Amended in Assembly March 19, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 338

Introduced by Assembly Member Roger Hernández

February 13, 2015

An act to begin delete amend end delete begin insert add end insert Section begin delete 130001 of end delete begin insert 130350.7 to, end insert the Public Utilities Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

AB 338, as amended, Roger Hernández. begin delete County transportation commissions: Los Angeles County. end delete begin insert Los Angeles County Metropolitan Transportation Authority: transactions and use tax. end insert

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Existing law authorizes the Los Angeles County Metropolitan Transportation Authority (MTA) to impose, in addition to any other tax that it is authorized to impose, a transactions and use tax at a rate of 0.5% for the funding of specified transportation-related projects and programs, subject to various requirements, including the adoption of an expenditure plan and voter approval. Existing law authorizes the MTA to seek voter approval to extend the transactions and use tax pursuant to an amended ordinance, subject to various requirements, including adoption of an amended expenditure plan that, among other things, updates certain cost estimates and identifies expected completion dates for projects and programs under the previous expenditure plan, and also requires the amended expenditure plan to be included in an updated long range transportation plan, as specified.

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This bill would authorize the MTA to impose an additional transportation transactions and use tax at a rate of 0.5%, for a period not to exceed 30 years, subject to various requirements, including the adoption of an expenditure plan and voter approval.

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The Transactions and Use Tax Law limits to 2% the combined rate of all transactions and use taxes imposed in any county, with certain exceptions.

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This bill would exempt the transactions and use tax authorized by the bill from this limitation.

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The County Transportation Commissions Act provides for the creation of county transportation commissions with specified powers and duties in the southern California region, including Los Angeles County. The act makes various legislative findings regarding the transportation needs of the region.

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The bill would make an additional legislative finding that transportation resources should be equitably distributed within Los Angeles County.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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begin insert The Legislature finds and declares all of the
following: end insert

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(a) Various economic studies have shown that the biggest burden
on family incomes is the cost of housing and transportation. These
two variables greatly affect the quality of life for Californians.

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(b) Los Angeles County voters have recognized the importance
of investing in a transportation network that is responsive to the
needs of commuters and transit users and that facilitates the
movement of goods in the region. Los Angeles County has three
existing voter-approved sales tax measures for transportation
projects administered by Los Angeles County Metropolitan
Transportation Authority (MTA).

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(c) In 1980, voters in Los Angeles County approved Proposition
A, a sales tax of one-half of 1 percent on most retail sales in Los
Angeles County. The MTA returns 25 percent of Proposition A
proceeds to the cities in Los Angeles County for transportation
purposes. Thirty-five percent of Proposition A proceeds is required
to be used for rail development while the remaining 40 percent is
for discretionary purposes. Almost all of the discretionary portion
is used to fund bus service provided by the MTA and 16 other
municipal bus operators within Los Angeles County. The collection
of the sales tax is ongoing.

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(d) In 1990, voters in Los Angeles County approved Proposition
C, an additional sales tax of one-half of 1 percent on retail sales
in Los Angeles County. The MTA returns 20 percent of Proposition
C proceeds to the cities in Los Angeles County for transportation
purposes. Forty percent of the Proposition C proceeds is required
to be used for construction and operation of the bus transit and
rail system, 5 percent to expand rail and bus security, 10 percent
for commuter rail, and construction of transit centers, park and
ride lots, and freeway bus stops, and 25 percent for transit-related
improvements to freeways and state highways. The collection of
the sales tax is ongoing.

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(e) Most recently, voters in Los Angeles County approved
Measure R in 2008. Measure R is an ordinance authorizing an
additional sales tax of one-half of 1 percent to fund traffic relief
and rail expansion according to an expenditure plan contained in
the ordinance. Measure R became effective July 1, 2009, and will
remain in effect for 30 years.

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(f) MTA has been entrusted with the responsibility and has the
voters’ confidence that it will protect and use the sales tax funding
responsibly and according to the rules approved by the voters.

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begin insert SEC. 2. end insert   

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begin insert Section 130350.7 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

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begin insert 130350.7. end insert   

(a) The Los Angeles County Metropolitan
Transportation Authority (MTA), in addition to any other tax it is
authorized to impose or has imposed, may impose a transactions
and use tax at the rate of 0.5 percent, for a period not to exceed
30 years, that is applicable in the incorporated and unincorporated
areas of the County of Los Angeles.

(b) The ordinance imposing the tax shall contain all of the
following:

(1) An expenditure plan that lists the transportation projects
and programs to be funded from net revenues from the tax. The
expenditure plan shall appear in the ordinance as an exhibit. The
expenditure plan shall include measures that ensure net revenues
are shared equitably between regions of the county.

(2) Provisions conforming to the Transactions and Use Tax
Law (Part 1.6 (commencing with Section 7251) of Division 2 of
the Revenue and Taxation Code), except as otherwise provided in
subdivision (f).

(3) A provision limiting the MTA’s costs of administering the
ordinance and the net revenues from the tax to 1.5 percent of the
total tax revenues.

(4) A requirement that the net revenues from the tax, defined to
mean the total tax revenues less any refunds, costs of
administration by the State Board of Equalization, and the MTA’s
administration costs, shall be used by the MTA to fund
transportation projects and programs identified in the expenditure
plan.

(5) A requirement that the MTA, during the period that the
ordinance is operative, allocate ____ percent of all net revenues
derived from the tax for bus operations. These revenues shall be
allocated to all eligible and included municipal transit operators
in the County of Los Angeles and to the MTA, in accordance with
Section 99285. However, the allocations to the MTA and eligible
and included municipal operators shall be made solely from
revenues derived from a tax imposed pursuant to this section, and
not from local discretionary sources. Funds allocated by MTA to
itself pursuant to this section shall be used for transit operations
and shall not supplant funds from any other source allocated by
MTA to itself for public transit operations. Funds allocated by
MTA to the eligible and included municipal operators pursuant
to this section shall be used for transit operations and shall not
supplant any funds authorized by other provisions of law and
allocated by MTA to the eligible and included municipal operators
for public transit. In addition to this amount, the MTA shall
allocate ____ percent of all net revenues derived from the tax for
rail operations.

(c) The MTA shall notify the Legislature prior to the adoption
of amendments to the adopted expenditure plan.

(d) The ordinance shall be adopted by the MTA board, which
shall also adopt a resolution that submits the ordinance to the
voters.

(e) The ordinance shall become operative pursuant to Section
130352 if approved by two-thirds of the voters voting on the
measure, pursuant to subdivision (d) of Section 2 of Article XIII
C of the California Constitution.

(f) The MTA may incur bonded indebtedness payable from the
net revenues of the tax pursuant to the bond issuance provisions
of this chapter and any successor act.

(g) The tax authorized by this section shall be imposed pursuant
to the Transactions and Use Tax Law (Part 1.6 (commencing with
Section 7251) of Division 2 of the Revenue and Taxation Code),
notwithstanding the combined rate limitation in Section 7251.1 of
the Revenue and Taxation Code.

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SECTION 1.  

Section 130001 of the Public Utilities Code is
amended to read:

130001.  

The Legislature hereby finds and declares that:

(a) Public demand for an efficient public transportation system
in the southern California region resulting from population sprawl,
the concentration of many transit dependent citizens in the large
urban areas, and increasing mobility requirements indicates a need
for improved, as well as more innovative, policy and
decisionmaking institutions to resolve these problems.

(b) A basic purpose of transportation policy within the region
should be to avoid undesirable duplication of transportation
services, achieve the operation of a coordinated and integrated
transportation system which will reduce automobile usage and
dependency, reduce the consumption of scarce and expensive
energy fuels, and reduce the levels of automobile-related air
pollution.

(c) Recognizing the scarcity of resources available for all
transportation development, the commissions shall give priority
to low-cost highway and transit improvements, and shall work
toward maximizing the effectiveness of existing resources available
to the commissions.

(d) Recognizing the importance of the state highway system in
the Los Angeles metropolitan area to bus, automobile, and freight
transportation, it is necessary to maintain this highway system at
least at its present operating standards and to increase the
person-moving capability of this system by such methods as
carpooling, improved traffic operations, exclusive busways, and
fringe parking facilities.

(e) Recognizing the geographic diversity and transportation
needs in Los Angeles County, transportation resources should be
equitably distributed within the county.

(f) The transportation system should offer adequate public
transportation to all citizens, including those immobilized by
poverty, age, physical handicaps, or other reasons.

(g) The cities and local communities acting singly or jointly
should be given more responsibilities for designing and providing
local transit services to improve the responsiveness of public transit
to public needs.

(h) The transportation decisionmaking process should be
responsive to public values, and provide for the continuing
involvement of the public in the preparation, revision, and
discussion of transportation plans and services.

(i) Transportation planning should recognize that transportation
systems have significant effect on the physical and socioeconomic
characteristics of the areas served, and emphasis should be given
to the protection and enhancement of the environment and the
restoration of blighted neighborhoods near community centers.
Los Angeles County, in particular, is a multicentered area with
diverse socioeconomic levels and travel patterns, and a majority
of the trips in the county are four miles or less.

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