BILL ANALYSIS
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: AB 2704
SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: gaines
VERSION: 4/8/10
Analysis by: Art Bauer FISCAL: No
Hearing date: June 15, 2010
SUBJECT:
Local government streets and road funds
DESCRIPTION:
This bill continues the allocation of local snow removal funds.
ANALYSIS:
Existing law :
1) Imposes an excise tax of 18 cents per gallon on gasoline
and diesel fuel.
2) Deposits the excise tax revenue in the Motor Vehicle
Fuel Account and transfers the revenue to the Highway Users
Tax Account (HUTA).
3) Allocates about 65 percent of the HUTA funds to the
State Highway Account and about 35 percent to cities and
counties for street and road purposes with disbursements
made to cities and counties monthly according to various
formulas.
4) Apportions HUTA funds annually to cover 80 percent of
each county's cost of snow removal above $5,000 but not to
exceed $7 million statewide.
5) Apportions HUTA funds to cover one-half of the cost of
snow removal above $5,000 to each city and city and county
that provides snow removal services.
This bill requires the continuance of funding for local street
AB 2704 (GAINES) Page 2
and road snow removal in the event HUTA funds are diverted for
other purposes.
COMMENTS:
1) Purpose . This bill is intended to prevent the diversion
of HUTA for snow removal in the event the Legislature
enacts legislation to divert HUTA funds for other purposes.
2) Background . Last year SB 4X 30 (Ducheny), passed the
Senate. That bill contained a provision diverting HUTA
funds to the state General Fund. The Assembly did not take
this measure up for a vote, and so it failed to pass the
Legislature. This year AB 8X 5 (Committee on the Budget),
Chapter 1, Eighth Extraordinary Session, Statutes of 2010
delays HUTA payments to cities and counties for the months
of July 2010 through March 2011. HUTA payments for these
months will be made in one lump sum at the end of April
2011. Local agencies will receive no HUTA funds for snow
removal until after the snow season. The supporters of this
bill argue that snow removal is an imperative service as
without it children cannot get to school, the risk of motor
vehicles accidents increases, movement of emergency
vehicles is inhibited, local economies that rely upon
winter visitors to recreational sites are harmed.
3) Practical effect of bill is limited . This bill is a
statement of policy. It does not stop the Legislature from
suspending snow removal reimbursements in the event a
decision is reached to divert HUTA funds for other
purposes.
Assembly Votes:
Floor: 73-0
Trans: 11-0
POSITIONS: (Communicated to the Committee before noon on
Wednesday,
June 9, 2010)
SUPPORT: California State Association of Counties
Nevada County Board of Supervisors
Regional Council of Rural Counties
Siskiyou County Board of Supervisors
Town of Mammoth Lakes
AB 2704 (GAINES) Page 3
Town of Truckee
OPPOSED: None received.