Amended in Senate March 27, 2014

Senate Bill No. 1418

Introduced by Senator DeSaulnier

February 21, 2014

An act to amend begin delete Section 14536 end delete begin insert Sections 16773 and 16965 end insert of the Government Code, begin insert to amend Section 2103 of the Streets and Highways Code, and to amend Sections 9400.1 and 42205 of, and to repeal Section 9400.4 of, the Vehicle Code, end insert relating to transportation begin insert , making an appropriation therefor, and declaring the urgency thereof, to take effect immediately end insert .

LEGISLATIVE COUNSEL’S DIGEST

SB 1418, as amended, DeSaulnier. begin delete California Transportation Commission: annual report. end delete begin insert Vehicle weight fees: transportation bond debt service. end insert

begin insert

(1) Existing law imposes weight fees on the registration of commercial motor vehicles and provides for the deposit of net weight fee revenues into the State Highway Account. Existing law provides for the transfer of certain weight fee revenues from the State Highway Account to the Transportation Debt Service Fund to reimburse the General Fund for payment of debt service on general obligation bonds issued for transportation purposes. Existing law also provides for the transfer of certain weight fee revenues to the Transportation Bond Direct Payment Account for direct payment of debt service on designated bonds, which are defined to be certain transportation general obligation bonds issued pursuant to Proposition 1B of 2006. Existing law also provides for loans of weight fee revenue to the General Fund to the extent the revenues are not needed for bond debt service purposes, with the loans to be repaid when the revenues are later needed for those purposes, as specified.

end insert begin insert

This bill would repeal these provisions, thereby retaining the weight fee revenues in the State Highway Account. The bill would make other conforming changes in that regard.

end insert begin insert

(2) Existing law provides for the deposit of fuel excise tax revenues imposed by the state on fuels used in motor vehicles upon public streets and highways in the Highway Users Tax Account, and appropriates those revenues to various purposes. Existing law, with respect to the portion of these revenues that is derived from increases in the motor vehicle fuel excise tax beginning in 2010, requires an allocation of revenues to reimburse the State Highway Account for the amount of weight fee revenues that the State Highway Account is not receiving due to use of weight fee revenues to pay debt service on transportation general obligation bonds and to make certain loans to the General Fund, with the remaining amount of this portion of revenues allocated 44% to the State Transportation Improvement Program, 12% to the State Highway Operations and Protection Program, and 44% to city and county streets and roads.

end insert begin insert

This bill, with respect to the portion of these revenues that is derived from increases in the motor vehicle fuel excise tax beginning in 2010, would instead require 56% of the revenues to be deposited by the Controller in the State Highway Account and 44% to be allocated by the Controller to city and county streets and roads. This bill would require a minimum of 21.453% of the revenues deposited in the State Highway Account under these provisions to be allocated to the State Highway Operation and Protection Program. The bill would thereby make an appropriation.

end insert begin insert

(3) This bill would declare that it is to take effect immediately as an urgency statute, with certain provisions to become operative on July 1, 2014.

end insert begin delete

Existing law requires the California Transportation Commission to adopt an annual report for submission to the Legislature containing, among other things, a summary of the commission’s prior-year decisions in allocating transportation capital outlay funds and an identification of timely and relevant transportation issues facing the state. Existing law, for the reports to be submitted between 2001 and 2008, requires a summary and discussion of certain loans and transfers of transportation revenues and the cashflow and project delivery impact of those loans and transfers.

end delete begin delete

This bill would delete the provisions relating to the loan and transfer summary and discussion that was to be included in the reports submitted between 2001 and 2008.

end delete

Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation:  begin delete no end delete begin insert yes end insert . 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:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 16773 of the end insert begin insert Government Code end insert begin insert is
amended to read: end insert

16773.  

(a) Whenever any payment of principal of any bonds
shall become due, either upon the maturity of any of the bonds or
upon the redemption thereof prior to maturity, and whenever any
interest on any of the bonds shall fall due, warrants shall be drawn
against the appropriation made by the bond act from the General
Fund by the Controller in favor of the Treasurer, or state fiscal
agents, or other duly authorized agents, pursuant to claims filed
with the Controller by the Treasurer, in the amounts so falling due.

(b) For any payments of debt service, as defined in subdivision
(c) of Section 998.404 of the Military and Veterans Code, with
respect to any bonds issued pursuant to a veterans’ farm and home
purchase bond act adopted pursuant to Chapter 6 (commencing
with Section 980) of Division 4 of the Military and Veterans Code,
the Controller shall first draw warrants against the appropriation
from the Veterans’ Bonds Payment Fund in Section 988.6 of the
Military and Veterans Code, and, to the extent moneys in that fund
are insufficient to pay the amount of debt service then due, shall
draw warrants against the appropriation made by the bond act from
the General Fund for payment of any remaining amount then due.

begin delete

(c) (1) For any payments of debt service, as defined in
paragraph (4) of subdivision (a) of Section 16965, with respect to
any designated bonds issued pursuant to Proposition 1B, the
Controller shall first draw warrants against the appropriation from
the Transportation Bond Direct Payment Account of the
Transportation Debt Service Fund created by subdivision (a) of
Section 16965, and, to the extent moneys in that account are
insufficient to pay the amount of debt service then due, shall draw
warrants from the General Fund for payment of any remaining
amount then due against such appropriation as may be available
therefor, including the appropriation made by Proposition 1B.

(2) (A) For purposes of this subdivision and Section 16965,
“Proposition 1B” means the Highway Safety, Traffic Reduction,
Air Quality, and Port Security Bond Act of 2006 (Chapter 12.49
(commencing with Section 8879.20) of Division 1).

(B) For purposes of this subdivision, Section 16965, and Section
9400.4 of the Vehicle Code, the term “designated bond” means
any designated bond under Proposition 1B, and the term
“nondesignated bond” means any bond issued under Proposition
1B, whether issued before or after the enactment of the act adding
this subdivision, that is not a designated bond. For purposes of this
subdivision, a “designated bond” is an issue of bonds (including
refunding bonds) under Proposition 1B that has been designated
by the Treasurer upon or prior to its issuance, with the approval
of the related finance committee, to be paid pursuant to paragraph
(1).

end delete

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 16965 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

16965.  

(a)  begin delete (1) end delete begin delete   end delete The Transportation Debt Service Fund is hereby
created in the State Treasury. Moneys in the fund shall begin insert , among
other things, as provided in this section, end insert be dedicated to begin delete all of the
following purposes: end delete

begin delete

(A) Payment of debt service with respect to designated bonds,
as defined in subdivision (c) of Section 16773, and as further
provided in paragraph (3) and subdivision (b).

end delete begin delete

(B) To reimburse the General Fund for debt service with respect
to bonds.

end delete begin delete

(C) To redeem or retire bonds, pursuant to Section 16774,
maturing in a subsequent fiscal year.

end delete

begin delete (2) end delete begin delete   end delete begin delete The bonds eligible under subparagraph (B) or (C) of
paragraph (1) include end delete begin insert payment of debt service on end insert bonds begin insert , or to
redeem or retire bonds, pursuant to Section 16774, maturing in a
subsequent fiscal year, including bonds end insert issued pursuant to the
Clean Air and Transportation Improvement Act of 1990 (Part 11.5
(commencing with Section 99600) of Division 10 of the Public
Utilities Code), the Passenger Rail and Clean Air Bond Act of
1990 (Chapter 17 (commencing with Section 2701) of Division 3
of the Streets and Highways Code), the Seismic Retrofit Bond Act
of 1996 (Chapter 12.48 (commencing with Section 8879) of
Division 1 of Title 2), begin insert the Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006 (Chapter 12.49
(commencing with Section 8879.20) of Division 1 of Title 2), end insert and
the Safe, Reliable High-Speed Passenger Train Bond Act for the
21st Century (Chapter 20 (commencing with Section 2704) of
Division 3 of the Streets and Highways Code) begin delete , and nondesignated
bonds under Proposition 1B, as defined in subdivision (c) of
Section 16773 end delete . begin insert If the moneys in the fund are insufficient to pay the
balance of the debt consistent with existing obligations, the General
Fund will be used to pay the balance of any debt service. end insert

begin delete

(3) (A) The Transportation Bond Direct Payment Account is
hereby created in the State Treasury, as a subaccount within the
Transportation Debt Service Fund, for the purpose of directly
paying the debt service, as defined in paragraph (4), of designated
bonds of Proposition 1B, as defined in subdivision (c) of Section
16773. Notwithstanding Section 13340, moneys in the
Transportation Bond Direct Payment Account are continuously
appropriated for payment of debt service with respect to designated
bonds as provided in subdivision (c) of Section 16773. So long as
any designated bonds remain outstanding, the moneys in the
Transportation Bond Direct Payment Account may not be used
for any other purpose, and may not be borrowed by or available
for transfer to the General Fund pursuant to Section 16310 or any
similar law, or to the General Cash Revolving Fund pursuant to
Section 16381 or any similar law.

(B) Once the Treasurer makes a certification that payment of
debt service with respect to all designated bonds has been paid or
provided for, any remaining moneys in the Transportation Bond
Direct Payment Account shall be transferred back to the
Transportation Debt Service Fund.

(C) The moneys in the Transportation Bond Direct Payment
Account shall be invested in the Surplus Money Investment Fund,
and all investment earnings shall accrue to the account.

(D) The Controller may establish subaccounts within the
Transportation Bond Direct Payment Account as may be required
by the resolution, indenture, or other documents governing any
designated bonds.

(4) For purposes of this subdivision and subdivision (b), and
subdivision (c) of Section 16773, “debt service” means payment
of all of the following costs and expenses with respect to any
designated bond:

(A) The principal of and interest on the bonds.

(B) Amounts payable as the result of tender on any bonds, as
described in clause (iv) of subparagraph (B) of paragraph (1) of
subdivision (d) of Section 16731.

(C) Amounts payable under any contractual obligation of the
state to repay advances and pay interest thereon under a credit
enhancement or liquidity agreement as described in clause (iv) of
subparagraph (B) of paragraph (1) of subdivision (d) of Section
16731.

(D) Any amount owed by the state to a counterparty after any
offset for payments owed to the state on any hedging contract as
described in subparagraph (A) of paragraph (2) of subdivision (d)
of Section 16731.

end delete

(b) From the moneys transferred to the fund pursuant to
begin delete paragraph (2) or (3) of subdivision (c) of end delete Section 9400.4 of the
Vehicle Code begin insert prior to July 1, 2014 end insert , begin delete there shall first be deposited
into the Transportation Bond Direct Payment Account in each
month sufficient funds to equal the amount designated in a
certificate submitted by the Treasurer to the Controller and the
Director of Finance at the start of each fiscal year, and as may be
modified by the Treasurer thereafter upon issuance of any new
issue of designated bonds or upon change in circumstances that
requires such a modification. This certificate shall be calculated
by the Treasurer to identify, for each month, the amount necessary
to fund all of the debt service with respect to all designated bonds.
This calculation shall be done in a manner provided in the
resolution, indenture, or other documents governing the designated
bonds. In the event that transfers to the Transportation Bond Direct
Payment Account in any month are less than the amounts required
in the Treasurer’s certificate, the shortfall shall carry over to be
part of the required payment in the succeeding month or months. end delete

begin delete

(c) The state hereby covenants with the holders from time to
time of any designated bonds that it will not alter, amend, or restrict
the provisions of subdivision (c) of Section 16773 of the
Government Code, or Sections 9400, 9400.1, 9400.4, and 42205
of the Vehicle Code, which provide directly or indirectly for the
transfer of weight fees to the Transportation Debt Service Fund
or the Transportation Bond Direct Payment Account, or
subdivisions (a) and (b) of this section, or reduce the rate of
imposition of vehicle weight fees under Sections 9400 and 9400.1
of the Vehicle Code as they existed on the date of the first issuance
of any designated bonds, if that alteration, amendment, restriction,
or reduction would result in projected weight fees for the next
fiscal year determined by the Director of Finance being less than
two times the maximum annual debt service with respect to all
outstanding designated bonds, as such calculation is determined
pursuant to the resolution, indenture, or other documents governing
the designated bonds. The state may include this covenant in the
resolution, indenture, or other documents governing the designated
bonds.

end delete

begin delete (d) end delete begin delete   end delete begin delete Once the required monthly deposit, including makeup of
any shortfalls from any prior month, has been made pursuant to
subdivision (b), from moneys transferred to the fund pursuant to
paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
Vehicle Code, end delete or begin insert on an ongoing basis end insert pursuant to Section 16965.1
or 63048.67, the Controller shall transfer as an expenditure
reduction to the General Fund any amount necessary to offset the
cost of current year debt service payments made from the General
Fund with respect to any bonds issued pursuant to Proposition 192
(1996) and three-quarters of the amount of current year debt service
payments made from the General Fund with respect to any
begin delete nondesignated end delete bonds begin delete , as defined in subdivision (c) of Section
16773, end delete issued pursuant to Proposition 1B (2006). In the alternative,
these funds may also be used to redeem or retire the applicable
bonds, pursuant to Section 16774, maturing in a subsequent fiscal
year as directed by the Director of Finance.

begin delete

(e)

end delete

begin insert (c) end insert  From moneys transferred to the fund pursuant to Section
183.1 of the Streets and Highways Code, the Controller shall
transfer as an expenditure reduction to the General Fund any
amount necessary to offset the cost of current year debt service
payments made from the General Fund with respect to any bonds
issued pursuant to Proposition 116 (1990). In the alternative, these
funds may also be used to redeem or retire the applicable bonds,
pursuant to Section 16774, maturing in a subsequent fiscal year
as directed by the Director of Finance.

begin delete

(f) Once the required monthly deposit, including makeup of any
shortfalls from any prior month, has been made pursuant to
subdivision (b), from

end delete

begin insert (d) end insert begin insert   end insert begin insert From end insert moneys transferred to the fund pursuant to paragraph
(2) or (3) of subdivision (c) of Section 9400.4 of the Vehicle Code
begin insert prior to July 1, 2014 end insert , or begin insert on an ongoing basis end insert pursuant to Section
16965.1 or 63048.67, the Controller shall transfer as an expenditure
reduction to the General Fund any amount necessary to offset the
eligible cost of current year debt service payments made from the
General Fund with respect to any bonds issued pursuant to
Proposition 108 (1990) and Proposition 1A (2008), and one-quarter
of the amount of current year debt service payments made from
the General Fund with respect to any begin delete nondesignated end delete bonds begin delete , as
defined in subdivision (c) of Section 16773, end delete issued pursuant to
Proposition 1B (2006). The Department of Finance shall notify
the Controller by July 30 of every year of the percentage of debt
service that is expected to be paid in that fiscal year with respect
to bond-funded projects that qualify as eligible guideway projects
consistent with the requirements applicable to the expenditure of
revenues under Article XIX of the California Constitution, and the
Controller shall make payments only for those eligible projects.
In the alternative, these funds may also be used to redeem or retire
the applicable bonds, pursuant to Section 16774, maturing in a
subsequent fiscal year as directed by the Director of Finance.

begin delete

(g)

end delete

begin insert (e) end insert  On or before the second business day following the date on
which transfers are made to the Transportation Debt Service Fund,
begin delete and after the required monthly deposits for that month, including
makeup of any shortfalls from any prior month, have been made
to the Transportation Bond Direct Payment Account, end delete the Controller
shall transfer the funds designated for reimbursement of bond debt
service begin delete with respect to nondesignated bonds, as defined in
subdivision (c) of Section 16773, and other bonds identified in
subdivisions (d), (e), and (f) end delete in that month from the fund to the
General Fund pursuant to this section.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 2103 of the end insert begin insert Streets and Highways Code end insert begin insert is
amended to read: end insert

2103.  

(a) Notwithstanding Section 13340 of the Government
Code, of the net revenues deposited to the credit of the Highway
Users Tax Account begin insert in the Transportation Tax Fund end insert that are derived
from the increases in the rates of taxes that are imposed pursuant
to subdivision (b) of Section 7360 and Section 7361.1 of the
Revenue and Taxation Code, all of the following shall occur on a
monthly basis:

begin delete

(1) (A) By the 15th day of every month, the Treasurer’s office,
in consultation with the Department of Finance, shall notify the
Controller of the amount of debt service that will be paid on each
transportation bond during that month.

(B) Within two business days following the 28th day of each
month, the Controller shall transfer to the Transportation Debt
Service Fund an amount equal to the amount of monthly debt
service paid by the General Fund on any bonds issued pursuant to
the Seismic Retrofit Bond Act of 1996 (Chapter 12.48
(commencing with Section 8879) of Division 1 of Title 2 of the
Government Code) or any other bonds issued for highway or
eligible guideway projects consistent with the requirements
applicable to the expenditure of revenues under Article XIX of the
California Constitution as identified by the Department of Finance
pursuant to Section 16965 of the Government Code, and
three-quarters of the amount of monthly debt service paid on any
bonds issued pursuant to the Highway Safety, Traffic Reduction,
Air Quality, and Port Security Bond Act of 2006 (Chapter 12.49
(commencing with Section 8879.20) of Division 1 of Title 2) for
reimbursement of the General Fund for these costs. If revenues
available pursuant to this subdivision in any given month are
insufficient to fully reimburse the General Fund for the debt service
payments made, the first revenues available pursuant to this
subdivision in the following month or months shall be transferred
to the Transportation Debt Service Fund so that all debt service
payments made on these bonds from the General Fund in a given
fiscal year are fully reimbursed. However, no further transfers
shall be made pursuant to this subparagraph once the transfers for
the months of July to October, inclusive, in 2010 have been made.
Any transfers made from the net revenues identified in this
paragraph for highway and eligible guideway bond debt service
for months after October 2010 shall be reversed and shall instead
be made from weight fee revenues in the State Highway Account,
as described in subparagraph (F).

(C) Beginning November 2, 2010, the Controller shall transfer
to the State Highway Account within two business days following
the 28th day of each month all of the monthly net revenues
identified in subparagraph (B) that were designated for highway
and eligible guideway bond debt service reimbursement but that
have not been transferred, or that were transferred by means of a
transfer that was reversed, pursuant to that subparagraph. To the
extent the Controller has distributed any of those net revenues to
cities and counties pursuant to subparagraph (C) of paragraph (3)
between November 2, 2010, and March 24, 2011, the Controller
shall subsequently reduce the amount transferred to cities and
counties on a monthly basis pursuant to subparagraph (C) of
paragraph (3) and shall instead transfer these funds to the State
Highway Account until all of the revenues that would otherwise
have been transferred to the State Highway Account on and after
November 2, 2010, pursuant to this subparagraph have been so
transferred. For the 2011-12 fiscal year, the Controller shall
transfer to the State Highway Account within two business days
following the 28th day of each month an amount equal to the
weight fee revenues transferred to the Transportation Debt Service
Fund pursuant to subdivision (b) of Section 9400.4 of the Vehicle
Code, including forty-three million seven hundred thousand dollars
($43,700,000) authorized pursuant to Item 2660-013-0042 of
Section 2.00 of the Budget Act of 2011 and an amount equal to
weight fee revenues transferred to the General Fund as a loan
pursuant to subdivision (b) of Section 9400.4 of the Vehicle Code.
To the extent the Controller has distributed any of those revenues
to cities and counties pursuant to subparagraph (C) of paragraph
(3), the Controller shall subsequently reduce the amount transferred
to cities and counties on a monthly basis pursuant to subparagraph
(C) of paragraph (3) and instead transfer these funds to the State
Highway Account until all of the revenues that would otherwise
have been transferred to the State Highway Account in the 2011-12
fiscal year pursuant to this subparagraph have been so transferred.

(D) Notwithstanding subparagraph (C), commencing with the
2012-13 fiscal year and every fiscal year thereafter, the Controller
shall transfer to the State Highway Account within two business
days following the 28th day of each month an amount equal to the
amount of weight fee revenues transferred to the Transportation
Debt Service Fund for highway and eligible guideway bond debt
service and to the General Fund as a loan pursuant to subdivision
(c) of Section 9400.4 of the Vehicle Code.

(E) Beginning July 1, 2011, transfers made under subparagraphs
(C) and (D) during a fiscal year shall not exceed the annual revenue
generated from weight fees, as determined by Sections 9400.4 and
42205 of the Vehicle Code, at the rates in effect as of March 24,
2011, as determined by the Department of Finance.

(F) Any remaining amount of the highway or eligible guideway
bond debt service reimbursement authorized by this paragraph that
has not been made pursuant to subparagraph (B) on and after
November 2, 2010, shall instead be made pursuant to subdivisions
(a), (b), and (c) of Section 9400.4 of the Vehicle Code from
revenues in the State Highway Account derived from weight fees
deposited in the account pursuant to subdivision (e) of Section
9400.1 and Section 42205 of the Vehicle Code.

(2) (A) In the 2010-11 fiscal year, after the monthly transfer
made pursuant to paragraph (1), the sum of fifty-four million one
hundred sixty-seven thousand dollars ($54,167,000) per month
shall be held in the account for future appropriation by the
Legislature.

(B) Notwithstanding any other provision of law, with respect
to the monthly net revenues described in subparagraph (A), no
further transfers of these revenues for the purpose of loans to the
General Fund shall be made pursuant to Item 2660-011-0062 of
Section 2.00 of the Budget Act of 2010 once the loan transfers for
the months of July to October, inclusive, in 2010 have been made.
Notwithstanding the loan repayment date specified in the
provisional language for that item, the funds loaned shall be repaid
by June 30, 2021. Any transfers made from the monthly net
revenues in subparagraph (A) for months after October 2010 shall
be reversed and shall instead be made from weight fee revenues
in the State Highway Account, as described in subparagraph (D).
The revenues from loan repayments shall be held in the Highway
Users Tax Account for future appropriation by the Legislature.

(C) Beginning November 2, 2010, all of the monthly net
revenues described in subparagraph (A) shall instead be transferred
by the Controller to the State Highway Account within two
business days following the 28th day of each month. To the extent
that the Controller has distributed any of the revenues identified
in this paragraph to cities and counties pursuant to subparagraph
(C) of paragraph (3) between October 14, 2010, and March 24,
2011, the Controller shall subsequently reduce the amount
transferred to cities and counties on a monthly basis pursuant to
subparagraph (C) of paragraph (3) and shall instead transfer these
funds to the State Highway Account until all of the revenues that
would have been transferred to the General Fund as a loan pursuant
to Item 2660-011-0062 of Section 2.00 of the Budget Act of 2010
on and after November 2, 2010, have instead been transferred to
the State Highway Account.

(D) Any remaining amount of the loans to the General Fund
authorized pursuant to Item 2660-011-0062 of Section 2.00 of the
Budget Act of 2010 that has not been made pursuant to
subparagraph (B) on and after November 2, 2010, shall instead be
made pursuant to subdivisions (a), (b), and (c) of Section 9400.4
of the Vehicle Code from revenues in the State Highway Account
derived from weight fees deposited in the account pursuant to
subdivision (e) of Section 9400.1 and Section 42205 of the Vehicle
Code.

(3) The Controller shall transfer any remaining net revenues
subject to this subdivision as follows:

(A) Forty-four

end delete

begin insert (1) end insert begin insert   end insert begin insert Fifty-six end insert percent shall be transferred begin insert by the Controller end insert to the
State Highway Account to fund projects begin delete in the State Transportation
Improvement Program end delete that are consistent with Section 1 of Article
XIX of the California Constitution, begin delete except in the 2010-11 fiscal
year, 50 percent shall be transferred for purposes of this
subparagraph end delete begin insert with a minimum of 21.43 percent of the revenues
transferred under this paragraph to be used to fund projects in
the State Highway Operation and Protection Program end insert .

begin delete

(B) Twelve percent shall be transferred to the State Highway
Account to fund projects in the State Highway Operation and
Protection Program, except in the 2010-11 fiscal year, no revenues
shall be transferred for purposes of this subparagraph.

(C)

end delete

begin insert (2) end insert  Forty-four percent shall be apportioned by the Controller
for local street and road purposes begin delete , except in the 2010-11 fiscal
year, 50 percent shall be transferred for purposes of this
subparagraph end delete as follows:

begin delete

(i)

end delete

begin insert (A) end insert  Fifty percent shall be apportioned by the Controller to cities,
including a city and county, in the proportion that the total
population of the city bears to the total population of all the cities
in the state.

begin delete

(ii)

end delete

begin insert (B) end insert  Fifty percent shall be apportioned by the Controller to
counties, including a city and county, in accordance with the
following formulas:

begin delete

(I)

end delete

begin insert (i) end insert  Seventy-five percent shall be apportioned among the counties
in the proportion that the number of fee-paid and exempt vehicles
that are registered in the county bear to the number of fee-paid and
exempt vehicles registered in the state.

begin delete

(II)

end delete

begin insert (ii) end insert  Twenty-five percent shall be apportioned among the counties
in the proportion that the number of miles of maintained county
roads in each county bear to the total number of miles of
maintained county roads in the state. For the purposes of
apportioning funds under this subparagraph, any roads within the
boundaries of a city and county that are not state highways shall
be deemed to be county roads.

(b) After the transfers or other actions pursuant to subdivision
(a), at least 90 percent of the balance deposited to the credit of the
Highway Users Tax Account in the Transportation Tax Fund by
the 28th day of each month shall be apportioned or transferred, as
applicable, by the Controller by the second working day thereafter,
except for June, in which case the apportionment or transfer shall
be made the same day. These apportionments or transfers shall be
made as provided for in Sections 2104 to 2122, inclusive. If
information is not available to make the apportionment or transfer
as required, the apportionment or transfer shall be made on the
basis of the information of the previous month. Amounts not
apportioned or transferred shall be included in the apportionment
or transfer of the subsequent month.

(c) Notwithstanding any other law, the funds apportioned by
the Controller to cities and counties pursuant to begin delete subparagraph (C)
of end delete paragraph begin delete (3) end delete begin insert (2) end insert of subdivision (a) are not subject to Section
7104 or 7104.2 of the Revenue and Taxation Code. These funds
may be expended for any street and road purpose consistent with
the requirements of this chapter.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 9400.1 of the end insert begin insert Vehicle Code end insert begin insert is amended to read: end insert

9400.1.  

(a) (1) In addition to any other required fee, there
shall be paid the fees set forth in this section for the registration
of commercial motor vehicles operated either singly or in
combination with a declared gross vehicle weight of 10,001 pounds
or more. Pickup truck and electric vehicle weight fees are not
calculated under this section.

(2) The weight of a vehicle issued an identification plate
pursuant to an application under Section 5014, and the weight of
an implement of husbandry as defined in Section 36000, shall not
be considered when calculating, pursuant to this section, the
declared gross vehicle weight of a towing commercial motor
vehicle that is owned and operated exclusively by a farmer or an
employee of a farmer in the conduct of agricultural operations.

(3) Tow trucks that are utilized to render assistance to the
motoring public or to tow or carry impounded vehicles shall pay
fees in accordance with this section, except that the fee calculation
shall be based only on the gross vehicle weight rating of the towing
or carrying vehicle. Upon each initial or transfer application for
registration of a tow truck described in this paragraph, the
registered owner or lessee or that owner’s or lessee’s designee,
shall certify to the department the gross vehicle weight rating of
the tow truck:

 

Gross Vehicle Weight Range	Fee
10,001-15,000	$ 257
15,001-20,000	353
20,001-26,000	435
26,001-30,000	552
30,001-35,000	648
35,001-40,000	761
40,001-45,000	837
45,001-50,000	948
50,001-54,999	1,039
55,000-60,000	1,173
60,001-65,000	1,282
65,001-70,000	1,398
70,001-75,000	1,650
75,001-80,000	1,700

 

(b) The fees specified in subdivision (a) apply to both of the
following:

(1) An initial or original registration occurring on or after
December 31, 2001, to December 30, 2003, inclusive, of a
commercial motor vehicle operated either singly or in combination
with a declared gross vehicle weight of 10,001 pounds or more.

(2) The renewal of registration of a commercial motor vehicle
operated either singly or in combination, with a declared gross
vehicle weight of 10,001 pounds or more for which registration
expires on or after December 31, 2001, to December 30, 2003,
inclusive.

(c) (1) For both an initial or original registration occurring on
or after December 31, 2003, of a commercial motor vehicle
operated either singly or in combination with a declared gross
vehicle weight of 10,001 pounds or more, and the renewal of
registration of a commercial motor vehicle operated either singly
or in combination, with a declared gross vehicle weight of 10,001
pounds or more for which registration expires on or after December
31, 2003, there shall be paid fees as follows:

 

Gross Vehicle Weight Range	Weight Code	Fee
10,001-15,000	A	$ 332
15,001-20,000	B	447
20,001-26,000	C	546
26,001-30,000	D	586
30,001-35,000	E	801
35,001-40,000	F	937
40,001-45,000	G	1,028
45,001-50,000	H	1,161
50,001-54,999	I	1,270
55,000-60,000	J	1,431
60,001-65,000	K	1,562
65,001-70,000	L	1,701
70,001-75,000	M	2,004
75,001-80,000	N	2,064

 

(2) For the purpose of obtaining “revenue neutrality” as
described in Sections 1 and 59 of Senate Bill 2084 of the
1999-2000 Regular Session (Chapter 861 of the Statutes of 2000),
the Director of Finance shall review the final 2003-04 Statement
of Transactions of the State Highway Account. If that review
indicates that the actual truck weight fee revenues deposited in the
State Highway Account do not total at least seven hundred
eighty-nine million dollars ($789,000,000), the Director of Finance
shall instruct the department to adjust the schedule set forth in
paragraph (1), but not to exceed the following fee amounts:

 

Gross Vehicle Weight Range	Weight Code	Fee
10,001-15,000	A	$ 354
15,001-20,000	B	482
20,001-26,000	C	591
26,001-30,000	D	746
30,001-35,000	E	874
35,001-40,000	F	1,024
40,001-45,000	G	1,125
45,001-50,000	H	1,272
50,001-54,999	I	1,393
55,000-60,000	J	1,571
60,001-65,000	K	1,716
65,001-70,000	L	1,870
70,001-75,000	M	2,204
75,001-80,000	N	2,271

 

(d) (1) In addition to the fees set forth in subdivision (a), a
Cargo Theft Interdiction Program fee of three dollars ($3) shall
be paid at the time of initial or original registration or renewal of
registration of each motor vehicle subject to weight fees under this
section.

(2) This subdivision does not apply to vehicles used or
maintained for the transportation of persons for hire, compensation
or profit, and tow trucks.

(3) For vehicles registered under Article 4 (commencing with
Section 8050) of Chapter 4, the fee imposed under this subdivision
shall be apportioned as required for registration fees under that
article.

(4) Funds collected pursuant to the Cargo Theft Interdiction
Program shall not be proportionately reduced for each month and
shall be transferred to the Motor Carriers Safety Improvement
Fund.

(e) Notwithstanding Section 42270 or any other provision of
law, of the moneys collected by the department under this section,
one hundred twenty-two dollars ($122) for each initial, original,
and renewal registration shall be reported monthly to the Controller,
and at the same time, deposited in the State Treasury to the credit
of the Motor Vehicle Account in the State Transportation Fund.
All other moneys collected by the department under this section
shall be deposited to the credit of the State Highway Account in
the State Transportation Fund begin delete , or directly to the credit of the
Transportation Debt Service Fund as provided in paragraph (2) of
subdivision (c) of Section 9400.4, as applicable end delete . One hundred
twenty-two dollars ($122) of the fee imposed under this section
shall not be proportionately reduced for each month. For vehicles
registered under Article 4 (commencing with Section 8050) of
Chapter 4, the fee shall be apportioned as required for registration
under that article.

(f) (1) The department, in consultation with the Department of
the California Highway Patrol, shall design and make available a
set of distinctive weight decals that reflect the declared gross
combined weight or gross operating weight reported to the
department at the time of initial registration, registration renewal,
or when a weight change is reported to the department pursuant
to Section 9406.1. A new decal shall be issued on each renewal
or when the weight is changed pursuant to Section 9406.1. The
decal for a tow truck that is subject to this section shall reflect the
gross vehicle weight rating or weight code.

(2) The department may charge a fee, not to exceed ten dollars
($10), for the department’s actual cost of producing and issuing
each set of decals issued under paragraph (1).

(3) The weight decal shall be in sharp contrast to the background
and shall be of a size, shape, and color that is readily legible during
daylight hours from a distance of 50 feet.

(4) Each vehicle subject to this section shall display the weight
decal on both the right and left sides of the vehicle.

(5) A person may not display upon a vehicle a decal issued
pursuant to this subdivision that does not reflect the declared weight
reported to the department.

(6) Notwithstanding subdivision (e) or any other provision of
law, the moneys collected by the department under this subdivision
shall be deposited in the State Treasury to the credit of the Motor
Vehicle Account in the State Transportation Fund.

(7) This subdivision shall apply to vehicles subject to this section
at the time of an initial registration, registration renewal, or reported
weight change that occurs on or after July 1, 2004.

(8) The following shall apply to vehicles registered under the
permanent fleet registration program pursuant to Article 9.5
(commencing with Section 5301) of Chapter 1:

(A) The department, in consultation with the Department of the
California Highway Patrol, shall distinguish the weight decals
issued to permanent fleet registration vehicles from those issued
to other vehicles.

(B) The department shall issue the distinguishable weight decals
only to the following:

(i) A permanent fleet registration vehicle that is registered with
the department on January 1, 2005.

(ii) On and after January 1, 2005, a vehicle for which the
department has an application for initial registration as a permanent
fleet registration vehicle.

(iii) On and after January 1, 2005, a permanent fleet registration
vehicle that has a weight change pursuant to Section 9406.1.

(C) The weight decal issued under this paragraph shall comply
with the applicable provisions of paragraphs (1) to (6), inclusive.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 9400.4 of the end insert begin insert Vehicle Code end insert begin insert is repealed. end insert

begin delete

9400.4.  

Weight fee revenue deposited into the State Highway
Account pursuant to subdivision (e) of Section 9400.1 and
subdivision (a) of Section 42205 net of amounts appropriated for
other purposes pursuant to subdivision (b) of Section 42205, and
weight fee revenues deposited directly into the Transportation
Debt Service Fund pursuant to subdivision (e) of Section 9400.1
and subdivision (a) of Section 42205, as applicable, shall be used
as follows:

(a) For the 2010-11 fiscal year, seven hundred fifty-six million
three hundred ninety-six thousand dollars ($756,396,000) is hereby
appropriated from weight fee revenues in the State Highway
Account for transfer to the General Fund as transportation bond
debt service reimbursement and loans as follows:

(1) The Controller shall transfer all weight fee revenues
deposited into the State Highway Account in any month to the
Transportation Debt Service Fund for transfer to the General Fund
as reimbursement for debt service costs until all of the debt service
paid on transportation bonds for projects that the Director of
Finance indicates qualify for reimbursement as provided for in
Section 16965 of the Government Code have been reimbursed.

(2) After the Director of Finance has notified the Controller that
all debt service costs for the 2010-11 fiscal year have been
reimbursed, the Controller shall transfer any remaining monthly
weight fee revenues in the State Highway Account to the General
Fund as a loan until the full amount appropriated in this subdivision
has been transferred to the General Fund. The Director of Finance
may repay any remaining portion of the outstanding balance of
this loan in any year in which the Director of Finance determines
the funds are needed to reimburse the General Fund for current
year transportation bond debt service or to redeem or retire those
bonds, pursuant to Section 16774 of the Government Code,
maturing in a subsequent fiscal year, provided that the loans shall
be repaid no later than June 30, 2021. All funds loaned pursuant
to this section, upon repayment to the State Highway Account,
shall be immediately transferred by the Controller to the
Transportation Debt Service Fund for use pursuant to Section
16965 of the Government Code.

(3) By June 15, 2011, the Director of Finance in consultation
with the Treasurer shall notify the Controller regarding the final
amount of debt service paid from the General Fund during the
2010-11 fiscal year pursuant to Section 16965 of the Government
Code and shall direct the Controller to reverse and adjust any
transfers made as debt service reimbursements or loans so that a
maximum amount of transfers are made for debt service
reimbursements and with any loan amounts limited to the
difference between this amount and the total amount appropriated
in this subdivision. The total amount of weight fee revenues
transferred from the State Highway Account for the 2010-11 fiscal
year shall not be greater than the total amount of weight fee
revenues deposited into the State Highway Account for that year.

(4) With respect to transfers or portions of transfers that cannot
be made in any given month if weight fee revenues are insufficient,
the first weight fee revenues available in the following month or
months shall be used to complete the transfers for the previous
month or months prior to making additional transfers for later
months.

(b) For the 2011-12 fiscal year, all revenue generated from
weight fees in the State Highway Account, as determined by
Sections 9400.1 and 42205, excluding an amount equal to the loan
of forty-three million seven hundred thousand dollars
($43,700,000) authorized pursuant to Item 2660-013-0042 of
Section 2.00 of the Budget Act of 2011, is hereby appropriated for
transfer to the General Fund as debt service reimbursement and
loans as follows:

(1) The Controller shall transfer all weight fee revenues
deposited into the State Highway Account in any month to the
Transportation Debt Service Fund for transfer to the General Fund
as reimbursement for debt service costs until all of the debt service
paid on transportation bonds for projects that the Director of
Finance indicates qualify for reimbursement as provided for in
Section 16965 of the Government Code have been reimbursed.

(2) After the Director of Finance has notified the Controller that
all debt service costs for the 2011-12 fiscal year have been
reimbursed, the Controller shall transfer any remaining weight fee
revenues for that fiscal year in the State Highway Account to the
General Fund as a loan until all weight fee revenues for that fiscal
year appropriated in this subdivision have been transferred to the
General Fund, excluding forty-two million dollars ($42,000,000),
which shall be transferred to the General Fund as a loan on July
1, 2012. The Director of Finance may repay any portion of the
balance of this loan in any year in which the Director of Finance
determines the funds are needed to reimburse the General Fund
for current year transportation bond debt service or to redeem or
retire those bonds, pursuant to Section 16774 of the Government
Code, maturing in a subsequent year, provided that the loans shall
be repaid no later than June 30, 2021. All funds loaned pursuant
to this section, upon repayment to the State Highway Account,
shall be immediately transferred by the Controller to the
Transportation Debt Service Fund for use pursuant to Section
16965 of the Government Code.

(3) By June 15, 2012, the Director of Finance in consultation
with the Treasurer shall notify the Controller regarding the final
amount of debt service paid from the General Fund during the
2011-12 fiscal year pursuant to Section 16965 of the Government
Code and shall direct the Controller to reverse and adjust any
transfers made as debt service reimbursements or loans so that a
maximum amount of transfers are made for debt service
reimbursements and with any loan amounts limited to the
difference between this amount and the total amount appropriated
in this subdivision. The total amount of weight fee revenues
transferred from the State Highway Account for the 2011-12 fiscal
year shall not be greater than the total amount of weight fee
revenues deposited into the State Highway Account in that year.

(4) With respect to transfers or portions of transfers that cannot
be made in any given month if weight fee revenues are insufficient,
the first weight fee revenues available in the following month or
months shall be used to complete the transfers for the previous
month or months prior to making additional transfers for later
months.

(c) (1) (A) Until the month of first issuance of designated bonds
as defined in subdivision (c) of Section 16773 of the Government
Code, and at any time thereafter that a Treasurer’s certification
pursuant to subparagraph (B) of paragraph (3) of subdivision (a)
of Section 16965 of the Government Code applies, all weight fee
revenues subject to this section in any month shall be transferred
from the State Highway Account to the Transportation Debt
Service Fund.

(B) Except as provided in paragraph (3), or when subparagraph
(A) applies pursuant to a Treasurer’s certification, upon the first
issuance of designated bonds, as defined in subdivision (c) of
Section 16773 of the Government Code, starting in the month
following that first issuance, all weight fee revenues received by
the Controller from the first day through the 14th day of every
month shall be transferred from the State Highway Account to the
Transportation Debt Service Fund.

(C) All funds transferred pursuant to subparagraphs (A) and (B)
are hereby appropriated for transfer to the General Fund by the
Controller as reimbursement for debt service costs paid with respect
to eligible bonds described in subparagraph (A) of paragraph (2)
of subdivision (a) of Section 16965 of the Government Code, until
all debt service that the Director of Finance indicates qualifies for
reimbursement as provided for in subdivision (d), (e), or (f) of
Section 16965 of the Government Code has been reimbursed, or
to redeem or retire bonds, pursuant to Section 16774 of the
Government Code, as referenced in subdivision (d), (e), or (f) of
Section 16965 of the Government Code, that are maturing in a
subsequent year. After the Director of Finance has notified the
Controller that all debt service costs for the fiscal year have been
reimbursed, the Controller shall transfer any remaining revenue
generated from weight fees subject to this section for that fiscal
year in the State Highway Account to the General Fund as a loan.
The Director of Finance may repay any portion of the balance of
this loan in any year in which the Director of Finance determines
that the funds are needed to reimburse the General Fund for current
year transportation bond debt service or to redeem or retire those
bonds pursuant to Section 16774 of the Government Code,
maturing in a future fiscal year, provided that the loans shall be
repaid no later than June 30, 2021. All funds loaned pursuant to
this section, upon repayment to the State Highway Account, shall
be immediately transferred by the Controller to the Transportation
Debt Service Fund for use pursuant to Section 16965 of the
Government Code. By June 15 of each year, the Director of
Finance, in consultation with the Treasurer, shall notify the
Controller regarding the final amount of debt service paid from
the General Fund during that fiscal year pursuant to subdivision
(d), (e), or (f) of Section 16965 of the Government Code and shall
direct the Controller to reverse or adjust any transfers made as debt
service reimbursements or loans so that a maximum amount of
transfers are made for debt service reimbursements and with any
loan amounts limited to the difference between this amount and
the total amount of revenue for that fiscal year generated from
weight fees, as determined by Sections 9400.1 and 42205. The
total amount of weight fee revenues transferred from the State
Highway Account in any fiscal year shall not be greater than the
total amount of weight fee revenues deposited into the State
Highway Account in that year.

(2) Starting in the month following the first issuance of any
designated bonds, unless a Treasurer’s certification pursuant to
subparagraph (B) of paragraph (3) of subdivision (a) of Section
16965 of the Government Code applies, all weight fee revenues
subject to this section that are received by the Controller from the
15th day of every month, or the first business day thereafter if not
a business day, through the last day of the month shall be deposited
directly in the Transportation Debt Service Fund and are hereby
appropriated for transfer as follows:

(A) First, to the Transportation Bond Direct Payment Account
as set forth in subdivision (b) of Section 16965 of the Government
Code, to provide for payment of debt service with respect to
designated bonds.

(B) Thereafter, as provided in subparagraph (C) of paragraph
(1).

(3) Notwithstanding paragraphs (1) and (2), if by the last day
of a month the transfer for that month relating to designated bonds
required by the Treasurer’s certificate described in subdivision (b)
of Section 16965 of the Government Code has not been made due
to insufficient weight fee revenue, weight fee revenue shall
continue to be transferred pursuant to paragraph (2) beginning
with the first day of the subsequent month and continuing every
day until such time as sufficient revenue for full compliance with
the certificate has been transferred.

(4) Except as otherwise provided in paragraph (1), (2), or (3),
with respect to any transfers or portions of transfers that cannot
be made in any given month if weight fee revenues are insufficient,
the first weight fee revenues available in the following month or
months shall be used to complete the transfers for the previous
month or months prior to making additional transfers for later
months.

end delete

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 42205 of the end insert begin insert Vehicle Code end insert begin insert is amended to read: end insert

42205.  

(a) Notwithstanding Chapter 3 (commencing with
Section 42270), the department shall file, at least monthly with
the Controller, a report of money received by the department
pursuant to Section 9400 for the previous month and shall, at the
same time, remit all money so reported to the Treasurer. On order
of the Controller, the Treasurer shall deposit all money so remitted
into the State Highway Account in the State Transportation Fund begin delete ,
or directly into the Transportation Debt Service Fund as provided
in paragraph (2) of subdivision (c) of Section 9400.4, as applicable end delete .

(b) The Legislature shall appropriate from the State Highway
Account in the State Transportation Fund to the department and
the Franchise Tax Board amounts equal to the costs incurred by
each in performing their duties pursuant to Article 3 (commencing
with Section 9400) of Chapter 6 of Division 3. The applicable
amounts shall be determined so that the appropriate costs for
registration and weight fee collection activities are appropriated
between the recipients of revenues in proportion to the revenues
that would have been received individually by those recipients if
the total fee imposed under the Vehicle License Fee Law (Part 5
(commencing with Section 10701) of Division 2 of the Revenue
and Taxation Code) was 2 percent of the market value of a vehicle.
The remainder of the funds collected under Section 9400 and
deposited in the account begin delete , other than the direct deposits to the
Transportation Debt Service Fund referenced in subdivision (a), end delete
may be appropriated to the Department of Transportation, the
Department of the California Highway Patrol, and the Department
of Motor Vehicles for the purposes authorized under Section 3 of
Article XIX of the California Constitution.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Sections 1 to end insert begin insert 6, inclusive, of this act shall become
operative on July 1, 2014. end insert

begin insert

begin insert SEC. 8. end insert   

end insert begin insert

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

end insert begin insert

In order to make vehicle weight fees available for critically
needed transportation improvements as quickly as possible, it is
necessary that this act take effect immediately.

end insert

begin delete

SECTION 1.  

Section 14536 of the Government Code is
amended to read:

14536.  

(a) The annual report shall include an explanation and
summary of major policies and decisions adopted by the
commission during the previously completed state and federal
fiscal year, with an explanation of any changes in policy associated
with the performance of its duties and responsibilities over the
past year.

(b) The annual report may also include a discussion of any
significant upcoming transportation issues anticipated to be of
concern to the public and the Legislature.

end delete