SB 30

Bill Subjects

Abstract

(1) The Vehicle License Fee (VLF) Law establishes, in lieu of any ad valorem property tax upon vehicles, an annual license fee upon any vehicle subject to registration in this state. The California Constitution authorizes the Legislature to deposit an amount of revenues derived from a specified portion of the vehicle license fee rate into the Local Revenue Fund, for allocation to cities, counties, and cities and counties. Existing law requires the Controller to deposit 74.9% of the revenues collected under the VLF Law in the State Treasury to the credit of the Local Revenue Fund. This bill would require, on and after July 1, 2009, that 88.6% of those revenues be deposited into the Local Revenue Fund. Existing law requires the amount appropriated by the Legislature for the use of the Department of Motor Vehicles and the Franchise Tax Board in implementing the VLF Law to be transferred from the Motor Vehicle License Fee Account in the Transportation Tax Fund to the Motor Vehicle Account in the State Transportation Fund. This bill would require, for the 2009–10 fiscal year and each fiscal year thereafter, that this amount be equal to 1.98% of the total amount of money collected for applications accepted under the VLF Law for the fiscal year. (2) Existing federal law provides for allocation of federal funds through the federal Temporary Assistance for Needy Families (TANF) block grant program to eligible states, with California's version of this program being known as the California Work Opportunity and Responsibility to Kids (CalWORKs) program. Under the CalWORKs program each county provides cash assistance and other benefits to qualified low-income families and individuals who meet specified eligibility criteria. Existing law continually appropriates money from the General Fund to pay for a share of aid grant costs under the CalWORKs program. Existing law provides for the establishment of the Sales Tax Account in the continuously appropriated Local Revenue Fund for the allocation of sales and use tax revenues to local government, which includes, among others, a Social Services Subaccount. Under existing law, cities and counties that receive funds from the Local Revenue Fund are required to establish and maintain a local health and welfare trust fund comprised of specified accounts, including a social services account. Existing law requires the Controller, for the 1992–93 fiscal year and fiscal years thereafter, to make monthly deposits of the sales tax proceeds from revenues deposited to the credit of the Local Revenue Fund, to the subaccounts of the Sales Tax Account, as specified. Existing law further contains requirements for monthly allocations of these funds to each county's local health and welfare trust fund subaccounts. This bill would create a new subaccount, the CalWORKs Subaccount, in the Sales Tax Account of the Local Revenue Fund, from which moneys would be allocated to counties for the purpose of funding a portion of the counties' share of aid grant costs under the CalWORKs program. The bill would require counties to create a CalWORKs account within their local health and welfare trust funds. This bill would require moneys in the CalWORKs Subaccount to be deposited into the county CalWORKs accounts, and would require the Department of Finance to annually develop a monthly allocation schedule to be used by the Controller in making each county's allocation of funds from the CalWORKs Subaccount, as specified. This bill, for the 2009–10 fiscal year, would require $300,000,000 of the funds in the Sales Tax Account of the Local Revenue Fund to be allocated to the CalWORKS Subaccount in that account, before making any allocations to the other subaccounts in that fund. The bill would reduce the state's share of costs for CalWORKs aid grant costs to 89% to reflect this allocation. For subsequent fiscal years, an amount of funds from the Sales Tax Account would be required, in accordance with a prescribed formula, to be allocated to the CalWORKs Subaccount, prior to any allocations being made to other subaccounts in the Sales Tax Account, for allocation to counties to pay for an adjustment in the counties' share of aid grant costs, required to be made pursuant to the bill, that would reflect the amount of this allocation. Because the reduction in the percentage of the state CalWORKs contribution would result in an increase in the required county contribution, this bill would impose a state-mandated local program. By increasing deposits into the continuously appropriated Local Revenue Fund, the bill would make an appropriation. (3) 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 19, 2008. This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on December 19, 2008, pursuant to the California Constitution. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.