BILL ANALYSIS
AB 2704
Page 1
ASSEMBLY THIRD READING
AB 2704 (Gaines)
As Amended April 8, 2010
Majority vote
TRANSPORTATION 11-0
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|Ayes:|Bonnie Lowenthal, Jeffries, | | |
| |Bill Berryhill, Buchanan, | | |
| |Eng, Furutani, Galgiani, | | |
| |Hayashi, Miller, Niello, | | |
| |Solorio | | |
| | | | |
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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
AB 2704
Page 2
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 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.
However, the real, practical effect of the bill is questionable
because, should the Legislature have to take action to suspend snow
removal reimbursements for cities and counties, any subsequent
Budget Act or trailer bill could supersede provisions of this bill.
Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093 FN:
0003958