BILL ANALYSIS
AB 2704
Page 1
Date of Hearing: April 19, 2010
ASSEMBLY COMMITTEE ON TRANSPORTATION
Bonnie Lowenthal, Chair
AB 2704 (Gaines) - As Amended: April 8, 2010
SUBJECT : Local government funds: snow removal
SUMMARY : Requires, notwithstanding any other provision of law,
that funding for local snow removal must be maintained as
provided for under existing law.
EXISTING LAW:
1)Imposes an excise tax of 18
per gallon on gasoline and diesel � fuel.
2)Directs revenue from the gasoline and diesel fuel excise tax
to be deposited in the Motor Vehicle Fuel Account and
eventually transferred to the Highway Users Tax Account
(HUTA).
3)Of the funds deposited in HUTA, allocates about 65% of the
funds to the California Department of Transportation
(Caltrans) and about 35% to cities and counties, for
transportation purposes.
4)Generally directs HUTA disbursements to be made monthly;
however, provided temporary deferrals of HUTA disbursements to
cities and counties during recent fiscal years because of the
state's cash shortfall.
5)Apportions up to $7 million annually to reimburse counties for
eligible snow removal activities on county roads.
6)Apportions to a city and a city and county an amount equal to
one-half of the amount of its snow removal expenditures over
$5,000 from the previous year.
FISCAL EFFECT : Unknown
COMMENTS : According to the author, revenues to local
governments have declined dramatically since the collapse of the
real estate market. Furthermore, budget woes at the state level
have threatened funding for cities and counties snow removal
AB 2704
Page 2
activities. The author asserts that, if funding for snow
removal is cut off, local economies would be devastated and
there would be disastrous results for public education, public
safety, and travel in general.
This bill seeks to ensure that, at a minimum, HUTA funding, to
cities and counties for snow removal activities is assured.
Committee concern: It is doubtful that this bill will have any
real, practical effect. The reality is, should the Legislature
have to take action to suspend snow removal reimbursements for
cities and counties, any subsequent Budget Act or trailer bill
would supersede provisions of this bill.
REGISTERED SUPPORT / OPPOSITION :
Support
California State Association of Counties
City of Truckee
Nevada County Board of Supervisors
Regional Council of Rural Counties
Town of Mammoth Lakes
Opposition
None on file
Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093