BILL NUMBER: AB 2744 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Huffman
(Coauthors: Assembly Members DeSaulnier, Hancock, Lieber, and
Torrico)
(Coauthor: Senator Torlakson)
FEBRUARY 22, 2008
An act to amend Sections 8502, 8503, 8504, 8505, 8506, 8507, 8508,
8509, and 8510 of the Revenue and Taxation Code, relating to
transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2744, as introduced, Huffman. Metropolitan Transportation
Commission: fee: motor vehicle fuel.
(1) Under existing law, the Metropolitan Transportation Commission
is created to provide comprehensive regional transportation planning
for the 9-county region comprising the commission's jurisdiction.
Generally, the commission is responsible for planning, approving, and
carrying out various transportation-related activities within the
region, including functions pertaining to highways, toll bridges, and
transit systems.
The commission is authorized to impose a tax on the privilege of
selling within the region motor vehicle fuel, as defined, excluding
motor vehicle fuel used to power aircraft, upon approval of the
measure by the voters within the region at an election.
This bill would authorize the commission to impose a fee on each
gallon of motor vehicle fuel, as defined, delivered into the fuel
supply tank or tanks of a motor vehicle in the region, excluding
motor vehicle fuel used to power aircraft, for a 25-year period. The
bill would require the commission to adopt a regional
transportation/climate protection expenditure plan for the revenues
derived from the fee, if it is imposed. The fee would be levied at a
rate established by the commission, but not exceeding $0.10 per
gallon.
The commission would be authorized to impose the fee upon approval
of the measure by the voters within the region at the election.
The bill would require the commission to contract with the State
Board of Equalization to administer the fee.
The bill would impose a state-mandated local program by requiring,
upon the request of the commission, the board of supervisors of each
county and city and county within the region to submit to the voters
at a local election consolidated with a statewide primary or general
election specified by the commission a measure, adopted by the
commission, authorizing the commission to impose the fee for a
25-year period. The bill would require the commission to reimburse
each county and city and county in the region for the cost of
submitting the measure to the voters. The bill would provide that
these costs shall be reimbursed from revenues derived from the fee if
the measure is approved by the voters and from any available funds
of the commission if the measure is not approved.
(2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that the Legislature finds there is no
mandate contained in the bill that will result in costs incurred by a
local agency or school district for a new program or higher level of
service which require reimbursement pursuant to these constitutional
and statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 8502 of the Revenue and Taxation Code is
amended to read:
8502. The commission may impose , in addition to any
other tax authorized by this division, a tax on the privilege of
selling within the region, a fee on each gallon of
motor vehicle fuel, as defined by Section 7326 , that is
delivered into the fuel supply tank or tanks of a motor vehicle in
the region . The tax fee shall
not apply to motor vehicle fuel used to power aircraft. The
tax fee shall be levied at a rate established by
the commission, but not exceeding ten cents ($0.10) per gallon.
Commencing on January 1 of the year following the election approving
the tax fee , the tax
fee may be imposed for a period not to exceed
20 25 years.
SEC. 2. Section 8503 of the Revenue and Taxation Code is amended
to read:
8503. (a) Prior to imposing the tax fee
, the commission shall adopt a regional transportation
transportation/climate protection expenditure
plan for the revenues derived from the tax
fee . The regional transportation
transportation/climate protection expenditure plan shall
describe specific proposed transportation projects
and programs and the estimated cost of each
project . Adoption of the expenditure plan by the
commission shall include a finding by the commission that the
expenditure plan will achieve a nexus between payment of motor fuel
fee and benefit received. Benefit, in this context, includes
long-term offsetting of the congestion and climate change impacts of
motor fuel consumption.
(b) The regional transportation
transportation/climate protection expenditure plan shall also
meet the following minimum objectives and criteria:
(1) Project expenditures shall reflect an equitable distribution
of revenues throughout the region with not less than 95 percent of
revenues from each county, based on population, being invested over
the 20-year 25-year life of the
tax fee in projects attributable to
that county. In addition, during every five-year period, no less than
80 percent of the revenues from each county, based on population,
invested during that period shall be invested in projects
attributable to that county. The commission shall allocate any
accrued interest according to the same formula. At the time of the
development of the expenditure plan, the commission shall use
population data from the most recent United States census, and shall
take into account estimated increases in population over the
20-year 25-year period projected by the
Association of Bay Area Governments.
(2) Projects and programs included in the expenditure
plan shall be consistent with the commission's regional
transportation transportation/climate protection
plan , a congestion management program, or a countywide
transportation plan. The . In developing the
expenditure plan, the commission shall, in
prioritizing projects in the expenditure plan, give additional
consideration to projects where local land use policies reduce
dependence on single-occupant motor vehicle travel ,
in prioritizing expenditures that are most cost-effective
at producing ongoing reduction in carbon emissions from motor vehicle
use in the bay area relative to the likely status-quo trends, so as
to offset the carbon-producing and congestion-producing effects of
consumption of motor vehicle fuel, shall give additional
consideration to projects or programs where local land use policies
reduce overall vehicle miles traveled . The expenditure plan
development process shall include consultation with cities, counties,
transit operators, congestion management agencies, the Bay Area
Air Quality Management District, climate protection and energy
efficiency experts, and other interested groups.
(3) Cost estimates Estimates of
cost, carbon reduction, and mobility improvement for each
project shall be prepared by the commission, in consultation with
project sponsors, and verified by an independent
cost-estimating firm expert retained by the
commission for that purpose. Estimates of other funding required to
complete any project shall be based on an estimate of funds
reasonably expected to be available during the 20-year
25-year period commencing with the year that the
tax fee is initially imposed.
(4) To be eligible for inclusion in the expenditure plan, a
project shall meet at least one of the following regional
transportation needs:
(A) Fund maintenance and rehabilitation of local streets and
roads, sidewalks, or bicycle routes, or close a gap in the local
street and road system.
(B) Fund capital or operating expenses of public transit systems.
(C) Fund transit expansion projects in the commission's Resolution
3434, Regional Transit Expansion Program as contained in the
commission's regional transportation plan.
(D) Provide an alternative to single occupancy automobile travel.
(E) Improve safety on specific roadway segments where accident or
fatality rates exceed the expected rate for those segments over a
multiyear timeframe, including, but not limited to, expansion or
realignment of the roadway.
(F) Improve the operational efficiency of the existing roadway
system without a physical expansion of the system. However, expansion
projects to reconfigure existing interchanges are eligible for
inclusion in the plan.
(G) Fund implementation of the requirements of the federal
Americans with Disabilities Act of 1990 (P.L. 101-336), or those
requirements as revised, on public transit systems and other
transportation-related facilities.
(H) Fund seismic retrofitting of transportation facilities.
(I) Fund intermodal freight or passenger facilities.
(J) Fund transportation enhancement activities, including projects
consistent with the commission's Transportation for Livable
Communities (TLC) Program and the Housing Incentive Program (HIP).
(K) Defray interest costs and other expenses associated with the
issuance of revenue bonds or revenue anticipation notes.
(5)
(4) If not otherwise available, sufficient
funding shall be included in the cost estimates and expenditure plan
presented to the voters to operate and maintain each included project
for the duration of the tax fee .
SEC. 3. Section 8504 of the Revenue and Taxation Code is amended
to read:
8504. (a) Following the adoption by the commission of a regional
transportation transportation/climate
protection expenditure plan, the board of supervisors of each
county and city and county in the region shall, upon the request of
the commission, submit to the voters at a local election consolidated
with a statewide primary or general election specified by the
commission, a measure, adopted by the commission, authorizing the
commission to impose the tax fee
throughout the region.
(b) The measure may not be grouped with state or local measures on
the ballot, but shall be set forth in a separate category and shall
be identified as Regional Measure 2 3 .
(c) Regardless of the system of voting used, the wording of the
measure shall read as follows:
"Shall The Metropolitan Transportation Commission be authorized to
impose a fee of ____ per gallon on the sale of gasoline to build and
operate transportation projects identified in the expenditure plan
adopted by the commission?"
"To reduce global warming pollution, improve energy efficiency,
promote energy independence, improve local transportation options,
and reduce traffic congestion, shall voters authorize a Bay Area
Regional Transportation Fund for Climate Protection that
^ Increases public transit options, reliability, and ridership
^ Increases housing supply near transit
^ Increases safety and use of walking and bicycling
^ Promotes fuel efficient vehicles and clean fuels
By implementing a ____ cents per gallon fee on each gallon of
gasoline that is delivered into the tanks of motor vehicles in the
bay area?"
(d) The commission shall reimburse each county and city and county
in the region for the cost of submitting the measure to the voters.
These costs shall be reimbursed from revenues derived from the
tax fee if the measure is approved by
the voters or, if the measure is not approved, from any funds of the
commission that are available for general transportation planning.
(e) The board of supervisors of a county or city and county may
elect not to submit the measure adopted by the commission to the
voters if it submits an alternative countywide transportation funding
measure to the voters at the same election.
SEC. 4. Section 8505 of the Revenue and Taxation Code is amended
to read:
8505. Upon approval of the measure by the margin of voters within
the region voting at a local election as determined necessary by the
California Constitution or other applicable statutory provisions,
the commission may impose the tax fee
in all counties in the region in which the measure appeared on the
ballot.
SEC. 5. Section 8506 of the Revenue and Taxation Code is amended
to read:
8506. The commission shall contract with the State Board of
Equalization for the administration of any tax
fee imposed under this chapter, and the board shall be
reimbursed for its actual cost in the administration of the
tax fee and for its actual cost of preparation
to administer the tax fee based upon an
independent audit.
SEC. 6. Section 8507 of the Revenue and Taxation Code is amended
to read:
8507. The State Board of Equalization shall adopt the necessary
rules and regulations to administer the tax
fee .
SEC. 7. Section 8508 of the Revenue and Taxation Code is amended
to read:
8508. After deducting its cost of administering the tax
fee , the State Board of Equalization shall
periodically transmit the net revenues to the commission as promptly
as possible. Transmittal of those revenues shall be made at least
twice in each calendar quarter.
SEC. 8. Section 8509 of the Revenue and Taxation Code is amended
to read:
8509. The net revenues received by the commission shall be
expended only in accordance with the regional transportation
transportation/climate protection expenditure
plan adopted pursuant to Section 8503, except that the commission may
deduct from those revenues funds to reimburse it for expenses
incurred in the initial implementation of this chapter, and
thereafter, its cost of administration, not to exceed 1 percent of
annual net revenues.
SEC. 9. Section 8510 of the Revenue and Taxation Code is amended
to read:
8510. In order to be eligible for funds derived from the
tax fee , project sponsors shall comply with
all applicable commission rules and regulations including, but not
limited to, those adopted pursuant to Section 66516 of the Government
Code and Sections 99244 and 99246 of the Public Utilities Code. In
consultation with cities, counties, transit operators, congestion
management agencies, and other interested groups, the commission
shall also develop and implement a program to ensure that project
sponsors expend funds derived from the tax
fee in an efficient and effective manner. No operating or
maintenance funding provided from the tax fee
shall be used to supplant any funds within the discretionary
control of the recipient agency that are used for existing
transportation operating or maintenance activities.
SEC. 10. The Legislature finds that there is no mandate contained
in this act that will result in costs incurred by a local agency or
school district for a new program or higher level of service which
require reimbursement pursuant to Section 6 of Article XIII B of the
California Constitution and Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.