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Bill Title: Riverside County Transportation Commission: transaction and use tax.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2023-10-08 - Chaptered by Secretary of State - Chapter 578, Statutes of 2023.
[AB1385 Detail]Download: California-2023-AB1385-Amended.html
Amended
IN
Assembly
March 23, 2023
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CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 1385
Introduced by Assembly Member Garcia
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February 17, 2023 |
An act to amend Section 99268.3 240306 of the Public Utilities Code, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 1385, as amended, Garcia.
Local transportation funds: transit operators. Riverside County Transportation Commission: transaction and use tax.
Existing law creates the Riverside County Transportation Commission with specified powers and duties relative to transportation planning and programming in the County of Riverside. Existing law authorizes the commission to impose a transactions and use tax for transportation purposes subject to approval of the voters, which, pursuant to the California Constitution, requires approval of 2/3 of the voters. Existing law limits the commission to a 1% maximum tax rate, and requires the commission’s tax or taxes to be levied at a rate divisible by 1/4%, unless a different rate is specifically authorized by
statute.
This bill would raise the maximum tax rate the commission may impose from 1% to 1.5%.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Riverside.
Existing law provides various sources of funding to public transit operators. Under the Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, revenues from a 14% sales tax in each county are available, among other things, for allocation by the transportation planning agency to transit operators, subject to certain financial requirements for an operator to meet in order to be eligible to receive funds. Existing law sets forth alternative ways an operator may qualify for funding, including a standard under which the allocated funds do not exceed 50% of the operator’s total operating costs, as specified, or the maintenance by the operator of a specified farebox ratio of fare revenues to operating costs. Existing law establishes the required farebox ratio as 20% in
urbanized areas and 10% in nonurbanized areas.
This bill would make a nonsubstantive change to the provision relating to operator eligibility in urbanized areas based on the farebox ratio.
Digest Key
Vote:
MAJORITY
Appropriation:
NO
Fiscal Committee:
NO
Local Program:
NO
Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 240306 of the Public Utilities Code is amended to read:240306.
(a) The commission, subject to the approval of the voters, may impose a maximum tax rate of 1 1.5 percent under this division and the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code). The commission shall not only levy a tax or multiple taxes at a rate other than 1 percent, or three-quarters, one-half, or one-quarter of 1
that is a multiple of 0.25 percent, unless a different rate is
specifically authorized by statute. Neither this division nor the ordinance shall affect any tax otherwise authorized.(b) Notwithstanding Section 7251.1 of the Revenue and Taxation Code, the tax rate authorized pursuant to this section shall not be considered for purposes of the combined rate limit established by that section.
(c) The tax rate adopted pursuant to this chapter, unless otherwise prohibited, may be increased by the commission by ordinance adopted in the manner and by the vote stated in Section 240301 and approved by two-thirds of the electors voting on the measure at an election called for that purpose by the commission.
SEC. 2.
The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the need to provide a local funding option to meet the transportation needs of the County of Riverside. SECTION 1.Section 99268.3 of the Public Utilities Code is amended to read:99268.3.(a)In the case of an operator that is serving an urbanized area, and that was eligible for funds under this article during the 1978–79 fiscal year even though not required to be in compliance with Section 99268 or that commenced operation after that fiscal year, the operator shall be eligible for those funds in any fiscal year, commencing with claims for the 1980–81 fiscal year, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth.
(b)In the case of an operator that is serving an urbanized area, and that was in operation during the 1978–79 fiscal year even though not then eligible for funds under this article, but that has since become eligible for those
funds, the operator shall be eligible for the funds in any fiscal year, commencing with the 1980–81 fiscal year, if it complies with either of the following requirements:
(1)The requirements of Section 99268.
(2)The requirements of subdivision (a).
