HomeMy WebLinkAbout10P SB1212 (Ducheny) - HousingCITY OF PALM DESERT
COMMUNITY SERVICES DEPARTMENT
STAFF REPORT
REQUEST: REQUEST FOR CONSIDERATION OF LEGISLATIVE REVIEW
COMMITTEE ACTION ON SB1212 (DUCHENY) AT ITS MEETING
OF MARCH 16, 2004.
DATE: April 8, 2004
CONTENTS: SB1212 LANGUAGE
Recommendation:
By Minute Motion, concur with the action taken by the Legislative Review Committee at its
meeting of March 16, 2004, and direct staff to prepare a letter of opposition for the Mayor's
signature with regard to SB1212 (Ducheny) relative to Local Govemment Revenue
Balancing Act.
Executive Summary:
Passage of SB1212 would allow diversion of funds owed to local jurisdictions with regard to
vehicle licenses, property taxes, and motor vehicle fuel taxes.
Background:
The Vehicle License Fee Law establishes, in lieu of any ad valorem property tax upon
vehicles, an annual license fee for any vehicle subject to registration in this state. Existing
property tax law provides for homeowners exemption in the amount of $7,000.00 of the full
value of the dwelling, and the motor vehicle fuel tax imposes a tax of $.18 per gallon on
distributors of motor vehicle fuel. Passage of SB1212 would, beginning in the 2005-2006
fiscal year, eliminate the payments to counties and cities that are required under these
various provisions and would require instead that each county and city annually receive
beginning that year a base amount determined with reference to the payments received
under these provisions by these entities in the 2003-2004 fiscal year.
SB1212 Local Government Review Balancing Act
April 8, 2004
Page 2
The City of Palm Desert opposes any diversion of fees owed to it to fund public safety and
transportation programs and services. Therefore, the Legislative Review Committee
recommends that the City Council oppose SB1212 and direct staff to prepare a letter
stating that position to appropriate Legislators for the Mayor's signature.
PATRICIA SCULLY
PAUL GIBSON
SENIOR MANAGEMENT A ALYST DIRECTOR OF FINANCE/
CITY TREASURER
1 SHEILA R. GLIG
ASSISTANT CITY AGER
S L. ORT GA
ANAGER
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In bill text the following has special meaning
underline denotes added text
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2003 CA S 1212
AUTHOR: Ducheny
VERSION: Introduced
VERSION DATE: 02/11/2004
SENATE BILL No. 1212
INTRODUCED BY Senator Ducheny
FEBRUARY 11, 2004
An act to amend Sections 16265.2 and 29100.6 of the Government Code, to amend Section 10754 of,
to amend and repeal Section 11000 of, and to add Article 3.5 (commencing with Section 97.7) to Part
0.5 of Division 1 of, the Revenue and Taxation Code, and to add Section 2129 to the Streets and
Highways Code, relating to local government finance, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 1212, as introduced, Ducheny. Local government finance: Local Government Revenue Balancing
Act.
The Vehicle License Fee (VLF) Law establishes, in lieu of any ad valorem property tax upon
vehicles, an annual license fee for any vehicle subject to registration in this state in the amount of 2% of
the market value of that vehicle, as specified. The VLF Law offsets this amount by 67.5% for vehicle
license fees with a final due date on or after July 1, 2001. Existing law requires the Controller, upon
receipt of monthly notification from the Department of Motor Vehicles, to transfer into specified funds
in the General Fund an amount equal to those amounts necessary to reimburse local governments for
losses resulting from the VLF offset.
Existing property tax law provides, pursuant to the California Constitution, for a homeowners'
exemption in the amount of $7,000 of the full value of a "dwelling," as defined, and requires the
Legislature to reimburse local governments for revenue losses resulting from this exemption.
The Motor Vehicle Fuel Tax Law imposes a tax of $0.18 per gallon on distributors of motor vehicle
fuel, as defined. Existing law allocates a portion of the revenues derived from this tax to various
governmental entities, including counties and cities.
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This bill would. beginning with the 2005-06 fiscal year, eliminate the payments to counties and cities
that are required under these various provisions. This bill would instead require that each county and
city annually receive. beginning with the 2005-06 fiscal year, a base amount determined with reference
to the payments received under these provisions by these entities in the 2003-04 fiscal year, plus,
beginning with the 2006-07 fiscal year, a share of the growth in regionwide tax base. as defined. This
bill would require that these substitute payments be made through a combination of General Fund
revenues, determined with reference to a specified sales and use tax rate, and a portion of the ad valorem
property tax revenues collected in a county that would otherwise be allocated among school entities in
that county. This bill would also make conforming changes to related provisions.
By requiring that a portion of the substitute payments previously described be made from the state's
General Fund, this bill would make an appropriation.
By imposing additional duties on county auditors in the annual allocation of ad valorem property tax
revenues, this bill would impose a state -mandated local program.
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.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes. State -mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 16265.2 of the Government Code is amended to read:
16265.2. As used in this chapter:
(a) "County" means a county and a city and county.
(b) "County costs of eligible programs" means the amount of money other than federal and state
funds, as reported by the State Department of Social Services to the Department of Finance or as derived
from the Controller's "Annual Report of Financial Transactions Concerning Counties of California," that
each county spends for each of the following:
(1) The Aid to Families with Dependent Children for Family Group and Unemployed Parents
programs plus county administrative costs for each program minus the county's share of child support
collections for each program, as described in Sections 10100, 10101, and 11250 of, and subdivisions (a)
and (b) of Section 15200 of, the Welfare and Institutions Code.
(2) The county share of the cost of service provided for the In -Home Supportive Services Program, as
described in Sections 10100, 10101, and 12306 of the Welfare and Institutions Code.
(3) The community mental health programs as described in Section 5705 of the Welfare and
Institutions Code.
(4) The county share of the Food Stamp Program, as described in Section 18906.5 of the Welfare and
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Institutions Code.
(c) "County costs of justice programs" means the amount of money other than federal and state funds,
as reported in the Controller's "Annual Report of Financial Transactions Concerning Counties of
California," that each county spends for each of the following:
(1) Superior courts.
(2) District attorney.
(3) Public defender.
(4) Probation.
(5) Correctional facilities.
"County costs of justice programs" does not include any costs eligible for reimbursement to the
county pursuant to Chapter 3 (commencing with Section 15200) of Part 6 of Division 3.
(d) "General purpose revenues" means revenues received by a county whose purpose is not restricted
by state law to a particular purpose or program, as reported in the Controller's "Annual Report of
Financial Transactions Concerning Counties of California." "General purpose revenues" are limited to
all of the following:
(1) Property tax revenues, exclusive of those revenues dedicated to repay voter approved
indebtedness, received pursuant to Part 0.5 (commencing with Section 50) of Division 1 of the Revenue
and Taxation Code, or received pursuant to Section 33401 of the Health and Safety Code.
(2) Sales tax revenues received pursuant to Part 1 (commencing the Section 6001) of Division 2 of the
Revenue and Taxation Code.
(3) Any other taxes levied by a county.
(4) Fines and forfeitures.
(5) Licenses, permits, and franchises.
(6) Revenue derived from the use of money and property.
(7) Vehicle license fees received pursuant to Section 11005 of the Revenue and Taxation Code.
(8) Trailer coach fees received pursuant to Section 11003.3 of the Revenue and Taxation Code.
(9) Revenues from cigarette taxes received pursuant to Part 13 (commencing with Section 30001) of
Division 2 of the Revenue and Taxation Code.
(10) Revenue received as open -space subventions pursuant to Chapter 3 (commencing with Section
16140) of Part 1.
(11) Revenue received as homeowners' property tax exemption subventions pursuant to Chapter 2
(commencing with Section 16120) of Part 1 and revenue received in lieu of that revenue pursuant to
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Article 3.5(commencing with Section 97.7) of Part 0.5 of Division _1-_.of the Revenueand_Taxation
Code .
(12) General revenue sharing funds received from the federal government.
"General purpose revenues" does not include revenues received by a county pursuant to Chapter 3
(commencing with Section 15200) of Part 6 of Division 3.
SEC. 2. Section 29100.6 of the Government Code is amended to read:
29100.6. 9rr(a)_(1) Except as otherwise provided in subdivision (b), on or before November 1 of each
year each county auditor shall file with the Controller in such form as the Controller directs, a statement
of the amounts of exempt values granted for the homeowners' property tax exemption under subdivision
(k) of Section 3 and Section 25 of Article XIII of the California Constitution for the county. each city
and school district or portion thereof within the county, each special district or subdivision or zone
thereof or portion thereof within the county, for which a tax levy is carried on the county assessment
roll. The auditor shall therein compute and show the total amount of ad valorem tax loss to the county
and the cities and districts resulting from the exemption and the statement shall claim such amount
against the state for payment of reimbursement.
-+e
(2)The board may, by resolution, extend on a permanent basis or for a limited period the date
specified by this seetfe -subdivision from November 1 to December 1.
(b) For the 2.005-06 fiscal year and each fiscal year thereafterrthe auditor of each county shall
provide inthe statement described in subdivision (aj only the following amounts:
(1)A statement of the amounts of exempt values granted for the homeowners' property_ tax
exemption under subdivision (k) of Section 3 and Section 25 of Article XIII of the California
Constitution for each school district or portion thereof within the county and each special district or
subdivision or zone thereof or portion thereof within the county for which a tax levy is carried on the
county assessment roll.
(2) A_computation by the auditor that shows thetotalamount of ad valorem tax loss to these districts
resulting_from the exemption and a claim for that amount against the state for payment of
reimbursement.
SEC. 3. Article 3.5 (commencing with Section 97.7) is added to Part 0.5 of Division 1 of the Revenue
and Taxation Code. to read:
Article 3.5 Local Government Revenue Balancing Act
97.7. For purposes of this article, all of the following apply:
(a) A "county base amount" means, with respect to a county, the sum of the following three amounts:
(1) The total amount of money appropriated to that county for the 2003-04 fiscaI year pursuant to
Schedule (4) of Item 9100-101-0001 of the Budget Act of 2003.
(2) The total amount of money that would have been appropriated to that county for the 2003-04
fiscal year pursuant to Sections 10754 and 11000 if, for that fiscal year, both of the following were true:
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(A) A finding was not made that insufficient moneys were available to be transferred from the
General Fund to fund the offset authorized by subparagraph (A) of paragraph (3) of subdivision (a) of
Section 10754.
(B) Item 9100-102-0001 of Section 2.00 of the Budget Act of 2003 was not operative in that fiscal
year.
(3) The total amount of revenue, derived in the 2003-04 fiscal year from the tax imposed under
Chapter 2 (commencing with Section 7360) of Part 2 of Division 2, that was appropriated to that county.
(b) A "city base amount" means, with respect to a particular city, the sum of the following three
amounts:
(1) The total amount of money appropriated to that city for the 2003-04 fiscal year pursuant to
Schedule (4) of Item 9100-101-0001 of the Budget Act of 2003.
(2) The total amount of money that would have been appropriated to that city for the 2003-04 fiscal
year pursuant to Sections 10754 and 11000 if, for that fiscal year, both of the following were true:
(A) A finding was not made that insufficient moneys were available to be transferred from the
General Fund to fund the offset authorized by subparagraph (A) of paragraph (3) of subdivision (a) of
Section 10754.
(B) Item 9100-102-0001 of Section 2.00 of the Budget Act of 2003 was not operative in that fiscal
year.
(3) The total amount of revenue, derived in the 2003-04 fiscal year from the tax imposed under
Chapter 2 (commencing with Section 7360) of Part 2 of Division 2, that was appropriated to that city.
(c) "Countywide base amount" means the total sum of the amounts described in subdivisions (a) and
(b) for a county and all cities in that county.
(d) "Property tax balancing percentage" means that percentage of the total amount of ad valorem
property tax revenue that was allocated to an Educational Revenue Augmentation Fund in a particular
county in the 2003-04 fiscal year pursuant to Chapter 6 (commencing with Section 95) that yields an
amount that equals the difference between the following amounts:
(1) The countywide base amount.
(2) The total amount of revenue that would have been derived under Part 1 (commencing with Section
6001) of Division 2 in that county in the 2003-04 fiscal year if the total tax rate imposed under that part
was one-half of 1 percent.
(e) "Growth in regionwide tax base" in a county means, with respect to any county, an amount equal
to the difference between the following two amounts:
(1) The sum of:
(A) The total amount of revenue that would have been derived under Part 1 (commencing with
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Section 6001) of Division 2 in that county in the immediately preceding fiscal year if the total tax rate
imposed under that part was one-half of 1 percent.
(B) The product of:
(i) The property tax balancing percentage.
(ii) The total amount of ad valorem property tax revenue that was allocated to an Educational
Revenue Augmentation Fund in that county in the immediately preceding fiscal year pursuant to
Chapter 6 (commencing with Section 95).
(2) The countywide base amount.
(f) (1) "County growth amount" means, with respect to a particular county. an amount equal to the
product of the following:
(A) A percentage equal to the percentage of the total amount of those revenues described in the
countywide base amount that was allocated to that county for the 2003-04 fiscal year.
(B) The growth in regionwide tax base.
(2) "Countywide growth balance" means, in a particular county, the difference between the following
two amounts:
(A) The growth in regionwide tax base.
(B) The county growth amount.
(3) "City growth share" means, with respect to a particular city, the product of the following:
(A) The percentage that the population of the city represents of the total population of the county in
which that city is located. For purposes of this subparagraph, "total population of the county" means the
total population in the incorporated areas of that county.
(B) The countywide growth balance.
(g) (1) The Controller shall determine the amounts described in subdivisions (a), (b). (c). and (d) on or
before January 15, 2005.
(2) The Controller shall determine the amounts described in subdivisions (e) and (f) on or before
September 1, 2006, and on or before September 1 of each year thereafter.
(3) To determine the population of counties and cities for purposes of subdivision (f), the Controller
shall use the later of the following:
(A) The most recent population estimates for counties and cities, as otherwise required or authorized
by law, that have been made by the population research unit in the Department of Finance.
(B) The most recent census validated by the population research unit in the Department of Finance.
97.71. (a) For the 2005-06 fiscal year, all of the following apply:
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(1) Each county shall receive its county base amount.
(2) Each city shall receive its city base amount.
(b) For purposes of subdivision (a), all of the following apply:
(1) There is hereby appropriated from the General Fund to the Controller an amount equal to the total
amount of revenue that would have been derived under Part 1 (commencing with Section 6001) of
Division 2 in the 2003-04 fiscal year if the total tax rate imposed under that part was one-half of 1
percent.
(2) The Controller shall allocate the amount described in paragraph (1) according to the following:
(A) The Controller shall determine the total amount of revenue that would have been derived under
Part 1 (commencing with Section 6001) of Division 2 in each county in the 2003-04 fiscal year if the
total tax rate imposed under that part was one-half of 1 percent.
(B) For each county, the Controller shall allocate the amount determined pursuant to subparagraph
(A) for that county among that county and each city in that county in accordance with each of these
entity's percentage share of the countywide base amount for the county in which these entities are
located.
(3) On or before January 1, 2006, the Controller shall notify the auditor of each county of the amount
of both of the following:
(A) Each of the allocations made pursuant to subparagraph (B) of paragraph (2).
(B) The amount required to be allocated, as provided in subdivision (c), among the county and each
city in the county to complete the payments described in subdivision (a) for each of these entities.
(c) On or before May 1, 2006, the county auditor shall reduce the total amount of ad valorem property
tax revenue allocated to the county Educational Revenue Augmentation Fund by an amount equal to the
sum total of the amounts described in subparagraph (B) of paragraph (3) of subdivision (b) and instead
allocate this amount among the county and each city in the county in accordance with each of these
entity's share of the total amount described in that provision.
97.72. (a) For the 2006-07 fiscal year and each fiscal year thereafter, all of the following apply:
(1) Each county shall receive both of the following:
(A) Its county base amount.
(B) Its county growth amount.
(2) Each city shall receive both of the following:
(A) Its city base amount.
(B) Its city growth share.
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(b) (1) Notwithstanding Section 13340 of the Government Code, there is hereby continuously
appropriated. on November 1 of each year, from the General Fund to the Controller an amount equal to
the total amount of revenue that would have been derived under Part 1 (commencing with Section 6001)
of Division 2 in the immediately preceding fiscal year if the total tax rate imposed under that part was
one-half of 1 percent.
(2) The Controller shall allocate the amount described in paragraph (1) in accordance with the
following:
(A) The Controller shall determine the total amount of revenue that would have been derived under
Part 1 (commencing with Section 6001) of Division 2 in each county in the immediately preceding fiscal
year if the total tax rate imposed under that part was one-half of 1 percent.
(B) For each county, the Controller shall allocate the amount determined pursuant to subparagraph
(A) for that county among that county and each city in that county in accordance with each of these
entity's percentage share of the sum of the following amounts in that county:
(i) The countywide base amount.
(ii) The growth in regionwide tax base.
(3) On or before January 1, the Controller shall notify the auditor of a qualified county of the amount
of both of the following:
(A) Each of the allocations made pursuant to subparagraph (B) of paragraph (2).
(B) The amount required to be allocated, as provided in subdivision (c), among the county and each
city in the county to complete the payments described in subdivision (a) for each of these entities.
(c) On or before each May 1, the county auditor shall reduce the total amount of ad valorem property
tax revenue allocated to the county Educational Revenue Augmentation Fund by an amount equal to the
sum total of the amounts described in subparagraph (B) of paragraph (3) of subdivision (b) and instead
allocate this amount among the county and each city in the county in accordance with each of these
entity's share of the total amount described in that provision.
(d) This section shall become operative on July 1, 2006.
97.73. For the 2005-06 fiscal year and each fiscal year thereafter, the amounts determined under
subdivision (a) of Section 96.1, or any successor to that provision, may not reflect any portion of any
property tax revenue reallocation required by this article for a preceding fiscal year.
97.74. The Legislature finds and declares that the revenue allocations that are required by this article
to counties and cities constitute reimbursements to these entities for purposes of Section 25 of Article
XIII of the California Constitution.
SEC. 4. Section 10754 of the Revenue and Taxation Code is amended to read:
10754. (a) Notwithstanding any other provision of law, the total amount of the vehicle license fee
otherwise required with respect to a vehicle shall be offset in accordance with those provisions set forth
below that are operative pursuant to subdivision (b):
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(1) (A) For any initial or original registration of any vehicle, never before registered in this state. for
which the final due date for the license fee is on or after January 1 of any calendar year for which this
paragraph is operative, and for any renewal of registration with an expiration date on or after January 1
of any calendar year for which this paragraph is operative, the department shall offset the total amount
of fees otherwise due at the time of registration of that vehicle by an amount equal to 25 percent of the
amount computed pursuant to Section 10752 or 10752.1, or Section 18115 of the Health and Safety
Code.
(B) Upon proper payment of license fees to the Department of Motor Vehicles, the amount of the
offset for each vehicle shall be transferred into the Motor Vehicle License Fee Account in the
Transportation Tax Fund. and into the Local Revenue Fund, pursuant to Section 11000 or Section
11000.1, as applicable.
(C) During any period in which insufficient moneys are available to be transferred from the General
Fund to fully fund the offsets required by subparagraph (A), within 90 days of a reduction of funding,
the department shall reduce the amount of each offset computed pursuant to that subparagraph by
multiplying that amount by the ratio of the amount of moneys actually available to be transferred from
the General Fund to pay for those offsets to the amount of moneys that is necessary to fully fund those
offsets.
(2) (A) For any initial or original registration of any vehicle, never before registered in this state, for
which the final due date for the license fee is on or after January 1 of any calendar year for which this
paragraph is operative, and for any renewal of registration with an expiration date on or after January 1
of any calendar year for which this paragraph is operative, the department shall offset the total amount
of fees otherwise due at the time of registration of that vehicle by an amount equal to 35 percent of the
amount computed pursuant to Section 10752 or 10752.1, or Section 18115 of the Health and Safety
Code.
(B) Upon proper payment of license fees to the Department of Motor Vehicles, the amount of the
offset for each vehicle shall be transferred into the Motor Vehicle License Fee Account in the
Transportation Tax Fund, and into the Local Revenue Fund, pursuant to Section 11000 or Section
11000.1. as applicable.
(C) During any period in which insufficient moneys are available to be transferred from the General
Fund to fully fund the offsets required by subparagraph (A), within 90 days of a reduction of funding,
the department shall reduce the amount of each offset computed pursuant to that subparagraph by
multiplying that amount by the ratio of the amount of moneys actually available to be transferred from
the General Fund to pay for those offsets to the amount of moneys that is necessary to fully fund those
offsets.
(3) (A) For any initial or original registration of any vehicle, never before registered in this state, for
which the final due date for the license fee is on or after January 1 of any calendar year for which this
paragraph is operative, and for any renewal of registration with an expiration date on or after January 1
of any calendar year for which this paragraph is operative, the department shall offset the total amount
of fees otherwise due at the time of registration of that vehicle by an amount equal to 671/2 percent of
the amount computed pursuant to Section 10752 or 10752.1, or Section 18115 of the Health and Safety
Code.
(B) Upon proper payment of license fees to the Department of Motor Vehicles, the amount of the
offset for each vehicle shall be transferred into the Motor Vehicle License Fee Account in the
Transportation Tax Fund, and into the Local Revenue Fund, pursuant to Section 11000 or Section
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11000.1. as applicable.
(C) During any period in which insufficient moneys are available to be transferred from the General
Fund to fully fund the offsets required by subparagraph (A), within 90 days of a reduction in funding.
the department shall reduce the amount of each offset computed pursuant to that subparagraph by
multiplying that amount by the ratio of the amount of moneys actually available to be transferred from
the General Fund to pay for those offsets to the amount of moneys that is necessary to fully fund those
offsets.
(D) (i) The Controller shall, no later than August 15, 2006. transfer from the General Fund to the
credit of the Motor Vehicle License Fee Account in the Transportation Tax Fund amounts equal to those
moneys that are otherwise required. pursuant to subparagraph (B), to be transferred into that account,
that are not so transferred into that account during the 2003-04 fiscal year as a result of the operation of
subparagraph (C). The transferred moneys shall be allocated from the account in the manner as
otherwise specified by law for the allocation of moneys from that account.
(ii) The Controller, with the approval of the Department of Finance, may advance from the Motor
Vehicle License Fee Account in the Transportation Tax Fund to any county or city that entity's share of
the vehicle license fee revenues transferred under clause (i), if that entity demonstrates that it will
experience a hardship if the advance is not made. For purposes of this clause, those circumstances
demonstrating that a county or city will experience a "hardship," include, but are not limited to, the
following:
(I) A county or city that has pledged its share of vehicle license fee revenues as security for any
indebtedness that. as a result of the delay of the disbursement, will compromise its ability to repay that
indebtedness.
(II) A county's or city's share of vehicle license fee revenues, as determined by the Controller, exceeds
37 percent of that entity's general revenue. In the case of a county, the Controller shall make the required
calculation of that entity's general revenue based on information derived from the State of California
Counties Annual Report for the 2000-01 fiscal year. In the case of a city, the Controller shall make the
required calculation based on information derived from the State of California Cities Annual Report for
the 2000-01 fiscal year.
(III) A city that is newly incorporated that is entitled to the allocations of vehicle license fee revenues
authorized by Section 11005.3.
(iii) Any funds advanced pursuant to a finding of hardship pursuant to clause (ii) shall be disbursed on
the 10th day of the calendar month following findings of hardship. The total aggregate amount
transferred based on findings of hardship pursuant to clause (ii) may not exceed forty million dollars
($40,000,000).
(iv) For purposes of Section 15 of Article XI of the California Constitution, the transfers required to
be made by this subparagraph shall constitute successor taxes that are otherwise required to be allocated
to counties and cities, and as successor taxes, the obligation to make those transfers as required by this
subparagraph may not be extinguished nor disregarded in any manner that adversely affects the security
of, or the ability of, a county or city to pay the principal and interest on any debts or obligations that
were funded or secured by that city's or county's allocated share of motor vehicle license fee revenues.
(4) Foran_y initial or original registration of any vehicle, never before registered in this state, for
which the final due date for the license fee is on or after January 1 of any calendaryearfor which this
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paragraph is operative, and for any renewal of registration with an expiration date on or after January: 1
of any calendaryear for which this paragraph is operative, the department shall offset the total amount
of fees otherwise_ due at the time of registration of that vehicle by an amount equal to 67.5.percent of the
amount computed pursuant to Section 10752 or 10752.1, or Section 18115 of the Health and Safety
Code.
(b) The offset provisions set forth in subdivision (a) shall be operative as provided by the following:
(1) Paragraph (1) of subdivision (a) shall be operative for vehicle license fees with a final due date in
the calendar year beginning on January 1, 1999.
(2) Paragraph (2) of subdivision (a) shall be operative for vehicle license fees with a final due date on
or after January 1, 2000, and before July 1, 2001.
(3) Paragraph (3) of subdivision (a) shall be operative for vehicle license fees with a final due date on
or after July 1. 2001.
(4) Paragraph (4) of subdivision (a) is operative for vehicle license fees with a final due date on or
after July 1. 2005.
(c) (1) For purposes of this section, "department" means the Department of Motor Vehicles with
respect to a vehicle license fee offset for a vehicle subject to registration under the Vehicle Code, and
the Department of Housing and Community Development with respect to a vehicle license fee offset for
a manufactured home, mobilehome, or commercial coach described in Section 18115 of the Health and
Safety Code.
(2) For purposes of this section, the "final due date" for a license fee is the last date upon which that
fee may be paid without being delinquent.
SEC. 5. Section 11000 of the Revenue and Taxation Code is amended to read:
11000. (a) Beginning on the operative date of Section 9551.2 of the Vehicle Code, the Controller shall
do both of the following:
(1) Transfer from the General Fund to the Motor Vehicle License Fee Account in the Transportation
Tax Fund an amount equal to 75.67 percent of the amount of offsets that are applied by the department
pursuant to Sections 9551.2 and 9554.1 of the Vehicle Code.
(2) Transfer from the General Fund to the Local Revenue Fund, established pursuant to Section 17600
of the Welfare and Institutions Code, in the Transportation Tax Fund an amount equal to 24.33 percent
of the amount of offsets that are applied by the department pursuant to Sections 9551.2 and 9554.1 of
the Vehicle Code.
(b) The department shall notify the Controller of the total amount of the offsets applied by the
department pursuant to Section 9551.2 of the Vehicle Code concurrently with the department's transfer
for deposit of vehicle license fee revenues as required by law.
(c) For purposes of Section 15 of Article XI of the California Constitution, the General Fund revenues
that are transferred as required by paragraph (1) of subdivision (a) shall constitute successor tax
revenues to the vehicle license fees offset in this part and shall be allocated in the same manner as
revenue derived from taxes imposed pursuant to this part.
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(d) For purposes of Article 1 (commencing with Section 25350) of Chapter 5 of Part 2 of Division 2
of Title 3 of the Government Code, Section 11003, and Chapter 6 (commencing with Section 17600) of
Part 5 of Division 9 of the Welfare and Institutions Code, the General Fund transfer amounts specified
in paragraphs (1) and (2) of subdivision (a) are hereby deemed to be vehicle license fee proceeds and
vehicle license fee revenues. These General Fund transfer amounts are subject to the same pledges, liens
and encumbrances, and priorities set forth in Section 25350 and following of, Section 53584 and
following of, and Section 5450 and following of, the Government Code.
(e) Nothing in this section amends or intends to amend or impair Section 25350 and following of,
Section 53584 and following of, the Government Code, or any other statute dealing with the interception
of funds.
_(f) This section is repealed on July 1, 2005.
SEC. 6. Section 2129 is added to the Streets and Highways Code, to read:
2129. (a) Notwithstanding any other provision of law, for the 2005-06 fiscal year and each fiscal year
thereafter, revenues derived from the tax imposed pursuant to Chapter 2 (commencing with Section
7360) of Part 2 of Division 2 may not be allocated to a county or a city.
(b) Those revenues that are not allocated as a result of subdivision (a) shall instead be transferred to
the State Highway Account in the State Transportation Fund.
SEC. 7. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because this act provides for offsetting savings to local agencies or school
districts that result in no net costs to the local agencies or school districts, within the meaning of Section
17556 of the Government Code.
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