Bill Text: CA SB732 | 2019-2020 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Transactions and use tax: South Coast Air Quality Management District.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2020-02-03 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB732 Detail]

Download: California-2019-SB732-Amended.html

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Amended  IN  Senate  March 27, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill

No. 732

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Introduced by Senator Allen

February 22, 2019

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An act to amend Section 7251 of the Revenue and Taxation Code, relating to taxation. An act to amend Section 317 of, and to add Section 9314.5 to, the Elections Code, to add Article 9 (commencing with Section 40560) to Chapter 5.5 of Part 3 of Division 26 of the Health and Safety Code, and to add Section 7252.3 to the Revenue and Taxation Code, relating to tax.

LEGISLATIVE COUNSEL'S DIGEST

SB 732, as amended, Allen. Transactions and use tax. Transactions and use tax: South Coast Air Quality Management District.

(1) Existing law establishes the South Coast Air Quality Management District vested with the authority to regulate air emissions from stationary sources located in the South Coast Air Basin and establishes a district board to govern the district.

This bill would authorize the south coast district board to impose a transactions and use tax within the boundaries of the south coast district, as specified, with the moneys generated from the transactions and use tax to be used to supplement existing revenues being used for south coast district purposes, as specified.

(2) This bill would make legislative findings and declarations as to the necessity of a special statute for the South Coast Air Quality Management District.

Existing law authorizes cities, counties, and certain districts to impose a transactions and use tax in accordance with procedures set forth in the Transactions and Use Tax Law, which conforms to the Sales and Use Tax Law.

This bill would make a technical, nonsubstantive change to the Transactions and Use Tax Law.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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Bill Text

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

SECTION 1.

 Section 317 of the Elections Code is amended to read:

317.

 (a) “District,” for purposes of initiative and referendum under Chapter 4 (commencing with Section 9300) of Division 9, includes any regional agency that has the power to tax, to regulate land use, or to condemn and purchase land.

(b) “District,” for purposes of Section 1405 and initiative under Article 1 (commencing with Section 9300) of Chapter 4 of Division 9, includes the South Coast Air Quality Management District.

SEC. 2.

 Section 9314.5 is added to the Elections Code, to read:

9314.5.

 (a) For purposes of this section, the following terms have the following meanings:

(1) “Legal counsel for the south coast district” means the attorney designated under the south coast district’s conflict of interest code as its legal officer pursuant to Article 3 (commencing with Section 87300) of Chapter 7 of Title 9 of the Government Code.

(2) “South coast district” means the South Coast Air Quality Management District, established pursuant to Section 40410 of the Health and Safety Code.

(b) (1) Whenever a south coast district measure is submitted to the voters of the south coast district, the south coast district elections official shall transmit a copy of the measure to the legal counsel for the south coast district. Except as otherwise provided in subdivision (c), the legal counsel for the south coast district shall prepare an impartial analysis of the measure that does all of the following:

(A) Shows the effect of the measure on the existing law.

(B) Shows the operation of the measure.

(C) Includes a statement indicating whether the measure was placed on the ballot by a petition signed by the requisite number of voters or by the governing body of the south coast district.

(D) Is printed preceding the arguments for and against the measure.

(E) Does not exceed 500 words in length.

(2) If the entire text of the measure is neither printed on the ballot nor in the voter information guide, there shall be printed in no less than 10-point bold type immediately below the impartial analysis a legend that reads substantially as follows:

“The above statement is an impartial analysis of Ordinance or Measure ____. If you desire a copy of the ordinance or measure, please call the south coast district elections official’s office at (insert telephone number) and a copy will be mailed at no cost to you.”

SEC. 3.

 Article 9 (commencing with Section 40560) is added to Chapter 5.5 of Part 3 of Division 26 of the Health and Safety Code, to read:

Article  9. Ballot Measure Elections for Transactions and Use Taxes

40560.

 (a) An ordinance to levy, increase, or extend a transactions and use tax authorized pursuant to this article, Article 1 (commencing with Section 9300) of Chapter 4 of Division 9 of the Elections Code, and the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code) may be enacted in the south coast district at a rate of 0.25 percent, or a multiple of that percentage not to exceed a maximum of 1 percent, through either of the following:

(1) Approval by a majority of vote the south coast district board and placement on the ballot for subsequent approval by the south coast district’s electorate in conformance with other applicable statutory requirements and Article XIII C of the California Constitution.

(2) Placement on the ballot by a voter initiative for subsequent approval by the south coast district’s electorate in compliance with other applicable statutory requirements and Article XIII C of the California Constitution.

(b) The south coast district board may levy, increase, or extend more than one transactions and use tax pursuant to this section if the adoption of the transaction and use tax conforms with both of the following:

(1) The requirements of this article.

(2) The requirements of the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code).

(c) An ordinance that is not for the adoption, modification, or amendment of a transactions and use tax shall not be enacted in the south coast district.

40562.

 (a) Notwithstanding Section 7251.1 of the Revenue and Taxation Code, a transactions and use tax ordinance applicable within the boundaries of the south coast district adopted pursuant to Section 40560 may exceed the combined tax rate limit of Section 7251.1 of the Revenue and Taxation Code.

(b) A transactions and use tax ordinance adopted pursuant to this article shall be operative on the first day of the first calendar quarter commencing more than 150 days after the adoption of the ordinance by the electorate in compliance with any applicable constitutional or statutory requirements.

(c) (1) Prior to the operative date of the transactions and use tax ordinance, the south coast district shall contract with the California Department of Tax and Fee Administration, or other state agency provided for by law, to perform all functions related to the administration and operation of the transactions and use tax ordinance.

(2) Notwithstanding Section 7272 of the Revenue and Taxation Code, both of the following apply:

(A) The costs to be covered by the contract required pursuant to this subdivision may include the services described in Section 7272 of the Revenue and Taxation Code for preparatory work up to the operative date of the ordinance. A dispute as to the amount of the costs shall be resolved in the same manner as provided for in Section 7272 of the Revenue and Taxation Code.

(B) The maximum amount of preparatory costs incurred may exceed those costs as described in paragraph (1) if the increased amount reflects necessary preparatory costs. The maximum amount of all preparatory costs to be paid by the south coast district to the California Department of Tax and Fee Administration shall not exceed ____ dollars ($____).

(3) (A) Within 45 days from the date a transactions and use tax ordinance is adopted pursuant to this article, the south coast district shall provide the California Department of Tax and Fee Administration with both of the following:

(i) A list of the ZIP Codes that are located within the boundaries of the south coast district but are located in areas noncoterminous with city or county borders of the south coast district.

(ii) A list of ZIP Codes of areas that are located partly within and partly outside of the boundaries of the south coast district.

(B) The south coast district shall maintain the ZIP Code lists specified in subparagraph (A) on its internet website.

(C) For those ZIP Codes that are located partly within the boundaries of the south coast district, the California Department of Tax and Fee Administration may, as necessary, provide to the south coast district a list of any addresses for which the California Department of Tax and Fee Administration requires a determination as to whether the address is located or is not located within the boundaries of the south coast district. The south coast district shall respond to the California Department of Tax and Fee Administration within 30 days of the request.

40564.

 (a) The south coast district shall use any moneys received by the south coast district pursuant to this article to supplement existing revenues being used for south coast district purposes.

(b) All moneys received by the south coast district pursuant to this article shall be used for financial incentives and programs to implement the south coast district’s adopted plans to achieve state and federal ambient air quality standards and to accelerate the deployment of all of the following:

(1) Zero-emission, near-zero-emission, or cleanest commercially available mobile and stationary equipment that reasonably meets the needs of the operators of that equipment.

(2) Alternative fueling and charging infrastructure.

(c) No more than 6.25 percent of the total revenues received pursuant to this article may be used for administrative costs in implementing the programs authorized pursuant to this article.

(d) Beginning the year after the first calendar year in which moneys from the transactions and use tax ordinance are made available to the south coast district pursuant to this article, the south coast district shall include in its annual report to the Legislature required pursuant to Section 40452 both of the following:

(1) A report of the projects funded from moneys from the transactions and use tax ordinance for the prior calendar year.

(2) The expected emissions reductions to be obtained from projects funded from moneys from the transactions and use tax ordinance.

40568.

 (a) (1) The south coast district board may appoint a district elections official for the purposes of overseeing, supervising, or conducting an election required pursuant to Section 40560.

(2) The south coast district’s elections official shall oversee, supervise, or conduct an election required pursuant to Section 40560 and the applicable procedures set forth in Article 1 (commencing with Section 9300) of Chapter 4 of Division 9 of the Elections Code.

(b) (1) The south coast district board may submit a resolution to the board of supervisors of a county that is entirely or partly located within the boundaries of the south coast district to provide services that are reasonable and necessary to conduct an election in the south coast district. Upon the presentation of that resolution by the south coast district board, the applicable county elections official shall provide those services to the south coast district, and those services shall be performed by the county elections official in coordination and consultation with the south coast district’s elections official.

(2) No later than 61 days before an election on the transactions and use tax ordinance authorized pursuant to this article, the county elections official shall work with the south coast district’s elections official to set and finalize a list of precincts or consolidated precincts, as applicable.

(3) The south coast district shall reimburse in full each county that is located entirely or partly within the boundaries of the south coast district for the reasonable cost of the services performed by the county elections official at the request of the south coast district or by agreement upon the presentation of a bill to the south coast district.

(4) Unless otherwise provided by law, election and election-related services shall be conducted by each county as provided by the Elections Code for districts.

(c) The regular election date for the south coast district shall be the date of the statewide general election as provided for in Section 1200 of the Elections Code.

SEC. 4.

 Section 7252.3 is added to the Revenue and Taxation Code, to read:

7252.3.

 “District,” as used in this part, also means the South Coast Air Quality Management District if authorized to impose transactions and use taxes pursuant to this part and Article 9 (commencing with Section 40560) of Chapter 5.5 of Part 3 of Division 26 of the Health and Safety Code.

SEC. 5.

  The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique nature of the air quality problem in the South Coast Air Quality Management District, which has the worst ozone levels in the nation.

SECTION 1.Section 7251 of the Revenue and Taxation Code is amended to read:

7251.

This part shall be known and may be cited as the “Transactions and Use Tax Law.”