Bill Text: CA SB767 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Los Angeles County Metropolitan Transportation

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Passed) 2015-10-07 - Chaptered by Secretary of State. Chapter 580, Statutes of 2015. [SB767 Detail]

Download: California-2015-SB767-Amended.html

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BILL NUMBER: SB 767	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JULY 16, 2015
	AMENDED IN ASSEMBLY  JULY 8, 2015
	AMENDED IN SENATE  JUNE 1, 2015

INTRODUCED BY   Senator De León
   (Principal coauthors: Senators Allen, Hall, Hernandez, Lara, Liu,
and Pavley)
   (Principal coauthors: Assembly Members Bloom, Chau, Holden,
Jones-Sawyer, and Nazarian)

                        FEBRUARY 27, 2015

   An act to  amend Section 130350.5 of, to  add Section
130350.7  to   to, and to repeal Section
130350.6 of,  the Public Utilities Code, relating to
transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 767, as amended, De León. Los Angeles County Metropolitan
Transportation Authority: transactions and use tax.
   Existing law authorizes the Los Angeles County Metropolitan
Transportation Authority (MTA) to impose, in addition to any other
tax that it is authorized to impose, a transactions and use tax at a
rate of 0.5% for the funding of specified transportation-related
projects and programs, subject to various requirements, including the
adoption of an expenditure plan and voter approval. Existing law
authorizes the MTA to seek voter approval to extend the transactions
and use tax pursuant to an amended ordinance, subject to various
requirements, including adoption of an amended expenditure plan that,
among other things, updates certain cost estimates and identifies
expected completion dates for projects and programs under the
previous expenditure plan, and also requires the amended expenditure
plan to be included in an updated long range transportation plan, as
specified.
   This bill would  delete the above-referenced provisions
relative to extension of the transactions and use tax and an amended
ordinance and expenditure plan, The bill would instead 
authorize the MTA to impose an additional transportation transactions
and use tax at a  specified rate of up to 0.5% or 1.0%
  maximum rate of 0.5% as long as a   specified
existing 0.5% transactions and use tax is in effect, and at a
maximum rate of 1% thereafter, as specified, for a period of time
determined by the MTA,  if certain conditions exist and subject
to various requirements, including the adoption of an expenditure
plan and voter approval, as specified.
   The Transactions and Use Tax Law limits to 2% the combined rate of
all transactions and use taxes imposed in any county, with certain
exceptions.
   This bill would exempt the transactions and use tax authorized by
the bill from this limitation.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 130350.5 of the  
Public Utilities Code   is amended to read: 
   130350.5.  (a) In addition to any other tax that it is authorized
by law to impose, the Los Angeles County Metropolitan Transportation
Authority (MTA) may impose, in compliance with subdivision (b)
 and Section 130350.6  , a transactions and use tax
at a rate of 0.5 percent that is applicable in the incorporated and
unincorporated areas of the county.
   (b) For purposes of the taxing authority set forth in subdivision
(a), all of the following apply:
   (1) The tax shall be proposed in a transactions and use tax
ordinance, that conforms with Chapter 2 (commencing with Section
7261) to Chapter 4 (commencing with Section 7275), inclusive, of the
Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)
of Division 2 of the Revenue and Taxation Code), and that is
approved by a majority of the entire membership of the authority.
   (2) The tax may be imposed only if the proposing ordinance is
approved by two-thirds of the voters, in the manner as otherwise
required by law, voting on this measure, in an election held on
November 4, 2008, or at a subsequent election and, if so approved,
shall become operative as provided in Section 130352.
   (3) The proposing ordinance shall specify, in addition to the rate
of tax and other matters as required by the Transactions and Use Tax
Law, that the net revenues derived from the tax are to be
administered by the MTA as provided in this section. Net revenues
shall be defined as all revenues derived from the tax less any
refunds, costs of administration by the State Board of Equalization,
and costs of administration by the MTA. Such costs of administration
by the MTA shall not exceed 1.5 percent of the revenues derived from
the tax. The MTA shall, during the period in which the ordinance is
operative, allocate 20 percent of all net revenues derived from the
tax for bus operations to all eligible and included municipal transit
operators in the County of Los Angeles and to the MTA, in accordance
with Section 99285. However, the allocations to the MTA and eligible
and included municipal operators shall be made solely from revenues
derived from a tax imposed pursuant to this section, and not from
local discretionary sources. Funds allocated by MTA to itself
pursuant to this section shall be used for transit operations and
shall not supplant funds from any other source allocated by MTA to
itself for public transit operations. Funds allocated by MTA to the
eligible and included municipal operators pursuant to this section
shall be used for transit operations and shall not supplant any funds
authorized by other provisions of law and allocated by MTA to the
eligible and included municipal operators for public transit. In
addition to this amount, the MTA shall allocate 5 percent of all net
revenues derived from the tax, for rail operations. The MTA shall
include the projects and programs described in subparagraphs (A) and
(B) in the expenditure plan required under subdivision (f). The MTA
shall include all projects and programs described in the expenditure
plan required under subdivision (f) in its Long Range Transportation
Plan (LRTP). The priorities for projects and programs described in
subparagraphs (A) and (B) and in the expenditure plan required under
subdivision (f) shall be those set forth in the expenditure plan. The
funding amounts specified in subparagraphs (A) and (B) are minimum
amounts that shall be allocated by the MTA from the net revenues
derived from a tax imposed pursuant to this section. Nothing in this
section prohibits the MTA from allocating additional net revenues
derived from the tax to these projects and programs.
   (A) Capital Projects.
   (i) Exposition Boulevard Light Rail Transit Project from downtown
Los Angeles to Santa Monica. The sum of nine hundred twenty-five
million dollars ($925,000,000).
   (ii) Crenshaw Transit Corridor from Wilshire Boulevard to Los
Angeles International Airport along Crenshaw Boulevard. The sum of
two hundred thirty-five million five hundred thousand dollars
($235,500,000).
   (iii) San Fernando Valley North-South Rapidways. The sum of one
hundred million five hundred thousand dollars ($100,500,000).
   (iv) Metro Gold Line (Pasadena to Claremont) Light Rail Transit
Extension. The sum of seven hundred thirty-five million dollars
($735,000,000).
   (v) Metro Regional Connector. The sum of one hundred sixty million
dollars ($160,000,000).
   (vi) Metro Westside Subway Extension. The sum of nine hundred
million dollars ($900,000,000).
   (vii) State Highway Route 5 Carmenita Road Interchange
Improvement. The sum of one hundred thirty-eight million dollars
($138,000,000).
   (viii) State Highway Route 5 Capacity Enhancement (State Highway
Route 134 to State Highway Route 170, including access improvement
for Empire Avenue). The sum of two hundred seventy-one million five
hundred thousand dollars ($271,500,000).
   (ix) State Highway Route 5 Capacity Enhancement (State Highway
Route 605 to the Orange County line, including improvements to the
Valley View Interchange). The sum of two hundred sixty-four million
eight hundred thousand dollars ($264,800,000).
   (x) State Highway Route 5/State Highway Route 14 Capacity
Enhancement. The sum of ninety million eight hundred thousand dollars
($90,800,000).
   (xi) Capital Project Contingency Fund. The sum of one hundred
seventy-three million dollars ($173,000,000).
   (B) Capital Programs.
   (i) Alameda Corridor East Grade Separations. The sum of two
hundred million dollars ($200,000,000).
   (ii) MTA and Municipal Regional Clean Fuel Bus Capital (Facilities
and Rolling Stock). The sum of one hundred fifty million dollars
($150,000,000).
   (iii) Countywide Soundwall Construction (MTA Regional List and
Monterey Park/State Highway Route 60). The sum of two hundred fifty
million dollars ($250,000,000).
   (iv) Local return for major street resurfacing, rehabilitation,
and reconstruction. The sum of two hundred fifty million dollars
($250,000,000).
   (v) Metrolink Capital Improvements. The sum of seventy million
dollars ($70,000,000).
   (vi) Eastside Light Rail Access. The sum of thirty million dollars
($30,000,000).
   (c) The MTA may incur bonded indebtedness payable from the
proceeds of the tax provided by this section pursuant to the bond
issuance provisions of  Section 130500 et seq. of the Public
Utilities Code,   Chapter 5 (commencing with Section
130500)  and any successor act. The MTA shall include in the
expenditure plan, required under subdivision (f), the amount of net
revenue specified for all projects and programs in subparagraphs (A)
and (B) of paragraph (3) of subdivision (b) as a condition of the use
and expenditure of the proceeds of the tax. The MTA shall maintain
the current amount of any funding for the projects and programs
specified in this section that has been previously programmed or
received from sources other than the proceeds of the tax, and may not
reallocate money that has been previously programmed or received for
those projects and programs to other projects or uses.
   (d) Notwithstanding Section 7251.1 of the Revenue and Taxation
Code, the tax rate authorized by this section shall not be considered
for purposes of the combined rate limit established by that section.

   (e) A jurisdiction or recipient is eligible to receive funds from
the local return program, described in clause (iv) of subparagraph
(B) of paragraph (3) of subdivision  (b) of this section and
in subdivision (c) of Section 130350.6,   (b), 
only if it continues to contribute to that program an amount that is
equal to its existing commitment of local funds or other available
funds. The MTA may develop guidelines that, at a minimum, specify
maintenance of effort requirements for the local return program,
matching funds, and administrative requirements for the recipients of
revenue derived from the tax.
   (f) Prior to submitting the ordinance to the voters, the MTA shall
adopt an expenditure plan for the net revenues derived from the tax.
The expenditure plan shall include, in addition to other projects
and programs identified by the MTA, the specified projects and
programs listed in paragraph (3) of subdivision (b), the estimated
total cost for each project and program, funds other than the tax
revenues that the MTA anticipates will be expended on the projects
and programs, and the schedule during which the MTA anticipates funds
will be available for each project and program. The MTA shall also
identify in its expenditure plan the expected completion dates for
each project described in subparagraph (A) of paragraph (3) of
subdivision (b). To be eligible to receive revenues derived from the
tax, an agency sponsoring a capital project or capital program shall
submit to the MTA an expenditure plan for its project or program
containing the same elements as the expenditure plan that MTA is
required by this subdivision to prepare.
   (g) The MTA shall establish and administer a sales tax revenue
fund. The net revenue derived from the tax, after payment of any debt
services and related obligations, shall be credited to this fund.
The moneys in the fund shall be available to the MTA to meet
expenditure and cashflow needs of the projects and programs described
in the expenditure plan required under subdivision (f). In the event
that there are net revenues in excess of the amount necessary to
provide the amount of net revenues specified in the expenditure plan
for the projects and programs described therein, the MTA may expend
the excess net revenues on projects and programs in the expenditure
plan or the LRTP. In the event that projects and programs in the
expenditure plan are completed without the expenditure of the amount
of net revenues specified, the MTA shall expend the excess net
revenues on projects and programs in the expenditure plan or the LRTP
within the same subregion as the project or program that is
completed. For the purposes of this section, "subregion" shall be
defined in the LRTP.
   (h) If other funds become available and are allocated to provide
all or a portion of the amount of net revenues specified in the
expenditure plan for the projects or programs described therein, the
MTA may expend the surplus net revenues on other projects and
programs in the expenditure plan or the LRTP.
   (i) (1) Notwithstanding subdivision (h), if a capital project or
capital program described in clauses (i) to (x), inclusive, of
subparagraph (A) of paragraph (3) of subdivision (b) and clauses (i)
and (vi) of subparagraph (B) of paragraph (3) of subdivision (b), has
been fully funded from other sources on or before December 31, 2008,
the funds designated to the project or program in clauses (i) to
(x), inclusive, of subparagraph (A) of paragraph (3) of subdivision
(b) and clauses (i) and (vi) of subparagraph (B) of paragraph (3) of
subdivision (b) shall remain in the subregion in which the project or
program is located and shall be allocated to other projects or
programs in the subregion prior to the expiration of the tax.
   (2) A capital project or capital program funded with reallocated
funds pursuant to paragraph (1) shall be included in the adopted 2008
Long Range Transportation Plan or the successor plan and shall be of
regional significance as determined by the MTA. For purposes of this
subdivision, "subregions" means the subregions as defined in the
LRTP in effect as of January 1, 2008.
   (j) Notwithstanding Section 130354, revenues raised under this
section  and Section 130350.6  may be used to
facilitate the transportation of people and goods within Los Angeles
County. The use of the revenues shall not be limited to public
transit purposes.
   (k) No later than 365 days prior to the adoption of an amendment
described in paragraph (1) to an expenditure plan adopted pursuant to
subdivision (f), including, but not limited to, the expenditure plan
adopted by the MTA board as "Attachment A" in Ordinance #08-01
adopted by the board on July 24, 2008, and in addition to any other
notice requirements in the proposing ordinance, the board shall
notify the Members of the Legislature representing the County of Los
Angeles of all of the following:
   (1) A description of the proposed amendments to the adopted
expenditure plan that would do any of the following:
   (A) Affect the amount of net revenues derived from the tax imposed
pursuant to this act that is proposed to be expended on a capital
project or projects identified in the adopted expenditure plan.
   (B) Delay the schedule for the availability of funds proposed to
be expended on a capital project or projects identified in the
adopted expenditure plan.
   (C) Delay the schedule for the estimated or expected completion
date of a capital project or projects identified in the adopted
expenditure plan.
   (2) The reason for the proposed amendment.
   (3) The estimated impact the proposed amendment will have on the
schedule, cost, scope, or timely availability of funding for the
capital project or projects contained in the adopted expenditure
plan.
   (l) The notification required pursuant to subdivision (k) shall be
achieved by resolution adopted by the MTA board.
   (m) The MTA board shall provide prior written notice to the
Members of the Legislature representing the County of Los Angeles of
any proposed amendments to the adopted expenditure plan that would
accelerate funding for a capital project or projects in the adopted
expenditure plan.
   SEC. 2.    Section 130350.6 of the   Public
Utilities Code   is repealed.  
   130350.6.  (a) The tax authorized by Section 130350.5 may be
imposed as set forth in paragraph (3) of subdivision (b) of Section
130350.5 in a transactions and use tax ordinance, or an amendment of
the ordinance approved pursuant to paragraph (1) of subdivision (b)
of Section 130350.5, that conforms with Chapter 2 (commencing with
Section 7261) to Chapter 4 (commencing with Section 7275), inclusive,
of the Transactions and Use Tax Law (Part 1.6 (commencing with
Section 7251) of Division 2 of the Revenue and Taxation Code), and
that is approved by a majority of the entire membership of the
authority. The tax may be imposed pursuant to this section only if
the proposing ordinance, or amendment thereof, is approved by
two-thirds of the voters, in the manner as otherwise required by law,
voting on this measure, in a special or general election and, if so
approved, shall become operative as provided in Section 130352. The
proposing ordinance shall specify that the net revenues derived from
the tax are to be administered by the Los Angeles County Metropolitan
Transportation Authority (MTA) as provided in this section. Net
revenues shall be defined as all revenues derived from the tax less
any refunds, costs of administration by the State Board of
Equalization, and costs of administration by the MTA. Such costs of
administration by the MTA shall not exceed 1.5 percent of the
revenues derived from the tax. The proposing ordinance shall be
accompanied by a new expenditure plan for the net revenues derived
from the tax. This new expenditure plan shall identify the years in
which the MTA anticipates net revenues derived from the tax will be
available to each project or program in the new expenditure plan.
   (b) The MTA may incur bonded indebtedness payable from the
proceeds of the tax authorized by this section pursuant to the bond
issuance provisions of this chapter, and any successor act.
   (c) Proceeds from the tax authorized by this section, including
proceeds from bonds issued pursuant to subdivision (b), after payment
of the bonded indebtedness, shall be used to accelerate the
completion of the projects and programs identified in subparagraphs
(A) and (B) of paragraph (3) of subdivision (b) of Section 130350.5,
for the expenditure plan adopted by the MTA board on July 24, 2008,
and for operations pursuant to paragraph (3) of subdivision (b) of
Section 130350.5.
   (d) Upon completion of the projects and programs identified in
subparagraphs (A) and (B) of paragraph (3) of subdivision (b) of
Section 130350.5 and the expenditure plan adopted by the MTA board on
July 24, 2008, any funds remaining from the bonds described in
subdivision (b) and any funds remaining from the proceeds of the tax
authorized by this section, after payment of the bonded indebtedness,
shall be expended by the MTA on projects and programs in the Long
Range Transportation Plan or its successor plans, and for operations
pursuant to paragraph (3) of subdivision (b) of Section 130350.5.
   (e) To the extent that the MTA deems it necessary to accelerate
the completion of a project or program in a new expenditure plan
adopted pursuant to this section, the MTA shall expend funds derived
from the sales tax authorized by Section 130350.5 according to the
schedule described in the new expenditure plan adopted pursuant to
this section. The MTA shall make this determination by a majority
vote of the MTA board.
   (f) (1) Before submitting the ordinance described in subdivision
(a) to the voters, the MTA shall amend the expenditure plan adopted
pursuant to subdivision (f) of Section 130350.5. The amended
expenditure plan shall update all of the following for the projects
and programs listed in subparagraphs (A) and (B) of paragraph (3) of
subdivision (b) of Section 130350.5:
   (A) The most recent cost estimates for each project and program
identified in the amended expenditure plan.
   (B) The identification of the accelerated cost, if applicable, for
each project and program in the amended expenditure plan.
   (C) The schedule during which the MTA anticipates funds will be
available for each project and program.
   (D) The expected completion dates for each project and program.
   (2) The MTA shall develop a transparent process to determine the
most recent cost estimates for each project and program identified in
the amended expenditure plan.
   (3) The amended expenditure plan shall also be included in the
revised and updated Long Range Transportation Plan before the
ordinance described in subdivision (a) is submitted to the voters.
The revised and updated Long Range Transportation Plan shall also
include capital projects and capital programs that are adopted by
each subregion that are submitted to the MTA for inclusion in the
revised and updated Long Range Transportation Plan. Inclusion of a
capital project or a capital program in the Long Range Transportation
Plan is not a commitment or guarantee that the project or program
shall receive any future funding. As used in this paragraph,
"subregion" shall have the meaning as defined in the Long Range
Transportation Plan in effect as of January 1, 2008.
   (4) At least 30 days before submitting the ordinance described in
subdivision (a) to the voters, the MTA shall post the amended
expenditure plan and the Long Range Transportation Plan on the MTA's
Internet Web site in a prominent manner. 
   SECTION 1.   SEC. 3.   Section 130350.7
is added to the Public Utilities Code, to read:
   130350.7.  (a) The Los Angeles County Metropolitan Transportation
Authority (MTA), in addition to any other tax it is authorized to
impose or has imposed, may impose a transactions and use tax, for a
period to be determined by the MTA, that is applicable in the
incorporated and unincorporated areas of Los Angeles County. The 
rate of  tax authorized by this  section shall not
exceed either of the following:   section, when combined
with the rate of tax authorized by voter approval of Measure R
pursuant to Section   130350.5 during any period when that
tax is in effect, and upon the expiration of that tax, shall not
exceed 1 percent.  
   (1) The rate of 0.5 percent if a tax authorized by Section
130350.5 or 130350.6 is in effect.  
   (2) The rate of 1.0 percent if a tax authorized by Section
130350.5 or 130350.6 is not in effect. 
   (b) The ordinance imposing the tax shall contain all of the
following:
   (1) An expenditure plan that lists the transportation projects and
programs to be funded from net revenues from the tax. The
expenditure plan shall appear in the ordinance as an exhibit. The
expenditure plan shall include all of the following:
   (A) The most recent cost estimates for each project and program
identified in the expenditure plan.
   (B) The identification of the accelerated cost, if applicable, for
each project and program in the expenditure plan.
   (C) The approximate schedule during which the MTA anticipates
funds will be available for each project and program.
   (D) The expected completion dates for each project and program
within a three-year range.
   (2) Provisions conforming to the Transactions and Use Tax Law
(Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue
and Taxation Code), except as otherwise provided in subdivision (f).

   (3) A provision limiting the MTA's costs of administering the
ordinance and the net revenues from the tax to 1.5 percent of the
total tax revenues.
   (4) A requirement that the net revenues from the tax, defined to
mean the total tax revenues less any refunds, costs of administration
by the State Board of Equalization, and the MTA's administration
costs, shall be used by the MTA to fund transportation projects and
programs identified in the expenditure plan.
   (5) The rate of the  tax, which shall not exceed the
applicable maximum rate described in subdivision (a).  
tax. 
   (c) The MTA shall do all of the following:
   (1) Develop a transparent process to determine the most recent
costs estimates for each project and program identified in the
expenditure plan.
   (2) At least 30 days before submitting the ordinance described in
subdivision (b) to the voters, post the expenditure plan on its
Internet Web site in a prominent manner.
   (d) The ordinance shall be adopted by the MTA board, which shall
also adopt a resolution that submits the ordinance to the voters.
   (e) The ordinance shall become operative pursuant to Section
130352 if approved by two-thirds of the voters voting on the measure,
pursuant to subdivision (d) of Section 2 of Article XIII C of the
California Constitution.
   (f) (1) If the voters approve the ordinance authorized by this
section, the expenditure plan included as an exhibit to the ordinance
pursuant to paragraph (1) of subdivision (b) shall also be included
in the revised and updated Long Range Transportation Plan within one
year of the date the ordinance takes effect. The revised and updated
Long Range Transportation Plan shall also include capital projects
and capital programs that are adopted by each subregion that are
submitted to the MTA for inclusion in the revised and updated Long
Range Transportation Plan, if the cost and schedule details are
provided by the subregions, in a manner consistent with the
requirements of the plan. Inclusion of a capital project or a capital
program in the Long Range Transportation Plan is not a commitment or
guarantee that the project or program shall receive any future
funding.
   (2) For purposes of this subdivision, "subregion" shall have the
same meaning as  that term is  defined in the Long
Range Transportation  Plan process in effect as of January 1,
2008.   Plan. 
   (g) The MTA may incur bonded indebtedness payable from the net
revenues of the tax pursuant to the bond issuance provisions of
 this chapter   Chapter 5 (commencing with
Section 130500)  and any successor act.
   (h) The tax authorized by this section shall be imposed pursuant
to the Transactions and Use Tax Law (Part 1.6 (commencing with
Section 7251) of Division 2 of the Revenue and Taxation Code),
notwithstanding the combined rate limitation in Section 7251.1 of the
Revenue and Taxation Code.