Bill Text: CA AB1756 | 2017-2018 | Regular Session | Introduced
Bill Title: Transportation funding.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2018-01-16 - Referred to Com. on TRANS. [AB1756 Detail]
Download: California-2017-AB1756-Introduced.html
Assembly Bill | No. 1756 |
Introduced by Assembly Member Brough (Coauthor: Assembly Member Harper) |
January 04, 2018 |
LEGISLATIVE COUNSEL'S DIGEST
Digest Key
Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 14033 of the Government Code is repealed.On or before January 1, 2018, the department shall update the Highway Design Manual to incorporate the “complete streets” design concept.
SEC. 2.
Section 14110 of the Government Code is repealed.Consistent with federal and state laws and regulations, including, but not limited to, the department’s goal setting methodology as approved by the Federal Highway Administration, the department shall develop a plan by January 1, 2020, to increase by up to 100 percent the dollar value of contracts and procurements awarded to small businesses, disadvantaged business enterprises, and disabled veteran business enterprises. The plan shall include the use of targeted media, including minority and women business enterprises, to outreach to these businesses and shall be provided to the Legislature pursuant to Section 9795.
SEC. 3.
Chapter 5 (commencing with Section 14460) of Part 5 of Division 3 of Title 2 of the Government Code is repealed.SEC. 4.
Section 14526.5 of the Government Code is amended to read:14526.5.
(a) Based on the asset management plan prepared and approved pursuant to Section 14526.4, the department shall prepare a state highway operation and protection program for the expenditure of transportation funds for major capital improvements that are necessary to preserve and protect the state highway system. Projects included in the program shall be limited to capital improvements relative to the maintenance, safety, operation, and rehabilitation of state highways and bridges that do not add a new traffic lane to the system.(A)Project approval and environmental documents, support only.
(B)Plans, specifications, and estimates, support only.
(C)Rights-of-way.
(D)Construction.
(2)The department shall specify, for each project in the state highway operation and protection program, a projected delivery date for each of the following components:
(A)Project approval and environmental document completion.
(B)Plans, specifications, and estimates completion.
(C)Right-of-way certification.
(D)Start
of construction.
(f)As part of the commission’s review of the program required pursuant to subdivision (a), the commission shall hold at least one hearing in northern California and one hearing in southern California regarding the proposed program.
(g)On or after July 1, 2017, to provide sufficient and transparent oversight of the department’s capital outlay support resources composed of both state staff and contractors, the commission shall be required to allocate the department’s capital outlay support resources by project phase, including preconstruction. Through this action, the commission will provide public
transparency for the department’s budget estimates, increasing assurance that the annual budget forecast is reasonable. The commission shall develop guidelines, in consultation with the department, to implement this subdivision. Guidelines adopted by the commission to implement this subdivision shall be exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1).
(h)Beginning July 1, 2017, for a project that experiences increases in capital or support costs above the amounts in the commission’s allocation pursuant to subdivision (g), the commission shall establish a threshold for requiring a supplemental project allocation. The commission’s guidelines adopted pursuant to subdivision (g) shall also establish the threshold that the commission determines is necessary to ensure efficiency and may provide exceptions as necessary so that projects are not unnecessarily delayed.
(i)The department, for each project
requiring a supplemental project allocation pursuant to subdivision (h), shall submit a request to the commission for its approval.
(j)
SEC. 5.
Section 14526.7 of the Government Code is repealed.(a)The department shall incorporate the performance targets in subdivision (n) of Section 1 of the act adding this section into the asset management plan adopted by the commission and targets adopted by the commission pursuant to Sections 14526.4 and 14526.5. The asset management plan shall also include targets adopted by the commission in consultation with the department for each asset class included in subdivision (n) of Section 1 of the act adding this section to measure the degree to which progress was made towards achieving the overall 2027 targets. Targets may be modified by the commission as needed to conform to federal regulation on performance measures and the completion of the department’s asset management plan. Nothing in this section precludes the commission from adopting additional targets and
performance measures pursuant to paragraph (1) of subdivision (c) of Section 14526.4.
(b)As specified by guidelines adopted by the commission, the department shall report to the commission on its progress toward meeting the targets and performance measures established for state highways pursuant to subdivision (n) of Section 1 of the act adding this section and paragraph (1) of subdivision (c) of Section 14526.4.
SEC. 6.
Section 14556.41 of the Government Code is repealed.As of June 30, 2017, projects in Section 14556.40 for the Traffic Congestion Relief Program shall be deemed complete and final, and funding levels shall be based on actual amounts requested by the designated lead applicant pursuant to Section 14556.12. Projects without approved applications in accordance with Section 14556.12 shall no longer be eligible for program funding. Traffic Congestion Relief Program savings shall be transferred to other transportation accounts for the purposes specified in Section 16321.
SEC. 7.
Section 16321 of the Government Code is repealed.The amount of outstanding loans made pursuant to Section 14556.8 is seven hundred six million dollars ($706,000,000). This amount shall be repaid from the General Fund pursuant to subdivision (c) of Section 20 of Article XVI of the California Constitution no later than June 30, 2020, and upon repayment of this amount all loans authorized pursuant to Section 14556.8 and any associated interest shall be deemed repaid. The loans shall be repaid proportionately and in equal installments over three years. The Department of Finance shall prepare a loan repayment schedule, pursuant to which the outstanding loans shall be repaid by June 30, 2020, as follows:
(a)Two hundred fifty-six million dollars ($256,000,000) for transfer to the Public Transportation Account, to be
allocated as follows:
(1)Up to twenty million dollars ($20,000,000) to local and regional agencies for climate change adaptation planning.
(2)The remainder to the Transit and Intercity Rail Capital Program as authorized in Part 2 (commencing with Section 75220) of Division 44 of the Public Resources Code.
(b)Two hundred twenty-five million dollars ($225,000,000) for transfer to the State Highway Account, for the State Highway Operation and Protection Program.
(c)Two hundred twenty-five million dollars ($225,000,000) is hereby continuously appropriated without regard to fiscal year to the Controller for apportionment to cities and counties for local streets and roads pursuant to the formula in paragraph (3) of subdivision (a) of Section 2103 of the
Streets and Highways Code.
SEC. 8.
Section 63048.65 of the Government Code is repealed.(a)Prior to July 1, 2015, three hundred twenty-one million dollars ($321,000,000) of the one billion two hundred million dollars ($1,200,000,000) of loans from the Traffic Congestion Relief Fund to the General Fund was repaid using tribal gaming compact revenues. In 2016, an additional one hundred seventy-three million dollars ($173,000,000) was repaid from the General Fund.
(b)The remaining seven hundred six million dollars ($706,000,000) of loans from the Traffic Congestion Relief Fund to the General Fund shall be repaid pursuant to Section 14556.8.
SEC. 9.
Section 63048.65 is added to the Government Code, to read:63048.65.
(a) Upon a filing by the Director of Finance with the bank of a list of designated tribal compacts and the specific portions of the compact assets to be sold, the bank may sell for, and on behalf of, the state, solely as its agent, those specific portions of the compact assets to a special purpose trust. To that end, a special purpose trust is hereby established as a not-for-profit corporation solely for that purpose and for the purposes necessarily incidental thereto. The bank may enter into one or more sales agreements with the special purpose trust on terms it deems appropriate, which may include covenants of, and binding on, the state necessary to establish and maintain the security of the bonds and exemption of interest on the bonds from federal income taxation. The portion of the compact assets to be sold shall be an amount or amounts determined by the Director of Finance that are necessary to provide the state with net proceeds of the sale, not to exceed one billion five hundred million dollars ($1,500,000,000), exclusive of capitalized interest on the bonds and any costs incurred by the bank or the special purpose trust in implementing this article, including, but not limited to, the cost of financing one or more reserve funds, any credit enhancements, costs incurred in the issuance of bonds, and operating expenses. Those specific portions of the compact assets may be sold at one time or from time to time.SEC. 10.
Section 63048.66 is added to the Government Code, to read:63048.66.
(a) Notwithstanding Section 63048.65 or any other provision of this article, compact assets that are subject to designation by the Director of Finance for sale pursuant to subdivision (a) of Section 63048.65 and that are timely deposited or are due for deposit in the Special Deposit Fund on or after July 1, 2008, and on or before June 30, 2016, shall not be available for the purpose of Section 63048.65.SEC. 11.
Section 63048.67 is added to the Government Code, to read:63048.67.
The loans made from the State Highway Account through the Traffic Congestion Relief Fund to the General Fund that are referenced in clause (i) of subparagraph (A) of paragraph (1) of subdivision (c) of Section 63048.65 are hereby determined to have been from weight fee revenues in the State Highway Account fund balance. Any repayments made to the State Highway Account pursuant to subdivision (e) of Section 63048.65, upon transfer of those funds to the State Highway Account, shall be immediately transferred by the Controller from the State Highway Account to the Transportation Debt Service Fund for use pursuant to Section 16965.SEC. 12.
Section 63048.7 is added to the Government Code, to read:63048.7.
Notwithstanding any other provision of this division, Article 3 (commencing with Section 63040), Article 4 (commencing with Section 63042), and Article 5 (commencing with Section 63043) do not apply to any bonds issued by the special purpose trust established by this article. All matters authorized in this article are in addition to powers granted to the bank in this division.SEC. 13.
Section 63048.75 is added to the Government Code, to read:63048.75.
Any sale of some or all of the compact assets under this article shall be treated as a true sale and absolute transfer of the property so transferred to the special purpose trust and not as a pledge or grant of a security interest by the state, the bank board, or the bank for any borrowing. The characterization of the sale of any of those assets as an absolute transfer by the participants shall not be negated or adversely affected by the fact that only a portion of the compact assets is transferred, nor by the state’s acquisition of an ownership interest in any residual interest in the compact assets, nor by any characterization of the special purpose trust or its bonds for purposes of accounting, taxation, or securities regulation, nor by any other factor whatsoever.SEC. 14.
Section 63048.8 is added to the Government Code, to read:63048.8.
(a) (1) On and after the effective date of each sale of compact assets, the state shall have no right, title, or interest in or to the compact assets sold, and the compact assets so sold shall be property of the special purpose trust and not of the state, the bank board, or the bank, and shall be owned, received, held, and disbursed by the special purpose trust or the trustee for the financing. None of the compact assets sold by the state pursuant to this article shall be subject to garnishment, levy, execution, attachment, or other process, writ, including, but not limited to, a writ of mandate, or remedy in connection with the assertion or enforcement of any debt, claim, settlement, or judgment against the state, the bank board, or the bank.SEC. 15.
Section 63048.85 is added to the Government Code, to read:63048.85.
(a) The Legislature finds and declares that, because the proceeds from the sale of compact assets authorized by this article are not “proceeds of taxes” as that term is used in Article XIII B of the California Constitution, the disbursement of these proceeds is not subject to the limitations imposed by that article.SEC. 16.
Section 43021 of the Health and Safety Code is repealed.(a)Except as provided in subdivision (b), the retirement, replacement, retrofit, or repower of a self-propelled commercial motor vehicle, as defined in Section 34601 of the Vehicle Code, shall not be required until the later of the following:
(1)Thirteen years from the model year the engine and emission control system are first certified for use in self-propelled commercial motor vehicles by the state board or other applicable state and federal agencies.
(2)When the vehicle reaches the earlier of either 800,000 vehicle miles traveled or 18 years from the model year the engine and emission control system are first certified for use in self-propelled commercial motor vehicles by
the state board or other applicable state and federal agencies.
(b)This section does not apply to any of the following:
(1)Safety programs, including, but not limited to, those adopted pursuant to Section 34501 of the Vehicle Code.
(2)Voluntary incentive and grant programs, including, but not limited to, those that give preferential access to a facility to a particular vehicle or class of vehicles.
(3)Programs designed to address inspection of, tampering with, and maintenance of, emission control systems.
(4)Programs designed to address imminent health risks where evidence, unavailable at the time equipment is certified for use by the state board or other applicable state and federal
agencies, is sufficient to show that immediate corrective action is necessary to prevent injury, illness, or death.
(c)This section only applies to laws or regulations adopted or amended after January 1, 2017.
(d)It is the intent of the Legislature for this section to provide owners of self-propelled commercial motor vehicles, as defined in subdivision (a), certainty about the useful life of engines certified by the state board and other applicable agencies to meet required environmental standards for sale in the state. This section is not meant to otherwise restrict the authority of the state board or districts.
(e)(1)The state board shall, by January 1, 2025, evaluate the impact of the provisions of this section on state and local clean air efforts to meet state and local clean air goals.
The evaluation shall include a review of the following:
(A)Compliance with the truck and bus rule (Section 2025 of Title 13 of the California Code of Regulations).
(B)The benefits and impacts of measures enacted to improve local air quality impacts from stationary sources.
(C)State implementation plan compliance.
(2)As part of the study, the state board shall make recommendations to the Legislature on additional or different mechanisms for achieving those goals while recognizing the financial investments made by the effected entities. In developing the study, the state board shall take into account the report required in Section 38531 of the Health and Safety Code.
(3)The state board
shall hold at least one public workshop prior to the completion of the study.
SEC. 17.
Section 99312.1 of the Public Utilities Code is amended to read:99312.1.
(a) Revenues transferred to the Public Transportation Account pursuant to Sections 6051.8 and 6201.8 of the Revenue and Taxation Code(c)The revenues transferred to the Public Transportation Account for the State Transit Assistance Program that are attributable to subdivision (a) of Section 11053 of the Revenue and Taxation Code are hereby continuously appropriated to the Controller, and, upon allocation pursuant to Sections 99313 and 99314, shall only be expended on the following:
(1)Transit capital projects or services to maintain or repair a transit operator’s existing transit vehicle fleet or existing transit facilities, including rehabilitation or modernization of existing vehicles or facilities.
(2)The design, acquisition, and construction of new vehicles or facilities that improve existing transit services.
(3)Transit services that complement local efforts for repair and improvement of local transportation infrastructure.
(d)(1)Prior to receiving an apportionment of funds pursuant to subdivision (c) from the Controller in a fiscal year, a recipient transit agency shall submit to the Department of Transportation a list of projects proposed to be funded with these funds. The list of projects proposed to be funded with these funds shall include a description and location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement. The project list shall not limit the flexibility of a recipient transit agency to fund projects in accordance with local needs and priorities so long as the projects are consistent with subdivision (c).
(2)The department shall report to the Controller the recipient transit agencies that have submitted a list of projects as described in this subdivision and that are therefore eligible to receive an apportionment of funds for the applicable fiscal year. The Controller, upon
receipt of the report, shall apportion funds pursuant to Sections 99313 and 99314.
(e)For each fiscal year, each recipient transit agency receiving an apportionment of funds pursuant to subdivision (c) shall, upon expending those funds, submit documentation to the department that includes a description and location of each completed project, the amount of funds expended on the project, the completion date, and the estimated useful life of the improvement.
(f)The audit of transit operator finances required pursuant to Section 99245 shall verify that the revenues identified in subdivision (c) have been expended in conformance with these specific requirements and all other generally applicable requirements.
SEC. 18.
Section 99312.3 of the Public Utilities Code is repealed.Revenues transferred to the Public Transportation Account pursuant to paragraph (2) of subdivision (c) of Section 6051.8 and paragraph (2) of subdivision (c) of Section 6201.8 of the Revenue and Taxation Code are hereby continuously appropriated to the Transportation Agency for distribution in the following manner:
(a)(1)Fifty percent of available annual revenues under this section shall be allocated by the Transportation Agency to the public agencies, including joint powers agencies, responsible for state-supported intercity rail services. A minimum of 25 percent of the funds available under this subdivision shall be allocated to each of the state’s three intercity rail corridors that provide regularly scheduled intercity rail service.
(2)The Transportation Agency shall adopt guidelines governing the administration of the funds available under this subdivision, including provisions providing authority for loans of these funds by mutual agreement between intercity rail service corridors.
(b)(1)Fifty percent of available annual revenues under this section shall be allocated by the Transportation Agency to the public agencies, including joint powers agencies, responsible for commuter rail services. For the 2018–19 and 2019–20 fiscal years, 20 percent of the funds available under this subdivision shall be allocated to each of the state’s five commuter rail service providers that provide regularly scheduled commuter rail service. Commencing July 1, 2020, the funds available under this subdivision shall be allocated based on guidelines and a distribution formula adopted by the Transportation
Agency.
(2)On or before July 1, 2019, the Transportation Agency shall prepare a draft of the proposed guidelines and distribution formula and make them available for public comment. In preparing the proposed guidelines and distribution formula, the agency shall consult with the state’s five commuter rail service providers. The final guidelines and distribution formula shall be adopted on or before January 1, 2020. The guidelines shall include, but need not be limited to, provisions providing authority for loans of these funds by mutual agreement between commuter rail service providers and providing for baseline allocations to each provider.
(c)The funds made available by this section may be used for operations and capital improvements.
SEC. 19.
Section 99312.4 of the Public Utilities Code is repealed.Revenues transferred to the Public Transportation Account pursuant to subdivision (a) of Section 11053 of the Revenue and Taxation Code for the Transit and Intercity Rail Capital Program (Part 2 (commencing with Section 75220) of Division 44 of the Public Resources Code) shall be available for appropriation to that program pursuant to the annual Budget Act.
SEC. 20.
Section 99314.9 of the Public Utilities Code is repealed.The Controller shall compute quarterly proposed allocations for State Transit Assistance Program funds available for allocation pursuant to Sections 99313 and 99314. The Controller shall publish the allocations for each eligible recipient agency, including one list applicable to revenues allocated pursuant to subdivision (c) of Section 99312.1 and another list for revenues allocated from all other revenues in the Public Transportation Account that are designated for the State Transit Assistance Program.
SEC. 21.
Section 6051.8 of the Revenue and Taxation Code is amended to read:6051.8.
(a) Except as provided by Section 6357.3, in addition to the taxes imposed by this part, for the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers at the rate of 1.75 percent of the gross receipts of any retailer from the sale of all diesel fuel, as defined in Section 60022.(b)Except as provided by Section 6357.3, in addition to the taxes imposed by this part and by subdivision (a), commencing November 1, 2017, for the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers at the rate of 4 percent of the gross receipts of any retailer from the sale of all diesel fuel, as defined in Section 60022, sold at retail in this state.
(c)(1)
(2)The revenues, less refunds, attributable to a rate of 0.5 percent of the 4-percent increase in the rate pursuant to subdivision (b), amounting to one-eighth of revenues from the increase in the rate under that subdivision, shall be estimated by the State Board of Equalization, with the concurrence of the Department of Finance, and transferred quarterly to the Public Transportation Account in the State Transportation Fund for allocation by the Transportation Agency to intercity rail and commuter rail purposes pursuant to Section 99312.3 of the Public Utilities
Code.
SEC. 22.
Section 6201.8 of the Revenue and Taxation Code is amended to read:6201.8.
(a) Except as provided by Section 6357.3, in addition to the taxes imposed by this part, an excise tax is hereby imposed on the storage, use, or other consumption in this state of diesel fuel, as defined in Section 60022, at the rate of 1.75 percent of the sales price of the diesel fuel.(b)Except as provided by Section 6357.3, in addition to the taxes imposed by this part and by subdivision (a), commencing November 1, 2017, an excise tax is hereby imposed on the storage, use, or other consumption in this state of diesel fuel, as defined in Section 60022, at the rate of 4 percent of the sales price of the diesel fuel.
(c)(1)
(2)The revenues, less refunds, attributable to a rate of 0.5 percent of the 4-percent increase in the rate pursuant to subdivision (b), amounting to one-eighth of revenues from the increase in the rate under that subdivision, shall be estimated by the State Board of Equalization, with the concurrence of the Department of Finance, and transferred quarterly to the Public Transportation Account in the State Transportation Fund for allocation by the Transportation Agency to intercity rail and commuter rail purposes pursuant to Section 99312.3 of the Public Utilities Code.
SEC. 23.
Section 7360 of the Revenue and Taxation Code is amended to read:7360.
(a) (1) A tax of eighteen cents ($0.18) is hereby imposed upon each gallon of fuel subject to the tax in Sections 7362, 7363, and 7364.(5)Commencing July 1, 2019, the adjustments in paragraphs (2) and (3) shall cease, and the rate imposed by this subdivision shall be the rate in paragraph (1).
(c)On and after November 1, 2017, in addition to the taxes imposed by subdivisions (a) and (b), a tax is hereby imposed upon each gallon of motor vehicle fuel, other than aviation gasoline, subject to the tax in Sections 7362, 7363, and 7364, in an
amount equal to twelve cents ($0.12) per gallon.
(d)On July 1, 2020, and every July 1 thereafter, the board shall adjust the taxes imposed by subdivisions (a), (b), and (c), with the adjustment to apply to both to the base tax rates specified in those provisions and to any previous adjustment in rates made pursuant to this subdivision, by increasing the taxes by a percentage amount equal to the increase in the California Consumer Price Index, as calculated by the Department of Finance with the resulting taxes rounded to the nearest one-tenth of one cent ($0.01). The first adjustment pursuant to this subdivision shall be a percentage amount equal to the increase in the California Consumer Price Index from November 1, 2017, to November 1, 2019. Subsequent annual adjustments shall cover subsequent 12 month periods. The incremental change shall be added to the associated rate for that year.
(e)Any increases to the taxes imposed under subdivisions (a),
(b), and (c) that are enacted by legislation subsequent to July 1, 2017, shall be deemed to be changes to the base tax rates for purposes of the California Consumer Price Index calculation and adjustment performed pursuant to subdivision (d).
SEC. 24.
Section 7361.2 of the Revenue and Taxation Code is repealed.(a)For the privilege of storing, for the purpose of sale, each supplier, wholesaler, and retailer owning 1,000 or more gallons of tax-paid motor vehicle fuel on November 1, 2017, shall pay a storage tax, the rate of which shall be determined by the board pursuant to the difference in the rate of the tax on motor vehicle fuel in effect on October 31, 2017, and the rate in effect on November 1, 2017, on tax-paid motor vehicle fuel in storage according to the volumetric measure thereof.
(b)For purposes of this section:
(1)“Owning” means having title to the motor vehicle fuel.
(2)“Retailer” means any person who sells
motor vehicle fuel in this state to a person who subsequently uses the motor vehicle fuel.
(3)“Storing” includes the ownership or possession of tax-paid motor vehicle fuel outside of the bulk transfer/terminal system, including the holding of tax-paid motor vehicle fuel for sale at wholesale or retail locations stored in a container of any kind, including railroad tank cars and trucks or trailer cargo tanks. “Storing” also includes tax-paid motor vehicle fuel purchased from and invoiced by the seller, and tax-paid motor vehicle fuel removed from a terminal or entered into by a supplier, prior to the date specified in subdivision (a) and in transit on that date.
(4)“Wholesaler” means any person who sells diesel fuel in this state for resale to a retailer or to a person who is not a retailer and subsequently uses the motor vehicle fuel.
SEC. 25.
Section 7653.2 of the Revenue and Taxation Code is repealed.On or before January 1, 2018, each person subject to the storage tax imposed under Section 7361.2 shall prepare and file with the board, in a form prescribed by the board, a return showing the total number of gallons of tax-paid motor vehicle fuel owned by the person on November 1, 2017, the amount of the storage tax, and any other information that the board deems necessary for the proper administration of this part. The return shall be accompanied by a remittance payable to the board in the amount of tax due.
SEC. 26.
Section 8352.4 of the Revenue and Taxation Code is amended to read:8352.4.
(a) Subject to Sections 8352 and 8352.1, and except as otherwise provided in subdivision (b), there shall be transferred from the money deposited to the credit of the Motor Vehicle Fuel Account to the Harbors and Watercraft Revolving Fund, for expenditure in accordance with Division 1 (commencing with Section 30) of the Harbors and Navigation Code, the sum of six million six hundred thousand dollars ($6,600,000) per annum, representing the amount of money in the Motor Vehicle Fuel Account attributable to taxes imposed on distributions of motor vehicle fuel used or usable in propelling vessels. The actual amount shall be calculated using the annual reports of registered boats prepared by the Department of Motor Vehicles for the United States Coast Guard and the formula and method of the December 1972 report prepared for this purpose and submitted to the Legislature on December 26, 1972, by the Director of Transportation. If the amount transferred during each fiscal year is in excess of the calculated amount, the excess shall be retransferred from the Harbors and Watercraft Revolving Fund to the Motor Vehicle Fuel Account. If the amount transferred is less than the amount calculated, the difference shall be transferred from the Motor Vehicle Fuel Account to the Harbors and Watercraft Revolving Fund. No adjustment shall be made if the computed difference is less than fifty thousand dollars ($50,000), and the amount shall be adjusted to reflect any temporary or permanent increase or decrease that may be made in the rate under the Motor Vehicle Fuel Tax Law. Payments pursuant to this section shall be made prior to payments pursuant to Section 8352.2.(2)Commencing November 1, 2017, the revenues attributable to the taxes imposed pursuant to subdivision (c) of Section 7360, any adjustment pursuant to subdivision (d) of Section 7360, and Section 7361.2, and otherwise to be deposited in the Harbors and Watercraft Revolving Fund pursuant to subdivision (a), shall instead be transferred to the State Parks and Recreation Fund to be used for state parks, off-highway vehicle programs, or boating programs.
SEC. 27.
Section 8352.5 of the Revenue and Taxation Code is amended to read:8352.5.
(a) (1) Subject to Sections 8352 and 8352.1, and except as otherwise provided in(2)Commencing November 1, 2017, the revenues attributable to the taxes imposed pursuant to subdivision (c) of Section 7360, as adjusted pursuant to subdivision (d) of Section 7360, and Section 7361.2 shall be deposited in the Department of Food and Agriculture Fund.
SEC. 28.
Section 8352.6 of the Revenue and Taxation Code is amended to read:8352.6.
(a) (1) Subject to Section 8352.1, and except as otherwise provided in paragraphs (2) and (3), on the first day of every month, there shall be transferred from moneys deposited to the credit of the Motor Vehicle Fuel Account to the Off-Highway Vehicle Trust Fund created by Section 38225 of the Vehicle Code an amount attributable to taxes imposed upon distributions of motor vehicle fuel used in the operation of motor vehicles off highway and for which a refund has not been claimed. Transfers made pursuant to this section shall be made prior to transfers pursuant to Section 8352.2.(B)Commencing November 1, 2017, the revenues attributable to the taxes imposed pursuant to subdivision (c) of Section 7360, any adjustment pursuant to subdivision (d) of Section 7360, and Section 7361.2, and otherwise to be deposited in the Off-Highway Vehicle Trust Fund pursuant to subdivision (a), shall instead be transferred to the State Parks and Recreation Fund to be used for state parks, off-highway vehicle programs, or boating programs.
SEC. 29.
Chapter 6 (commencing with Section 11050) of Part 5 of Division 2 of the Revenue and Taxation Code is repealed.SEC. 30.
Section 60050 of the Revenue and Taxation Code is amended to read:60050.
(a) (1) A tax of(b)On and after November 1, 2017, in addition to the tax imposed pursuant to subdivision (a), an additional tax of twenty cents ($0.20) is hereby imposed upon each gallon of diesel fuel subject to the tax in Sections 60051, 60052, and 60058.
(c)On July 1, 2020, and every July 1 thereafter, the State Board of Equalization shall adjust the taxes imposed by subdivisions (a), and (b), with the adjustment to apply to both to the base tax rates specified in those provisions and to any previous adjustment in rates made pursuant to this subdivision, by increasing the taxes by a percentage amount equal to the increase in the California Consumer Price Index, as calculated by the Department of Finance with the resulting taxes rounded to the nearest one-tenth of one cent ($0.01). The first adjustment pursuant to this subdivision shall be a percentage amount equal to the increase in the California Consumer Price Index from November 1, 2017, to November 1,
2019. Subsequent annual adjustments shall cover subsequent 12 month periods. The incremental change shall be added to the associated rate for that year.
(d)Any changes to the taxes imposed under this section that are enacted by legislation subsequent to July 1, 2017, shall be deemed to be changes to the base tax rates for purposes of the California Consumer Price Index calculation and adjustment performed pursuant to paragraph (1).
SEC. 31.
Section 60050.2 of the Revenue and Taxation Code is repealed.(a)For the privilege of storing, for the purpose of sale, each supplier, wholesaler, and retailer owning 1,000 or more gallons of tax-paid diesel fuel on November 1, 2017, shall pay a storage tax of twenty cents ($0.20) per gallon of tax-paid diesel fuel in storage according to the volumetric measure thereof.
(b)For purposes of this section:
(1)“Owning” means having title to the diesel fuel.
(2)“Retailer” means any person who sells diesel fuel in this state to a person who subsequently uses the diesel fuel.
(3)“Storing” includes the ownership or
possession of tax-paid diesel fuel outside of the bulk transfer/terminal system, including the holding of tax-paid diesel fuel for sale at wholesale or retail locations stored in a container of any kind, including railroad tank cars and trucks or trailer cargo tanks. “Storing” also includes tax-paid diesel fuel purchased from and invoiced by the seller, and tax-paid diesel fuel removed from a terminal or entered into by a supplier, prior to the date specified in subdivision (a) and in transit on that date.
(4)“Wholesaler” means any person who sells diesel fuel in this state for resale to a retailer or to a person who is not a retailer and subsequently uses the diesel fuel.
SEC. 32.
Section 60201.4 of the Revenue and Taxation Code is repealed.On or before January 1, 2018, each person subject to the storage tax imposed under Section 60050.2 shall prepare and file with the board, in a form prescribed by the board, a return showing the total number of gallons of tax-paid diesel fuel owned by the person on November 1, 2017, the amount of the storage tax, and any other information that the board deems necessary for the proper administration of this part. The return shall be accompanied by a remittance payable to the board in the amount of tax due.
SEC. 33.
Article 2.5 (commencing with Section 800) of Chapter 4 of Division 1 of the Streets and Highways Code is repealed.SEC. 34.
Chapter 2 (commencing with Section 2030) of Division 3 of the Streets and Highways Code is repealed.SEC. 35.
Section 2103.1 of the Streets and Highways Code is repealed.(a)Notwithstanding subdivision (b) of Section 2103, the portion of revenues in the Highway Users Tax Account attributable to the increases in the motor vehicle fuel excise tax pursuant to subdivision (c) of Section 7360 of the Revenue and Taxation Code, as adjusted pursuant to subdivision (d) of that section, shall be transferred to the Road Maintenance and Rehabilitation Account pursuant to Section 2031.
(b)Notwithstanding subdivision (b) of Section 2103, the portion of revenues in the Highway Users Tax Account attributable to the increase in the diesel fuel excise tax pursuant to subdivision (b) of Section 60050 of the Revenue and Taxation Code, as adjusted pursuant to subdivision (c) of that section, shall be transferred as follows:
(1)Fifty percent to the Trade Corridors Enhancement Account pursuant to Section 2192.4.
(2)Fifty percent to the Road Maintenance and Rehabilitation Account pursuant to Section 2031.
(c)Notwithstanding subdivision (b) of Section 2103, the portion of the revenues in the Highway Users Tax Account attributable to the storage taxes imposed pursuant to Sections 7361.2 and 60050.2 of the Revenue and Taxation Code shall be deposited in the Road Maintenance and Rehabilitation Account created pursuant to Section 2031.
SEC. 36.
Section 2104 of the Streets and Highways Code is amended to read:2104.
Notwithstanding Section 13340 of the Government Code, a sum equal to the net revenue derived fromSEC. 37.
Section 2105 of the Streets and Highways Code is amended to read:2105.
Notwithstanding Section 13340 of the Government Code, in addition to the apportionments prescribed by Sections 2104, 2106, and 2107, from the revenues derived from a per gallon tax imposed pursuant to Section 7360 of the Revenue and Taxation Code, and a per gallon tax imposed pursuant to Sections 8651, 8651.5, and 8651.6 of the Revenue and Taxation Code, and a per gallon tax imposed pursuant to Sections 60050 and 60115 of the Revenue and Taxation Code, the following apportionments shall be made:SEC. 38.
Section 2106 of the Streets and Highways Code is amended to read:2106.
Notwithstanding Section 13340 of the Government Code, a sum equal to the net revenue derived fromSEC. 39.
Section 2107 of the Streets and Highways Code is amended to read:2107.
(a) Notwithstanding Section 13340 of the Government Code, a sum equal to the net revenues derived fromSEC. 40.
Section 2192.4 of the Streets and Highways Code is repealed.The Trade Corridor Enhancement Account is hereby created in the State Transportation Fund to receive funds from subdivision (b) of Section 60050 of the Revenue and Taxation Code, as adjusted. Funds in the account shall be available for expenditure upon appropriation by the Legislature for corridor-based freight projects nominated by local agencies and the state.
SEC. 41.
Chapter 8.5 (commencing with Section 2390) of Division 3 of the Streets and Highways Code is repealed.SEC. 42.
Section 4000.15 of the Vehicle Code is repealed.(a)Effective January 1, 2020, the department shall confirm, prior to the initial registration or the transfer of ownership and registration of a diesel-fueled vehicle with a gross vehicle weight rating of more than 14,000 pounds, that the vehicle is compliant with, or exempt from, applicable air pollution control technology requirements pursuant to Division 26 (commencing with Section 39000) of the Health and Safety Code and regulations of the State Air Resources Board adopted pursuant to that division.
(b)Except as otherwise provided in subdivision (c), for diesel-fueled vehicles subject to Section 43018 of the Health and Safety Code, as applied to the reduction of emissions of diesel particulate matter, oxides of
nitrogen, and other criteria pollutants from in-use diesel-fueled vehicles, and Section 2025 of Title 13 of the California Code of Regulations as it read January 1, 2017, or as subsequently amended:
(1)The department shall refuse registration, or renewal or transfer of registration, for a diesel-fueled vehicle with a gross vehicle weight rating of 14,001 pounds to 26,000 pounds for the following vehicle model years:
(A)Effective January 1, 2020, vehicle model years 2004 and older.
(B)Effective January 1, 2021, vehicle model years 2007 and older.
(C)Effective January 1, 2023, vehicle model years 2010 and older.
(2)The department shall
refuse registration, or renewal or transfer of registration, for a diesel-fueled vehicle with a gross vehicle weight rating of more than 26,000 pounds for the following vehicle model years:
(A)Effective January 1, 2020, vehicle model years 2000 and older.
(B)Effective January 1, 2021, vehicle model years 2005 and older.
(C)Effective January 1, 2022, vehicle model years 2007 and older.
(D)Effective January 1, 2023, vehicle model years 2010 and older.
(c)(1)As determined by the State Air Resources Board, notwithstanding effective dates and vehicle model years identified in subdivision (b), the
department may allow registration, or renewal or transfer of registration, for a diesel-fueled vehicle that has been reported to the State Air Resources Board, and is using an approved exemption, or is compliant with applicable air pollution control technology requirements pursuant to Division 26 (commencing with Section 39000) of the Health and Safety Code and regulations of the State Air Resources Board adopted pursuant to that division, including vehicles equipped with the required model year emissions equivalent engine or otherwise using an approved compliance option.
(2)The State Air Resources Board shall notify the department of the vehicles allowed to be registered pursuant to this subdivision.
SEC. 43.
Section 4156 of the Vehicle Code is amended to read:4156.
(a) Notwithstanding any other provision of this code, and except as provided in subdivision (b), the department in its discretion may issue a temporary permit to operate a vehicle when a payment of fees has been accepted in an amount to be determined by, and paid to the department, by the owner or other person in lawful possession of the vehicle. The permit shall be subject to the terms and conditions, and shall be valid for the period of time, that the department shall deem appropriate under the circumstances.(c)(1)The department may issue a temporary permit pursuant to subdivision (a) to operate a vehicle for which registration may be refused pursuant to Section 4000.15.
(2)Only one temporary permit may be issued pursuant to this subdivision for any vehicle, unless otherwise
approved by the State Air Resources Board.
(3)A temporary permit issued pursuant to paragraph (1) is valid for either 90 days after the expiration of the registration of the vehicle or 90 days after the date that vehicle is removed from nonoperation, whichever is applicable at the time the temporary permit is issued.
(4)A temporary permit issued pursuant to paragraph (1) is subject to Section 9257.5.
SEC. 44.
Section 9250.6 of the Vehicle Code is repealed.(a)In addition to any other fees specified in this code, or the Revenue and Taxation Code, commencing July 1, 2020, a road improvement fee of one hundred dollars ($100) shall be paid to the department for registration or renewal of registration of every zero-emission motor vehicle model year 2020 and later subject to registration under this code, except those motor vehicles that are expressly exempted under this code from payment of registration fees.
(b)On January 1, 2021, and every January 1 thereafter, the Department of Motor Vehicles shall adjust the road improvement fee imposed under subdivision (a) by increasing the fee in an amount equal to the increase in the California Consumer Price Index for the prior year, except the first
adjustment shall cover the prior six months, as calculated by the Department of Finance, with amounts equal to or greater than fifty cents ($0.50) rounded to the highest whole dollar. The incremental change shall be added to the associated fee rate for that year.
(c)Any changes to the road improvement fee imposed by subdivision (a) that are enacted by legislation subsequent to July 1, 2017, shall be deemed to be changes to the base fee rate for purposes of the California Consumer Price Index calculation and adjustment performed pursuant to subdivision (b).
(d)Revenues from the road improvement fee, after deduction of the department’s administrative costs related to this section, shall be deposited in the Road Maintenance and Rehabilitation Account created pursuant to Section 2031 of the Streets and Highways Code.
(e)This section does not apply to a commercial motor vehicle subject to Section 9400.1.
(f)The road improvement fee required pursuant to this section does not apply to the initial registration after the purchase of a new zero-emission motor vehicle.
(g)For purposes of this section, “zero-emission motor vehicle” means a motor vehicle as described in subdivision (d) of Section 44258 of the Health and Safety Code, or any other motor vehicle that is able to operate on any fuel other than gasoline or diesel fuel.
SEC. 45.
Section 1 of Chapter 5 of the Statutes of 2017 is repealed.The Legislature finds and declares all of the following:
(a)Over the next 10 years, the state faces a $59 billion shortfall to adequately maintain the existing state highway system in order to keep it in a basic state of good repair.
(b)Similarly, cities and counties face a $78 billion shortfall over the next decade to adequately maintain the existing network of local streets and roads.
(c)Statewide taxes and fees dedicated to the maintenance of the system have not been increased in more than 20 years, with those revenues losing more than 55 percent of their purchasing power, while costs to maintain the
system have steadily increased and much of the underlying infrastructure has aged past its expected useful life.
(d)California motorists are spending $17 billion annually in extra maintenance and car repair bills, which is more than $700 per driver, due to the state’s poorly maintained roads.
(e)Failing to act now to address this growing problem means that more drastic measures will be required to maintain our system in the future, essentially passing the burden on to future generations instead of doing our job today.
(f)A funding program will help address a portion of the maintenance backlog on the state’s road system and will stop the growth of the problem.
(g)Modestly increasing various fees can spread the cost of road repairs broadly to all
users and beneficiaries of the road network without overburdening any one group.
(h)Improving the condition of the state’s road system will have a positive impact on the economy as it lowers the transportation costs of doing business, reduces congestion impacts for employees, and protects property values in the state.
(i)The federal government estimates that increased spending on infrastructure creates more than 13,000 jobs per $1 billion spent.
(j)Well-maintained roads benefit all users, not just drivers, as roads are used for all modes of transport, whether motor vehicles, transit, bicycles, or pedestrians.
(k)Well-maintained roads additionally provide significant health benefits and prevent injuries and death due to crashes caused by poorly
maintained infrastructure.
(l)A comprehensive, reasonable transportation funding package will do all of the following:
(1)Ensure these transportation needs are addressed.
(2)Fairly distribute the economic impact of increased funding.
(3)Restore the gas tax rate previously reduced by the State Board of Equalization pursuant to the gas tax swap.
(4)Direct increased revenue to the state’s highest transportation needs.
(m)This act presents a balance of new revenues and reasonable reforms to ensure efficiency, accountability, and performance from each dollar invested to improve California’s transportation system. The
revenues designated in this act are intended to address both state and local transportation infrastructure needs as follows:
(1)The revenues estimated to be available for allocation under the act to local agencies are estimated over the next 10 years to be as follows:
(A)Fifteen billion dollars ($15,000,000,000) to local street and road maintenance.
(B)Seven billion five hundred million dollars ($7,500,000,000) for transit operations and capital.
(C)Two billion dollars ($2,000,000,000) for the local partnership program.
(D)One billion dollars ($1,000,000,000) for the Active Transportation Program.
(E)Eight hundred
twenty-five million dollars ($825,000,000) for the regional share of the State Transportation Improvement Program.
(F)Two hundred fifty million dollars ($250,000,000) for local planning grants.
(2)The revenues estimated to be available for allocation under the act to the state are estimated over the next 10 years to be as follows:
(A)Fifteen billion dollars ($15,000,000,000) for state highway maintenance and rehabilitation.
(B)Four billion dollars ($4,000,000,000) for highway bridge and culvert maintenance and rehabilitation.
(C)Three billion dollars ($3,000,000,000) for high priority freight corridors.
(D)Two billion
five hundred million dollars ($2,500,000,000) for congested corridor relief.
(E)Eight hundred million dollars ($800,000,000) for parks programs, off-highway vehicle programs, boating programs, and agricultural programs.
(F)Two hundred seventy-five million dollars ($275,000,000) for the interregional share of the State Transportation Improvement Program.
(G)Two hundred fifty million dollars ($250,000,000) for freeway service patrols.
(H)Seventy million dollars ($70,000,000) for transportation research at the University of California and the California State University.
(n)It is the intent of the Legislature that the Department of Transportation meet the following preliminary
performance outcomes for additional state highway investments by the end of 2027, in accordance with applicable state and federal standards:
(1)Not less than 98 percent of pavement on the state highway system in good or fair condition.
(2)Not less than 90 percent level of service achieved for maintenance of potholes, spalls, and cracks.
(3)Not less than 90 percent of culverts in good or fair condition.
(4)Not less than 90 percent of the transportation management system units in good condition.
(5)Fix not less than an additional 500 bridges.
(o)Further, it is the intent of the Legislature that the Department of
Transportation leverage funding provided by this act for trade corridors and other highly congested travel corridors in order to obtain matching funds from federal and other sources to maximize improvements in the state’s high-priority freight corridors and in the most congested commute corridors.
(p)Constitutionally protecting the funds raised by this act ensures that these funds are to be used only for transportation purposes necessary to repair roads and bridges, expand the economy, and protect natural resources.
(q)This act advances greenhouse gas reduction objectives and other environmental goals by focusing on “fix-it-first” projects, investments in transit and active transportation, and supporting Senate Bill 375 (Chapter 728, Statutes of 2008) and transportation plans.
SEC. 46.
Section 2 of Chapter 5 of the Statutes of 2017 is repealed.This act shall be known, and may be cited as, the Road Repair and Accountability Act of 2017.
SEC. 47.
Section 43 of Chapter 5 of the Statutes of 2017 is repealed.The Legislature finds and declares all of the following:
(a)Californians know congestion. For decades, California has been home to five or six of the nation’s most congested travel corridors, which are located in Los Angeles, the San Francisco-Oakland-San Jose Bay Area, the Inland Empire, San Diego, and increasingly, in the central valley. While congestion is a vexing challenge in a state that is home to nearly 40 million people and that adds nearly a half-million people each year, regions and localities are finding new ways to address congestion in highly traveled corridors by undertaking long-term, comprehensive, and multimodal approaches that seek to reduce congestion by expanding travel choices, improving the quality of life, and
preserving the local community character within the corridor.
(b)Examples of this more comprehensive approach to improving congestion in highly traveled corridors include, but are not limited to, programs in the following regions:
(1)The North Coast Corridor improvements along Route 5 and the parallel rail corridor in the County of San Diego.
(2)The Route 91 and Metrolink rail corridor improvements in the County of Riverside.
(3)Emerging solutions for the Route 101 and Caltrain corridor connecting Silicon Valley with San Francisco.
(4)Multimodal approaches for the Route 101 and SMART rail corridor between the Counties of Marin and Sonoma.
(5)Comprehensive solutions for the Route 405 Corridor in the County of Los Angeles.
(c)The state recognizes the benefits to mobility, quality of life, and the environment through comprehensive, multimodal proposals that address mobility, community, and environmental challenges along highly traveled corridors. Therefore, the Solutions for Congested Corridors Program is being created to support collaborative and comprehensive proposals to address these challenges.
SEC. 48.
Section 48 of Chapter 5 of the Statutes of 2017 is repealed.(a)On or before January 1, 2019, the Institute for Transportation Studies at the University of California, Davis is requested to prepare and submit to the Governor and the Legislature a report that makes recommendations on potential methodologies to raise revenue from zero-emission and low-emission vehicle owners to achieve the state’s transportation electrification, clean air, and climate targets established under law while also ensuring those vehicle owners pay their fair share of any costs borne by motorists to fund improvements to the transportation system.
(b)The report shall examine all fees, taxes, and incentives for zero- and low-emission vehicles, and other vehicles, and shall make recommendations for
options that ensure the purchase and ownership of zero- and low-emission vehicles are properly incentivized to assist in meeting state clean air and climate targets, while also ensuring appropriate levels of funding for roads and transportation.
(c)The study shall assess annual fees on zero-emission vehicles or other vehicles not otherwise subject to state fuel excise or use taxes and compare that to the average annual state fuel excise tax assessed on gasoline or diesel vehicles with equivalent fuel economy.
(d)The Institute shall consult with the State Air Resources Board, the Department of Transportation, the Department of Motor Vehicles, and the State Board of Equalization in preparing the report.
(e)This report shall be submitted in compliance with Section 9795 of the Government
Code.
SEC. 49.
Section 49 of Chapter 5 of the Statutes of 2017 is repealed.Guidelines adopted to implement transportation programs in this act by the California Transportation Commission, the Department of Transportation, the Transportation Agency, or any other state agency shall be exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).