SB 1037, as amended, Hernandez. 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 the funding of specified transportation-related purposes pursuant to an adopted expenditure plan and subject to voter approval. Existing law authorizes the MTA to seek voter approval to extend the sales tax pursuant to an amended ordinance, subject to various requirements and voter approval.
This bill would require the MTA,
begin delete prior toend delete submitting an amended ordinance to the voters, to amend the expenditure plan previously prepared for the voter-approved Measure R transactions and use tax with respect to certain matters relating to projects and programs to be funded under Measure R and to develop a transparent process to determine the most recent cost estimates for those projects and programs. The bill would also require the MTA to include the begin delete updatedend delete expenditure plan in the Long Range Transportation Plan. The bill would require the updated Long Range Transportation Plan to include capital projects and capital programs that are adopted by each subregion, as specified, and that are submitted to the MTA for inclusion in the Long Range Transportation Plan.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 130350.6 of the Public Utilities Code is
2amended to read:
(a) The tax authorized by Section 130350.5 may
4be imposed as set forth in paragraph (3) of subdivision (b) of
5Section 130350.5 in a transactions and use tax ordinance, or an
6amendment of the ordinance approved pursuant to paragraph (1)
7of subdivision (b) of Section 130350.5, that conforms with Chapter
82 (commencing with Section 7261) to Chapter 4 (commencing
9with Section 7275), inclusive, of the Transactions and Use Tax
10Law (Part 1.6 (commencing with Section 7251) of Division 2 of
11the Revenue and Taxation Code), and that is approved by a
12majority of the entire membership of the authority. The tax may
13be imposed pursuant to this section only if the proposing ordinance,
14or amendment thereof, is approved by two-thirds of the voters, in
15the manner as otherwise required by law, voting on this measure,
16in a special or general election and, if so approved, shall become
17operative as provided in Section 130352. The proposing ordinance
18shall specify that the net revenues derived from the tax are to be
19administered by the Los Angeles County Metropolitan
20Transportation Authority (MTA) as provided in this section. Net
21revenues shall be defined as all revenues derived from the tax less
22any refunds, costs of administration by the State Board of
23Equalization, and costs of administration by the MTA. Such costs
24of administration by the MTA shall not exceed 1.5 percent of the
25revenues derived from the tax. The proposing ordinance shall be
26accompanied by a new expenditure plan for the net revenues
27derived from the tax. This new expenditure plan shall identify the
P3 1years in which the MTA anticipates net revenues derived from the
2tax will be available to each project or program in the new
4(b) The MTA may incur bonded indebtedness payable from the
5proceeds of the tax authorized by this section pursuant to the bond
6issuance provisions of this chapter, and any successor act.
7(c) Proceeds from the tax authorized by this section, including
8proceeds from bonds issued pursuant to subdivision (b), after
9payment of the bonded indebtedness, shall be used to accelerate
10the completion of the projects and programs identified in
11subparagraphs (A) and (B) of paragraph (3) of subdivision (b) of
12Section 130350.5, for the expenditure plan adopted by the MTA
13board on July 24, 2008, and for operations pursuant to paragraph
14(3) of subdivision (b) of Section 130350.5.
15(d) Upon completion of the projects and programs identified in
16subparagraphs (A) and (B) of paragraph (3) of subdivision (b) of
17Section 130350.5 and the expenditure plan adopted by the MTA
18board on July 24, 2008, any funds remaining from the bonds
19described in subdivision (b) and any funds remaining from the
20proceeds of the tax authorized by this section, after payment of
21the bonded indebtedness, shall be expended by the MTA on
22projects and programs in the Long Range Transportation Plan or
23its successor plans, and for operations pursuant to paragraph (3)
24of subdivision (b) of Section 130350.5.
25(e) To the extent that the MTA deems it necessary to accelerate
26the completion of a project or program in a new expenditure plan
27adopted pursuant to this section, the MTA shall expend funds
28derived from the sales tax authorized by Section 130350.5
29according to the schedule described in the new expenditure plan
30adopted pursuant to this section. The MTA shall make this
31determination by a majority vote of the MTA board.
begin deletePrior to end deletesubmitting the ordinance described in
33subdivision (a) to the voters, the MTA shall amend the expenditure
34plan adopted pursuant to subdivision (f) of Section 130350.5. The
35amended plan shall update all of the following for the
36projects and programs listed in subparagraphs (A) and (B) of
37paragraph (3) of subdivision (b) of Section 130350.5:
most recent cost estimates for each project and program
39identified in the amended plan.
P4 1(B) The identification of the accelerated cost, if applicable, for
2each project and program in the amended plan.
3(C) The schedule during which the MTA anticipates funds will
4be available for each project and program.
5(D) The expected completion dates for each project and program.
6(2) The MTA shall develop a transparent process to determine
7the most recent cost estimates for each project and program
8identified in the amended plan.
9(3) The expenditure
begin delete plan, as amended,end delete shall also
10be included in the revised and updated Long Range Transportation
begin delete prior to submittingend delete the ordinance described in
12subdivision (a) to the voters. The revised and updated
13Long Range Transportation Plan shall also include capital projects
14and capital programs that are adopted by each subregion that are
15submitted to the MTA for inclusion in the revised
16 Long Range Transportation Plan. Inclusion of a capital project or
17a capital program in the Long Range Transportation Plan is not a
18commitment or guarantee that the project or program shall receive
19any future funding. As used in this paragraph, “subregion” shall
20have the meaning as defined in the Long Range Transportation
21Plan in effect as of January 1, 2008.