BILL ANALYSIS
AB 6 X1
Page 1
( Without Reference to File )
CONCURRENCE IN SENATE AMENDMENTS
AB 6 X1 (Evans)
As Amended December 18, 2008
Majority vote
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|ASSEMBLY: | |(December 8, |SENATE: | |(December 18, |
| | |2008) | | |2008) |
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(vote not relevant) (vote not available)
SUMMARY : Provides statutory changes for the transportation area
of the Budget.
The Senate amendments delete the Assembly version of this bill
and instead:
1)Direct approximately $100 million per year for five years to
the General Fund (GF) 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 GF
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 portion of 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 would direct tribal payments in
2008-09 through 2012-13 to the GF. In 2013-14 tribal revenues
would again be available for securitization or direct
transportation-loan repayment.
2)Transfer approximately $85 million annually from the Motor
Vehicle Account (MVA) to the GF. The amount transferred
annually would correspond to the amount of revenue in the MVA
derived from sources not constrained by Article XIX of the
AB 6 X1
Page 2
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 (DMV), and other ongoing and
related state administration.
3)Allow 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
GF to offset the cost of debt service payments for
transportation-related general obligation bonds. An
associated bill (either AB 3 X1 or SB 3 X1) would transfer
$378 million from the State Highway Account to the
Transportation Debt Service Fund for this purpose.
4)Include a clause making this bill contingent on the enactment
of AB 2 or SB 2 X1; and AB 9 or SB 9 X1.
AS PASSED BY THE ASSEMBLY , this bill was a vehicle to enact
statutory changes relating to the 2008 Budget Act.
Analysis Prepared by : Chris Woods/Adam Dondro / BUDGET /
(916) 319-2099
FN: 0000039