AB 10

Bill Subjects

Abstract

(1) Existing law, pursuant to Proposition 116 of 1990, creates the Public Transportation Account as a trust fund in the State Transportation Fund, provides that revenues are to be deposited in that account from specified portions of the sales taxes on gasoline and diesel fuel, and provides that moneys in the account are available for expenditure only for transportation planning and mass transportation purposes. Certain provisions of Proposition 116 may be amended by the Legislature only by a 2 /3 vote of both houses and if the amendment is consistent with the purposes of the provision being amended. Existing law creates the Mass Transportation Fund in the State Treasury and provides that for the 2009–10 to 2012–13 fiscal years, inclusive, all of gasoline sales tax revenues commonly known as the "spillover" that would otherwise be deposited in the Public Transportation Account shall be deposited instead in that fund. Existing law specifies the transportation purposes that may be funded by the fund, including payment of debt service on transportation general obligation bonds by transfer of funds from the Mass Transportation Fund to the Transportation Debt Service Fund. For the 2008–09 fiscal year, $939,408,000 of "spillover" revenues are to be transferred to the Mass Transportation Fund. Existing law creates the Transportation Debt Service Fund in the State Treasury for the purpose, among other things, of using transportation revenues rather than the General Fund for the payment of debt service on transportation bonds or to reimburse the General Fund in that regard. This bill, for the 2008–09 fiscal year, would instead require $1,041,234,000 of the "spillover" revenues to be transferred to the Mass Transportation Fund. This bill, for the 2009–10 fiscal year, would provide that $225,044,000 from the Public Transportation Account may be used for the purpose of reimbursing the General Fund for current debt service payments on transit-related general obligation bonds. The bill would also provide for transfer from the Mass Transportation Fund to the Transportation Debt Service Fund of any amount of the "spillover" funds received during the 2009–10 to 2012–13 fiscal years, inclusive, necessary to offset the cost of debt service payments made from the General Fund during any fiscal year for transportation-related general obligation bond expenditures. (2) Existing law establishes the Aeronautics Account in the State Transportation Fund. Existing law imposes a per gallon jet fuel tax on aircraft jet fuel dealers and requires that the funds be deposited in the State Treasury to the credit of the Motor Vehicle Fuel Account in the Transportation Tax Fund. Existing law requires that moneys deposited to the credit of the Motor Vehicle Fuel Account attributable to the distribution of motor vehicle fuel for use in propelling an aircraft in the state be transferred to the Aeronautics Account in the State Transportation Fund. Existing law requires funds in the Aeronautics Account to be used to pay the Controller and the State Board of Equalization for their pro rata costs in carrying out the duties imposed on them by the Motor Vehicle Fuel Tax Law and to pay the Department of Transportation for the administration of the State Aeronautics Act. Existing law allows the remaining balance of moneys in the account to be used for preapproved eligible projects that are for airport and aviation purposes, to make allocations to public entities for the aquisition or development of airports if the department determines that it is feasible, and to allow the California Transportation Commission to provide local matching funds for federal Airport Improvement Program Grants. This bill would suspend these grants and funding programs for the 2009–10 fiscal year. The bill would require $4,000,000 to be transferred from the Aeronautics Account to the General Fund, upon the order of the Director of Finance. These provisions would be repealed on January 1, 2011. (3) Existing law, the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006, authorizes the issuance of general obligation bonds for various transportation purposes, including $2,000,000,000 for local street and road improvement, congestion relief, and traffic safety. Existing law requires a city or city and county that receives an allocation of those funds in the 2008–09 fiscal year to agree to encumber the funds before July 1, 2009. This bill would instead require a city or city and county that receives an allocation of those funds in the 2008–09 fiscal year to agree to encumber the funds before July 1, 2010. (4) Existing law establishes as base fee amounts certain driver's license and identification card fees imposed by the Department of Motor Vehicles pursuant to specified provisions of the Vehicle Code. Existing law requires, on January 1 of every year, the department to adjust those base fee amounts by increasing each fee in an amount equal to the increase in the California Consumer Price Index for the prior year, as calculated by the Department of Finance, with amounts equal to or greater than $0.50 rounded to the next highest whole dollar. Existing law also provides that a statutory increase to the fees is deemed to be a change to the base fee. This bill would include within this scheme specified fee provisions applicable to restricted firefighter licenses and commercial driver's licenses and would increase, on or after January 1, 2010, the amount of these and other fees subject to this scheme. (5) This bill would make other related changes. (6) 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 July 1, 2009. This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on July 1, 2009, pursuant to the California Constitution. (7) This bill would declare that it is to take effect immediately as an urgency statute.