HomeMy WebLinkAboutLegislative Review - ACA29 (Harman, Lowenthal, Richman) - Transportation Invstmnt Fund5-3
CITY CITY OF PALM DESERT
COMMUNITY SERVICES DEPARTMENT
STAFF REPORT
REQUEST: REQUEST FOR CONSIDERATION OF LEGISLATIVE REVIEW
COMMITTEE ACTION ON ACA29 (HARMAN, LOWENTHAL,
RICHMAN) AT ITS MEETING OF APRIL 27, 2004.
DATE: May 13, 2004
CONTENTS: ACA29 LANGUAGE
Recommendation:
By Minute Motion, concur with the action taken by the Legislative Review Committee at its
meeting of April 27, 2004, and direct staff to prepare a letter of support for the Mayor's
signature with regard to ACA29 (Harman, Lowenthal, Richman) relative to the
Transportation Investment Fund.
Executive Summary:
Passage of ACA29 would delete a provision in current law that authorizes the Governor
and the Legislature to suspend the transfer of revenues from the General Fund to the
Transportation Investment Fund.
Background:
Article XIX(B) of the California Constitution requires that sales taxes on motor vehicle fuels
that are deposited into the General Fund be transferred to the Transportation Investment
Fund for allocation to various transportation purposes. It also authorizes this transfer to the
Transportation Investment Fund to be suspended in whole or in part for a fiscal year during
a fiscal emergency. Passage of ACA29 would delete the provision authorizing the
Governor and the Legislature to suspend the transfer of revenues from the General Fund
to the Transportation Investment Fund for a fiscal year during a fiscal emergency.
As California grows in population and continues to draw tourists and visitors the need for
adequate transportation programs, infrastructure, and facilities becomes more critical. This
Assembly Constitutional Amendment would prohibit the authorization to suspend the
transfer of funds designated for these programs to make needed improvements, provide
infrastructure, make these improvements, and fund transportation programs.
ACA29 Transportation Investment Fund
May 13, 2004
Page 2
Therefore, the Legislative Review Committee recommends that the City Council support
ACA29 and direct staff to prepare a letter stating that position to appropriate legislators for
the Mayor's signature.
PATRICIA SCULLY
PAUL GIBSON
SENIOR MANAGEMENT ANALYST DIRECTOR OF FINANCE/
CITY TREASURER
SHEILA R. GIL GAN
ASSISTANT CITY M GER
CARLOS L. ORTfi A
CITY MANAGER
ACA 29 Assembly Constitutional Amendment - INTRODUCED
Page 1 of 2
BILL NUMBER: ACA 29 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Members Harman, Lowenthal, and Richman
(Coauthors: Assembly Members Bates, Benoit, Berg, Canciamilla,
Daucher, Dutra, Shirley Horton, La Malfa, Liu, Matthews, Negrete
McLeod, Plescia, and Wolk)
MARCH 11, 2004
Assembly Constitutional Amendment No. 29--A resolution to propose
to the people of the State of California an amendment to the
Constitution of the State, by amending Section 1 of Article XIX B
thereof, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
ACA 29, as introduced, Harman. Transportation Investment Fund.
Article XIX B of the California Constitution requires, commencing
with the 2003-04 fiscal year, that sales taxes on motor vehicle fuel
that are deposited in the General Fund be transferred to the
Transportation Investment Fund for allocation to various
transportation purposes. Article XIX B authorizes this transfer to
the Transportation"Investment Fund to be suspended in whole or in
part for a fiscal year during a fiscal emergency pursuant to a
proclamation issued by the:Governor and the enactment of a statute by
a 2/3 vote of both houses bf the Legislature if the statute does not
contain any unrelated provision.
This measure would delete the provision authorizing the Governor
and the Legislature to suspend the transfer of revenues from the
General Fund to the Transportation Investment Fund for a fiscal year
during a fiscal emergency.
Vote: 2/3. Appropriatign: no. Fiscal committee: no.
State -mandated local program: no.
Resolved by the Assembly, the Senate concurring, That the
Legislature of the State of California at its 2003-04 Regular Session
commencing on the second day of December 2002, two-thirds of the
membership of each house concurring, hereby proposes to the people of
the State of California that the Constitution of the State be
amended by amending Section 1 of Article XIX B thereof, to read:
SECTION 1. (a) For the 2003-04 fiscal year and each fiscal
year thereafter, all moneys that are collected during the fiscal year
from taxes under the Sales and Use Tax Law (Part 1 (commencing with
Section 6001) of Division 2 of the Revenue and Taxation Code), or any
successor to that law, upon the sale, storage, use, or other
consumption in this State of motor vehicle fuel, and that are
deposited in the General Fund of the State pursuant to that law,
shall be transferred to the Transportation Investment Fund, which is
hereby created in the State Treasury.
(b) (1) For the 2003-04 to 2007-08 fiscal years, inclusive, moneys
in the Transportation Investment Fund shall be allocated, upon
appropriation by the Legislature, in accordance with Section 7104 of
http://info.sen.ca.gov/pub/bill/asm/ab_0001-0050/aca 29_bill_20040311_introduced.html 3/14/2004
ACA 29 Assembly Constitutional Amendment - INTRODUCED Page 2 of 2
the Revenue and Taxation Code as that section read on
cperativ dat f this articlo March 6, 2002 .
(2) For the 2008-09 fiscal year and each fiscal
moneys in the Transportation Investment Fund shall
solely for the following purposes:
(A) Public transit and mass transportation.
(B) Transportation capital improvement projects,
laws governing the State Transportation Improvement
successor to that program.
(C) Street and highway maintenance,
reconstruction, or storm damage repair
a city and county.
(D) Street and highway maintenance,
reconstruction, or storm damage repair
including a city and county.
(c) For the 2008-09 fiscal year and
year thereafter,
be allocated
subject
Program,
rehabilitation,
conducted by cities,
to the
or
any
including
rehabilitation,
conducted by counties,
each fiscal year thereafter,
moneys in the Transportation Investment Fund shall be allocated, upon
appropriation by the Legislature, as follows:
(A) Twenty percent of the moneys for the purposes set forth in
subparagraph (A) of paragraph (2) of subdivision (b).
(B) Forty percent of the moneys for the purposes set forth in
subparagraph (B) of paragraph (2) of subdivision (b).
(C) Twenty percent of the moneys for the purposes set forth in
subparagraph (C) of paragraph (2) of subdivision (b).
(D) Twenty percent of the moneys for the purpose set forth in
subparagraph (D) of paragraph (2) of subdivision (b).
(d)
re. ,es deem
of the fnl e�iing een�ition ar-e- ems
(1) The C Tema r laas issa od a proclaAaticlatee th-,t th^
transfer f r venues pursuant to suladivisi n (a) will r sult in a
,si�ni fl nt nsgat, �, sera' � ae��n the �aaage-a f t ' n
g v rnm nt fund by th G n ral Fund f th Stat
(2) Tho Le islatere eeacts lay statute, �rsua- t
h h ,a ^� th^ T ia-t a k ill all v tee, t- in- h
j urnal, tw -thirds f th membership- c ncurring, a susp nci n f r
that fiscal y ar f th transfer f rev nu s pursuant t subdivici n
(a) , pr vid d that th bill does sot ceetain aaay ether r^' ,}^d
pr visi n.
( ) The Legislature may enact a statute that modifies
the percentage shares set forth in subdivision (c) by a bill passed
in each house of the Legislature by rollcall vote entered in the
journal, two-thirds of the membership concurring, provided that the
bill does not contain any other unrelated provision and that the
moneys described in subdivision (a) are expended solely for the
purposes set forth in paragraph (2) of subdivision (b).
http://info.sen.ca.gov/pub/bill/asm/ab_0001-0050/aca 29_bill 20040311 introduced.html 3/14/2004