Amended in Assembly June 15, 2014

Amended in Senate May 21, 2014

Senate Bill No. 983

Introduced by Senator Hernandez

February 11, 2014

An act to amend Section begin delete 53084.5 end delete begin insert 149.7 end insert of the begin delete Government end delete begin insert Streets and Highways end insert Code, relating to begin delete local government. end delete begin insert transportation. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 983, as amended, Hernandez. begin delete Cities and counties: sales and use taxes: revenue sharing agreement: card lock system. end delete begin insert High-occupancy toll lanes. end insert

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Existing law authorizes a regional transportation agency, as defined, in cooperation with the Department of Transportation, to apply to the California Transportation Commission to develop and operate high-occupancy toll (HOT) lanes, including administration and operation of a value-pricing program and exclusive or preferential lane facilities for public transit. Existing law limits the number of approved facilities to not more than 4, 2 in northern California and 2 in southern California, and provides that no applications may be approved on or after January 1, 2012.

end insert begin insert

This bill would additionally authorize specified local transportation authorities and the Santa Clara Valley Transportation Authority to apply to the commission for purposes of the above-described provisions. The bill would remove the limitations on the number of approved facilities and would delete the January 1, 2012, deadline for HOT lane applications. The bill would provide that each application is subject to the review and approval of the commission and would require a regional transportation agency that applies to the commission to reimburse the commission for all of the commission’s cost and expense incurred in processing the application.

end insert begin delete

The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law. That law provides that for the purpose of a local sales tax adopted pursuant to that law, all retail sales are consummated at the place of business of the retailer unless otherwise specified.

end delete begin delete

Existing law prohibits a local agency, including a city or county, from entering into any form of agreement with any other person that would involve the payment, transfer, diversion, or rebate of any amount of Bradley-Burns local tax proceeds for any purpose if the agreement results in a reduction in the amount of revenue that is received by another local agency from a retailer that is located within the territorial jurisdiction of that other local agency, and the retailer continues to maintain a physical presence within the territorial jurisdiction of that other local agency, with specified exceptions, including an exception for an agreement to pay or rebate any Bradley-Burns local tax revenue relating to a buying company, as defined.

end delete begin delete

This bill would provide that, on or after May 1, 2014, a buying company does not include a retailer that contracts to sell fuel through a card lock system.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 149.7 of the end insert begin insert Streets and Highways Code end insert
begin insert is amended to read: end insert

149.7.  

(a) A regional transportation agency, as defined in
begin delete Section 143, end delete begin insert subdivision (e), end insert in cooperation with the department,
may apply to the commission to develop and operate
high-occupancy toll lanes, including the administration and
operation of a value pricing program and exclusive or preferential
lane facilities for public transit, consistent with the established
standards, requirements, and limitations that apply to those facilities
in Sections 149, 149.1, 149.3, 149.4, 149.5, and 149.6.

(b)  begin delete The commission shall review each end delete begin insert Each end insert application for the
development and operation of the facilities described in subdivision
(a) begin delete according end delete begin insert end insert begin insert shall be subject to review and approval by the
commission pursuant end insert to eligibility criteria established by the
commission. For each eligible application, the commission shall
conduct at least one public hearing in northern California and one
in southern California.

begin delete

(c) The number of facilities approved under this section shall
not exceed four, two in northern California and two in southern
California.

end delete begin insert

(c) A regional transportation agency that applies to the
commission to develop and operate facilities described in
subdivision (a) shall reimburse the commission for all of the
commission’s cost and expense incurred in processing the
application.

end insert

(d) A regional transportation agency that develops or operates
a facility, or facilities, described in subdivision (a) shall provide
any information or data requested by the commission or the
Legislative Analyst. The commission, in cooperation with the
Legislative Analyst, shall annually prepare a report on the progress
of the development and operation of a facility authorized under
this section. The commission may submit this report as a section
in its annual report to the Legislature required pursuant to Section
14535 of the Government Code.

begin delete

(e) No applications may be approved under this section on or
after January 1, 2012.

end delete begin insert

(e) Notwithstanding Section 143, for purposes of this section,
“regional transportation agency” means any of the following:

end insert begin insert

(1) A transportation planning agency described in Section 29532
or 29532.1 of the Government Code.

end insert begin insert

(2) A county transportation commission established under
Section 130050, 130050.1, or 130050.2 of the Public Utilities
Code.

end insert begin insert

(3) Any other local or regional transportation entity that is
designated by statute as a regional transportation agency.

end insert begin insert

(4) A joint exercise of powers authority established pursuant to
Chapter 5 (commencing with Section 6500) of Division 7 of Title
1 of the Government Code, with the consent of a transportation
planning agency or a county transportation commission for the
jurisdiction in which the transportation project will be developed.

end insert begin insert

(5) A local transportation authority designated pursuant to
Division 12.5 (commencing with Section 131000) or Division 19
(commencing with Section 180000) of the Public Utilities Code.

end insert begin insert

(6) The Santa Clara Valley Transportation Authority established
pursuant to Part 12 (commencing with Section 100000) of Division
10 of the Public Utilities Code.

end insert

begin delete

SECTION 1.  

Section 53084.5 of the Government Code is
amended to read:

53084.5.  

(a) On or after the date the act adding this section
takes effect, a local agency shall not enter into any form of
agreement that would result, directly or indirectly, in the payment,
transfer, diversion, or rebate of any tax revenue resulting from the
imposition of a sales and use tax under the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section
7200) of Division 2 of the Revenue and Taxation Code) to any
person for any purpose when both of the following apply:

(1) The agreement results in a reduction in the amount of
revenue that is received by another local agency from a retailer
that is located within the territorial jurisdiction of that other local
agency from the tax proceeds collected under the Bradley-Burns
Uniform Local Sales and Use Tax Law (Part 1.5 (commencing
with Section 7200) of Division 2 of the Revenue and Taxation
Code). This subdivision shall not apply to a reduction in the use
tax proceeds that are distributed to that other local agency through
one or more countywide pools.

(2) The retailer continues to maintain a physical presence within
the territorial jurisdiction of that other local agency. This
subdivision shall not apply if the retailer has expanded its
operations into another jurisdiction with the result that the retailer
is conducting a comparable operation within the jurisdiction of
both local agencies.

(b) For the purposes of this section, the following definitions
have the following meanings:

(1) “Local agency” means a chartered or general law city, a
chartered or general law county, or a city and county.

(2) “Retailer” means a retailer as defined by Section 6015 of
the Revenue and Taxation Code.

(3) “Physical presence” means the lease or ownership of any
real property for the purpose of carrying on business operations.

(c) This section shall not apply to local tax proceeds provided
by a local agency to a retailer if the funds are used to reimburse
the retailer for the construction of public works improvements that
serve all or a portion of the territorial jurisdiction of the local
agency.

(d) (1) This section shall not apply to an agreement to pay or
rebate any tax revenue resulting from the imposition of a sales and
use tax under the Bradley-Burns Uniform Local Sales and Use
Tax Law (Part 1.5 (commencing with Section 7200) of Division
2 of the Revenue and Taxation Code) relating to a buying company.
“Buying company” means, and is limited to, a legal entity that is
separate from another legal entity that owns, controls, or is
otherwise related to, the buying company and which has been
created for the purpose of performing administrative functions,
including acquiring goods and services for the other entity, as
defined by the State Board of Equalization, and meets requirements
of a buying company under Sections 6066 to 6075, inclusive, of
the Revenue and Taxation Code, and the regulations adopted
pursuant to those sections.

(2) (A) Notwithstanding paragraph (1), on or after May 1, 2014,
a buying company does not include a retailer that contracts to sell
fuel through a card lock system.

(B) “Card lock system” means a system in which owners of
unattended card lock fueling stations form a network whereby
customers may purchase fuel at any of the network’s participating
fueling stations by use of a card issued to the customer, and where
prices are not posted at the pump and no receipt is given at the
time of delivery.

(C) This paragraph does not apply to an agreement entered into
before May 1, 2014, to pay or rebate any tax revenue resulting
from the imposition of a sales and use tax under the Bradley-Burns
Uniform Local Sales and Use Tax Law (Part 1.5 (commencing
with Section 7200) of Division 2 of the Revenue and Taxation
Code) relating to a buying company that is a retailer that contracts
to sell fuel through a card lock system.

(e) This section shall not apply to any agreement by a local
agency to pay or rebate any use tax revenue resulting from the
imposition of a sales and use tax under the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section
7200) of Division 2 of the Revenue and Taxation Code) relating
to a use tax direct payment permit issued under Section 7051.3 of
the Revenue and Taxation Code.

(f) Nothing in this section shall be interpreted to limit the ability
of a local agency to contract with or otherwise enter into an
agreement pursuant to subdivision (b) of Section 7056 of the
Revenue and Taxation Code.

end delete