07. Local taxpayer, public safety, & transportation protection actCUPERTINO
SU1V[MARY
City Hall
10300 Torre Avenue
Cupertino, CA 95014-3255
{408) 777-3212
PAX: (408) 777-3366
OFFICE OF THE CI'T'Y MANAGER
Agenda Item No. ~ Meeting Date: February 2, 2010
Subject: Adoption of a Resolution suF~porting the League of California Cities Local
Taxpayer Protection Act of x;010
RECOMMENDATION
Adopt a resolution supporting the League of (~alifornia Cities initiative Local Taxpayer,
Public Safet)~, and Transportation Protection Act of 2010 and furthermore direct staff to
forward the resolution to the League of California Cities.
BACKGROUND
The State of California is currently facing one: of the most significant fiscal shortfalls ever and
has and will mast likely continue to rely on tl::e borrowing and taking of monies from local
governments unless an action is taken. Historically, California voters have repeatedly passed
separate ballot measures to stop state raids of local government funds (i.e. Proposition lA,
which was passed in 2004).
A coalition of local government, transportaticn and transit advocates recently filed a
constitutional amendment with the California Attorney General, called the Local Taxpayer,
Public Safety, a~ul Transportation Protection Act of 2010, for potential placement on
California's November 2010 statewide ballot. The approval of this ballot initiative will 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, transportation improvement projects and mass transit.
The Local Taxpayer, Public Safet)~ and Transportation Act of 2010 covers the following
provisions:
o Protects Locally Imposed Taxes szzch as Utility User Tax. Transient Occunanc
and Sales Taxes: The measure prevents the legislature from taking or directing
how these local taxes may be spent.
o Prosy Tax Borrowing: The measure repeals the State's authority to borrow local
property taxes.
o Reallocation of Property Tax or Vehicle License Fees: The measure prohibits the
State's ability to reallocate these revenues to pay off state mandates.
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February 2, 2010
o Borrowing or Stealing_Local Hi way User Tax Act (HUTA): The measure
provides protection to local highway user taxes and requires hearings and study
before state and local shares are changed.
o Borrowing or Stealing or Proposition 42 Gas Tax: The measure also provides the
same protection as HUTA taxes.
o Borrowing or Stealing Public Transit Account (PTA) funds: The measure restricts
the use of PTA funds only for transportation planning and mass transportation
purposes and requires "Spillover" sales tax to be deposited in transit accounts.
o Redevelopment Agencv (RDAI Funds: The measure prohibits taking, borrowing or
directing spending of RDA funds.
o Enforcement: The measure provides a remedy requiring the state to re-pay funds
taken illegally if a court so finds.
During the League of California Cities General Assembly at the League's Annual Conference
in September 2009, city officials from throughout California unanimously voted in support of
this measure.
At this time, League staff, in conjunction with their coalition partners, are working to lay the
groundwork for a successful signature gathering and fundraising effort for this measure to be
placed on the November 2010 ballot.
ALTERNATIVE ACTIONS
1. Do not adopt a resolution supporting the League of California Cities initiative Local
Taxpayer, Public Safety, and Transportation protectio~a Act of 2010.
2. Other action determined by the City Council.
FISCAL IMPACT
Adoption of this resolution has no direct fiscal impact on the City of Cupertino, but will
demonstrate support for this measure, which will prevent state legislators from continuing to
raid local government coffers and creating additional fiscal hardships for cities.
Approved for Submission to the
City Council:
~~:? avid W. Knapp
City Manager
Attachment A: Resolution
Attachment B: Local Taxpayer, Public Safety, and Transportation protection Act of 2010.
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Public and Environmental Affairs Director
ff t rtiach Mme' ft-
DRAFT
RESOLUTION NO 10-022
A RESOLUTION OF THE CUPERTINO CI'CY COUNCIL SUPPORTING THE LOCAL
TAXPAYER, PUBLIC SAFETY AND TRAN;;PORTATION 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 fue, 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 gov~:rnment services and transportation improvement
projects, the State Legislature has seized and borrow~:d 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 local government ;end 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 inroad 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 Attorn~:y 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 prev~t State politicians in Sacramento from seizing, diverting, shifting, borrowing, transferring,
suspending or otherwise taking or interfering with ta:t revenues dedicated to funding local government
services, including redevelopment, or dedicated to tr;~nsportation improvement projects and mass transit.
THEREFORE, BE IT RESOLVED that the City of C'.upertino formally endorses the Local Taxpayer,
Public Safety and Transportation Protection Act of 2{310, a proposed constitutional amendment.
BE IT FURTHER RESOLVED that we hereby authorize the listing of the Ciry of Cupertino 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 41 b.442.3510.
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Section one. Title.
This act shall be known and may be dted as the "Local Taxpayer, Pu61ic Safety, and
Transportatron Protection Act of 2010."
Section Two. findings and Declarations.
The people of the State of Calffomia 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 roam
care, public transit, and transportatwn improvements, California 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 loco! government services and
transportation improvement projects and services.
(c} Despite the fact that voters have repeatedly passed measures to prevent the State
ftom 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 other vital local services;
(2} Sought to take and barrow 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 ftom 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
government services and dedicated #o fundingtransportation improvement projects can cause
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severe consequences, such ~ layoffs of ponce,, lire and paramedic first responders, fire station
closures, healthcare cutbacks, decays in road s:~fety improvemerrts, public transit fare increases
and cutbacks in public transit services.
(f) State politicians in Sacramento have continued to ignore the wiM of the voters, and
current law provides no penalties when state F~oiftidans take or borrow these dedicated funds.
(g~ It is hereby resolved, that with appn~val of this ballot initiative, state politicians in
Sacramento shall be prohibited from seizing, diverting, shifting, borrowing, transferring,
suspend~g or otherwise taking or interfering uvith tax revenues dedicated to funding local
government services or dedicated to transportation improvement pro;etas and services.
Section Two and One-Half. Statement of PurF~ose.
The purpose of this measure is to concl~usivetyand completely prohibft state polftidans
in Sacramento from seizing, diverting, shifting, borrowing, transferring, suspending or
otherwise taking or Interfering with revenues tthat are dedicated to funding servkes provided
by local government or funds dedicated to transportation improvement pro/acts and services.
Section Three. Section 24 of Amide XIi1 of the California Constitution is hereby amended #o
read as fellows:
,(g~The Legislature may not impose taxes for local purposes but may authorize kxal
governments to impose them.
(6i The Legislature may not regJlgcate; transfer. borrow. aoarouriate. restrict the use
of. or otherwise use the proceeds Q~ arly tax imposed or levied by a local government solely for
the kcal rtovernment's ourooses.
j~ Money appropriated from state fu nds to a local government for Its local purposes
maybe used as provided bylaw.
~ Money subvened to a local government under Section ~S may be used for state or
local purposes.
Section Four. Section 23.5 of Artide XNI of they CaSfornia Constitution is hereby amended to
read as follows:
SEC. X5.5. (a) On or after November 3, 2i~4, tfie Legislature shag not enact a stal:u#e to
do any of the foaowing:
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(i) {A) Except as otherwise provided in wbparagraph (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 yearthe 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 of those revenues that would be
allocated among those agencies for the same fiscal year under the statutes In effect on
November 3, 21~. For purposes of this subparagraph, "percentage" does not indude any
propertytax revenues referenced in paragraph {2).
(B) In the 20D9-1Q fiscal year onl and except as otherwise
provided in subparagraph (C), subparagraph (Aj may be suspended forath~t fiscal year if ail 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 wbparagraph (A) fs necessary.
(ii) The Legislature enacts an urgenty statute, pursuant to a bill passed in each house of
the Legislature by rollcall vote entered ~ 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 iaterthan the effective date of the statute described in douse (ii), a statute is
enacted that provides for the full repayment to local agendes of the total amount of revenue
losses, including interest as provided bylaw, 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 follov~ing the fiscal year to whkh the
modification applies.
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{iv3 ,(~ A suspension of subparagraph (~~) 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 Iota! agencies within that
county for the fiscal year immediately preceding the fiscal year for which subparagraph (A) is
suspended.
(2j(Aj Except as otherwise provided in subparagraphs {Bj and (Cj, restrict the authority
of a city, county, or city and county to impose ~s 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 72{i0) of Division 2 of the Revenue and Taxation
Code, as that law read on November 3, 2004. 'lfre restriction imposed by this subparagaph 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.
(Bj The legislature may change by statute the method of distributing the revenues
derived under a use tax unposed pursuant to the Bradley-burns Uniform local Sales and Use
Tax Law to allow the State to partidpate in an interstate compact or to comply with federal law.
(Cj The Legislature may authorize by sta+tu#e two or more specifically identified bcal
agendas within a county, with the approval of 4:tte governing body of each of those agencies, to
enter into a contract to exchange allocations o1`ad valorem propertytax revenues for revenues
derived from a tax rate imposed under the Srartley-Sums Un;fornr ~ Sales and Use Tax Law.
Tile 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 derivecl.
{3) Except as otherwise provided in subparagraph {Cj of paragraph (2j, change for any
fiscal yearthe pro rata shares in which ad valorem property tax revenues are albcated among
local agendas in a county other than pursuant 1~o a bill passed in each house of the Legislature
by roil tali vote entered in the journal, twa-thirds of the membership canwrring. dig
Legislature shah nat chanr=e the p~,~ta shares of ad valorem propertv tax pursuant to this
paragraph, nor chance the allocation of the revenges described in Section IS of Article Xl~to
reimburse a local government when the Legislature or any state agency man_ dates a new
program or higher level of service on that local government. ~~
(4j Extend beyond the revenue exchange period, as defined in Section 7203.1 of the
Revenue and Taxation Code as that section tea+~ on November 3, 2004, the suspensron 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.
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(S} Reduce, during any period in whid~ 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.
(fi} 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.fi (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.
t7} Require a community redevebpment agency (A} to nay, remit. loan or otherwise
transfer, directly or indirectly, taxes on ad valorem real property and tangible aersona! property
allocated to the agen4Y pursuant to Section 16 of Article XVI to or for the benefit of the State.
any agency of the State. or any iurisdiction: or (B) to use, restrict, or assign a particular purpose
for such taxes for the benefit o#the Statg, any agency of the State, or anY~r isdiction, other
than (i} for making payments to affectgd taxing agencies pursuant to Sections 33607.5 and
33607.7 of Health and Safety Code or similar statutes reg~~ring such payments, as those
statutes read on January 1.2008; or (ii) forthe purooseo_f increasing, improving, and preserving
the supply of tow and moderate income housing av~il~ble at affordable housing cost.
(b} For purposes of this section, the fo~wing 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 Xlli 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.
(3) "lurisdiction"~ had ~,g same meaning as specified in SgStign 95 of the Revenue and
Taxation Code as that section read on November 3.2004.
Section Five. Article XIX of the Callfornta Constltutioe- is hereby amended to read as follows:
•SECTION 1. The Legislature shall not borrow revenue from the Highway Users Tax
Account, or its successor, and shalt not use these revenues for purnoses. or in ways, other than
t~iose speciRcalty 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, over and above the costs of collection and
any refunds authorized by law, shall be deposited into ~~lgb ghwav Users Tax Account (Section
2100 of the Streets and liirthw~a -s_Code) or its successor, which is hereby declared to be a trust
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fund, and shall be albcated monthiv in accordance with Section 4,,and shall used so I for the
following purposes:
{a) The research, planning, construction, improvemerrt, maintenance, and operation
ofi public streets and highways {and their relate=d pubiic facilities for nonmotarized traffic),
inciuding the mitigation of their enWronmental effects, the paymentfor 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 facilitties), inciuding the mitigation of their
environmental effects, the paymerrt for property taken or damaged for sud- purposes, the
administrative costs necessarily inwrred in they foregoing purposes, and the maintenance of the
structures and th'e 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 servkes.
SC-~~ 5,~,~,. Revenues from fees arrd taxes imposed by the State upon vehicles or
their use or operation, over and above the cosl:s of collection and any refunds authorized by
law, shall be used for the fopowing purposes:
(ay The state administration and enforcement of laws regulating the use, operation, or
registration of vehicles used upon the pubiic streets and highways of this State, including the
enforcement of traffic 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 speafied in Section ~ Z of this article.
S£i~ SEC. 4. ~a} E~cceat as provided in subdivision fb}. the iegisiai:afe~shaii~e~e
ra~agstatutory alleEetiert formulas jn
effect on June 30.2009 which allocate the revenues described in Section 2 to #eF ckies,
counties, and areas of the State shall remain in effect.
ib}The Leaisiature shall not modify the statutory allocations in effect on June 30, 2009
unless and until both of the followings have ocaarred:
~ ~ The LegrJslature determines in accordance with this subdivlsion that another basis
for ~n equitable, geographical, and jurisdictional distribution exi
.Any future
statutory revisions shall ,(Q) provide for the allocation of these revenues, together with other
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similar revenues, in a manner which gives equal consideration to the transportation needs of all
areas of the State and ail segmen#s of the population• and i3 a consistent with the orolerly
achievement of the adopted local, regional, and statewide goals for ground transportation in
local general plans, regional transportation plans, and the California Transportation Plarki
(2) The process descril~d in subdivision (c) has been oomoleted.
(c)The Legislature shaft not modify the statutory allocation gurs~ant to subdivision #'b)
until all ofthe following have occurred:
(1) The Cafifornia Transportation Commission has held no less than four pub~i~
hearings in different parts of the State to receive public input about the local and reaionaf goats
for around transportation in that part of the State:
(2) The California Transoortati,Qn Commission has published a report describing the
input received at the public hearingand howthe modification to the statutory allocation is
consistent with the orderly achievement of local, reaionaf. and statewide goals for around
transportation! in local general plans, regional transporta~ipn_plans. and the Califomia
Transportation Phan: and
(3) Ninety days have passed since the publication of the report by the California
Transportation Commission.
(d) A statute enacted by the Legislature mod~'ng.the statutory alloca#~ns must be by
a bill passed in each house of the Legislature by roll cal! vote entered in the iour~al. two-thirds
of the membership concurrin . grovi ed that the bill does not contain any other unrelated
provision.
Le,~'l,~e revenues allocated by statute to cities, counties. ~,~~afeas of the State
pursuant to this article may be used solely by the entity to which they are allocated. and solely
far the g~rooses described in Sections 2R Si or 6 of this article.
ifl 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 Accourit as a trust fund:
12) borrows. diverts, or appropriates these revenues for gumoses other than those described
in wbdivision (e): or (3) delays. defers. suspends, or otherwise interrupts the aavment.
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 ifl. 2Q09.
~SE6~4. SEC. 3. Revenues allocated pursuant to Section $ 4 may nat be expended for
the purposes specif'~ed in subdivision {b) 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
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such revenues in an election held throughout the county or cauMies, 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 ar 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 ~~.
g~3. 5EC ~., ~ ~ ye~e Uep to 25 percent of the revenues
deity-e~sea~yi~ by##e3t~er allocated to the State aursuant
to Section 4 for the purposes specified in subdivision (a} of Section ~ Z of this artkle may be
pledged or used by the State, upon ~ppnwal by the voters and approp~ition by the Leeislature.
for the payment of principal and interest on voi;er-approved bonds for such purposes issued
the State on and after November 2.201D #eFS4~-pareses.
fb) Up to 2S percent of the revenues allocated to an~ci~y or county pursuant to
Section 4 for the purposes specified in subdivision fa) of Section ~ of this artide may be pledged
or used only by any city or rnunri for the aavm~nt of arincipai and interest on voter-approved
bonds issued by that atv or counri for such,~urposes•
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SEC. 7. Ifthe Legislature reduces pr repeals the taxes described in Section 2 and
adopts an alternative source of revepue to replace the moneys derived from those taxes, the
replacement revenue shad be de,Qosited into the Hiahwav Users Tax Account. dedicated to the
purposes listed in Section 2, and. allocated to cities, counties, and areas of the State pursuant to
Section 4. Ali other provisions of this artide shall applvta any revenues adopted by the
Legislature to replapg~he moneys derived #rom t e taxes described in Seption 2.
Ste. SEC. $. This article shat{ 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.
~SE6.-8. SEC. 9. Notwithstanding Sections ~~ 2 and 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, may be used for local public park and recreational purposes.
SE6r-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 located in the coastal zone, may
authorize the transfer of such property, #or 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
Conservatbn Law of 2947, or to the State Coastal Conservancy for the preservation of
agricukural lands.
As used in this section, "coastal zone" means "coastal zone" as defined by5ection
30103 of the Public Resources Code as such zone is described on January 1,1977.
Section Sbc. Artide XIX A of the California Constitution is hereby amended to read as follows:
SECTION 1. (a) The legislature shall not borrow revenues from the. Public
Transportation Account. or any successor account. and shall not use these reverwes for
puroosesr, or in ways. other than thole speafically pemnitted by this art'rd~.
,{b1 The #n~i~e Aublic Transportation Account in the State Transportation Fund,
or any successor acwunt, is a trust fund. The Legislature may not chance the status of the
Public Transportation Account as a trust fund. F'unds~in the Pub is Trans~artation Account may
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not be loaned or otherwise transferred to the feral Fund or any other fund or account in the
State Treasury.
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(c) All revenues spedfied inparaaraphs (1}through (3}, inclusive. of subdivision (a} of
Section 7142 of the Revenue and Taxation Code as that section read on June 1, 2001, shall be
deposited no less than quarterly ir~io the Public: Trans ortation Account S coon 99310 of the
Public Utilities Code}, or its successor. The„~ I ur ma not take a action whkh
temporarily or permanently diverts or appropriates these es r r r h
those described in subdivision (d), or delays, defers. suspends. or otherwise interrupts the
quarterly deposit of these funds into the Public Trar~sport
(d) Funds in the Public Transportation Account ma atio~ Account.
y only be used for transportation
planning and ma ss transportation purposes. The revenue s described in subdivision (c)are
hereby continuo usly ap propriated to the Contr+~Il r wi re rd to fisca ears for allocation
as follows•
Vii) Fifty
percent
pursuant to subdivisions (a} throu
gh [fl, inclusive. of Section 99315 of
the Pubik Utiliti
~~ Twen es Code
ty five p . as that section read on July 34.2009.
ercent pursuant to subdivision {b} of Section 99312 of the Public
Utilities Code, as
(3) Twen, that se
~y ction read on lulu 30.2i~,
r~grlt pursuant to subdivision (c}
of Section 99312 of the Public
Utilities Cody. as that se ction read on July 34, 2,709.
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Ie} For purposes of paragraph ~1j,of subdivision (d). "transportation plannina~ means
onlvthe purposes described in subdivisions (c} through (fl. inclusive, of Section 99315 of the
Public icltilities Code. as #hat section read an ulv 30.2009.
(fl For pumoses of this article "mass transportation," "public transit." and "mass
transit" havethesame meaniriq,~s,_"public transportation ~ "Public transportation" means:
(1)(A1 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 disabilitie or the elderly: (B) operated by buss
rail, ferry, or other conveyance on a fixed route, demand response. or otherwise regularly
available basis (Cl generally for whiff a fare is dtarAed; and (Dl provided by anvtransit district.
included transit district, munidpal operator, included m nici~ nal operator, eligible rnunitiaal
operator. or transit development board,. as those terms were defined ip Article 1 of Chapter 4 -
of Part 11 of Division 10 of the Public Utilities Code on January 1.2009. a ioint powers authority
forme~,to provide mass transportation services. an agency described in subdivis~n (fl of
Section 15975 ofthe Government Code, as that section read on January i. 2009, any recipient
Section 332353.1 of the_P~blit Utilities Cody, as that section read on January L 2009.
(2}Surface transportation service provided bvthe Department ofTransportation
pursuant to subdivision (al af~ctio0 9~,~15 of the Public Utilities Code, as that section read on
July 30.2009.
(3) Publictransit capi~f;mprovement nroiects. inc~ud~ngthose identified in subdivision
lbLQf,~ii. on 99315Sf t~e,public UtiFities Code, as that s~c„~on read on .lulu 30.2009.
5EC. 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.
(bj Aq local transportation funds are hereby designated trust funds, The Legislature
may not change the status of local transportation funds as trust funds.
- (c) A local transportation fund that has been created pursuant to law may not be
abolished.
(dj Money in a local transportation fund shah be albcated only bvthe local
government that created the fund. and only for the purposes authorized under Article 11
(commenting with Section 29530) of Chapter 2 of Division 3 of Title 3 of the Government Code
and Chapter 4 (commenting with Section 99200) of Part 11 of Division i0 of the Publk Utilities
Code, as those provisions existed on Cktober 1,1997. Neither the county nor the Legislature
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may authorize the expenditure of money in a I~xal transportation fund for purposes other than
those specified in this subdivision.
fie) This section constitutes the sole method of aliocatintz. distributinrt and usingthe
revenues in a local tran~Aprtation fund, The purposes described in subdivision (d) are the sole
purnases for which the revenues in a local transportation fund m,~y be used. The Lealslature
may not ehact a statute or take anmother action which. permanently or temporarily, does anv
of the following:
~) Transfers, diverts, or appropriates tFie revenues in a local transportation fund for anv
other puroose thaO,.tF~o~e described in subdivision d
,~2) Authorizes the expenditures of the revenue in a locai~ransportation fiord for anv
other purposethan those described in subdivision d
(3) Borrows or loans the revenues in a kxal transportation fund, re rdiess of .ether
these revenues remain in the Retail Sales Tax Fiord in the State Treasury or are transferred to
anotherfund or account.
jQ The percentage of the tax imposedpursuant to section 7202 of the Revenue and
Ta~~ion _t~,~8,alg~ t~f~l transportation funds shall not be reduced below tag
percentage that was transmitted to such funds during the 2008 calendar year. Reyenugs
allocated to local tr~n,~AOrtation 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, a:: those sections read on June 30.2009.
Section Seven. Article XIX B of the California Constitution is hereby amended to read as
follows:
SECTION 1. The Legislature shai~,not bo:mow revenues from tfie Transportation
Investmg:Jt Fund, or its successor and shall not use these revenues for pumose . o~in watisj
other than those specificaliv oenni~gd by this zFrticle.
SEC. Z. (a) For the 2003-0~4 fiscal year and each fiscal yearthereafter, ail y5
revenues that are collected during the fiscal ye~:r from taxes under the Sales and llse Tax Law
(Part 1(commencing with Section 6001) of I)ivi:cion 2 of the Revenue and Taxation Code), 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 titre Motor Vehicle Fuel Llcen~,g Tai, ~w (Pa~,2
icommencin~z with Section 7301] of Division 2 of the Revenue. and Taxation Code). aat<~e
uan#~hai:~iaw7 shall be •-~~~~--~a •~
deposited into the Transportation Investment Fund cr its successor, which is hereby created fn
].2
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a.
the State Treasury and which is herebv declared to be a trust fund= The Leaisla#ure may not
chance the status of the Transportation Investment Fund as a trust fund.
(b}(1~ For the 20p3-tS4 to 2007-08 fiscal years, indusive, 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.
(2} 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 albcated as follows: f i) Twenty-fhre percent aursuarrt to
subdivision fb) of Section 9931 of the Public Utilities CodeM1 ~s that section read 4i? July 30.
20Q9: Iii) Twenty-five percent pursuant ~o subdivision (4} of Section 99312 of the Public Utilities
Cade. as that section read an July 30.2009; and fill) Fifty ggrcent for the purposes of
subdivisions fa) and Ibl of Section 993!5 of the Public Utilities Code. as that section read on July
K~~~~~~~
(B}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 ci#ies, including a city and county.
(Dj 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 herebv continuously appropriated to the Controller
without regard to fiscal years, 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}.
(6} Forty percent of the moneys for the purposes set forth in subparagraph (B} of
paragraph (Z} of subdivision (b}.
(C} Twenty percent of the moneys for the purposes set forth in subparagraph (C} of
paragraph (2} of subdivision (b},
(0) Twenty percent of the moneys for the purposes set forth in subparagraph (D} of
paragraph (2j of subdivision (b}.
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',Siege
4e}~ The Legislature may not enact a statute that modifies the percentage shares set
forth in subdivision (cj
".y~e~r,~l~ivlsie~{~#-until all o~ tag followine have
oau
t11 The Calffornia Transportation mrnission has held no less than four public hearings
in different parts of the State to receive public input about the need fo,~ public transft;mass
transportation. tr~nsportatiQ,~e~pital imflLQvement protects. and street and hiAhway
maintenance•
I2}The California Transportation Commission has published a resort describing the
input received at the public hearings and how t1~e modifkation to the statu#orv allocation is
7.4
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consistent with the orderh- achievement of local, regional and statewide goals for public transit.
mass traRSpartation, transaortatio~caaital improvements. and street and highway
maintenance in a manner that is consistent with local general plans. regional transportation
plans, and the California Transportation Plan;
~3,~inety days have sassed since the publication of the resort by the California
Transportation Commission.
{4) The statute enacted by the Legislature aursuant to this sub 1Liyision must be by a bill
passed in each house of the Legislature by ro(I tail vote entered in the iournal, two-thirds of the
membership concurrin~t, arovided that the bil( does not contain anv other unrelated provision
and that the revenues described in subdivision tat are expended solely forthe aurooses set
forth in paragraph t2i of subdivision {bl.
~ ~(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 ofa suspension of transfer of revenues pursuant to this section as it read
on January 1, 2006, but exduding the amount to be paid to the Transportation Deferred
investment Fund pursuant to Section 63()48.65 of the Government Code, shall be transferred
from the General Fund to the Transportation investment Fund na later than lone 30, 2016.
Until this total amount has been transferred, the amount of transfer payments to be made in
each fiscal year shall oat be less than one-tenth of the total amount required to be transferred
by June 30, 2016. The transferred revenues shall be aibcated 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 appl'gable, that are secured by the minimum transfer payments required by
paragraph (1). Proceeds from the sale of those bonds shall be albcated solely for the purposes
set forth in this section as if they were revenues subject to allocation pursuant to paragraph (2)
of subdivision (b).
(fl This section constitutes the sole method of allocating. distributing, and using the
revenues described in subdivision {a). The purooses described in paragraph (21 of subdivision
(b) are the sale puroases for whkh the revenues described in subdivision tat may be used. The
Legislature may oat enact a statute or take anv other action which, permanently or temaorariht.
does amr ~f the following:
(il Transfers. diverts. or appropriates the revenues described in subdivision {a) for anv
other purposesthan those described inparaara h (2l f subdivision {bl:
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{2) Authorizes the expenditures of tFje r venu ribed in subdivi n a for an
other purposes than those described in paragraph {2) of subdivision 1b) or,
~~i~orrows or loans the revenues described in s~b~ivisian (al, regardless of w~iether
these revenues remain in the Transportation lrnrestmen# Fund or are transferred to ano#her
fund or account such as the Public ~'ransportation Account a trust fund in the State
Transportation Fund.
(a) For purooses of this article, "mass transportation," upubiic transit" and "mass
transitp have the same meanings as "public,transportation." "Public transportation" means:
111{Al Surface #ransportation service an~vided to the general public, comalementarv
paratransit service provided to persons with disabilities as repaired by 42 U.S.C. 12143. or
similar transportation provided to peoale with disabilities or t i r 6 o erated bus
rail, ferry. or other conveyance on a fixed routE~, demand response, or otherwise regularly
available basis: [C) generally for whid- a farg is charged: and 1D1 pfvided by any transit district.
included transit district. municipal operator, included municipal operator, eligible municipal
opelat~r. or trapsit development board, as those terms were defined in Article 1 of Chapter 4
of Part 11 of Division 10 of the Pub~~Utilities Code on January 1.2009, a ioint powers authority
formed to provide. mass transportation service>, an aaenty described in subdivision (fl of
Section 15975 of the Government Code. as tfia~~on read on lanuarv 1.2009. any redpient
of funds under Sections X9260, 99260.7.99275, or subdivision (c} of Section 99400 of the Public
Utilities Code. as #hose sections read on lanuarv 1, 2009, or a consolidated agency as defined in
Section 132353.1 of the Public Utilities Code, as that section read on lanuarv 1, 2009.
(2) Surface transportation service provided by the Qeaartment of Transportation
aursuant to subdivision 1a1 of Section 99315 of the Public Utilities Code, as that section read on
July,30, 2009.
(3~ Public transit capital irinproveme0# pr~Qiects. including those identi#ied in subdivision
1b1 of Se lop ~~315 of the Pub~rc ~ltjli~ies Code. as that section read on July 30.2009.
(h) If the Leais~,~ture 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 #o
the purposes listed in paragraph 121 of subdivision {b). and allocated pursuar-t to subdivision 1c).
Ali other provisions of this article shah apply to any revenues adopted by the Legislature to
replace the moneys derived from the taxes des~xibed in subdivision {a),
Section Eight. Article XIX C is hereby added to the Constitution to read as follows:
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SECTIQN 1. if any challenge to invalidate an action that violates Articles XIX, XIX A, or
XIX 8 of the California Constitution is successfu l either by way of a final judgment, settlement,
or resolution by administrative or legislative action, there is hereby corrtinuously appropriated
from the General Fund to the Controller, without regard to fiscal years, that amount of revenue
necessary to restore the fund or acawnt from which the revenues were unlawfullytaken 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 2~ or Section 25.5 of
Article XIII of this Constitution is successful either by way of a final judgmenrt, settlement, ar
resolution 6y administrative or legislative action, there is hereby corrtinuaisly 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 aaxue to the amourrts required to
be restored pursuant to this section. Within thirty days from the date a chagenge is successful,
the Controller steal! 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 agenry of the '
State, or any other taxing jurisdiction, Instead of to the redevelopment agenry. The Legislature
has been illegally circumventing Section 16 of Article XVI in recent years by requiring
redevelopment agenciesto 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.
Section Ten. Con#inuous Appropriations.
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The provisions of Sections 6, 7, and 8 o'i` this Act that require a continuous appropriation
to the Controller without regard to frscal year pare intended to be "appropriations made by law"
within the meaning of Section 7 of Article XVi of the California Constitution.
Section Eleven. Liberal Construction.
The provisions ofthis Act shall be liberaiily construed in order to effectuate its purposes.
Section Twelve. Conflating Statutes.
Any statute passed by the legislature between October 21, 2009 and the effective date
ofthis measure, that would have been prohibited i€this measure were in effect on the date it
was enacted, is hereby repeated.
Seaton Thirteen. Conflicting Ballot Measures..
In the event that this measure and another measure or measures relating to the
direction or redirection of revenues dedicated 1:o 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 prev~all in their entirety, and the provisions of the
other measure or measures shall be null and void.
Seaton Fourteen. Severabillty.
st is the intent of the People that the provisions ofthis Act are severable and that if any
provision ofthis Act or the applicat~n thereof to any person or circumstance, is head invalid,
such invalidity shall not affect any other provisi~~n or application ofthis Act which can be given
effect without the invalid provision or application.
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