BILL NUMBER: AB 2663	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 19, 2010
	PASSED THE ASSEMBLY  AUGUST 23, 2010
	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, Bonnie Lowenthal. Local government: federal fiscal year.
   Existing state constitutional law requires specified revenues from
the Highway Users Tax Account 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.


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 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.