the California
Constitution, has been identified as related to the budget in the
Budget Bill, and shall take effect immediately.  All matter
omitted in this version of the bill appears in the bill as amended in
the Assembly, March 14, 2011. (JR11)