Bill Text: CA ACA30 | 2017-2018 | Regular Session | Introduced


Bill Title: Part-time Legislature.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-03-06 - From printer. May be heard in committee April 5. [ACA30 Detail]

Download: California-2017-ACA30-Introduced.html


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Constitutional Amendment No. 30


Introduced by Assembly Member Travis Allen

March 05, 2018


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 thereof, by amending Sections 3, 4, 8, 10, 11, 12, and 12.5 of Article IV thereof, by amending Sections 6 and 10.5 of, adding Section 14 to, and amending, repealing, and adding Sections 1, 2, 3, and 8 of, Article XIII B thereof, by amending Sections 20, 21, and 22 of, and amending, repealing, and adding Sections 8 and 8.5 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 30, as introduced, Travis Allen. Part-time Legislature.
Existing provisions of the California Constitution provide that the Legislature meets in a biennial regular session, commencing with the first Monday in December in each even-numbered year, when each house is required to immediately organize, and concluding at midnight on November 30 of the next even-numbered year.
This measure would create a part-time Legislature by limiting the Legislature to meet each year from January 1 to January 31 and from May 1 to June 30. The measure would require that odd-numbered years of a two-year session be limited to budget-related measures and even-numbered years to be limited to other legislation. The measure would prohibit the salary of a Member of the Legislature from exceeding $1,500 per month. The measure would delete provisions of the Constitution made obsolete by the measure, and make other conforming changes.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 2017–18 Regular Session commencing on the fifth day of December 2016, 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 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 each house shall immediately organize. Each regular 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) (A) After the Legislature has organized, each house may reconvene in regular session each year from January 1 to January 31 and from May 1 to June 30, and shall not otherwise meet in regular session during the biennium, except each year for up to five additional days for the purpose of reconsidering a bill vetoed by the Governor pursuant to subdivision (a) of Section 10.

(b)

(2) Any day that a house duly convenes in regular session in which a rollcall is taken shall be counted as a day for the purpose of this section.
(c) 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. Special sessions shall not exceed 15 legislative days.

Third—

 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 12 of 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. 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.
(d) Notwithstanding Section 8 of Article III, a member of the Legislature shall not receive a salary in excess of one thousand five hundred dollars ($1,500) per month.

Fourth—

 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 fourths three-fourths of the membership concurring.
(b) (1) 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 on 3 three days in each house except that the house may dispense with this requirement by rollcall vote entered in the journal, two thirds two-thirds of the membership concurring.
(2) No bill may be passed or ultimately become a statute unless the bill with any amendments has been printed, distributed to the members, and published on the Internet, in its final form, for at least 72 hours before the vote, except that this notice period may be waived if the Governor has submitted to the Legislature a written statement that dispensing with this notice period for that bill is necessary to address a state of emergency, as defined in paragraph (2) of subdivision (c) of Section 3 of Article XIII B, that has been declared by the Governor, and the house considering the bill thereafter dispenses with the notice period for that bill by a separate rollcall vote entered in the journal, two thirds of the membership concurring, prior to the vote on the bill.
(3) 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 in paragraphs (2) and (3) paragraph (2) 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 thirds two-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.
(e) Only the budget bill and other bills providing for appropriations related to the budget bill, as defined in Section 12, may be introduced in the odd-numbered year of a regular session. The budget bill and other bills providing for appropriations related to the budget bill shall not be introduced in the even-numbered year of a regular session.

Fifth—

 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)Any bill

(b) (1) Any bill passed by the Legislature in regular session before September 1 of the second calendar year of the biennium of the legislative session July 1 and in the possession of the Governor on or after September 1 July 1 that is not returned on or before September July 30 of that year 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 (3) or (4) of this subdivision (2) or (3) is 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)The Legislature may not present any bill to the Governor after November 15 of the second calendar year of the biennium of the legislative session.

(e)

(c) 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)

(d) (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 the 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 on any other bill, 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.

Sixth—

 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) A committee of a house of the Legislature may hold a hearing only on a day on which that house is in session, and a joint committee may hold a hearing only on a day in which both houses are in session. Any day upon which a house duly convenes in regular or special session in which a rollcall is taken is a session day for the purposes of this subdivision.

Seventh—

 That Section 12 of Article IV thereof is amended to read:

SEC. 12.
 (a) Within the first 10 days of each calendar odd-numbered year, the Governor shall submit to the Legislature, with an explanatory message, a budget for the ensuing fiscal year next two-year fiscal period 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 on June 15 of each the odd-numbered year.
(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 fiscal year period 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.
(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 8 of this article.
(2) For purposes of this section, “other bills providing for appropriations related to the budget bill” shall consist only of bills 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 2019–2020 fiscal year period, or any subsequent fiscal year period, the Legislature may not send to the Governor for consideration, nor may the Governor sign into law, a budget bill that would appropriate from the General Fund, for that fiscal year period, a total amount that, when combined with all appropriations from the General Fund for that the fiscal year period 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 fiscal year period pursuant to Section 20 of Article XVI, exceeds General Fund revenues for that fiscal year period 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 on June 15, 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 on June 15 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.

Eighth—

 That Section 12.5 of Article IV thereof is amended to read:

SEC. 12.5.
 Within 10 days following the submission of a budget pursuant to subdivision (a) of Section 12, following the proposed adjustments to the Governor’s Budget required by subdivision (e) of Section 13308 of the Government Code or a successor statute, and following the enactment of the budget bill, or as soon as feasible thereafter, the Director of Finance shall submit to the Legislature both of the following:
(a) Estimates of General Fund revenues for the ensuing fiscal year period and for the three two fiscal years periods thereafter.
(b) Estimates of General Fund expenditures for the ensuing fiscal year period and for the three two fiscal years periods thereafter.

Ninth—

 That Section 1 of Article XIII B thereof is amended to read:

SEC. 1.
 (a) The total annual appropriations subject to limitation of the State and of each local government shall not exceed the appropriations limit of the entity of government for the prior year adjusted for the change in the cost of living and the change in population, except as otherwise provided in this article.
(b) This section does not apply to any fiscal period commencing on or after July 1, 2019. This section shall remain in effect until July 1, 2019, and as of that date is repealed. Section 1 of Article XIII B, as added by the measure that amended this section to add this subdivision, shall become operative on July 1, 2019, and shall apply to fiscal periods commencing on or after July 1, 2019.

Tenth—

 That Section 1 is added to Article XIII B thereof, to read:

SECTION 1.
 (a) The total appropriations subject to limitation of the State for each two‑year fiscal period may not exceed the appropriations limit of the State for the prior two‑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 may 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.

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 a fiscal year and in the fiscal year immediately following it in excess of the amount which that may be appropriated by the State in compliance with this article during that fiscal year and the fiscal year immediately following it 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 a fiscal year and in the fiscal year immediately following it in excess of the amount which that may be appropriated by the State 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 during the next subsequent two subsequent fiscal years.
(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 amount which that 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) This section does not apply to any fiscal period commencing on or after July 1, 2019. This section shall remain in effect until July 1, 2019, and as of that date is repealed. Section 2 of Article XIII B, as added by the measure that amended this section to add this subdivision, shall become operative on July 1, 2019, and shall apply to fiscal periods commencing on or after July 1, 2019.

Twelfth—

 That Section 2 is added to Article XIII B thereof, to read:

SEC. 2.
 (a) (1) Fifty percent of all revenues received by the State in a two‑year fiscal period in excess of the amount that may be appropriated by the State in compliance with this article during that period 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 a two‑year fiscal period in excess of the amount that may be appropriated by the State in compliance with this article during that period shall be returned by a revision of tax rates or fee schedules within the subsequent fiscal period.
(b) All revenues received by an entity of government other than the State in a fiscal year and in the subsequent fiscal year in excess of the amount that 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.

Thirteenth—

 That Section 3 of Article XIII B thereof is amended to read:

SEC. 3.
 The appropriations limit for any fiscal year pursuant to Sec. Section 1 shall be adjusted as follows:
(a) In the event that If 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 year in which such that transfer becomes effective the appropriations limit of the transferee entity shall be increased by such reasonable amount as the said those entities shall mutually agree and the appropriations limit of the transferor entity shall be decreased by the same amount.
(b) In the event that If 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 year of such that transfer the appropriations limit of such the entity of government shall be decreased accordingly.
(c) (1) In the event If 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 following three years are reduced accordingly to prevent an aggregate increase in appropriations resulting from the emergency.
(2) In the event If 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 do 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) This section does not apply to any fiscal period commencing on or after July 1, 2019. This section shall remain in effect until July 1, 2019, and as of that date is repealed. Section 3 of Article XIII B, as added by the measure that amended this section to add this subdivision, shall become operative on July 1, 2019, and shall apply to fiscal periods commencing on or after July 1, 2019.

Fourteenth—

 That Section 3 is added to Article XIII B thereof, to read:

SEC. 3.
 The appropriations limit for any two‑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 to Section 1 shall be adjusted as follows:
(a) If 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 which the transfer becomes effective, the appropriations limit of the transferee entity shall be increased by such reasonable amount as the affected entities shall mutually agree and the appropriations limit of the transferor entity shall be decreased by the same amount.
(b) If 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 of that transfer, the appropriations limit of the affected entity of government shall be decreased accordingly.
(c) (1) If 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 following two 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) If 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 do 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.

Fifteenth—

 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.
(4) Legislative mandates contained in statutes within the scope of paragraph (7) of subdivision (b) of Section 3 of Article I.
(b) (1) Except as provided in paragraph (2), for the 2005–06 fiscal year and every subsequent fiscal year or two-year fiscal period, for a mandate for which the costs of a local government claimant have been determined in a preceding fiscal year to be payable by the State pursuant to law, the Legislature shall either appropriate, in the annual Budget Act budget 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 the annual Budget Act budget 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.

Sixteenth—

 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 a fiscal year 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 Section 6) 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 Section 6) 6, exclusive of refunds of taxes.
(c) “Proceeds of taxes” shall include includes, but not be is 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 preceding year.
(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 the Legislature.
“Change in population” of a school district or a community college district shall be means 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 the Legislature.
“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 prior fiscal year 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 thenumber of full-time equivalent students of the community colleges, multiplied by the percentage of the State’s budget in the prior fiscal year that is expended for educational purposes for kindergarten and grades one to 12, inclusive, and the community colleges.
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 is that amount which that 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 year 1978–79 is the total of the appropriations subject to limitation of the entity for that fiscal year. For the 197879 fiscal year 1978–79, 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, investment (or authorizations to 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) This section does not apply to any fiscal period commencing on or after July 1, 2019. This section shall remain in effect until July 1, 2019, and as of that date is repealed. Section 8 of Article XIII B, as added by the measure that amended this section to add this subdivision, shall become operative on July 1, 2019, and shall apply to fiscal periods commencing on or after July 1, 2019.

Seventeenth—

 That Section 8 is added to Article XIII B thereof, 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 a two-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 than subventions made pursuant to Section 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 than subventions made pursuant to Section 6, exclusive of refunds of taxes.
(c) “Proceeds of taxes” includes, but is 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” includes subventions received from the State, other than pursuant to Section 6, and, with respect to the State, “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 preceding two-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 the Legislature. “Change in population” of a school district or a community college district means 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 the Legislature. “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 prior two-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 in the community colleges, multiplied by the percentage of the State’s budget in the prior two-year fiscal period that is expended for educational purposes for kindergarten and grades one to 12, inclusive, and the community colleges. 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 amount that the total 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 year is the total of the appropriations subject to limitation of the entity for that fiscal year. For the 1978–79 fiscal year, 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 authorizations to 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.

Eighteenth—

 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, 2019, the appropriations limit shall be the aggregate of the appropriations limits for the 2017–18 and 2018–19 fiscal years, adjusted for the changes made pursuant to this article and adjusted for the changes required by Section 3.

Nineteenth—

 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, 2019, 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.

Twentieth—

 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 year, 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 amount which that, as a percentage of General Fund revenues which that 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 198687 fiscal year 1986–87.
(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 fiscal year, 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 fiscal year 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 plus one half one‑half of one 1 percent.
(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 fiscal year, 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 of one 1 percent times the prior year total allocations to school districts and community colleges college 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 fiscal year 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 plus one half one‑half of one 1 percent.
(c) In any fiscal year, 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 exceeds one and one-half 1–1/2 percent of General Fund revenues, the amount in excess of one and one-half 1–1/2 percent of General Fund revenues shall not be considered allocations to school districts and community colleges college districts for purposes of computing the amount of state aid pursuant to paragraph (2) or 3 (3) of subdivision (b) in the subsequent fiscal year.
(d) In any fiscal year in which school districts and community college districts are allocated funding pursuant to paragraph (3) of subdivision (b) or pursuant to subdivision (h) (g), they shall be entitled to a maintenance factor, equal to the difference between (1) the amount of General Fund moneys which that would have been appropriated pursuant to paragraph (2) of subdivision (b) if that paragraph had been operative or the amount of General Fund moneys which that 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 fiscal year.
(e) The maintenance factor for school districts and community college districts determined pursuant to subdivision (d) shall be adjusted annually 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 fiscal year 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 each fiscal year by the amount allocated by the Legislature in that fiscal year. The minimum maintenance factor amount to be allocated in a fiscal year 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 fiscal year, there shall be no adjustment for decreases in enrollment between the prior fiscal year and the current fiscal year unless there have been decreases in enrollment between the second prior fiscal year and the prior fiscal year and between the third prior fiscal year and the second prior fiscal year.

(h)

(g) Subparagraph (B) of paragraph (3) of subdivision (b) may be suspended for one year 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 one year 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.
(h) This section does not apply to any fiscal period commencing on or after July 1, 2019. This section shall remain in effect until July 1, 2019, and as of that date is repealed. Section 8 of Article XVI, as added by the measure that amended this section to add this subdivision, shall become operative on July 1, 2019, and shall apply to fiscal periods commencing on or after July 1, 2019.

Twenty-First—

 That Section 8 is added to Article XVI thereof, 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) For the 2019–21 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 amount that, as a percentage of General Fund revenues that 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 year.
(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 fiscal period, 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 fiscal period 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 plus one-half of 1 percent. For purposes of the 2019–21 fiscal period, “prior fiscal period,” as used in this paragraph and paragraph (3), is deemed to refer to, collectively, the 2017–18 and 2018–19 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 fiscal period, 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 of 1 percent times the prior fiscal period 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, 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 fiscal period in which the percentage growth in California per capita personal income in a fiscal period is greater than the percentage growth in per capita General Fund revenues plus one-half of 1 percent.
(c) In any fiscal period, 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 exceeds 11/2 percent of General Fund revenues, the amount in excess of 11/2 percent of General Fund revenues shall not be considered allocations to school districts and community college districts for purposes of computing the amount of state aid pursuant to paragraph (2) or (3) of subdivision (b) in the subsequent fiscal period.
(d) In any fiscal period 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 moneys that would have been appropriated pursuant to paragraph (2) of subdivision (b) if that paragraph had been operative or the amount of General Fund moneys that 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 fiscal period.
(e) The maintenance factor for school districts and community college districts determined pursuant to subdivision (d) shall be adjusted each 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 fiscal period 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 each fiscal period by the amount allocated by the Legislature in that fiscal period. The minimum maintenance factor amount to be allocated in a fiscal period 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. The adjustments and repayment shall also include the maintenance factors, if any, determined pursuant to subdivision (d) of the predecessor to this section.
(f) For purposes of this section, “changes in enrollment” shall be measured by the percentage change in average daily attendance. However, in any fiscal period, there shall be no adjustment for decreases in enrollment between the prior fiscal period and the current fiscal period unless there were also decreases in enrollment between the second prior fiscal period and the prior fiscal period. For purposes of this subdivision, “prior fiscal period” as applied prior to July 1, 2019, 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 2019–21 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 one fiscal 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 one fiscal 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.
(Sec. 8 amended June 5, 1990, by Prop. 111. Res. Ch. 66, 1989.Effective July 1, 1990.)

Twenty-Second—

 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 shall during each fiscal year the Controller shall transfer and allocate all revenues available pursuant to paragraph 1 (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) Notwithstanding the provisions of Article XIII B, funds allocated pursuant to this section shall do not constitute appropriations subject to limitation.
(c) From any funds transferred to the State School Fund pursuant to subdivision (a), the Controller shall, each fiscal year, 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) This section does not apply to any fiscal period commencing on or after July 1, 2019. This section shall remain in effect until July 1, 2019, and as of that date is repealed. Section 8.5 of Article XVI, as added by the measure that amended this section to add this subdivision, shall become operative on July 1, 2019, and shall apply to fiscal periods commencing on or after July 1, 2019.

Twenty-Third—

 That Section 8.5 is added to Article XVI thereof, 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, during each two-year fiscal period the Controller may transfer and allocate all revenues available pursuant to paragraph (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) Notwithstanding Article XIII B, funds allocated pursuant to this section do not constitute appropriations subject to limitation.
(c) From any funds transferred to the State School Fund pursuant to subdivision (a), the Controller shall, each fiscal 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 those funds and shall adopt a School Accountability Report Card for each school.

Twenty-Fourth—

 That Section 20 of Article XVI thereof is amended to read:

SEC. 20.
 (a) (1) The Budget Stabilization Account is hereby created in the General Fund.
(2) (A) For the 2015–16 fiscal year and each fiscal year thereafter, thereafter through 2018, based on the Budget Act for the fiscal year, the Controller shall transfer from the General Fund to the Budget Stabilization Account, no later than October 1, a sum equal to 1.5 percent of the estimated amount of General Fund revenues for that fiscal year.
(B) No later than October 1, 2019, and by October 1 of each odd-numbered year thereafter, the Controller shall transfer from the General Fund to the Budget Stabilization Account a sum equal to 1.5 percent of the estimated amount of General Fund revenues for the current fiscal period.
(b) (1) For the 2015–16 fiscal year and each fiscal year or fiscal period thereafter, based on the Budget Act for the fiscal year, year or fiscal period, the Department of Finance shall provide to the Legislature all of the following information:
(A) An estimate of the amount of General Fund proceeds of taxes that may be appropriated pursuant to Article XIII B for that fiscal year. year or fiscal period.
(B) (i) An estimate of that portion of the General Fund proceeds of taxes identified in subparagraph (A) that is derived from personal income taxes paid on net capital gains.
(ii) The portion of the estimate in clause (i) that exceeds 8 percent of the estimate made under subparagraph (A).
(C) That portion of the state’s funding obligation under Section 8 that results from including the amount calculated under clause (ii) of subparagraph (B), if any, as General Fund proceeds of taxes.
(D) The amount of any appropriations described in clause (ii) of subparagraph (B) of paragraph (1) of, or subparagraph (C) of paragraph (2) of, subdivision (c), that are made from the revenues described in clause (ii) of subparagraph (B) of this paragraph.
(E) The amount resulting from subtracting the combined values calculated under subparagraphs (C) and (D) from the value calculated under clause (ii) of subparagraph (B). If less than zero, the amount shall be considered zero for this purpose.
(F) The lesser of the amount calculated under subparagraph (E) or the amount of transfer resulting in the balance in the Budget Stabilization Account reaching the limit specified in subdivision (e).
(2) In the 2016–17 fiscal year, with respect to the 2015–16 fiscal year only, and in the 2017–18 fiscal year and each fiscal year or fiscal period thereafter, separately with respect to each of the two next preceding fiscal years, year or fiscal periods, as applicable, the Department of Finance shall calculate all of the following, using the same methodology used for the relevant fiscal year, year or fiscal period, and provide those calculations to the Legislature:
(A) An updated estimate of the amount of General Fund proceeds of taxes that may be appropriated pursuant to Article XIII B.
(B) (i) An updated estimate of that portion of the General Fund proceeds of taxes identified in subparagraph (A) that is derived from personal income taxes paid on net capital gains.
(ii) That portion of the updated estimate in clause (i) that exceeds 8 percent of the updated estimate made under subparagraph (A).
(C) The updated calculation of that portion of the state’s funding obligation under Section 8 that results from including the updated amount calculated under clause (ii) of subparagraph (B), if any, as General Fund proceeds of taxes.
(D) The amount of any appropriations described in clause (ii) of subparagraph (B) of paragraph (1) of, or subparagraph (C) of paragraph (2) of, subdivision (c), that are made from the revenues described in clause (ii) of subparagraph (B) of paragraph (1).
(E) The amount resulting from subtracting the combined values calculated under subparagraphs (C) and (D) from the value calculated under clause (ii) of subparagraph (B). If less than zero, the amount shall be considered zero for this purpose.
(F) The amount previously transferred for the fiscal year or fiscal period by the Controller from the General Fund to the Budget Stabilization Account pursuant to subdivisions (c) and (d).
(G) The lesser of (i) the amount, not less than zero, resulting from subtracting, from the amount calculated under subparagraph (E), the value of any suspension or reduction of transfer pursuant to paragraph (1) of subdivision (a) of Section 22 previously approved by the Legislature for the relevant fiscal year, and the amount previously transferred for that fiscal year or fiscal period by the Controller as described in subparagraph (F), or (ii) the amount of transfer resulting in the balance in the Budget Stabilization Account reaching the limit as specified in subdivision (e).
(c) (1) (A) By October 1 of the 2015–16 fiscal year and each fiscal year or fiscal period thereafter to the 2029–30 fiscal year, inclusive, July 1, 2029, to July 1, 2031, fiscal period, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (2) and (3) of subdivision (h), and the sum identified in paragraph (2) of subdivision (a), the Controller shall transfer amounts from the General Fund and the Budget Stabilization Account, pursuant to a schedule provided by the Director of Finance, as provided in subparagraph (B).
(B) Notwithstanding any other provision of this section, in the fiscal year or fiscal period to which the Budget Act identified in subparagraph (A) applies:
(i) Fifty percent of both the amount identified in paragraph (2) of subdivision (a), and the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), shall be transferred from the General Fund to the Budget Stabilization Account.
(ii) The remaining 50 percent shall be appropriated by the Legislature for one or more of the following obligations and purposes:
(I) Unfunded prior fiscal year General Fund obligations pursuant to Section 8 that existed on July 1, 2014.
(II) Budgetary loans to the General Fund, from funds outside the General Fund, that had outstanding balances on January 1, 2014.
(III) Payable claims for mandated costs incurred prior to the 2004–05 fiscal year that have not yet been paid, and that pursuant to paragraph (2) of subdivision (b) of Section 6 of Article XIII B are permitted to be paid over a term of years, as prescribed by law.
(IV) Unfunded liabilities for state-level pension plans and prefunding other postemployment benefits, in excess of current base amounts as established for the fiscal year or fiscal period in which the funds would otherwise be transferred to the Budget Stabilization Account. For the purpose of this subclause, current base amounts are those required to be paid pursuant to law, an approved memorandum of understanding, benefit schedules established by the employer or entity authorized to establish those contributions for employees excluded or exempted from collective bargaining, or any combination of these. To qualify under this subclause, the appropriation shall supplement and not supplant funding that would otherwise be made available to pay for the obligations described in this subclause for the fiscal year or fiscal period or the subsequent fiscal year. year or fiscal period.
(2) (A) By October 1 of the 2030–31 fiscal year July 1, 2031, to July 1, 2033, fiscal period and each fiscal year period thereafter, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (2) and (3) of subdivision (h), the Controller shall transfer amounts from the General Fund to the Budget Stabilization Account, pursuant to a schedule provided by the Director of Finance, as provided in subparagraph (B).
(B) In the fiscal year or fiscal period to which the Budget Act identified in subparagraph (A) applies, both the amount identified in paragraph (2) of subdivision (a), and the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), shall be transferred from the General Fund to the Budget Stabilization Account.
(C) Notwithstanding any other provision of this section, the Legislature may appropriate up to 50 percent of both the amount identified in paragraph (2) of subdivision (a), and of the amount resulting from subtracting the value calculated under subparagraph (C) of paragraph (1) of subdivision (b) from the value calculated under clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b), for one or more of the obligations and purposes described in clause (ii) of subparagraph (B) of paragraph (1).
(3) The transfers described in this subdivision are subject to suspension or reduction pursuant to paragraph (1) of subdivision (a) of Section 22.
(d) By October 1 of the 2016–17 fiscal year and each fiscal year or fiscal period thereafter, based on the estimates set forth in the annual Budget Act pursuant to paragraphs (4) and (5) of subdivision (h), the Controller shall transfer amounts between the General Fund and the Budget Stabilization Account pursuant to a schedule provided by the Director of Finance, as follows:
(1) If the amount in subparagraph (G) of paragraph (2) of subdivision (b) is greater than zero, transfer that amount from the General Fund to the Budget Stabilization Account, subject to any suspension or reduction of this transfer pursuant to paragraph (1) of subdivision (a) of Section 22.
(2) If the amount described in subparagraph (F) of paragraph (2) of subdivision (b) is greater than the amount calculated under subparagraph (E) of paragraph (2) of subdivision (b), transfer that excess amount from the Budget Stabilization Account back to the General Fund.
(e) Notwithstanding any other provision of this section, the amount of a transfer to the Budget Stabilization Account pursuant to paragraph (2) of subdivision (a) and subdivisions (c) and (d) for any fiscal year or fiscal period shall not exceed an amount that would result in a balance in the account that, when the transfer is made, exceeds 10 percent of the amount of General Fund proceeds of taxes for the fiscal year or fiscal period estimated pursuant to subdivision (b). For any fiscal year, year or fiscal period, General Fund proceeds of taxes that, but for this paragraph, would have been transferred to the Budget Stabilization Account may be expended only for infrastructure, as defined by Section 13101 of the Government Code, as that section read on January 1, 2014, including deferred maintenance thereon.
(f) The funds described in subdivision (b) as General Fund proceeds of taxes are General Fund proceeds of taxes for purposes of Section 8 for the fiscal year or fiscal period to which those proceeds are attributed, but are not deemed to be additional General Fund proceeds of taxes on the basis that the funds are thereafter transferred from the Budget Stabilization Account to the General Fund.
(g) The Controller may utilize funds in the Budget Stabilization Account, that he or she determines to currently be unnecessary for the purposes of this section, to help manage General Fund daily cashflow needs. Any use pursuant to this subdivision shall not interfere with the purposes of the Budget Stabilization Account.
(h) The annual Budget Act shall include the estimates described in all of the following:
(1) Paragraph (2) of subdivision (a).
(2) Clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b).
(3) Subparagraph (F) of paragraph (1) of subdivision (b).
(4) Clause (ii) of subparagraph (B) of paragraph (2) of subdivision (b).
(5) Subparagraph (G) of paragraph (2) of subdivision (b).

Twenty-Fifth—

 That Section 21 of Article XVI thereof is amended to read:

SEC. 21.
 (a) The Public School System Stabilization Account is hereby created in the General Fund.
(b) On or before October 1 of each fiscal year, commencing with the 2015–16 fiscal year, year through 2018, and by October 1 of each odd-numbered year thereafter, based on the amounts identified in the annual Budget Act budget act pursuant to subdivision (b) of Section 20, the Controller shall transfer, pursuant to a schedule provided by the Director of Finance, amounts from the General Fund to the Public School System Stabilization Account as follows:
(1) (A) For the 2015–16 fiscal year, and for each fiscal year or fiscal period thereafter, any positive amount identified in subparagraph (C) of paragraph (1) of subdivision (b) of Section 20 shall be transferred from the General Fund to the Public School System Stabilization Account in the amount calculated under subparagraph (B), subject to any reduction or suspension of this transfer pursuant to any other provision of this section or paragraph (3) of subdivision (a) of Section 22.
(B) The Director of Finance shall calculate the amount by which the positive amount identified in subparagraph (C) of paragraph (1) of subdivision (b) of Section 20, in combination with all other moneys required to be applied by the State for the support of school districts and community college districts for that fiscal year or fiscal period pursuant to Section 8, exceeds the sum of 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 in the prior fiscal year, year or fiscal period, plus any allocations from the Public School System Stabilization Account in the prior fiscal year, year or fiscal period, less any transfers to the Public School System Stabilization Account pursuant to this section in the prior fiscal year or fiscal period and any revenues allocated pursuant to subdivision (a) of Section 8.5, adjusted for the percentage change in average daily attendance and adjusted for the higher of the change in the cost of living pursuant to paragraph (1) of subdivision (e) of Section 8 of Article XIII B or the cost of living adjustment applied to school district and community college district general purpose apportionments.
(2) (A) Commencing with the 2016–17 fiscal year, and for each fiscal year or fiscal period thereafter, to the extent the amount calculated under this paragraph exceeds the amounts previously transferred by the Controller from the General Fund to the Public School System Stabilization Account for a preceding fiscal year, year or fiscal period, any positive amount calculated pursuant to subparagraph (C) of paragraph (2) of subdivision (b) of Section 20 for that fiscal year or fiscal period shall be transferred from the General Fund to the Public School System Stabilization Account in the amount calculated under subparagraph (B), subject to any reduction or suspension of this transfer pursuant to any other provision of this section or paragraph (3) of subdivision (a) of Section 22.
(B) The Director of Finance shall calculate the amount by which the positive amount identified in subparagraph (C) of paragraph (2) of subdivision (b) of Section 20, in combination with all other moneys required to be applied by the State for the support of school districts and community college districts for that fiscal year or fiscal period pursuant to Section 8, exceeds the sum of 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 in the prior fiscal year, year or fiscal period, plus any allocations from the Public School System Stabilization Account in the prior fiscal year, year or fiscal period, less any transfers to the Public School System Stabilization Account pursuant to this section in the prior fiscal year or fiscal period and any revenues allocated pursuant to subdivision (a) of Section 8.5, adjusted for the percentage change in average daily attendance and adjusted for the higher of the change in the cost of living pursuant to the paragraph (1) of subdivision (e) of Section 8 of Article XIII B or the cost of living adjustment applied to school district and community college district general purpose apportionments.
(c) Commencing with the 2016–17 fiscal year, and for each fiscal year or fiscal period thereafter, if the amount calculated pursuant to subparagraph (C) of paragraph (2) of subdivision (b) of Section 20 for a fiscal year or fiscal period is less than the amounts previously transferred by the Controller from the General Fund to the Public School System Stabilization Account for that fiscal year, year or fiscal period, the amount of this difference shall be appropriated and allocated by the State from the Public School System Stabilization Account for the support of school districts and community college districts.
(d) Notwithstanding any other provision of this section, the amount transferred to the Public School System Stabilization Account pursuant to subdivision (b) for a fiscal year or fiscal period shall not exceed the amount by which the amount of state support calculated pursuant to paragraph (1) of subdivision (b) of Section 8 exceeds the amount of state support calculated pursuant to paragraph (2) of subdivision (b) of Section 8 for that fiscal year. year or fiscal period. If the amount of state support calculated pursuant to paragraph (1) of subdivision (b) of Section 8 does not exceed the amount of state support calculated pursuant to paragraph (2) of subdivision (b) of Section 8 for a fiscal year or fiscal period, no amount shall be transferred to the Public School System Stabilization Account pursuant to subdivision (b) for that fiscal year. year or fiscal period.
(e) Notwithstanding any other provision of this section, no amount shall be transferred to the Public School System Stabilization Account pursuant to subdivision (b) for a fiscal year or fiscal period for which a maintenance factor is determined pursuant to subdivision (d) of Section 8.
(f) Notwithstanding any other provision of this section, no amount shall be transferred to the Public School System Stabilization Account pursuant to subdivision (b) until the maintenance factor determined pursuant to subdivisions (d) and (e) of Section 8 for fiscal years prior to the 2014–15 fiscal year has been fully allocated. Transfers may be made beginning in the fiscal year or fiscal period following the fiscal year or fiscal period in which it is determined, based on the Budget Act for that fiscal year, year or fiscal period, that this condition will be met. If a transfer is made for a fiscal year or fiscal period for which it is later determined that this condition has not been met, the amount of the transfer shall be appropriated and allocated from the Public School System Stabilization Account for the support of school districts and community college districts. No transfer shall be made for a year for which it was determined, based on the Budget Act for that fiscal year, year or fiscal period, that this condition would not be met but was subsequently determined to have been met in that year or a prior fiscal year.
(g) Notwithstanding any other provision of this section, no amount shall be transferred to the Public School System Stabilization Account for any fiscal year or fiscal period for which any of the provisions of subdivision (b) of Section 8 are suspended pursuant to subdivision (h) of Section 8.
(h) Notwithstanding any other provision of this section, for any fiscal year or fiscal period, the amount of a transfer to the Public School System Stabilization Account pursuant to subdivision (b) shall not exceed an amount that would result in a balance in the account that is in excess of 10 percent of 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 for that fiscal year or fiscal period pursuant to Section 8. For any fiscal year, year or fiscal period, General Fund proceeds of taxes that, but for this subdivision, would have been transferred to the Public School System Stabilization Account shall be applied by the State for the support of school districts and community colleges.
(i) In any fiscal year or fiscal period in which the amount required to be applied by the State for the support of school districts and community college districts for that fiscal year or fiscal period pursuant to Section 8 is less than 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 in the prior fiscal year, year or fiscal period, plus any allocations from the Public School System Stabilization Account in the prior fiscal year or fiscal period, less any transfers to the Public School System Stabilization Account in the prior fiscal year or fiscal period and any revenues allocated pursuant to subdivision (a) of Section 8.5, adjusted for the percentage change in average daily attendance and adjusted for the higher of the change in the cost of living pursuant to paragraph (1) of subdivision (e) of Section 8 of Article XIII B or the cost of living adjustment applied to school district and community college district general purpose apportionments, the amount of the deficiency shall be appropriated and allocated by the State from the Public School System Stabilization Account for the support of school districts and community college districts.
(j) Funds transferred to the Public School System Stabilization Account shall be deemed, for purposes of Section 8, to be moneys applied by the State for the support of school districts and community college districts in the fiscal year or fiscal period for which the transfer is made, and not in the fiscal year or fiscal period in which moneys are appropriated from the account.
(k) Nothing in this section shall be construed to reduce the amount of the moneys required to be applied by the State for the support of school districts and community college districts pursuant to Sections 8 and 8.5.
(l) The Controller may utilize funds in the Public School System Stabilization Account, that he or she determines to currently be unnecessary for the purposes of this section, to help manage General Fund daily cashflow needs. Any use of funds by the Controller pursuant to this subdivision shall not interfere with the purposes of the Public School System Stabilization Account.

Twenty-Sixth—

 That Section 22 of Article XVI thereof is amended to read:

SEC. 22.
 (a) Upon the Governor’s proclamation declaring a budget emergency and identifying the conditions constituting the emergency, the Legislature may pass a bill that does any of the following:
(1) Suspends or reduces by a specified dollar amount for one fiscal year or fiscal period the transfer of moneys from the General Fund to the Budget Stabilization Account required by Section 20.
(2) (A) Returns funds that have been transferred to the Budget Stabilization Account pursuant to Section 20 to the General Fund for appropriation to address the budget emergency.
(B) Not more than 50 percent of the balance in the Budget Stabilization Account may be returned to the General Fund for appropriation pursuant to subparagraph (A) in any fiscal year, year or fiscal period, unless funds in the Budget Stabilization Account have been returned to the General Fund for appropriation in the immediately preceding fiscal year. year or fiscal period.
(3) Suspends or reduces by a specified dollar amount for one fiscal year or fiscal period the transfer of moneys from the General Fund to the Public School System Stabilization Account required by Section 21.
(4) Appropriates funds transferred to the Public School System Stabilization Account pursuant to Section 21 and allocates those funds for the support of school districts and community college districts.
(b) For purposes of this section, “budget emergency” means any of the following:
(1) An emergency declared by the Governor, within the meaning of paragraph (2) of subdivision (c) of Section 3 of Article XIII B.
(2) (A) A determination by the Governor that estimated resources are inadequate to fund General Fund expenditures for the current or ensuing fiscal year, year or fiscal period, after setting aside funds for the reserve for liquidation of encumbrances, at a level equal to the highest amount of total General Fund expenditures estimated at the time of enactment of any of the three most recent Budget Acts, adjusted for both of the following:
(i) The annual percentage change in the cost of living for the State, as measured by the California Consumer Price Index.
(ii) The annual percentage growth in the civilian population of the State pursuant to subdivision (b) of Section 7901 of the Government Code.
(B) The maximum amount that may be withdrawn for a budget emergency determined under this paragraph shall not exceed either an amount that would result in a total General Fund expenditure level for a fiscal year or fiscal period that is greater than the highest amount of total General Fund expenditures estimated at the time of enactment of any of the three most recent Budget Acts, as calculated pursuant to subparagraph (A), or any limit imposed by subparagraph (B) of paragraph (2) of subdivision (a).

Twenty-Seventh—

 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 to 2018–19 fiscal year years, inclusive, and for each two-year fiscal year period 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 to 2018–19 fiscal year years, inclusive, and for each two-year fiscal year period 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; 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); (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; (b).
(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 by 42 U.S.C. 12143, 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 under Sections Section 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-Eighth—

 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, 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.

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