HomeMy WebLinkAboutLegislative Review - ACA 9 (Bogh) - Motor Vehicle Fuel Sales TaxCITY OF PALM DESERT
COMMUNITY SERVICES DEPARTMENT
STAFF REPORT
REQUEST: CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE
ACTION ON ACA 9(BOGH) AT ITS MEETING OF FEBRUARY 22,
2005
DATE: March 10, 2005
CONTENTS: ACA 9 Language
Recommendation:
By Minute Motion, concur with the action taken by the Legislative Review Committee at its
meeting of February 22, 2005, and direct staff to prepare a letter of support for the
Mayor's signature with regard to ACA 9 (Bogh) relative to motor vehicle fuel sales tax.
Executive Summary:
Passage of ACA 9 would change the vote requirement from 2/3 to 4/5 of the membership
of each house of the Legislature relative to transfer of funds from the Transportation Fund
to the General Fund.
Background:
Existing provisions of the California Constitution require that sales taxes on motor vehicle
fuel that are deposited into the General Fund be transferred to the Transportation
Investment Fund and used for transportation purposes. However, the Constitution does
allow the transfer of these revenues to be suspended in whole or in part for a fiscal year
under specified circumstances by a statute enacted by a 2/3 vote of the membership of
each house of the Legislature.
ACA 9 would amend the vote requirement to 4/5 of the membership of each house of the
Legislature in order to enact a statute suspending any transfer of this particular revenue
from the General Fund to the Transportation Investment Fund.
It is a commonly held belief that the transportation needs in California require immediate
and continuing attention. Roads must be maintained, improved, and expanded in order
for the State to remain competitive in business and to continue to attract visitor dollars that
many cities and counties in California depend upon to fund a variety of programs.
Diverting funds intended for this purpose to pay for items funded through General Fund
monies will delay transportation improvements and projects, which will ultimately have a
trickle down effect. By increasing the required vote in both houses of the Legislature, it is
more probable that transportation needs will be met through funding as outlined in the
California Constitution. Therefore, the Legislative Review Committee recommends that the
City Council support AB 9 and direct staff to prepare a letter stating that position to
approp jte legislators for the Mayor's signature.
PATRICIA SCULLY, CFEE
SENIOR MANAGEMENT ANALYST
SHEILA R. GILLIGAN
PAUL S. GIBSON
DIR OF FINANCE/CITY TREASURER
ASSISTANT CITY MANA/PIO CITY MANA
R
ACA 9 Assembly Constitutional Amendment - INTRODUCED
Page 1 of 2
BILL NUMBER: ACA 9 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Bogh
JANUARY 24, 2005
A resolution to propose to the people of the State of California
an amendment to the Constitution of the State, by amending
subdivision (d) of Section 1 of Article XIX B thereof, relating to
transportation.
LEGISLATIVE COUNSEL'S DIGEST
ACA 9, as introduced, Bogh. Motor vehicle fuel sales tax
revenue.
Existing provisions of the California Constitution require that
sales taxes on motor vehicle fuel that are deposited into the General
Fund be transferred to the Transportation Investment Fund and used
for transportation purposes, but allow the transfer of these revenues
to be suspended in whole or in part for a fiscal year under
specified circumstances by a statute enacted by a 2/3 vote of the
membership of each house of the Legislature.
This measure would change the vote requirement to 4/5 of the
membership of each house of the Legislature in order to enact a
statute suspending in whole or in part the transfer of this
particular revenue from the General Fund to the Transportation
Investment Fund.
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 by amending subdivision (d) of Section 1 of Article XIX B
thereof, to read: (d) The transfer of revenues from the General
Fund of the State to the Transportation Investment Fund pursuant to
subdivision (a) may be suspended, in whole or in part, for a fiscal
year if both of the following conditions are met:
(1) The Governor has issued a proclamation that declares that the
transfer of revenues pursuant to subdivision (a) will result in a
significant negative fiscal impact on the range of functions of
government funded by the General Fund of the State.
(2) The Legislature enacts by statute, pursuant to a bill passed
in each house of the Legislature by rollcall vote entered in the
journal, two-thirdc four -fifths of the
membership of each house concurring, a suspension for
that fiscal year of the transfer of revenues pursuant to subdivision
(a), provided that the bill does not contain any other unrelated
provision.
(PU Sec. 1 added March 5, 2002, by Prop. 42. Res.Ch. 87, 2001.)
http://info.sen.ca.gov/pub/bill/asm/ab_0001-0050/aca 9 bill_20050124_introduced.html 2/26/2005