Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2094


Introduced by Assembly Member Obernolte

February 17, 2016


An act to amend Sectionbegin delete 8603 ofend deletebegin insert 39719 of the Health and Safety Code, and to add Section 7202.1 toend insert the Revenue and Taxation Code, relating tobegin delete taxation.end deletebegin insert transportation, and making an appropriation therefor.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2094, as amended, Obernolte. begin deleteUse fuel tax. end deletebegin insertTransportation: Greenhouse Gas Reduction Fund: state and local transportation funds.end insert

begin insert

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available, upon appropriation, for purposes relating to greenhouse gas emissions reduction.

end insert
begin insert

Existing law provides for deposit of revenues from sales and use taxes in the Retail Sales Tax Fund, including revenues from sales and use taxes imposed by local agencies under the Bradley-Burns Uniform Local Sales and Use Tax Law. Existing law provides for revenues from 14 of 1% of the sales and use tax rate imposed by counties under the Bradley-Burns Uniform Local Sales and Use Tax Law to be transferred from the Retail Sales Tax Fund to local transportation funds created in each county for allocation by transportation planning agencies to various transportation purposes under the Transportation Development Act. The California Constitution imposes certain restrictions on the Legislature relative to the provisions governing the Bradley-Burns Uniform Local Sales and Use Tax Law and local transportation funds.

end insert
begin insert

This bill, beginning in the 2016-17 fiscal year, would transfer $1 billion annually from the Greenhouse Gas Reduction Fund to the Retail Sales Tax Fund, subject to specified conditions, and would state that the transferred revenues shall be considered part of the revenues allocated to local transportation funds from the Retail Sales Tax Fund. The bill, in each fiscal year in which that transfer occurs, would also continuously appropriate $1 billion from the Retail Sales Tax Fund for allocation to state highway and local street and road purposes. The bill would make legislative findings and declarations in that regard.

end insert
begin delete

The Use Fuel Tax Law imposes a state excise tax on the use of fuel at specified rates. That law defines the term “motor vehicle” for purposes of that law.

end delete
begin delete

This bill would make nonsubstantive changes to that definition.

end delete

Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert
begin insert

The Legislature finds and declares that this act
2complies with Section 2 of Article XIX A of the California
3Constitution, and that:

end insert
begin insert

4(a) Subdivision (e) of Section 2 of Article XIX A of the California
5Constitution prohibits loans from the Retail Sales Tax Fund, but
6does not prohibit transfers or diversions from the Retail Sales Tax
7Fund.

end insert
begin insert

8(b) Pursuant to subdivision (f) of Section 2 of Article XIX A of
9the California Constitution, the percentage of the sales and use
10tax imposed pursuant to Section 7202 of the Revenue and Taxation
11Code allocated to local transportation funds pursuant to this act
12remains identical to the percentage that was transmitted to those
13funds during the 2008 calendar year.

end insert
14begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 39719 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
15amended to read:end insert

16

39719.  

(a) The Legislature shall appropriate the annual
17proceeds of the fund for the purpose of reducing greenhouse gas
P3    1emissions in this state in accordance with the requirements of
2Section 39712.

3(b) To carry out a portion of the requirements of subdivision
4(a), annual proceeds are continuously appropriated for the
5following:

6(1) Beginning in the 2015-16 fiscal year, and notwithstanding
7Section 13340 of the Government Code, 35 percent of annual
8proceeds are continuously appropriated, without regard to fiscal
9years, for transit, affordable housing, and sustainable communities
10programs as following:

11(A) Ten percent of the annual proceeds of the fund is hereby
12continuously appropriated to the Transportation Agency for the
13Transit and Intercity Rail Capital Program created by Part 2
14(commencing with Section 75220) of Division 44 of the Public
15Resources Code.

16(B) Five percent of the annual proceeds of the fund is hereby
17continuously appropriated to the Low Carbon Transit Operations
18Program created by Part 3 (commencing with Section 75230) of
19Division 44 of the Public Resources Code. Funds shall be allocated
20by the Controller, according to requirements of the program, and
21pursuant to the distribution formula in subdivision (b) or (c) of
22Section 99312 of, and Sections 99313 and 99314 of, the Public
23Utilities Code.

24(C) Twenty percent of the annual proceeds of the fund is hereby
25continuously appropriated to the Strategic Growth Council for the
26Affordable Housing and Sustainable Communities Program created
27by Part 1 (commencing with Section 75200) of Division 44 of the
28Public Resources Code. Of the amount appropriated in this
29subparagraph, no less than 10 percent of the annual proceeds, shall
30be expended for affordable housing, consistent with the provisions
31of that program.

32(2) Beginning in the 2015-16 fiscal year, notwithstanding
33Section 13340 of the Government Code, 25 percent of the annual
34proceeds of the fund is hereby continuously appropriated to the
35High-Speed Rail Authority for the following components of the
36initial operating segment and Phase I Blended System as described
37in the 2012 business plan adopted pursuant to Section 185033 of
38the Public Utilities Code:

39(A) Acquisition and construction costs of the project.

40(B) Environmental review and design costs of the project.

P4    1(C) Other capital costs of the project.

2(D) Repayment of any loans made to the authority to fund the
3project.

begin insert

4(c) Beginning in the 2016-17 fiscal year, one billion dollars
5($1,000,000,000) of the annual proceeds of the fund shall be
6transferred to the Retail Sales Tax Fund if both of the following
7conditions are met:

end insert
begin insert

8(1) The remaining annual proceeds of the fund, after the
9appropriations in paragraphs (1) and (2) of subdivision (b), equal
10or exceed one billion dollars ($1,000,000,000).

end insert
begin insert

11(2) The amount of revenue collected by the State Board of
12Equalization for allocation to local transportation funds pursuant
13to Section 29530 of the Government Code in the applicable fiscal
14year equals or exceeds one billion dollars ($1,000,000,000).

end insert
begin delete

15(c)

end delete

16begin insert(d)end insert In determining the amount of annual proceeds of the fund
17for purposes of the calculation in subdivision (b), the funds subject
18to Section 39719.1 shall not be included.

19begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 7202.1 is added to the end insertbegin insertRevenue and Taxation
20Code
end insert
begin insert, to read:end insert

begin insert
21

begin insert7202.1.end insert  

(a) In any fiscal year in which funds are transferred
22to the Retail Sales Tax Fund pursuant to subdivision (c) of Section
2339719 of the Health and Safety Code, one billion dollars
24($1,000,000,000) of the annual proceeds of the Retail Sales Tax
25Fund is hereby continuously appropriated, notwithstanding Section
267204 or Section 13340 of the Government Code and without regard
27to fiscal years, as follows:

28(1) Fifty percent to the Department of Transportation for
29maintenance of the state highway system, or for projects contained
30in the State Highway Operation and Protection Program prepared
31pursuant to Section 14526.5 of the Government Code.

32(2) Fifty percent to the Controller, for apportionment to cities
33and counties for local street and road purposes pursuant to the
34formula contained in subparagraph (C) of paragraph (3) of
35subdivision (a) of Section 2103 of the Streets and Highways Code.

36(b) Funds that are transferred to the Retail Sales Tax Fund
37pursuant to subdivision (c) of Section 39719 of the Health and
38Safety Code shall be considered part of the revenues allocated to
39local transportation funds pursuant to Section 29530 of the
40Government Code.

end insert
begin deleteP5    1

SECTION 1.  

Section 8603 of the Revenue and Taxation Code
2 is amended to read:

3

8603.  

As used in this part “motor vehicle” includes any
4self-propelled vehicle operated or suitable for operation on the
5highway, but does not include a vehicle used exclusively upon
6stationary rails or tracks.

end delete


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