BILL ANALYSIS                                                                                                                                                                                                    �



                                                                AB 1352
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        CONCURRENCE IN SENATE AMENDMENTS
        AB 1352 (Logue)
        As Amended  August 30, 2011
        Majority vote
         
         
         ---------------------------------------------------------------------- 
        |ASSEMBLY: |     |(May 19, 2011)  |SENATE: |34-0 |(August 31, 2011)    |
         ---------------------------------------------------------------------- 
             (vote not relevant)


         ------------------------------------------------------------------------ 
        |COMMITTEE VOTE:  |9-0  |(September 8, 2011) |RECOMMENDATION: |concur    |
        |                 |     |                    |                |          |
         ------------------------------------------------------------------------ 

        Original Committee Reference:    REV. & TAX.  

         SUMMARY  :  Provides that specified vehicle license fee (VLF) 
        revenues deposited into the Local Revenue Fund of 2011 for local 
        law enforcement realignment purposes would not be subject to 
        expenditure requirements of a local ordinance in Nevada County.

         The Senate amendments  delete the Assembly version of this bill, and 
        instead:

        1)State that designated VLF revenues shall not, for purposes of an 
          ordinance of the County of Nevada, be deemed VLF revenues as 
          defined in the California Constitution.

        2)Define, for purposes of the bill, the term "designated vehicle 
          license fee revenues" to mean vehicle license revenues that are 
          collected and required to be deposited into the Local Law 
          Enforcement Services Account in the Local Revenue Fund 2011.

        3)Declare that a special law is necessary because of the unique 
          circumstances related to a local ordinance governing the 
          expenditure of VLF funds received by Nevada County.

        4)Provide that no reimbursement is required by the provisions of 
          the bill.

         EXISTING LAW  :  









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        1)Provides for the imposition of an annual VLF for any vehicle 
          subject to registration in California.

        2)Directs that specified VLF revenues collected after July 1, 2011, 
          be distributed to the Local Law Enforcement Services Account in 
          the Local Revenue Fund 2011 for allocation to cities, counties 
          and cities and counties for local public safety.

         AS PASSED BY THE ASSEMBLY  , this bill granted the State Board of 
        Equalization, meeting as a public body, discretion to relieve 
        interest under specified circumstances.
         
         FISCAL EFFECT  :  According to the Senate Appropriations Committee, 
        there are no state costs as a result of the Nevada County VLF 
        provisions.

         COMMENTS  :  In March of 1996, Nevada County voters approved Measure 
        F, an initiative that required that all funds received from the 
        State of California from VLF funds, as defined in the State 
        Constitution and in statute, must be segregated into a separate 
        accounting fund.  The initiative required that Nevada County spend 
        at least half of those funds in each fiscal year only for public 
        roads, ways, and highways for maintenance repair, circulation 
        enhancement, general road safety, and fire access in the 
        unincorporated portion of the county.

        Nevada County officials, as a result of additional VLF revenues 
        contained in the February 2009 budget agreement, believed that 
        Measure F would require them to make a general fund expenditure on 
        roads in an amount equal to half of the amount of additional VLF 
        revenues allocated to the for law enforcement purposes.  SB 636 
        (Ashburn), Chapter 605, Statutes of 2009, was enacted to ensure 
        that the increased VLF revenues dedicated for local law enforcement 
        purposes would not be subject to the requirements of Measure F.  

        This bill would enact similar provisions to ensure that VLF 
        revenues dedicated to local law enforcement as part of the 
        realignment package, as specified in SB 89 (Budget and Fiscal 
        Review Committee), Chapter 35, Statutes of 2011, are not subject to 
        the requirements of Nevada County's local ordinance.

        Support arguments:  In the years since Measure F was enacted, two 
        state budgets, in 2009 and 2011, have funded local public safety 
        programs via a portion of the VLF.  This bill ensures that the 
        additional VLF revenues are not subject to the requirements of 








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        Nevada County's local ordinance.

        Opposition arguments:  Instead of seeking a legislative remedy, 
        Nevada County officials may want to consider revising Measure F to 
        narrow the application of the ordinance to a specified portion of 
        VLF funds that is not required by law to be used for law 
        enforcement purposes.


         Analysis Prepared by  :    Debbie Michel / L. GOV. / (916) 319-3958 


        FN: 
        0002868