Amended in Assembly July 8, 2015

Amended in Senate June 1, 2015

Senate BillNo. 767


Introduced by Senator De León

(Principal coauthors: Senators Allen, Hall, Hernandez, Lara, Liu, and Pavley)

(Principal coauthors: Assembly Members Bloom, Chau, Holden, Jones-Sawyer, and Nazarian)

February 27, 2015


An act to add Section 130350.7 to the Public Utilities Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

SB 767, as amended, De León. Los Angeles County Metropolitan Transportation Authority: transactions and use tax.

Existing law authorizes the Los Angeles County Metropolitan Transportation Authority (MTA) to impose, in addition to any other tax that it is authorized to impose, a transactions and use tax at a rate of 0.5% for the funding of specified transportation-related projects and programs, subject to various requirements, including the adoption of an expenditure plan and voter approval. Existing law authorizes the MTA to seek voter approval to extend the transactions and use tax pursuant to an amended ordinance, subject to various requirements, including adoption of an amended expenditure plan that, among other things, updates certain cost estimates and identifies expected completion dates for projects and programs under the previous expenditure plan, and also requires the amended expenditure plan to be included in an updated long range transportation plan, as specified.

This bill would authorize the MTA to impose an additional transportation transactions and use tax at abegin insert specifiedend insert rate ofbegin insert up toend insert 0.5%begin insert or 1.0% if certain conditions exist andend insert subject to various requirements, including the adoption of an expenditure plan and voter approval, as specified.

The Transactions and Use Tax Law limits to 2% the combined rate of all transactions and use taxes imposed in any county, with certain exceptions.

This bill would exempt the transactions and use tax authorized by the bill from this limitation.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

P2    1

SECTION 1.  

Section 130350.7 is added to the Public Utilities
2Code
, to read:

3

130350.7.  

(a) The Los Angeles County Metropolitan
4Transportation Authority (MTA), in addition to any other tax it is
5authorized to impose or has imposed, may impose a transactions
6and usebegin delete tax at the rate of 0.5 percent,end deletebegin insert tax,end insert for a period to be
7determined by the MTA, that is applicable in the incorporated and
8unincorporated areas of Los Angeles County.begin insert The tax authorized
9by this section shall not exceed either of the following:end insert

begin insert

10(1) The rate of 0.5 percent if a tax authorized by Section
11130350.5 or 130350.6 is in effect.

end insert
begin insert

12(2) The rate of 1.0 percent if a tax authorized by Section
13130350.5 or 130350.6 is not in effect.

end insert

14(b) The ordinance imposing the tax shall contain all of the
15following:

16(1) An expenditure plan that lists the transportation projects and
17programs to be funded from net revenues from the tax. The
18expenditure plan shall appear in the ordinance as an exhibit. The
19expenditure plan shall include all of the following:

20(A) The most recent cost estimates for each project and program
21identified in the expenditure plan.

22(B) The identification of the accelerated cost, if applicable, for
23each project and program in the expenditure plan.

24(C) The approximate schedule during which the MTA anticipates
25funds will be available for each project and program.

P3    1(D) The expected completion dates for each project and program
2within a three-year range.

3(2) Provisions conforming to the Transactions and Use Tax Law
4(Part 1.6 (commencing with Section 7251) of Division 2 of the
5Revenue and Taxation Code), except as otherwise provided in
6subdivision (f).

7(3) A provision limiting the MTA’s costs of administering the
8ordinance and the net revenues from the tax to 1.5 percent of the
9total tax revenues.

10(4) A requirement that the net revenues from the tax, defined
11to mean the total tax revenues less any refunds, costs of
12administration by the State Board of Equalization, and the MTA’s
13administration costs, shall be used by the MTA to fund
14transportation projects and programs identified in the expenditure
15plan.

begin insert

16(5) The rate of the tax, which shall not exceed the applicable
17maximum rate described in subdivision (a).

end insert

18(c) The MTA shall do all of the following:

19(1) Develop a transparent process to determine the most recent
20costs estimates for each project and program identified in the
21expenditure plan.

22(2) At least 30 days before submitting the ordinance described
23in subdivision (b) to the voters, post the expenditure plan on its
24Internet Web site in a prominent manner.

25(d) The ordinance shall be adopted by the MTA board, which
26shall also adopt a resolution that submits the ordinance to the
27voters.

28(e) The ordinance shall become operative pursuant to Section
29130352 if approved by two-thirds of the voters voting on the
30measure, pursuant to subdivision (d) of Section 2 of Article XIII
31C of the California Constitution.

32(f) (1) If the voters approve the ordinance authorized by this
33section, the expenditure plan included as an exhibit to the ordinance
34pursuant to paragraph (1) of subdivision (b) shall also be included
35in the revised and updated Long Range Transportation Plan within
36one year of the date the ordinance takes effect. The revised and
37updated Long Range Transportation Plan shall also include capital
38projects and capital programs that are adopted by each subregion
39that are submitted to the MTA for inclusion in the revised and
40updated Long Range Transportation Plan, if the cost and schedule
P4    1details are provided by the subregions, in a manner consistent with
2the requirements of the plan. Inclusion of a capital project or a
3capital program in the Long Range Transportation Plan is not a
4commitment or guarantee that the project or program shall receive
5any future funding.

6(2) For purposes of this subdivision, “subregion” shall have the
7same meaning as that term is defined in the Long Range
8Transportation Plan process in effect as of January 1, 2008.

9(g) The MTA may incur bonded indebtedness payable from the
10net revenues of the tax pursuant to the bond issuance provisions
11of this chapter and any successor act.

12(h) The tax authorized by this section shall be imposed pursuant
13to the Transactions and Use Tax Law (Part 1.6 (commencing with
14Section 7251) of Division 2 of the Revenue and Taxation Code),
15notwithstanding the combined rate limitation in Section 7251.1 of
16the Revenue and Taxation Code.



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