HomeMy WebLinkAboutStaff Report 2.B 01/04/2010CITY OF PETALUIVIA, CALIFORNLA ^
AGENDA ILL January 4, 201(
Agenda `Title: Resolution supporting and endorsing the Local Taxpayer, Meeting Date: Jan. 4, 2010
Public Safety and T_ ransportation Protection Act of 2010.
Meeting Time: 6:00 PM
Cate~Ory: ^ Presentation ^ Appointments ®Consent ^ Public Hearing ^ Unfinished Business ^ New Business
Department: Director: Contact Person: Phone Number:
City Manager John C. Brown John C. Brown 778-4345
Total Cost of Proposal or Proiect: n/a Name of Fund:
Amount Budgeted: Account Number:
Current Fund Balance:
Recommendation: It is recommended that the City Council take the following action: Adopt resolution in
support of the Local Taxpayer, Public Safety and Transportation Act of 2010.
1. ^ First reading of Ordinance approved unanimously, or with unanimous vote. to allow posting prior to second reading
2. ^ First reading of Ordinance approved without unanimous vote: Ordinance has been published/posted prior to second
reading; see Attachment
3. ^ Other action requiring special notice: Notice has been given, see Attachment
Summary Statement: California voters have repeatedly approved ballot measures to dedicate local funding
sources to essential local services and to prevent the legislature and governor from shifting local government,
transit and. transportation funds. Despite this, the legislature and governor recently approved a budget that
borrowed and will take nearly $5 billion in city, county, transit and transportation funds. These continued raids
are jeopardizing many of the services provided by local government, forcing cities and counties to lay off police
officers, firefighters and other employees while also significantly cutting services. The League of California
Cities has joined with local government advocates to craft a constitutional amendment that could be placed on
the Nov. 2010 ballot. This ballot measure is known as the Local Taxpayer, Public Safety, and Transportation
Protection Act of 2010. Approval of this ballot initiative by the populace will close loopholes and change the
California Constitution to further prevent the State from seizing, diverting, shifting, borrowing, transferring,
suspending, or otherwise taking or interfering with tax revenues dedicated to funding local government services
including public safety funding, redevelopment funds, gasoline (Prop. 42) funds, and Highway User Tax on
gasoline (HUTA) funds. The-League of California Cities is asking cities throughout California to adopt a
resolution endorsing the "Local Taxpayer, Public Safety and Transportation Protection Act of 2010" and to
authorize the listing of the City in support of this measure.
Attachments to Agenda Packet Item:
1. Summary of Initiative
2. Initiative
3. Resolution
Reviewed b Finance Director: Reviewed by City Attorney: A ro ed i Mana er:
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te: ~ Date: Date: Z ~--2~' O
Rev. #~ rM / Date Last Revised: File:
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Attachment 1
Local Taxpayer, Public Safety and Transportation Protection Act of 2010
Summary
Section One: Findings and Declarations
In order to maintain local control, California voters have repeatedly voted to restrict "state politicians in
Sacramento" from taking revenues dedicated to funding local government services and to
transportation improvement projects. Despite the clear intent and will of the voters, the State has
repeatedly raided revenues dedicated to fund vital local government services and transportation
improvement projects. More specifically, the state politicians have borrowed property tax; tried to
borrow HUTA; taken redevelopment agency revenue; and public transit and capital improvement
funding -all in the billions of dollars. All of these raids have had severe consequences.
Section Two: Statement of Purpose
The voters want to conclusively and completely prohibit state politicians from using revenues that the
people have dedicated to local government services, transportation projects, and transportation
services.
Section Three: Local taxes - No borrowing, reallocation or restriction in use
The. Legislature may not interfere in any way with locally imposed parcel taxes or other local taxes such
as UUT, TOT, BLT, Use Tax, etc. This means that they can't use the proceeds, reallocate them to some
other agency, restrict how a local government uses the proceeds, or borrow them. Applies to all locally
imposed taxes by cities, counties, schools, special districts, etc.
Section Four: Property Taxes - No more borrowing, reallocation for mandate reimbursement
This section (1) prohibits any future borrowings of the property tax. (2) prohibits the Legislature from
using its power to reallocate property tax between and among cities, counties and special districts to
reimburse for state mandates; and prohibits reallocation of VLF to reimburse for state mandates; and (3)
prohibits requiring a redevelopment agency to transfer its tax increment revenues to another
jurisdiction. to benefit the state; or to use its tax increment revenues for a particular purpose that
benefits the state. Exceptions are provided for affordable housing, and existing pass-through
requirements.
Section Five: HUTA - No more borrowing or use for other purposes; statutory allocation change with
2/3 vote after CTC process; state share can be used for state issued bonds with voter approval after
11/10
This section (1) prohibits loaning HUTA funds to the General Fund; (2) allows existing statutory allocation
of HUTA to be changed by legislature (with 2/3 vote) after following a public hearing process conducted
by the California Transportation Commission; (3) allows State to use its HUTA to pay off bonds issued
after November 2, 2010 with voter approval; (4) clarifies that State may not use local HUTA to pay off
state-issued bonds; and (5) prohibits delay, deferral, suspension of allocation or use of funds for
anything other than purposes specified in Article XIX (existing law).
Section Six: Public Transportation Account - No borrowing or use for other purposes; spillover
deposited into PTA as originally required in 2001; no reduction of one-quarter cent sales tax in local
transportation funds; definitions of "transportation planning" and "mass transportation"
This section (1) requires spillover gas tax to be deposited into the PTA in accordance with the law in
effect on June 1, 2001; (2) adds to the constitution the existing allocation of PTA monies: 50% to State;
50% to locals; (3} requires quarterly deposit of Prop 42 funds for public transit and mass transportation
into the PTA; (4) prohibits borrowing of money in the PTA or use for any purposes other than
transportation planning and mass transportation; and (4) defines "transportation planning" and "mass
transportation." The definition of "mass transportation" is surface transportation, operated by bus, rail,
ferry, etc; generally for which a fare is charged; and provided by any transit district, JPA, or other
agencies that receive funds for these purposes. School buses would not be included as "mass
transportation.
In addition, this section prohibits the Legislature from reducing the one-quarter cent county use tax that
is deposited into local transportation funds; and from borrowing, transferring, appropriating, or using
the money for any other purpose.
Section Seven. Prop 42 -Sales Tax on Gasoline - No borrowing or use for other purposes; statutory
allocation change with a 2j3 vote and after CTC public hearing process
This section (1) requires Prop 42 funds to be deposited directly into the Transportation Investment Fund
(TIF) rather than in the General Fund (which requires Legislature to appropriate from GF to TIF); (2)
removes authority of Legislature to borrow Prop 42 funds; (3) allows the Legislature to change existing
allocation as between public transit and mass transportation; transportation capital improvements; and
street and highway maintenance, etc. by cities and counties ONLY with 2/3 vote and after CTC conducts
public hearings; (4) puts into the Constitution the existing allocation of Prop 42 funds for "public transit
and mass transportation" ; (5) prohibits Legislature from using money for any other purposes. The
definitions of "public transit" and "mass transportation" that are added in Section 6 are also added in
Section 7.
Section Eight. Lawsuits. Voters provide for "continuous appropriation" so legislature is not relied
upon to make payments of funds that it owes to local governments or state funds.
Under existing law, a court will not order the legislature to appropriate funds even if the law requires
the appropriation. This means that if a city brings a lawsuit alleging that the Legislature owes it money
(e.g. a mandate claim), and the court agrees with the city, the city may never get the money unless the
Legislature chooses to follow the law. The ballot measure adds an article to the Constitution that seeks
to solve this problem. If a city files a lawsuit alleging that the Legislature has violated Article XIX
(HUTA); Article XIXA (PTA); or Article XIXB (Prop 42), and the court agrees with the city, then the
measure provides for a continuous appropriation of funds to either pay the city (e.g. unlawful property
tax borrowing); or repay an account (e.g. unlawful use of TIF funds), etc. Interest would accrue on the
amount-of the award.
Section Nine. Redevelopment
Article XVI, section 16 of the Constitution protects the system.oftai-increment financing: The
Legislature is not allowed to divert tax increments (to school districts; for example) prior to their receipt
by redevelopment agencies. This measure. protects the use. of tax. increment revenues after they have
been received by redevelopment agencies: The Legislature may not tell redevelopment agencies to
make payments of tax increments to other jurisdictions for the benefit of the state; nor tell them to use
tax increments for these purposes directly (e.g. repair schools). Section 9 explains this distinction.
Section Ten. Continuous appropriation
As mentioned above, the "contihuous appropriation" is a tool used to avoid the need for the Legislature
to make an appropriation of funds. The Constitution allows the State Treasury to make payments
pursuant to an "appropriation .made by law." This section makes it clear that the continuous
appropriations in this measure are intended to be "appropriations made by law" within the meaning of
the Constitution.
Section Eleven. Liberal Construction.
Section Twelve. Conflicting statutes
Any statute enacted after October 19, 2009 and November 2, 2010 that would have been unlawful if the
measure were in effect, is automatically. repealed as of the effective date of the measure.
Section Thirteen. Conflicting ballot measures
Section Fourteen. Severability.
Sponsors: California Alliance for Jobs; League of California Cities; and California Transit Association
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SECTIOPV 2; :F,nding5 and:~pec[arations.
The people°of the` 5tate.of'California :find and:`declare.fhat: •
(a)~in orderto~~r»aintain local,control~over~localtaxpayerfunds~and~proteet vital services
like local fr're'protec#ion and 4-1-1 emeirgency response, law; erifoccement, emergency room
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care,. public transit, an`d.transporta'tionlmprovements, California voters have repeatedly.and
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overwhelmingly voted t`o;restrict state politicians=in<Sacramerto #rom taking revenues
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,dedicateditofunding local_government services"and dedicated=to, funding transportation
improv;emen;;projectsanl services.
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{b)~By:;talcing;`these„actions; voters have.acknowledged the-:critical importance=of
preventing State~raids of revenue`s,dedicated to funding vital local government'services and
aransportation improvement projects and services.:.
(c) Despite the fact that voters have .repeatedly passed measures o preventthe State {
"from taking these revenues dedicated'to funding local governmen't'services and transportation
improvement projects and services, state politicians in Sacramento have seized and borrowed
bdlior>sof daUars. in ;local,government~and transportation funds:
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(d)`!n recent .years, _state;,paliticians irr Sacramento have spec lea ly;
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4 (1) Borrowed billions of tlollars in local. property tax~r:,evenues that;wpuld otherwise be
~~ used~tq'fund local=police,•fire.andparamedic response antl~other vital Igcal services;
;(2) Sought'~tii~take~antl borrow billions of dollars in gas tax>revenues that voters have
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.dedicated t'o on=going transportation projects: aril tried to :use them for non-transportation
purposes; 1
. ='(3) Taken',-ocal comm`umtyxredeuelopmentfurids on numerous otGasions and used them
` °for uri'related purposes; •
(4) Taken billions of dollars from local public transit-°Iike bus,.shuttle,=light-rail and
• `regional commuter-rail; and used these funds:for unreiatetl state purposes.
(e) Thefcontnued raiding and:borrowng of~revenues:dedicated}tofunding local
goirernment~seniices and,d'edicated to funding transportation improvementkprojectsarid
services can-cause severe consequences, such as,layoffs of'poAce, fi're'and paramedic-first
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responders, fire station closures;~•healthcare cutbacks delays in road safety improvements;'
public transit;#are increases and cutbacks in public transit services.
{f) State polticians'in Sacramento have_continued,to ignore the:w.ll of the voters, and
current law provides no penalties when state politicians take'or borrow these dedicated funds.
(g)~It,is hereby resolved; "faat:with:appri)val of his ballot'initiati`ve, state~pofiticians-in
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Sacramentoshall'•kie3;prohib~tedFfrom;seizing,;diverting, shifting,!borr'owing;.fransferring;
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'sus~ierading or otherw~se,taking~or,<mterfer~ng with tax reverues~dedicated to funding;local
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government services or~dedicated to transportation~~mpcovement projects and services.
SEC7LON 3. Statement of Pur""pose.
The purpose of thismeasure is to conclusively~~and`completelyxprohibit state politicians
in°Sacramentp from'seizing, diverting, shifting, borrowing, transferr~ng,3uspendng; or
otherwise taking'or interfering with re.venues'.thatnre dedicated to funding services provided
by local government or funds dedicated`-t'o transporta'tion improvement projects and services.
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`SECT{ON 4.: Article XVII is added~to the California Constitution, to read:
. .°.:SECTION 1. The L"egislature may not reallocate, transfer, borrow, apprapnate;~restrict
the use of, or otherwise use the"proceeds of any tax imposed or levied by a local. government.
solely~for-the local goverrimenE's purposes.
~. _ SEC. 2: On~~and=~after the.effective:date of the measure adding this°'article; and.
notwithstandingsubpa~ag~aph's ~(B)~and. (C) of,paragra'ph (1)`of siabdiVision (a of Section 25.5 of
Article XIII of~this Constitution or~;any"ot,her'law; the legislature may not,~suspend subparagraph
°;(A) of paragraph (1`);:of subdivision (a)4"of'Section 25.5 of Article XII1.; The Legislature may not
~. .,change the pro rata~shares~n wh~ieh aii~valonem property„taxes are allocated.among,local
agencies to transferpropertytnxes to`a local government when the LegisFatu"re'or. any: state
agency mandates'a new program or higher level of service •on that°~local`governirert.
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SEC. 3. On and after the effective:da'te of the measure.:adding-thi"s article, and
notwithstanding Suction 15 of Article Xf<of this Constitution~or any ether law; the Legislature.
may not.change the allocation of,reven'ues.described in Section 1S: of Article XI to reimbursea°
.city, county, or city arid,county when.the Legislature or any state agency mandatus anew
program or higher~level`of-service on that city, county; or city and countys -
` SEC ~, On and, after the effective date of.,the`measure adding this article; and'
notwthstanding{Article XIX of this Constitution or any, otheclaw
(a) Revenues from;tazes imposed`by the State on.riotor•vehicle~fuels for use n.motor
p p ~ treets and'tii hwa s;:ovur Arid°above•,the costs of collection and:any
vehicles u on:, ublic s g y
refunds Guth°orized by law; shall~be deposited`intoahe Highway Users~Tax-Account (S.ection
2100Gof the~Streets and Highways Code} or its successorSwhich•is'hereby~declared>to be a-trust
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(b).The legislature`may;~by,a two-fhirds vote`of'tlie memb.ership`in each fiouse;.modify
Chest"atutory<allocations.in effect°on-lune 30, 2009>only'in`accordaoce"with the procedures
specified in Section 3 of Article X~IX. Any bill modifying the,statutorAy allocations=in effect~on
June`'30, 209 must remain in its final.form~for°at least 12'days>pror~to passage in,either house
of~theLegislature.
`(e} Revenues~fromtaxesd"ascribed m.subdwison`{a}~~al:located to:cities,,counties; and
areas,of the~State-may be~used sglely bythe e_nt~ty tq,.which~they are allocated,'=and~solely.for
the,'purposes~'descr;ibed in -Sections 1 and 4 of Article •XIX, and Section 5•of Article XIX subject to
the requirements of~subdivis~an-fie): The Legslatu're may,not,take~any action that permanently
ortemporaril:y borrows, d_iverts,•appro,priates for unreiatedF purposes; or delays, defers,
suspends; or- otherwise interrupts.;}the<payment~ allocation, distr~lution;xdsbursa , or Transfer o:f
revenues from taxes described in subdivision {a) to cities, counties; and'a?eas of the State
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pursuant to he procedures iri effect~onlune 30, 2004.
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(d) If he Leg+slature reduces~o,r.~repeals the taxes described rri-subdrvision {a},and
adopts~;an alternative source of revenue'to replace the moneys derived from those taxes, thee.
replacement revenue shall'be deposited and allocated.~in the'same'manne~; and dedicated to
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the same pu'~poses, as the revenu'es'beng replaced.
. ; '(e)(1)'rylte~enues allocated to any city'or county purs_uant•to 5ectiorr 3 of Article XLX for
the purposes specified in subdivision {a):.of Section l of Arficle'X!X shall not be used by the: State
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;for any purpose, including,•but not limited to, payment of p,rincigal and;intereston voter-
"app~oved bonds issued by the State. Up to 25 percent of the revenues allocated to any city or '
- , ~ ~-'~caunty pursuant to 5,ection`3 of Article XIX for the purposes„specified in subdivision (aj of '
. °~Section l of Article,XlX may be used by.any cify or county fo"r~~tlie pa,yment,:of principal and
interest on .voter-~pproved~bondsissued by that-city or county°for:'such-purposes..
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{2) Up•,to 25=percent°of the~revenues allocated'to th,e:5tate,pursuant to Section°3` of r .
'"Article;XlX-for the pu`rposes~specifi'ed iri•sub~division (a) of Section l of Article XIX'may;6e
,..pledged or used by the State, upomapprova) of the voters and appropriation by the Legislature,.
' for the'`payment ofpnnapal'and interest on voter-approved bonds issued'by the:5tate for such
;purpos'e5 onor after=November 2;:-2010: - .
SEC. S. On and=after the :effective date{of the~measure ad'd'ing thisarticle, and'
notinrithstanding.Section 1 of Article XIX:A~of th+s Constitufion or any other; law;
~.(a),Aliof~the foJlovving shall~be~deposited no`less than quarterly into the Public
Transportation,Account (Sectio`ri'9931Q ofthe Public~Utilities Code), or`its successor., which is
hereby declared to b.e a trust:fund '
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{1) AIL revenues~sp;ecified;in Ra~a'graphs (1) through (3), inclusive, of subdivision.(a) of
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Section 7102of theRevenue andTaxaton Code, as ,that section read o'n June 1, 2001.
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(2} AIL moneys m'the°Transportation fnve'stment Furdrth°at.are~a'llocated far public
transit~an'd:mass transportat,'ian pursuant to;paragraph {A)zof subdivisiori~(c),pf Section 1 of
Article~XlXsB'. ~ ~ ~ .
°{6}.Funds in the Pu,blic'Transportation Account may only be5used~#or transportation
planning andmass transportation purposes: The Legislature maynot take any,action that
permanentlyortemporarilyborrows; d'iver'ts;.appropriates!forunrelatedpurposes; ordelays,
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defers;. suspends, or otherwise interrupts the quartetiy deposit ofvth'e,funds specifietl in
subdivision (a) into!the Public Transportation Account Funds m~the Public Transpartafion
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Account maynot:k>e loaned.or ofl5erv-rse trarisferredto the General Fund or any other fund or
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accaunt in the State Treasury. '„: .
(c} For the purposes of subparag ap {A}~of piaragraph ~- of subdivision !{e):
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"transportat+on planning" means onlythe~purposes described~in`.subdiv,isions(c)~tliraugh (f);
i,nclusive,.of Section 99315:of the Public Utilities Code; as that section read on,JuJy 30, 2009.,
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(d)~Forthe purposes oftFiis article andArticle XIX-B, "mass transportation," "pub'lic
transit, and mass transit. have the same meaningas ' 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. 12,143,~or
similar`transportation_,provided to people with d+sab`ilities~or. the elderly; (B).operated~6y bas,
rail, ferry, or otherconveyanc"e on a fixed route, demand response, or oth,erwise~regulacly
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~ava~lable basis, .(C}gerieral{yfor which a fare~is`charged, and;.(D) provided°6y any transit district,
`included transit"diStnct, rnunicipai operator, included,~murnc±pal operator eligible muricipaa
operator; or transit development';board, as those ter.nis~were defined in,Article 1'of`Cha"pter4
of Part. 11 of:Divsion 1Qof the Public Utilities:Code on.Janu_ary 1, 2009,"a,!joint powers autljority
formed to provide mass transportatinn,senrices, an agency described in subdivision (f} of
sSection.1597:5 of the GovernmentCode,.asStiaf section~:read on January 1, 2009; any reap^ient_
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~of fund"s~untler Sections99260, 99260.7,.99275, or subdivision (c) of Section`99400 of the Pub~lie :~
~• 4Utilities Code,,as.those,sections read on January 1; 2009; or a consolidated agency as defined"in
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Section 132353:i.of the Public Utilities Code,;as•that;section`read on January 1, X009:
(2):Surface transportationservice`sprovided~by=the Department`of Transportaton
pursuant to subdivision (a)`of Section.99315 of thePublic Utilities-Code, as that section read:an
July 3p;. 2009: _
(3},Public transit cap~tal~improvement projects; mcl~ding-those identified in subdivision
{b) of Section 99315 of the'Public Utilities Code, as that section "read on July 30, .2009..
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-, (e}(1)`Revenues:depositedinto the~Public:Transportatron Account pursuant to paragraph
{i) of subdivision (a} are hereby continuously appropriated to the Controller without regard to
fiscal years for allocation as follows:. .
(A} Fifty percent purstant to subdrvisionsp{a} hrough'~{f); Inclusive; of Secti4n~99315'of
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the~Public Utilities Code; as that ection,read on July: 30, 2009:
{) y=five'percent pursuant;,to subdrvision (b};of=Section 99312; of he Pub is
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Ut-litie"s Code; as tFat section reatl on,July 30 2089: `
(C) Twenty-fve'percent pursuant tq s.ubdrvision {c}'of Section 99312 of the Public
Utilifies~Co'de as ~that,secton..read on Ju1y430 2009; ~ ~~
:{2j Revenues deposited into the Public Tr•.anspgrtation Account,pursuant to paragraph
{2) of subdivisron (a) areahereby continuously appropriated to 'the Controller withoutrega~d to
fiscal years for allocat~o,n_as'follovus:
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{A) Twenty`fve,per•cent pi.i"rsuant`to subdivision (b).of Section 99352 of the~Pub(ic
Ut-Irtiies Code;, as ~fFiat~seetiin read an~lia)y 30, 2009.
(By Twenty-'five percent pursuant to subdrvr5io"na(c)=of Sectiori-99312 of'the~Public-
Utilities Code; as that section reatl on July 30,2009.
(C) 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.
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SEC. 6. On-and after thee,ffectivedate-.of the•measur:e~adding this =article; and'
notwithstanding any'other`provision of~thisConst~tut~ion~or~any other~law the percent~age'of
the tax im osed ursuant to Section 7202 of the Revenue and Taxation Code,allocated to.local
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:transportation funds shall not.be reduced below th'e~,percentage that~was'transmitted to such
fundsduring the 2008 calendar.,year. Revenues allocated to`loca! fransporfation funtls,shall l'e .
transmitted in accordance with'Sect+on 72,04 of the Revenue and Taxation Code and-deposited`
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into Ioeal trans ortatiorrfunds~in;accordanee witli~Section 29530 of the Goverrment~Cod'e, as,
tfiose sections read an June 30,.2009
,.;SEC 7 (a) On and~after the effective.date of'the measu~e~adding_ his article, and'
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notvithstanding subdivisiorr(d},of=Section 1 of Article XIX B of this Constitutionoraoy other
law, a!I revenues that are collected during the fiscal-year from.taxes under the Sales and Use
Tax lavv, or any successor to thaLlaini, upon tii'e sale, storage; use, or other consumption in this
State of motor vehic-e~fuel as defined in Section 7326 of the Revenue and Taxation Code on
June~30, 2009; shall be deposited,quarterly into the Transportation'.,Investment Fund
(subdivision (a} of Section 7104 of'the Revenuerand,~Taxation Coae} or its'successor,-wFich is
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hereby. declared to.be aarust fund,: The.Legisiafurernay not'.aake any acton~that-.permanently
or temporarily borrows,, diverts, appropriates for un_related,purposes, or delays, defers,
suspends, o~ otFierw`se 'interrupts~~ttie~guarte'Ny deposit of these;funds irito, the Transportation
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. - Investment,Fund.'Furids~in the Transportation Investrnent`Fund may not`be loaned or '
.:otherwise transferred to the General"Fund.gr any other fund. qr account in the State"Treasu"ry;:
{b} {1) If the _egislature retluces=or repeaks the taxes;deseritied in Subdivision (a) and:
adapts';an alternative source of revenue to. replace the mor>eys~derived from those taxes,,the.
replacement revenue~shall?be'depos+tedand:allocated m,the same~manner;~and dedicated to=
the same purp,ases,~~as the revenues being replaced..
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(2) In additon.to~tl'e requirements contamedra`in subdivision (e) of Section 1" of Art~cke`4XIX
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B; any bill modifyirigahe:~percenfage shares set~forth~in subdyvision.(c),of~Section 1 of Article, XIX
B-must` remain in~ts~finat form for at least 12, days prior tos`passage iri,either house:ofthe
legislature':
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SEC. S: (a)~Thie Legislature may-not require a comma°nlty redevelopment agercy (1)'to
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pay, remit; loan.or>otherwise transfer,;directky;or indirectly, taxes'on ad.valoremreal°kroperty
and tangible personal property allocated to the agency,pursuant=to Section 16 of Article XVl~ta
ar far the berefi,t of he State, any agency of the State, or any,jurisdiction, or (Z) to use;: restrict,
or assign a'particular purpose for such tazesfor the, benefit of the State, any agency of the
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" State,'or-any jurisdiction,.other than {A}for making payments to affected taxing•;agencies
~Y pursuant to Sections 33607.5,and 33607.7~of Heakth:and Safety Code or-,-,smilar'statu.tes'
. ', requiring"such payments, as thosetistatutes'read.ori January-l, 2008; or (~B) for;the purpose of
g, ` p g, p g e supply of lo;w-and maderate•:income housing•available
increasin im rovin and resei~ym ah
a"t affordable housing cosf.
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(b) "Jurisdiction"'has the`meaningspecified''in'-Section 95 of'th'e Revenue and Taxation
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Code, as that section read' on July 1; 2009.
SEC: 9. (a) If any ch'all'enge to"invalidate an action that violates Sections~4`thrdugh 8,
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nt, settlement or resolution,-
~;, .; ridusive, of this article is successful either byway af~a final judgme , ,
by administrative or`legislative action,'there is hereby. continuously appropriated from,the
Geneca(>=and to the`Controll"e r, without regard. to fiscal years; that amount of;revenue
necessary to_ resto,re the fund or account from which; the revenues were unlawfully•taken or
-diverted to its,fin"anc~al,status had tkietunlawful action not been taken., '
(b) If any challenge to invalidate an,:action`that'violates Sections 1-through 3, incJusive~ .
of,tkiis article is;successful either byway of a final judgment,. settlement, or resolution.by
administrative or,legisletive action, there is hereby continuously: appropriated from the Generale
l=und~to the local government anwamouiit of revenuereuquak~to the~amount of re~eriue unlawfully
,taken or diverted.. '` ~ .
-<.
;(c) Interest calculated at the Pooled kVloney Ihvestment,Fund.ratef~om the date or date"s
therrevenues,vyere~unlavifu{ly taken~or diverted shall accrue~to the~:arnounts required~to be
restored pursu~ant`to~this section.. Within thirty days from the date>'aTchalfenge is~successful the:
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Contcoiler shall make the transfer required by<the continuous appropriation and issue a notice.
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to the<partiesthst-.the transfer. has:b'een_coiripleted..
(d)~If in any challenge brought pursuant to~thi5 section a ,restramng Girder or preliminary
injunction is issued,ahe plamtiffsaor petitioners shall-.not be,;required to post a•;fon`d o6iigating
the plaintiffs:or petitioners to iridemnify.rthe government defendants or the.S'tafe~of California-
for~ariy damage the;restran+ngorder or preliminary +n~uncton-ma;y cause.
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SECfI0N:5,.
Section 16~of Arficie,Xyh:ofth,e Eoristitutiorr-requires h"at:a~sp'ec#iedfportiomof the axes
jev~ed>upon the taxable,property::irt a redevelopment`projeet each yearbe allocated to-the
redevelopment agency to repay' indebtedness .incurred for the purpose: of e)im`inating~;blight
~~. , : R
,_ within the redevelopment'project area, Section 16 of Araicle XVI prah+6its the Legislature from.
`reallocating some or all of that=specisfied~'portiq,n of the taxes to the State,an,agency: of the
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., State, or any other taxingjurisdictian; irisfead3of to~th`e re"~evelopm"entagericy: Tlie Legislature
-.has been illegally circumventing Section 16 of Article XVl;in recent years by requiring
.;~ redevelopment agencies to transfer a portion of those taxes foc purposesatheP than~the
.~
financing of "redevelopment projects. A purpose of the amendnierits made by this measure is o
4s" .prohibit the Legislature from requiring,,after~the•taxes:have:;been::allocated~to:a redevelopment
agency, that the redevelopment agency transfer some ar all'of those taxes.to~the State; an
,:
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~` y_ j _,, ~~ fall of those "taxesfor the benefii;:af the
;agent of theState 'or a ur+sdiction~ or use some or
.State; an agency of the State, ors jurisdiction.
SECTION 6. Continuous Appropriations. a '
Pt
The continuous app,ropnat+on~s provided for in,`this Act are intended toibe
.. "appropriatioris~made by_aaw" wthiii`the meanin''of Section 7 of-Articie`XVI of the California
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Constitution.
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SECTION 7. ;Liberal:Consteuction.
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'> ' - The. provisions of this Act•shall be libecafly constcued`iri order taeffectuate"its, purposes..
SECTION 8.~ Conflicting Statutes.
Any statute enacted between Qctober~21; 2009 and_the effect+ve.date~ofrthis measure;
that would have been prohibited:if this measure were.in effect on the date the statute was
enacted, is hereby repealed. "
:SECTION 9 !Conflicting B•a:ILot~fVieasures.
In the event tlh,atxfls measure and another measure:or mea5,urtes~refating to the
direction or redirection of revenue"s dedicated to funding services~provided by local
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Attachment 3
RESOLUTION 1N SUPPORT OF THE LOCAL TAXPAYER, PUBLIC SAFETY AND
TRANSPORTATION PROTECTION ACT OF 2010
WHEREAS, California voters have repeatedly passed separate ballot measures to stop
state raids of local government funds, and to dedicate the taxes on gasoline to fund local and
state transportation improvement projects; and
WHEREAS., these'local government funds. are critical to provide the police and fire,
emergency response, parks, libraries and other vital local services that residents rely upon every
day, and gas tax funds are vital to maintain and.improve local streets and roads, to make road
safety improvements, relieve traffic congestion, and provide masse transit; and
WHEREAS, despite the fact that voters have repeatedly passed measures to prevent
the state from taking these revenues dedicated to funding local government services and
transportation improvement projects, the State Legislature has seized and borrowed billions of
dollars from local governments and transportation funds; and:
WHEREAS, a coalition of-local government, transportation and transit advocates filed
a .constitutional amendment with the California Attorney General, called the Local Taxpayer,
Public Safety, and Transportation Profeetion Act of 2010, for potential placement on California's
Noverrrber 2010 statewide ballot; and
WHEREAS, approval of this ballot initiative would close loopholes and .change he
. constitution to further prevent state politicians from seizing,. diverting, shifting, borrowing,
transferring, suspending or otherwise taking or :interfering; with taY revenues dedicated to funding
local government services, .including redevelopment, or dedicated' to transportation improvement
projects'and mass transit.
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NOW, THEREFORE, BE IT RESOLVED~that the City of Petaluma formally endorses
the proposed constitutional amendment called the Locai Taxpayer,~Public Safety and
Transportation Protection Act of 2010; and hereby authorizes the listing of the City of Petaluma
in support of this Act, and instructs the City Clerk to fax a copy of this resolution to campaign
offices at 916-442-3510.
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