Bill Text: CA ACA28 | 2011-2012 | Regular Session | Introduced
Bill Title: Legislature: revised biennial sessions and part-time
Spectrum: Moderate Partisan Bill (Republican 8-1)
Status: (Introduced - Dead) 2012-08-13 - Joint Rule 62(a), file notice suspended. (Page 5866.) [ACA28 Detail]
Download: California-2011-ACA28-Introduced.html
BILL NUMBER: ACA 28 INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Garrick (Coauthors: Assembly Members Donnelly, Beth Gaines, Grove, Halderman, Jones, Mansoor, Miller, and Silva) MAY 10, 2012 A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 9 of Article II, by amending Section 8 of Article III thereof, by amending Sections 3, 4, 7.5, 8, 10, 11, and 12 of Article IV thereof, by amending Sections 1, 2, 3, 6, 8, and 10.5 of, and adding Section 14 to, Article XIII B thereof, by amending Sections 8, 8.5, and 20 of Article XVI thereof, by amending Section 2 of Article XIX B thereof, and by amending Section 4 of Article XXXV thereof, relating to the Legislature. LEGISLATIVE COUNSEL'S DIGEST ACA 28, as introduced, Garrick. Legislature: revised biennial sessions and part-time status. (1) The California Constitution establishes a full-time Legislature. The Constitution authorizes the California Citizens Compensation Commission to determine the annual salary and the medical, dental, insurance, and other similar benefits of state officers, including Members of the Legislature. This measure would instead provide for a part-time Legislature and set the annual salary for Members of the Legislature at $24,000, to be adjusted thereafter by the commission consistent with the Consumer Price Index. (2) The California Constitution requires the Legislature to convene on the first Monday of December of each even-numbered year and adjourn on November 30 of the following even-numbered year. This measure would set specific time periods in which the Legislature must complete its work. The bill would require the Legislature to organize and swear in its Members on the first Monday of December of each even-numbered year and reconvene not later than January 7 for a duration of not more than 120 consecutive calendar days in odd-numbered years, and not more than 60 consecutive calendar days in even-numbered years. The measure would require that any legislation introduced in an odd-numbered year be passed within the 120-day period and any legislation introduced in an even-numbered year be passed within the 60-day period. The measure would allow the Legislature to convene for an additional 7 consecutive calendar days for the sole purpose of considering bills vetoed by the Governor, and items of appropriation reduced or eliminated by the Governor. The measure would make other conforming changes. (3) The California Constitution authorizes the Governor, by proclamation, to cause the Legislature to assemble in special session and prohibits the Legislature from legislating on subjects not specified in the proclamation when so assembled. This measure would limit a special session to 30 days in duration and make other related changes. (4) The California Constitution authorizes the Governor, following the enactment of the Budget Bill, to issue a proclamation declaring a fiscal emergency if the Governor determines that General Fund revenues will decline substantially below, or that General Fund expenditures will increase substantially above, the estimate of General Fund revenues upon which the Budget Bill, as enacted, was based. The California Constitution provides that if the Legislature fails to pass and send to the Governor a bill or bills to address the fiscal emergency by the 45th day following the issuance of the proclamation, the Legislature may not act on any other bill until that bill or those bills addressing the fiscal emergency have been passed and sent to the Governor. This measure would specify that the prohibited actions include acting upon or taking any action on any other bill, including casting a vote on any other bill in either a policy or fiscal committee, or on the floor of the Assembly or Senate. (5) The California Constitution requires the Governor to submit to the Legislature a budget for the ensuing fiscal year within the first 10 days of each calendar year and requires the Legislature to pass the Budget Bill by midnight on June 15 of each year. This measure would instead require the Governor to submit a biennial budget within the first 7 days of each odd-numbered year and require the Legislature to pass the Budget Bill within 120 days, as specified, and would make conforming changes to other provisions of the California Constitution relating to the biennial budget. This measure would authorize the Governor to propose changes to an enacted biennial state budget when the Legislature is not in session, which changes would become law upon approval by resolution adopted by the Joint Legislative Budget Committee. (6) The California Constitution requires that travel and living expenses for Members of the Legislature in connection with their official duties be prescribed by statute passed by rollcall vote, 2/3 of the membership of each house concurring. This measure would limit these expenses in amount to the per diem rates established by the United States General Services Administration for federal employees. (7) The California Constitution provides that the aggregate expenditures for the compensation of Members and employees of, and the operating expenses and equipment for, the Legislature may not exceed a specified amount. This measure would additionally require that the annual budget amounts for a Member of either house be equal to that of other Members of the same house. (8) The California Constitution provides that no bill may be passed until the bill with amendments has been printed and distributed to the Members. This measure would instead require that each bill with amendments be distributed to the Members at least 72 hours prior to passage. (9) The California Constitution provides that the Legislature or either house may by resolution provide for the selection of committees necessary for the conduct of its business. This measure would require that every political party represented in a house of the Legislature be, to the greatest extent possible, proportionately represented in each legislative committee of that house. The measure would additionally specify membership requirements for the Joint Legislative Budget Committee. 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 2011-12 Regular Session commencing on the sixth day of December 2010, 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 9 of Article II thereof is amended to read: SEC. 9. (a) The referendum is the power of the electors to approve or reject statutes or parts of statutes except urgency statutes, statutes calling elections, and statutes providing for tax levies or appropriations for usual current expenses of the State. (b) A referendum measure may be proposed by presenting to the Secretary of State, within 90 days after the enactment date of the statute, a petition certified to have been signed by electors equal in number to 5 percent of the votes for all candidates for Governor at the last gubernatorial election, asking that the statute or part of it be submitted to the electors.In the case of a statute enacted by a bill passed by the Legislature on or before the date the Legislature adjourns for a joint recess to reconvene in the second calendar year of the biennium of the legislative session, and in the possession of the Governor after that date, the petition may not be presented on or after January 1 next following the enactment date unless a copy of the petition is submitted to the Attorney General pursuant to subdivision (d) of Section 10 of Article II before January 1.(c) The Secretary of State shall then submit the measure at the next general election held at least 31 days after it qualifies or at a special statewide election held prior to that general election. The Governor may call a special statewide election for the measure. Second-- That Section 8 of Article III thereof is amended to read: SEC. 8. (a) The California Citizens Compensation Commission is hereby created and shall consist of seven members appointed by the Governor. The commission shall establish the annual salary and the medical, dental, insurance, and other similar benefits of state officers. (b) The commission shall consist of the following persons: (1) Three public members, one of whom has expertise in the area of compensation, such as an economist, market researcher, or personnel manager; one of whom is a member of a nonprofit public interest organization; and one of whom is representative of the general population and may include, among others, a retiree, homemaker, or person of median income. No person appointed pursuant to this paragraph may, during the 12 months prior to his or her appointment, have held public office, either elective or appointive, have been a candidate for elective public office, or have been a lobbyist, as defined by the Political Reform Act of 1974. (2) Two members who have experience in the business community, one of whom is an executive of a corporation incorporated in this State which ranks among the largest private sector employers in the State based on the number of employees employed by the corporation in this State and one of whom is an owner of a small business in this State. (3) Two members, each of whom is an officer or member of a labor organization. (c) The Governor shall strive insofar as practicable to provide a balanced representation of the geographic, gender, racial, and ethnic diversity of the State in appointing commission members. (d) The Governor shall appoint commission members and designate a chairperson for the commission not later than 30 days after the effective date of this section. The terms of two of the initial appointees shall expire on December 31, 1992, two on December 31, 1994, and three on December 31, 1996, as determined by the Governor. Thereafter, the term of each member shall be six years. Within 15 days of any vacancy, the Governor shall appoint a person to serve the unexpired portion of the term. (e) No current or former officer or employee of this State is eligible for appointment to the commission. (f) Public notice shall be given of all meetings of the commission, and the meetings shall be open to the public. (g) On or before December 3, 1990, the commission shall, by a single resolution adopted by a majority of the membership of the commission, establish the annual salary and the medical, dental, insurance, and other similar benefits of state officers. The annual salary and benefits specified in that resolution shall be effective on and after December 3, 1990. Thereafter, at or before the end of each fiscal year, the commission shall, by a resolution adopted by a majority of the membership of the commission, adjust the medical, dental, insurance, and other similar benefits of state officers. The benefits specified in the resolution shall be effective on and after the first Monday of the next December. Thereafter, at or before the end of each fiscal year, the commission shall adjust the annual salary of state officers by a resolution adopted by a majority of the membership of the commission. The annual salary of Members of the Legislature shall be determined pursuant to subdivision (m). The annual salary specified in the resolution shall be effective on and after the first Monday of the next December, except that a resolution shall not be adopted or take effect in any year that increases the annual salary of any state officer if, on or before the immediately preceding June 1, the Director of Finance certifies to the commission, based on estimates for the current fiscal year, that there will be a negative balance on June 30 of the current fiscal year in the Special Fund for Economic Uncertainties in an amount equal to, or greater than, 1 percent of estimated General Fund revenues. (h) In establishing or adjusting the annual salary of state officers other than Members of the Legislature and the medical, dental, insurance, and other similar benefits of all state officers , the commission shall consider all of the following: (1) The amount of time directly or indirectly related to the performance of the duties, functions, and services of a state officer. (2) The amount of the annual salary and the medical, dental, insurance, and other similar benefits for other elected and appointed officers and officials in this State with comparable responsibilities, the judiciary, and, to the extent practicable, the private sector, recognizing, however, that state officers do not receive, and do not expect to receive, compensation at the same levels as individuals in the private sector with comparable experience and responsibilities. (3) The responsibility and scope of authority of the entity in which the state officer serves. (4) Whether the Director of Finance estimates that there will be a negative balance in the Special Fund for Economic Uncertainties in an amount equal to or greater than 1 percent of estimated General Fund revenues in the current fiscal year. (i) Until a resolution establishing or adjusting the annual salary and the medical, dental, insurance, and other similar benefits for state officers takes effect, each state officer shall continue to receive the same annual salary and the medical, dental, insurance, and other similar benefits received previously. (j) All commission members shall receive their actual and necessary expenses, including travel expenses, incurred in the performance of their duties. Each member shall be compensated at the same rate as members, other than the chairperson, of the Fair Political Practices Commission, or its successor, for each day engaged in official duties, not to exceed 45 days per year. (k) It is the intent of the Legislature that the creation of the commission should not generate new state costs for staff and services. The Department of Personnel Administration, the Board of Administration of the Public Employees' Retirement System, or other appropriate agencies, or their successors, shall furnish, from existing resources, staff and services to the commission as needed for the performance of its duties. (l) "State officer," as used in this section, means the Governor, Lieutenant Governor, Attorney General, Controller, Insurance Commissioner, Secretary of State, Superintendent of Public Instruction, Treasurer, member of the State Board of Equalization, and Member of the Legislature. (m) The annual salary of each Member of the Legislature shall be twenty-four thousand dollars ($24,000) commencing the first Monday of December 2012, and shall thereafter be adjusted annually by the commission to reflect changes in the Consumer Price Index calculated by the Federal Bureau of Labor Statistics or its successor. Third-- That Section 3 of Article IV thereof is amended to read: SEC. 3. (a) The Legislature shall convene in regular session at noon on the first Monday in December of each even-numbered year for the sole purpose of organizing and swearing in Members and each house shall immediately organize and swear in its Members . Each session of the Legislature shall adjourn sine die by operation of the Constitution at midnight on November 30 of the following even-numbered year. (b) (1) After the Legislature has organized, each house shall reconvene no later than January 7 of the following odd-numbered year for a duration of not more than 120 consecutive calendar days. (2) The Legislature shall reconvene in the following even-numbered year, no later than January 7, for a duration of not more than 60 consecutive calendar days. (3) Notwithstanding paragraphs (1) and (2), the Legislature may convene each year for an additional seven consecutive calendar days for the sole purpose of reconsidering, and acting upon, bills vetoed by the Governor or items of appropriation reduced or eliminated by the Governor.(b)(c) (1) On extraordinary occasions the Governor by proclamation may cause the Legislature to assemble in special session. When so assembled it has power to legislate only on subjects specified in the proclamation but may provide for expenses and other matters incidental to the session. (2) No special session assembled pursuant to this subdivision may exceed 30 days in duration, after which time the special session is dissolved and no subsequent action of the Legislature respecting that special session shall have any force or effect. (3) The Legislature may convene for no more than three additional consecutive days for the sole purpose of voting to override a veto of a measure passed in a special session, but may take no other action or pass any other measure when reconvened. (4) Neither the Chief Clerk of the Assembly nor the Secretary of the Senate shall accept for introduction any measure in a special session that does not address a subject specified in the proclamation. Fourth-- That Section 4 of Article IV thereof is amended to read: SEC. 4. (a) To eliminate any appearance of a conflict with the proper discharge of his or her duties and responsibilities, no Member of the Legislature may knowingly receive any salary, wages, commissions, or other similar earned income from a lobbyist or lobbying firm, as defined by the Political Reform Act of 1974, or from a person who, during the previous 12 months, has been under a contract with the Legislature. The Legislature shall enact laws that define earned income. However, earned income does not include any community property interest in the income of a spouse. Any Member who knowingly receives any salary, wages, commissions, or other similar earned income from a lobbyist employer, as defined by the Political Reform Act of 1974, may not, for a period of one year following its receipt, vote upon or make, participate in making, or in any way attempt to use his or her official position to influence an action or decision before the Legislature, other than an action or decision involving a bill described in subdivision (c) of Section 12of this article, which he or she knows, or has reason to know, would have a direct and significant financial impact on the lobbyist employer and would not impact the public generally or a significant segment of the public in a similar manner. As used in this subdivision, "public generally" includes an industry, trade, or profession. (b) Travel and living expenses for Members of the Legislature in connection with their official duties shall be prescribed by statute passed by rollcall vote entered in the journal, two-thirds of the membership of each house concurring , except that the amount shall not exceed the per diem rates established for federal employees by the United States General Services Administration . A Member may not receive travel and living expenses during the times that the Legislature is in recess for more than three calendar days, unless the Member is traveling to or from, or is in attendance at, any meeting of a committee of which he or she is a member, or a meeting, conference, or other legislative function or responsibility as authorized by the rules of the house of which he or she is a member, which is held at a location at least 20 miles from his or her place of residence. (c) The Legislature may not provide retirement benefits based on any portion of a monthly salary in excess of five hundred dollars ($500) paid to any Member of the Legislature unless the Member receives the greater amount while serving as a Member in the Legislature. The Legislature may, prior to their retirement, limit the retirement benefits payable to Members of the Legislature who serve during or after the term commencing in 1967. When computing the retirement allowance of a Member who serves in the Legislature during the term commencing in 1967 or later, allowance may be made for increases in cost of living if so provided by statute, but only with respect to increases in the cost of living occurring after retirement of the Member. However, the Legislature may provide that no Member shall be deprived of a cost of living adjustment based on a monthly salary of five hundred dollars ($500) which has accrued prior to the commencement of the 1967 Regular Session of the Legislature. Fifth-- That Section 7.5 of Article IV thereof is amended to read: SEC. 7.5. ( a) In the 1991-92 fiscal yearimmediately following the adoption of this Act, the total aggregate expenditures of the Legislature for the compensation ofmembersMembers and employees of, and the operating expenses and equipment for, the Legislature may not exceed an amount equal to nine hundred fifty thousand dollars ($950,000) permemberMember for that fiscal year or 80 percent of the amount of money expended for those purposes in the preceding fiscal year, whichever is less. For each fiscal year thereafter, the total aggregate expenditures may not exceed an amount equal to that expended for those purposes in the preceding fiscal year, adjusted and compounded by an amount equal to the percentage increase in the appropriations limit for the State established pursuant to Article XIII B. (b) Each Assembly Member shall be accorded an annual budget amount equal to the annual budget amount of all other Members of the Assembly. Each Senator shall be accorded an annual budget amount equal to the annual budget amount of all other Senators. Sixth-- That Section 8 of Article IV thereof is amended to read: SEC. 8. (a) At regular sessions no bill , other than the budget bill , may be heard or acted on by committee or either house until the 31st day after the bill is introduced unless the house dispenses with this requirement by rollcall vote entered in the journal,three fourthsthree -fourths of the membership concurring. (b) The Legislature may make no law except by statute and may enact no statute except by bill. No bill may be passed unless it is read by title on3three days in each house except that the house may dispense with this requirement by rollcall vote entered in the journal,two thirdstwo -thirds of the membership concurring. No bill may be passed until the bill with amendments has beenprinted anddistributed to themembersMembers at least 72 ho urs prior to passage . No bill may be passed unless, by rollcall vote entered in the journal, a majority of the membership of each house concurs. (c) (1) Except as provided inparagraphsparagraph (2)and (3) of this subdivision, a statute enacted at a regular session shall go into effect on January 1 next following a 90-day period from the date of enactment of the statute and a statute enacted at a special session shall go into effect on the 91st day after adjournment of the special session at which the bill was passed.(2) A statute, other than a statute establishing or changing boundaries of any legislative, congressional, or other election district, enacted by a bill passed by the Legislature on or before the date the Legislature adjourns for a joint recess to reconvene in the second calendar year of the biennium of the legislative session, and in the possession of the Governor after that date, shall go into effect on January 1 next following the enactment date of the statute unless, before January 1, a copy of a referendum petition affecting the statute is submitted to the Attorney General pursuant to subdivision (d) of Section 10 of Article II, in which event the statute shall go into effect on the 91st day after the enactment date unless the petition has been presented to the Secretary of State pursuant to subdivision (b) of Section 9 of Article II.(3)(2) Statutes calling elections, statutes providing for tax levies or appropriations for the usual current expenses of the State, and urgency statutes shall go into effect immediately upon their enactment. (d) Urgency statutes are those necessary for immediate preservation of the public peace, health, or safety. A statement of facts constituting the necessity shall be set forth in one section of the bill. In each house the section and the bill shall be passed separately, each by rollcall vote entered in the journal,two thirdstwo-thirds of the membership concurring. An urgency statute may not create or abolish any office or change the salary, term, or duties of any office, or grant any franchise or special privilege, or create any vested right or interest. Seventh-- That Section 10 of Article IV thereof is amended to read: SEC. 10. (a) Each bill passed by the Legislature shall be presented to the Governor. It becomes a statute if it is signed by the Governor. The Governor may veto it by returning it with any objections to the house of origin, which shall enter the objections in the journal and proceed to reconsider it. If each house then passes the bill by rollcall vote entered in the journal, two-thirds of the membership concurring, it becomes a statute.(b) (1) Any bill, other than a bill which would establish or change boundaries of any legislative, congressional, or other election district, passed by the Legislature on or before the date the Legislature adjourns for a joint recess to reconvene in the second calendar year of the biennium of the legislative session, and in the possession of the Governor after that date, that is not returned within 30 days after that date becomes a statute.(2)(b) (1) Any bill passed by the Legislature in the first calendar year of the biennium on or beforeSeptember 1 of the second calendar year of the biennium of the legislative sessionthe 120th day of the period specified in paragraph (1) of subdivision (b) of Section 3 and in the possession of the Governor on or afterSeptember 1that day, or passed in the second calendar year of the biennium on or before the 60th day of the period specified in paragraph (2) of subdivision (b) of Section 3 and in the possession of the Governor on or after that day, that is not returnedon or before September 30 of that yearwithin 30 calendar days becomes a statute.(3)(2) Any other bill presented to the Governor that is not returned within 12 days becomes a statute.(4)(3) If the Legislature by adjournment of a special session prevents the return of a bill with the veto message, the bill becomes a statute unless the Governor vetoes the bill within 12 days after it is presented by depositing it and the veto message in the office of the Secretary of State.(5)(4) If the 12th day of the period within which the Governor is required to perform an act pursuant to paragraph (2) or (3)or (4) of this subdivisionis a Saturday, Sunday, or holiday, the period is extended to the next day that is not a Saturday, Sunday, or holiday.(c) Any bill introduced during the first year of the biennium of the legislative session that has not been passed by the house of origin by January 31 of the second calendar year of the biennium may no longer be acted on by the house. No bill may be passed by either house on or after September 1 of an even-numbered year except statutes calling elections, statutes providing for tax levies or appropriations for the usual current expenses of the State, and urgency statutes, and bills passed after being vetoed by the Governor.(d)(c) The Legislaturemayshall not present to the Governor any billto the Governorpassed in regular session in the first calendar year of the biennium afterNovember 15 of the second calendar year of the biennium of the legislative sessionthe 120th day of the period specified in paragraph (1) of subdivision (b) of Section 3, or any bill passed in regular session in the second calendar year of the biennium after the 60th day of the period specified in paragraph (2) of subdivision (b) of Section 3 .(e)(d) The Governor may reduce or eliminate one or more items of appropriation while approving other portions of a bill. The Governor shall append to the bill a statement of the items reduced or eliminated with the reasons for the action. The Governor shall transmit to the house originating the bill a copy of the statement and reasons. Items reduced or eliminated shall be separately reconsidered and may be passed over the Governor's veto in the same manner as bills.(f)(e) (1) If, following the enactment of the budget bill for the 2004-05 fiscal year , or any subsequent fiscal year or two-year fiscal period , the Governor determines that, for that fiscal year or fiscal period, as applicable , General Fund revenues will decline substantially below the estimate of General Fund revenues upon which the budget bill for that fiscal year or fiscal period, as applicable , as enacted, was based, or General Fund expenditures will increase substantially above that estimate of General Fund revenues, or both, the Governor may issue a proclamation declaring a fiscal emergency and shall thereupon cause the Legislature to assemble in special session for this purpose. The proclamation shall identify the nature of the fiscal emergency and shall be submitted by the Governor to the Legislature, accompanied by proposed legislation to address the fiscal emergency. (2) If the Legislature fails to pass and send to the Governor a bill or bills to address the fiscal emergency by the 45th day following the issuance of the proclamation, the Legislature may not act upon or take any action on any other bill , including casting a vote on any other bill in a policy or fiscal committee, or on the floor of the Assembly or Senate , nor may the Legislature adjourn for a joint recess, until that bill or those bills have been passed and sent to the Governor. (3) A bill addressing the fiscal emergency declared pursuant to this section shall contain a statement to that effect. Eighth-- That Section 11 of Article IV thereof is amended to read: SEC. 11. (a) The Legislature or either house may by resolution provide for the selection of committees necessary for the conduct of its business, including committees to ascertain facts and make recommendations to the Legislature on a subject within the scope of legislative control. (b) Each political party represented in each house shall, to the greatest extent possible, be proportionately represented in each legislative committee of that house. (c) (1) The Joint Legislative Budget Committee is established to ascertain facts and make recommendations to the Legislature and the houses thereof concerning the state budget, the revenues and expenditures of the State, and the organization and functions of the State and its departments, subdivisions, and agencies. (2) The membership of the Joint Legislative Budget Committee shall be as follows: (A) Chairperson of the Assembly Committee on Budget, appointed by the Speaker of the Assembly. (B) Vice-Chairperson of the Assembly Committee on Budget, appointed by the Assembly Minority Leader. (C) Four Assembly Members appointed by the Speaker of the Assembly. (D) Two Assembly Members appointed by the Assembly Minority Leader. (E) Chairperson of the Senate Committee on Budget and Fiscal Review, appointed by the President pro Tempore of the Senate. (F) Vice-Chairperson of the Senate Committee on Budget and Fiscal Review, appointed by the Senate Minority Leader. (G) Four Senators appointed by the President pro Tempore of the Senate. (H) Two Senators appointed by the Senate Minority Leader. (3) In addition to the advisory duties set forth in paragraph (1), the Joint Legislative Budget Committee may, by resolution, approve any changes proposed by the Governor pursuant to paragraph (5) of subdivision (c) of Section 12 to the enacted biennial budget bill. Notwithstanding any other provision of this Constitution, any changes to the enacted biennial budget bill thus approved shall take immediate effect as a statute. Ninth-- That Section 12 of Article IV thereof is amended to read: SEC. 12. (a) Within the first10seven days of eachcalendarodd-numbered year, the Governor shall submit to the Legislature, with an explanatory message, a budget for theensuingnext two-year fiscalyearperiod commencing on July 1, containing itemized statements for recommended state expenditures and estimated state revenues. If recommended expenditures exceed estimated revenues, the Governor shall recommend the sources from which the additional revenues should be provided. (b) The Governor and the Governor-elect may require a state agency, officer , or employee to furnish whatever information is deemed necessary to prepare the budget. (c) (1) The budget shall be accompanied by a budget bill itemizing recommended expenditures. (2) The budget bill shall be introduced immediately in each house by the persons chairing the committees that consider the budget. (3) The Legislature shall pass the budget bill by midnight onJune 15 of each yearthe last day of the 120-day period specified in paragraph (1) of subdivision (b) of Section 3 . (4) Until the budget bill has been enacted, the Legislature shall not send to the Governor for consideration any bill appropriating funds for expenditure during the fiscalyearperiod for which the budget bill is to be enacted, except emergency bills recommended by the Governor or appropriations for the salaries and expenses of the Legislature. (5) When the Legislature is not in session, the Governor may propose to the Legislature reductions to appropriations made in an enacted biennial budget bill. (d) No bill except the budget bill may contain more than one item of appropriation, and that for one certain, expressed purpose. Appropriations from the General Fund of the State, except appropriations for the public schools and appropriations in the budget bill and in other bills providing for appropriations related to the budget bill, are void unless passed in each house by rollcall vote entered in the journal, two-thirds of the membership concurring. (e) (1) Notwithstanding any other provision of law or of this Constitution, the budget bill and other bills providing for appropriations related to the budget bill may be passed in each house by rollcall vote entered in the journal, a majority of the membership concurring, to take effect immediately upon being signed by the Governor or upon a date specified in the legislation. Nothing in this subdivision shall affect the vote requirement for appropriations for the public schools contained in subdivision (d) of this section and in subdivision (b) of Section 8of this article. (2) For purposes of this section, "other bills providing for appropriations related to the budget bill" shall consist only of bills passed in the first year of the biennium that are identified as related to the budget in the budget bill passed by the Legislature. (f) The Legislature may control the submission, approval, and enforcement of budgets and the filing of claims for all state agencies. (g)For the 2004-05 fiscal year, or any subsequent fiscal year, theThe Legislaturemayshall not send to the Governor for consideration,nor mayand the Governor shall not sign into law, a budget bill that would appropriate from the General Fund, forthatthe two-year fiscalyearperiod addressed by that budget bill , a total amount that, when combined with all appropriations from the General Fund forthatthe fiscalyearperiod made as of the date of the budget bill's passage, and the amount of any General Fund moneys transferred to the Budget Stabilization Account for that fiscalyearperiod pursuant to Section 20 of Article XVI, exceeds General Fund revenues for that fiscalyearperiod estimated as of the date of the budget bill's passage. That estimate of General Fund revenues shall be set forth in the budget bill passed by the Legislature. (h) Notwithstanding any other provision of law or of this Constitution, including subdivision (c) of this section, Section 4 of this article, and Sections 4 and 8 of Article III, in any odd-numbered year in which the budget bill is not passed by the Legislature by midnight onJune 15the last day of the 120-day period specified in paragraph (1) of subdivision (b) of Section 3 , there shall be no appropriation from the current budget or future budget to pay any salary or reimbursement for travel or living expenses for Members of the Legislature during any regular or special session for the period from midnight onJune 15the last day of the 120-day period specified in paragraph (1) of subdivision (b) of Section 3 until the day that the budget bill is presented to the Governor. No salary or reimbursement for travel or living expenses forfeited pursuant to this subdivision shall be paid retroactively. Tenth-- That Section 1 of Article XIII B thereof is amended to read: SEC. 1. (a) The totalannualappropriations subject to limitation of the Stateand of each local governmentfor each two-year fiscal period shall not exceed the appropriations limit of theentity of governmentState for the prioryeartwo-year fiscal period adjusted for the change in the cost of living and the change in population, except as otherwise provided in this article. (b) The total annual appropriations subject to limitation of each local government for each fiscal year shall not exceed the appropriations limit of the local government for the prior fiscal year adjusted for the change in the cost of living and the change in population, except as otherwise provided in this article. (c) The amendments to this section made by the measure that added this subdivision shall take effect on July 1, 2013, and shall apply to fiscal periods commencing on or after July 1, 2013. Eleventh-- That Section 2 of Article XIII B thereof is amended to read: SEC. 2. (a) (1) Fifty percent of all revenues received by the State in afiscal year and in the fiscal year immediately following ittwo-year fiscal period in excess of the amountwhichthat may be appropriated by the State in compliance with this article during thatfiscal year and the fiscal year immediately following itperiod shall be transferred and allocated, from a fund established for that purpose, pursuant to Section 8.5 of Article XVI. (2) Fifty percent of all revenues received by the State in afiscal year and in the fiscal year immediately following ittwo-year fiscal period in excess of the amountwhichthat may be appropriated by the State in compliance with this article during thatfiscal year and the fiscal year immediately following itperiod shall be returned by a revision of tax rates or fee schedules within thenext twosubsequent fiscalyearsperiod . (b) All revenues received by an entity of government, other than the State, in a fiscal year and in the fiscal year immediately following it in excess of the amountwhichthat may be appropriated by the entity in compliance with this article during that fiscal year and the fiscal year immediately following it shall be returned by a revision of tax rates or fee schedules within the next two subsequent fiscal years. (c) The amendments to this section made by the measure that added this subdivision shall take effect July 1, 2013, and shall apply to fiscal periods commencing on or after July 1, 2013. Twelfth-- That Section 3 of Article XIII B thereof is amended to read: SEC. 3. The appropriations limit for anyfiscal yeartwo-year fiscal period, in the case of the State, or for any fiscal year, in the case of an entity of government other than the State, pursuant toSec.Section 1 shall be adjusted as follows: (a)In the event thatIf the financial responsibility of providing services is transferred, in whole or in part, whether by annexation, incorporation , or otherwise, from one entity of government to another, then for the fiscal period or fiscal year in whichsuchthe transfer becomes effective , the appropriations limit of the transferee entity shall be increased by such reasonable amount as thesaidaffected entities shall mutually agree to and the appropriations limit of the transferor entity shall be decreased by the same amount. (b)In the event thatIf the financial responsibility of providing services is transferred, in whole or in part, from an entity of government to a private entity, or the financial source for the provision of services is transferred, in whole or in part, from other revenues of an entity of government,to regulatory licenses, user charges , or user fees, then , for the fiscal period or fiscal year ofsuchthat transfer , the appropriations limit ofsuchthe affected entity of government shall be decreased accordingly. (c) (1)In the eventIf an emergency is declared by the legislative body of an entity of government, the appropriations limit of the affected entity of government may be exceeded , provided that the appropriations limits in the followingthree yearstwo fiscal periods, in the case of the State, or three fiscal years, in the case of local government, are reduced accordingly to prevent an aggregate increase in appropriations resulting from the emergency. (2)In the eventIf an emergency is declared by the Governor, appropriations approved by a two-thirds vote of the legislative body of an affected entity of government to an emergency account for expenditures relating to that emergency shall not constitute appropriations subject to limitation. As used in this paragraph, "emergency" means the existence, as declared by the Governor, of conditions of disaster or of extreme peril to the safety of persons and property within the State, or parts thereof, caused by such conditions as attack or probable or imminent attack by an enemy of the United States, fire, flood, drought, storm, civil disorder, earthquake, or volcanic eruption. (d) The amendments to this section made by the measure that added this subdivision shall take effect July 1, 2013, and shall apply to fiscal periods commencing on or after July 1, 2013. Thirteenth-- That Section 6 of Article XIII B thereof is amended to read: SEC. 6. (a) Whenever the Legislature or any state agency mandates a new program or higher level of service on any local government, the State shall provide a subvention of funds to reimburse that local government for the costs of the program or increased level of service, except that the Legislature may, but need not, provide a subvention of funds for the following mandates: (1) Legislative mandates requested by the local agency affected. (2) Legislation defining a new crime or changing an existing definition of a crime. (3) Legislative mandates enacted prior to January 1, 1975, or executive orders or regulations initially implementing legislation enacted prior to January 1, 1975. (b) (1) Except as provided in paragraph (2), for the 2005-06 fiscal year and every subsequent fiscal year through the 2012-13 fiscal year, and for the 2013-15 fiscal period and every subsequent two-year fiscalyearperiod , for a mandate for which the costs of a local government claimant have been determined in a preceding fiscal year or fiscal period, as applicable, to be payable by the State pursuant to law, the Legislature shall either appropriate, in theannualBudget Actbudget act , the full payable amount that has not been previously paid, or suspend the operation of the mandate for the fiscal year or fiscal period for which theannualBudget Actbudget act is applicable in a manner prescribed by law. (2) Payable claims for costs incurred prior to the 2004-05 fiscal year that have not been paid prior to the 2005-06 fiscal year may be paid over a term of years, as prescribed by law. (3) Ad valorem property tax revenues shall not be used to reimburse a local government for the costs of a new program or higher level of service. (4) This subdivision applies to a mandate only as it affects a city, county, city and county, or special district. (5) This subdivision shall not apply to a requirement to provide or recognize any procedural or substantive protection, right, benefit, or employment status of any local government employee or retiree, or of any local government employee organization, that arises from, affects, or directly relates to future, current, or past local government employment and that constitutes a mandate subject to this section. (c) A mandated new program or higher level of service includes a transfer by the Legislature from the State to cities, counties, cities and counties, or special districts of complete or partial financial responsibility for a required program for which the State previously had complete or partial financial responsibility. Fourteenth-- That Section 8 of Article XIII B thereof is amended to read: SEC. 8. As used in this article and except as otherwise expressly provided herein: (a) "Appropriations subject to limitation" of the State means any authorization to expend during afiscal yeartwo-year fiscal period the proceeds of taxes levied by or for the State, exclusive of state subventions for the use and operation of local government(other, other than subventions made pursuant to Section6)6, and further exclusive of refunds of taxes, benefit payments from retirement, unemployment insurance, and disability insurance funds. (b) "Appropriations subject to limitation" of an entity of local government means any authorization to expend during a fiscal year the proceeds of taxes levied by or for that entity and the proceeds of state subventions to that entity(other, other than subventions made pursuant to Section6)6, exclusive of refunds of taxes. (c) "Proceeds of taxes"shall includeincludes , butnot beis not restricted to, all tax revenues and the proceeds to an entity of government,from (1) regulatory licenses, user charges, and user fees to the extent that those proceeds exceed the costs reasonably borne by that entity in providing the regulation, product, or service, and (2) the investment of tax revenues. With respect to any local government, "proceeds of taxes"shall includeincludes subventions received from the State, other than pursuant to Section 6, and, with respect to the State,proceeds of taxes shall exclude such"proceeds of taxes" excludes these subventions. (d) "Local government" means any city, county, city and county, school district, special district, authority, or other political subdivision of or within the State. (e) (1) "Change in the cost of living" for the State, a school district, or a community college district means the percentage change in California per capita personal income from the precedingyeartwo-year fiscal period, in the case of the State, or the preceding fiscal year, in the case of a school district or community college district . (2) "Change in the cost of living" for an entity of local government, other than a school district or a community college district, shall be either (A) the percentage change in California per capita personal income from the preceding year, or (B) the percentage change in the local assessment roll from the preceding year for the jurisdiction due to the addition of local nonresidential new construction. Each entity of local government shall select its change in the cost of living pursuant to this paragraph annually by a recorded vote of the entity's governing body. (f) "Change in population" of any entity of government, other than the State, a school district, or a community college district, shall be determined by a method prescribed by theLegislature."ChangeLegislature. "Change in population" of a school district or a community college districtshall bemeans the percentage change in the average daily attendance of the school district or the number of full-time equivalent students of the community college district from the preceding fiscal year, as determined by a method prescribed by theLegislature."ChangeLegislature. "Change in population" of the State shall be determined by adding (1) the percentage change in the State's population multiplied by the percentage of the State's budget in the priorfiscal yeartwo-year fiscal period that is expended for other than educational purposes for kindergarten and grades one to 12, inclusive, and the community colleges, and (2) the percentage change in the total statewide average daily attendance in kindergarten and grades one to 12, inclusive, and the number of full-time equivalent students of the community colleges, multiplied by the percentage of the State's budget in the priorfiscal yeartwo-year fiscal period that is expended for educational purposes for kindergarten and grades one to 12, inclusive, and the communitycolleges.Anycolleges. Any determination of population pursuant to this subdivision, other than that measured by average daily attendance or the number of full-time equivalent students , shall be revised, as necessary, to reflect the periodic census conducted by the United States Department of Commerce, or successor department. (g) "Debt service" means appropriations required to pay the cost of interest and redemption charges, including the funding of any reserve or sinking fund required in connection therewith, on indebtedness existing or legally authorized as of January 1, 1979, or on bonded indebtedness thereafter approved according to law by a vote of the electors of the issuing entity voting in an election for that purpose. (h) The "appropriations limit" of each entity of government for each fiscal year or fiscal period, as applicable, is that amountwhichthat total annual appropriations subject to limitation may not exceed under Sections 1 and 3. However, the "appropriations limit" of each entity of government for the 1978 -79 fiscal year1978-79is the total of the appropriations subject to limitation of the entity for that fiscal year. For the 1978 - 79 fiscal year1978-79, state subventions to local governments, exclusive of federal grants, are deemed to have been derived from the proceeds of state taxes. (i) Except as otherwise provided in Section 5, "appropriations subject to limitation" do not include local agency loan funds or indebtedness funds, or investment(or, or authorizations toinvest)invest, funds of the State, or of an entity of local government in accounts at banks or savings and loan associations or in liquid securities. (j) The amendments to this section made by the measure that added this subdivision shall take effect July 1, 2013, and shall apply to fiscal periods commencing on or after July 1, 2013. Fifteenth-- That Section 10.5 of Article XIII B thereof is amended to read: SEC. 10.5. (a) For fiscal years beginning on or after July 1, 1990, the appropriations limit of each entity of government shall be the appropriations limit for the 1986-87 fiscal year adjusted for the changes made from that fiscal year pursuant to this article, as amended by the measure adding this section, adjusted for the changes required by Section 3. (b) In the case of the State, for the two-year fiscal period commencing on July 1, 2013, the appropriations limit shall be the aggregate of the appropriations limits for the 2011-12 and 2012-13 fiscal years, adjusted for the changes made pursuant to this article and adjusted for the changes required by Section 3. Sixteenth-- That Section 14 is added to Article XIII B thereof, to read: SEC. 14. State subventions provided during a fiscal period commencing on or after July 1, 2013, to an entity of local government shall be applied to an appropriate fiscal year as specified by statute, for purposes of determining appropriations subject to limitation for that entity. Seventeenth-- That Section 8 of Article XVI thereof is amended to read: SEC. 8. (a) From all state revenues there shall first be set apart the moneys to be applied by the State for support of the public school system and public institutions of higher education. (b)Commencing with the 1990-91 fiscal yearFor the 2013-15 fiscal period and each subsequent two-year fiscal period, the moneys to be applied by the State for the support of school districts and community college districts shall be not less than the greater of the following amounts: (1) The amountwhichthat , as a percentage of General Fund revenueswhichthat may be appropriated pursuant to Article XIII B, equals the percentage of General Fund revenues appropriated for school districts and community college districts, respectively, in the 1986 - 87 fiscal year1986-87. (2) The amount required to ensure that the total allocations to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIII B and allocated local proceeds of taxes shall not be less than the total amount from these sources in the prior fiscalyearperiod , excluding any revenues allocated pursuant to subdivision (a) of Section 8.5, adjusted for changes in enrollment and adjusted for the change in the cost of living pursuant to paragraph (1) of subdivision (e) of Section 8 of Article XIII B. This paragraph shall be operative only in a fiscalyearperiod in which the percentage growth in California per capita personal income is less than or equal to the percentage growth in per capita General Fund revenues plusone halfone-half ofone1 percent. For purposes of the 2013-15 fiscal period, "prior fiscal period," as used in this paragraph and paragraph (3), is deemed to refer to, collectively, the 2011-12 and 2012-13 fiscal years. (3) (A) The amount required to ensure that the total allocations to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIII B and allocated local proceeds of taxes shall equal the total amount from these sources in the prior fiscalyearperiod , excluding any revenues allocated pursuant to subdivision (a) of Section 8.5, adjusted for changes in enrollment and adjusted for the change in per capita General Fund revenues. (B) In addition, an amount equal to one-half ofone1 percent times the prioryearperiod total allocations to school districts and communitycollegescollege districts from General Fund proceeds of taxes appropriated pursuant to Article XIII B and allocated local proceeds of taxes, excluding any revenues allocated pursuant to subdivision (a) of Section 8.5, adjusted for changes in enrollment. (C) This paragraph (3) shall be operative only in a fiscalyearperiod in which the percentage growth in California per capita personal income in a fiscal year is greater than the percentage growth in per capita General Fund revenues plusone halfone-half ofone1 percent. (c) In any fiscalyearperiod , if the amount computed pursuant to paragraph (1) of subdivision (b) exceeds the amount computed pursuant to paragraph (2) of subdivision (b) by a difference that exceedsone and one-half1- 1/2 percent of General Fund revenues, the amount in excess ofone and one-half1- 1/2 percent of General Fund revenues shall not be considered allocations to school districts and communitycollegescollege districts for purposes of computing the amount of state aid pursuant to paragraph (2) or3(3) of subdivision (b) in the subsequent fiscalyearperiod . (d) In any fiscalyearperiod in which school districts and community college districts are allocated funding pursuant to paragraph (3) of subdivision (b) or pursuant to subdivision (h), they shall be entitled to a maintenance factor, equal to the difference between (1) the amount of General Fund moneyswhichthat would have been appropriated pursuant to paragraph (2) of subdivision (b) if that paragraph had been operative or the amount of General Fund moneyswhichthat would have been appropriated pursuant to subdivision (b) had subdivision (b) not been suspended, and (2) the amount of General Fund moneys actually appropriated to school districts and community college districts in that fiscalyearperiod . (e) The maintenance factor for school districts and community college districts determined pursuant to subdivision (d) shall be adjustedannuallyeach fiscal period for changes in enrollment, and adjusted for the change in the cost of living pursuant to paragraph (1) of subdivision (e) of Section 8 of Article XIII B, until it has been allocated in full. The maintenance factor shall be allocated in a manner determined by the Legislature in each fiscalyearperiod in which the percentage growth in per capita General Fund revenues exceeds the percentage growth in California per capita personal income. The maintenance factor shall be reduced eachyearfiscal period by the amount allocated by the Legislature in that fiscalyearperiod . The minimum maintenance factor amount to be allocated in a fiscalyearperiod shall be equal to the product of General Fund revenues from proceeds of taxes and one-half of the difference between the percentage growth in per capita General Fund revenues from proceeds of taxes and in California per capita personal income, not to exceed the total dollar amount of the maintenance factor. (f) For purposes of this section, "changes in enrollment" shall be measured by the percentage change in average daily attendance. However, in any fiscalyearperiod , there shall be no adjustment for decreases in enrollment between the prior fiscalyearperiod and the current fiscalyearperiod unless therehave beenwere also decreases in enrollment between the second prior fiscalyearperiod and the prior fiscalyear and between the third prior fiscal year and the second prior fiscal yearperiod . For purposes of this subdivision, "prior fiscal period" as applied prior to July 1, 2013, is deemed to refer to the average of the enrollments for two fiscal years, as appropriate. (g) For purposes of Article XIII B, the Legislature shall identify, in the budget bill for the 2013-15 fiscal period and each subsequent fiscal period, the amount of the appropriations made by that budget bill that apply for the support of school districts and community college districts for each of the two fiscal years within that fiscal period. (h) Subparagraph (B) of paragraph (3) of subdivision (b) may be suspended for oneyearfiscal period only when made part of or included within any bill enacted pursuant to Section 12 of Article IV. All other provisions of subdivision (b) may be suspended for oneyearfiscal period by the enactment of an urgency statute pursuant to Section 8 of Article IV, provided that the urgency statute may not be made part of or included within any bill enacted pursuant to Section 12 of Article IV. (i) The amendments to this section made by the measure that added this subdivision shall take effect July 1, 2013, and shall apply to fiscal periods commencing on or after July 1, 2013. Eighteenth-- That Section 8.5 of Article XVI thereof is amended to read: SEC. 8.5. (a) In addition to the amount required to be applied for the support of school districts and community college districts pursuant to Section 8,the Controller shallduring each fiscalyearperiod the Controller shall transfer and allocate all revenues available pursuant to paragraph1(1) of subdivision (a) of Section 2 of Article XIII B to that portion of the State School Fund restricted for elementary and high school purposes, and to that portion of the State School Fund restricted for community college purposes, respectively, in proportion to the enrollment in school districts and community college districts respectively. (1) With respect to funds allocated to that portion of the State School Fund restricted for elementary and high school purposes, no transfer or allocation of funds pursuant to this section shall be required at any time that the Director of Finance and the Superintendent of Public Instruction mutually determine that current annual expenditures per student equal or exceed the average annual expenditure per student of the 10 states with the highest annual expenditures per student for elementary and high schools, and that average class size equals or is less than the average class size of the 10 states with the lowest class size for elementary and high schools. (2) With respect to funds allocated to that portion of the State School Fund restricted for community college purposes, no transfer or allocation of funds pursuant to this section shall be required at any time that the Director of Finance and the Chancellor of the California Community Colleges mutually determine that current annual expenditures per student for community colleges in this State equal or exceed the average annual expenditure per student of the 10 states with the highest annual expenditures per student for community colleges. (b) Notwithstandingthe provisions ofArticle XIII B, funds allocated pursuant to this sectionshalldo not constitute appropriations subject to limitation. (c) From any funds transferred to the State School Fund pursuant to subdivision (a), the Controller shall , eachyearfiscal period , allocate to each school district and community college district an equal amount per enrollment in school districts from the amount in that portion of the State School Fund restricted for elementary and high school purposes and an equal amount per enrollment in community college districts from that portion of the State School Fund restricted for community college purposes. (d) All revenues allocated pursuant to subdivision (a) shall be expended solely for the purposes of instructional improvement and accountability as required by law. (e) Any school district maintaining an elementary or secondary school shall develop and cause to be prepared an annual audit accounting for such funds and shall adopt a School Accountability Report Card for each school. (f) The amendments to this section made by the measure that added this subdivision shall take effect July 1, 2013, and shall apply to fiscal periods commencing on or after July 1, 2013. Nineteenth-- That Section 20 of Article XVI thereof is amended to read: SEC. 20. (a) The Budget Stabilization Account is hereby created in the General Fund. (b) In each fiscal year or fiscal period as specified in paragraphs (1) to(3)(4) , inclusive, the Controller shall transfer from the General Fund to the Budget Stabilization Account the following amounts: (1) No later than September 30, 2006, a sum equal to 1 percent of the estimated amount of General Fund revenues for the 2006-07 fiscal year. (2) No later than September 30, 2007, a sum equal to 2 percent of the estimated amount of General Fund revenues for the 2007-08 fiscal year. (3) No later than September 30, 2008, and annually thereafter until 2013 , a sum equal to 3 percent of the estimated amount of General Fund revenues for the current fiscal year. (4) No later than September 30, 2013, and by September 30 of each odd-numbered year thereafter, a sum equal to 3 percent of the estimated amount of General Fund revenues for the current fiscal period. (c) The transfer of moneys shall not be required by subdivision (b) in any fiscal year or fiscal period to the extent that the resulting balance in the account would exceed 5 percent of the General Fund revenues estimate set forth in the budget bill for that fiscal year or fiscal period , as enacted, or eight billion dollars ($8,000,000,000), whichever is greater. The Legislature may, by statute, direct the Controller, for one or more fiscal years or fiscal periods , to transfer into the account amounts in excess of the levels prescribed by this subdivision. (d) Subject to any restriction imposed by this section, funds transferred to the Budget Stabilization Account shall be deemed to be General Fund revenues for all purposes of this Constitution. (e) The transfer of moneys from the General Fund to the Budget Stabilization Account may be suspended or reduced for a fiscal year or fiscal period, as applicable, as specified by an executive order issued by the Governor no later than June 1 of the immediately preceding fiscal year or fiscal period . (f) (1) Of the moneys transferred to the account in each fiscal year or fiscal period , 50 percent, up to the aggregate amount of five billion dollars ($5,000,000,000) for all fiscal years and fiscal periods , shall be deposited in the Deficit Recovery Bond Retirement Sinking Fund Subaccount, which is hereby created in the account for the purpose of retiring deficit recovery bonds authorized and issued as described in Section 1.3, in addition to any other payments provided for by law for the purpose of retiring those bonds. The moneys in the sinking fund subaccount are continuously appropriated to the Treasurer to be expended for that purpose in the amounts, at the times, and in the manner deemed appropriate by the Treasurer. Any funds remaining in the sinking fund subaccount after all of the deficit recovery bonds are retired shall be transferred to the account, and may be transferred to the General Fund pursuant to paragraph (2). (2) All other funds transferred to the account in a fiscal year or fiscal period shall not be deposited in the sinking fund subaccount and may, by statute, be transferred to the General Fund. Twentieth-- That Section 2 of Article XIX B thereof is amended to read: SEC. 2. (a) For the 2003-04 fiscal year and each fiscal year or fiscal period thereafter, as applicable, all revenues that are collected during the fiscal year or fiscal period 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, as defined for purposes of the Motor Vehicle Fuel License Tax Law (Part 2 (commencing with Section 7301) of Division 2 of the Revenue and Taxation Code), shall be deposited into the Transportation Investment Fund or its successor, which is hereby created in the State Treasury and which is hereby declared to be a trust fund. The Legislature may not change the status of the Transportation Investment Fund as a trust fund. (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 March 6, 2002. (2) For each of the 2008-09 , 2009-10, 2010-11, 2011-12, and 2012-13 fiscalyearyears, and for each two-year fiscalyearperiod thereafter, moneys in the Transportation Investment Fund shall be allocated solely for the following purposes: (A) Public transit and mass transportation. Moneys appropriated for public transit and mass transportation shall be allocated as follows: (i) Twenty-five percent pursuant to subdivision (b) of Section 99312 of the Public Utilities Code, as that section read on July 30, 2009; (ii) Twenty-five percent pursuant to subdivision (c) of Section 99312 of the Public Utilities Code, as that section read on July 30, 2009; and (iii) Fifty percent for the purposes of subdivisions (a) and (b) of Section 99315 of the Public Utilities Code, as that section read on July 30, 2009. (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 each of the 2008-09 , 2009-10, 2010-11, 2011-12, and 2012-13 fiscalyearyears, and for each two-year fiscalyearperiod thereafter, moneys in the Transportation Investment Fund are hereby continuously appropriated to the Controller without regard to fiscal years, which shall be allocated as follows:(A)(1) Twenty percent of the moneys for the purposes set forth in subparagraph (A) of paragraph (2) of subdivision (b).(B)(2) Forty percent of the moneys for the purposes set forth in subparagraph (B) of paragraph (2) of subdivision (b).(C)(3) Twenty percent of the moneys for the purposes set forth in subparagraph (C) of paragraph (2) of subdivision (b).(D)(4) Twenty percent of the moneys for the purposes set forth in subparagraph (D) of paragraph (2) of subdivision (b). (d) The Legislature may not enact a statute that modifies the percentage shares set forth in subdivision (c) until all of the following have occurred: (1) The California Transportation Commission has held no less than four public hearings in different parts of the State to receive public input about the need for public transit, mass transportation, transportation capital improvement projects, and street and highway maintenance;. (2) The California Transportation Commission has published a report describing the input received at the public hearings and how the modification to the statutory allocation is consistent with the orderly achievement of local, regional and statewide goals for public transit, mass transportation, transportation capital improvements, and street and highway maintenance in a manner that is consistent with local general plans, regional transportation plans, and the California Transportation Plan;. (3) Ninety days have passed since the publication of the report by the California Transportation Commission. (4) The statute enacted by the Legislature pursuant to this subdivision must be 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 revenues described in subdivision (a) are expended solely for the purposes set forth in paragraph (2) of subdivision (b). (e) (1) An amount equivalent to the total amount of revenues that were not transferred from the General Fund of the State to the Transportation Investment Fund, as of July 1, 2007, because of a suspension of transfer of revenues pursuant to this section as it read on January 1, 2006, but excluding the amount to be paid to the Transportation Deferred Investment Fund pursuant to Section 63048.65 of the Government Code, shall be transferred from the General Fund to the Transportation Investment Fund no later than June 30, 2016. Until this total amount has been transferred, the amount of transfer payments to be made in each fiscal year or fiscal period shall not be less than one-tenth of the total amount required to be transferred by June 30, 2016. The transferred revenues shall be allocated solely for the purposes set forth in this section as if they had been received in the absence of a suspension of transfer of revenues. (2) The Legislature may provide by statute for the issuance of bonds by the state or local agencies, as applicable, that are secured by the minimum transfer payments required by paragraph (1). Proceeds from the sale of those bonds shall be allocated solely for the purposes set forth in this section as if they were revenues subject to allocation pursuant to paragraph (2) of subdivision (b). (f) This section constitutes the sole method of allocating, distributing, and using the revenues described in subdivision (a). The purposes described in paragraph (2) of subdivision (b) are the sole purposes for which the revenues described in subdivision (a) may be used. The Legislature may not enact a statute or take any other action which, permanently or temporarily, does any of the following: (1) Transfers, diverts, or appropriates the revenues described in subdivision (a) for any other purposes than those described in paragraph (2) of subdivision (b);. (2) Authorizes the expenditures of the revenues described in subdivision (a) for any other purposes than those described in paragraph (2) of subdivision (b)or;. (3) Borrows or loans the revenues described in subdivision (a), regardless of whether these revenues remain in the Transportation Investment Fund or are transferred to another fund or account such as the Public Transportation Account, a trust fund in the State Transportation Fund. (g) For purposes of this article, "mass transportation," "public transit" and "mass transit" have the same meanings as "public transportation." "Public transportation" means: (1) (A) Surface transportation service provided to the general public, complementary paratransit service provided to persons with disabilities as required by42 U.S.C.Section 12143 of Title 42 of the United States Code , or similar transportation provided to people with disabilities or the elderly; (B) operated by bus, rail, ferry, or other conveyance on a fixed route, demand response, or otherwise regularly available basis; (C) generally for which a fare is charged; and (D) provided by any transit district, included transit district, municipal operator, included municipal operator, eligible municipal operator, or transit development board, as those terms were defined in Article 1 (commencing with Section 99200) of Chapter 4 of Part 11 of Division 10 of the Public Utilities Code on January 1, 2009, a joint powers authority formed to provide mass transportation services, an agency described in subdivision (f) of Section 15975 of the Government Code, as that section read on January 1, 2009, any recipient of funds underSectionsSection 99260, 99260.7, or 99275, or subdivision (c) of Section 99400 of the Public Utilities Code, as those sections read on January 1, 2009, or a consolidated agency as defined in Section 132353.1 of the Public Utilities Code, as that section read on January 1, 2009. (2) Surface transportation service provided by the Department of Transportation pursuant to subdivision (a) of Section 99315 of the Public Utilities Code, as that section read on July 30, 2009. (3) Public transit capital improvement projects, including those identified in subdivision (b) of Section 99315 of the Public Utilities Code, as that section read on July 30, 2009. (h) If the Legislature reduces or repeals the taxes described in subdivision (a) and adopts an alternative source of revenue to replace the moneys derived from those taxes, the replacement revenue shall be deposited into the Transportation Investment Fund, dedicated to the purposes listed in paragraph (2) of subdivision (b), and allocated pursuant to subdivision (c). All other provisions of this article shall apply to any revenues adopted by the Legislature to replace the moneys derived from the taxes described in subdivision (a). Twenty-First-- That Section 4 of Article XXXV thereof is amended to read: SEC. 4. Funds authorized for, or made available to, the institute shall be continuously appropriated without regard to fiscal year or fiscal period , shall be available and used only for the purposes provided in this article, and shall not be subject to appropriation or transfer by the Legislature or the Governor for any other purpose. Twenty-Second-- That the amendments set forth in this measure shall become operative on the first Monday in December 2012 after the date on which this measure is approved by the voters.