BILL NUMBER: AB 2663	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 28, 2010
	AMENDED IN ASSEMBLY  APRIL 22, 2010

INTRODUCED BY   Assembly Member Bonnie Lowenthal
   (Coauthor: Senator Lowenthal)

                        FEBRUARY 19, 2010

   An act to add Article 7.1 (commencing with Section 53834) to
Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code,
relating to local government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2663, as amended, Bonnie Lowenthal. Local government: federal
fiscal year.
   Existing state constitutional law requires specified revenues from
the ad valorem tax on real property, the Highway Users Tax Account,
the Transportation Investment Fund, and the revenue from taxable
property in a redevelopment project to be deposited in various
accounts and to be allocated, in part, to cities, counties, or cities
and counties, for prescribed purposes. Existing law also requires,
for specified periods during the 2009-10 and 2010-11 fiscal years,
the borrowing, transfer  ,  or suspension of these allocated
revenues, as prescribed.
   This bill would make several legislative findings and declarations
relating to cites, counties, and cities and counties that observe
the federal fiscal year calendar. The bill would provide that if the
Legislature transfers, borrows from, or suspends these allocated
revenues, the respective transaction would be suspended during the
months of July, August, and September for a city, county, or city and
county observing the federal fiscal year. The transfer, borrowing,
or suspension of revenues would instead commence on October 1 
and be completed on or before June 30 of that same state fiscal year
 .
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Cities, counties, and cities and counties observing the
federal fiscal year calendar instead of the state fiscal year
calendar experience an additional burden when the state borrows or
suspends local government revenues in the first three months of the
state fiscal year.
   (b) The required transfer, suspension, or borrowing of funds by
the state in the months of July, August, or September require cities,
counties, and cities and counties observing the federal fiscal year
calendar to make drastic budgetary reductions in the last three
months of their fiscal year.
   (c) Relief is needed so that cities, counties, and cities and
counties that observe the federal fiscal year calendar may remit
those payments to the state at the beginning, rather than at the end,
of their fiscal year.
  SEC. 2.  Article 7.1 (commencing with Section 53834) is added to
Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code,
to read:

      Article 7.1.  Federal Fiscal Year Local Governments


   53834.  (a) For purposes of this article,  both of the
  the following  terms shall have the following
meanings:
   (1) "Federal fiscal year" means a fiscal year beginning on October
1 and ending September 30.
   (2) "Federal fiscal year city, county, or city and county" means
any city, county, or city and county that observes the federal fiscal
year calendar. 
   (3) "State fiscal year" means a fiscal year beginning on July 1
and ending June 30. 
   (b) If the Legislature transfers, borrows, or suspends revenues
allocated to a federal fiscal year city, county, or city and county,
the transaction shall be suspended during the months of July, August,
and September. The transfer, borrowing, or suspension of revenues
shall instead commence on October 1  and shall be completed on or
before June 30 of that same state fiscal year  .
   (c) This section shall apply to all of the following transactions
enacted by law on and after January 1, 2011, involving funds and
revenues allocated to a federal fiscal year city, county, or city and
county:
   (1) The borrowing, transfer, or suspension of revenues allocated
in accordance with subdivision (a) of Section 1 of Article XIII A of
the California Constitution.
   (2) The borrowing, transfer, or suspension of revenues from the
Highway Users Tax Account required to be apportioned to cities and
counties pursuant to Chapter 3 (commencing with Section 2100) of
Division 3 of the Streets and Highways Code, including the revenues
apportioned pursuant to Section 2103 of the Streets and Highways
Code, as amended by Chapter 12 of the Eighth Extraordinary Session,
Statutes of 2010.
   (3) The borrowing, transfer, or suspension of revenues from the
Transportation Investment Fund allocated pursuant to subdivision (b)
of Section 1 of Article XIX B of the California Constitution.
   (4) The borrowing transfer, or suspension, of funds allocated to a
redevelopment agency pursuant to subdivision (b) of Section 16 of
Article XVI of the California Constitution.