HomeMy WebLinkAboutLegislative Review - ACA 11 (Oropeza) - Transportation Fund LoansCITY OF PALM DESERT
Community Services Division
Staff Report
REQUEST: CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE ACTION
ON ACA 11 (OROPEZA) AT ITS MEETING OF APRIL 26, 2005
SUBMITTED BY: Patricia Scully, CFEE, Senior Management Analyst
DATE: May 12, 2005
CONTENTS: ACA 11 Language
RECOMMENDATION:
By Minute Motion, concur with the action taken by the Legislative Review Committee at Its
Meeting of April 26, 2005, and direct staff to prepare a letter of support for the Mayor's
signature with regard to ACA 11 (Oropeza) relative to transportation fund loans.
EXECUTIVE SUMMARY:
Passage of Assembly Constitutional Amendment 11 would require interest be paid on loans
of revenue subject to either Title XIX or XIX-A of the Transportation Account if the loan is not
repaid during the same fiscal year in which the loan is made.
BACKGROUND:
Article XIX of the California Constitution requires excise taxes on motor vehicle fuel and certain
fees imposed on motor vehicles to be used only for specified transportation and vehicle related
purposes but authorizes these excise tax revenues to be loaned to the General Fund under
certain conditions, including a requirement that the funds be repaid within three years. This
Constitutional Amendment would require interest be paid on a loan of revenues if the loan is
not repaid during the same fiscal year in which it is made. ACA 11 would also require a loan
made pursuant to a statute establishing the terms for repayment and would prohibit the
enactment of an additional statute making a new loan prior to the full repayment of each
previous loan. The measure would also prohibit a loan from being authorized during more than
two fiscal years within any period of ten consecutive fiscal years. In addition, it would delete
provisions authorizing the transfer of revenues from the General Fund to the Transportation
Investment Fund to be suspended. The measure would instead authorize the Legislature to
loan funds in the Transportation Investment Fund to the General Fund or any other State fund
CITY COUNCIL STAFF REPORT
RE: ACA 11 MAY 12, 2005
or account or to local agencies under conditions that are similar to conditions applicable to
loans of revenues.
The State of California's transportation needs are at a stage where the development,
implementation, and maintenance of infrastructures in this regard must be prioritized to allow
California to continue to be competitive in commerce and tourism. Any legislation which would
require that the Transportation Investment Fund be financed in the manner established by the
California Constitution could only prove to be beneficial, and balancing the State's General
Fund budget on the back of these monies set aside for specific purposes should be
discouraged.
Therefore, the Legislative Review Committee recommends that the City Council support
ACA 11 and direct staff to prepare a letter stating that position to appropriate legislators for the
Mayor's signature.
PATRICIA SCULLY, CFEE
SENIOR MANAGEMENT ANALYST
SHEILA R. GILLIGAN CARLOS L. ORTEGA
ACM/COMMUNITY SERVICES CITY MANAGER
PS:mpg
2
ACA 11 Assembly Constitutional Amendment - INTRODUCED ,\ � Page 1 of 5
�J
BILL NUMBER: ACA 11 I6ITRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Oropeza
FEBRUARY 16, 2005
A resolution to propose to the people of the State of California
an amendment to the Constitution of the State, by amending Section
of Article XIX thereof, by amending Section 1 of Article XIX A
thereof, and by amending Section 1 of, and adding Section 2 to,
Article XIX B thereof, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
ACA 11, as introduced, Oropeza. Transportation funds: loans.
(1) Article XIX of the California Constitution requires excise
taxes on motor vehicle fuel and certain fees imposed on motor
vehicles to be used only for specified transportation and
vehicle-related purposes, but authorizes these excise tax revenues
be loaned to the General Fund under certain conditions, including a
requirement that the funds be repaid within 3 years. Article XIX A
the California Constitution provides that funds in the Public
Transportation Account, which are derived from certain sales taxes
motor vehicle fuels, may be loaned to the General Fund or any other
state fund or account under certain conditions, including a
requirement that the funds be repaid within 3 years.
This measure would require interest to be paid on a loan of
revenues subject to either Article XIX or XIX A if the loan is not
to
of
on
repaid during the same fiscal year in which it was made. The measure
would require a loan made pursuant to Article XIX or XIX A to be made
pursuant to a statute establishing the terms for repayment and would
prohibit the enactment of a statute making a new loan pursuant to
Article XIX or XIX A prior to the full repayment of each previous
loan under Article XIX or XIX A, respectively. The measure would also
prohibit a loan from being authorized by a statute during more than
2 fi-sca�years -wit�in--any-period of -10 consecuti-ve fiseal years. The
measure would also authorize tax revenues subject to Article XIX or
XIX A to be loaned to other state funds or accounts in addition to
the General Fund.
(2) Article XIX B of the California Constitution requires,
commencing with the 2003-04 fiscal year, sales taxes on motor vehicle
fuel that are deposited in the General Fund to be transferred to the
Transportation Investment Fund for allocation to various
transportation purposes. Article XIX B authorizes the transfer of
--these revenues to -�the T�ansportation -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 in each house of the Legislature if the
statute does not contain any unrelated provision.
This measure would delete the provisions authorizing the transfer
of revenues from the General Fund to the Transportation Znvestment
Fund to be suspended. The measure would instead authorize the
Legislature to loan funds in the Transportation Investment Fund to
the General Fund or any other state fund or account, or to local
agencies, under conditions that are similar to conditions applicable
http://info.sen.ca.gov/pub/bill/asm/ab_0001-0050/aca 11 bill 20050216_introduced.html 4/15/2005
ACA 11 Assembly Constitutional Amendment - INTRODUCED Page 2 of 5
to loans of revenues under Article XIX of the California
Constitution, and would require interest to be paid on a loan that is
not repaid within the same fiscal year as it was made. The measure
would require that a loan of this type be made pursuant to a statute
establishing the terms for repayment and would prohibit enactment of
a statute to make a new loan pursuant to Article XIX B prior to the
full repayment of each previous loan under that article. The measure
would also prohibit a loan from being authorized by a statute during
more than 2 fiscal years within any period of 10 consecutive fiscal
years. The measure would make other related changes.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
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:
First--That Section 6 of Article XIX thereof is amended to read:
SEC. 6. (a) The tax revenues designated
under this article may be loaned to the General Fund or any
other state fund or account only if one of the following
conditions is imposed: —4a�
(1) That any amount loaned is to be repaid in full to
the fund from which it was borrowed during the same fiscal year in
which the loan was made, except that repayment may be delayed until a
date not more than 30 days after the date of enactment of the budget
bill for the subsequent fiscal year.
4")
(2) That any amount loaned is to be repaid in full
, with interest at the rate paid on money in the Pooled Money
Investment Accovnt, or any successor to that account, during the
period of time that the money is loaned, to the fund from which
it was borrowed within three fiscal years from the date on which the
loan was made and one of the following has occurred:
i')
(A) The Governor has proclaimed a state of emergency
and declares that the emergency will result in a significant negative
fiscal impact to the General Fund.
��
(B) The aggregate amount of General Fund revenues for
the current fiscal year, as projected by the Governor in a report to
the Legislature in May of the current fiscal year, is less than the
aggregate amount of General Fund revenues for the previous fiscal
year, adjusted for the change in the cost of living and the change in
population, as specified in the budget submitted by the Governor
pursuant to Section 12 of Article IV in the current fiscal year.
i�)
(b) Nothing in this section prohibits the Legislature
from authorizing, by statute, loans to local transportation agencies,
cities, counties, or cities and counties, from funds that are
subject to this article, for the purposes authorized under this
article. Any loan authorized as described by this subdivision shall
be repaid in full , with interest at the rate paid on
money in the Pooled Money Investment Account, or any successor to
http://info.sen.ca.gov/pub/bilUasm/ab_0001-0050/aca 11 bill 20050216 introduced.html 4/15/2005
ACA 11 Assembly Constitutional Amendment - INTRODUCED Page 3 of 5
that account, during the period of time that the money is loaned, to
the fund from which it was borrowed, not later than four years after
the date on which the loan was made.
(c) A loan made under the provisions of this section shall be made
pursuant to a statute that establishes the terms for repayment. A
statute to make any new loan under this section shall not be enacted
prior to the date upon which each previous loan made under this
section has been fully repaid. A loan shall not be authorized by a
statute during more than two fiscal years within any period of IO
consecvtive fiscal years, which period begins with the first fiscal
year for which a loan is authorized pvrsuant to this section that
occurs on or after the effective date of this subdivision.
Second--That Section 1 of Article XIX A thereof is amended to read:
SECTION 1. The funds in the Public Transportation Account in
the State Transportation Fund, or any successor to that account, may
be loaned to the General Fund or any other state fund or account
only if -�a� the following
requirements are met: (a) One
of the following conditions is imposed:
��
(1) That any amount loaned is to be repaid in full to
the account during the same fiscal year in which the loan was made,
except that repayment may be delayed until a date not more than 30
days after the date of enactment of the budget bill for the
subsequent fiscal year.
—��
(2) That any amount loaned is to be repaid in full
, with interest at the rate paid on money in the Pooled Money
Investment Account, or any successor to that account, during the
period of time that the money is loaned, to the
account within three fiscal years from the date on which the loan was
made and one of the following has occurred:
-��
(A) The Governor has proclaimed a state of emergency
and declares that the emergency will result in a significant negative
fiscal impact to the General Fund.
��
(B) The aggregate amount of General Fund revenues for
the current fiscal year, as projected by the Governor in a report to
the Legislature in May of the current -fi-sca-i year, is-iess than the
aggregate amount of General Fund revenues for the previous fiscal
year, as specified in the budget submitted by the Governor pursuant
to Section 12 of Article IV in the current fiscal year.
(b) A loan made under the provisions of this section shall be made
pursuant to a statute that establishes the terms for repayment. A
statute to make any new loan under this section sha11 not be enacted
prior to the date upon which each previous loan made under this
section has been fully repaid. A loan shall not be authorized by a
statute during more than two fiscal years within any period of 10
consecutive fiscal years, which period begins with the first fiscal
year for which a loan is authorized pursvant to this section that
occvrs on or after the effective date of this svbdivision.
Third--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
http://info.sen.ca.gov/pub/bilUasm/ab 0001-0050/aca 11 bill 20050216 introduced.htrnl 4/15/2005
ACA 11 Assembly Constitutional Amendment - INTRODUCED Page 4 of 5
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-OS fiscal years, inclusive, moneys in the Transportation
Znvestment 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 *'�^ Z^r^.��-���� �F
�'� � ^ , r* ; �'.� March 6, 2002 .
(2) For the 2008-09 fiscal year and each fiscal year thereafter,
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, rehabilitation,
reconstruction, or storm damage repair conducted by cities, including
a city and county.
(D) Street and highway maintenance, rehabilitation,
reconstruction, or storm damage repair conducted by counties,
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 � �,. � r .. .. � � ;�,�. „---e�-:-r.:,. � .. .. .. F........ 4 1. ,. ,s,e,�,. � .. � r.. � � r t � t. �
$�3fi,,-, +.. +►,,. m,.,-,.,.-.�...,.+_�; ��.,�,.,.�-.,,.,.,� r,,.�e �.. . ..� �.. ,.ti..�;..;l�i'AA
� -. � .., -,,. .i , ., . ,l, ��... ,., , ., � � r t � ., .- -, f ; n �. � l .:,- - .- ; f L� 9t�1
r
� .� } �, „ �„ i , � ,.., a ; * ;
%3T'�.k�-�oZze r n,.. ,.. �, ., ,. , ,. .. �, - a -, �; ,., .. ,., i - .., -, * ; ..., � �. - � ��.., ., a- �, ., s- � ►, 9
. r.., ., .. r ., .. „ � * + .. .�, �. a ; .. � -, � . .; i i r,., ., � * , „ -,
- - . . . . ��w,,., ., �..,, . . . . . . ' as��,
_ i , . �., .. „� „., * t, �,q_,,. � �,,., ..� , ,..... �„f.
�,•..,�- f„n -1 r.,.�d ..,F +L,- C�4-���
l"�Tl�Fir��'��.i ..l ..t....... �t. ..i--�1-.,t... �.�.......�...�.♦ F... � L.< 11 `-. ..�
3
,iA--6�1,,.1, ti, ,. ,.� ���,. 3 ; ,, i -, � . , ,.. ., ti. � ... �1,.., ., i i _.., a- 7,,6Fi�C�., ,a . .. � u. 9
�,,,. , , ,-., -, i � , .. _ ��a .. ,. F � �, �.,. ,... �, : = ., �., � , ,^.- , .. ' -, ,� . , Z 9AC,1�GA--��GY.
�ti-,r f; ,.:al�ear ,.� ��.., �r-,.,�f„r „� r�,,.r � : ,, .. ,_,.t ,-
-t � ) . ..�a .. ,a + �. -, * + i-. ., ti. , i i ��,,. ., } .. . ., � � „ � �.., .. "' 9.1.�.AGI
,,. •, . .. ' SiSi�
-�c�— 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).
Fourth--That Section 2 is added to Article XIX B thereof, to read:
SEC. 2. (a) Money transferred to the Transportation Investment
Fund pursuant to Section 1 may be loaned to the General Fund of the
state or any other state fund or account only under one of the
http://info.sen.ca.gov/pub/bilUasm/ab_0001-0050/aca 11 bill 20050216 introduced.htinl 4/15/2005
ACA 11 Assembly Constitutional Amendment - INTRODUCED Page 5 of 5
following conditions:(1) That any amount loaned is to be repaid in
full to the Transportation Investment Fund during the same fiscal
year in which the loan was made, except that repayment may be delayed
until a date not more than 30 days after the date of enactment of
the budget bill for the subsequent fiscal year.
{2) That any amount loaned is to be repaid in full, with interest
at the rate paid on money in the Pooled Money Investment Account, or
any successor to that account, during the period of time that the
money is loaned, to the Transportation Investment Fund, within three
fiscal years from the date on which the loan was made and one of the
following has occurred:
(A) The Governor has proclaimed a state of emergency and declares
that the emergency will result in a significant negative fiscal
impact to the General Fund of the state.
(B) The aggregate amount of General Fund revenues for the current
fiscal year, as projected by the Governor in a report to the
Legislature in May of the current fiscal year, is less than the
aggregate amount of General Fund revenues for the previous fiscal
year, adjusted for the change in the cost of living and the change in
population, as specified in the budget submitted by the Governor
pursuant to Section 22 of Article IV in the current fiscal year.
(b) A loan made under the provisions of this section shall be made
pursuant to a statute that establishes the terms for repayment. A
statute to make any new loan under this section shall not be enacted
prior to the date upon which each previous loan made under this
section has been fully repaid. A loan shall not be authorized by a
statute during more than two fiscal years within any period of 10
consecutive fiscal years, which period begins with the first fiscal
year for which a loan is authorized pursuant to this section that
occurs on or after the effective date of this subdivision.
(c) Nothing in this article prohibits the Legislature from
authorizing, by statute, loans to local transportation agencies,
cities, counties, or cities and counties from the Transportation
Investment Fund for the purposes authorized under this article. Any
loan authorized as described by this subdivision shall be repaid,
with interest at the rate paid on money in the Pooled Money
Investment Account, or any successor to that account, during the
period of time that the money is loaned, to the Transportation
Investment Fund, within four years after the date on which the loan
was made.
(d) Any funds-deposi�ed--in the Transportation Investment-Fund as
repayment of a loan that is authorized pursuant to this section shall
be transferred and apportioned in the same manner and amounts as
would otherwise have been made had the loan not been made, but taking
into account and deducting therefrom any transfers and
apportionments that were actually made from the Transportation
Investment Fund for the applicable fiscal year.
(e) Notwithstanding paragraph (2) of subdivision (aj, no interest
shall be payable on the portion of any loan made under this section
that would otherwise have been transferred to the Traffic Congestion
Relief Fund, or a successor to that fund, if the loan had not been
made.
http://info.sen.ca.gov/pub/bill/asm/ab_0001-0050/aca 11 bill 20050216 introduced.html 4/15/2005