BILL NUMBER: ABX8 5 AMENDED
BILL TEXT
AMENDED IN SENATE FEBRUARY 19, 2010
INTRODUCED BY Committee on Budget (Evans (Chair), Arambula, Beall,
Blumenfield, Brownley, Carter, Chesbro, De La Torre, Feuer,
Hernandez, Hill, Huffman, Monning, Ruskin, and Swanson)
JANUARY 15, 2010
An act relating to the Budget Act of 2009.
An act to amend Section 22954 and 22955 of the Education Code, to
add Section 16324 to, and to add and repeal Sections 16325, 16325.5,
and 16326 of, the Government Code, and to amend Section 2103.1 of the
Streets and Highways Code, relating to state finance, and declaring
the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 5, as amended, Committee on Budget. Budget Act of
2009. State cash resources.
(1) Existing law requires the Controller to notify the Governor
and the Pooled Money Investment Board when the General Fund is or
will be exhausted. The Governor is then authorized to order the
Controller to direct the transfer of all or any part of the moneys
not needed in other funds or accounts, with specified exceptions, to
the General Fund from those funds or accounts, as determined by the
Pooled Money Investment Board.
This bill would require that specified General Fund payments to be
made in March 2010 would be paid no sooner than April 15, 2010, but
no later than May 1, 2010, which would be carried out by the
Controller. The bill would require the Controller, Treasurer, and
Director of Finance, prior to the payment deferrals, to jointly
review and compare the actual General Fund receipts and disbursements
with the receipt and disbursement projections contained in the
cashflow statements associated with the proposed 2010-11 Governor's
Budget. The bill would require the payments that would otherwise be
deferred to be made if sufficient cash is available, as specified,
and would require the Department of Finance to notify the Joint
Legislative Budget Committee of the payments. If payments are
deferred, beginning April 1, 2010, the bill would require the
Controller, Treasurer, and Director of Finance to review daily the
actual cash receipts and disbursements in comparison to the receipt
and disbursement projections associated with the proposed 2010-11
Governor's Budget. The bill would require the deferred payments to be
made as soon as feasible, in a specified order, if sufficient cash
is available to make all payments through April 15, 2010, including
the payments otherwise subject to deferral, and maintain a prudent
cash reserve.
This bill would enact, until September 1, 2011, a cash management
plan to authorize the Controller, Treasurer, and Director of Finance
to defer General Fund payments for up to 60 or 90 days, as specified,
beginning July 2010, for specific departments and programs subject
to specific conditions.
(2) Existing law requires specified transfers of General Fund
revenue to the Supplemental Benefit Maintenance Account in the
Teachers' Retirement Fund, a continuously appropriated fund, on
November 1 and April 1 of each fiscal year.
This bill would revise those transfer dates to October 15 and
April 15, respectively, of each fiscal year, and would specify that
each payment be 50% of the annual appropriation.
(3) Existing law requires state excise fuel tax revenues to be
deposited in certain accounts and to be allocated, in part, for
various purposes, including the cost of collection and authorized
refunds. Existing law requires the balance of these funds remaining
after authorized deductions to be transferred to, and deposited
monthly in, the Highway Users Tax Account in the Transportation Tax
Fund. Existing law provides for annual and monthly apportionment by
the Controller of specified revenues in the Highway Users Tax Account
to cities, counties, and cities and counties for the transportation
purposes authorized by Article XIX of the California Constitution.
Existing law requires transfers of those revenues from the Highway
Users Tax Account to counties or cities that would otherwise be made
during certain months of 2009 and 2010 to instead be deferred and
paid on or within 2 working days of April 28, 2010, with a specified
exception.
The bill would extend the deferral of apportionments from the
Highway Users Tax Account in the Transportation Tax Fund to cities,
counties, and cities and counties from July 2010 to March 2011,
inclusive, and limit the amount of those deferrals to no more than
$50,000,000 per month.
(4) The California Constitution authorizes the Governor to
declare a fiscal emergency and to call the Legislature into special
session for that purpose. The Governor issued a proclamation
declaring a fiscal emergency, and calling a special session for this
purpose, on January 8, 2010.
This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on January 8, 2010,
pursuant to the California Constitution.
(3) This bill would declare that it is to take effect immediately
as an urgency statute.
This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2009.
The California Constitution authorizes the Governor to declare a
fiscal emergency and to call the Legislature into special session for
that purpose. The Governor issued a proclamation declaring a fiscal
emergency, and calling a special session for this purpose, on January
8, 2010.
This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on January 8, 2010,
pursuant to the California Constitution.
Vote: majority 2/3 . Appropriation:
no yes . Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 22954 of the
Education Code is amended to read:
22954. (a) Notwithstanding Section 13340 of the Government Code,
a continuous appropriation is hereby annually made from the General
Fund to the Controller, pursuant to this section, for transfer to the
Supplemental Benefit Maintenance Account in the Teachers' Retirement
Fund.
(b) Except as reduced pursuant to subdivision (c), the total
amount of the appropriation for each year shall be equal to 2.5
percent of the total of the creditable compensation of the fiscal
year ending in the immediately preceding calendar year upon which
members' contributions are based for purposes of funding the
supplemental payments authorized by Section 24415, as reported
annually to the Director of Finance, the Chairperson of the Joint
Legislative Budget Committee, and the Legislative Analyst pursuant to
Section 22955.5.
(c) Beginning with the 2008-09 fiscal year, the appropriation in
subdivision (b) shall be reduced in accordance with the following
schedule:
2008-09.................$66,386,000
2009-10.................$70,000,000
2010-11.................$71,000,000
2011-12 and each fiscal year
thereafter..............$72,000,000
(d) Transfers made to the Supplemental Benefit Maintenance
Account, pursuant to subdivision (a) shall be made on
November 1 October 15 and April 1
15 of each fiscal year with each payment to
be 50 percent of the annual appropriation .
(e) The board may deduct from the annual appropriation made
pursuant to this section an amount necessary for the administrative
expenses of Section 24415.
(f) It is the intent of the Legislature in enacting this section
to establish the supplemental payments pursuant to Section 24415 as
vested benefits pursuant to a contractually enforceable promise to
make annual contributions from the General Fund to the Supplemental
Benefit Maintenance Account in the Teachers' Retirement Fund in order
to provide a continuous annual source of revenue for the purposes of
making the supplemental payments under Section 24415.
SEC. 2. Section 22955 of the Education
Code is amended to read:
22955. (a) Notwithstanding Section 13340 of the Government Code,
commencing July 1, 2003, a continuous appropriation is hereby
annually made from the General Fund to the Controller, pursuant to
this section, for transfer to the Teachers' Retirement Fund. The
total amount of the appropriation for each year shall be equal to
2.017 percent of the total of the creditable compensation of the
fiscal year ending in the immediately preceding calendar year upon
which members' contributions are based, as reported annually to the
Director of Finance, the Chairperson of the Joint Legislative Budget
Committee, and the Legislative Analyst pursuant to Section 22955.5,
and shall be divided into four equal quarterly
payments. The payments shall be made on, or the following
business day after, July 1, October 1, December 15, and April 15 of
each fiscal year.
(b) Notwithstanding Section 13340 of the Government Code,
commencing October 1, 2003, a continuous appropriation, in addition
to the appropriation made by subdivision (a), is hereby annually made
from the General Fund to the Controller for transfer to the Teachers'
Retirement Fund. The total amount of the appropriation for each year
shall be equal to 0.524 percent of the total of the creditable
compensation of the fiscal year ending in the immediately preceding
calendar year upon which members' contributions are based, as
reported annually to the Director of Finance, the Chairperson of the
Joint Legislative Budget Committee, and the Legislative Analyst
pursuant to Section 22955.5, and shall be divided into four equal
quarterly payments. The percentage shall be adjusted to reflect the
contribution required to fund the normal cost deficit or the unfunded
obligation as determined by the board based upon a recommendation
from its actuary. If a rate increase is required, the adjustment may
be for no more than 0.25 percent per year and in no case may the
transfer made pursuant to this subdivision exceed 1.505 percent of
the total of the creditable compensation of the fiscal year ending in
the immediately preceding calendar year upon which members'
contributions are based. At any time when there is neither an
unfunded obligation nor a normal cost deficit, the percentage shall
be reduced to zero. The funds transferred pursuant to this
subdivision shall first be applied to eliminating on or before June
30, 2027, the unfunded actuarial liability of the fund identified in
the actuarial valuation as of June 30, 1997.
(c) For the purposes of this section, the term "normal cost
deficit" means the difference between the normal cost rate as
determined in the actuarial valuation required by Section 22311 and
the total of the member contribution rate required under Section
22901 and the employer contribution rate required under Section
22950, and shall exclude (1) the portion for unused sick leave
service credit granted pursuant to Section 22717, and (2) the cost of
benefit increases that occur after July 1, 1990. The contribution
rates prescribed in Section 22901 and Section 22950 on July 1, 1990,
shall be utilized to make the calculations. The normal cost deficit
shall then be multiplied by the total of the creditable compensation
upon which member contributions under this part are based to
determine the dollar amount of the normal cost deficit for the year.
(d) Pursuant to Section 22001 and case law, members are entitled
to a financially sound retirement system. It is the intent of the
Legislature that this section shall provide the retirement fund
stable and full funding over the long term.
(e) This section continues in effect but in a somewhat different
form, fully performs, and does not in any way unreasonably impair,
the contractual obligations determined by the court in California
Teachers' Association v. Cory, 155 Cal.App.3d 494.
(f) Subdivision (b) shall not be construed to be applicable to any
unfunded liability resulting from any benefit increase or change in
contribution rate under this part that occurs after July 1, 1990.
(g) The provisions of this section shall be construed and
implemented to be in conformity with the judicial intent expressed by
the court in California Teachers' Association v. Cory, 155
Cal.App.3d 494.
(h) This section shall become operative on July 1, 2003, if the
revenue limit cost-of-living adjustment computed by the
Superintendent of Public Instruction for the 2001-02 fiscal year is
equal to or greater than 3.5 percent. Otherwise this section shall
become operative on July 1, 2004.
SEC. 3. Section 16324 is added to the
Government Code , to read:
16324. (a) Notwithstanding any other provision of law, in order
to effectively manage state cash resources, the General Fund payments
to be made in March 2010 for the programs or departments listed in
subdivision (b) shall be paid no sooner than April 15, 2010, but not
later than May 1, 2010, which shall be carried out by the Controller,
subject to subdivision (c). Nothing in this section shall be
construed to authorize the deferral of state payroll, debt service,
or rental payments that support lease-revenue bonds.
(b) The departments and programs subject to subdivision (a) are as
follows:
(1) Trial court operations (nonpayroll).
(2) California State University.
(3) California Community Colleges (excluding twelve million
dollars ($12,000,000)).
(4) University of California.
(5) State Teachers' Retirement Board, pursuant to Sections 22954
and 22955 of the Education Code.
(c) Prior to each of the payment deferrals identified in
subdivision (b), the Controller, Treasurer, and Director of Finance
shall jointly review and compare the actual General Fund receipts and
disbursements with the receipt and disbursement projections
contained in the cashflow statements associated with the proposed
2010-11 Governor's Budget. If the Controller, Treasurer, and Director
of Finance determine sufficient cash is available to make all
scheduled payments through April 15, 2010, including the payments
otherwise subject to deferral identified in subdivision (b), and
maintain a prudent cash reserve, the Controller shall make the
payments as originally scheduled. The Department of Finance shall
notify the Joint Legislative Budget Committee within 10 days of
making this determination.
(d) In the event payments are deferred pursuant to subdivision
(a), beginning April 1, 2010, the Controller, Treasurer, and Director
of Finance shall review daily the actual cash receipts and
disbursements in comparison to the receipt and disbursement
projections associated with the proposed 2010-11 Governor's Budget.
If the Controller, Treasurer, and Director of Finance determine
sufficient cash is available to make payments through April 15, 2010,
including the payments otherwise subject to deferral identified in
subdivision (b), and maintain a prudent cash reserve, the Controller
shall make the deferred payments, in whole or in part, as soon as
feasible, in the order listed in subdivision (b). The Department of
Finance shall notify the Joint Legislative Budget Committee within 10
days of making this determination and identify the date upon which
the payments were made.
SEC. 4. Section 16325 is added to the
Government Code , to read:
16325. (a) An effective cash management plan is needed for the
2010-11 fiscal year to address General Fund cash shortages that
otherwise may occur during the fiscal year. The goals of the cash
management plan described in this section are to accomplish the
following:
(1) Increase the state's ability to address cash shortages in a
quick and responsible manner.
(2) Address rating agencies' and bond markets' concerns regarding
the state's ability to react effectively to cashflow pressures while
providing a higher level of certainty to bondholders.
(3) Preserve external borrowing capacity and affordability for the
state's infrastructure programs.
(4) Provide a higher level of predictability to affected programs
and entities where deferrals or delays are required.
(b) Nothing in this section or in Sections 16325.5 and 16326 shall
be construed to affect in any way the timing or amount of payments
of state payroll or to affect in any way any judicial proceeding
related to the timing or amount of state employee compensation.
Nothing in this section shall be construed to authorize the delay of
debt service payments, rental payments that support lease-revenue
bonds, reimbursements to local governments for certain reductions in
ad valorem property taxes, as required by Section 25.5 of Article
XIII of the California Constitution, or required payments for
borrowings secured by these repayment obligations, payments required
under a Funds Transfer Cooperative Agreement that are pledged to pay
debt service on state payment acceleration notes that were issued to
finance toll bridge seismic retrofit and replacement projects,
payments appropriated in any year to pay a court judgment pursuant to
the settlement agreement in Paterno v. State (2003) 113 Cal.App.4th
998, or payments to small vendors as defined in the California Prompt
Payment Act (Chapter 4.5 (commencing with Section 927) of Part 3 of
Division 3.6 of Title 1). Nothing in this section shall be construed
to affect the applicability of interest, late payment penalty, and
similar payment requirements under the California Prompt Payment Act
or Section 926.19 when payments to persons or entities specified in
those laws are delayed.
(c) Deferrals authorized in the cash management plan described in
this section and in Sections 16325.5 and 16326 are in addition to any
payment delays, payment deferrals, or payment schedules specified in
other laws. Deferrals authorized in the cash management plan
described in this section and in Sections 16325.5 and 16326 do not
replace, remove, or alter any previously implemented payment delays
or payment deferrals.
(d) Activities by the Controller, Treasurer, and Director of
Finance to implement and carry out the cash management plan described
in this section and Sections 16325.5 and 16326 are hereby exempted
from the provisions of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3).
(e) This section shall become inoperative on September 1, 2011,
and, as of January 1, 2012, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2012, deletes
or extends the dates on which it becomes inoperative and is
repealed.
SEC. 5. Section 16325.5 is added to the
Government Code , to read:
16325.5. (a) Notwithstanding any other provision of law, and to
the extent not prohibited by federal law or the California
Constitution, in order to effectively manage state cash resources,
the General Fund payments projected to be made for the programs or
departments listed in subdivision (b) shall be deferred, effective
beginning in the months of July 2010, October 2010, and March 2011,
in full for no more than 60, 90, and 60 days, respectively, unless
otherwise specified in Section 16326, and Section 2103.1 of the
Streets and Highways Code. Nothing in this section shall be construed
to authorize the deferral of state payroll, debt service, or rental
payments that support lease-revenue bonds.
(b) The departments and programs subject to subdivision (a) are as
follows:
(1) Kindergarten to grade 12, inclusive, apportionments.
(2) Supplementary Security Income/State Supplementary Payments
made by the State Department of Social Services.
(3) Local government social services and transportation payments.
(4) Trial court operations (nonpayroll).
(c) Prior to implementing each of the payment deferrals identified
in subdivision (b) and other provisions of the act adding this
section, the Controller, Treasurer, and Director of Finance shall
jointly review and compare the actual General Fund receipts and
disbursements with the receipts and disbursements contained in the
most current published cashflow projections. If the Controller,
Treasurer, and Director of Finance determine sufficient cash is
available to make all scheduled payments through the 60- or 90-day
period or other period specified in law, including the payments
otherwise subject to deferral identified in subdivision (b), and
maintain a prudent cash reserve, the Controller shall make the
deferred payment as originally scheduled or within the time provided
for by law. In making the determination that cash is sufficient to
make the payments, the Controller, Treasurer, and Director of Finance
shall also consider costs for state government, the scope of any
identified cash shortage, timing, achievability, legislative
direction, and the impact and hardship imposed on potentially
affected programs, entities, and related public services. The
Department of Finance shall notify the Joint Legislative Budget
Committee of this action within 10 days of making this determination.
(d) In the event payments are deferred pursuant to subdivision (a)
or other provisions of the act adding this section, beginning July
1, 2010, the Controller, Treasurer, and Director of Finance shall
review on a monthly basis, or as necessary, the actual General Fund
cash receipts and disbursements in comparison to the receipt and
disbursement projections associated with the Governor's most current
cashflow statements. If the Controller, Treasurer, and Director of
Finance determine sufficient cash is available to make payments
otherwise deferred for the 60- or 90-day period or other period
specified in law, including the payments otherwise subject to
deferral identified in subdivision (b) or other provisions of the act
adding this section, and maintain a prudent cash reserve, the
Controller shall make the deferred payments, in whole or in part, as
soon as feasible unless otherwise provided in Section 16326, or
Section 2103.1 of the Streets and Highways Code. In making the
determination that cash is sufficient to make the payments, in whole
or in part, the Controller, Treasurer, and Director of Finance shall
also consider costs for state government, the scope of any identified
cash shortage, timing, achievability, legislative direction, and the
impact and hardship imposed on potentially affected programs,
entities, and related public services. The Department of Finance
shall notify the Joint Legislative Budget Committee within 10 days of
this determination and identify the date upon which the payments
were made.
(e) Upon concurrence of the Controller, Treasurer, and Director of
Finance, payment deferrals authorized pursuant to subdivision (a) or
other provisions of the act adding this section may be moved forward
to the prior month or delayed to the subsequent month. Any changes
may be authorized no sooner than 30 days after notification in
writing by the Department of Finance to the Joint Legislative Budget
Committee, or not sooner than whatever lesser time the Chairperson of
the Joint Legislative Budget Committee, or his or her designee, may
determine.
(f) This section shall become inoperative on September 1, 2011,
and, as of January 1, 2012, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2012, deletes
or extends the dates on which it becomes inoperative and is
repealed.
SEC. 6. Section 16326 is added to the
Government Code , to read:
16326. (a) Notwithstanding any other provision of law, except as
otherwise specified in Sections 16325 and 16325.5, cash deferrals
specified in Sections 16324, 16325, and 16325.5, and Section 2103.1
of the Streets and Highways Code, as amended by the act adding this
section, shall be limited, as follows:
(1) Payments to public schools in which kindergarten or grades 1
to 12, inclusive, are taught shall be deferred as specified in
Section 16325.5 with the total outstanding amount of the deferrals
under this action limited to two billion five hundred million dollars
($2,500,000,000) at any given point in time, and a maximum of three
deferrals during the fiscal year.
(A) In order for a county office of education to receive scheduled
apportionments in the event payments are deferred, as described in
this paragraph, the Superintendent of Public Instruction shall
determine, and notify the Director of Finance on or before May 17,
2010, that the deferral of warrants pursuant to this paragraph will
result in the county office of education being unable to meet its
expenditure obligations for the time period during which warrants are
deferred. The criteria, as applicable, set forth in statute and
regulations to qualify a school district for an emergency
apportionment shall be used to make the determination specified in
this section.
(B) In order for a charter school to receive scheduled
apportionments in the event payments are deferred, as described in
this paragraph, the chartering authority shall determine, in
consultation with the county superintendent of schools, and notify
the Superintendent of Public Instruction and the Director of Finance
on or before May 17, 2010, that the deferral of warrants pursuant to
this paragraph will result in the charter school being unable to meet
its expenditure obligations for the time period during which
warrants are deferred. The criteria, as applicable, set forth in
statute and regulations to qualify a school district for an emergency
apportionment shall be used to make the determination specified in
this section.
(C) In order for a local education agency to receive scheduled
apportionments in the event payments are deferred, as described in
this paragraph, the county superintendent of schools shall certify to
the Superintendent of Public Instruction and to the Director of
Finance on or before May 17, 2010, that the deferral of warrants
pursuant to this paragraph will result in qualifying the local
educational agency for an emergency apportionment pursuant to Article
2 (commencing with Section 41320) of Chapter 3 of Part 24 of
Division 3 of Title 2 of the Education Code.
(2) Of the amount appropriated from the General Fund to the
University of California for the 2010-11 fiscal year, payments made
by the state to the University of California shall not exceed
one-twelfth of the annual appropriation for each month from July 2010
through April 2011. Any remaining appropriation balance may be paid
to the University of California thereafter with no limitations.
(3) Notwithstanding Sections 84320, 84321, and 84321.5 of the
Education Code and any other law that governs the regulations adopted
by the Chancellor of the California Community Colleges to disburse
funds, two hundred million dollars ($200,000,000) and one hundred
million dollars ($100,000,000) from the payment of apportionments to
districts pursuant to Sections 84320, 84321, and 84321.5 of the
Education Code for July 2010 and March 2011, respectively, shall be
deferred to October 2010 and May 2011, respectively. Notwithstanding
this paragraph and subject to the approval of the Director of
Finance, the Controller shall issue warrants pursuant to Sections
84320, 84321, and 84321.5 of the Education Code that include the full
amount of the apportionment payments for the months of July 2010 or
March 2011, or both, for a community college for which the Chancellor
of the California Community Colleges determines, in consultation
with the Director of Finance, on or before May 17, 2010, that the
deferral of warrants pursuant to this paragraph will present an
imminent threat to the fiscal integrity and security of the community
college.
(4) Of the amount appropriated from the General Fund to the
California State University for the 2010-11 fiscal year, payments
made by the state to the California State University shall not exceed
one-twelfth of the annual appropriation for each month from July
2010 through April 2011. Any remaining appropriation balance may be
paid to the California State University thereafter with no
limitations.
(5) The 2010-11 cash management plan described in Sections 16325
and 16325.5 may include deferrals in state payments for specific
programs that are disbursed to cities, counties, and other public
entities not addressed elsewhere in this section. Deferral of
payments by the state to cities, counties, and other public entities
not addressed elsewhere in this section shall be as follows:
(A) Payments shall be deferred as specified in Section 16325.5 per
the specific program.
(B) Payments shall be limited to one billion dollars
($1,000,000,000) for all programs that affect cities, counties, and
other public entities not addressed elsewhere in this section at any
given point in time.
(C) A maximum of three deferrals per specific program may be made
during the fiscal year.
(D) The state shall not defer any payments to a county with a
population less than 50,000, or a city within a county with a
population less than 50,000.
(E) Payments to local governments may be deferred for social
services programs, transportation programs, and Mental Health
Services Act (Proposition 63 of 2004) programs.
(6) In addition to implementing the payment schedule described in
paragraph (4), the Director of Finance may at any time during the
2010-11 fiscal year defer payment of General Fund moneys, in a
cumulative amount not to exceed two hundred fifty million dollars
($250,000,000), appropriated to the California State University.
Payment of the amount deferred shall be made in the final week of
April 2011.
(b) Limits on payment deferrals specified in subparagraphs (A) and
(C) of paragraph (5) of subdivision (a) shall not apply to payments
authorized in paragraph (3) of subdivision (a) of Section 2103.1 of
the Streets and Highways Code to cities and counties. Limits on
payment deferrals specified in subparagraphs (A) and (C) of paragraph
(5) of subdivision (a) shall not apply to payments to the Mental
Health Services Act
(Proposition 63) programs.
(c) Upon the Controller's receipt of a letter from the executive
officer of the Administrative Office of the Courts, or any other
executive officer representing cities or counties, the state may
defer payments to the entity or entities that the executive officer
represents as specified in the letter even if the specified amounts
exceed the deferrals authorized in this section or elsewhere in law.
(d) This section shall become inoperative on September 1, 2011,
and, as of January 1, 2012, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2012, deletes
or extends the dates on which it becomes inoperative and is
repealed.
SEC. 7. Section 2103.1 of the Streets
and Highways Code is amended to read:
2103.1. (a) Notwithstanding any other law, the apportionment of
revenues deposited to the credit of the Highway Users Tax Account in
the Transportation Tax Fund that are otherwise required to be made,
pursuant to this chapter, to cities, counties, and cities and
counties for the following months shall be deferred and shall be made
as follows:
(1) For the months of July and August of 2009, the apportionments
shall be paid with the payment of August revenues in September 2009.
This deferral shall not apply to a county with a population of less
than 40,000.
(2) For the months of November and December of 2009, and January,
February, and March of 2010, the apportionments shall be paid on or
within two business days of April 28, 2010. This deferral shall not
apply to a county with a population of less than 40,000.
(3) For the months of July, August, September, October, November,
and December 2010, and January, February, and March 2011, no more
than fifty million dollars ($50,000,000) for each month shall be
deferred. The balance of unpaid apportionments for these months shall
be paid on or within two business days of April 28, 2011. The state
shall not defer any payments to a county with a population less than
50,000, or a city within a county with a population less than 50,000.
(b) For the purpose of meeting the cash obligations associated
with ongoing budgeted costs, a city, county, or city and county may
make use of any cash balance in its account that is designated for
the receipt of state funds allocated for local streets and roads or
the county road fund, including that resulting from the receipt of
funds pursuant to the Highway Safety, Traffic Reduction, Air Quality,
and Port Security Bond Act of 2006 (Chapter 12.49 (commencing with
Section 8879.20) of Division 1 of Title 2 of the Government Code) for
local street and road maintenance and operations, during the period
of the deferrals of apportionment payments pursuant to subdivision
(a). The use of this cash shall not be considered as an expenditure
of bond act funds if the cash is replaced when the payments in
subdivision (a) are made.
(c) Notwithstanding any other provision of law, for the purpose of
meeting the cash obligations associated with ongoing street and road
costs, a city, county, or city and county may make use of any cash
balance available to a special fund of the city, county, or city and
county during the period of deferral of apportionment payments
pursuant to subdivision (a).
(d) This section shall not affect any requirement that an
expenditure is required to be accrued and reflected from the
appropriate funding source for which the money was received and that
an expenditure is required to meet all the requirements of its
funding source.
SEC. 8. The provisions of this act are severable.
If any provision of this act or its application is held invalid, that
invalidity shall not affect other provisions or applications that
can be given effect without the invalid provision or application.
SEC. 9. Nothing in this act shall be construed to
in any way interfere with, contravene, or limit the power, authority,
or duty of the Controller, Treasurer, or Director of Finance.
SEC. 10. This act addresses the fiscal emergency
declared by the Governor by proclamation on January 8, 2010, pursuant
to subdivision (f) of Section 10 of Article IV of the California
Constitution.
SEC. 11. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
Due to the projected insufficient cash balance in late March or
early April of this year, it is necessary to defer certain payments
so that all other General Fund payments can be made.
SECTION 1. It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2009.
SEC. 2. This act addresses the fiscal emergency
declared by the Governor by proclamation on January 8, 2010,
pursuant to subdivision (f) of Section 10 of Article IV of the
California Constitution.