An act to add Section 130350.7
to,
to
the Public Utilities Code, relating to transportation.

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


SECTION 1.
The Legislature finds and declares all of the following:
(a) Various economic studies have shown that the biggest burden on family incomes is the cost of housing and transportation. These two variables greatly affect the quality of life for Californians.
(b) Los Angeles County voters have recognized the importance of investing in a transportation network that is responsive to the needs of commuters and transit users and that facilitates the movement of goods in the region. Los Angeles County has three existing voter-approved sales tax measures for transportation projects administered by Los Angeles County Metropolitan Transportation Authority (MTA).
(c) In 1980, voters in Los Angeles County approved Proposition A, a sales tax of one-half of 1 percent on most retail sales in Los Angeles County. The MTA returns 25 percent of Proposition A proceeds to the cities in Los Angeles County for transportation purposes. Thirty-five percent of Proposition A proceeds is required to be used for rail development while the remaining 40 percent is for discretionary purposes. Almost all of the discretionary portion is used to fund bus service provided by the MTA and 16 other municipal bus operators within Los Angeles County. The collection of the sales tax is ongoing.
(d) In 1990, voters in Los Angeles County approved Proposition C, an additional sales tax of one-half of 1 percent on retail sales in Los Angeles County. The MTA returns 20 percent of Proposition C proceeds to the cities in Los Angeles County for transportation purposes. Forty percent of the Proposition C proceeds is required to be used for construction and operation of the bus transit and rail system, 5 percent to expand rail and bus security, 10 percent for commuter
rail,
rail
and construction of transit centers, park and ride lots, and freeway bus stops, and 25 percent for transit-related improvements to freeways and state highways. The collection of the sales tax is ongoing.
(e) Most recently, voters in Los Angeles County approved Measure R in 2008. Measure R is an ordinance authorizing an additional sales tax of one-half of 1 percent to fund traffic relief and rail expansion according to an expenditure plan contained in the ordinance. Measure R became effective July 1, 2009, and will remain in effect for 30 years.
(f) MTA has been entrusted with the responsibility and has the voters’ confidence that it will protect and use the sales tax funding responsibly and according to the rules approved by the voters.
SEC. 2.
Section 130350.7 is added to the Public Utilities Code, to read:
130350.7.
(a) The Los Angeles County Metropolitan Transportation Authority (MTA), in addition to any other tax it is authorized to impose or has imposed, may impose a transactions and use tax at the rate of 0.5 percent, for a period not to exceed 30 years, that is applicable in the incorporated and unincorporated areas of the County of Los Angeles.
(b) The ordinance imposing the tax shall contain all of the following:
(1) An expenditure plan that lists the transportation projects and programs to be funded from net revenues from the tax. The expenditure plan shall appear in the ordinance as an exhibit. The expenditure plan shall include measures that ensure net revenues are shared equitably between regions of the county.
(2) Provisions conforming to the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code), except as otherwise provided in subdivision (f).
(3) A provision limiting the MTA’s costs of administering the ordinance and the net revenues from the tax to 1.5 percent of the total tax revenues.
(4) A requirement that the net revenues from the tax, defined to mean the total tax revenues less any refunds, costs of administration by the State Board of Equalization, and the MTA’s administration costs, shall be used by the MTA to fund transportation projects and programs identified in the expenditure plan.
(5) A requirement that the MTA, during the period that the ordinance is operative, allocate
____
20
percent of all net revenues derived from the tax for bus operations. These revenues shall be allocated to all eligible and included municipal transit operators in the County of Los Angeles and to the MTA, in accordance with Section 99285. However, the allocations to the MTA and eligible and included municipal operators shall be made solely from revenues derived from a tax imposed pursuant to this section, and not from local discretionary sources. Funds allocated by MTA to itself pursuant to this section shall be used for transit operations and shall not supplant funds from any other source allocated by MTA to itself for public transit operations. Funds allocated by MTA to the eligible and included municipal operators pursuant to this section shall be used for transit operations and shall not supplant any funds authorized by other provisions of law and allocated by MTA to the eligible and included municipal operators for public transit. In addition to this amount, the MTA shall allocate
____
5
percent of all net revenues derived from the tax for rail operations.
(c) The MTA shall notify the Legislature prior to the adoption of amendments to the adopted expenditure plan.
(d) The ordinance shall be adopted by the MTA board, which shall also adopt a resolution that submits the ordinance to the voters.
(e) The ordinance shall become operative pursuant to Section 130352 if approved by two-thirds of the voters voting on the measure, pursuant to subdivision (d) of Section 2 of Article XIII C of the California Constitution.
(f) The MTA may incur bonded indebtedness payable from the net revenues of the tax pursuant to the bond issuance provisions of this chapter and any successor act.
(g) The tax authorized by this section shall be imposed pursuant to the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code), notwithstanding the combined rate limitation in Section 7251.1 of the Revenue and Taxation Code.

Summary: Existing law authorizes the Los Angeles County Metropolitan Transportation Authority (MTA) to impose, in addition to any other tax that it is authorized to impose, a transactions and use tax at a rate of 0.5% for the funding of specified transportation-related projects and programs, subject to various requirements, including the adoption of an expenditure plan and voter approval. Existing law authorizes the MTA to seek voter approval to extend the transactions and use tax pursuant to an amended ordinance, subject to various requirements, including adoption of an amended expenditure plan that, among other things, updates certain cost estimates and identifies expected completion dates for projects and programs under the previous expenditure plan, and also requires the amended expenditure plan to be included in an updated long range transportation plan, as specified.
This bill would authorize the MTA to impose an additional transportation transactions and use tax at a rate of 0.5%, for a period not to exceed 30 years, subject to various requirements, including the adoption of an expenditure plan and voter approval.
The Transactions and Use Tax Law limits to 2% the combined rate of all transactions and use taxes imposed in any county, with certain exceptions.
This bill would exempt the transactions and use tax authorized by the bill from this limitation.