BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      ACA 4


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          Date of Hearing:  August 19, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          ACA  
          4 (Frazier) - As Amended August 17, 2015


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          |Policy       |Transportation                 |Vote:|10 - 5       |
          |Committee:   |                               |     |             |
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          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |Revenue and Taxation           |     |5 - 3        |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
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          Urgency:      State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This measure allows certain local transportation initiative tax  
          measures to be enacted with a 55%  majority instead of a  
          two-thirds majority vote. Specifically, this measure:









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          1)Provides that the imposition, extension, or increase of a  
            sales and use tax or transactions and use tax by a city,  
            county, city and county, or special district for local  
            transportation projects requires approval of 55% of those  
            voting on such a measure.


          2)Defines a "local transportation project" as the planning,  
            design, development, financing, construction, reconstruction,  
            rehabilitation, improvement, acquisition, lease, operation, or  
            maintenance of local streets, roads, and highways, state  
            highways and freeways, and public transit systems.


          FISCAL EFFECT:


          1)One-time General Fund costs of around $220,000 to include the  
            text and analysis of the measure and arguments for and against  
            the measure in the statewide voter information guide.


          2)The lower vote threshold would likely lead to approval of more  
            local measures imposing or extending sales taxes in order to  
            fund local transportation infrastructure.


          COMMENTS:


          1)Purpose. According to the author, "Voters in nineteen counties  
            throughout California have voted to impose special taxes for  
            local transportation projects and programs in their county.   
            Collectively, these counties generate between $3 billion and  
            $4 billion annually - money that is used for transportation  
            projects as identified and prioritized by each county and  
            ratified by the voters. 
             








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            "These counties, referred to as "self-help counties," have  
            consistently provided reliable and stable funding for  
            transportation-funding that far outstrips state and federal  
            funding on an annual basis.





            "Despite the success of these self-help counties, a two-thirds  
            voter approval threshold is a near-impossible hurdle for other  
            counties that are aspiring to be self-help counties.  As a  
            result, these counties are deprived of much-needed funding for  
            transportation infrastructure, maintenance, and operations?ACA  
            4 gives hope to aspiring counties and to existing self-help  
            counties whose existing special transportation taxes are due  
            to expire."





          2)Transportation Needs. The biennial California Statewide Local  
            Streets and Roads Needs Assessment, released in October 2014,  
            found pavement conditions are declining and existing funding  
            levels are insufficient to repair or maintain streets, roads,  
            bridges, sidewalks, storm drains, and traffic signs. The  
            report estimated the local system will have a $78.3 billion  
            funding shortfall in the next 10 years. Moreover, the  
            administration is estimating the funding shortfall on the  
            state highway system totals $57 million over the next decade. 



          3)Prior Legislation. This constitutional amendment is  
            substantially similar to ACA 23 (Perea) of 2012, which died on  
            the Assembly Inactive File.








                                                                      ACA 4


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          Analysis Prepared by:Chuck Nicol / APPR. / (916)  
          319-2081