Bill Text: CA AB338 | 2015-2016 | Regular Session | Amended
Bill Title: Los Angeles County Metropolitan Transportation
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-11-30 - From Senate committee without further action. [AB338 Detail]
Download: California-2015-AB338-Amended.html
BILL NUMBER: AB 338 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 13, 2015
AMENDED IN ASSEMBLY MARCH 19, 2015
INTRODUCED BY Assembly Member Roger Hernández
FEBRUARY 13, 2015
An act to add Section 130350.7 to, to
the Public Utilities Code, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 338, as amended, Roger Hernández. Los Angeles County
Metropolitan Transportation Authority: transactions and use tax.
Existing law authorizes the Los Angeles County Metropolitan
Transportation Authority (MTA) to impose, in addition to any other
tax that it is authorized to impose, a transactions and use tax at a
rate of 0.5% for the funding of specified transportation-related
projects and programs, subject to various requirements, including the
adoption of an expenditure plan and voter approval. Existing law
authorizes the MTA to seek voter approval to extend the transactions
and use tax pursuant to an amended ordinance, subject to various
requirements, including adoption of an amended expenditure plan that,
among other things, updates certain cost estimates and identifies
expected completion dates for projects and programs under the
previous expenditure plan, and also requires the amended expenditure
plan to be included in an updated long range transportation plan, as
specified.
This bill would authorize the MTA to impose an additional
transportation transactions and use tax at a rate of 0.5%, for a
period not to exceed 30 years, subject to various requirements,
including the adoption of an expenditure plan and voter approval.
The Transactions and Use Tax Law limits to 2% the combined rate of
all transactions and use taxes imposed in any county, with certain
exceptions.
This bill would exempt the transactions and use tax authorized by
the bill from this limitation.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) Various economic studies have shown that the biggest burden on
family incomes is the cost of housing and transportation. These two
variables greatly affect the quality of life for Californians.
(b) Los Angeles County voters have recognized the importance of
investing in a transportation network that is responsive to the needs
of commuters and transit users and that facilitates the movement of
goods in the region. Los Angeles County has three existing
voter-approved sales tax measures for transportation projects
administered by Los Angeles County Metropolitan Transportation
Authority (MTA).
(c) In 1980, voters in Los Angeles County approved Proposition A,
a sales tax of one-half of 1 percent on most retail sales in Los
Angeles County. The MTA returns 25 percent of Proposition A proceeds
to the cities in Los Angeles County for transportation purposes.
Thirty-five percent of Proposition A proceeds is required to be used
for rail development while the remaining 40 percent is for
discretionary purposes. Almost all of the discretionary portion is
used to fund bus service provided by the MTA and 16 other municipal
bus operators within Los Angeles County. The collection of the sales
tax is ongoing.
(d) In 1990, voters in Los Angeles County approved Proposition C,
an additional sales tax of one-half of 1 percent on retail sales in
Los Angeles County. The MTA returns 20 percent of Proposition C
proceeds to the cities in Los Angeles County for transportation
purposes. Forty percent of the Proposition C proceeds is required to
be used for construction and operation of the bus transit and rail
system, 5 percent to expand rail and bus security, 10 percent for
commuter rail, rail and construction of
transit centers, park and ride lots, and freeway bus stops, and 25
percent for transit-related improvements to freeways and state
highways. The collection of the sales tax is ongoing.
(e) Most recently, voters in Los Angeles County approved Measure R
in 2008. Measure R is an ordinance authorizing an additional sales
tax of one-half of 1 percent to fund traffic relief and rail
expansion according to an expenditure plan contained in the
ordinance. Measure R became effective July 1, 2009, and will remain
in effect for 30 years.
(f) MTA has been entrusted with the responsibility and has the
voters' confidence that it will protect and use the sales tax funding
responsibly and according to the rules approved by the voters.
SEC. 2. Section 130350.7 is added to the Public Utilities Code, to
read:
130350.7. (a) The Los Angeles County Metropolitan Transportation
Authority (MTA), in addition to any other tax it is authorized to
impose or has imposed, may impose a transactions and use tax at the
rate of 0.5 percent, for a period not to exceed 30 years, that is
applicable in the incorporated and unincorporated areas of the County
of Los Angeles.
(b) The ordinance imposing the tax shall contain all of the
following:
(1) An expenditure plan that lists the transportation projects and
programs to be funded from net revenues from the tax. The
expenditure plan shall appear in the ordinance as an exhibit. The
expenditure plan shall include measures that ensure net revenues are
shared equitably between regions of the county.
(2) Provisions conforming to the Transactions and Use Tax Law
(Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue
and Taxation Code), except as otherwise provided in subdivision (f).
(3) A provision limiting the MTA's costs of administering the
ordinance and the net revenues from the tax to 1.5 percent of the
total tax revenues.
(4) A requirement that the net revenues from the tax, defined to
mean the total tax revenues less any refunds, costs of administration
by the State Board of Equalization, and the MTA's administration
costs, shall be used by the MTA to fund transportation projects and
programs identified in the expenditure plan.
(5) A requirement that the MTA, during the period that the
ordinance is operative, allocate ____ 20
percent of all net revenues derived from the tax for bus
operations. These revenues shall be allocated to all eligible and
included municipal transit operators in the County of Los Angeles and
to the MTA, in accordance with Section 99285. However, the
allocations to the MTA and eligible and included municipal operators
shall be made solely from revenues derived from a tax imposed
pursuant to this section, and not from local discretionary sources.
Funds allocated by MTA to itself pursuant to this section shall be
used for transit operations and shall not supplant funds from any
other source allocated by MTA to itself for public transit
operations. Funds allocated by MTA to the eligible and included
municipal operators pursuant to this section shall be used for
transit operations and shall not supplant any funds authorized by
other provisions of law and allocated by MTA to the eligible and
included municipal operators for public transit. In addition to this
amount, the MTA shall allocate ____ 5
percent of all net revenues derived from the tax for rail operations.
(c) The MTA shall notify the Legislature prior to the adoption of
amendments to the adopted expenditure plan.
(d) The ordinance shall be adopted by the MTA board, which shall
also adopt a resolution that submits the ordinance to the voters.
(e) The ordinance shall become operative pursuant to Section
130352 if approved by two-thirds of the voters voting on the measure,
pursuant to subdivision (d) of Section 2 of Article XIII C of the
California Constitution.
(f) The MTA may incur bonded indebtedness payable from the net
revenues of the tax pursuant to the bond issuance provisions of this
chapter and any successor act.
(g) The tax authorized by this section shall be imposed pursuant
to the Transactions and Use Tax Law (Part 1.6 (commencing with
Section 7251) of Division 2 of the Revenue and Taxation Code),
notwithstanding the combined rate limitation in Section 7251.1 of the
Revenue and Taxation Code.
