BILL NUMBER: SBX1 1 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 14, 2015
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,
7360 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 Article 8
(commencing with Section 228) to Chapter 1 of Division 1 of, 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 9250.3 and 9250.6 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. 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.
funds available for the program. 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 $0.12 per gallon increase in
the motor vehicle fuel (gasoline) tax imposed by the bill and $0.10
of the $0.12 $0.22 per gallon increase
in the diesel fuel excise tax imposed by the bill, a $0.10
$0.12 per gallon storage tax on motor vehicle
fuel and $0.10 of the $0.12 $0.22 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, a new annual road access charge on each
vehicle, as defined, of $35, 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, and would
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.
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.
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 $0.12 of the $0.22 increase in the
diesel fuel excise tax and revenues attributable to $0.02
$0.12 of the $0.12 $0.22
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.
(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.
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.
(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. problem.
(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)
twelve cents ($0.12) 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.
(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:
(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.
(2) The State Board of Equalization shall do both of the
following:
(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.
(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.
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) twelve cents ($0.12)
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, 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.
SEC. 9. SEC. 8. Section 60050 of the
Revenue and Taxation Code is amended to read:
60050. (a) (1) A tax of eighteen cents ($0.18)
thirteen cents ($0.13) 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,
(1) 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)
(b) In addition to the tax imposed pursuant to
subdivisions (a) and (b), subdivision (a), on
and after the 61st day after the effective date of the act adding
this subdivision, an additional tax of twelve cents ($0.12)
twenty -two cents ($0.22)
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.
(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:
(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.
(2) The State Board of Equalization shall do both of the
following:
(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.
(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.
SEC. 10. SEC. 9. 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) twenty-two cents ($0.22)
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. SEC. 10. 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. 11. Article 8 (commencing with Section 228)
is added to Chapter 1 of Division 1 of the Streets and
Highways Code , to read:
Article 8. Road Access Charge
228. (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.
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.
funds available pursuant to this chapter for the program.
(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.
(b) Funds made available by the program shall be used for projects
that include, but are not limited to, the following:
(1) Road maintenance and rehabilitation.
(2) Safety projects.
(3) Railroad grade separations.
(4) Active transportation and pedestrian and bicycle safety
projects in conjunction with any other allowable project.
(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.
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)
twelve cents ($0.12) 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) twenty-two
cents ($0.22) 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.
Code.
(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.
(d) The revenues from the road access charge imposed pursuant to
Section 228.
(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
Each fiscal year 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, Account,
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 city and county 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
a city or county 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 city or
county 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 city or county
has not appropriately spent its apportionment of funds, the
commission shall direct the Controller to make that agency
city or county ineligible to receive an
apportionment during the next fiscal year. The Controller shall
reapportion that agency's city's or county's
share of funds to all other eligible local agencies
cities or counties 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 city or county 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
city or county budget. All projects proposed to receive
funding shall be included in a city, county, or city and
city or 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
city or county 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 cities and counties 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. cities and counties.
(b) For each fiscal year, each local agency
city or county 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.
life of the improvement. The documentation shall
also include a comparison of the projects the local agency
city or county 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) (1) Funds made available to a
local agency city or county 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
(2) Funds made available under
the program may also be used to for the
following purposes:
(A) To satisfy the local match
requirement in order to obtain state or federal transportation funds
for similar purposes.
(B) Active transportation and pedestrian and bicycle safety
projects in conjunction with any other allowable project.
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).
2037. 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.
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) twelve cents ($0.12) per
gallon pursuant to subdivision (a) of Section 7360 of the Revenue and
Taxation Code Code, as adjusted pursuant to
subdivision (c) of that section, and the increase in the tax
rate on diesel fuel by twelve cents ($0.12)
twenty-two cents ($0.22) per gallon pursuant to subdivision
(c) (b) of Section 60050 of the Revenue
and Taxation Code, as amended by the act adding this
adjusted pursuant to subdivision (c) of that
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 twelve cents ($0.12) of that
increase in the per gallon tax rate on diesel fuel
fuel, as adjusted, 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) twelve
cents ($0.12) 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 code, the Revenue and Taxation
Code, or the Streets and Highways 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 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 code, the Revenue and
Taxation Code, or the Streets and Highways 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 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. SEC. 16. 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.