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HomeMy WebLinkAboutItem 8.5 Taxpyr Public Saf Trans Act of 2010G~~~ OF Dp~~~ /// ~ `O`~LIFOR~ / STAFF REPORT CITY CLERK DUBLIN CITY COUNCIL File # ^®® (^-©© DATE: January 19, 2010 TO: Honorable Mayor and City Councilmembers FROM: Joni Pattillo, City Manager SUBJE Local Taxpayer, Public Safety and Transportation Act of 2010 Prepared By: Martha Aja, Environmental Specialist ~.~~~ EXECUTIVE SUMMARY: A coalition of local government, transportation and transit advocates recently filed a constitutional amendment with the California Attorney General, called the Local Taxpayer, Public Safety, and Transportation Act of 2010, for potential placement on California's November statewide ballot. Approval of this ballot initiative would close loopholes and change the constitution to further prevent State politicians from seizing, diverting, shifting, borrowing, transferring, suspending or otherwise taking or interfering with tax revenues dedicated to funding local government services, including redevelopment, or dedicated to transportation improvements projects and mass transit. The City Council will consider supporting this measure. FINANCIAL IMPACT: The passage of the Local Taxpayer, Public Safety and Transportation Protection Act of 2010 would result in a halt to the State Legislature's ability to seize and borrow local government and transportation funds. The State has already delayed distribution of Highway User Tax (Gas Tax) and Proposition 42 street maintenance funds which impacts the City's ability to plan its expenditures. In Fiscal Year 2009-2010 the City expects to receive approximately $770,000 in Gas Tax revenue. Last year the legislature threatened this revenue with an outright diversion of these funds for State purposes. In Fiscal Year 2009-2010 the State has borrowed $2,237,598 of the City of Dublin's Property Tax, which under current law it can do. RECOMMENDATION: Staff recommends that the City Council adopt a Resolution in support of the Local Taxpayer, Public Safety and Transportation Protection Act of 2010. Reviewed By: Administrative Services Director Reviewed Assistant City Manager Page 1 of 2 ITEM NO. ~~ ~ _ ~~/ DESCRIPTION: The California State Legislature has borrowed billions of dollars from local government and transportation funds in the past few years. The borrowing of these funds have occurred despite the fact that voters have repeatedly passed measures to prevent the State from taking these revenues dedicated to funding local government services and transportation improvement projects. This year's borrowing of local government, redevelopment and transit funds have led to severe consequences to local agencies statewide. The impacts in some jurisdictions have included: layoffs including police, fire and paramedic first responders; fire station closures; stalled economic development; healthcare cutbacks; delays in road safety improvements; public transit fare increases; and cutbacks in public transit services. The impacts on public transit have also occurred locally with the service provided by the Livermore Amador Valley Transit Authority. The current law provides no penalties when the legislature enacts changes which take or borrow these locally dedicated funds. The current environment also provides local government with uncertainty in order to properly plan expenditures for local improvements and services. With the State consistently taking and shifting funds that have historically been dedicated to city services is disruptive and an irresponsible approach to public finance. A coalition of focal government, transportation and transit advocates led by the League of California Cities recently filed a constitutional amendment with the California Attorney General, called the Local Taxpayer, Public Safety, and Transportation Act of 2010, for potential placement on California's November statewide ballot. A summary of the Local Taxpayer, Public Safety, and Transportation Act is included as Attachment 2. The full version text of the initiative is included as Attachment 3. Approval of this ballot initiative would close loopholes and change the constitution to further prevent State politicians from seizing, diverting, shifting, borrowing, transferring, suspending or otherwise taking or interfering with tax revenues dedicated to funding local government services, including redevelopment, or dedicated to transportation improvements projects and mass transit. The measure will not increase funding for local government; it will merely prevent the State from borrowing or shifting existing local revenue. The measure will revoke the State's current authority to borrow local government property tax funds. The State"borrowed" $2,237,598 from the City property tax in Fiscal Year 2009-2010, under Proposition 1 a previously approved by the voters. The manner in which the borrowing has occurred without an overall recovery plan is of a great concern. Approval of this legislation would prevent seizure of such funds in the future. NOTICING REQUIREMENTS/PUBLIC OUTREACH: Not Applicable. ATTACHMENTS: 1. Resolution in support of the Local Taxpayer, Public Safety and Transportation Act of 2010. 2. Attorney General Title & Summary. 3. Full version text of the Local Taxpayer, Public Safety and Transportation Act of 2010. Page 2 of 2 -~~'~ RESOLUTION NO. XX -10 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN *********** IN SUPPORT OF THE LOCAL TAXPAYER, PUBLIC SAFETY AND TRANSPORTATION PROTECTION ACT OF 2010 WHEREAS, California voters have repeatedly and overwhelmingly passed separate ballot measures to stop State raids of local government funds, and to dedicate the taxes on gasoline to fund local and state transportation improvement projects; and WHEREAS, these local government funds are critical to provide the police and fire, emergency response, parks, libraries, and other vital local services that residents rely upon every day, and gas tax funds are vital to maintain and improve local streets and roads, to make road safety improvements, relieve traffic congestion, and provide mass transit; and WHEREAS, despite the fact that voters have repeatedly passed measures to prevent the State from taking these revenues dedicated to funding local government services and transportation improvement projects, the State Legislature has seized and borrowed billions of dollars in local government and transportation funds in the past few years; and WHEREAS, this year's borrowing and raids of local government, redevelopment and transit funds, as well as previous, ongoing raids of focal government and transportation funds have lead to severe consequences, such as layoffs of police, fire and paramedic first responders, fire station closures, stalled economic development, healthcare cutbacks, delays in road safety improvements, public transit fare increases and cutbacks in public transit services; and WHEREAS, State politicians in Sacramento have continued to ignore the will of, the voters, and current law provides no penalties when state politicians take or borrow these locally- dedicated funds; and WHEREAS, a coalition of local government, transportation and transit advocates recently filed a constitutional amendment with the California Attorney General, called the Local Taxpayer, Public Safety, and Transportation Protection Act of 2010, for potential placement on California's November 2010 statewide ballot; and WHEREAS, approval of this ballot initiative would close loopholes and change the constitution to further prevent State politicians in Sacramento from seizing, diverting, shifting, borrowing, transferring, suspending or otherwise taking or interfering with tax revenues dedicated to funding local government services, including redevelopment, or dedicated to transportation improvement projects and mass transit. THEREFORE, BE IT RESOLVED that the City of Dublin formally endorses the Locat Taxpayer, Public Safety and Transportation Protection Act of 2010, a proposed constitutional amendment. g,~ f~ ~~~ ATTACHMENT 1 ~°~1~ BE IT FURTHER RESOLVED that we hereby authorize the listing of the City of Dublin in support of the Local Taxpayer, Public Safety and Transportation Protection Act of 2010 and instruct Staff to fax a copy of this resolution to campaign offices at 916.442.3510. PASSED, APPROVED AND ADOPTED this 19th day of January, 2010, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk Mayor ATTACHMENT 1 ~ ~a~ EXCERPT CALIFORNIA SECRETARY OF STATE WEBSITE -January 5, 2010 http://www.sos.ca.gov/elections/ballot-measures/cleared-for-circulation.htm initiatives and Referenda Cleared for Circulation The Attorney General prepares a title and summary of the chief purpose and points of an initiative. Initiatives are cleared for circulation on the day the title and summary is sent to the initiative proponent(s). No petition may be circulated for signatures before it has been cleared to do so by the Attorney General... 1415. (09-0064) Prohibits the State from Taking Funds Used for Transportation or Local Government Projects and Services. Initiative Constitutional Amendment. Summary Date: 12/16/09 ~ Circulation Deadline: 05/17/10 ~ Signatures Required: 694,354 Proponents: Joshua Shaw, Christopher K. McKenzie, and James N. Earp Prohibits the State from shifting, taking, borrowing, or restricting the use of tax revenues dedicated by law to fund local government services, community redevelopment projects, or transportation projects and services. Prohibits the State from delaying the distribution of tax revenues for these purposes even when the Governor deems it necessary due to a severe state fiscal hardship. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Significant constraints on state authority over city, county, special district, and redevelopment agency funds. As a result, higher and more stable local resources, potentially affecting billions of dollars in some years. Commensurate reductions in state resources, resulting in major decreases in state spending and/or increases in state revenues. (09-0064.) Attachment 2 ~ ~ a- Section One. Title. This act shall be known and may be cited as the "local Taxpayer, Public Safety, and Transportation Protection Act of 2010." Section Two. Findings and Declarations. The people of the State of California find and declare that: {a) In order to maintain local control over local taxpayer funds and protect vital services like local fire protection and 9-1-1 emergency response, law enforcement, emergency room care, public transit, and transportation improvements, Califomia voters have repeatedly and overwhelmingly voted to restrict state politicians in Sacramento from taking revenues dedicated to funding local government services and dedicated to funding transportation improvement projects and services. (b) By taking these actions, voters have acknowledged the critical importance of preventing State raids of revenues dedicated to funding vital local government services and transportation improvement projects and services. (c) Despite the fact that voters have repeatedly passed measures to prevent the State from taking these revenues dedicated to funding local government services and transportation improvement projects and services, state politicians in Sacramento have seized and borrowed billions of dollars in local government and transportation funds. (d) In recent years, state politicians in Sacramento have specifically: {1} Borrowed billions of dollars in local property tax revenues that would otherwise be used to fund local police, fire and paramedic response and othervital local services; (2} Sought to take and borrow billions of dollars in gas tax revenues that voters have dedicated to on-going transportation projects and tried to use them for non-transportation purposes; (3) Taken local community redevelopment funds on numerous occasions and used them for unrelated purposes; (4) Taken billions of dollars from local public transit like bus, shuttle, light-rail and regional commuter rail, and used these funds for unrelated state purposes. (e) The continued raiding and borrowing of revenues dedicated to funding local govemment services and dedicated to funding transportation improvement projects can cause ATTACHMENT 3 5 ~~ severe consequences, such as layoffs of police, fire and paramedic first responders, fire station closures, healthcare cutbacks, delays in road safety improvements, public transit fare increases and cutbacks in public transit services. (f) State politicians in Sacramento have continued to ignore the will of the voters, and current law provides no penalties when state politicians take or borrow these dedicated funds. (g) It is hereby resolved, that with approval of this ballot initiative, state politicians in Sacramento shall be prohibited from seizing, diverting, shifting, borrowing, transferring, suspending or otherwise taking or interfering with tax revenues dedicated to funding local government services or dedicated to transportation improvement projects and services. Section Two. Statement of Purpose. The purpose of this measure is to conclusively and completely prohibit state politicians in Sacramento from seizing, diverting, shifting, borrowing, transferring, suspending or otherwise taking or interfering with revenues that are dedicated to funding services provided by local government or funds dedicated to transportation improvement projects and services. Section Three. Section 24 of Article XIII of the California Constitution is hereby amended to read as follows: The Legislature may not impose taxes for local purposes but may authorize local governments to impose them. Lb_} The Leeislature may not reallocate, transfer, borrow, appropriate restrict the use of, or otherwise use the proceeds of anv tax imposed or levied by a local government solely for the local eovernment's purposes. j~ Money appropriated from state funds to a local government for its Iota! purposes maybe used as provided by law. Ld1 Money subvened to a local government under Section 25 maybe used for state or local purposes. Section Four. Section 25.5 of Article XIII of the California Constitution is hereby amended to read as follows: SEC. 25.5. (a) Qn or after November 3, 2Q04, the Legislature shall not enact a statute to do any of the following: 6g~ai (1} {A) Except as otherwise provided in subparagraph (B), modify the manner in which ad valorem property tax revenues are allocated in accordance with subdivision (a) of Section 1 of Article XIII A so as to reduce for any fiscal year the percentage of the total amount of ad valorem property tax revenues in a county that is allocated among all of the local agencies in that county below the percentage of the total amount ofthose revenues that would be allocated among those agencies for the same fiscal year under the statutes in effect on November 3, 2004. For purposes of this subparagraph, "percentage" does not include any property tax revenues referenced in paragraph (2). (B} In the 2009-10 fiscal year only. and except as otherwise provided in subparagraph (C), subparagraph (A) may be suspended for a that fiscal year if all of the following conditions are met: (i) The Governor issues a proclamation that declares that, due to a severe state fiscal hardship, the suspension of subparagraph {A} is necessary. (ii) The Legislature enacts an urgency statute, pursuant to a bill passed in each house of the Legislature by roilcall vote entered in the journal, two-thirds of the membership concurring, that contains a suspension of subparagraph {A} for that fiscal year and does not contain any other provision. (iii} No later than the effective date of the statute described in clause (ii), a statute is enacted that provides for the full repayment to local agencies of the total amount of revenue losses, including interest as provided by law, resulting from the modification of ad valorem property tax revenue allocations to local agencies. This full repayment shall be made not later than the end of the third fiscal year immediately following the fiscal year to which the modification applies. f:::l C..L...........~..L. /A1 .L.~11 .~.w~ L.... ....1...1 .1.. .:...... ,.4:.....1 . .:L+L.., .. ..++4...+ ~ ~ . ~ ~ 3 °{~dl {~v} ll A suspension of subparagraph (A) shall not result in a total ad valorem property tax revenue loss to all local agencies within a county that exceeds 8 percent of the total amount of ad valorem property tax revenues that were allocated among all local agencies within that county for the fiscal year immediately preceding the fiscal year for which subparagraph {A} is suspended. {2}{A) Except as otherwise provided in subparagraphs (B} and (C), restrict the authority of a city, county, or city and county to impose a tax rate under, or change the method of distributing revenues derived under, the Bradley-Burns Uniform local Sales and Use Tax Law set forth in Part 1.5 {commencing with Section 7200} of Division 2 of the Revenue and Taxation Code, as that law read on November 3, 2004. The restriction imposed by this subparagraph also applies to the entitlement of a city, county, or city and county to the change in tax rate resulting from the end of the revenue exchange period, as defined in Section 7203.1 of the Revenue and Taxation Code as that section read on November 3, 2004. {B) The legislature may change by statute the method of distributing the revenues derived under a use tax imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax law to allow the State to participate in an interstate compact or to comply with federal law. {C) The Legislature may authorize by statute two or more specifically identified local agencies within a county, with the approval of the governing body of each of those agencies, to enter into a contract to exchange allocations of ad valorem property tax revenues for revenues derived from a tax rate imposed under the Bradley-Burns Uniform Local Sales and Use Tax Law. The exchange under this subparagraph of revenues derived from a tax rate imposed under that law shall not require voter approval for the continued imposition of any portion of an existing tax rate from which those revenues are derived. (3) Except as otherwise provided in subparagraph (C) of paragraph (2), change for any fiscal year the pro rata shares in which ad valorem property tax revenues are allocated among local agencies in a county other than pursuant to a bill passed in each house of the Legislature by roll call vote entered in the journal, two-thirds of the membership concurring. The legislature shall not chanee the pro rata shares of ad valorem propertv tax pursuant to this paraeraph. nor chanee the allocation of the revenues described in Section 15 of Article XI, to reimburse a local eovernment when the Leeislature or any state aaency mandates a new_ ro ram or hi her level of service on that local overnment. _ {4) Extend beyond the revenue exchange period, as defined in Section 7203.1 of the Revenue and Taxation Code as that section read on November 3, 2004, the suspension of the authority, set forth in that section on that date, of a city, county, or city and county to impose a sales and use tax rate under the Bradley-Burns Uniform local Sales and Use Tax Law. 4 ~~~~i (5) Reduce, during any period in which the rate authority suspension described in paragraph (4) is operative, the payments to a city, county, or city and county that are required by Section 97.68 of the Revenue and Taxation Code, as that section read on November 3, 2004. (6) Restrict the authority of a local entity to impose a transactions and use tax rate in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code), or change the method for distributing revenues derived under a transaction and use tax rate imposed under that law, as it read on November 3, 2004. (71 Require a community redevelopment agency fA) to pay. remit, loan or otherwise transfer. directly or indirectly. taxes on ad valorem real property and tangible personal property allocated to the agency pursuant to Section 16 of Article XVI to or for the benefit of the State. any agency of the State, or any iurisdiction: or (81 to use. restrict, or assign a particular purpose for such taxes for the benefit of the State, anv aAencv of the State, or anv iurisdiction, other than (il for making payments to affected taxing agencies pursuant to Sections 33607.5 and 33607.7 of Health and Saferi Code or similar statutes requiring such payments. as those statutes read on lanuarv 1.2008: or (ii) far the purpose of increasing, improving, and preserving the supply of low and moderate income housing available at affordable housing cost. {b) For purposes of this section, the following definitions apply: (1) "Ad valorem property tax revenues" means all revenues derived from the tax collected by a county under subdivision (a) of Section 1 of Article XIII A, regardless of any of this revenue being otherwise classified by statute. (2) "Local agency" has the same meaning as specified in Section 95 of the Revenue and Taxation Code as that section read on November 3, 2004. I31 "Jurisdiction" has the same meaning as specified in Section 45 of the Revenue and Taxation Code as that section read on November 3. 2004. Section Five. Article XIX of the California Constitution is hereby amended to read as follows: SECTION 1. The Legislature shall not borrow revenue from the Hiahwav Users Tax Account, or its successor, and shall not use these revenues for purposes, or in ways, other than those specifically permitted by this article. SEC. 2. Revenues from taxes imposed by the State on motor vehicle fuels for use in motor vehicles upon public streets and highways, aver and above the costs of collection and any refunds authorized by law, shall be deposited into the Highway Users Tax Account (Section 2100 of the Streets and Highways Code1 or its successor, which is hereby declared to be a trust 5 ~~a- fund,_and shall be allocated monthly in accordance with Section 4, and shall used solely forthe following purposes: (a) The research, planning, construction, improvement, maintenance, and operation of public streets and highways (and their related public facilities for nonmotorized traffic), including the mitigation of their environmental effects, the payment for property taken or damaged for such purposes, and the administrative costs necessarily incurred in the foregoing purposes. (b}The research, planning, construction, and improvement of exclusive public mass transit guideways (and their related fixed facilities), including the mitigation of their environmental effects, the payment for property taken or damaged far such purposes, the administrative costs necessarily incurred in the foregoing purposes, and the maintenance of the structures and the immediate right-of-way for the public mass transit guideways, but excluding the maintenance and operating costs for mass transit power systems and mass transit passenger facilities, vehicles, equipment, and services. SE6r~ SEC. 3. Revenues from fees and taxes imposed by the State upon vehicles or their use or operation, over and above the costs of collection and any refunds authorized by law, shall be used for the following purposes: {a}The state administration and enforcement of laws regulating the use, operation, or registration of vehicles used upon the public streets and highways of this State, including the enforcement of tra#fic and vehicle laws by state agencies and the mitigation of the environmental effects of motor vehicle operation due to air and sound emissions. {b) The purposes specified in Section ~ 2 of this article. ~-3: SEC. 4. a Exce t as rovided in subdivision b the ~ ea°^'~•••~^ c.".~'! e p..... --.... "`'^'^ '~ •'''`^`~ ^ "'''^ ^ ~~~^••^^^^ ^~ ^~~~*~~•- statutory aUeeatiew formulas in effect on June 30. 2009 which allocate the revenues described in Section 2 to #ef cities, counties, and areas of the State shall remain in effect. b The legislature shall not modify the statutory allocations in effect on June 30.2009 unless and until both of the following have occurred: j11+i: The Legislature determines in accordance with this subdivision that another basis for an equitable, geographical, and jurisdictional distribution exist; ~~^••°a~a *'~~•, ••~~" ~••^~ , .Any future statutory revisions shall ~ provide for the allocation of these revenues, together with other 6 Ih~~7~ similar revenues, in a manner which gives equal consideration to the transportation needs of all areas of the State and all segments of the population: and {B1 be consistent with the orderly achievement of the adopted local, regional, and statewide goals for ground transportation in local general plans, regional transportation plans, and the California Transportation Plan-~ l2] The process described in subdivision {c) has been completed. {clThe Legislature shall not modify the statutory allocation pursuant to subdivision Ib~ until all of the following have occurred: L11 The California Transportation Commission has held no less than four public hearings in different parts of the State to receive public input about the local and re,Rional coals for ground transportation in that part of the State: 21 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 ground transportation in local general plans,. regional transportation plans, and the California Transportation Plan; and {31 Ninety days have passed since the publication of the report by the California Transportation Commission. {dl A statute enacted bYthe LeA~slature modifying the statutory allocations must be by a bill,passed in each house of the Legislature by roll call vote entered in the journal, two-thirds of the membership concurring, provided that the bill does not contain any other unrelated provision. {el The revenues allocated by statute to cities, counties. and areas of the State pursuant to this article maybe used solely by the entity to which they are allocated, and solely for thepurpases described in Sections 2.5, or 6 of this article. (fl The Legislature may not take any action which permanently or temporarily does any of the following: (1?changes the status of the Highway Users Tax Account as a trust fund; {21 borrows. diverts. or appropriates these revenues for purposes other than those described in subdivision (e1; or {31 delays, defers, suspends, or otherwise interrupts the payment. allocation, distribution, disbursal, or transfer of revenues from taxes described in Section 2 to cities, counties and areas of the State pursuant to the procedures in effect on June 30, 2009. ~-4. SEC. 5. Revenues allocated pursuant to Section 3 4 may not be expended for the purposes specified in subdivision (bj of Section ~ 2 except for research and planning, until such use is approved by a majority of the votes cast on the proposition authorizing such use of 7 ~-~ai such 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. `~-~. SEC. fi. ~ Uap to 25 percent of the revenues ~~~~•~ allocated to the State pursuant to Section 4 for the purposes specified in subdivision (a~ of Section ~ 2 of this article maybe 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 for such purposes issued the State on and after November 2, 2010 #eFS~e#eses. (b} Up to 25 percent of the revenues allocated to anv city or county pursuant to Section 4 for the purposes specified in subdivision (al of Section 2 of this article maybe pledged or used only by anv ciri or county for the pavment of principal and interest onvoter-approved bonds issued by that city or county for such purposes. t.41~i:: •'+ +^ +I,:r n.+:,.1„ i... •4 ,,... ~..; h.-..:-~~~I ..n~lnr +h'e w~+' 1 A 1 •L. .1 8 ~` SEC. 7. If the Legislature reduces or repeals the taxes described in Section 2 and adopts an alternative source of revenue to replace the monevs derived from those taxes the replacement revenue shall be deposited into the Hiahwav Users Tax Account dedicated to the Aurposes listed in Section 2. and allocated to cities. counties. and areas of the State pursuant to Section 4. All other provisions of this article shall apahr to anv revenues adapted by the ~~ Legislature to replace the monevs derived from the taxes described in Section 2 5~~. SEC. 8. This article shall not affect or apply to fees or 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 such statutes. gE6r$. SEC• 9. Notwithstanding Sections 3~d 2 and 3 of this article, any real property acquired by the expenditure of the designated tax revenues by an entity other than the State for the purposes authorized in those sections, but no longer required for such purposes, maybe used for local public park and recreational purposes. 3i~9. SEC. 10. Notwithstanding any other provision of this Constitution, the Legislature, by statute, with respect to surplus state property acquired by the expenditure of tax revenues designated in Sections ~d 2 and 3 and located in the coastal zone, may authorize the transfer of such property, for a consideration at least equal to the acquisition cost paid by the s5tate to acquire the property, to the Department of Parks and Recreation for state park purposes, or to the Department of Fish and Game for the protection and preservation of fish and wildlife habitat, or to the Wildlife Conservation Board for purposes of the Wildlife Conservation Law of 1947, or to the State Coastal Conservancy for the preservation of agricultural lands. As used in this section, "coastal zone" means "coastal zone" as de#ined by Section 30103 of the Public Resources Code as such zone is described on January 1, 1977. Section Six. Article XIX A of the California Constitution is hereby amended to read as follows: SECTION 1. La1 The Legislature shall not borrow revenues from the Public Transportation Account, or anv successor account. and shall not use these revenues for purposes. or in wavs, other than those specifically permitted by this article The €u~s-i~ie Public Transportation Account in the State Transportation Fund, or any successor account, is a trust fund. The Legislature may not chan~te the status of the Public Transportation Account as a trust fund. Funds in the Public Transportation Account may 9 ,~ r not be loaned or otherwise transferred to the General Fund or any other fund or account in the State Treasury. (`c) All revenues specified in paragraphs (1} through (3) inclusive of subdivisian (a} of Section 7102 of the Revenue and Taxation Code. as that section read on June 1, 2001 shall be deposited no less than quarterly into the Public Transportation Account (Section 99310 of the Public Utilities Code}. or its successor. The legislature may not take any action which temporarily or permanently diverts or appropriates these revenues #or purposes other than those described in subdivision d or dela defers sus ends or otherwise interru is the quarterly deposit of these funds into the Public Transportation Account {d}Funds in the Public Transportation Account may only be used #ortransportation planning and mass transportation purooses. The revenues described in subdivision (c} are hereby continuously appropriated to the Controller without reeard to fiscal nears #or allocation as #ollows: 1 Fift ercent ursuant to subdivisions a throw h inclusive a# Section 99315 of the Public Utilities Code. as that section read on July 30 2009. 2 Twenty-five percent pursuant to subdivision (b10# Section 99312 of the Public Utilities Code. as that section read on 1uly 30, 2009. {3) Twenty-five percent pursuant to subdivision (c) of Section 99312 of the Public Utilities Code. as that section read on lulu 30.2009. €+ssal-yeas i(I 14 ~a~ (e} for purposes of paragraph {11 of subdivision fd} "transportation planning" means only the purposes described in subdivisions ic1 through {f1. inclusive. of Section 99315 of the PubUc Utilities Code, as that section read an Juiv 30.2009. (fl For purposes of this article "mass transportation " "public transit "and "mass transit" have the same meaning 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 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 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 99260.99260.7, 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 L}Surface transportation service provided by the Department of Transportation pursuant to subdivision fa} 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 lb} of Section 99315 of the Public Utilities Code, as that section read on Julv 30 2009 SEC. 2. (a~ As used in this section, a "local transportation fund" is a fund created under Section 29530 of the Government Code, or any successor to that statute. (b) All local transportation funds are hereby designated trust funds. The Legislature may not change the status of local transportation funds as trust funds ~~ (cJ A local transportation fund that has been created pursuant to law may not be abolished. (d) Money in a local transportation fund shall be allocated only bvthe local government that created the fund. and only for the purposes authorized under Article 11 (commencing with Section 29530 of Chapter 2 of Division 3 of Title 3 of the Government Code and Chapter 4 (commencing with Section 99200] of Part 11 of Division 10 of the Public Utilities Code, as those provisions existed on October 1,1997. Neither the county nor the legislature 11 f~ , ~, may authorize the expenditure of money in a local transportation fund for purposes other than those specified in this subdivision. (e}This section constitutes the sole method of allo~atina. distributing. and using the revenues in a local transportation fund. The purposes described in subdivision (d}are the sole purooses for which the revenues in a local transportation fund may be used The Legislature may not enact a statute or take anv other action which, aermanently or temporarily does anv of the following: (1}Transfers. diverts. or appropriates the revenues in a local transportation fund for anv other purpose than those described in subdivision [d); (21 Authorizes the exaenditures of the revenue in a local transportation fund for anv other purpose than those described in subdivision (d}• . (3} Borrows or loans the revenues in a local transportation fund regardless of whether these revenues remain in the Retail Sales Tax Fund in the State Treasury or are trans_fe_rred to another fund or account. (f} The percentage of the tax imposed pursuant to section 7202 of the Revenue and Taxation Code allocated to local transportation funds shall not be reduced below the percentage that was transmitted to such funds during the 2008 calendar vear Revenues allocated to local transportation funds shall be transmitted in accordance with Section 7204 of the Revenue and Taxation Code and deposited into local transportation funds in accordance with Section 29530 of the Government Code. as those sections read on June 30 2009. Section Seven. Artide XIX B of the California Constkution is hereby amended to read as follows: SECTION 1. The Legislature shall not borrow revenues from the Transportation Investment Fund. or its successor, and shall not use these revenues for purposes o_r in wavs other than those specifically permitted by this article. SEC. 2. (a}For the 2003-04 fiscal year and each fiscal year thereafter, all ~s+~s revenues that are collected during the fiscal year from taxes under the Sales and Use Tax law (Part 1(commencing with Section 6001) of Division 2 of the Revenue and Taxation Codej, 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 73011 of Division 2 of the Revenue and Taxation Code} aa~a~e shall be deposited into the Transportation Investment Fund or its successor. which is hereby created in 12 ~- r°' 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. (Z} For the 2008-09 fiscal year and each fiscal year 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 lulu 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 far the purposes of subdivisions (a) and {b) of Section 99315 of the Public Utilities Code. as that section read on lulu 30.2009. (6} 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 the 2008-09 fiscal year and each fiscal year thereafter, moneys in the Transportation Investment Fund are hereby continuously appropriated to the Controller without regard to fiscal nears, which shall be allocate , , as follows: (A} Twenty percent of the moneys for the purposes set forth in subparagraph (A) of paragraph (2) of subdivision (b}. (B) Forty percent of the moneys for the purposes set forth in subparagraph {B) of paragraph {2} of subdivision {b). (C) Twenty percent of the moneys for the purposes set forth in subparagraph {C) of paragraph (2) of subdivision {b}. {D) Twenty percent of the moneys for the purposes set forth in subparagraph (D) of paragraph {2) of subdivision (b}. 13 I~~dl ~ ~ The legislature may not enact a statute that modifies the percentage shares set forth in subdivision (c) ntil all of the followine have octurred: j11 The California Transportation Cammission has held no less than four public hearings in different Harts of the State to receive public input about the need for public transit, mass transportation transportation capital improvement projects and street and hirthway maintenance: ~2j_The California Transportation Commission has published a report describing the input received at the public hearings and how the modification to the statutarv allocation is 14 ~~ . ai 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 Reneral plans. regional transportation plans and the California Transportation Plan: L) Ninety days have sassed 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 roll call vote entered in the iournal.two-thirds of the membership concurring provided that the bill does not contain any other unrelated provision and that the revenues described in subdivision (a1 are expended solely for the purposes set forth in paragraph (2} of subdivision {b}. (f}(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 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). ~jThis section constitutes the sole method of allocatine. 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: {11Transfers diverts or aapropriates the revenues described in subdivision f a}for any other purposes than those described in paragraph 12} of subdivision (b}: ~2 Authorizes the expenditures of the revenues described in subdivision {a} for any other purposes than those described in paragraph (2} of subdivision (b} or; 15 Iq~a~ j3}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. (h) For purposes of this article "mass transportation ° "public transit" and "mass transit" have the same meaning`s as "public transportation." "Public transportation" means: L1){A) Surface transportation service provided to the tteneral public. complementant paratransit service provided to persons with disabilities as required by 42 U.S.C. 12143, or similar transportation provided to people with disabilities or the elderly: {Bl operated by bus. rail ferry or other conveyance on a fixed route demand response. or otherwise regularly available basis; iC) generally for which a fare is charaed• and {D) provided by any transit district. included transit district municipal operator included municipal operator. elieible municipal operator or transit development board as those terms were defined in Article 1 of Chapter 4 of Part 11 of Division 10 of the Public Utilities Code on January 1 2009 a ioint powers authority formed to provide mass transportation services, an aAency described in subdivision {fl of Section 15975 of the Gove nment Code as that section read on lanuarv 1, 2009, any recipient of funds under Sections 99260 99260 7 99275 or subdivision {c} of Section 99400 of the Public Utilities Code as those sections read on lanuary 1 2009 or a consolidated agency as defined in Section 132353 1 of the Public Utilities Code as that section read on tan uarv 1. 2009. j2) Surface transportation service provided bvthe 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 includine those identified in subdivision {b) of Section 99315 of the Public Utilities Code as that section read on lulu 30, 2009. {i} If the Leeislature 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 paraeraph i2} 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 {a1. Section Eight. Article XIX C is hereby added to the Constitution to read as follows: SECTION 1. if any challenge to invalidate an action that violates Articles XIX, XIX A, or XIX B of the California Constitution is successful either by way of a final judgment, settlement, 16 a~' ~ ~r or resolution by administrative or legislative action, there is hereby continuously appropriated from the General Fund to the Controller, without regard to fiscal years, that amount of revenue necessary to restore the fund or account from which the revenues were unlawfully taken or diverted to its financial status had the unlawful action not been taken. SEC. 2. if any challenge to invalidate an action that violates Section 24 or Section 25.5 of Article XIII of this Constitution is successful either by way of a final judgment, settlement, ar resolution by administrative or legislative action, there is hereby continuously appropriated from the General Fund to the local government an amount of revenue equal to the amount of revenue unlawfully taken or diverted. SEC. 3. Interest calculated at the Pooled Money Investment Fund rate from the date or dates the revenues were unlawfully taken or diverted shall accrue to the amounts required to be restored pursuant to this section. Within thirty days from the date a challenge is successful, the Controller shall make the transfer required by the continuous appropriation and issue a notice to the parties that the transfer has been completed. SEC. 4. If in any challenge brought pursuant to this section a restraining order or preliminary injunction is issued, the plaintiffs or petitioners shall not be required to post a bond obligating the plaintiffs or petitioners to indemnify the government defendants or the State of California for any damage the restraining order or preliminary injunction may cause. Section Nine. Section 16 of Article XVI of the Constitution requires that a specified portion of the taxes levied upon the taxable property in a redevelopment project each year be allocated to the redevelopment agency to repay indebtedness incurred for the purpose of eliminating blight within the redevelopment project area. Section 16 of Article XVI prohibits the Legislature from reallocating some or that entire specified portion of the taxes to the State, an agency of the State, or any other taxing jurisdiction, instead of to the redevelopment agency. The Legislature has been illegally circumventing Section 16 of Article XVI in recent years by requiring redevelopment agencies to transfer a portion of those taxes for purposes other than the financing of redevelopment projects. A purpose of the amendments made by this measure is to prohibit the Legislature from requiring, after the taxes have been allocated to a redevelopment agency, that the redevelopment agency transfer some or all of those taxes to the State, an agency of the State, or a jurisdiction; or use some or all of those taxes for the benefit of the State, an agency of the State, or a jurisdiction. Sedlon Ten. Continuous Appropriations. 17 ar ~ ai The provisions of Sections 6, 7, and 8 of this Act that require a continuous appropriation to the Controller without regard to fiscal year are intended to be "appropriations made by law" within the meaning of Section 7 of Article XVI of the California Constitution. Section Eleven. iuberal Cons#ruction. The provisions of this Act shall be liberally construed in order to effectuate its purposes. Section Twelve. Conflicting Statutes. Any statute passed by the legislature between October 21, 2f109 and the effective date of this measure, that would have been prohibited if this measure were in effect on the date it was enacted, is hereby repealed. Section Thirteen. Conflicting Ballo# Measures. In the event that this measure and another measure or measures relating to the direction or redirection of revenues dedicated to funding services provided by local governments and/or transportation projects or services appear on the same statewide election ballot, the provisions of the other measure or measures shall be deemed to be in conflict with this measure. In the event that this measure shall receive a greater number of affirmative votes, the provisions of this measure shall prevail in their entirety, and the provisions of the other measure or measures shall be null and void. Section t:ourteen. Severabili#y. It is the intent of the People that the provisions of this Act are severable and that if any provision of this Act or the application thereof to any person or circumstance, is held invalid, such invalidity shall not affect any other provision or application of this Act which can be given effect without the invalid provision or application. 1$