Amended in Assembly June 9, 2014

Amended in Senate May 1, 2014

Amended in Senate March 24, 2014

Senate Bill No. 1037

Introduced by Senator Hernandez

February 18, 2014

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

LEGISLATIVE COUNSEL’S DIGEST

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 to end delete begin insert before end insert submitting an begin insert ordinance or end insert 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 updated end delete begin insert amended end insert expenditure plan in the begin insert revised and updated end insert Long Range Transportation Plan begin insert , and to post the amended expenditure plan and the Long Range Transportation Plan on the MTA’s Internet Web site at least 30 days before submitting the ordinance or amended ordinance to the voters end insert . The bill would require the begin insert revised and end insert 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 1.  

Section 130350.6 of the Public Utilities Code is
amended 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 the MTA deems it necessary to accelerate
the completion of a project or program in a new expenditure plan
adopted pursuant to this section, the 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. The MTA shall make this
determination by a majority vote of the MTA board.

(f) (1)  begin delete Prior to end delete begin insert Before end insert begin insert end insert submitting the ordinance described in
subdivision (a) to the voters, the MTA shall amend the expenditure
plan adopted pursuant to subdivision (f) of Section 130350.5. The
amended begin insert expenditure end insert plan shall update all of the following for the
projects and programs listed in subparagraphs (A) and (B) of
paragraph (3) of subdivision (b) of Section 130350.5:

(A) The most recent cost estimates for each project and program
identified in the amended begin insert expenditure end insert plan.

(B) The identification of the accelerated cost, if applicable, for
each project and program in the amended begin insert expenditure end insert plan.

(C) The schedule during which the MTA anticipates funds will
be available for each project and program.

(D) The expected completion dates for each project and program.

(2) The MTA shall develop a transparent process to determine
the most recent cost estimates for each project and program
identified in the amended begin insert expenditure end insert plan.

(3) The begin insert amended end insert expenditure begin delete plan, as amended, end delete begin insert plan end insert shall also
be included in the revised and updated Long Range Transportation
Plan begin delete prior to submitting end delete begin insert before end insert the ordinance described in
subdivision (a) begin insert is submitted end insert to the voters. The revised and updated
Long Range Transportation Plan shall also include capital projects
and capital programs that are adopted by each subregion that are
submitted to the MTA for inclusion in the revised begin insert and updated end insert
Long Range Transportation Plan. Inclusion of a capital project or
a capital program in the Long Range Transportation Plan is not a
commitment or guarantee that the project or program shall receive
any future funding. As used in this paragraph, “subregion” shall
have the meaning as defined in the Long Range Transportation
Plan in effect as of January 1, 2008.

begin insert

(4) At least 30 days before submitting the ordinance described
in subdivision (a) to the voters, the MTA shall post the amended
expenditure plan and the Long Range Transportation Plan on the
MTA’s Internet Web site in a prominent manner.

end insert