Senate BillNo. 974


Introduced by Committee on Governance and Finance (Senators Hertzberg (Chair), Beall, Hernandez, Lara, Moorlach, Nguyen, and Pavley)

February 8, 2016


An act to amend Section 65302 of the Government Code, to amend Section 13822 of the Health and Safety Code, to amend Section 22161 of the Public Contract Code, to amend Section 11005.3 of the Revenue and Taxation Code, and to amend Section 2105 of the Streets and Highways Code, relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

SB 974, as introduced, Committee on Governance and Finance. Local government: omnibus.

(1) The Planning and Zoning Law requires the legislative body of a city or county to adopt a comprehensive, long-term general plan that includes various elements, including, among others, a safety element for the protection of the community from unreasonable risks associated with the effects of various geologic hazards, flooding, wildland and urban fires, and climate adaptation and resilience strategies. That law requires that the safety element be reviewed and updated, in the case of flooding and fire hazards, upon the next revision of the housing element after specified dates or, in the case of climate adaptation and resilience strategies, upon either the next revision of a local hazard mitigation plan after a specified date or on or before January 1, 2022, as applicable. That law also requires, after the initial revision of the safety element to address flooding, fires, and climate adaptation and resilience strategies, that for each subsequent revision the planning agency review and, if necessary, revise the safety element to identify new information that was not available during the previous revision of the safety element.

This bill would instead require a planning agency to review and revise the safety element to identify new information, as described above, only after to address flooding and fires.

(2) The Fire Protection District Law of 1987 establishes a procedure for the formation of fire protection districts, as specified. That law provides that a district may be formed by adoption of a resolution of application by the legislative body of any county or city which contains territory proposed to be included in the district.

This bill would make a technical change to these provisions.

(3) Existing law, until January 1, 2025, authorizes the Department of General Services, the Department of Corrections and Rehabilitation, and certain local agencies to use the design-build procurement process for specified public works. Existing law defines “best value” design-build procurement by local-agencies purposes to mean a value determined by evaluation of objective criteria that may include, but are not limited to, price, features, functions, life-cycle costs, experience, and past performance.

This bill would modify that definition to have the objective criteria evaluation, instead relate to those specific criteria

(4) The Vehicle License Fee Law establishes, in lieu of any ad valorem property tax upon vehicles, an annual license fee for any vehicle subject to registration in this state. Under existing law, the Controller was, untilnJuly 1, 2011, required to allocate vehicle license fee revenues in the Motor Vehicle License Fee Account in a specified order to, among others, each city that was incorporated before August 5, 2004. Existing law required the Controller to allocate these revenues in accordance with a specified formula based on, among other factors, the actual population, as defined, of the city. In the case of a city that incorporated on or after January 1, 1987, and before August 5, 2004, existing law also requires the Controller to determine the population of the city as provided based on, among other factors, the actual population, as defined, of the city.

This bill would make technical changes to these provisions.

(5) Existing law appropriates moneys in the Highway Users Tax Account for specified transportation purposes and provides for apportionment by the Controller of certain moneys, including revenues derived from taxes imposed by the Use Fuel Tax Law on the use of fuel, to cities and counties.

This bill would additionally specify that apportionment according to the above-described formula includes revenues derived from taxes imposed on the use of liquefied petroleum and natural gas pursuant to the Use Fuel Tax Law.

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

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

P3    1

SECTION 1.  

(a) This act shall be known, and may be cited,
2as the Local Government Omnibus Act of 2016.

3(b) The Legislature finds and declares that Californians want
4their governments to be run efficiently and economically and that
5public officials should avoid waste and duplication whenever
6possible. The Legislature further finds and declares that it desires
7to control its own costs by reducing the number of separate bills.
8Therefore, it is the intent of the Legislature in enacting this act to
9combine several minor, noncontroversial statutory changes relating
10to the common theme, purpose, and subject of local government
11into a single measure.

12

SEC. 2.  

Section 65302 of the Government Code, as amended
13by Section 1 of Chapter 608 of the Statutes of 2015, is amended
14to read:

15

65302.  

The general plan shall consist of a statement of
16development policies and shall include a diagram or diagrams and
17text setting forth objectives, principles, standards, and plan
18proposals. The plan shall include the following elements:

19(a) A land use element that designates the proposed general
20distribution and general location and extent of the uses of the land
21for housing, business, industry, open space, including agriculture,
22natural resources, recreation, and enjoyment of scenic beauty,
23education, public buildings and grounds, solid and liquid waste
24disposal facilities, and other categories of public and private uses
25of land. The location and designation of the extent of the uses of
26the land for public and private uses shall consider the identification
27of land and natural resources pursuant to paragraph (3) of
28subdivision (d). The land use element shall include a statement of
29the standards of population density and building intensity
30recommended for the various districts and other territory covered
31by the plan. The land use element shall identify and annually
P4    1review those areas covered by the plan that are subject to flooding
2identified by flood plain mapping prepared by the Federal
3Emergency Management Agency (FEMA) or the Department of
4Water Resources. The land use element shall also do both of the
5following:

6(1) Designate in a land use category that provides for timber
7production those parcels of real property zoned for timberland
8production pursuant to the California Timberland Productivity Act
9of 1982 (Chapter 6.7 (commencing with Section 51100) of Part 1
10of Division 1 of Title 5).

11(2) Consider the impact of new growth on military readiness
12activities carried out on military bases, installations, and operating
13and training areas, when proposing zoning ordinances or
14designating land uses covered by the general plan for land, or other
15territory adjacent to military facilities, or underlying designated
16military aviation routes and airspace.

17(A) In determining the impact of new growth on military
18readiness activities, information provided by military facilities
19shall be considered. Cities and counties shall address military
20impacts based on information from the military and other sources.

21(B) The following definitions govern this paragraph:

22(i) “Military readiness activities” mean all of the following:

23(I) Training, support, and operations that prepare the men and
24women of the military for combat.

25(II) Operation, maintenance, and security of any military
26installation.

27(III) Testing of military equipment, vehicles, weapons, and
28sensors for proper operation or suitability for combat use.

29(ii) “Military installation” means a base, camp, post, station,
30yard, center, homeport facility for any ship, or other activity under
31the jurisdiction of the United States Department of Defense as
32defined in paragraph (1) of subsection (g) of Section 2687 of Title
3310 of the United States Code.

34(b) (1) A circulation element consisting of the general location
35and extent of existing and proposed major thoroughfares,
36transportation routes, terminals, any military airports and ports,
37and other local public utilities and facilities, all correlated with the
38land use element of the plan.

39(2) (A) Commencing January 1, 2011, upon any substantive
40revision of the circulation element, the legislative body shall
P5    1modify the circulation element to plan for a balanced, multimodal
2transportation network that meets the needs of all users of streets,
3roads, and highways for safe and convenient travel in a manner
4that is suitable to the rural, suburban, or urban context of the
5general plan.

6(B) For purposes of this paragraph, “users of streets, roads, and
7highways” mean bicyclists, children, persons with disabilities,
8motorists, movers of commercial goods, pedestrians, users of public
9transportation, and seniors.

10(c) A housing element as provided in Article 10.6 (commencing
11with Section 65580).

12(d) (1) A conservation element for the conservation,
13development, and utilization of natural resources including water
14and its hydraulic force, forests, soils, rivers and other waters,
15harbors, fisheries, wildlife, minerals, and other natural resources.
16The conservation element shall consider the effect of development
17within the jurisdiction, as described in the land use element, on
18natural resources located on public lands, including military
19installations. That portion of the conservation element including
20waters shall be developed in coordination with any countywide
21water agency and with all district and city agencies, including
22flood management, water conservation, or groundwater agencies
23that have developed, served, controlled, managed, or conserved
24water of any type for any purpose in the county or city for which
25the plan is prepared. Coordination shall include the discussion and
26evaluation of any water supply and demand information described
27in Section 65352.5, if that information has been submitted by the
28water agency to the city or county.

29(2) The conservation element may also cover all of the
30following:

31(A) The reclamation of land and waters.

32(B) Prevention and control of the pollution of streams and other
33waters.

34(C) Regulation of the use of land in stream channels and other
35areas required for the accomplishment of the conservation plan.

36(D) Prevention, control, and correction of the erosion of soils,
37beaches, and shores.

38(E) Protection of watersheds.

39(F) The location, quantity and quality of the rock, sand, and
40 gravel resources.

P6    1(3) Upon the next revision of the housing element on or after
2January 1, 2009, the conservation element shall identify rivers,
3creeks, streams, flood corridors, riparian habitats, and land that
4may accommodate floodwater for purposes of groundwater
5recharge and stormwater management.

6(e) An open-space element as provided in Article 10.5
7(commencing with Section 65560).

8(f) (1) A noise element that shall identify and appraise noise
9problems in the community. The noise element shall analyze and
10quantify, to the extent practicable, as determined by the legislative
11body, current and projected noise levels for all of the following
12sources:

13(A) Highways and freeways.

14(B) Primary arterials and major local streets.

15(C) Passenger and freight online railroad operations and ground
16rapid transit systems.

17(D) Commercial, general aviation, heliport, helistop, and military
18airport operations, aircraft overflights, jet engine test stands, and
19all other ground facilities and maintenance functions related to
20airport operation.

21(E) Local industrial plants, including, but not limited to, railroad
22classification yards.

23(F) Other ground stationary noise sources, including, but not
24limited to, military installations, identified by local agencies as
25contributing to the community noise environment.

26(2) Noise contours shall be shown for all of these sources and
27stated in terms of community noise equivalent level (CNEL) or
28day-night average sound level (Ldn). The noise contours shall be
29prepared on the basis of noise monitoring or following generally
30accepted noise modeling techniques for the various sources
31identified in paragraphs (1) to (6), inclusive.

32(3) The noise contours shall be used as a guide for establishing
33a pattern of land uses in the land use element that minimizes the
34exposure of community residents to excessive noise.

35(4) The noise element shall include implementation measures
36and possible solutions that address existing and foreseeable noise
37problems, if any. The adopted noise element shall serve as a
38guideline for compliance with the state’s noise insulation standards.

39(g) (1) A safety element for the protection of the community
40from any unreasonable risks associated with the effects of
P7    1seismically induced surface rupture, ground shaking, ground
2failure, tsunami, seiche, and dam failure; slope instability leading
3to mudslides and landslides; subsidence; liquefaction; and other
4seismic hazards identified pursuant to Chapter 7.8 (commencing
5with Section 2690) of Division 2 of the Public Resources Code,
6and other geologic hazards known to the legislative body; flooding;
7and wildland and urban fires. The safety element shall include
8mapping of known seismic and other geologic hazards. It shall
9also address evacuation routes, military installations, peakload
10water supply requirements, and minimum road widths and
11clearances around structures, as those items relate to identified fire
12and geologic hazards.

13(2) The safety element, upon the next revision of the housing
14element on or after January 1, 2009, shall also do the following:

15(A) Identify information regarding flood hazards, including,
16but not limited to, the following:

17(i) Flood hazard zones. As used in this subdivision, “flood
18hazard zone” means an area subject to flooding that is delineated
19as either a special hazard area or an area of moderate or minimal
20hazard on an official flood insurance rate map issued by the Federal
21Emergency Management Agency (FEMA). The identification of
22a flood hazard zone does not imply that areas outside the flood
23hazard zones or uses permitted within flood hazard zones will be
24free from flooding or flood damage.

25(ii) National Flood Insurance Program maps published by
26FEMA.

27(iii) Information about flood hazards that is available from the
28United States Army Corps of Engineers.

29(iv) Designated floodway maps that are available from the
30Central Valley Flood Protection Board.

31(v) Dam failure inundation maps prepared pursuant to Section
328589.5 that are available from the Office of Emergency Services.

33(vi) Awareness Floodplain Mapping Program maps and 200-year
34flood plain maps that are or may be available from, or accepted
35by, the Department of Water Resources.

36(vii) Maps of levee protection zones.

37(viii) Areas subject to inundation in the event of the failure of
38project or nonproject levees or floodwalls.

39(ix) Historical data on flooding, including locally prepared maps
40of areas that are subject to flooding, areas that are vulnerable to
P8    1flooding after wildfires, and sites that have been repeatedly
2damaged by flooding.

3(x) Existing and planned development in flood hazard zones,
4including structures, roads, utilities, and essential public facilities.

5(xi) Local, state, and federal agencies with responsibility for
6flood protection, including special districts and local offices of
7emergency services.

8(B) Establish a set of comprehensive goals, policies, and
9objectives based on the information identified pursuant to
10subparagraph (A), for the protection of the community from the
11unreasonable risks of flooding, including, but not limited to:

12(i) Avoiding or minimizing the risks of flooding to new
13development.

14(ii) Evaluating whether new development should be located in
15flood hazard zones, and identifying construction methods or other
16methods to minimize damage if new development is located in
17flood hazard zones.

18(iii) Maintaining the structural and operational integrity of
19essential public facilities during flooding.

20(iv) Locating, when feasible, new essential public facilities
21outside of flood hazard zones, including hospitals and health care
22facilities, emergency shelters, fire stations, emergency command
23centers, and emergency communications facilities or identifying
24construction methods or other methods to minimize damage if
25these facilities are located in flood hazard zones.

26(v) Establishing cooperative working relationships among public
27agencies with responsibility for flood protection.

28(C) Establish a set of feasible implementation measures designed
29to carry out the goals, policies, and objectives established pursuant
30to subparagraph (B).

31(3) Upon the next revision of the housing element on or after
32January 1, 2014, the safety element shall be reviewed and updated
33as necessary to address the risk of fire for land classified as state
34responsibility areas, as defined in Section 4102 of the Public
35Resources Code, and land classified as very high fire hazard
36severity zones, as defined in Section 51177. This review shall
37consider the advice included in the Office of Planning and
38Research’s most recent publication of “Fire Hazard Planning,
39General Plan Technical Advice Series” and shall also include all
40of the following:

P9    1(A) Information regarding fire hazards, including, but not limited
2to, all of the following:

3(i) Fire hazard severity zone maps available from the Department
4of Forestry and Fire Protection.

5(ii)  Any historical data on wildfires available from local
6agencies or a reference to where the data can be found.

7(iii) Information about wildfire hazard areas that may be
8available from the United States Geological Survey.

9(iv) General location and distribution of existing and planned
10uses of land in very high fire hazard severity zones and in state
11responsibility areas, including structures, roads, utilities, and
12essential public facilities. The location and distribution of planned
13uses of land shall not require defensible space compliance measures
14required by state law or local ordinance to occur on publicly owned
15lands or open space designations of homeowner associations.

16(v) Local, state, and federal agencies with responsibility for fire
17protection, including special districts and local offices of
18emergency services.

19(B) A set of goals, policies, and objectives based on the
20information identified pursuant to subparagraph (A) for the
21protection of the community from the unreasonable risk of wildfire.

22(C) A set of feasible implementation measures designed to carry
23out the goals, policies, and objectives based on the information
24identified pursuant to subparagraph (B) including, but not limited
25to, all of the following:

26(i) Avoiding or minimizing the wildfire hazards associated with
27new uses of land.

28(ii) Locating, when feasible, new essential public facilities
29outside of high fire risk areas, including, but not limited to,
30hospitals and health care facilities, emergency shelters, emergency
31command centers, and emergency communications facilities, or
32identifying construction methods or other methods to minimize
33damage if these facilities are located in a state responsibility area
34or very high fire hazard severity zone.

35(iii) Designing adequate infrastructure if a new development is
36located in a state responsibility area or in a very high fire hazard
37severity zone, including safe access for emergency response
38vehicles, visible street signs, and water supplies for structural fire
39suppression.

P10   1(iv) Working cooperatively with public agencies with
2responsibility for fire protection.

3(D) If a city or county has adopted a fire safety plan or document
4separate from the general plan, an attachment of, or reference to,
5a city or county’s adopted fire safety plan or document that fulfills
6commensurate goals and objectives and contains information
7required pursuant to this paragraph.

8(4) Upon the next revision of a local hazard mitigation plan,
9adopted in accordance with the federal Disaster Mitigation Act of
102000 (Public Law 106-390), on or after January 1, 2017, or, if a
11local jurisdiction has not adopted a local hazard mitigation plan,
12beginning on or before January 1, 2022, the safety element shall
13be reviewed and updated as necessary to address climate adaptation
14and resiliency strategies applicable to the city or county. This
15review shall consider advice provided in the Office of Planning
16and Research’s General Plan Guidelines and shall include all of
17the following:

18(A) (i) A vulnerability assessment that identifies the risks that
19climate change poses to the local jurisdiction and the geographic
20areas at risk from climate change impacts, including, but not limited
21to, an assessment of how climate change may affect the risks
22addressed pursuant to paragraphs (2) and (3).

23(ii) Information that may be available from federal, state,
24regional, and local agencies that will assist in developing the
25vulnerability assessment and the adaptation policies and strategies
26required pursuant to subparagraph (B), including, but not limited
27to, all of the following:

28(I) Information from the Internet-based Cal-Adapt tool.

29(II) Information from the most recent version of the California
30Adaptation Planning Guide.

31(III) Information from local agencies on the types of assets,
32resources, and populations that will be sensitive to various climate
33change exposures.

34(IV) Information from local agencies on their current ability to
35deal with the impacts of climate change.

36(V) Historical data on natural events and hazards, including
37locally prepared maps of areas subject to previous risk, areas that
38are vulnerable, and sites that have been repeatedly damaged.

P11   1(VI) Existing and planned development in identified at-risk
2areas, including structures, roads, utilities, and essential public
3facilities.

4(VII) Federal, state, regional, and local agencies with
5responsibility for the protection of public health and safety and
6the environment, including special districts and local offices of
7emergency services.

8(B) A set of adaptation and resilience goals, policies, and
9objectives based on the information specified in subparagraph (A)
10for the protection of the community.

11(C) A set of feasible implementation measures designed to carry
12out the goals, policies, and objectives identified pursuant to
13subparagraph (B) including, but not limited to, all of the following:

14(i) Feasible methods to avoid or minimize climate change
15impacts associated with new uses of land.

16(ii) The location, when feasible, of new essential public facilities
17outside of at-risk areas, including, but not limited to, hospitals and
18health care facilities, emergency shelters, emergency command
19centers, and emergency communications facilities, or identifying
20construction methods or other methods to minimize damage if
21these facilities are located in at-risk areas.

22(iii) The designation of adequate and feasible infrastructure
23located in an at-risk area.

24(iv) Guidelines for working cooperatively with relevant local,
25regional, state, and federal agencies.

26(v) The identification of natural infrastructure that may be used
27in adaptation projects, where feasible. Where feasible, the plan
28shall use existing natural features and ecosystem processes, or the
29restoration of natural features and ecosystem processes, when
30developing alternatives for consideration. For the purposes of this
31clause, “natural infrastructure” means the preservation or
32restoration of ecological systems, or utilization of engineered
33systems that use ecological processes, to increase resiliency to
34climate change, manage other environmental hazards, or both.
35This may include, but is not limited to, floodplain and wetlands
36restoration or preservation, combining levees with restored natural
37systems to reduce flood risk, and urban tree planting to mitigate
38high heat days.

39(D) (i) If a city or county has adopted the local hazard
40mitigation plan, or other climate adaptation plan or document that
P12   1fulfills commensurate goals and objectives and contains the
2information required pursuant to this paragraph, separate from the
3general plan, an attachment of, or reference to, the local hazard
4mitigation plan or other climate adaptation plan or document.

5(ii) Cities or counties that have an adopted hazard mitigation
6plan, or other climate adaptation plan or document that substantially
7 complies with this section, or have substantially equivalent
8provisions to this subdivision in their general plans, may use that
9information in the safety element to comply with this subdivision,
10and shall summarize and incorporate by reference into the safety
11element the other general plan provisions, climate adaptation plan
12or document, specifically showing how each requirement of this
13subdivision has been met.

14(5) After the initial revision of the safety element pursuant to
15paragraphsbegin delete (2), (3), and (4)end deletebegin insert (2) and (3),end insert upon each revision of the
16housing element, the planning agency shall review and, if
17necessary, revise the safety element to identify new information
18that was not available during the previous revision of the safety
19element.

20(6) Cities and counties that have flood plain management
21ordinances that have been approved by FEMA that substantially
22comply with this section, or have substantially equivalent
23provisions to this subdivision in their general plans, may use that
24information in the safety element to comply with this subdivision,
25and shall summarize and incorporate by reference into the safety
26element the other general plan provisions or the flood plain
27ordinance, specifically showing how each requirement of this
28subdivision has been met.

29(7) Prior to the periodic review of its general plan and prior to
30preparing or revising its safety element, each city and county shall
31consult the California Geological Survey of the Department of
32Conservation, the Central Valley Flood Protection Board, if the
33city or county is located within the boundaries of the Sacramento
34and San Joaquin Drainage District, as set forth in Section 8501 of
35the Water Code, and the Office of Emergency Services for the
36purpose of including information known by and available to the
37department, the agency, and the board required by this subdivision.

38(8) To the extent that a county’s safety element is sufficiently
39detailed and contains appropriate policies and programs for
40adoption by a city, a city may adopt that portion of the county’s
P13   1safety element that pertains to the city’s planning area in
2satisfaction of the requirement imposed by this subdivision.

3

SEC. 3.  

Section 13822 of the Health and Safety Code is
4amended to read:

5

13822.  

Once the chief petitioners have filed a sufficient petition
6or a legislative body has filed a resolutionbegin delete orend deletebegin insert ofend insert application, the
7local agency formation commission shall proceed pursuant to
8Chapter 5 (commencing with Section 56825) of Part 3 of Division
93 of Title 5 of the Government Code.

10

SEC. 4.  

Section 22161 of the Public Contract Code, as amended
11by Section 2 of Chapter 715 of the Statutes of 2015, is amended
12to read:

13

22161.  

For purposes of this chapter, the following definitions
14apply:

15(a) “Best value” means a value determined by evaluation of
16objective criteria thatbegin delete may include, but not be limitedend deletebegin insert relateend insert to
17price, features, functions, life-cycle costs, experience, and past
18performance. A best value determination may involve the selection
19of the lowest cost proposal meeting the interests of the local agency
20and meeting the objectives of the project, selection of the best
21proposal for a stipulated sum established by the procuring agency,
22or a tradeoff between price and other specified factors.

23(b) “Construction subcontract” means each subcontract awarded
24by the design-build entity to a subcontractor that will perform work
25or labor or render service to the design-build entity in or about the
26construction of the work or improvement, or a subcontractor
27licensed by the State of California that, under subcontract to the
28design-build entity, specially fabricates and installs a portion of
29the work or improvement according to detailed drawings contained
30in the plans and specifications produced by the design-build team.

31(c) “Design-build” means a project delivery process in which
32both the design and construction of a project are procured from a
33single entity.

34(d) “Design-build entity” means a corporation, limited liability
35company, partnership, joint venture, or other legal entity that is
36able to provide appropriately licensed contracting, architectural,
37and engineering services as needed pursuant to a design-build
38contract.

39(e) “Design-build team” means the design-build entity itself
40and the individuals and other entities identified by the design-build
P14   1entity as members of its team. Members shall include the general
2contractor and, if utilized in the design of the project, all electrical,
3mechanical, and plumbing contractors.

4(f) “Local agency” means the following:

5(1) A city, county, or city and county.

6(2) A special district that operates wastewater facilities, solid
7waste management facilities, water recycling facilities, or fire
8protection facilities.

9(3) Any transit district, included transit district, municipal
10operator, included municipal operator, any consolidated agency,
11as described in Section 132353.1 of the Public Utilities Code, any
12joint powers authority formed to provide transit service, any county
13transportation commission created pursuant to Section 130050 of
14the Public Utilities Code, or any other local or regional agency,
15responsible for the construction of transit projects.

16(4) The San Diego Association of Governments, as referenced
17in the San Diego Regional Transportation Consolidation Act
18(Chapter 3 (commencing with Section 132350) of Division 12.7
19of the Public Utilities Code).

20(g) (1) For a local agency defined in paragraph (1) of
21subdivision (f), “project” means the construction of a building or
22buildings and improvements directly related to the construction
23of a building or buildings, county sanitation wastewater treatment
24 facilities, and park and recreational facilities, but does not include
25the construction of other infrastructure, including, but not limited
26to, streets and highways, public rail transit, or water resources
27facilities and infrastructure. For a local agency defined in paragraph
28(1) of subdivision (f) that operates wastewater facilities, solid waste
29management facilities, or water recycling facilities, “project” also
30means the construction of regional and local wastewater treatment
31facilities, regional and local solid waste facilities, or regional and
32local water recycling facilities.

33(2) For a local agency defined in paragraph (2) of subdivision
34(f), “project” means the construction of regional and local
35wastewater treatment facilities, regional and local solid waste
36facilities, regional and local water recycling facilities, or fire
37protection facilities.

38(3) For a local agency defined in paragraph (3) of subdivision
39(f), “project” means a transit capital project that begins a project
40solicitation on or after January 1, 2015. A “project,” as defined by
P15   1this paragraph, that begins the solicitation process before January
21, 2015, is subject to Article 6.8 (commencing with Section
320209.5) of Chapter 1. “Project,” as defined by this paragraph,
4does not include state highway construction or local street and
5road projects.

6(4) For a local agency defined in paragraph (4) of subdivision
7(f), “project” has the same meaning as in paragraph (3), and in
8addition shall include development projects adjacent, or physically
9or functionally related, to transit facilities developed or jointly
10developed by the local agency.

11

SEC. 5.  

Section 11005.3 of the Revenue and Taxation Code
12 is amended to read:

13

11005.3.  

(a) In the case of a city that incorporated on or after
14January 1, 1987, and before August 5, 2004, the Controller shall
15determine that the population of the city for its first 10 full fiscal
16years, and any portion of the first year in which the incorporation
17is effective if less than a full fiscal year, is the greater of either:

18(1) The number of registered voters in the city multiplied by
19three. The number of registered voters shall be calculated as of the
20effective date of the incorporation of the city.

21(2) The actual population, as defined in subdivisionbegin delete (e)end deletebegin insert (d)end insert.

22(b) In the case of a city that incorporated on or after January 1,
231987, and before August 5, 2004, and for which the application
24for incorporation was filed with the executive officer of the local
25agency formation commission pursuant to subdivision (a) of
26Section 56828 of the Government Code on or after January 1,
271991, the Controller shall determine that the population of the city
28for its first seven full fiscal years, and any portion of the first year
29in which the incorporation is effective if less than a full fiscal year,
30is the greater of either:

31(1) The number of registered voters in the city multiplied by
32three. The number of registered voters shall be calculated as of the
33effective date of the incorporation of the city.

34(2) The actual population, as defined in subdivisionbegin delete (e).end deletebegin insert (d).end insert

35(c) In the case of a city that was incorporated from
36unincorporated territory after August 5, 2004, the Controller shall
37determine the population of the city as follows:

38(1) For its first 12 months, 150 percent of the city’s actual
39population.

P16   1(2) For its 13th through 24th months, 140 percent of the city’s
2actual population.

3(3) For its 25th through 36th months, 130 percent of the city’s
4actual population.

5(4) For its 37th through 48th months, 120 percent of the city’s
6actual population.

7(5) For its 49th through 60th months, 110 percent of the city’s
8actual population.

9(6) After its 60th month, the city’s actual population.

10(d) For purposes of this section, “actual population” means the
11population determined by the last federal decennial or special
12census, or a subsequent census validated by the Demographic
13Research Unit of the Department of Finance or subsequent estimate
14prepared pursuant to Section 2107.2 of the Streets and Highways
15Code.

16(e)  In the case of unincorporated territory being annexed to a
17city, during the 10-year, seven-year, or five-year period following
18incorporation, as the case may be, subsequent to the last federal
19census, or a subsequent census validated by the Demographic
20Research Unit of the Department of Finance, the unit shall
21determine the population of the annexed territory by the use of
22any federal decennial or special census or any estimate prepared
23 pursuant to Section 2107.2 of the Streets and Highways Code. The
24population of the annexed territory as determined by the
25Demographic Research Unit shall be added to the city’s population
26as previously determined by the Controller pursuant to paragraph
27(1) or (2) of subdivision (a), paragraph (1) or (2) of subdivision
28(b), or subdivision (c), as applicable.

29(f) After the 10-year, seven-year, or five-year period following
30incorporation, as the case may be, the Controller shall determine
31the population of the city as the city’s actual population, as defined
32in subdivision (d).

33(g) The amendments made to this section by the act adding this
34subdivision shall not apply with respect to either of the following:

35(1) Any city that has adopted an ordinance or resolution,
36approved a ballot measure, or is subject to a consent decree or
37court order, that annually limits the number of housing units that
38may be constructed within the city.

39(2) Any city that has not prepared and adopted a housing element
40in compliance with Section 65585 of the Government Code.

P17   1(h) This section shall become operative July 1, 1991.

2

SEC. 6.  

Section 2105 of the Streets and Highways Code is
3amended to read:

4

2105.  

Notwithstanding Section 13340 of the Government Code,
5in addition to the apportionments prescribed by Sections 2104,
62106, and 2107, from the revenues derived from a per gallon tax
7imposed pursuant to Section 7360 of the Revenue and Taxation
8Code, and a per gallon tax imposed pursuant tobegin delete Section 8651end delete
9begin insert Sections 8651, 8651.5, and 8651.6end insert of the Revenue and Taxation
10Code, and a per gallon tax imposed pursuant to Sections 60050
11and 60115 of the Revenue and Taxation Code, the following
12apportionments shall be made:

13(a) A sum equal to 1.035 cents ($0.01035) per gallon from the
14tax under Section 7360 of the Revenue and Taxation Code, 11.5
15percent of any per gallon tax in excess of nine cents ($0.09) per
16gallon underbegin delete Section 8651end deletebegin insert Sections 8651, 8651.5, and 8651.6end insert of
17the Revenue and Taxation Code, and 1.035 cents ($0.01035) per
18gallon from the tax under Sections 60050 and 60115 of the
19Revenue and Taxation Code, shall be apportioned among the
20counties, including a city and county.

21The amount of apportionment to each county, including a city
22and county, during a fiscal year shall be calculated as follows:

23(1) One million dollars ($1,000,000) for apportionment to all
24counties, including a city and county, in proportion to each county’s
25receipts during the prior fiscal year under Sections 2104 and 2106.

26(2) One million dollars ($1,000,000) for apportionment to all
27counties, including a city and county, as follows:

28(A) Seventy-five percent in the proportion that the number of
29fee-paid and exempt vehicles which are registered in the county
30bears to the number of fee-paid and exempt vehicles registered in
31the state.

32(B) Twenty-five percent in the proportion that the number of
33miles of maintained county roads in the county bears to the miles
34of maintained county roads in the state.

35(3) For each county, determine its factor which is the higher
36amount calculated pursuant to paragraph (1) or (2) divided by the
37sum of the higher amounts for all of the counties.

38(4) The amount to be apportioned to each county is equal to its
39factor multiplied by the amount available for apportionment.

P18   1(b) A sum equal to 1.035 cents ($0.01035) per gallon from the
2tax under Section 7360 of the Revenue and Taxation Code, 11.5
3percent of any per gallon tax in excess of nine cents ($0.09) per
4gallon under Section 8651 of the Revenue and Taxation Code, and
51.035 cents ($0.01035) per gallon from the tax under Sections
660050 and 60115 of the Revenue and Taxation Code, shall be
7apportioned to cities, including a city and county, in the proportion
8that the total population of the city bears to the total population of
9all the cities in the state.

10(c) (1) Transfers of revenues from the Highway Users Tax
11Account to counties or cities pursuant to this section collected
12during the months of March, April, May, June, and July of 2008,
13shall be made with the transfer of August 2008 revenues in
14September of 2008. This suspension shall not apply to a county
15with a population of less than 40,000.

16(2) For the purpose of meeting the cash obligations associated
17with ongoing budgeted costs, a city or county may make use of
18any cash balance in the city account that is designated for the
19receipt of state funds allocated for local streets and roads or the
20county road fund, including that resulting from the receipt of funds
21pursuant to the Highway Safety, Traffic Reduction, Air Quality,
22and Port Security Bond Act of 2006 (Chapter 12.49 (commencing
23with Section 8879.20) of Division 1 of Title 2 of the Government
24Code (hereafter bond act)) for local streets and roads maintenance,
25during the period of this suspension, without the use of this cash
26being reflected as an expenditure of bond act funds, provided the
27cash is replaced once this suspension is repaid in September of
282008. Counties and cities may accrue the revenue received in
29 September 2008 as repayment of these suspensions for the months
30of April, May, and June of 2008 back to the 2007-08 fiscal year.
31Nothing in this paragraph shall change the fact that expenditures
32must be accrued and reflected from the appropriate funding sources
33for which the moneys were received and meet all the requirements
34of those funding sources.

35(d) (1) The transfer of revenues from the Highway Users Tax
36Account to counties or cities pursuant to this section collected
37during the months of January, February, and March 2009 shall be
38made with the transfer of April 2009 revenues in May 2009.

39(2) For the purpose of meeting the cash obligations associated
40with ongoing budgeted costs, a city or county may make use of
P19   1any cash balance in the city account that is designated for the
2receipt of state funds allocated for local streets and roads or the
3county road fund, including that resulting from the receipt of funds
4pursuant to the Highway Safety, Traffic Reduction, Air Quality,
5and Port Security Bond Act of 2006 (Chapter 12.49 (commencing
6with Section 8879.20) of Division 1 of Title 2 of the Government
7Code (bond act)) for local streets and roads maintenance, during
8the period of this suspension, and the use of this cash shall not be
9considered as an expenditure of bond act funds, if the cash is
10replaced when the payments that are suspended pursuant to this
11subdivision are repaid in May 2009.

12(3) This subdivision shall not affect any requirement that an
13expenditure is required to be accrued and reflected from the
14appropriate funding source for which the money was received and
15to meet all the requirements of its funding source.



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