AB 6

Bill Subjects

Abstract

(1) Existing law creates the Transportation Debt Service Fund in the State Treasury for the purpose, among other things, of using transportation revenues for the payment of debt service on transportation bonds and to reimburse the General Fund for past debt service payments on transportation bonds. This bill would revise the provisions governing the Transportation Debt Service Fund to authorize the Director of Finance with moneys transferred to that fund pursuant to an annual Budget Act or other statute from the State Highway Account in the State Transportation Fund, to reimburse the General Fund any amount necessary to offset the cost of debt service made in any fiscal year for transportation-related general obligation bond expenditures. (2) Existing federal law, the Indian Gaming Regulatory Act of 1988, provides for the negotiation and execution of tribal-state gaming compacts for the purpose of authorizing certain types of gaming on Indian lands within a state. The California Constitution authorizes the Governor to negotiate and conclude compacts, subject to ratification by the Legislature. Existing law ratifies a number of tribal-state gaming compacts between the State of California and specified Indian tribes. Existing law authorizes the Infrastructure and Economic Development Bank, upon a filing by the Director of Finance with the bank of a list of specified amended tribal compacts and compact assets, to sell for, and on behalf of, the state all or any portion of those compact assets to a special purpose trust. Existing law authorizes the special purpose trust to issue bonds secured by those compact assets. This bill would provide that the portion of the above compact assets that are timely deposited or are due for deposit in a specified fund between July 1, 2008, and June 30, 2013, shall not be available for the purpose described above. The bill would require the Director of Finance to determine the portion of those compact assets attributable to each fiscal year. The bill would allow the Director of Finance to direct the Controller, by separate order applicable to the assets for each fiscal year, to transfer the compact assets attributable to that fiscal year to the General Fund. (3) Article XIX of the California Constitution requires, among other things, that revenues from fees and taxes imposed by the state upon vehicles or their use or operation, over and above the costs of collection and any refunds authorized by law, be used for the state administration and enforcement of laws regulating the use, operation, or registration of vehicles used upon the public streets and highways of this state, including the enforcement of traffic and vehicle laws by state agencies and the mitigation of the environmental effects of motor vehicle operation due to air and sound emissions. Under existing statutory law, all funds received by the Department of Motor Vehicles are required to be deposited in the Motor Vehicle Account in the State Transportation Fund. After payments for refunds, administration, and enforcement, appropriations for the support of the Department of Motor Vehicles, the Department of the California Highway Patrol, and other agencies are made from the account. Funds not needed to meet those appropriations are transferred to the State Highway Account in the State Transportation Fund. This bill would, notwithstanding any other provision of law, authorize the Legislature, upon appropriation, to transfer funds in the Motor Vehicle Account that are not subject to Article XIX of the California Constitution for any transportation purpose authorized by statute and would require, not later than June 30, 2009, upon the order of the Director of Finance, that the Controller transfer $85,000,000 from the Motor Vehicle Account in the State Transportation Fund to the General Fund. The bill would also require the Director of Finance, commencing with the 2009–10 fiscal year, to estimate the amount of revenues from funds not subject to Article XIX of the California Constitution and to order the Controller to transfer that amount from the Motor Vehicle Account in the State Transportation Fund to the General Fund. (4) This act is contingent upon the enactment of either AB 2 or SB 2 and either AB 9 or SB 9 of the 2009–10 First Extraordinary Session. (5) The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. The Governor issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on December 1, 2008. This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on December 1, 2008, pursuant to the California Constitution.