HomeMy WebLinkAboutLegislative Review - ACA 4 (Plescia & Harman) - Transportation FundingCITY OF PALM DESERT
COMMUNITY SERVICES DEPARTMENT
STAFF REPORT
REQUEST: CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE
ACTION ON ACA 4 (PLESCIA AND HARMAN) AT ITS MEETING
OF JANUARY 18, 2005
DATE: January 27, 2005
CONTENTS: ACA 4 Language
Recommendation:
By Minute Motion, concur with the action taken by the Legislative Review Committee at its
meeting of January 18, 2005, and direct staff to prepare a letter of support for the Mayor's
signature with regard to ACA 4 (Plescia and Harman) relative to transportation funding.
Executive Summary:
Passage of ACA 4 would prohibit the Governor and the Legislature from suspending the
transfer of funds from the General Fund to the Transportation Investment Fund as currently
provided for in the California Constitution.
Background:
The California Constitution requires, commencing with the 2003/04 fiscal year that sales
taxes on motor vehicle fuel that are deposited into the General Fund be transferred to the
Transportation Investment Fund for allocation to various transportation projects. However,
Article XIX B authorizes the Governor and the State Legislature to suspend this transfer
during fiscal emergencies pursuant to a proclamation by the Governor and the enactment.
of a statute by a 2/3 vote in each house of the Legislature. ACA 4 would delete the
provision currently contained in the Constitutional Amendment which would allow the
Governor and the Legislature the authority to suspend this transfer.
Transportation infrastructure, repairs, maintenance, and improvement needs have reached
a critical stage throughout the State of California and it is anticipated that the need to
expand, improve, repair, and maintain public roadways in a manner which provides for the
safety of the State's residents and visitors will increase with time rather than decrease.
This Constitutional Amendment would ensure that these expansions, repairs, maintenance,
and improvements would be funded in a manner approved by the voters by prohibiting the
Governor and the Legislature from diverting funds to any other program or project.
Therefore, the Legislative Review Committee recommends that the City Council support
ACA 4 and direct staff to prepare a letter stating that position to appropriate legislators for
the Mayor's signature.
PATRICIA SCULLY, CFEE
SENIOR MANAGEMENT AN
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SHEILA R. GILLIGA
ASSISTANT CITY fiRAGER/P10
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PAUL S. GIBSON
DIR OF FINANCE/CITY TREASURER
CARLOS L. ` EGA
CITY MANA " ER
ACA 4 Assembly Constitutional Amendment - INTRODUCED Page 1 of 2
BILL NUMBER: ACA 4 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Members Plescia and Harman
(Coauthor: Assembly Member Bogh)
DECEMBER 6, 2004
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 4, as introduced, Plescia. 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 into 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 by the Governor and the enactment of a statute by a 2/3
vote in each house of 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. Appropriation: 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 2005-06 Regular Session
commencing on the sixth day of December 2004, 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 as follows:
That Section 1 of Article XIX B thereof is amended 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 the Revenue and
Taxation Code as that section read on the p rative dat f
this articl March 6, 2002 .
(2) For the 2008-09 fiscal year and each fiscal year thereafter,
http://info.sen.ca.gov/pub/bill/asm/ab_0001-0050/aca 4 bill_20041206 introduced.html 12/9/2004
ACA 4 Assembly Constitutional Amendment - INTRODUCED
Page 2 of 2
moneys in the Transportation Investment Fund shall be allocated
solely for the following purposes:
(A) Public transit and mass transportation.
(B) Transportation capital improvement projects, subject to the
laws governing the State Transportation Improvement Program, or any
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 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) Th transfer f rovosuas from tho Cosa al mod- f th Stat t
th Transp rtati n Inv etm nt Fund purcuant t cubdivisi n (a) may
b sucp nd d, in wh ' r in part, f r a ficcal y ar if b th f th
d oll wing c nditi nc ar m t:
(1) Th G v rn r has issu d a rr clamati n that d clares that th
transfer f revonuos pursuant t subdivisi n (a) will r suit in a
significant n gativ ficcal impact n th rang f functi nc f
▪ „ rnm nt fund d ,by the C 'n ral Fund f the St1J-e
rehabilitation,
conducted by cities, including
rehabilitation,
conducted by counties,
(2) Th L giclatur nacts by statute, pursuant t a bill pass d
in ach h us f th L gislatur by r llcall v to nt r d in th
j urnal, tw -thirds f th m mb rehip c ncurring, a sucp nci n f r
that fiscal y ar f th transfer f revenuos pursuant t subdivisi n
(a), pr vi ' that th bill d s n t c ntain any th r unr lat d
pr visi n.
( )
(d) 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 4_bill_20041206_introduced.html 12/9/2004