BILL NUMBER: SB 983 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 15, 2014
AMENDED IN SENATE MAY 21, 2014
INTRODUCED BY Senator Hernandez
FEBRUARY 11, 2014
An act to amend Section 53084.5 149.7
of the Government Streets and Highways
Code, relating to local government.
transportation.
LEGISLATIVE COUNSEL'S DIGEST
SB 983, as amended, Hernandez. Cities and counties: sales
and use taxes: revenue sharing agreement: card lock system.
High-occupancy toll lanes.
Existing law authorizes a regional transportation agency, as
defined, in cooperation with the Department of Transportation, to
apply to the California Transportation Commission to develop and
operate high-occupancy toll (HOT) lanes, including administration and
operation of a value-pricing program and exclusive or preferential
lane facilities for public transit. Existing law limits the number
of approved facilities to not more than 4, 2 in northern California
and 2 in southern California, and provides that no applications may
be approved on or after January 1, 2012.
This bill would additionally authorize specified local
transportation authorities and the Santa Clara Valley Transportation
Authority to apply to the commission for purposes of the
above-described provisions. The bill would remove the limitations on
the number of approved facilities and would delete the January 1,
2012, deadline for HOT lane applications. The bill would provide
that each application is subject to the review and approval of the
commission and would require a regional transportation agency that
applies to the commission to reimburse the commission for all of the
commission's cost and expense incurred in processing the application.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes
counties and cities to impose local sales and use taxes in conformity
with the Sales and Use Tax Law. That law provides that for the
purpose of a local sales tax adopted pursuant to that law, all retail
sales are consummated at the place of business of the retailer
unless otherwise specified.
Existing law prohibits a local agency, including a city or county,
from entering into any form of agreement with any other person that
would involve the payment, transfer, diversion, or rebate of any
amount of Bradley-Burns local tax proceeds for any purpose if the
agreement results in a reduction in the amount of revenue that is
received by another local agency from a retailer that is located
within the territorial jurisdiction of that other local agency, and
the retailer continues to maintain a physical presence within the
territorial jurisdiction of that other local agency, with specified
exceptions, including an exception for an agreement to pay or rebate
any Bradley-Burns local tax revenue relating to a buying company, as
defined.
This bill would provide that, on or after May 1, 2014, a buying
company does not include a retailer that contracts to sell fuel
through a card lock system.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 149.7 of the Streets
and Highways Code is amended to read:
149.7. (a) A regional transportation agency, as defined in
Section 143, subdivision (e), in
cooperation with the department, may apply to the commission to
develop and operate high-occupancy toll lanes, including the
administration and operation of a value pricing program and exclusive
or preferential lane facilities for public transit, consistent with
the established standards, requirements, and limitations that apply
to those facilities in Sections 149, 149.1, 149.3, 149.4, 149.5, and
149.6.
(b) The commission shall review each Each
application for the development and operation of the
facilities described in subdivision (a) according
shall be subject to review and approval by the
commission pursuant to eligibility criteria established by the
commission. For each eligible application, the commission shall
conduct at least one public hearing in northern California and one in
southern California.
(c) The number of facilities approved under this section shall not
exceed four, two in northern California and two in southern
California.
(c) A regional transportation agency that applies to the
commission to develop and operate facilities described in subdivision
(a) shall reimburse the commission for all of the commission's cost
and expense incurred in processing the application.
(d) A regional transportation agency that develops or operates a
facility, or facilities, described in subdivision (a) shall provide
any information or data requested by the commission or the
Legislative Analyst. The commission, in cooperation with the
Legislative Analyst, shall annually prepare a report on the progress
of the development and operation of a facility authorized under this
section. The commission may submit this report as a section in its
annual report to the Legislature required pursuant to Section 14535
of the Government Code.
(e) No applications may be approved under this section on or after
January 1, 2012.
(e) Notwithstanding Section 143, for purposes of this section,
"regional transportation agency" means any of the following:
(1) A transportation planning agency described in Section 29532 or
29532.1 of the Government Code.
(2) A county transportation commission established under Section
130050, 130050.1, or 130050.2 of the Public Utilities Code.
(3) Any other local or regional transportation entity that is
designated by statute as a regional transportation agency.
(4) A joint exercise of powers authority established pursuant to
Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of
the Government Code, with the consent of a transportation planning
agency or a county transportation commission for the jurisdiction in
which the transportation project will be developed.
(5) A local transportation authority designated pursuant to
Division 12.5 (commencing with Section 131000) or Division 19
(commencing with Section 180000) of the Public Utilities Code.
(6) The Santa Clara Valley Transportation Authority established
pursuant to Part 12 (commencing with Section 100000) of Division 10
of the Public Utilities Code.
SECTION 1. Section 53084.5 of the Government
Code is amended to read:
53084.5. (a) On or after the date the act adding this section
takes effect, a local agency shall not enter into any form of
agreement that would result, directly or indirectly, in the payment,
transfer, diversion, or rebate of any tax revenue resulting from the
imposition of a sales and use tax under the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)
of Division 2 of the Revenue and Taxation Code) to any person for any
purpose when both of the following apply:
(1) The agreement results in a reduction in the amount of revenue
that is received by another local agency from a retailer that is
located within the territorial jurisdiction of that other local
agency from the tax proceeds collected under the Bradley-Burns
Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with
Section 7200) of Division 2 of the Revenue and Taxation Code). This
subdivision shall not apply to a reduction in the use tax proceeds
that are distributed to that other local agency through one or more
countywide pools.
(2) The retailer continues to maintain a physical presence within
the territorial jurisdiction of that other local agency. This
subdivision shall not apply if the retailer has expanded its
operations into another jurisdiction with the result that the
retailer is conducting a comparable operation within the jurisdiction
of both local agencies.
(b) For the purposes of this section, the following definitions
have the following meanings:
(1) "Local agency" means a chartered or general law city, a
chartered or general law county, or a city and county.
(2) "Retailer" means a retailer as defined by Section 6015 of the
Revenue and Taxation Code.
(3) "Physical presence" means the lease or ownership of any real
property for the purpose of carrying on business operations.
(c) This section shall not apply to local tax proceeds provided by
a local agency to a retailer if the funds are used to reimburse the
retailer for the construction of public works improvements that serve
all or a portion of the territorial jurisdiction of the local
agency.
(d) (1) This section shall not apply to an agreement to pay or
rebate any tax revenue resulting from the imposition of a sales and
use tax under the Bradley-Burns Uniform Local Sales and Use Tax Law
(Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue
and Taxation Code) relating to a buying company. "Buying company"
means, and is limited to, a legal entity that is separate from
another legal entity that owns, controls, or is otherwise related to,
the buying company and which has been created for the purpose of
performing administrative functions, including acquiring goods and
services for the other entity, as defined by the State Board of
Equalization, and meets requirements of a buying company under
Sections 6066 to 6075, inclusive, of the Revenue and Taxation Code,
and the regulations adopted pursuant to those sections.
(2) (A) Notwithstanding paragraph (1), on or after May 1, 2014, a
buying company does not include a retailer that contracts to sell
fuel through a card lock system.
(B) "Card lock system" means a system in which owners of
unattended card lock fueling stations form a network whereby
customers may purchase fuel at any of the network's participating
fueling stations by use of a card issued to the customer, and where
prices are not posted at the pump and no receipt is given at the time
of delivery.
(C) This paragraph does not apply to an agreement entered into
before May 1, 2014, to pay or rebate any tax revenue resulting from
the imposition of a sales and use tax under the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)
of Division 2 of the Revenue and Taxation Code) relating to a buying
company that is a retailer that contracts to sell fuel through a
card lock system.
(e) This section shall not apply to any agreement by a local
agency to pay or rebate any use tax revenue resulting from the
imposition of a sales and use tax under the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)
of Division 2 of the Revenue and Taxation Code) relating to a use tax
direct payment permit issued under Section 7051.3 of the Revenue and
Taxation Code.
(f) Nothing in this section shall be interpreted to limit the
ability of a local agency to contract with or otherwise enter into an
agreement pursuant to subdivision (b) of Section 7056 of the Revenue
and Taxation Code.