BILL NUMBER: AB 2663	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 17, 2010
	AMENDED IN SENATE  JUNE 22, 2010
	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 cities 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 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 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
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 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, 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" means any city 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 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:  
   (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

    (c)     This section shall apply only to
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.