BILL NUMBER: SBX1 1 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Beall
JUNE 22, 2015
An act to add Sections 14526.7, 14526.8, and 16321 to the
Government Code, to amend Sections 7360, 10752, and 60050 of, and to
add Sections 7361.2, 7653.2, 60050.2, and 60201.4 to, the Revenue and
Taxation Code, to add Section 2103.1 to, and to add Chapter 2
(commencing with Section 2030) to Division 3 of, the Streets and
Highways Code, and to add Sections 9250.3, 9250.6, and 9400.5 to the
Vehicle Code, relating to transportation, making an appropriation
therefor, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 1, as introduced, Beall. Transportation funding.
(1) Existing law provides various sources of funding for
transportation purposes, including funding for the state highway
system and the local street and road system. These funding sources
include, among others, fuel excise taxes, commercial vehicle weight
fees, local transactions and use taxes, and federal funds. Existing
law imposes certain registration fees on vehicles, with revenues from
these fees deposited in the Motor Vehicle Account and used to fund
the Department of Motor Vehicles and the Department of the California
Highway Patrol. Existing law provides for the monthly transfer of
excess balances in the Motor Vehicle Account to the State Highway
Account.
This bill would create the Road Maintenance and Rehabilitation
Program to address deferred maintenance on the state highway system
and the local street and road system. The bill would provide for the
program to be authorized every 5 years by the Legislature, and would
provide that authorization for the 2015-16 through 2019-20 fiscal
years. The bill would require the California Transportation
Commission to identify the estimated funds to be available for the
program and adopt performance criteria to ensure efficient use of the
funds. The bill would provide for the deposit of various funds for
the program in the Road Maintenance and Rehabilitation Account, which
the bill would create in the State Transportation Fund, including
revenues attributable to a $0.10 per gallon increase in the motor
vehicle fuel (gasoline) tax imposed by the bill and $0.10 of the
$0.12 per gallon increase in the diesel fuel excise tax imposed by
the bill, a $0.10 per gallon storage tax on motor vehicle fuel and
$0.10 of the $0.12 per gallon storage tax on diesel fuel imposed by
the bill, an increase of $35 in the annual vehicle registration fee,
a new $100 annual vehicle registration fee applicable to
zero-emission motor vehicles, as defined, commercial vehicle weight
fees redirected over a 5-year period from debt service on general
obligation transportation bonds, and repayment, over a 3-year period,
of outstanding loans made in previous years from certain
transportation funds to the General Fund.
The bill would continuously appropriate the funds in the account
for road maintenance and rehabilitation purposes for each 5-year
period in which the Legislature has authorized the program, and
would, for those fiscal years, allocate 5% of available funds to
counties that approve a transactions and use tax on or after July 1,
2015, with the remaining funds to be allocated 50% for maintenance of
the state highway system or to the state highway operation and
protection program, and 50% to cities and counties pursuant to a
specified formula. The bill would impose various requirements on
agencies receiving these funds.
This bill, in fiscal years in which the Road Maintenance and
Rehabilitation Program is not reauthorized by the Legislature, would
make inoperative the increases in the gasoline and diesel excise tax
rates and the $35 increase in the vehicle registration fee imposed by
the bill. The bill, in those fiscal years, would also provide for
the deposit of revenues from the $100 vehicle registration fee
applicable to zero-emission vehicles, and weight fee revenues, in the
State Highway Account, to be used for purposes of maintaining the
state highway system or the state highway operation and protection
program.
(2) The Highway Safety, Traffic Reduction, Air Quality, and Port
Security Bond Act of 2006 (Proposition 1B) created the Trade
Corridors Improvement Fund and provided for allocation by the
California Transportation Commission of $2 billion in bond funds for
infrastructure improvements on highway and rail corridors that have a
high volume of freight movement, and specified categories of
projects eligible to receive these funds. Existing law continues the
Trade Corridors Improvement Fund in existence in order to receive
revenues from sources other than the bond act for these purposes.
The bill would transfer revenues attributable to $0.02 of the
$0.12 increase in the diesel fuel excise tax and revenues
attributable to $0.02 of the $0.12 per gallon storage tax on diesel
fuel to the Trade Corridors Improvement Fund for expenditure on
eligible projects. As with the remainder of the gasoline and diesel
fuel tax increases imposed by this bill, the $0.02 per gallon portion
of the diesel fuel excise tax increase would be inoperative in
fiscal years in which the Road Maintenance and Rehabilitation Program
in (1) is not reauthorized.
(3) Existing law imposes a vehicle license fee, in lieu of
property tax, on motor vehicles based on market value, at a rate of
0.65%. Pursuant to Article XI of the California Constitution, vehicle
license fee revenues at the 0.65% rate are required to be allocated
to cities and counties.
This bill would incrementally increase the vehicle license fee to
a rate of 1%, over a 5-year period beginning July 1, 2015, or as
otherwise specified, with the revenues above the 0.65% rate to be
deposited in the Transportation Bond Debt Service Account in the
State Transportation Fund, which the bill would create, and to be
used for transportation general obligation bond debt service.
(4) Existing law requires the Department of Transportation to
prepare a state highway operation and protection program every other
year for the expenditure of transportation capital improvement funds
for projects that are necessary to preserve and protect the state
highway system, excluding projects that add new traffic lanes. The
program is required to be based on an asset management plan, as
specified. Existing law requires the department to specify, for each
project in the program, the capital and support budget and projected
delivery date for various components of the project. Existing law
provides for the California Transportation Commission to review and
adopt the program, and authorizes the commission to decline and adopt
the program if it determines that the program is not sufficiently
consistent with the asset management plan.
This bill, on and after February 1, 2017, would require the
commission to make an allocation of all capital and support costs for
each project in the program, and would require the department to
submit a supplemental project allocation request to the commission
for each project that experiences cost increases above the amounts in
its allocation. The bill would require the commission to establish
guidelines to provide exceptions to the requirement for a
supplemental project allocation requirement that the commission
determines are necessary to ensure that projects are not
unnecessarily delayed.
(5) Existing law requires the Department of Transportation to
prepare and submit to the Governor a proposed budget and to develop
budgeting, accounting, fiscal control, and management information
systems to provide budget oversight.
This bill, by April 1, 2016, would require the department to
present to the California Transportation Commission a plan to
increase department efficiency by up to 30% over the subsequent 3
years, with the ongoing savings to result in increased capital
expenditures in the state highway operation and protection program or
an increase in the state highway maintenance program.
(6)This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) Over the next 10 years, the state faces a $59 billion
shortfall to adequately maintain the existing state highway system,
in order to keep it in a basic state of good repair.
(b) Similarly, cities and counties face a $78 billion shortfall
over the next decade to adequately maintain the existing network of
local streets and roads.
(c) Statewide taxes and fees dedicated to the maintenance of the
system have not been increased in more than 20 years, with those
revenues losing more than 55 percent of their purchasing power, while
costs to maintain the system have steadily increased and much of the
underlying infrastructure has aged past its expected useful life.
(d) California motorists are spending $17 billion annually in
extra maintenance and car repair bills, which is more than $700 per
driver, due to the state's poorly maintained roads.
(e) Failing to act now to address this growing problem means that
more drastic measures will be required to maintain our system in the
future, essentially passing the burden on to future generations
instead of doing our job today.
(f) A five-year funding program will help address a portion of the
maintenance backlog on the state's road system and will stop the
growth of the problem until a longer term solution can be created.
(g) Modestly increasing various fees can spread the cost of road
repairs broadly to all users and beneficiaries of the road network
without overburdening any one group.
(h) Improving the condition of the state's road system will have a
positive impact on the economy as it lowers the transportation costs
of doing business, reduces congestion impacts for employees, and
protects property values in the state.
(i) The federal government estimates that increased spending on
infrastructure creates more than 13,000 jobs per $1 billion spent.
(j) Well-maintained roads benefit all users, not just drivers, as
roads are used for all modes of transport, whether motor vehicles,
transit, bicycles, or pedestrians.
(k) Well-maintained roads additionally provide significant health
benefits and prevent injuries and death due to crashes caused by
poorly maintained infrastructure.
SEC. 2. Section 14526.7 is added to the Government Code, to read:
14526.7. (a) On and after February 1, 2017, an allocation by the
commission of all capital and support costs for each project in the
state highway operation and protection program shall be required.
(b) For a project that experiences increases in capital or support
costs above the amounts in the commission's allocation pursuant to
subdivision (a), a supplemental project allocation request shall be
submitted by the department to the commission for approval.
(c) The commission shall establish guidelines to provide
exceptions to the requirement of subdivision (b) that the commission
determines are necessary to ensure that projects are not
unnecessarily delayed.
SEC. 3. Section 14526.8 is added to the Government Code, to read:
14526.8. (a) On or before April 1, 2016, the department shall
present to the commission a plan to increase department efficiency by
up to 30 percent over the subsequent three years. The ongoing
savings experienced through this increased efficiency shall result in
increased capital expenditures in the department's state highway
operation and protection program or an increase in the department's
state highway maintenance program.
(b) The commission shall consider the reasonableness of the
proposal, and may approve the entire plan or reject all or portions
of the plan. The commission's feedback is intended to ensure that the
department is achieving the savings in the most responsible way
possible.
(c) All future state highway operation and protection program
documents shall identify the increased funding available to the
program as a result of the efficiencies realized due to the
implementation of the plan.
SEC. 4. Section 16321 is added to the Government Code, to read:
16321. (a) Notwithstanding any other law, on or before March 1,
2016, the Department of Finance shall compute the amount of
outstanding loans made from the State Highway Account, the Motor
Vehicle Fuel Account, the Highway Users Tax Account, and the Motor
Vehicle Account to the General Fund. The department shall prepare a
loan repayment schedule, pursuant to which the outstanding loans
shall be repaid to the accounts from which the loans were made, as
follows:
(1) On or before June 30, 2016, 33 percent of the outstanding loan
amounts.
(2) On or before June 30, 2017, 33 percent of the outstanding loan
amounts.
(3) On or before June 30, 2018, 34 percent of the outstanding loan
amounts.
(b) Notwithstanding any other provision of law, as the loans are
repaid pursuant to this section, the repaid funds shall be
transferred to the Road Maintenance and Rehabilitation Account
created pursuant to Section 2031 of the Streets and Highways Code.
(c) Funds for loan repayments pursuant to this section shall be
appropriated from the Budget Stabilization Account pursuant to
subclause (II) of clause (ii) of subparagraph (B) of paragraph (1) of
subdivision (c) of Section 20 of Article XVI of the California
Constitution.
SEC. 5. Section 7360 of the Revenue and Taxation Code is amended
to read:
7360. (a) (1) (A) A tax of eighteen cents
($0.18) is hereby imposed upon each gallon of fuel subject to the tax
in Sections 7362, 7363, and 7364.
(B) In addition to the tax imposed pursuant to subparagraph (A),
on and after the 61st day after the effective date of the act adding
this subparagraph, a tax of ten cents ($0.10) is hereby imposed upon
each gallon of fuel subject to the tax in Sections 7362, 7363, and
7364. This subparagraph shall be inoperative in any fiscal year in
which the Road Maintenance and Rehabilitation Program has not been
authorized, pursuant to subdivision (b) of Section 2030 of the
Streets and Highways Code.
(2) If the federal fuel tax is reduced below the rate of nine
cents ($0.09) per gallon and federal financial allocations to this
state for highway and exclusive public mass transit guideway purposes
are reduced or eliminated correspondingly, the tax rate imposed by
subparagraph (A) of paragraph (1), on and after the date
of the reduction, shall be recalculated by an amount so that the
combined state rate under subparagraph (A) of
paragraph (1) and the federal tax rate per gallon equal twenty-seven
cents ($0.27).
(3) If any person or entity is exempt or partially exempt from the
federal fuel tax at the time of a reduction, the person or entity
shall continue to be so exempt under this section.
(b) (1) On and after July 1, 2010, in addition to the tax imposed
by subdivision (a), a tax is hereby imposed upon each gallon of motor
vehicle fuel, other than aviation gasoline, subject to the tax in
Sections 7362, 7363, and 7364 in an amount equal to seventeen and
three-tenths cents ($0.173) per gallon.
(2) For the 2011-12 fiscal year and each fiscal year thereafter,
the board shall, on or before March 1 of the fiscal year immediately
preceding the applicable fiscal year, adjust the rate in paragraph
(1) in that manner as to generate an amount of revenue that will
equal the amount of revenue loss attributable to the exemption
provided by Section 6357.7, based on estimates made by the board, and
that rate shall be effective during the state's next fiscal year.
(3) In order to maintain revenue neutrality for each year,
beginning with the rate adjustment on or before March 1, 2012, the
adjustment under paragraph (2) shall also take into account the
extent to which the actual amount of revenues derived pursuant to
this subdivision and, as applicable, Section 7361.1, the revenue loss
attributable to the exemption provided by Section 6357.7 resulted in
a net revenue gain or loss for the fiscal year ending prior to the
rate adjustment date on or before March 1.
(4) The intent of paragraphs (2) and (3) is to ensure that the act
adding this subdivision and Section 6357.7 does not produce a net
revenue gain in state taxes.
SEC. 6. Section 7361.2 is added to the Revenue and Taxation Code,
to read:
7361.2. (a) For the privilege of storing, for the purpose of
sale, each supplier, wholesaler, and retailer owning 1,000 or more
gallons of tax-paid motor vehicle fuel on the 61st day after the
effective date of the act adding this section shall pay a storage tax
of ten cents ($0.10) per gallon of tax-paid motor vehicle fuel in
storage according to the volumetric measure thereof.
(b) For purposes of this section:
(1) "Owning" means having title to the motor vehicle fuel.
(2) "Retailer" means any person who sells motor vehicle fuel in
this state to a person who subsequently uses the motor vehicle fuel.
(3) "Storing" includes the ownership or possession of tax-paid
motor vehicle fuel outside of the bulk transfer/terminal system,
including the holding of tax-paid motor vehicle fuel for sale at
wholesale or retail locations stored in a container of any kind,
including railroad tank cars and trucks or trailer cargo tanks.
"Storing" also includes tax-paid motor vehicle fuel purchased from
and invoiced by the seller, and tax-paid motor vehicle fuel removed
from a terminal or entered into by a supplier, prior to the date
specified in subdivision (a) and in transit on that date.
(4) "Wholesaler" means any person who sells motor vehicle fuel in
this state for resale to a retailer or to a person who is not a
retailer and subsequently uses the motor vehicle fuel.
SEC. 7. Section 7653.2 is added to the Revenue and Taxation Code,
to read:
7653.2. On or before the 121st day after the effective date of
the act adding this section, each person subject to the storage tax
imposed under Section 7361.2 shall prepare and file with the board,
in a form prescribed by the board, a return showing the total number
of gallons of tax-paid motor vehicle fuel owned by the person on the
61st day after the effective date of the act adding this section, the
amount of the storage tax, and any other information that the board
deems necessary for the proper administration of this part. The
return shall be accompanied by a remittance payable to the Controller
in the amount of tax due.
SEC. 8. Section 10752 of the Revenue and Taxation Code is amended
to read:
10752. (a) The annual amount of the license fee for any vehicle,
other than a trailer or semitrailer, as described in subdivision (a)
of Section 5014.1 of the Vehicle Code or a commercial motor vehicle
described in Section 9400.1 of the Vehicle Code, or a trailer coach
that is required to be moved under permit as authorized in Section
35790 of the Vehicle Code, shall be a sum equal to the following
percentage of the market value of the vehicle as determined by the
department:
(1) Sixty-five hundredths of 1 percent on and after January 1,
2005, and before May 19, 2009.
(2) One percent for initial and renewal registrations due on and
after May 19, 2009, but before July 1, 2011.
(3) Sixty-five hundredths of 1 percent for initial and renewal
registrations due on and after July 1, 2011.
2011, but before July 1, 2015. However, to the extent the act
amending this section in the first year of the 2015-16 legislative
session becomes effective after July 1, 2015, the amount payable
under this paragraph shall also apply to initial and renewal
registrations due on and after July 1, 2015, but before the date that
is 120 days after that act becomes effective.
(4) Seventy-two hundredths of 1 percent for initial and renewal
registrations due on and after July 1, 2015, but before July 1, 2016.
However, to the extent the act amending this section in the first
year of the 2015-16 legislative session becomes effective after July
1, 2015, the amount payable under this paragraph shall apply to
initial and renewal registrations due on and after the date that is
120 days after that act becomes effective, but before July 1, 2016.
(5) Seventy-nine hundredths of 1 percent for initial and renewal
registrations due on and after July 1, 2016, but before July 1, 2017.
(6) Eighty-six hundredths of 1 percent for initial and renewal
registrations due on and after July 1, 2017, but before July 1, 2018.
(7) Ninety-three hundredths of 1 percent for initial and renewal
registrations due on and after July 1, 2018, but before July 1, 2019.
(8) One percent for initial and renewal registrations due on and
after July 1, 2019.
(b) The annual amount of the license fee for any commercial
vehicle as described in Section 9400.1 of the Vehicle Code, shall be
a sum equal to 0.65 percent of the market value of the vehicle as
determined by the department.
(c) Notwithstanding Chapter 5 (commencing with Section 11001) or
any other law to the contrary, all revenues (including penalties),
less refunds, attributable to that portion of the rate imposed
pursuant to this section in excess of 0.65 percent shall be deposited
into the General Fund. Transportation Bond
Debt Service Account in the State Transportation Fund, a special fund
that is hereby created, and shall be used for debt service on
transportation general obligation bonds. However, the annual Budget
Act shall contain an appropriation from the Motor Vehicle License Fee
Account to the Department of Motor Vehicles for its costs of
administering this section, to the extent those costs are not covered
by the appropriation authorized by subdivision (b) of Section 11003.
SEC. 9. Section 60050 of the Revenue and Taxation Code is amended
to read:
60050. (a) (1) A tax of eighteen cents ($0.18) is hereby imposed
upon each gallon of diesel fuel subject to the tax in Sections 60051,
60052, and 60058.
(2) If the federal fuel tax is reduced below the rate of fifteen
cents ($0.15) per gallon and federal financial allocations to this
state for highway and exclusive public mass transit guideway purposes
are reduced or eliminated correspondingly, the tax rate imposed by
paragraph (1), including any reduction or adjustment pursuant to
subdivision (b), on and after the date of the reduction, shall be
increased by an amount so that the combined state rate under
paragraph (1) and the federal tax rate per gallon equal what it would
have been in the absence of the federal reduction.
(3) If any person or entity is exempt or partially exempt from the
federal fuel tax at the time of a reduction, the person or entity
shall continue to be exempt under this section.
(b) (1) On July 1, 2011, the tax rate specified in paragraph (1)
of subdivision (a) shall be reduced to thirteen cents ($0.13) and
every July 1 thereafter shall be adjusted pursuant to paragraphs (2)
and (3).
(2) For the 2012-13 fiscal year and each fiscal year thereafter,
the board shall, on or before March 1 of the fiscal year immediately
preceding the applicable fiscal year, adjust the rate reduction in
paragraph (1) in that manner as to result in a revenue loss
attributable to paragraph (1) that will equal the amount of revenue
gain attributable to Sections 6051.8 and 6201.8, based on estimates
made by the board, and that rate shall be effective during the state'
s next fiscal year.
(3) In order to maintain revenue neutrality for each year,
beginning with the rate adjustment on or before March 1, 2013, the
adjustment under paragraph (2) shall take into account the extent to
which the actual amount of revenues derived pursuant to Sections
6051.8 and 6201.8 and the revenue loss attributable to this
subdivision resulted in a net revenue gain or loss for the fiscal
year ending prior to the rate adjustment date on or before March 1.
(4) The intent of paragraphs (2) and (3) is to ensure that the act
adding this subdivision and Sections 6051.8 and 6201.8 does not
produce a net revenue gain in state taxes.
(c) In addition to the tax imposed pursuant to subdivisions (a)
and (b), on and after the 61st day after the effective date of the
act adding this subdivision, an additional tax of twelve cents
($0.12) is hereby imposed upon each gallon of diesel fuel subject to
the tax in Sections 60051, 60052, and 60058. This subdivision shall
be inoperative in any fiscal year in which the Road Maintenance and
Rehabilitation Program has not been authorized, pursuant to
subdivision (b) of Section 2030 of the Streets and Highways Code.
SEC. 10. Section 60050.2 is added to the Revenue and Taxation
Code, to read:
60050.2. (a) For the privilege of storing, for the purpose of
sale, each supplier, wholesaler, and retailer owning 1,000 or more
gallons of tax-paid diesel fuel on the 61st day after the effective
date of the act adding this section shall pay a storage tax of twelve
cents ($0.12) per gallon of tax-paid diesel fuel in storage
according to the volumetric measure thereof.
(b) For purposes of this section:
(1) "Owning" means having title to the diesel fuel.
(2) "Retailer" means any person who sells diesel fuel in this
state to a person who subsequently uses the diesel fuel.
(3) "Storing" includes the ownership or possession of tax-paid
diesel fuel outside of the bulk transfer/terminal system, including
the holding of tax-paid diesel fuel for sale at wholesale or retail
locations stored in a container of any kind, including railroad tank
cars and trucks or trailer cargo tanks. "Storing" also includes
tax-paid diesel fuel purchased from and invoiced by the seller, and
tax-paid diesel fuel removed from a terminal or entered into by a
supplier, prior to the date specified in subdivision (a) and in
transit on that date.
(4) "Wholesaler" means any person who sells diesel fuel in this
state for resale to a retailer or to a person who is not a retailer
and subsequently uses the diesel fuel.
SEC. 11. Section 60201.4 is added to the Revenue and Taxation
Code, to read:
60201.4. On or before the 121st day after the effective date of
the act adding this section, each person subject to the storage tax
imposed under Section 60050.2 shall prepare and file with the board,
in a form prescribed by the board, a return showing the total number
of gallons of tax-paid diesel fuel owned by the person on the 61st
day after the effective date of the act adding this section, the
amount of the storage tax, and any other information that the board
deems necessary for the proper administration of this part. The
return shall be accompanied by a remittance payable to the Controller
in the amount of tax due.
SEC. 12. Chapter 2 (commencing with Section 2030) is added to
Division 3 of the Streets and Highways Code, to read:
CHAPTER 2. ROAD MAINTENANCE AND REHABILITATION PROGRAM
2030. (a) The Road Maintenance and Rehabilitation Program is
hereby created to address deferred maintenance on the state highway
system and the local street and road system. Funds made available by
the program shall be prioritized for expenditure on basic road
maintenance and road rehabilitation projects, and on critical safety
projects. The program shall be subject to reauthorization every five
years by the Legislature. The California Transportation Commission
shall identify the estimated funds to be available pursuant to this
chapter for the program during any authorized five-year period, and
shall adopt performance criteria to ensure efficient use of the
funds.
(b) The Legislature hereby authorizes the program for the 2015-16
to 2019-20 fiscal years, inclusive.
(c) If the Legislature does not reauthorize the program beyond the
2019-20 fiscal year, the increases in excise tax rates for motor
vehicle fuel and diesel fuel associated with the revenues referenced
in subdivision (a) of Section 2031, and the increase in the vehicle
registration fee referenced in Section 9250.3 of the Vehicle Code,
shall terminate at the end of the 2019-20 fiscal year.
2031. The following revenues shall be deposited in the Road
Maintenance and Rehabilitation Account, which is hereby created in
the State Transportation Fund:
(a) (1) The revenues attributable to the increase in the motor
vehicle fuel excise tax by ten cents ($0.10) per gallon and the
revenues attributable to ten cents ($0.10) per gallon of the increase
in the diesel fuel excise tax by twelve cents ($0.12) per gallon, as
provided in Section 2103.1.
(2) The revenues attributable to the storage tax imposed pursuant
to Section 7361.2 of the Revenue and Taxation Code and the revenues
attributable to ten cents ($0.10) of the storage tax per gallon of
tax-paid diesel fuel imposed by Section 60050.2 of the Revenue and
Taxation Code, as provided in Section 2103.1.
(b) The revenues from the increase in the vehicle registration fee
pursuant to Section 9250.3 of the Vehicle Code.
(c) The revenues from the increase in the vehicle registration fee
pursuant to Section 9250.6 of the Vehicle Code, except as provided
in paragraph (2) of subdivision (b) of that section.
(d) The revenues from vehicle weight fees redirected from
transportation bond debt service to the State Highway Account,
pursuant to the schedule set forth in subdivision (a) of Section
9400.5 of the Vehicle Code.
(e) The revenues from repayment of loans made from the State
Highway Account, the Motor Vehicle Fuel Account, the Highway Users
Tax Account, and the Motor Vehicle Account to the General Fund,
pursuant to the schedule set forth in Section 16321 of the Government
Code.
(f) Any other revenues designated for the program.
2031.5. For each fiscal year in which the Road Maintenance and
Rehabilitation Program is authorized, the annual Budget Act shall
contain an appropriation from the Road Maintenance and Rehabilitation
Account to the Controller for the costs of carrying out his or her
duties pursuant to this chapter and to the California Transportation
Commission for the costs of carrying out its duties pursuant to this
chapter and Sections 14526.7 and 14526.8 of the Government Code.
2032. (a) After deducting the amounts appropriated in the annual
Budget Act as provided in Section 2031.5, 5 percent of the remaining
revenues deposited in the Road Maintenance and Rehabilitation Account
for the period of fiscal years specified in subdivision (b) of
Section 2030 shall be set aside for counties in which voters approve,
on or after July 1, 2015, a transactions and use tax for
transportation purposes, and which counties did not, prior to that
approval, impose a transactions and use tax for those purposes. The
funds available under this subdivision in each fiscal year are hereby
continuously appropriated for allocation to each eligible county and
each city in the county for road maintenance and rehabilitation
purposes pursuant to Section 2035. However, funds remaining
unallocated under this subdivision in any fiscal year shall be
reallocated on the last day of the fiscal year pursuant to
subdivision (b).
(b) The balance of the revenues deposited in the Road Maintenance
and Rehabilitation Account for the period of fiscal years specified
in subdivision (b) of Section 2030, including the revenues
reallocated for the purposes of this subdivision pursuant to
subdivision (a), are hereby continuously appropriated for road
maintenance and rehabilitation purposes under the program, as
follows:
(1) Fifty percent for allocation to the department for maintenance
of the state highway system or for purposes of the state highway
operation and protection program.
(2) Fifty percent for apportionment to cities and counties by the
Controller pursuant to the formula in subparagraph (C) of paragraph
(3) of subdivision (a) of Section 2103 for the purposes authorized by
this chapter, subject to subdivision (d) of Section 2033 and
paragraph (2) of subdivision (a) of Section 2034.
2033. (a) The commission shall annually evaluate each agency
receiving funds pursuant to this chapter.
(b) For each fiscal year in which the department receives an
allocation of funds pursuant to Section 2032, the department shall
submit documentation to the commission that includes a description
and the location of each completed project, the amount of funds
expended on the project, the completion date, and the project's
estimated useful life. The commission shall evaluate the
documentation to determine the effectiveness of the department in
reducing deferred maintenance and improving road conditions on the
state highway system, and may withhold future funding from the
department if it determines that program funds have not been
appropriately spent.
(c) For each fiscal year in which an agency receives an
apportionment of funds pursuant to subdivision (a) or paragraph (2)
of subdivision (b) of Section 2032, the commission shall evaluate the
documentation submitted pursuant to subdivision (b) of Section 2034
to determine the effectiveness of the agency in reducing deferred
maintenance and improving road conditions within its jurisdiction.
(d) If the commission determines, with respect to any given fiscal
year, that a local agency has not appropriately spent its
apportionment of funds, the commission shall direct the Controller to
make that agency ineligible to receive an apportionment during the
next fiscal year. The Controller shall reapportion that agency's
share of funds to all other eligible local agencies pursuant to
paragraph (2) of subdivision (b) of Section 2032.
(e) The commission shall include a discussion of its evaluations
pursuant to this section in its annual report to the Legislature
pursuant to Section 14535 of the Government Code.
2034. (a) (1) Prior to receiving an apportionment of funds under
the program pursuant to paragraph (2) of subdivision (b) of Section
2032 from the Controller in a fiscal year, an eligible local agency
shall submit to the commission a list of projects proposed to be
funded with these funds pursuant to an adopted city, county, or city
and county budget. All projects proposed to receive funding shall be
included in a city, county, or city and county budget that is adopted
by the applicable city council or county board of supervisors at a
regular public meeting. The list of projects proposed to be funded
with these funds shall include a description and the location of each
proposed project, a proposed
schedule for the project's completion, and the estimated useful
life of the improvement. The project list shall not limit the
flexibility of an eligible local agency to fund projects in
accordance with local needs and priorities so long as the projects
are consistent with subdivision (d).
(2) The commission shall report to the Controller the local
agencies that have submitted a list of projects as described in this
subdivision and that are therefore eligible to receive an
apportionment of funds under the program for the applicable fiscal
year. The Controller, upon receipt of the report, shall apportion
funds to eligible local agencies.
(b) For each fiscal year, each local agency receiving an
apportionment of funds shall, upon expending program funds, submit
documentation to the commission that includes a description and
location of each completed project, the amount of funds expended on
the project, the completion date, and the project's estimated useful
life. The documentation shall also include a comparison of the
projects the local agency would have completed without receiving
funds under the program compared with the projects completed with
these funds.
(c) The documentation provided pursuant to subdivision (b) shall
be forwarded by the commission to the department, in a manner and
form approved by the department, at the end of each fiscal year as
long as program funds remain available for expenditure. The
department may post the information contained in the documentation on
its Internet Web site.
(d) Funds made available to a local agency under the program shall
be used for improvements to transportation facilities that will
assist in reducing further deterioration of the existing road system.
These improvements may include, but need not be limited to, pavement
maintenance, rehabilitation, installation, construction, and
reconstruction of necessary associated facilities such as drainage
and traffic control devices, or safety projects to reduce fatalities.
Funds made available under the program may also be used to satisfy
the local match requirement in order to obtain state or federal
transportation funds for similar purposes.
2035. (a) On or before July 1, 2016, the commission, in
cooperation with the department, transportation planning agencies,
county transportation commissions, and other local agencies, shall
develop guidelines for the allocation of funds pursuant to
subdivision (a) of Section 2032.
(b) The guidelines shall be the complete and full statement of the
policy, standards, and criteria that the commission intends to use
to determine how these funds will be allocated.
(c) The commission may amend the adopted guidelines after
conducting at least one public hearing.
2036. (a) Cities and counties shall maintain their existing
commitment of local funds for street, road, and highway purposes in
order to remain eligible for an allocation or apportionment of funds
pursuant to Section 2032.
(b) In order to receive an allocation or apportionment pursuant to
Section 2032, the city or county shall annually expend from its
general fund for street, road, and highway purposes an amount not
less than the annual average of its expenditures from its general
fund during the 2009-10, 2010-11, and 2011-12 fiscal years, as
reported to the Controller pursuant to Section 2151. For purposes of
this subdivision, in calculating a city's or county's annual general
fund expenditures and its average general fund expenditures for the
2009-10, 2010-11, and 2011-12 fiscal years, any unrestricted funds
that the city or county may expend at its discretion, including
vehicle in-lieu tax revenues and revenues from fines and forfeitures,
expended for street, road, and highway purposes shall be considered
expenditures from the general fund. One-time allocations that have
been expended for street and highway purposes, but which may not be
available on an ongoing basis, including revenue provided under the
Teeter Plan Bond Law of 1994 (Chapter 6.6 (commencing with Section
54773) of Part 1 of Division 2 of Title 5 of the Government Code),
may not be considered when calculating a city's or county's annual
general fund expenditures.
(c) For any city incorporated after July 1, 2009, the Controller
shall calculate an annual average of expenditure for the period
between July 1, 2009, and December 31, 2015, inclusive, that the city
was incorporated.
(d) For purposes of subdivision (b), the Controller may request
fiscal data from cities and counties in addition to data provided
pursuant to Section 2151, for the 2009-10, 2010-11, and 2011-12
fiscal years. Each city and county shall furnish the data to the
Controller not later than 120 days after receiving the request. The
Controller may withhold payment to cities and counties that do not
comply with the request for information or that provide incomplete
data.
(e) The Controller may perform audits to ensure compliance with
subdivision (b) when deemed necessary. Any city or county that has
not complied with subdivision (b) shall reimburse the state for the
funds it received during that fiscal year. Any funds withheld or
returned as a result of a failure to comply with subdivision (b)
shall be reapportioned to the other counties and cities whose
expenditures are in compliance.
(f) If a city or county fails to comply with the requirements of
subdivision (b) in a particular fiscal year, the city or county may
expend during that fiscal year and the following fiscal year a total
amount that is not less than the total amount required to be expended
for those fiscal years for purposes of complying with subdivision
(b).
SEC. 13. Section 2103.1 is added to the Streets and Highways Code,
to read:
2103.1. (a) Notwithstanding subdivision (b) of Section 2103, the
portion of the revenues in the Highway Users Tax Account attributable
to the increase in the tax rate on motor vehicle fuel by ten cents
($0.10) per gallon pursuant to subdivision (a) of Section 7360 of the
Revenue and Taxation Code and the increase in the tax rate on diesel
fuel by twelve cents ($0.12) per gallon pursuant to subdivision (c)
of Section 60050 of the Revenue and Taxation Code, as amended by the
act adding this section, shall be deposited in the Road Maintenance
and Rehabilitation Account created pursuant to Section 2031, except
that the portion of the revenues attributable to two cents ($0.02) of
the increase in the per gallon tax rate on diesel fuel shall be
deposited in the Trade Corridors Improvement Fund for expenditure
pursuant to Section 2192.
(b) The portion of the revenues in the Highway Users Tax Account
attributable to the storage tax imposed pursuant to Section 7361.2 of
the Revenue and Taxation Code and the storage tax imposed pursuant
to Section 60050.2 of the Revenue and Taxation Code shall be
deposited in the Road Maintenance and Rehabilitation Account created
pursuant to Section 2031, except that the portion of the revenues
attributable to two cents ($0.02) of the storage tax per gallon of
tax-paid diesel fuel imposed by Section 60050.2 of the Revenue and
Taxation Code shall be deposited in the Trade Corridors Improvement
Fund for expenditure pursuant to Section 2192.
SEC. 14. Section 9250.3 is added to the Vehicle Code, to read:
9250.3. (a) In addition to any other fees specified in this code
or the Revenue and Taxation Code, commencing 120 days after the
effective date of the act adding this section, a registration fee of
thirty-five dollars ($35) shall be paid to the department for
registration or renewal of registration of every vehicle subject to
registration under this code, except those vehicles that are
expressly exempted under this code from payment of registration fees.
(b) (1) For any year in which the Road Maintenance and
Rehabilitation Program is authorized pursuant to subdivision (b) of
Section 2030 of the Streets and Highways Code, revenues from the fee,
after deduction of the department's administrative costs related to
this section, shall be deposited in the Road Maintenance and
Rehabilitation Account created pursuant to Section 2031 of the
Streets and Highways Code.
(2) For any year in which the Legislature does not reauthorize the
Road Maintenance and Rehabilitation Program, this section shall be
inoperative.
SEC. 15. Section 9250.6 is added to the Vehicle Code, to read:
9250.6. (a) In addition to any other fees specified in this code
or in the Revenue and Taxation Code, commencing 120 days after the
effective date of the act adding this section, a registration fee of
one hundred dollars ($100) shall be paid to the department for
registration or renewal of registration of every zero-emission motor
vehicle subject to registration under this code, except those motor
vehicles that are expressly exempted under this code from payment of
registration fees.
(b) (1) For any year in which the Road Maintenance and
Rehabilitation Program is authorized pursuant to subdivision (b) of
Section 2030 of the Streets and Highways Code, revenues from the fee,
after deduction of the department's administrative costs related to
this section, shall be deposited in the Road Maintenance and
Rehabilitation Account created pursuant to Section 2031 of the
Streets and Highways Code.
(2) For any year in which the Legislature does not reauthorize the
Road Maintenance and Rehabilitation Program, revenues from the fee
shall be deposited in the State Highway Account to be used for
purposes of maintaining the state highway system or the state highway
operation and protection program.
(c) This section does not apply to a commercial motor vehicle
subject to Section 9400.1.
(d) For purposes of this section, "zero-emission motor vehicle"
means a motor vehicle as described in subdivisions (c) and (d) of
Section 44258 of the Health and Safety Code, or any other motor
vehicle that is able to operate on any fuel other than gasoline or
diesel fuel.
SEC. 16. Section 9400.5 is added to the Vehicle Code, to read:
9400.5. (a) Notwithstanding Sections 9400.1, 9400.4, and 42205 of
this code, Sections 16773 and 16965 of the Government Code, Section
2103 of the Streets and Highways Code, or any other law, the amount
of weight fee revenues otherwise to be transferred from the State
Highway Account to the Transportation Debt Service Fund, the
Transportation Bond Direct Payment Account, or any other fund or
account for the purpose of payment of the debt service on
transportation general obligation bonds, or for the purpose of being
loaned to the General Fund, shall be reduced pursuant to the
following schedule, with the applicable revenues thereby retained in
the State Highway Account to be transferred to the Road Maintenance
and Rehabilitation Account created pursuant to Section 2031 of the
Streets and Highways Code:
(1) For the 2015-16 fiscal year, by 20 percent.
(2) For the 2016-17 fiscal year, by 40 percent.
(3) For the 2017-18 fiscal year, by 60 percent.
(4) For the 2018-19 fiscal year, by 80 percent.
(5) For the 2019-20 fiscal year and in each subsequent fiscal year
thereafter, by 100 percent.
(b) For any year in which the Legislature does not reauthorize the
Road Maintenance and Rehabilitation Program, pursuant to subdivision
(b) of Section 2030 of the Streets and Highways Code, the revenues
described in subdivision (a) shall be retained in the State Highway
Account to be used for purposes of maintaining the state highway
system or the state highway operation and protection program.
SEC. 17. This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
In order to provide additional funding for road maintenance and
rehabilitation purposes as quickly as possible, it is necessary for
this act to take effect immediately.