Amended in Senate July 14, 2015

California Legislature—2015–16 First Extraordinary Session

Senate Bill No. 1

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 begin delete 7360, 10752, end delete begin insert 7360 end insert 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, begin delete and end delete to add begin insert Article 8 (commencing with Section 228) to Chapter 1 of Division 1 of, and to add end insert Chapter 2 (commencing with Section 2030) to Division 3 of, the Streets and Highways Code, and to add Sections begin delete 9250.3, 9250.6, and 9400.5 end delete begin insert 9250.3 and 9250.6 end insert 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 amended, 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. begin delete 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. end delete The bill would require the California Transportation Commission to begin delete identify the estimated funds to be available for the program and end delete adopt performance criteria to ensure efficient use of the begin delete funds. end delete begin insert funds available for the program. end insert 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 begin delete $0.10 end delete begin insert $0.12 end insert per gallon increase in the motor vehicle fuel (gasoline) tax imposed by the bill and $0.10 of the begin delete $0.12 end delete begin insert $0.22 end insert per gallon increase in the diesel fuel excise tax imposed by the bill, a begin delete $0.10 end delete begin insert $0.12 end insert per gallon storage tax on motor vehicle fuel and $0.10 of the begin delete $0.12 end delete begin insert $0.22 end insert 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, begin delete commercial vehicle weight fees redirected over a 5-year period from debt service on general obligation transportation bonds, end delete begin insert a new annual road access charge on each vehicle, as defined, of $35, end insert 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 begin delete for each 5-year period in which the Legislature has authorized the program, and would, for those fiscal years, end delete begin insert and would end insert 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. begin insert The bill would authorize a city or county to spend its apportionment of funds under the program on transportation priorities other than those allowable pursuant to the program if the city’s or county’s average Pavement Condition Index meets or exceeds 85. end insert

begin delete

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.

end delete

(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 begin delete $0.02 of the $0.12 end delete begin insert $0.12 of the $0.22 end insert increase in the diesel fuel excise tax and revenues attributable to begin delete $0.02 end delete begin insert $0.12 end insert of the begin delete $0.12 end delete begin insert $0.22 end insert per gallon storage tax on diesel fuel to the Trade Corridors Improvement Fund for expenditure on eligible projects. begin delete 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. end delete

begin delete

(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.

end delete begin delete

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.

end delete begin insert

(3) Existing law, as of July 1, 2011, increases the sales and use tax on diesel and decreases the excise tax, as provided. Existing law requires the State Board of Equalization to annually modify both the gasoline and diesel excise tax rates on a going-forward basis so that the various changes in the taxes imposed on gasoline and diesel are revenue neutral.

end insert begin insert

This bill would eliminate the annual rate adjustment to maintain revenue neutrality for the gasoline and diesel excise tax rates. This bill would, beginning January 1, 2019, and every 3rd year thereafter, require the board to recompute the gasoline and diesel excise tax rates based upon the percentage change in the California Consumer Price Index transmitted to the board by the Department of Finance, as prescribed.

end insert

(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 begin delete five-year end delete funding program will help address a portion of
the maintenance backlog on the state’s road system and will stop
the growth of the begin delete problem until a longer term solution can be
created. end delete begin insert problem. end insert

(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 begin delete ten cents ($0.10) end delete begin insert twelve cents
($0.12) end insert is hereby imposed upon each gallon of fuel subject to the
tax in Sections 7362, 7363, and 7364. begin delete 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. end delete

(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)  begin delete (1) end delete begin delete   end delete 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.

begin delete

(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.

end delete begin insert

(c) Beginning January 1, 2019, and every third year thereafter,
the State Board of Equalization shall recompute the rates of the
taxes imposed by this section. That computation shall be made as
follows:

end insert begin insert

(1) The Department of Finance shall transmit to the State Board
of Equalization the percentage change in the California Consumer
Price Index for all items from June of three calendar years prior
to June of the current calendar year, no later than August 1, 2018,
and August 1 of every third year thereafter.

end insert begin insert

(2) The State Board of Equalization shall do both of the
following:

end insert begin insert

(A) Compute an inflation adjustment factor by adding 100
percent to the percentage change figure that is furnished pursuant
to paragraph (1) and dividing the result by 100.

end insert begin insert

(B) Multiply the preceding tax rate per gallon by the inflation
adjustment factor determined in subparagraph (A) and round off
the resulting products to the nearest tenth of a cent.

end insert

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 begin delete ten cents ($0.10) end delete begin insert twelve cents ($0.12) end insert 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.

begin delete

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, 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 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.

end delete

begin delete SEC. 9. end delete
begin insert SEC. 8. end insert   

Section 60050 of the Revenue and Taxation Code is
amended to read:

60050.  

(a) (1) A tax of begin delete eighteen cents ($0.18) end delete begin insert thirteen cents
($0.13) end insert 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 begin delete (1), including any reduction or adjustment
pursuant to subdivision (b), on and after the date of the reduction, end delete
begin insert (1) end insert 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.

begin delete

(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)

end delete

begin insert (b) end insert  In addition to the tax imposed pursuant to begin delete subdivisions (a)
and (b), end delete begin insert subdivision (a), end insert on and after the 61st day after the effective
date of the act adding this subdivision, an additional tax of begin delete twelve
cents ($0.12) end delete begin insert twenty end insert begin insert -two cents ($0.22) end insert is hereby imposed upon
each gallon of diesel fuel subject to the tax in Sections 60051,
60052, and 60058. begin delete 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. end delete

begin insert

(c) Beginning January 1, 2019, and every third year thereafter,
the State Board of Equalization shall recompute the rates of the
taxes imposed by this section. That computation shall be made as
follows:

end insert begin insert

(1) The Department of Finance shall transmit to the State Board
of Equalization the percentage change in the California Consumer
Price Index for all items from June of three calendar years prior
to June of the current calendar year, no later than August 1, 2018,
and August 1 of every third year thereafter.

end insert begin insert

(2) The State Board of Equalization shall do both of the
following:

end insert begin insert

(A) Compute an inflation adjustment factor by adding 100
percent to the percentage change figure that is furnished pursuant
to paragraph (1) and dividing the result by 100.

end insert begin insert

(B) Multiply the preceding tax rate per gallon by the inflation
adjustment factor determined in subparagraph (A) and round off
the resulting products to the nearest tenth of a cent.

end insert

begin delete SEC. 10. end delete
begin insert SEC. 9. end insert   

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 begin delete twelve
cents ($0.12) end delete begin insert twenty-two cents ($0.22) end insert 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.

begin delete SEC. 11. end delete
begin insert SEC. 10. end insert   

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.

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Article 8 (commencing with Section 228) is added to
Chapter 1 of Division 1 of the end insert begin insert Streets and Highways Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 8. end insert   Road Access Charge

 

begin insert 228. end insert   

(a) In addition to any other charge imposed on a vehicle
by law, an annual road access charge is hereby imposed on each
vehicle described in subdivision (c). The amount of the annual
road access charge shall be thirty-five dollars ($35). The
Department of Motor Vehicles shall collect the charge at the same
time and in the same manner as the department collects the vehicle
registration fee pursuant to Section 9250.3 of the Vehicle Code.

(b) Revenues from the charge, 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.

(c) As used in this section, “vehicle” means every vehicle subject
to registration in this state. “Vehicle” does not mean either any
vehicle exempted pursuant to the Vehicle Code from the payment
of registration fees or any vehicle for which a certificate of
nonoperation has been filed with the Department of Motor Vehicles
pursuant to Section 4604 of the Vehicle Code during the period
of time covered by the certificate.

end insert

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. begin delete The program shall be subject to
reauthorization every five years by the Legislature. end delete The California
Transportation Commission begin delete shall identify the estimated funds to
be available pursuant to this chapter for the program during any
authorized five-year period, and end delete shall adopt performance criteria
to ensure efficient use of the begin delete funds. end delete begin insert funds available pursuant to
this chapter for the program. end insert

begin delete

(b) The Legislature hereby authorizes the program for the
2015-16 to 2019-20 fiscal years, inclusive.

end delete begin delete

(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.

end delete begin insert

(b) Funds made available by the program shall be used for
projects that include, but are not limited to, the following:

end insert begin insert

(1) Road maintenance and rehabilitation.

end insert begin insert

(2) Safety projects.

end insert begin insert

(3) Railroad grade separations.

end insert begin insert

(4) Active transportation and pedestrian and bicycle safety
projects in conjunction with any other allowable project.

end insert begin insert

(c) To the extent possible, the department and cities and counties
receiving an apportionment of funds under the program shall use
advanced technologies and material recycling techniques that
reduce the cost of maintaining and rehabilitating the streets and
highways.

end insert

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 begin delete ten cents ($0.10) end delete begin insert twelve cents ($0.12) end insert
per gallon and the revenues attributable to ten cents ($0.10) per
gallon of the increase in the diesel fuel excise tax by begin delete twelve cents
($0.12) end delete begin insert twenty-two cents ($0.22) end insert 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 begin delete Code, except as
provided in paragraph (2) of subdivision (b) of that section. end delete begin insert Code. end insert

begin delete

(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.

end delete begin insert

(d) The revenues from the road access charge imposed pursuant
to Section 228.

end insert

(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.  

begin delete For each fiscal year in which the Road Maintenance
and Rehabilitation Program is authorized, the end delete begin insert Each fiscal year the end insert
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 begin delete for the period of fiscal years specified in
subdivision (b) of Section 2030 end delete 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 begin delete Account for the period of fiscal
years specified in subdivision (b) of Section 2030, end delete begin insert Account, end insert
including the revenues reallocated for the purposes of this
subdivision pursuant to subdivision (a), are hereby continuously
appropriated begin delete for road maintenance and rehabilitation purposes
under the program, end delete 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 begin delete agency end delete
begin insert city and county end insert 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 begin delete an agency end delete begin insert a city or county end insert
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 begin delete agency end delete
begin insert city or county end insert 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 begin delete local agency end delete begin insert city or county end insert has not appropriately
spent its apportionment of funds, the commission shall direct the
Controller to make that begin delete agency end delete begin insert city or county end insert ineligible to receive
an apportionment during the next fiscal year. The Controller shall
reapportion that begin delete agency’s end delete begin insert city’s or county’s end insert share of funds to all
other eligible begin delete local agencies end delete begin insert cities or counties end insert 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 begin delete local
agency end delete begin insert city or county end insert shall submit to the commission a list of
projects proposed to be funded with these funds pursuant to an
adopted begin delete city, county, or city and end delete begin insert city or end insert county budget. All projects
proposed to receive funding shall be included in a begin delete city, county, or
city and end delete begin insert city or end insert 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 begin delete local agency end delete begin insert city or county end insert 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 begin delete local
agencies end delete begin insert cities and counties end insert 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 begin delete local agencies. end delete begin insert cities and counties. end insert

(b) For each fiscal year, each begin delete local agency end delete begin insert city or county end insert
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
begin delete project’s end delete estimated useful begin delete life. end delete begin insert life of the improvement. end insert The
documentation shall also include a comparison of the projects the
begin delete local agency end delete begin insert city or county end insert 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)  begin insert (1) end insert begin insert   end insert Funds made available to a begin delete local agency end delete begin insert city or county end insert
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. begin delete Funds end delete

begin insert (2) end insert begin insert   end insert begin insert Funds end insert made available under the program may also be used
begin delete to end delete begin insert for the following purposes: end insert

begin insert (A) end insert begin insert   end insert begin insert To end insert satisfy the local match requirement in order to obtain
state or federal transportation funds for similar purposes.

begin insert

(B) Active transportation and pedestrian and bicycle safety
projects in conjunction with any other allowable project.

end insert

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).

begin insert

begin insert 2037. end insert   

A city or county may spend its apportionment of funds
under the program on transportation priorities other than those
allowable pursuant to this chapter if the city’s or county’s average
Pavement Condition Index meets or exceeds 85.

end insert

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
begin delete ten cents ($0.10) end delete begin insert twelve cents ($0.12) end insert per gallon pursuant to
subdivision (a) of Section 7360 of the Revenue and Taxation begin delete Code end delete
begin insert Code, as adjusted pursuant to subdivision (c) of that section, end insert and
the increase in the tax rate on diesel fuel by begin delete twelve cents ($0.12) end delete
begin insert twenty-two cents ($0.22) end insert per gallon pursuant to subdivision begin delete (c) end delete begin insert (b) end insert
of Section 60050 of the Revenue and Taxation Code, begin delete as amended
by the act adding this end delete begin insert adjusted pursuant to subdivision (c) of that end insert
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 begin delete two cents ($0.02)
of the end delete begin insert twelve cents ($0.12) of that end insert increase in the per gallon tax
rate on diesel begin delete fuel end delete begin insert fuel, as adjusted, end insert 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 begin delete two cents ($0.02) end delete
begin insert twelve cents ($0.12) end insert 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 begin delete code
or end delete begin insert code, end insert the Revenue and Taxation Code, begin insert or the Streets and
Highways Code, end insert 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)  begin delete (1) end delete begin delete   end delete begin delete 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 end delete
begin insert Revenues end insert 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.

begin delete

(2) For any year in which the Legislature does not reauthorize
the Road Maintenance and Rehabilitation Program, this section
shall be inoperative.

end delete

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 begin delete code
or in end delete begin insert code, end insert the Revenue and Taxation Code, begin insert or the Streets and
Highways Code, end insert 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)  begin delete (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 end delete
begin insert Revenues end insert 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.

begin delete

(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.

end delete

(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.

begin delete

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.

end delete

begin delete SEC. 17. end delete
begin insert SEC. 16. end insert   

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.