BILL NUMBER: ABX1 6	ENROLLED
	BILL TEXT

	PASSED THE SENATE  DECEMBER 18, 2008
	PASSED THE ASSEMBLY  DECEMBER 18, 2008
	AMENDED IN SENATE  DECEMBER 18, 2008

INTRODUCED BY   Assembly Member Evans

                        DECEMBER 8, 2008

   An act to amend Section 16965 of, and to add Section 63048.66 to,
the Government Code, and to add Section 42278 to the Vehicle Code,
relating to state finances.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 6, Evans. State finances.
   (1) Existing law creates the Transportation Debt Service Fund in
the State Treasury for the purpose, among other things, of using
transportation revenues for the payment of debt service on
transportation bonds and to reimburse the General Fund for past debt
service payments on transportation bonds.
   This bill would revise the provisions governing the Transportation
Debt Service Fund to authorize the Director of Finance with moneys
transferred to that fund pursuant to an annual Budget Act or other
statute from the State Highway Account in the State Transportation
Fund, to reimburse the General Fund any amount necessary to offset
the cost of debt service made in any fiscal year for
transportation-related general obligation bond expenditures.
   (2) Existing federal law, the Indian Gaming Regulatory Act of
1988, provides for the negotiation and execution of tribal-state
gaming compacts for the purpose of authorizing certain types of
gaming on Indian lands within a state. The California Constitution
authorizes the Governor to negotiate and conclude compacts, subject
to ratification by the Legislature. Existing law ratifies a number of
tribal-state gaming compacts between the State of California and
specified Indian tribes. Existing law authorizes the Infrastructure
and Economic Development Bank, upon a filing by the Director of
Finance with the bank of a list of specified amended tribal compacts
and compact assets, to sell for, and on behalf of, the state all or
any portion of those compact assets to a special purpose trust.
Existing law authorizes the special purpose trust to issue bonds
secured by those compact assets.
   This bill would provide that the portion of the above compact
assets that are timely deposited or are due for deposit in a
specified fund between July 1, 2008, and June 30, 2013, shall not be
available for the purpose described above. The bill would require the
Director of Finance to determine the portion of those compact assets
attributable to each fiscal year. The bill would allow the Director
of Finance to direct the Controller, by separate order applicable to
the assets for each fiscal year, to transfer the compact assets
attributable to that fiscal year to the General Fund.
   (3) Article XIX of the California Constitution requires, among
other things, that revenues from fees and taxes imposed by the state
upon vehicles or their use or operation, over and above the costs of
collection and any refunds authorized by law, be used for the state
administration and enforcement of laws regulating the use, operation,
or registration of vehicles used upon the public streets and
highways of this state, including the enforcement of traffic and
vehicle laws by state agencies and the mitigation of the
environmental effects of motor vehicle operation due to air and sound
emissions.
   Under existing statutory law, all funds received by the Department
of Motor Vehicles are required to be deposited in the Motor Vehicle
Account in the State Transportation Fund. After payments for refunds,
administration, and enforcement, appropriations for the support of
the Department of Motor Vehicles, the Department of the California
Highway Patrol, and other agencies are made from the account. Funds
not needed to meet those appropriations are transferred to the State
Highway Account in the State Transportation Fund.
   This bill would, notwithstanding any other provision of law,
authorize the Legislature, upon appropriation, to transfer funds in
the Motor Vehicle Account that are not subject to Article XIX of the
California Constitution for any transportation purpose authorized by
statute and would require, not later than June 30, 2009, upon the
order of the Director of Finance, that the Controller transfer
$85,000,000 from the Motor Vehicle Account in the State
Transportation Fund to the General Fund.
   The bill would also require the Director of Finance, commencing
with the 2009-10 fiscal year, to estimate the amount of revenues from
funds not subject to Article XIX of the California Constitution and
to order the Controller to transfer that amount from the Motor
Vehicle Account in the State Transportation Fund to the General Fund.

   (4) This act is contingent upon the enactment of either AB 2 or SB
2 and either AB 9 or SB 9 of the 2009-10 First Extraordinary
Session.
   (5) The California Constitution authorizes the Governor to declare
a fiscal emergency and to call the Legislature into special session
for that purpose. The Governor issued a proclamation declaring a
fiscal emergency, and calling a special session for this purpose, on
December 1, 2008.
   This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on December 1, 2008,
pursuant to the California Constitution.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 16965 of the Government Code is amended to
read:
   16965.  (a) The Transportation Debt Service Fund is hereby created
in the State Treasury. Moneys in the fund shall, among other things,
as provided in this section, be dedicated to payment of debt service
on bonds including bonds issued pursuant to the Clean Air and
Transportation Improvement Act of 1990 (Part 11.5 (commencing with
Section 99600) of Division 10 of the Public Utilities Code), the
Passenger Rail and Clean Air Bond Act of 1990 (Chapter 17 (commencing
with Section 2701) of Division 3 of the Streets and Highways Code),
and the Seismic Retrofit Bond Act of 1996 (Chapter 12.48 (commencing
with Section 8879) of Division 1 of Title 2). If the moneys in the
fund are insufficient to pay the balance of the debt consistent with
existing obligations, the General Fund will be used to pay the
balance of any debt service.
   (b) (1) From moneys transferred to the fund pursuant to
subdivision (b) of Section 7103 of the Revenue and Taxation Code, the
Director of Finance is hereby authorized to reimburse the General
Fund for up to three hundred thirty-nine million two hundred
eighty-nine thousand three hundred forty-five dollars ($339,289,345)
for the purpose of offsetting the cost of debt service payments made
from the General Fund during the 2007-08 fiscal year for public
transportation-related general obligation bond expenditures in the
following amounts:
   (A) Clean Air and Transportation Improvement Act of 1990, one
hundred twenty-three million nine hundred seventy-three thousand four
hundred ninety-three dollars ($123,973,493).
   (B) Passenger Rail and Clean Air Bond Act of 1990, seventy million
nine hundred eighty-three thousand three hundred sixty-three dollars
($70,983,363).
   (C) Seismic Retrofit Bond Act of 1996, one hundred forty-four
million three hundred thirty-two thousand four hundred eighty-nine
dollars ($144,332,489).
   (2) From moneys transferred to the fund pursuant to subdivision
(b) of Section 7103 of the Revenue and Taxation Code, the Director of
Finance is hereby authorized to reimburse the General Fund in the
2007-08 fiscal year for two hundred million dollars ($200,000,000)
for the purpose of offsetting the cost of debt service payments made
in prior fiscal years from the General Fund for public
transportation-related general obligation bond expenditures.
   (c) From moneys transferred to the fund pursuant to subdivision
(c) of Section 7103 of the Revenue and Taxation Code, the Director of
Finance is hereby authorized to reimburse the General Fund any
amount necessary to offset the cost of debt service payments made
from the General Fund during any fiscal year for
transportation-related general obligation bond expenditures.
   (d) From moneys transferred to the fund pursuant to an annual
Budget Act or other statute from the State Highway Account in the
State Transportation Fund, the Director of Finance is hereby
authorized to reimburse the General Fund any amount necessary to
offset the cost of debt service payments made from the General Fund
during any fiscal year for transportation-related general obligation
bond expenditures.
  SEC. 2.  Section 63048.66 is added to the Government Code, to read:

   63048.66.  (a) Notwithstanding Section 63048.65 or any other
provision of this article, compact assets that are subject to
designation by the Director of Finance for sale pursuant to
subdivision (a) of Section 63048.65 and that are timely deposited or
are due for deposit in the Special Deposit Fund on or after July 1,
2008, and on or before June 30, 2013, shall not be available for the
purpose of Section 63048.65.
   (b) The Director of Finance shall determine the portion of the
compact assets described in subdivision (a) that are attributable to
payments made for each fiscal year. The Director of Finance may
direct the Controller, by separate order applicable to the assets for
each fiscal year, to transfer the compact assets attributable to
that fiscal year from the Special Deposit Fund to the General Fund.
   (c) Upon order of the Director of Finance, the Controller shall
transfer the compact assets as provided in subdivision (b).
  SEC. 3.  Section 42278 is added to the Vehicle Code, to read:
   42278.  (a) Notwithstanding other provisions of this chapter or
any other provision of law, money deposited into the account that is
not subject to Article XIX of the California Constitution, including,
but not limited to, money that is derived from the sale of
documents, charges for miscellaneous services to the public, escheat
of unclaimed checks, miscellaneous revenue, traffic violations, and
civil and criminal violations, may be used for any transportation
purpose authorized by statute, upon appropriation by the Legislature,
or, after transfer to another fund, upon appropriation by the
Legislature from that fund.
   (b) Not later than June 30, 2009, upon the order of the Director
of Finance, the Controller shall transfer eighty-five million dollars
($85,000,000) from the Motor Vehicle Account in the State
Transportation Fund to the General Fund.
   (c) Commencing with the 2009-10 fiscal year, the Director of
Finance shall estimate the amount of revenues for that fiscal year
specified in subdivision (a) as revenues not subject to Article XIX
of the California Constitution. Upon the order of the Director of
Finance, the Controller shall transfer this amount from the Motor
Vehicle Account in the State Transportation Fund to the General Fund.

  SEC. 4.  This act shall go into effect only if either of the bills
listed in subdivision (a) and either of the bills listed in
subdivision (b) of the 2009-10 First Extraordinary Session are
chaptered:
   (a) Assembly Bill 2 or Senate Bill 2.
   (b) Assembly Bill 9 or Senate Bill 9.
  SEC. 5.  This act addresses the fiscal emergency declared by the
Governor by proclamation on December 1, 2008, pursuant to subdivision
(f) of Section 10 of Article IV of the California Constitution.