Bill Text: CA ACA5 | 2015-2016 | Regular Session | Amended
Bill Title: Legislature: 2-year budget.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2016-11-30 - From committee without further action. [ACA5 Detail]
Download: California-2015-ACA5-Amended.html
BILL NUMBER: ACA 5 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 30, 2015
INTRODUCED BY Assembly Member Grove
MARCH 11, 2015
A resolution to propose to the people of the State of California
an amendment to the Constitution of the State, relating to
the Legislature. by amending Sections 3, 10, 11, and
12 of Article IV thereof, by amending Section 36 of Article XIII
thereof, by amending Sections 1, 2, 3, 6, 8, and 10.5 of ,
and adding Section 14 to, Article XIII B thereof, by amending
Sections 8, 8.5, 20, 21, and 22 of Article XVI thereof, by amending
Section 2 of Article XIX B thereof, and by amending Section 4 of
Article XXXV thereof, relating to the state budget.
LEGISLATIVE COUNSEL'S DIGEST
ACA 5, as amended, Grove. Legislature: 2-year budget.
The California Constitution provides that the Legislature meets in
a biennial regular session, commencing with the first Monday in
December in each even-numbered year, when each house is required to
immediately organize, and concluding at midnight on November 30 of
the next even-numbered year. The California Constitution requires the
Governor to submit to the Legislature a budget for the ensuing
fiscal year within the first 10 days of each calendar year and
requires the Legislature to pass the Budget Bill by midnight on June
15 of each year. The California Constitution authorizes the
Legislature or either house, by resolution, to provide for the
selection of committees. committees necessary
for the conduct of its business.
This measure would provide that it is the intent of the
Legislature to propose to the people of the State of California
amendments to the Constitution that, commencing in 2019, would
require the Legislature to consider or act only upon the Budget Bill
and related bills, and up to 5 bills introduced by the standing
committees of the Legislature in the regular session in each
odd-numbered year, would require the Governor to submit to the
Legislature a budget for the ensuing 2 fiscal years within the first
10 days of the first calendar year of the biennium of the legislative
session, and would require the Legislature to adopt, by June 15 of
the first calendar year of the biennium of the legislative session, a
Budget Bill that provides a budget for the next 2-year fiscal period
commencing on July 1.
This measure would authorize the Legislature, in the first year of
the regular session, to consider or act upon only the Budget Bill
and related bills, and up to 5 bills introduced by each of the
standing committees of the Legislature, as specified. The measure
would require the Governor to submit to the Legislature a budget for
the ensuing 2 fiscal years within the first 10 days of the first
calendar year of the biennium of the legislative session, and would
require the Legislature to adopt by June 15 of the first calendar
year of the biennium of the legislative session a Budget Bill that
provides a budget for the next 2-year fiscal period commencing on
July 1. The measure, in the second year of the regular session, would
authorize the Legislature to consider or act upon only legislation
other than the Budget Bill and related bills. The Legislature, by a
2/3 vote of each house, would be authorized, however, to amend an
enacted Budget Bill and related bills in both calendar years of the
biennium.
This measure would establish and specify the membership
requirements for the Joint Legislative Budget Committee and would
authorize the Joint Legislative Budget Committee to approve proposals
submitted by the Governor to amend an enacted Budget Bill. A
proposed amendment approved by the committee would take immediate
effect as a statute. The measure would also make numerous changes to
conform to the adoption of a budget for a 2-year fiscal period.
The measure provides that these changes would become operative on
December 3, 2018, and that the constitutional provisions amended by
the measure would continue in effect as they read prior to voter
approval of the measure until December 3, 2018
Vote: 2/3. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
Resolved by the Assembly, the Senate concurring, That the
Legislature of the State of California at its 2015-16 Regular Session
commencing on the first day of December 2014, two-thirds of the
membership of each house concurring, hereby proposes to the people of
the State of California, California
that the Constitution of the State be amended as follows:
First-- That Section 3 of Article IV thereof is
amended to read:
SEC. 3. (a) The Legislature shall convene in regular session
at noon on the first Monday in December of each even-numbered year
and each house shall immediately organize. Each regular
session of the Legislature shall adjourn sine die by operation of the
Constitution at midnight on November 30 of the following
even-numbered year.
(b) (1) In each odd-numbered year of the regular session, the
Legislature shall consider or act upon only the budget bill, other
bills providing for appropriations related to the budget bill, and
bills introduced pursuant to clause (ii) of subparagraph (B) of
paragraph (2).
(2) In each odd-numbered year of the regular session, the
Legislature shall conduct hearings only for either of the following
purposes:
(A) To consider, develop, and adopt the budget for the next
two-year fiscal period.
(B) (i) Oversight of state department operations and state
programs.
(ii) A standing committee of the Legislature may introduce up to
five bills authored by a majority of the standing committee to
improve state department operations or state program deficiencies
discussed during an oversight hearing conducted pursuant to clause
(i).
(c) In each even-numbered year of the regular session, the
Legislature shall consider or act upon only legislation other than
the budget bill or other bills providing for appropriations related
to the budget bill.
(d) Notwithstanding subdivisions (b) and (c), the Legislature may
amend an enacted budget bill or other bill providing for
appropriations related to an enacted budget bill in either an odd- or
even-numbered year of the regular session in which the budget bill
or other bill providing for appropriations related to the budget bill
was enacted.
(b)
(e) On extraordinary occasions the Governor by
proclamation may cause the Legislature to assemble in special
session. When so assembled it has power to ,
the Legislature shall legislate only on subjects specified in
the proclamation but may provide for expenses and other matters
incidental to the session.
Second-- That Section 10 of Article IV thereof is
amended to read:
SEC. 10. (a) Each bill passed by the Legislature shall be
presented to the Governor. It becomes a statute if it is signed by
the Governor. The Governor may veto it by returning it with any
objections to the house of origin, which shall enter the objections
in the journal and proceed to reconsider it. If each house then
passes the bill by rollcall vote entered in the journal, two-thirds
of the membership concurring, it becomes a statute.
(b) (1) Any bill, other than a bill which would establish or
change boundaries of any legislative, congressional, or
other election district, passed by the Legislature on or
before the date the Legislature adjourns for a joint recess to
reconvene in the second calendar year of the biennium of the
legislative session, and in the possession of the Governor after that
date, that is not returned within 30 days after that date becomes a
statute.
(2) Any bill passed by the Legislature before September 1 of the
second calendar year of the biennium of the legislative session and
in the possession of the Governor on or after September 1 that is not
returned on or before September 30 of that year becomes a statute.
(3) Any other bill presented to the Governor that is not returned
within 12 days becomes a statute.
(4) If the Legislature by adjournment of a special session
prevents the return of a bill with the veto message, the bill becomes
a statute unless the Governor vetoes the bill within 12 days after
it is presented by depositing it and the veto message in the office
of the Secretary of State.
(5) If the 12th day of the period within which the Governor is
required to perform an act pursuant to paragraph (3) or (4)
of this subdivision is a Saturday, Sunday, or holiday, the
period is extended to the next day that is not a Saturday, Sunday, or
holiday.
(c) Any bill introduced during the first year of the biennium of
the legislative session that has not been passed by the house of
origin by January 31 of the second calendar year of the biennium may
no longer be acted on by the house. No bill may be passed by either
house on or after September 1 of an even-numbered year except
statutes calling elections, statutes providing for tax levies or
appropriations for the usual current expenses of the State, and
urgency statutes, and bills passed after being vetoed by the
Governor.
(d) The Legislature may not present any bill to the Governor after
November 15 of the second calendar year of the biennium of the
legislative session.
(e) The Governor may reduce or eliminate one or more items of
appropriation while approving other portions of a bill. The Governor
shall append to the bill a statement of the items reduced or
eliminated with the reasons for the action. The Governor shall
transmit to the house originating the bill a copy of the statement
and reasons. Items reduced or eliminated shall be separately
reconsidered and may be passed over the Governor's veto in the same
manner as bills.
(f) (1) If, following the enactment of the budget bill for the
2004-05 2018-19 fiscal year or any
subsequent fiscal year, two-year fiscal
period, the Governor determines that, for that fiscal
year, year or two-year fiscal period, as applicable,
General Fund revenues will decline substantially below the
estimate of General Fund revenues upon which the budget bill for that
fiscal year, year or two-year fiscal period,
as enacted, was based, or General Fund expenditures will
increase substantially above that estimate of General Fund revenues,
or both, the Governor may issue a proclamation declaring a fiscal
emergency and shall thereupon cause the Legislature to assemble in
special session for this purpose. The proclamation shall identify the
nature of the fiscal emergency and shall be submitted by the
Governor to the Legislature, accompanied by proposed legislation to
address the fiscal emergency.
(2) If the Legislature fails to pass and send to the Governor a
bill or bills to address the fiscal emergency by the 45th day
following the issuance of the proclamation, the Legislature may not
act on any other bill, nor may the Legislature adjourn for a joint
recess, until that a bill or
those bills to address the fiscal emergency have
been passed and sent to the Governor.
(3) A bill addressing the fiscal emergency declared pursuant to
this section shall contain a statement to that effect.
Third-- That Section 11 of Article IV thereof is
amended to read:
SEC. 11. (a) The Legislature or either
house may by resolution provide for the selection of committees
necessary for the conduct of its business, including committees to
ascertain facts and make recommendations to the Legislature on a
subject within the scope of legislative control.
(b) (1) The Joint Legislative Budget Committee is established to
ascertain facts and make recommendations to the Legislature and to
the houses thereof concerning the state budget, the revenues and
expenditures of the State, and the organization and functions of the
State and its departments, subdivisions, and agencies.
(2) Each political party represented in each house shall, to the
greatest extent possible, be proportionately represented in the Joint
Legislative Budget Committee. The membership of the Joint
Legislative Budget Committee shall be as follows:
(A) Eight Members of the Assembly appointed by the Speaker of the
Assembly.
(B) Eight Members of the Senate appointed by the Senate Committee
on Rules.
(3) In addition to the duties described in paragraph (1), the
Joint Legislative Budget Committee may, by a resolution adopted by a
majority of the committee members, approve, pursuant to subdivision
(i) of Section 12, a proposal by the Governor to amend an enacted
budget bill.
Fourth-- That Section 12 of Article IV thereof is
amended to read:
SEC. 12. (a) Within the first 10 days of each
calendar odd-numbered year, the Governor shall
submit to the Legislature, with an explanatory message, a budget for
the ensuing fiscal year next two-year fiscal
period commencing on July 1, containing itemized statements for
recommended state expenditures and estimated state revenues. If
recommended expenditures exceed estimated revenues, the Governor
shall recommend the sources from which the additional revenues should
be provided.
(b) The Governor and the Governor-elect may require a state
agency, officer or employee to furnish whatever information is deemed
necessary to prepare the budget.
(c) (1) The budget shall be accompanied by a budget bill itemizing
recommended expenditures.
(2) The budget bill shall be introduced immediately in each house
by the persons chairing the committees that consider the budget.
(3) The Legislature shall pass the budget bill by midnight on June
15 of each odd-numbered year.
(4) Until the budget bill has been enacted, the Legislature shall
not send to the Governor for consideration any bill appropriating
funds for expenditure during the fiscal year
period for which the budget bill is to be enacted, except
emergency bills recommended by the Governor or appropriations for the
salaries and expenses of the Legislature.
(d) No bill except the budget bill may contain more than one item
of appropriation, and that for one certain, expressed purpose.
Appropriations from the General Fund of the State, except
appropriations for the public schools and appropriations in the
budget bill and in other bills providing for appropriations related
to the budget bill, are void unless passed in each house by rollcall
vote entered in the journal, two-thirds of the membership concurring.
(e) (1) Notwithstanding any other provision of law or of this
Constitution, the budget bill and other bills providing for
appropriations related to the budget bill may be passed in each house
by rollcall vote entered in the journal, a majority of the
membership concurring, to take effect immediately upon being signed
by the Governor or upon a date specified in the legislation.
Nothing Once enacted, a budget bill or other bill
providing for appropriations related to an enacted budget bill may be
amended by the Legislature pursuant to subdivision (d) of Section 3
only by a bill passed in each house by a rollcall vote
entered in the journal, two-thirds of the membership concurring
.
(2) Nothing in this subdivision
shall affect the vote requirement for appropriations for the public
schools contained in subdivision (d) of this section and in
subdivision (b) of Section 8 of this article .
(2)
(3) For purposes of this section and Section 3
, "other bills providing for appropriations related to the
budget bill" shall consist only of bills passed in the first
calendar year of the biennium of the legislative session that are
identified as related to the budget in the budget bill passed
by the Legislature.
(f) The Legislature may control the submission, approval, and
enforcement of budgets and the filing of claims for all state
agencies.
(g) For the 2004-05 fiscal year, or any subsequent fiscal
year, the The Legislature may
shall not send to the Governor for
consideration, nor may and the Governor
shall not sign into law, a budget bill that would
appropriate from the General Fund, for that fiscal year,
that two-year fiscal period, a total amount
that, when combined with all appropriations from the General Fund for
that fiscal year that two-year fiscal period
made as of the date of the budget bill's passage, and the
amount of any General Fund moneys transferred to the Budget
Stabilization Account for that fiscal year
that two-year fiscal period pursuant to Section 20 of Article
XVI, exceeds General Fund revenues for that fiscal year
that two-year fiscal period estimated as of the
date of the budget bill's passage. That estimate of General Fund
revenues shall be set forth in the budget bill passed by the
Legislature.
(h) Notwithstanding any other provision of law or of this
Constitution, including subdivision (c) of this section, Section 4 of
this article, and Sections 4 and 8 of Article III, in any
odd-numbered year in which the budget bill is not passed by the
Legislature by midnight on June 15, there shall be no appropriation
from the current budget or future budget to pay any salary or
reimbursement for travel or living expenses for Members of the
Legislature during any regular or special session for the period from
midnight on June 15 until the day that the budget bill is presented
to the Governor. No salary or reimbursement for travel or living
expenses forfeited pursuant to this subdivision shall be paid
retroactively.
(i) The Governor may submit proposals to amend a budget bill that
has been enacted. A proposal to amend an enacted budget bill shall be
submitted to both houses simultaneously, whereupon it shall be
immediately referred to the Joint Legislative Budget Committee. The
Joint Legislative Budget Committee may approve a proposal by the
Governor to amend an enacted budget bill by an affirmative vote of
not less than five of the Assembly Members and five of the Senators
constituting the committee. Notwithstanding subdivision (b) of
Section 8, a proposal to amend an enacted budget bill that is
approved by the committee shall take effect as a statute and shall go
into effect immediately upon being approved.
Fifth-- That Section 36 of Article XIII thereof is
amended to read:
SEC. 36. (a) For purposes of this section:
(1) "Public Safety Services" includes the following:
(A) Employing and training public safety officials, including law
enforcement personnel, attorneys assigned to criminal proceedings,
and court security staff.
(B) Managing local jails and providing housing, treatment, and
services for, and supervision of, juvenile and adult offenders.
(C) Preventing child abuse, neglect, or exploitation; providing
services to children and youth who are abused, neglected, or
exploited, or who are at risk of abuse, neglect, or exploitation, and
the families of those children; providing adoption services; and
providing adult protective services.
(D) Providing mental health services to children and adults to
reduce failure in school, harm to self or others, homelessness, and
preventable incarceration or institutionalization.
(E) Preventing, treating, and providing recovery services for
substance abuse.
(2) "2011 Realignment Legislation" means legislation enacted on or
before September 30, 2012, to implement the state budget plan, that
is entitled 2011 Realignment and provides for the assignment of
Public Safety Services responsibilities to local agencies, including
related reporting responsibilities. The legislation shall provide
local agencies with maximum flexibility and control over the design,
administration, and delivery of Public Safety Services consistent
with federal law and funding requirements, as determined by the
Legislature. However, 2011 Realignment Legislation shall include no
new programs assigned to local agencies after January 1, 2012, except
for the early periodic screening, diagnosis, and treatment (EPSDT)
program and mental health managed care.
(b) (1) Except as provided in subdivision (d), commencing in the
2011-12 fiscal year and continuing thereafter, the following amounts
shall be deposited into the Local Revenue Fund 2011, as established
by Section 30025 of the Government Code, as follows:
(A) All revenues, less refunds, derived from the taxes described
in Sections 6051.15 and 6201.15 of the Revenue and Taxation Code, as
those sections read on July 1, 2011.
(B) All revenues, less refunds, derived from the vehicle license
fees described in Section 11005 of the Revenue and Taxation Code, as
that section read on July 1, 2011.
(2) On and after July 1, 2011, the revenues deposited pursuant to
paragraph (1) shall not be considered General Fund revenues or
proceeds of taxes for purposes of Section 8 of Article XVI of the
California Constitution.
(c) (1) Funds deposited in the Local Revenue Fund 2011 are
continuously appropriated exclusively to fund the provision of Public
Safety Services by local agencies. Pending full implementation of
the 2011 Realignment Legislation, funds may also be used to reimburse
the State for program costs incurred in providing Public Safety
Services on behalf of local agencies. The methodology for allocating
funds shall be as specified in the 2011 Realignment Legislation.
(2) The county treasurer, city and county treasurer, or other
appropriate official shall create a County Local Revenue Fund 2011
within the treasury of each county or city and county. The money in
each County Local Revenue Fund 2011 shall be exclusively used to fund
the provision of Public Safety Services by local agencies as
specified by the 2011 Realignment Legislation.
(3) Notwithstanding Section 6 of Article XIII B, or any other
constitutional provision, a mandate of a new program or higher level
of service on a local agency imposed by the 2011 Realignment
Legislation, or by any regulation adopted or any executive order or
administrative directive issued to implement that legislation, shall
not constitute a mandate requiring the State to provide a subvention
of funds within the meaning of that section. Any requirement that a
local agency comply with Chapter 9 (commencing with Section 54950) of
Part 1 of Division 2 of Title 5 of the Government Code, with respect
to performing its Public Safety Services responsibilities, or any
other matter, shall not be a reimbursable mandate under Section 6 of
Article XIII B.
(4) (A) Legislation enacted after September 30, 2012, that has an
overall effect of increasing the costs already borne by a local
agency for programs or levels of service mandated by the 2011
Realignment Legislation shall apply to local agencies only to the
extent that the State provides annual funding for the cost increase.
Local agencies shall not be obligated to provide programs or levels
of service required by legislation, described in this subparagraph,
above the level for which funding has been provided.
(B) Regulations, executive orders, or administrative directives,
implemented after October 9, 2011, that are not necessary to
implement the 2011 Realignment Legislation, and that have an overall
effect of increasing the costs already borne by a local agency for
programs or levels of service mandated by the 2011 Realignment
Legislation, shall apply to local agencies only to the extent that
the State provides annual funding for the cost increase. Local
agencies shall not be obligated to provide programs or levels of
service pursuant to new regulations, executive orders, or
administrative directives, described in this subparagraph, above the
level for which funding has been provided.
(C) Any new program or higher level of service provided by local
agencies, as described in subparagraphs (A) and (B), above the level
for which funding has been provided, shall not require a subvention
of funds by the State nor otherwise be subject to Section 6 of
Article XIII B. This paragraph shall not apply to legislation
currently exempt from subvention under paragraph (2) of subdivision
(a) of Section 6 of Article XIII B as that paragraph read on January
2, 2011.
(D) The State shall not submit to the federal government any plans
or waivers, or amendments to those plans or waivers, that have an
overall effect of increasing the cost borne by a local agency for
programs or levels of service mandated by the 2011 Realignment
Legislation, except to the extent that the plans, waivers, or
amendments are required by federal law, or the State provides annual
funding for the cost increase.
(E) The State shall not be required to provide a subvention of
funds pursuant to this paragraph for a mandate that is imposed by the
State at the request of a local agency or to comply with federal
law. State funds required by this paragraph shall be from a source
other than those described in subdivisions (b) and (d), ad valorem
property taxes, or the Social Services Subaccount of the Sales Tax
Account of the Local Revenue Fund.
(5) (A) For programs described in subparagraphs (C) to (E),
inclusive, of paragraph (1) of subdivision (a) and included in the
2011 Realignment Legislation, if there are subsequent changes in
federal statutes or regulations that alter the conditions under which
federal matching funds as described in the 2011 Realignment
Legislation are obtained, and have the overall effect of increasing
the costs incurred by a local agency, the State shall annually
provide at least 50 percent of the nonfederal share of those costs as
determined by the State.
(B) When the State is a party to any complaint brought in a
federal judicial or administrative proceeding that involves one or
more of the programs described in subparagraphs (C) to (E),
inclusive, of paragraph (1) of subdivision (a) and included in the
2011 Realignment Legislation, and there is a settlement or judicial
or administrative order that imposes a cost in the form of a monetary
penalty or has the overall effect of increasing the costs already
borne by a local agency for programs or levels of service mandated by
the 2011 Realignment Legislation, the State shall annually provide
at least 50 percent of the nonfederal share of those costs as
determined by the State. Payment by the State is not required if the
State determines that the settlement or order relates to one or more
local agencies failing to perform a ministerial duty, failing to
perform a legal obligation in good faith, or acting in a negligent or
reckless manner.
(C) The state funds provided in this paragraph shall be from
funding sources other than those described in subdivisions (b) and
(d), ad valorem property taxes, or the Social Services Subaccount of
the Sales Tax Account of the Local Revenue Fund.
(6) If the State or a local agency fails to perform a duty or
obligation under this section or under the 2011 Realignment
Legislation, an appropriate party may seek judicial relief. These
proceedings shall have priority over all other civil matters.
(7) The funds deposited into a County Local Revenue Fund 2011
shall be spent in a manner designed to maintain the State's
eligibility for federal matching funds, and to ensure compliance by
the State with applicable federal standards governing the State's
provision of Public Safety Services.
(8) The funds deposited into a County Local Revenue Fund 2011
shall not be used by local agencies to supplant other funding for
Public Safety Services.
(d) If the taxes described in subdivision (b) are reduced or cease
to be operative, the State shall annually
biennially provide moneys to the Local Revenue Fund 2011 in an
amount equal to or greater than the aggregate amount that otherwise
would have been provided by the taxes described in subdivision (b).
The method for determining that amount shall be described in the 2011
Realignment Legislation, and the State shall be obligated to provide
that amount for so long as the local agencies are required to
perform the Public Safety Services responsibilities assigned by the
2011 Realignment Legislation. If the State fails to annually
biennially appropriate that amount, the
Controller shall transfer that amount from the General Fund in pro
rata monthly shares to the Local Revenue Fund 2011. Thereafter, the
Controller shall disburse these amounts to local agencies in the
manner directed by the 2011 Realignment Legislation. The state
obligations under this subdivision shall have a lower priority claim
to General Fund money than the first priority for money to be set
apart under Section 8 of Article XVI and the second priority to pay
voter-approved debts and liabilities described in Section 1 of
Article XVI.
(e) (1) To ensure that public education is not harmed in the
process of providing critical protection to local Public Safety
Services, the Education Protection Account is hereby created in the
General Fund to receive and disburse the revenues derived from the
incremental increases in taxes imposed by this section, as specified
in subdivision (f).
(2) (A) Before June 30, 2013, and before June 30 of each year from
2014 to 2018, inclusive, the Director of Finance shall estimate the
total amount of additional revenues, less refunds, that will be
derived from the incremental increases in tax rates made in
subdivision (f) that will be available for transfer into the
Education Protection Account during the next fiscal year. The
Director of Finance shall make the same estimate by January 10, 2013,
for additional revenues, less refunds, that will be received by the
end of the 2012-13 fiscal year.
(B) During the last 10 days of the quarter of each of the first
three quarters of each fiscal year from 2013-14 to 2018-19,
inclusive, the Controller shall transfer into the Education
Protection Account one-fourth of the total amount estimated pursuant
to subparagraph (A) for that fiscal year, except as this amount may
be adjusted pursuant to subparagraph (D).
(C) In each of the fiscal years from 2012-13 to 2020-21,
inclusive, the Director of Finance shall calculate an adjustment to
the Education Protection Account, as specified by subparagraph (D),
by adding together the following amounts, as applicable:
(i) In the last quarter of each fiscal year from 2012-13 to
2018-19, inclusive, the Director of Finance shall recalculate the
estimate made for the fiscal year pursuant to subparagraph (A), and
shall subtract from this updated estimate the amounts previously
transferred to the Education Protecion
Protection Account for that fiscal year.
(ii) In June 2015 and in every June from 2016 to 2021, inclusive,
the Director of Finance shall make a final determination of the
amount of additional revenues, less refunds, derived from the
incremental increases in tax rates made in subdivision (f) for the
fiscal year ending two years prior. The amount of the updated
estimate calculated in clause (i) for the fiscal year ending two
years prior shall be subtracted from the amount of this final
determination.
(D) If the sum determined pursuant to subparagraph (C) is
positive, the Controller shall transfer an amount equal to that sum
into the Education Protection Account within 10 days preceding the
end of the fiscal year. If that amount is negative, the Controller
shall suspend or reduce subsequent quarterly transfers, if any, to
the Education Protection Account until the total reduction equals the
negative amount herein described. For purposes of any calculation
made pursuant to clause (i) of subparagraph (C), the amount of a
quarterly transfer shall not be modified to reflect any suspension or
reduction made pursuant to this subparagraph.
(3) All moneys in the Education Protection Account are hereby
continuously appropriated for the support of school districts, county
offices of education, charter schools, and community college
districts as set forth in this paragraph.
(A) Eleven percent of the moneys appropriated pursuant to this
paragraph shall be allocated quarterly by the Board of Governors of
the California Community Colleges to community college districts to
provide general purpose funding to community college districts in
proportion to the amounts determined pursuant to Section 84750.5 of
the Education Code, as that code section read upon voter approval of
this section. The allocations calculated pursuant to this
subparagraph shall be offset by the amounts specified in subdivisions
(a), (c), and (d) of Section 84751 of the Education Code, as that
section read upon voter approval of this section, that are in excess
of the amounts calculated pursuant to Section 84750.5 of the
Education Code, as that section read upon voter approval of this
section, provided that no community college district shall receive
less than one hundred dollars ($100) per full time equivalent
student.
(B) Eighty-nine percent of the moneys appropriated pursuant to
this paragraph shall be allocated quarterly by the Superintendent of
Public Instruction to provide general purpose funding to school
districts, county offices of education, and state general-purpose
funding to charter schools in proportion to the revenue limits
calculated pursuant to Sections 2558 and 42238 of the Education Code
and the amounts calculated pursuant to Section 47633 of the Education
Code for county offices of education, school districts, and charter
schools, respectively, as those sections read upon voter approval of
this section. The amounts so calculated shall be offset by the
amounts specified in subdivision (c) of Section 2558 of, paragraphs
(1) through (7) of subdivision (h) of Section 42238 of, and Section
47635 of, the Education Code for county offices of education, school
districts, and charter schools, respectively, as those sections read
upon voter approval of this section, that are in excess of the
amounts calculated pursuant to Sections 2558, 42238, and 47633 of the
Education Code for county offices of education, school districts,
and charter schools, respectively, as those sections read upon voter
approval of this section, provided that no school district, county
office of education, or charter school shall receive less than two
hundred dollars ($200) per unit of average daily attendance.
(4) This subdivision is self-executing and requires no legislative
action to take effect. Distribution of the moneys in the Education
Protection Account by the Board of Governors of the California
Community Colleges and the Superintendent of Public Instruction shall
not be delayed or otherwise affected by failure of the Legislature
and Governor to enact an annual a
budget bill pursuant to Section 12 of Article IV, by invocation of
paragraph (h) of Section 8 of Article XVI, or by any other action or
failure to act by the Legislature or Governor.
(5) Notwithstanding any other provision of law, the moneys
deposited in the Education Protection Account shall not be used to
pay any costs incurred by the Legislature, the Governor, or any
agency of state government.
(6) A community college district, county office of education,
school district, or charter school shall have sole authority to
determine how the moneys received from the Education Protection
Account are spent in the school or schools within its jurisdiction,
provided, however, that the appropriate governing board or body shall
make these spending determinations in open session of a public
meeting of the governing board or body and shall not use any of the
funds from the Education Protection Account for salaries or benefits
of administrators or any other administrative costs. Each community
college district, county office of education, school district, and
charter school shall annually publish on its Internet Web site an
accounting of how much money was received from the Education
Protection Account and how that money was spent.
(7) The annual independent financial and compliance audit required
of community college districts, county offices of education, school
districts, and charter schools shall, in addition to all other
requirements of law, ascertain and verify whether the funds provided
from the Education Protection Account have been properly disbursed
and expended as required by this section. Expenses incurred by those
entities to comply with the additional audit requirement of this
section may be paid with funding from the Education Protection
Account, and shall not be considered administrative costs for
purposes of this section.
(8) Revenues, less refunds, derived pursuant to subdivision (f)
for deposit in the Education Protection Account pursuant to this
section shall be deemed "General Fund revenues," "General Fund
proceeds of taxes," and "moneys to be applied by the State for the
support of school districts and community college districts" for
purposes of Section 8 of Article XVI.
(f) (1) (A) In addition to the taxes imposed by Part 1 (commencing
with Section 6001) of Division 2 of the Revenue and Taxation Code,
for the privilege of selling tangible personal property at retail, a
tax is hereby imposed upon all retailers at the rate of 1/4 percent
of the gross receipts of any retailer from the sale of all tangible
personal property sold at retail in this State on and after January
1, 2013, and before January 1, 2017.
(B) In addition to the taxes imposed by Part 1 (commencing with
Section 6001) of Division 2 of the Revenue and Taxation Code, an
excise tax is hereby imposed on the storage, use, or other
consumption in this State of tangible personal property purchased
from any retailer on and after January 1, 2013, and before January 1,
2017, for storage, use, or other consumption in this state at the
rate of 1/4 percent of the sales price of the property.
(C) The Sales and Use Tax Law, including any amendments enacted on
or after the effective date of this section, shall apply to the
taxes imposed pursuant to this paragraph.
(D) This paragraph shall become inoperative on January 1, 2017.
(2) For any taxable year beginning on or after January 1, 2012,
and before January 1, 2019, with respect to the tax imposed pursuant
to Section 17041 of the Revenue and Taxation Code, the income tax
bracket and the rate of 9.3 percent set forth in paragraph (1) of
subdivision (a) of Section 17041 of the Revenue and Taxation Code
shall be modified by each of the following:
(A) (i) For that portion of taxable income that is over two
hundred fifty thousand dollars ($250,000) but not over three hundred
thousand dollars ($300,000), the tax rate is 10.3 percent of the
excess over two hundred fifty thousand dollars ($250,000).
(ii) For that portion of taxable income that is over three hundred
thousand dollars ($300,000) but not over five hundred thousand
dollars ($500,000), the tax rate is 11.3 percent of the excess over
three hundred thousand dollars ($300,000).
(iii) For that portion of taxable income that is over five hundred
thousand dollars ($500,000), the tax rate is 12.3 percent of the
excess over five hundred thousand dollars ($500,000).
(B) The income tax brackets specified in clauses (i), (ii), and
(iii) of subparagraph (A) shall be recomputed, as otherwise provided
in subdivision (h) of Section 17041 of the Revenue and Taxation Code,
only for taxable years beginning on and after January 1, 2013.
(C) (i) For purposes of subdivision (g) of Section 19136 of the
Revenue and Taxation Code, this paragraph shall be considered to be
chaptered on the date it becomes effective.
(ii) For purposes of Part 10 (commencing with Section 17001) of,
and Part 10.2 (commencing with Section 18401) of, Division 2 of the
Revenue and Taxation Code, the modified tax brackets and tax rates
established and imposed by this paragraph shall be deemed to be
established and imposed under Section 17041 of the Revenue and
Taxation Code.
(D) This paragraph shall become inoperative on December 1, 2019.
(3) For any taxable year beginning on or after January 1, 2012,
and before January 1, 2019, with respect to the tax imposed pursuant
to Section 17041 of the Revenue and Taxation Code, the income tax
bracket and the rate of 9.3 percent set forth in paragraph (1) of
subdivision (c) of Section 17041 of the Revenue and Taxation Code
shall be modified by each of the following:
(A) (i) For that portion of taxable income that is over three
hundred forty thousand dollars ($340,000) but not over four hundred
eight thousand dollars ($408,000), the tax rate is 10.3 percent of
the excess over three hundred forty thousand dollars ($340,000).
(ii) For that portion of taxable income that is over four hundred
eight thousand dollars ($408,000) but not over six hundred eighty
thousand dollars ($680,000), the tax rate is 11.3 percent of the
excess over four hundred eight thousand dollars ($408,000).
(iii) For that portion of taxable income that is over six hundred
eighty thousand dollars ($680,000), the tax rate is 12.3 percent of
the excess over six hundred eighty thousand dollars ($680,000).
(B) The income tax brackets specified in clauses (i), (ii), and
(iii) of subparagraph (A) shall be recomputed, as otherwise provided
in subdivision (h) of Section 17041 of the Revenue and Taxation Code,
only for taxable years beginning on and after January 1, 2013.
(C) (i) For purposes of subdivision (g) of Section 19136 of the
Revenue and Taxation Code, this paragraph shall be considered to be
chaptered on the date it becomes effective.
(ii) For purposes of Part 10 (commencing with Section 17001) of,
and Part 10.2 (commencing with Section 18401) of, Division 2 of the
Revenue and Taxation Code, the modified tax brackets and tax rates
established and imposed by this paragraph shall be deemed to be
established and imposed under Section 17041 of the Revenue and
Taxation Code.
(D) This paragraph shall become inoperative on December 1, 2019.
(g) (1) The Controller, pursuant to his or her statutory
authority, may perform audits of expenditures from the Local Revenue
Fund 2011 and any County Local Revenue Fund 2011, and shall audit the
Education Protection Account to ensure that those funds are used and
accounted for in a manner consistent with this section.
(2) The Attorney General or local district attorney shall
expeditiously investigate, and may seek civil or criminal penalties
for, any misuse of moneys from the County Local Revenue Fund 2011 or
the Education Protection Account.
Sixth-- That Section 1 of Article XIII B thereof
is amended to read:
SEC. 1. (a) The total annual
appropriations subject to limitation of the State
and of each local government for each two-year fiscal
period shall not exceed the appropriations limit of the
entity of government for the prior year State
for the prior two-year fiscal period adjusted for the change
in the cost of living and the change in population, except as
otherwise provided in this article. For purposes of the 2019-21
fiscal period, "prior two-year fiscal period," as used in this
subdivision, means the 2017-18 and 2018-19 fiscal years.
(b) The total annual appropriations subject to limitation of each
local government for each fiscal year shall not exceed the
appropriations limit of the local government for the prior fiscal
year adjusted for the change in the cost of living and the change in
population, except as otherwise provided in this article.
Seventh-- That Section 2 of Article XIII B thereof
is amended to read:
SEC. 2. (a) (1) Fifty percent of all revenues received by the
State in a fiscal year and in the fiscal year immediately
following it two-year fiscal period in excess of
the amount which that may be
appropriated by the State in compliance with this article during that
fiscal year and the fiscal year immediately following it
two-year fiscal period shall be transferred and
allocated, from a fund established for that purpose, pursuant to
Section 8.5 of Article XVI.
(2) Fifty percent of all revenues received by the State in a
fiscal year and in the fiscal year immediately following it
two-year fiscal period in excess of the amount
which that may be appropriated by the
State in compliance with this article during that fiscal
year and the fiscal year immediately following it
two-year fiscal period shall be returned by a revision of tax
rates or fee schedules within the next two subsequent fiscal
years. two-year fiscal period.
(b) All revenues received by an entity of government, other than
the State, in a fiscal year and in the subsequent fiscal
year immediately following it in excess of the
amount which that may be appropriated
by the entity in compliance with this article during that fiscal year
and the subsequent fiscal year immediately
following it shall be returned by a revision of tax rates
or fee schedules within the next two subsequent fiscal years.
Eighth-- That Section 3 of Article XIII B thereof
is amended to read:
SEC. 3. The appropriations limit for any two-year fiscal
period, in the case of the State, or for any fiscal
year year, in the case of an entity of government
other than the State, pursuant to Sec.
Section 1 shall be adjusted as follows:
(a) In the event that If
the financial responsibility of providing services is transferred, in
whole or in part, whether by annexation, incorporation or otherwise,
from one entity of government to another, then
then, for the year fiscal year, or
two-year fiscal period in the case of the State, in which such
transfer becomes effective the appropriations limit of the
transferee entity shall be increased by such reasonable amount as the
said entities shall mutually agree to and the
appropriations limit of the transferor entity shall be decreased by
the same amount.
(b) In the event that If the
financial responsibility of providing services is transferred, in
whole or in part, from an entity of government to a private entity,
or the financial source for the provision of services is transferred,
in whole or in part, from other revenues of an entity of government,
to regulatory licenses, user charges or user fees, then ,
for the year fiscal year, or two-year fiscal
period in the case of the State, of such
that transfer , the appropriations limit of
such entity of government shall be decreased accordingly.
(c) (1) In the event If an emergency
is declared by the legislative body of an entity of government, the
appropriations limit of the affected entity of government may be
exceeded provided that the appropriations limits in the following
three years two fiscal periods, in the case
of the State, or three fiscal years, in the case of the local
government, are reduced accordingly to prevent an aggregate
increase in appropriations resulting from the emergency.
(2) In the event If an emergency is
declared by the Governor, appropriations approved by a two-thirds
vote of the legislative body of an affected entity of government to
an emergency account for expenditures relating to that emergency
shall not constitute appropriations subject to limitation. As used in
this paragraph, "emergency" means the existence, as declared by the
Governor, of conditions of disaster or of extreme peril to the safety
of persons and property within the State, or parts thereof, caused
by such conditions as attack or probable or imminent attack by an
enemy of the United States, fire, flood, drought, storm, civil
disorder, earthquake, or volcanic eruption.
Ninth-- That Section 6 of Article XIII B thereof
is amended to read:
SEC. 6. (a) Whenever the Legislature or any state agency
mandates a new program or higher level of service on any local
government, the State shall provide a subvention of funds to
reimburse that local government for the costs of the program or
increased level of service, except that the Legislature may, but need
not, provide a subvention of funds for the following mandates:
(1) Legislative mandates requested by the local agency affected.
(2) Legislation defining a new crime or changing an existing
definition of a crime.
(3) Legislative mandates enacted prior to
before January 1, 1975, or executive orders or regulations
initially implementing legislation enacted prior to
before January 1, 1975.
(4) Legislative mandates contained in statutes within the scope of
paragraph (7) of subdivision (b) of Section 3 of Article I.
(b) (1) Except as provided in paragraph (2), for the 2005-06
fiscal year and every subsequent fiscal year,
year through the 2018-19 fiscal year, and for the 2019-21
fiscal period and every subsequent two-year fiscal period, for
a mandate for which the costs of a local government claimant have
been determined in a preceding fiscal year or two-year fiscal
period, as applicable to be payable by the State pursuant to
law, the Legislature shall either appropriate, in the annual
Budget Act, the full payable amount that has not been
previously paid, or suspend the operation of the mandate for the
fiscal year two-year fiscal period for
which the annual Budget Act is applicable
applies in a manner prescribed by law.
(2) Payable claims for costs incurred prior to
before the 2004-05 fiscal year that have not been paid
prior to before the 2005-06 fiscal year
may be paid over a term of years, as prescribed by law.
(3) Ad valorem property tax revenues shall not be used to
reimburse a local government for the costs of a new program or higher
level of service.
(4) This subdivision applies to a mandate only as it affects a
city, county, city and county, or special district.
(5) This subdivision shall not apply to a requirement to provide
or recognize any procedural or substantive protection, right,
benefit, or employment status of any local government employee or
retiree, or of any local government employee organization, that
arises from, affects, or directly relates to future, current, or past
local government employment and that constitutes a mandate subject
to this section.
(c) A mandated new program or higher level of service includes a
transfer by the Legislature from the State to cities, counties,
cities and counties, or special districts of complete or partial
financial responsibility for a required program for which the State
previously had complete or partial financial responsibility.
Tenth-- That Section 8 of Article XIII B thereof
is amended to read:
SEC. 8. As used in this article and except as otherwise
expressly provided herein:
(a) "Appropriations subject to limitation" of the State means any
authorization to expend during a fiscal year
two-year fiscal period the proceeds of taxes levied by or for
the State, exclusive of state subventions for the use and operation
of local government (other other than
subventions made pursuant to Section 6) 6,
and further exclusive of refunds of taxes, benefit payments
from retirement, unemployment insurance, and disability insurance
funds.
(b) "Appropriations subject to limitation" of an entity of local
government means any authorization to expend during a fiscal year the
proceeds of taxes levied by or for that entity and the proceeds of
state subventions to that entity (other other
than subventions made pursuant to Section 6)
6, exclusive of refunds of taxes.
(c) "Proceeds of taxes" shall include,
includes, but not be is not
restricted to, all tax revenues and the proceeds to an entity of
government, government from (1)
regulatory licenses, user charges, and user fees to the extent that
those proceeds exceed the costs reasonably borne by that entity in
providing the regulation, product, or service, and (2) the investment
of tax revenues. With respect to any local government, "proceeds of
taxes" shall include includes
subventions received from the State, other than pursuant to Section
6, and, with respect to the State, proceeds of taxes shall
exclude such "proceeds of taxes" excludes these
subventions.
(d) "Local government" means any city, county, city and county,
school district, special district, authority, or other political
subdivision of or within the State.
(e) (1) "Change in the cost of living" for the State, a school
district, or a community college district means the percentage change
in California per capita personal income from the preceding
year. two-year fiscal period, in the case of the
State, or the preceding fiscal year, in the case of a school district
or community college district.
(2) "Change in the cost of living" for an entity of local
government, other than a school district or a community college
district, shall be either (A) the percentage change in California per
capita personal income from the preceding year, or (B) the
percentage change in the local assessment roll from the preceding
year for the jurisdiction due to the addition of local nonresidential
new construction. Each entity of local government shall select its
change in the cost of living pursuant to this paragraph annually by a
recorded vote of the entity's governing body.
(f) (1) "Change in population" of any entity
of government, other than the State, a school district, or a
community college district, shall be determined by a method
prescribed by the Legislature.
"Change
(2) "Change in population" of a
school district or a community college district shall be
means the percentage change in the average daily
attendance of the school district or the number of full-time
equivalent students of the community college district from the
preceding fiscal year, as determined by a method prescribed by the
Legislature.
"Change
(3) "Change in population" of the
State shall be determined by adding (1) the percentage change in the
State's population multiplied by the percentage of the State's
budget in the prior fiscal year preceding
two-year fiscal period that is expended for other than
educational purposes for kindergarten and grades one to 12,
inclusive, and the community colleges, and (2) the percentage change
in the total statewide average daily attendance in kindergarten and
grades one to 12, inclusive, and the number of full-time
equivalent students of the community colleges, multiplied by
the percentage of the State's budget in the prior fiscal
year preceding two-year fiscal period that is
expended for educational purposes for kindergarten and grades one to
12, inclusive, and the community colleges.
Any
(4) Any determination of
population pursuant to this subdivision, other than that measured by
average daily attendance, attendance or the
number of full-time equivalent students, shall be revised, as
necessary, to reflect the periodic census conducted by the United
States Department of Commerce, or successor department.
(g) "Debt service" means appropriations required to pay the cost
of interest and redemption charges, including the funding of any
reserve or sinking fund required in connection therewith, on
indebtedness existing or legally authorized as of January 1, 1979, or
on bonded indebtedness thereafter approved according to law by a
vote of the electors of the issuing entity voting in an election for
that purpose.
(h) The "appropriations limit" of each entity of government for
each fiscal year or two-year fiscal period, as applicable,
is that amount which that total annual
appropriations subject to limitation may not exceed under Sections 1
and 3. However, the "appropriations limit" of each entity of
government for the 1978-79 fiscal year 1978-79
is the total of the appropriations subject to limitation of
the entity for that fiscal year. For the 1978-79 fiscal
year 1978-79, year, state subventions
to local governments, exclusive of federal grants, are deemed to have
been derived from the proceeds of state taxes.
(i) Except as otherwise provided in Section 5, "appropriations
subject to limitation" do not include local agency loan funds or
indebtedness funds, investment (or authorizations to invest) funds of
the State, or of an entity of local government in accounts at banks
or savings and loan associations or in liquid securities.
(j) For purposes of the 2019-21 fiscal period, "preceding two-year
fiscal period," as used in this section, means the 2017-18 and
2018-19 fiscal years.
Eleventh-- That Section 10.5 of Article XIII B
thereof is amended to read:
SEC. 10.5. (a) For fiscal
years beginning on or after July 1, 1990, the appropriations limit
of each entity of government shall be the appropriations limit for
the 1986-87 fiscal year year, adjusted
for the changes made from that fiscal year pursuant to this article,
as amended by the measure adding this section, adjusted for the
changes required by Section 3.
(b) In the case of the State, for the two-year fiscal period
commencing on July 1, 2019, the appropriations limit shall be the
aggregate of the appropriations limits for the 2017-18 and 2018-19
fiscal years, adjusted for the changes made pursuant to this article
and adjusted for the changes required by Section 3.
Twelfth-- That Section 14 is added to Article XIII
B thereof, to read:
SEC. 14. State subventions provided during a two-year fiscal
period commencing on or after July 1, 2019, to an entity of local
government shall be applied to an appropriate fiscal year as
specified by statute, for purposes of determining appropriations
subject to limitation for that entity.
Thirteenth-- That Section 8 of Article XVI thereof
is amended to read:
SEC. 8. (a) From all state revenues there shall first be set
apart the moneys to be applied by the State for support of the public
school system and public institutions of higher education.
(b) Commencing with the 1990-91 fiscal year,
For the 2019-21 fiscal period and each subsequent two-year
fiscal period, the moneys to be applied by the State for the
support of school districts and community college districts shall be
not less than the greater of the following amounts:
(1) The amount which, that, as a
percentage of General Fund revenues which
that may be appropriated pursuant to Article XIII B, equals the
percentage of General Fund revenues appropriated for school
districts and community college districts, respectively, in
fiscal year 1986-87. the 1986-87 fiscal year.
(2) The amount required to ensure that the total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B and
allocated local proceeds of taxes shall not be less than the total
amount from these sources in the prior fiscal year,
two-year fiscal period, excluding any revenues
allocated pursuant to subdivision (a) of Section 8.5, adjusted for
changes in enrollment and adjusted for the change in the cost of
living pursuant to paragraph (1) of subdivision (e) of Section 8 of
Article XIII B. This paragraph shall be operative only in a
fiscal year two-year fiscal period in which the
percentage growth in California per capita personal income is less
than or equal to the percentage growth in per capita General Fund
revenues plus one half of one
one-half of 1 percent. For purposes of the 2019-21
fiscal period, "prior two-year fiscal period," as used in this
paragraph and paragraph (3), means the 2017-18 and 2018-19 fiscal
years.
(3) (A) The amount required to ensure that the total allocations
to school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B and
allocated local proceeds of taxes shall equal the total amount from
these sources in the prior fiscal year,
two-year fiscal period, excluding any revenues allocated
pursuant to subdivision (a) of Section 8.5, adjusted for changes in
enrollment and adjusted for the change in per capita General Fund
revenues.
(B) In addition, an amount equal to one-half of one
1 percent times the prior year
two-year fiscal period total allocations to
school districts and community colleges
college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B and allocated local proceeds
of taxes, excluding any revenues allocated pursuant to subdivision
(a) of Section 8.5, adjusted for changes in enrollment.
(C) This paragraph (3) shall be operative only
in a fiscal year two-year fiscal period
in which the percentage growth in California per capita personal
income in a fiscal year two-year fiscal
period is greater than the percentage growth in per capita
General Fund revenues plus one half of one
one-half of 1 percent.
(c) In any fiscal year, two-year fiscal
period, if the amount computed pursuant to paragraph (1) of
subdivision (b) exceeds the amount computed pursuant to paragraph (2)
of subdivision (b) by a difference that exceeds one and
one-half 1 1/2 percent of General
Fund revenues, the amount in excess of one and one-half
1 1/2 percent of General Fund
revenues shall not be considered allocations to school districts and
community colleges college districts
for purposes of computing the amount of state aid pursuant to
paragraph (2) or 3 (3) of subdivision
(b) in the subsequent fiscal year. two-year
fiscal period.
(d) In any fiscal year two-year fiscal
period in which school districts and community college
districts are allocated funding pursuant to paragraph (3) of
subdivision (b) or pursuant to subdivision (h),
(g), they shall be entitled to a maintenance factor, equal
to the difference between (1) the amount of General Fund moneys
which that would have been appropriated
pursuant to paragraph (2) of subdivision (b) if that paragraph had
been operative or the amount of General Fund moneys which
that would have been appropriated pursuant to
subdivision (b) had subdivision (b) not been suspended, and (2) the
amount of General Fund moneys actually appropriated to school
districts and community college districts in that fiscal
year. two-year fiscal period.
(e) The maintenance factor for school districts and community
college districts determined pursuant to subdivision (d) shall be
adjusted annually each two-year fiscal period
for changes in enrollment, and adjusted for the change in the
cost of living pursuant to paragraph (1) of subdivision (e) of
Section 8 of Article XIII B, until it has been allocated in full. The
maintenance factor shall be allocated in a manner determined by the
Legislature in each fiscal year two-year
fiscal period in which the percentage growth in per capita
General Fund revenues exceeds the percentage growth in California per
capita personal income. The maintenance factor shall be reduced each
year two-year fiscal period by the
amount allocated by the Legislature in that fiscal year.
two-year fiscal period. The minimum maintenance
factor amount to be allocated in a fiscal year
two-year fiscal period shall be equal to the product of
General Fund revenues from proceeds of taxes and one-half of the
difference between the percentage growth in per capita General Fund
revenues from proceeds of taxes and in California per capita personal
income, not to exceed the total dollar amount of the maintenance
factor. The adjustments and repayment shall also include the
maintenance factors, if any, determined pursuant to
subdivision (d) before December 3, 2018.
(f) For purposes of this section, "changes in enrollment" shall be
measured by the percentage change in average daily attendance.
However, in any fiscal year, two-year fiscal
period, there shall be no adjustment for decreases in
enrollment between the prior fiscal year
two-year fiscal period and the current fiscal year
two-year fiscal period unless there have been
decreases in enrollment between the second prior fiscal year
two-year fiscal period and the prior
fiscal year and between the third prior fiscal year and the second
prior fiscal year. two-year fiscal period. For purposes
of this subdivision, "prior two-year fiscal period," as applied
before July 1, 2019, is deemed to refer to the average of the
enrollments for two fiscal year s, as appropriate.
(h)
(g) Subparagraph (B) of paragraph (3) of subdivision
(b) may be suspended for one year two-year
fiscal period only when made part of or included within any
bill enacted pursuant to Section 12 of Article IV. All other
provisions of subdivision (b) may be suspended for one year
two-year fiscal period by the enactment of an
urgency statute pursuant to Section 8 of Article IV, provided that
the urgency statute may not be made part of or included within any
bill enacted pursuant to Section 12 of Article IV.
Fourteenth-- That Section 8.5 of Article XVI
thereof is amended to read:
SEC. 8.5. (a) In addition to the amount required to be applied
for the support of school districts and community college districts
pursuant to Section 8, the Controller shall during each
fiscal year during each two-year fiscal period the
Controller shall transfer and allocate all revenues available
pursuant to paragraph 1 (1) of
subdivision (a) of Section 2 of Article XIII B to that portion of the
State School Fund restricted for elementary and high school
purposes, and to that portion of the State School Fund restricted for
community college purposes, respectively, in proportion to the
enrollment in school districts and community college districts
respectively.
(1) With respect to funds allocated to that portion of the State
School Fund restricted for elementary and high school purposes, no
transfer or allocation of funds pursuant to this section shall be
required at any time that the Director of Finance and the
Superintendent of Public Instruction mutually determine that current
annual expenditures per student equal or exceed the average annual
expenditure per student of the 10 states with the highest annual
expenditures per student for elementary and high schools, and that
average class size equals or is less than the average class size of
the 10 states with the lowest class size for elementary and high
schools.
(2) With respect to funds allocated to that portion of the State
School Fund restricted for community college purposes, no transfer or
allocation of funds pursuant to this section shall be required at
any time that the Director of Finance and the Chancellor of the
California Community Colleges mutually determine that current annual
expenditures per student for community colleges in this State equal
or exceed the average annual expenditure per student of the 10 states
with the highest annual expenditures per student for community
colleges.
(b) Notwithstanding the provisions of Article
XIII B, funds allocated pursuant to this section shall
do not constitute appropriations subject to
limitation.
(c) From any funds transferred to the State School Fund pursuant
to subdivision (a), the Controller shall each year
shall, each two-year fiscal period, allocate to each
school district and community college district an equal amount per
enrollment in school districts from the amount in that portion of the
State School Fund restricted for elementary and high school purposes
and an equal amount per enrollment in community college districts
from that portion of the State School Fund restricted for community
college purposes.
(d) All revenues allocated pursuant to subdivision (a) shall be
expended solely for the purposes of instructional improvement and
accountability as required by law.
(e) Any school district maintaining an elementary or secondary
school shall develop and cause to be prepared an annual audit
accounting for such funds and shall adopt a School Accountability
Report Card for each school.
Fifteenth-- That Section 20 of Article XVI thereof
is amended to read:
SEC. 20. (a) (1) The Budget Stabilization Account is hereby
created in the General Fund.
(2) For the 2015-16 fiscal year and each fiscal year
2019-21 fiscal period and each two-year fiscal period
thereafter, based on the Budget Act for the fiscal
year, two-year fiscal period, the Controller
shall transfer from the General Fund to the Budget Stabilization
Account, no later than October 1, 1 of the
second year of the two-year fiscal period, a sum equal to 1.5
percent of the estimated amount of General Fund revenues for that
fiscal year. two-year fiscal period.
(b) (1) For the 2015-16 fiscal year and each fiscal year
2019-21 fiscal period and each two-year fiscal period
thereafter, based on the Budget Act for the fiscal
year, two-year fiscal period, the Department of
Finance shall provide to the Legislature all of the following
information:
(A) An estimate of the amount of General Fund proceeds of taxes
that may be appropriated pursuant to Article XIII B for that
fiscal year. two-year fiscal period.
(B) (i) An estimate of that portion of the General Fund proceeds
of taxes identified in subparagraph (A) that is derived from personal
income taxes paid on net capital gains.
(ii) The portion of the estimate in clause (i) that exceeds 8
percent of the estimate made under subparagraph (A).
(C) That portion of the state's funding obligation under Section 8
that results from including the amount calculated under clause (ii)
of subparagraph (B), if any, as General Fund proceeds of taxes.
(D) The amount of any appropriations described in clause (ii) of
subparagraph (B) of paragraph (1) of, or subparagraph (C) of
paragraph (2) of, subdivision (c), that are made from the revenues
described in clause (ii) of subparagraph (B) of this paragraph.
(E) The amount resulting from subtracting the combined values
calculated under subparagraphs (C) and (D) from the value calculated
under clause (ii) of subparagraph (B). If less than zero, the amount
shall be considered zero for this purpose.
(F) The lesser of the amount calculated under subparagraph (E) or
the amount of transfer resulting in the balance in the Budget
Stabilization Account reaching the limit specified in subdivision
(e).
(2) In the 2016-17 fiscal year, with respect to the
2015-16 fiscal year only, and in the 2017-18 fiscal year and each
fiscal year thereafter, separately with respect to each of the two
next preceding fiscal years, 2019-21 fiscal period and
each two-year fiscal period thereafter, separately with respect to
each of the two next preceding two-year fiscal periods, the
Department of Finance shall calculate all of the following, using the
same methodology used for the relevant fiscal year,
two-year fiscal period and provide
those calculations to the Legislature:
(A) An updated estimate of the amount of General Fund proceeds of
taxes that may be appropriated pursuant to Article XIII B.
(B) (i) An updated estimate of that portion of the General Fund
proceeds of taxes identified in subparagraph (A) that is derived from
personal income taxes paid on net capital gains.
(ii) That portion of the updated estimate in clause (i) that
exceeds 8 percent of the updated estimate made under subparagraph
(A).
(C) The updated calculation of that portion of the state's funding
obligation under Section 8 that results from including the updated
amount calculated under clause (ii) of subparagraph (B), if any, as
General Fund proceeds of taxes.
(D) The amount of any appropriations described in clause (ii) of
subparagraph (B) of paragraph (1) of, or subparagraph (C) of
paragraph (2) of, subdivision (c), that are made from the revenues
described in clause (ii) of subparagraph (B) of paragraph (1).
(E) The amount resulting from subtracting the combined values
calculated under subparagraphs (C) and (D) from the value calculated
under clause (ii) of subparagraph (B). If less than zero, the amount
shall be considered zero for this purpose.
(F) The amount previously transferred for the fiscal year
two-year fiscal period by the Controller from
the General Fund to the Budget Stabilization Account pursuant to
subdivisions (c) and (d).
(G) The lesser of (i) the amount, not less than zero, resulting
from subtracting, from the amount calculated under subparagraph (E),
the value of any suspension or reduction of transfer pursuant to
paragraph (1) of subdivision (a) of Section 22 previously approved by
the Legislature for the relevant fiscal year,
two-year fiscal period, and the amount previously
transferred for that fiscal year two-year
fiscal period by the Controller as described in subparagraph
(F), or (ii) the amount of transfer resulting in the balance in the
Budget Stabilization Account reaching the limit as specified in
subdivision (e).
(c) (1) (A) By October 1 of the 2015-16 fiscal year and
each fiscal year second year of the 2019-21 fiscal
period and each two-year fiscal period thereafter to the
2029-30 fiscal year, 2029-31 fiscal period,
inclusive, based on the estimates set forth in the
annual Budget Act pursuant to paragraphs (2) and (3) of
subdivision (h), and the sum identified in paragraph (2) of
subdivision (a), the Controller shall transfer amounts from the
General Fund and the Budget Stabilization Account, pursuant to a
schedule provided by the Director of Finance, as provided in
subparagraph (B).
(B) Notwithstanding any other provision of this section, in the
fiscal year two-year fiscal period to
which the Budget Act identified in subparagraph (A) applies:
(i) Fifty percent of both the amount identified in paragraph (2)
of subdivision (a), and the amount resulting from subtracting the
value calculated under subparagraph (C) of paragraph (1) of
subdivision (b) from the value calculated under clause (ii) of
subparagraph (B) of paragraph (1) of subdivision (b), shall be
transferred from the General Fund to the Budget Stabilization
Account.
(ii) The remaining 50 percent shall be appropriated by the
Legislature for one or more of the following obligations and
purposes:
(I) Unfunded prior fiscal year General Fund obligations pursuant
to Section 8 that existed on July 1, 2014.
(II) Budgetary loans to the General Fund, from funds outside the
General Fund, that had outstanding balances on January 1, 2014.
(III) Payable claims for mandated costs incurred prior to
before the 2004-05 fiscal year that have not
yet been paid, and that pursuant to paragraph (2) of subdivision (b)
of Section 6 of Article XIII B are permitted to be paid over a term
of years, as prescribed by law.
(IV) Unfunded liabilities for state-level pension plans and
prefunding other postemployment benefits, in excess of current base
amounts as established for the fiscal year
two-year fiscal period in which the funds would otherwise be
transferred to the Budget Stabilization Account. For the purpose of
this subclause, current base amounts are those required to be paid
pursuant to law, an approved memorandum of understanding, benefit
schedules established by the employer or entity authorized to
establish those contributions for employees excluded or exempted from
collective bargaining, or any combination of these. To qualify under
this subclause, the appropriation shall supplement and not supplant
funding that would otherwise be made available to pay for the
obligations described in this subclause for the fiscal year
two-year fiscal period or the subsequent
fiscal year. two-year fiscal period.
(2) (A) By October 1 of the 2030-31 fiscal year and each
fiscal year second year of the 2031-33 fiscal period
and each two-year fiscal period thereafter, based on the
estimates set forth in the annual Budget Act
pursuant to paragraphs (2) and (3) of subdivision (h), the Controller
shall transfer amounts from the General Fund to the Budget
Stabilization Account, pursuant to a schedule provided by the
Director of Finance, as provided in subparagraph (B).
(B) In the fiscal year two-year fiscal
period to which the Budget Act identified in subparagraph (A)
applies, both the amount identified in paragraph (2) of subdivision
(a), and the amount resulting from subtracting the value calculated
under subparagraph (C) of paragraph (1) of subdivision (b) from the
value calculated under clause (ii) of subparagraph (B) of paragraph
(1) of subdivision (b), shall be transferred from the General Fund to
the Budget Stabilization Account.
(C) Notwithstanding any other provision of this section, the
Legislature may appropriate up to 50 percent of both the amount
identified in paragraph (2) of subdivision (a), and of the amount
resulting from subtracting the value calculated under subparagraph
(C) of paragraph (1) of subdivision (b) from the value calculated
under clause (ii) of subparagraph (B) of paragraph (1) of subdivision
(b), for one or more of the obligations and purposes described in
clause (ii) of subparagraph (B) of paragraph (1).
(3) The transfers described in this subdivision are subject to
suspension or reduction pursuant to paragraph (1) of subdivision (a)
of Section 22.
(d) By October 1 of the 2016-17 fiscal year and each
fiscal year second year of the 2019-21 fiscal period
and each two-year fiscal period thereafter, based on the
estimates set forth in the annual biennial
Budget Act pursuant to paragraphs (4) and (5) of subdivision
(h), the Controller shall transfer amounts between the General Fund
and the Budget Stabilization Account pursuant to a schedule provided
by the Director of Finance, as follows:
(1) If the amount in subparagraph (G) of paragraph (2) of
subdivision (b) is greater than zero, transfer that amount from the
General Fund to the Budget Stabilization Account, subject to any
suspension or reduction of this transfer pursuant to paragraph (1) of
subdivision (a) of Section 22.
(2) If the amount described in subparagraph (F) of paragraph (2)
of subdivision (b) is greater than the amount calculated under
subparagraph (E) of paragraph (2) of subdivision (b), transfer that
excess amount from the Budget Stabilization Account back to the
General Fund.
(e) Notwithstanding any other provision of this section, the
amount of a transfer to the Budget Stabilization Account pursuant to
paragraph (2) of subdivision (a) and subdivisions (c) and (d) for any
fiscal year tw o-year fiscal
period shall not exceed an amount that would result in a
balance in the account that, when the transfer is made, exceeds 10
percent of the amount of General Fund proceeds of taxes for the
fiscal year two-year fiscal period
estimated pursuant to subdivision (b). For any fiscal year,
two-year fiscal period, General Fund proceeds of
taxes that, but for this paragraph, would have been transferred to
the Budget Stabilization Account may be expended only for
infrastructure, as defined by Section 13101 of the Government Code,
as that section read on January 1, 2014, including deferred
maintenance thereon. on infrastructure.
(f) The funds described in subdivision (b) as General Fund
proceeds of taxes are General Fund proceeds of taxes for purposes of
Section 8 for the fiscal year two-year fiscal
period to which those proceeds are attributed, but are not
deemed to be additional General Fund proceeds of taxes on the basis
that the funds are thereafter transferred from the Budget
Stabilization Account to the General Fund.
(g) The Controller may utilize use
funds in the Budget Stabilization Account, that he or she determines
to currently be unnecessary for the purposes of
this section, to help manage General Fund daily cashflow needs. Any
use pursuant to this subdivision shall not interfere with the
purposes of the Budget Stabilization Account.
(h) The annual Budget Act shall include the
estimates described in all of the following:
(1) Paragraph (2) of subdivision (a).
(2) Clause (ii) of subparagraph (B) of paragraph (1) of
subdivision (b).
(3) Subparagraph (F) of paragraph (1) of subdivision (b).
(4) Clause (ii) of subparagraph (B) of paragraph (2) of
subdivision (b).
(5) Subparagraph (G) of paragraph (2) of subdivision (b).
Sixteenth-- That Section 21 of Article XVI thereof
is amended to read:
SEC. 21. (a) The Public School System Stabilization Account is
hereby created in the General Fund.
(b) On or before October 1 of each fiscal year,
the second year of each two-year fiscal period,
commencing with the 2015-16 fiscal year,
2019-21 fiscal period, based on the amounts identified in the
annual Budget Act pursuant to subdivision (b) of
Section 20, the Controller shall transfer, pursuant to a schedule
provided by the Director of Finance, amounts from the General Fund to
the Public School System Stabilization Account as follows:
(1) (A) For the 2015-16 fiscal year, and for each fiscal
year 2019-21 fiscal period, and for each two-year
fiscal period thereafter, any positive amount identified in
subparagraph (C) of paragraph (1) of subdivision (b) of Section 20
shall be transferred from the General Fund to the Public School
System Stabilization Account in the amount calculated under
subparagraph (B), subject to any reduction or suspension of this
transfer pursuant to any other provision of this section or paragraph
(3) of subdivision (a) of Section 22.
(B) The Director of Finance shall calculate the amount by which
the positive amount identified in subparagraph (C) of paragraph (1)
of subdivision (b) of Section 20, in combination with all other
moneys required to be applied by the State for the support of school
districts and community college districts for that fiscal
year two-year fiscal period pursuant to Section
8, exceeds the sum of the total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B and allocated local proceeds
of taxes in the prior fiscal year, two-year
fiscal period, plus any allocations from the Public School
System Stabilization Account in the prior fiscal year,
two-year fiscal period, less any transfers to
the Public School System Stabilization Account pursuant to this
section in the prior fiscal year two-year
fiscal period, and any revenues allocated pursuant to
subdivision (a) of Section 8.5, adjusted for the percentage change in
average daily attendance and adjusted for the higher of the change
in the cost of living pursuant to paragraph (1) of subdivision (e) of
Section 8 of Article XIII
B or the cost of living adjustment applied to school district and
community college district general purpose apportionments.
(2) (A) Commencing with the 2016-17 fiscal year, and for
each fiscal year 2019-21 fiscal period, and for each
two-year fiscal period thereafter, to the extent the amount
calculated under this paragraph exceeds the amounts previously
transferred by the Controller from the General Fund to the Public
School System Stabilization Account for a preceding fiscal
year, prior two-year fiscal period, any positive
amount calculated pursuant to subparagraph (C) of paragraph (2) of
subdivision (b) of Section 20 for that fiscal year
two-year fiscal period shall be transferred from the
General Fund to the Public School System Stabilization Account in the
amount calculated under subparagraph (B), subject to any reduction
or suspension of this transfer pursuant to any other provision of
this section or paragraph (3) of subdivision (a) of Section 22.
(B) The Director of Finance shall calculate the amount by which
the positive amount identified in subparagraph (C) of paragraph (2)
of subdivision (b) of Section 20, in combination with all other
moneys required to be applied by the State for the support of school
districts and community college districts for that fiscal
year two-year fiscal period pursuant to Section
8, exceeds the sum of the total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B and allocated local proceeds
of taxes in the prior fiscal year, two-year
fiscal period, plus any allocations from the Public School
System Stabilization Account in the prior fiscal year,
two-year fiscal period, less any transfers to
the Public School System Stabilization Account pursuant to this
section in the prior fiscal year two-year
fiscal period, and any revenues allocated pursuant to
subdivision (a) of Section 8.5, adjusted for the percentage change in
average daily attendance and adjusted for the higher of the change
in the cost of living pursuant to the paragraph (1) of subdivision
(e) of Section 8 of Article XIII B or the cost of living adjustment
applied to school district and community college district general
purpose apportionments.
(c) Commencing with the 2016-17 fiscal year, and for each
fiscal year 2019-21 fiscal period, and for each
two-year fiscal period thereafter, if the amount calculated
pursuant to subparagraph (C) of paragraph (2) of subdivision (b) of
Section 20 for a fiscal year two-year fiscal
period is less than the amounts previously transferred by the
Controller from the General Fund to the Public School System
Stabilization Account for that fiscal year,
two-year fiscal period, the amount of this difference shall be
appropriated and allocated by the State from the Public School System
Stabilization Account for the support of school districts and
community college districts.
(d) Notwithstanding any other provision of this section, the
amount transferred to the Public School System Stabilization Account
pursuant to subdivision (b) for a fiscal year
two-year fiscal period shall not exceed the amount by which
the amount of state support calculated pursuant to paragraph (1) of
subdivision (b) of Section 8 exceeds the amount of state support
calculated pursuant to paragraph (2) of subdivision (b) of Section 8
for that fiscal year. two-year fiscal period.
If the amount of state support calculated pursuant to
paragraph (1) of subdivision (b) of Section 8 does not exceed the
amount of state support calculated pursuant to paragraph (2) of
subdivision (b) of Section 8 for a fiscal year,
two-year fiscal period, no amount shall be transferred to
the Public School System Stabilization Account pursuant to
subdivision (b) for that fiscal year.
two-year fiscal period.
(e) Notwithstanding any other provision of this section, no amount
shall be transferred to the Public School System Stabilization
Account pursuant to subdivision (b) for a fiscal year
two-year fiscal period for which a maintenance
factor is determined pursuant to subdivision (d) of Section 8.
(f) Notwithstanding any other provision of this section, no amount
shall be transferred to the Public School System Stabilization
Account pursuant to subdivision (b) until the maintenance factor
determined pursuant to subdivisions (d) and (e) of Section 8 for
fiscal years prior to before the
2014-15 fiscal year has been fully allocated. Transfers may be made
beginning in the fiscal year two-year fiscal
period following the fiscal year
two-year fiscal period in which it is determined, based on the
Budget Act for that fiscal year, two-year
fiscal period, that this condition will be met. If a transfer
is made for a fiscal year two-year fiscal
period for which it is later determined that this condition has
not been met, the amount of the transfer shall be appropriated and
allocated from the Public School System Stabilization Account for the
support of school districts and community college districts. No
transfer shall be made for a year two-year
fiscal period for which it was determined, based on the Budget
Act for that fiscal year, two-year fiscal
period, that this condition would not be met but was
subsequently determined to have been met in that year or a
prior fiscal year. two-year fiscal period or a prior
two-year fiscal period.
(g) Notwithstanding any other provision of this section, no amount
shall be transferred to the Public School System Stabilization
Account for any fiscal year two-year fiscal
period for which any of the provisions of subdivision (b) of
Section 8 are suspended pursuant to subdivision (h)
(g) of Section 8.
(h) Notwithstanding any other provision of this section, for any
fiscal year, two-year fiscal period the
amount of a transfer to the Public School System Stabilization
Account pursuant to subdivision (b) shall not exceed an amount that
would result in a balance in the account that is in excess of 10
percent of the total allocations to school districts and community
college districts from General Fund proceeds of taxes appropriated
pursuant to Article XIII B and allocated local proceeds of taxes for
that fiscal year two-year fiscal period
pursuant to Section 8. For any fiscal year,
two-year fiscal period, General Fund proceeds of taxes that,
but for this subdivision, would have been transferred to the Public
School System Stabilization Account shall be applied by the State for
the support of school districts and community colleges.
(i) In any fiscal year two-year fiscal
period in which the amount required to be applied by the State
for the support of school districts and community college districts
for that fiscal year two-year fiscal period
pursuant to Section 8 is less than the total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B and
allocated local proceeds of taxes in the prior fiscal year,
two-year fiscal period plus any allocations from
the Public School System Stabilization Account in the prior
fiscal year, two-year fiscal period, less any
transfers to the Public School System Stabilization Account in the
prior fiscal year two-year fiscal
period and any revenues allocated pursuant to subdivision (a)
of Section 8.5, adjusted for the percentage change in average daily
attendance and adjusted for the higher of the change in the cost of
living pursuant to paragraph (1) of subdivision (e) of Section 8 of
Article XIII B or the cost of living adjustment applied to school
district and community college district general purpose
apportionments, the amount of the deficiency shall be appropriated
and allocated by the State from the Public School System
Stabilization Account for the support of school districts and
community college districts.
(j) Funds transferred to the Public School System Stabilization
Account shall be deemed, for purposes of Section 8, to be moneys
applied by the State for the support of school districts and
community college districts in the fiscal year
two-year fiscal period for which the transfer is made, and
not in the fiscal year two-year fiscal
period in which moneys are appropriated from the account.
(k) Nothing in this This section
shall not be construed to reduce the amount of the moneys
required to be applied by the State for the support of school
districts and community college districts pursuant to Sections 8 and
8.5.
( l ) The Controller may utilize
use funds in the Public School System Stabilization
Account, Account that he or she
determines to currently be unnecessary for the purposes of this
section, to help manage General Fund daily cashflow needs. Any use of
funds by the Controller pursuant to this subdivision shall not
interfere with the purposes of the Public School System Stabilization
Account.
(m) For purposes of the 2019-21 fiscal period, "prior two-year
fiscal period," as used in this section, means the 2017-18 and
2018-19 fiscal years.
Seventeenth-- That Section 22 of Article XVI
thereof is amended to read:
SEC. 22. (a) Upon the Governor's proclamation declaring a
budget emergency and identifying the conditions constituting the
emergency, the Legislature may pass a bill that does any of the
following:
(1) Suspends or reduces by a specified dollar amount for one
fiscal year two-year fiscal period the
transfer of moneys from the General Fund to the Budget Stabilization
Account required by Section 20.
(2) (A) Returns funds that have been transferred to the Budget
Stabilization Account pursuant to Section 20 to the General Fund for
appropriation to address the budget emergency.
(B) Not more than 50 percent of the balance in the Budget
Stabilization Account may be returned to the General Fund for
appropriation pursuant to subparagraph (A) in any fiscal
year, two-year fiscal period, unless funds in
the Budget Stabilization Account have been returned to the General
Fund for appropriation in the immediately preceding fiscal
year. two-year fiscal period. For purposes of the
2019-21 f iscal period, "immediately preceding two-year
fiscal period," as used in this subparagraph, means the 2017-18
and 2018-19 fiscal years.
(3) Suspends or reduces by a specified dollar amount for one
fiscal year two-year fiscal period the
transfer of moneys from the General Fund to the Public School System
Stabilization Account required by Section 21.
(4) Appropriates funds transferred to the Public School System
Stabilization Account pursuant to Section 21 and allocates those
funds for the support of school districts and community college
districts.
(b) For purposes of this section, "budget emergency" means any of
the following:
(1) An emergency declared by the Governor, within the meaning of
paragraph (2) of subdivision (c) of Section 3 of Article XIII B.
(2) (A) A determination by the Governor that estimated resources
are inadequate to fund General Fund expenditures for the current or
ensuing fiscal year, two-year fiscal period,
after setting aside funds for the reserve for liquidation of
encumbrances, at a level equal to the highest amount of total General
Fund expenditures estimated at the time of enactment of any of the
three most recent Budget Acts, adjusted for both of the following:
(i) The annual percentage change in the cost of living for the
State, as measured by the California Consumer Price Index.
(ii) The annual percentage growth in the civilian population of
the State pursuant to subdivision (b) of Section 7901 of the
Government Code.
(B) The maximum amount that may be withdrawn for a budget
emergency determined under this paragraph shall not exceed either an
amount that would result in a total General Fund expenditure level
for a fiscal year two-year fiscal period
that is greater than the highest amount of total General Fund
expenditures estimated at the time of enactment of any of the three
most recent Budget Acts, as calculated pursuant to subparagraph (A),
or any limit imposed by subparagraph (B) of paragraph (2) of
subdivision (a).
Eighteenth-- That Section 2 of Article XIX B
thereof is amended to read:
SEC. 2. (a) For the 2003-04 fiscal year and each
fiscal year 2019-21 fiscal period and each two-year
fiscal period thereafter, all revenues that are collected
during the fiscal year two-year fiscal period
from taxes under the Sales and Use Tax Law (Part 1 (commencing
with Section 6001) of Division 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 the Motor Vehicle Fuel License Tax Law (Part 2
(commencing with Section 7301) of Division 2 of the Revenue and
Taxation Code), shall be deposited into the Transportation Investment
Fund or its successor, which is hereby created in the State Treasury
and which is hereby declared to be a trust fund. The Legislature may
not change the status of the Transportation Investment Fund as a
trust fund.
(b) (1) For the 2003-04 to 2007-08 fiscal years, inclusive, 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)
(b) For the 2008-09 fiscal year and each
fiscal year 2019-21 fiscal period and each two-year
fiscal period thereafter, moneys in the Transportation
Investment Fund shall be allocated solely for the following purposes:
(A)
(1) Public transit and mass transportation. Moneys
appropriated for public transit and mass transportation shall be
allocated as follows: (i) Twenty-five percent pursuant to subdivision
(b) of Section 99312 of the Public Utilities Code, as that section
read on July 30, 2009; (ii) Twenty-five percent pursuant to
subdivision (c) of Section 99312 of the Public Utilities Code, as
that section read on July 30, 2009; and (iii) Fifty percent for the
purposes of subdivisions (a) and (b) of Section 99315 of the Public
Utilities Code, as that section read on July 30, 2009.
(B)
(2) Transportation capital improvement projects,
subject to the laws governing the State Transportation Improvement
Program, or any successor to that program.
(C)
(3) Street and highway maintenance, rehabilitation,
reconstruction, or storm damage repair conducted by cities, including
a city and county.
(D)
(4) 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
2019-21 fiscal period and each two-year fiscal period
thereafter, moneys in the Transportation Investment Fund are
hereby continuously appropriated to the Controller without regard to
fiscal years, two-year fiscal periods,
which shall be allocated as follows:
(A)
(1) Twenty percent of the moneys for the purposes set
forth in subparagraph (A) of paragraph
(2) (1) of subdivision (b).
(B)
(2) Forty percent of the moneys for the purposes set
forth in subparagraph (B) of paragraph (2) of
subdivision (b).
(C)
(3) Twenty percent of the moneys for the purposes set
forth in subparagraph (C) of paragraph
(2) (3) of subdivision (b).
(D)
(4) Twenty percent of the moneys for the purposes set
forth in subparagraph (D) of paragraph
(2) (4) of subdivision (b).
(d) The Legislature may not enact a statute that modifies the
percentage shares set forth in subdivision (c) until all of the
following have occurred:
(1) The California Transportation Commission has held no less than
four public hearings in different parts of the State to receive
public input about the need for public transit, mass transportation,
transportation capital improvement projects, and street and highway
maintenance;
(2) The California Transportation Commission has published a
report describing the input received at the public hearings and how
the modification to the statutory allocation is consistent with the
orderly achievement of local, regional and statewide goals for public
transit, mass transportation, transportation capital 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) Ninety days have passed since the publication of the report by
the California Transportation Commission.
(4) The statute enacted by the Legislature pursuant to this
subdivision must be by a bill passed in each house of the Legislature
by rollcall vote entered in the journal, two-thirds of the
membership concurring, provided that if
the bill does not contain any other unrelated provision and
that if the revenues described in subdivision
(a) are expended solely for the purposes set forth in
paragraph (2) of subdivision (b).
(e) (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 of a
suspension of transfer of revenues pursuant to this section as it
read on January 1, 2006, but excluding the amount to be paid to the
Transportation Deferred Investment Fund pursuant to Section 63048.65
of the Government Code, shall be transferred from the General Fund to
the Transportation Investment Fund no later than June 30, 2016.
Until this total amount has been transferred, the amount of transfer
payments to be made in each fiscal year shall not be less than
one-tenth of the total amount required to be transferred by June 30,
2016. The transferred revenues shall be allocated 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 applicable, that are secured
by the minimum transfer payments required by paragraph (1). Proceeds
from the sale of those bonds shall be allocated solely for the
purposes set forth in this section as if they were revenues subject
to allocation pursuant to paragraph (2) of subdivision (b).
(f) This section constitutes the sole method of allocating,
distributing, and using the revenues described in subdivision (a).
The purposes described in paragraph (2) of
subdivision (b) are the sole purposes for which the revenues
described in subdivision (a) may be used. The Legislature
may shall not enact a statute or take any other
action which, permanently or temporarily, does any of the following:
(1) Transfers, diverts, or appropriates the revenues described in
subdivision (a) for any other purposes than those described in
paragraph (2) of subdivision (b);
(2) Authorizes the expenditures of the revenues described in
subdivision (a) for any other purposes than those described in
paragraph (2) of subdivision (b) or;
(3) Borrows or loans the revenues described in subdivision (a),
regardless of whether these revenues remain in the Transportation
Investment Fund or are transferred to another fund or account such as
the Public Transportation Account, a trust fund in the State
Transportation Fund.
(g) For purposes of this article, "mass transportation," "public
transit" and "mass transit" have the same meanings as "public
transportation." "Public transportation" means:
(1) (A) 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 disabilities or the elderly;
(B) operated by bus, rail, ferry, or other conveyance on a fixed
route, demand response, or otherwise regularly available basis; (C)
generally for which a fare is charged; and (D) provided by any
transit district, included transit district, municipal operator,
included municipal operator, eligible municipal operator, or transit
development board, as those terms were defined in Article 1
(commencing with Section 99200) of Chapter 4 of Part 11 of
Division 10 of the Public Utilities Code on January 1, 2009, a joint
powers authority formed to provide mass transportation services, an
agency described in subdivision (f) of Section 15975 of the
Government Code, as that section read on January 1, 2009, any
recipient of funds under Sections 99260, 99260.7, 99275, or
subdivision (c) of Section 99400 of the Public Utilities Code, as
those sections read on January 1, 2009, or a consolidated agency as
defined in Section 132353.1 of the Public Utilities Code, as that
section read on January 1, 2009.
(2) Surface transportation service provided by the Department of
Transportation pursuant to subdivision (a) of Section 99315 of the
Public Utilities Code, as that section read on July 30, 2009.
(3) Public transit capital improvement projects, including those
identified in subdivision (b) of Section 99315 of the Public
Utilities Code, as that section read on July 30, 2009.
(h) If the Legislature 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
to the purposes listed in paragraph (2) of
subdivision (b), and allocated pursuant to subdivision (c). All other
provisions of this article shall apply to any revenues adopted by
the Legislature to replace the moneys derived from the taxes
described in subdivision (a).
Nineteenth-- That Section 4 of Article XXXV
thereof is amended to read:
SEC. 4. Funds authorized for, or made available to, the
institute shall be continuously appropriated without regard to
fiscal year, two-year fiscal period, be
available and used only for the purposes provided in this article,
and shall not be subject to appropriation or transfer by the
Legislature or the Governor for any other purpose.
Twentieth-- That the amendments set forth in this
measure shall become operative on December 3, 2018. The sections of
the Constitution amended by this measure shall continue in effect as
they read before voter approval of this measure until December 3,
2018.
Twenty-First-- The provisions of this measure are
severable. If any provision of this measure or its application is
held invalid, that invalidity shall not affect other provisions or
applications that can be given effect without the invalid provision
or application.
First-- That it is the intent of the
Legislature to propose to the people of the State of California
amendments to the California Constitution that, commencing in 2019,
would provide for all of the following:
(a) The Governor would submit a budget proposal for the next
two-year fiscal period during the first 10 days of the first calendar
year of the biennium of a legislative session.
(b) In the regular session in each odd-numbered year, the
Legislature would do both of the following:
(1) Only consider or act upon the budget bill, other bills
providing for appropriations related to the budget bill, and bills
introduced by a standing committee.
(2) Only conduct hearings for either of the following purposes:
(A) To consider, develop, and adopt the budget for the next
two-year fiscal period.
(B) (i) Oversight of state department operations and state
programs.
(ii) A standing committee of the Legislature would be able to
introduce up to five bills authored by a majority of the standing
committee if the bill would improve state department operations or
state programs deficiencies discussed during an oversight hearing.
(c) In the regular session of each even-numbered year, the
Legislature would only consider or act upon legislation other than
the budget bill or other bills providing for appropriations related
to the budget bill.
(d) (1) After the budget for the next two-year fiscal period has
been enacted, the Governor would be able to submit budget updates to
the Joint Legislative Budget Committee for its approval.
(2) (A) The Joint Legislative Budget Committee would be able to
approve any budget updates proposed by the Governor to the enacted
budget by a resolution adopted by a majority of the committee
members. A budget update so approved would take immediate effect as a
statute.
(B) The Legislature would be able to pass a bill, approved by
two-thirds of the membership, that makes a change to the enacted
budget without the Governor proposing the change or changes.
(e) (1) The Joint Legislative Budget Committee would be
established to ascertain facts and make recommendations to the
Legislature and to the houses thereof concerning the State Budget,
the revenues and expenditures of the state, and the organization and
functions of the state and its departments, subdivisions, and
agencies.
(2) Each political party represented in each house would, to the
greatest extent possible, be proportionately represented in the Joint
Legislative Budget Committee and the membership of the committee
would be as follows:
(A) Eight members of the Assembly appointed by the Speaker of the
Assembly.
(B) Eight members of the Senate appointed by the Senate Committee
on Rules.
Second-- That it is the intent of the
Legislature that the amendments to the California Constitution
proposed to the people of the State of California by this measure
would not affect any of the
following:
(a) The Legislature's requirements and deadlines related to
passing a Budget Bill, including, but not limited to, passing a
Budget Bill by June 15.
(b) The Governor's authority to issue a proclamation declaring a
fiscal emergency and the provisions related thereto.
(c) The requirements to set apart the moneys to be applied for
support of the public school system and public institutions of higher
education, as required by Sections 8 and 8.5 of Article XVI of the
California Constitution.
(d) The requirement to deposit moneys into the Budget
Stabilization Account or the Public School System Stabilization
Account, as required by Sections 20 and 21 of Article XVI of the
California Constitution.
(e) The Legislature's authority to introduce and adopt urgency
legislation.
(f) The Governor's authority to call a special session, as
described in subdivision (b) of Section 3 of Article IV of the
California Constitution.
