Bill Text: CA SCAX11 | 2015-2016 | Regular Session | Introduced
Bill Title: Motor vehicle fees and taxes: restriction on expenditures.
Spectrum: Partisan Bill (Republican 33-1)
Status: (Failed) 2016-11-30 - From committee without further action. [SCAX11 Detail]
Download: California-2015-SCAX11-Introduced.html
BILL NUMBER: SCAX1 1 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Huff
(Coauthors: Senators Anderson, Bates, Berryhill, Cannella, Fuller,
Gaines, Moorlach, Morrell, Nguyen, Nielsen, Runner, Stone, and
Vidak)
(Coauthors: Assembly Members Achadjian, Travis Allen, Baker,
Bigelow, Brough, Chang, Chávez, Beth Gaines, Gallagher, Hadley,
Jones, Kim, Lackey, Linder, Mayes, Olsen, Steinorth, Wagner, Waldron,
and Wilk)
JUNE 19, 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 Sections 11 and 12 to, Article XIX
thereof, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
SCA 1, as introduced, 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
prohibit those revenues from being 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 other than in
motor vehicles upon public streets and highways, by requiring the use
of those revenues for street and highway purposes, but only with
respect to the portion of the affected revenues attributable to
increases in tax rates that are effective on or after July 1, 2010.
This restriction on expenditures would not apply if federal law
requires another use of any portion of those revenues. The measure
would also prohibit the Legislature from borrowing those revenues or
pledging those revenues for debt service.
(2) Article XI of the California Constitution requires the
revenues derived under the Vehicle License Fee 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 and
would prohibit the Legislature from borrowing those revenues. The
measure would also prohibit those revenues 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 First
Extraordinary Session commencing on the nineteenth day of June 2015,
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 revenue
from the Highway Users Tax Account, or its successor,
revenues subject to Section 2, 3, 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 allocated pursuant
subject to Section 4 2 may not be
expended for the purposes specified in subdivision (b) of Section 2,
except for research and planning, until such
that use is approved by a majority of the votes cast on the
proposition authorizing such that use
of such 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.
The Legislature may authorize the revenues approved for
allocation or expenditure under this section to be pledged or used
for the payment of principal and interest on voter-approved bonds
issued for the purposes specified in subdivision (b) of Section 2.
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 pursuant to
Section 4 for the purposes specified in subdivision (a) of Section 2
of this article may be pledged or used by the State
, upon approval by the voters and appropriation by the
Legislature, for the payment of principal and interest on
voter-approved bonds issued by the State on or after November 2,
2010, for such the purposes
issued by the State on and after November 2, 2010.
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 pursuant to
Section 4 for the purposes specified in subdivision (a) of Section 2
of this article may be pledged or used only
by any that city or county
for the payment of principal and interest on voter-approved bonds
issued by that city or county for such the
purposes specified in Section 2, upon approval by the
voters of this use of the revenues .
(c) Revenues subject to Section 2, 3, 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
fees or taxes imposed pursuant to the Sales and Use Tax
Law Law, or the Vehicle License Fee
Law, and all amendments and additions now or hereafter made to
such 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. (a) Revenues from taxes imposed by the State on motor
vehicle fuels for use other than in motor vehicles upon the public
streets and highways, over and above the costs of collection and any
refunds authorized by law, shall be used solely for the purposes
described in subdivision (a) of Section 2.
(b) Subdivision (a) applies only to the portion of the affected
revenues attributable to increases in tax rates that are effective on
or after July 1, 2010, and shall not apply if the applicable tax
rates are reduced to be equal to or less than the rates in effect on
June 30, 2010. In addition, subdivision (a) does not apply to any
portion of the affected revenues that are required to be used for
another purpose by federal law.
