BILL ANALYSIS
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THIRD READING
Bill No: AB 6X
Author: Evans (D)
Amended: 12/18/08 in Senate
Vote: 21
WITHOUT REFERENCE TO COMMITTEE
SUBJECT : Budget Act of 2008: transportation
SOURCE : Author
DIGEST : This bill provides the necessary statutory
changes in the area of transportation in order to enact
revisions to the 2008 Budget Act.
ANALYSIS : This is the omnibus transportation budget
trailer bill which does the following:
1.Transportation-related tribal-gaming revenue . Directs
approximately $100 million per year for five years to the
General Fund from a specified portion of tribal-gaming
revenues. Existing law designates these specified
revenues as available for securitization with bond
proceeds directed to repay transportation loans. The
General Fund borrowed approximately $1.2 billion from the
Traffic Congestion Relief Fund in 2001 and 2002. These
loans occurred prior to the approval of Proposition 42
and annual payments are not required by Article XIXB of
the State Constitution. In 2004, AB 687 (Chapter 91)
enacted new tribal-state gaming compacts that direct a
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portion of the compact revenue to the repayment of these
loans through securitization of the revenue stream.
Ongoing litigation has stopped the state from moving
forward with the issuance of bonds, and in the interim,
about $350 million has been received in tribal payments.
This $350 million has been transferred for partial
repayment of these transportation loans. Currently,
about $879 million remains outstanding. This bill
directs tribal payments in 2008-09 through 2012-13 to the
General Fund. In 2013-14 tribal revenues would again be
available for securitization or direct
transportation-loan repayment.
2.Motor Vehicle Account "non-Article-XIX" revenue .
Transfers approximately $85 million annually from the
Motor Vehicle Account (MVA) to the General Fund. The
amount transferred annually would correspond to the
amount of revenue in the MVA derived from sources not
constrained by Article XIX of the State Constitution.
These "non-Article-XIX" revenues are derived from the
following sources: sale of documents; charges for
miscellaneous services to the public; escheat of
unclaimed checks; miscellaneous revenue; traffic
violations; and civil and criminal violations. Article
XIX directs revenue from fees and taxes imposed by the
State upon vehicles and their use and operation to state
administration and enforcement of laws regulating the
highways of the State, including enforcement of traffic
and vehicles laws by state agencies and the mitigation of
the associated environmental effects. All Article XIX
revenue would be maintained in the MVA for support of the
Department of the California Highway Patrol, the
Department of Motor Vehicles, and other ongoing and
related state administration.
3.Payment of Transportation-related General Obligation
Bonds . Allows the Director of Finance to use funds in
the Transportation Debt Service Fund, which were
transferred to the fund from the State Highway Account
pursuant to a Budget Act transfer or other legislation,
to be used to reimburse the General Fund to offset the
cost of debt service payments for transportation-related
general obligation bonds. An associated bill (either
ABX1 3 or SBX1 3) would transfer $378 million from the
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State Highway Account to the Transportation Debt Service
Fund for this purpose.
4.Contingent clause . This bill is contingent on the
enactment of the following bills of the 2009-10 First
Extraordinary Session of the Legislature: (1) AB 2 or SB
2; and (2) AB 9 or SB 9.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
DLW:nl 12/18/08 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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