Bill Text: CA SCA7 | 2015-2016 | Regular Session | Amended
Bill Title: Motor vehicle fees and taxes: restriction on expenditures.
Spectrum: Partisan Bill (Republican 27-0)
Status: (Failed) 2016-11-30 - From committee without further action. [SCA7 Detail]
Download: California-2015-SCA7-Amended.html
BILL NUMBER: SCA 7 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 28, 2015
INTRODUCED BY Senator Huff
(Coauthors: Senators Anderson, Bates, Berryhill, Cannella, Fuller,
Gaines, Moorlach, Morrell, Nguyen, Nielsen, Runner,
Stone, and Vidak)
( Coauthors: Assembly Members
Travis Allen, Baker, Brough,
Chang, Chávez, Gallagher, Hadley,
Jones, Kim, Lackey,
Olsen, Steinorth, and Waldron )
APRIL 9, 2015
A resolution to propose to the people of the State of California
an amendment to the Constitution of the State, by amending Sections
1, 5, 6, and 8 of, and adding Section
Sections 11 and 12 to, Article XIX thereof, relating
to transportation.
LEGISLATIVE COUNSEL'S DIGEST
SCA 7, as amended, Huff. Motor vehicle fees and taxes: restriction
on expenditures.
(1) Article XIX of the California Constitution restricts the
expenditure of revenues from taxes imposed by the state on fuels used
in motor vehicles upon public streets and highways to street and
highway and certain mass transit purposes, and restricts the
expenditure of revenues from fees and taxes imposed by the state upon
vehicles or their use or operation to state administration and
enforcement of laws regulating the use, operation, or registration of
vehicles used upon the public streets and highways, as well as to
street and highway and certain mass transit purposes. These
restrictions do not apply to revenues from taxes or fees imposed
under the Sales and Use Tax Law or the Vehicle License Fee Law.
Article XIX prohibits the Legislature from borrowing revenues from
taxes imposed by the state on fuels used in motor vehicles, and from
using those revenues other than as specifically permitted by Article
XIX. Article XIX provides that up to 25% of fuel tax revenues
allocated to the state may be pledged or used for the payment of
principal and interest on voter-approved transportation bonds issued
for street and highway purposes on and after November 2, 2010, upon
voter approval and appropriation by the Legislature. Article XIX
provides that up to 25% of fuel tax revenues allocated to cities and
counties may be pledged or used for the payment of principal and
interest on voter-approved transportation bonds issued for street and
highway purposes. However, in counties where voters have approved
the use of fuel tax revenues for certain mass transit purposes,
Article XIX provides that the Legislature may authorize any fuel tax
revenues allocated to mass transit purposes to be pledged or used for
payment of principal and interest on voter-approved bonds issued for
those mass transit purposes.
This measure would prohibit the Legislature from borrowing
revenues from fees and taxes imposed by the state on vehicles or
their use or operation, and from using those revenues other than as
specifically permitted by Article XIX. The measure would also provide
that none of those revenues may be pledged or used for the payment
of principal and interest on bonds or other indebtedness. The measure
would delete the provision that provides for use of any fuel tax
revenues allocated to mass transit purposes to be pledged or used for
payment of principal and interest on voter-approved bonds issued for
those mass transit purposes, and would instead subject those
expenditures to the existing 25% limitation applicable to the
use of fuel tax revenues for street and highway bond purposes.
This measure would also restrict the expenditure of revenues from
taxes imposed by the state on motor vehicle fuels used in propelling
water-borne vessels solely to purposes relating to boating
facilities, safety, and boating-related activities, as specified, and
would prohibit the Legislature from borrowing those revenues.
(2) Article XI of the California Constitution requires,
of requires the revenues derived under the
Vehicle License Fee Law, the revenues Law
from a rate that does not exceed 0.65% of the market value of a
vehicle to be allocated to cities and counties, and does not
restrict expenditure of those revenues for a particular purpose.
This measure would require revenues derived from that portion of
the vehicle license fee rate that exceeds 0.65% of the market value
of a vehicle to be used solely for street and highway
purposes. The measure purposes and
would prohibit the Legislature from borrowing those
revenues, and from using those revenues other than as specifically
permitted. This revenues. The measure would also
provide that none of prohibit those
revenues may be from being pledged or
used for the payment of principal and interest on bonds or other
indebtedness.
(3) This measure would make other conforming changes.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
WHEREAS, Transportation infrastructure is vital to a growing and
robust California economy; and
WHEREAS, In order to continue growing and remain a national
economic leader, California must prioritize transportation funding;
and
WHEREAS, California has 175,499 miles of public roads; and
WHEREAS, California roadways have $59 billion in accumulated
deferred maintenance, and 87 percent of county roads have an average
pavement rating of "at risk" or "poor"; and
WHEREAS, The average California driver pays $832 annually for the
increased cost of vehicle maintenance, tire wear, and increased gas
costs because California streets and roads are in such disrepair; and
WHEREAS, In 2002, the voters passed Proposition 42, with 69
percent of the vote, which purported to guarantee transportation
taxes and fees would only be used for transportation purposes; and
WHEREAS, During the fiscal crisis beginning in 2009, taxes and
fees being paid by California's drivers were diverted to the state
General Fund and not used to repair or maintain California streets
and roads; and
WHEREAS, The state fiscal crisis has abated but the diversion of
transportation taxes and fees continues; and
WHEREAS, Unmet needs caused by the diversion of certain
transportation taxes and fees have created an environment of
crumbling infrastructure and increased costs to repair the state's
street and highway system; and
WHEREAS, To keep the Proposition 42 promise to the voters that
transportation taxes and fees shall only be used for transportation
purposes and not diverted to the General Fund to pay the cost of
general obligation bonds, and to ensure that any future
transportation fees or taxes are used only for transportation
purposes, the voters should be given an opportunity to close the
Proposition 42 loophole; now, therefore, be it
Resolved by the Senate, the Assembly concurring, That the
Legislature of the State of California at its 2015-16 Regular Session
commencing on the first day of December 2014, 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 1 of Article XIX thereof is amended to read:
SECTION 1. The Legislature shall not borrow revenues subject
to Section 2, 3, or 11, or 12 and shall
not use these revenues for purposes, or in ways, other than those
specifically permitted by this article.
Second-- That Section 5 of Article XIX thereof is amended to read:
SEC. 5. Revenues subject to Section 2 may not be expended for
the purposes specified in subdivision (b) of Section 2, except for
research and planning, until that use is approved by a majority of
the votes cast on the proposition authorizing that use of those
revenues in an election held throughout the county or counties, or a
specified area of a county or counties, within which the revenues are
to be expended.
Third-- That Section 6 of Article XIX thereof is amended to read:
SEC. 6. (a) Up to 25 percent of the revenues subject to
Section 2 that are allocated to the State may be pledged or used by
the State for the payment of principal and interest on voter-approved
bonds issued by the State on or after November 2, 2010, for the
purposes specified in Section 2, upon approval by the voters of this
use of the revenues and appropriation of the revenues by the
Legislature.
(b) Up to 25 percent of the revenues subject to Section 2 that are
allocated to any city or county may be pledged or used by that city
or county for the payment of principal and interest on voter-approved
bonds issued by that city or county for the purposes specified in
Section 2, upon approval by the voters of this use of the revenues.
(c) Revenues subject to Section 2, 3, or 11
11, or 12 shall not be pledged or used for the payment of
principal and interest on bonds or other indebtedness, except as
specifically provided in this section.
Fourth-- That Section 8 of Article XIX thereof is amended to read:
SEC. 8. This article shall not affect or apply to taxes
imposed pursuant to the Sales and Use Tax Law, or the Vehicle License
Fee Law, and all amendments and additions now or hereafter made to
those statutes, except as provided in Section 11.
Fifth-- That Section 11 is added to Article XIX thereof, to read:
SEC. 11. From the revenues derived from taxes imposed pursuant
to the Vehicle License Fee Law, and all amendments and additions now
or hereafter made to that statute, other than fees on trailer
coaches and mobilehomes, over and above the costs of collection and
any refunds authorized by law, those revenues derived from that
portion of the vehicle license fee rate that exceeds 0.65 percent of
the market value of the vehicle shall be used solely for the purposes
specified in subdivision (a) of Section 2.
Sixth-- That Section 12 is added to Article XIX
thereof, to read:
SEC. 12. Revenues from taxes imposed by the
State on motor vehicle fuels for use in propelling water-borne
vessels, over and above the costs of collection and any refunds
authorized by law, shall be deposited into the Harbors and Watercraft
Revolving Fund (Section 85 of the Harbors and Navigation Code) or
its successor, and shall be used solely for the following purposes:
For boating facilities development, boating safety, boating
regulation programs, construction of small craft harbor and boating
facilities planned, designed, and constructed by the State at sites
owned or under the control of the State, and other boating-related
activities.
