California Senate Bill SBX330 Latest Draft

 BILL NUMBER: SBX3 30AMENDED BILL TEXT AMENDED IN SENATE JUNE 29, 2009 INTRODUCED BY Senator Ducheny APRIL 13, 2009  An act relating to the Budget Act of 2009.   An act to amend Sections 11001.5 and 11003 of the Revenue and Taxation Code, and to amend Sections 17600, 17600.10, and 17600.15 of, and to add Sections 15200.01 and 17600.16 to, the Welfare and Institutions Code, relating to public   social services, and making an appropriation therefor.  LEGISLATIVE COUNSEL'S DIGEST SB 30, as amended, Ducheny.  Budget Act of 2009.   Human service programs: CalWORKs: county share of cost.   This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2009.   (1) The Vehicle License Fee (VLF) Law establishes, in lieu of any ad valorem property tax upon vehicles, an annual license fee upon any vehicle subject to registration in this state. The California Constitution authorizes the Legislature to deposit an amount of revenues derived from a specified portion of the vehicle license fee rate into the Local Revenue Fund, for allocation to cities, counties, and cities and counties. Existing law requires the Controller to deposit 74.9% of the revenues collected under the VLF Law in the State Treasury to the credit of the Local Revenue Fund.   This bill would require, on and after July 1, 2009, that 88.6% of those revenues be deposited into the Local Revenue Fund.   Existing law requires the amount appropriated by the Legislature for the use of the Department of Motor Vehicles and the Franchise Tax Board in implementing the VLF Law to be transferred from the Motor Vehicle License Fee Account in the Transportation Tax Fund to the Motor Vehicle Account in the State Transportation Fund.   This bill would require, for the 2009-10 fiscal year and each fiscal year thereafter, that this amount be equal to 1.98% of the total amount of money collected for applications accepted under the VLF Law for the fiscal year.   (2) Existing federal law provides for allocation of federal funds through the federal Temporary Assistance for Needy Families (TANF) block grant program to eligible states, with California's version of this program being known as the California Work Opportunity and Responsibility to Kids (CalWORKs) program. Under the CalWORKs program each county provides cash assistance and other benefits to qualified low-income families and individuals who meet specified eligibility criteria. Existing law continually appropriates money from the General Fund to pay for a share of aid grant costs under the CalWORKs program.   Existing law provides for the establishment of the Sales Tax Account in the continuously appropriated Local Revenue Fund for the allocation of sales and use tax revenues to local government, which includes, among others, a Social Services Subaccount. Under existing law, cities and counties that receive funds from the Local Revenue Fund are required to establish and maintain a local health and welfare trust fund comprised of specified accounts, including a social services account.   Existing law requires the Controller, for the 1992-93 fiscal year and fiscal years thereafter, to make monthly deposits of the sales tax proceeds from revenues deposited to the credit of the Local Revenue Fund, to the subaccounts of the Sales Tax Account, as specified.   Existing law further contains requirements for monthly allocations of these funds to each county's local health and welfare trust fund subaccounts.   This bill would create a new subaccount, the CalWORKs Subaccount, in the Sales Tax Account of the Local Revenue Fund, from which moneys would be allocated to counties for the purpose of funding a portion of the counties' share of aid grant costs under the CalWORKs program. The bill would require counties to create a CalWORKs account within their local health and welfare trust funds.   This bill would require moneys in the CalWORKs Subaccount to be deposited into the county CalWORKs accounts, and would require the Department of Finance to annually develop a monthly allocation schedule to be used by the Controller in making each county's allocation of funds from the CalWORKs Subaccount, as specified.   This bill, for the 2009-10 fiscal year, would require $300,000,000 of the funds in the Sales Tax Account of the Local Revenue Fund to be allocated to the CalWORKS Subaccount in that account, before making any allocations to the other subaccounts in that fund. The bill would reduce the state's share of costs for CalWORKs aid grant costs to 89% to reflect this allocation. For subsequent fiscal years, an amount of funds from the Sales Tax Account would be required, in accordance with a prescribed formula, to be allocated to the CalWORKs Subaccount, prior to any allocations being made to other subaccounts in the Sales Tax Account, for allocation to counties to pay for an adjustment in the counties' share of aid grant costs, required to be made pursuant to the bill, that would reflect the amount of this allocation.   Because the reduction in the percentage of the state CalWORKs contribution would result in an increase in the required county contribution, this bill would impose a state-mandated local program.   By increasing deposits into the continuously appropriated Local Revenue Fund, the bill would make an appropriation.   The   (3)     The  California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. The Governor issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on December 19, 2008. This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on December 19, 2008, pursuant to the California Constitution.  (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.   This bill would provide that no reimbursement is required by this act for a specified reason.  Vote: majority. Appropriation:  no   yes  . Fiscal committee:  no   yes  . State-mandated local program:  no   yes  . THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Section 11001.5 of the   Revenue and Taxation Code  is amended to read:  11001.5. (a) (1) Notwithstanding Section 11001, and except as provided in paragraph (2) and in subdivisions (b) and (d), 24.33 percent,  and  on and after July 1, 2004, 74.9 percent,  and on and after July 1, 2009, 88.6 percent,  of the moneys collected by the department under this part shall be reported monthly to the Controller, and at the same time, deposited in the State Treasury to the credit of the Local Revenue Fund, as established pursuant to Section 17600 of the Welfare and Institutions Code. All other moneys collected by the department under this part shall continue to be deposited to the credit of the Motor Vehicle License Fee Account in the Transportation Tax Fund and first allocated to the County of Orange as provided in subdivision (a) of Section 11005 and as necessary for the service of indebtedness as pledged by Sections 25350.6 and 53585.1 of the Government Code and in accordance with written instructions provided by the Controller under Sections 25350.7, 25350.9, and 53585.1 of the Government Code, and the balance shall be allocated to each city and city and county as otherwise provided by law. (2) For the period beginning on and after July 1, 2003, and ending on February 29, 2004, the Controller shall deposit an amount equal to 28.07 percent of the moneys collected by the department under this part in the State Treasury to the credit of the Local Revenue Fund. All other moneys collected by the department under this part shall continue to be deposited to the credit of the Motor Vehicle License Fee Account in the Transportation Tax Fund and allocated to each city, county, and city and county as otherwise provided by law. (b) (1) Notwithstanding Section 11001, net funds collected as a result of procedures developed for greater compliance with vehicle license fee laws in order to increase the amount of vehicle license fee collections shall be reported monthly to the Controller, and at the same time, deposited in the State Treasury to the credit of the Vehicle License Collection Account of the Local Revenue Fund as established pursuant to Section 17600 of the Welfare and Institutions Code. All revenues in excess of fourteen million dollars ($14,000,000) in the 2004-05 fiscal year and in any fiscal year thereafter shall be allocated to cities, counties, and cities and counties as follows: (A) (i) Fifty percent shall be paid to the cities and cities and counties of this state in the proportion that the population of each city or city and county bears to the total population of all cities and cities and counties in this state, as determined by the population research unit of the Department of Finance. For purposes of this subparagraph, the population of each city or city and county is that population determined by the last federal decennial or special census, or a subsequent census validated by the population research unit or subsequent estimate prepared pursuant to Section 2107.2 of the Streets and Highways Code. (ii) In the case of a city incorporated subsequent to the last federal census, or a subsequent census validated by the population research unit, the population research unit shall determine the population of the city. In the case of unincorporated territory annexed to a city subsequent to the last federal census, or a subsequent census validated by the population research unit, the population research unit shall determine the population of the annexed territory by the use of any federal decennial or special census, or estimate prepared pursuant to Section 2107.2 of the Streets and Highways Code. In the case of the consolidation of one city with another subsequent to the last federal census, or a subsequent census validated by the population research unit, the population of the consolidated city, for the purpose of this subparagraph, is the aggregate population of the respective cities as determined by the last federal census, or a subsequent census or estimate validated by the population research unit. (B) Fifty percent shall be paid to the counties and cities and counties in the proportion that the population of each county or city and county bears to the total population of all counties and cities and counties, as determined by the population research unit. For purposes of this subparagraph, the population of each county or city and county is that determined by the last federal census, or subsequent census validated by the population research unit, or as determined by Section 11005.6 of the Revenue and Taxation Code. (2) The amendments made to this section by the act that added this paragraph are operative upon the enactment of that act. However, the amendments made by the act that added this paragraph apply to revenues in the Vehicle License Collection Account in excess of fourteen million dollars ($14,000,000) in the 2004-05 fiscal year and any fiscal year thereafter. (c) Notwithstanding Section 11001, 25.72 percent of the moneys collected by the department on or after August 1, 1991, and before August 1, 1992, under this part shall be reported monthly to the Controller, and at the same time, deposited in the State Treasury to the credit of the Local Revenue Fund, as established pursuant to Section 17600 of the Welfare and Institutions Code. All other moneys collected by the department under this part shall continue to be deposited to the credit of the Motor Vehicle License Fee Account in the Transportation Tax Fund and allocated to each city, county, and city and county as otherwise provided by law. (d) Notwithstanding any other provision of law, both of the following apply: (1) This section is operative for the period beginning on and after March 1, 2004. (2) It is the intent of the Legislature that the total amount deposited by the Controller in the State Treasury to the credit of the Local Revenue Fund for the 2003-04 fiscal year be equal to the total amount that would have been deposited to the credit of the Local Revenue Fund if paragraph (1) of subdivision (a) was applied during that entire fiscal year. The department shall calculate and notify the Controller of the adjustment amounts that are required by this paragraph to be deposited in the State Treasury to the credit of the Local Revenue Fund. The amounts deposited in the State Treasury to the credit of the Local Revenue Fund pursuant to this paragraph shall be deemed to have been deposited during the 2003-04 fiscal year. (e) This section does not amend nor is it intended to amend or impair Section 25350 and following of, Section 53584 and following of, the Government Code, or any other statute dealing with the interception of funds.  SEC. 2.   Section 11003 of the   Revenue and Taxation Code   is amended to read:  11003. The amount appropriated by the Legislature for the use of the Department of Motor Vehicles and the Franchise Tax Board for the enforcement of this part shall be transferred from the Motor Vehicle License Fee Account in the Transportation Tax Fund to the Motor Vehicle Account in the State Transportation Fund.  That   For the 2009-10 fiscal year and each fiscal year thereafter, that  amount shall be  determined so that the appropriate costs for registration and motor vehicle license fee activities are apportioned between the recipients of revenues in proportion to the revenues that would have been received by those recipients if the total fee imposed under this part was 2 percent of the market value of a vehicle   equal to 1.98 percent of the total amount of money to be collected for accepted applications under this part for the fiscal year  .  SEC. 3.   Section 15200.01 is added to the  Welfare and Institutions Code   , to read:   15200.01. (a) Notwithstanding Section 15200 or any other provision of law, for the 2009-10 fiscal year and each fiscal year thereafter, the state share of the aid grant costs specified in subdivision (a), and paragraphs (1) and (2) of subdivision (e), of Section 11450, payable to each county for the support and maintenance of needy children, shall equal 89 percent. (b) Commencing with the 2010-11 fiscal year, and each fiscal year thereafter, the percentage provided to each county pursuant to subdivision (a) shall be adjusted by the Department of Finance to reflect the increased sales tax revenue deposited in the CalWORKs Subaccount pursuant to paragraph (3) of subdivision (b) of Section 17600.15.   SEC. 4.   Section 17600 of the   Welfare and Institutions Code   is amended to read:  17600. (a) There is hereby created the Local Revenue Fund, which shall have all of the following accounts: (1) The Sales Tax Account. (2) The Vehicle License Fee Account. (3) The Vehicle License Collection Account. (4) The Sales Tax Growth Account. (5) The Vehicle License Fee Growth Account. (b) The Sales Tax Account shall have all of the following subaccounts: (1) The Mental Health Subaccount. (2) The Social Services Subaccount. (3) The Health Subaccount.  (4) The CalWORKs Subaccount. Moneys in this subaccount shall be allocated to counties pursuant to this article for the purpose of funding a portion of the county share of aid grant costs under the CalWORKs program.  (c) The Sales Tax Growth Account shall have all of the following subaccounts: (1) The Caseload Subaccount. (2) The Base Restoration Subaccount. (3) The Indigent Health Equity Subaccount. (4) The Community Health Equity Subaccount. (5) The Mental Health Equity Subaccount. (6) The State Hospital Mental Health Equity Subaccount. (7) The County Medical Services Subaccount. (8) The General Growth Subaccount. (9) The Special Equity Subaccount. (d) Notwithstanding Section 13340 of the Government Code, the Local Revenue Fund is hereby continuously appropriated, without regard to fiscal years, for the purpose of this chapter. (e) The Local Revenue Fund shall be invested in the Surplus Money Investment Fund and all interest earned shall be distributed in January and July among the accounts and subaccounts in proportion to the amounts deposited into each subaccount, except as provided in subdivision (f). (f) If a distribution required by subdivision (e) would cause a subaccount to exceed its limitations imposed pursuant to any of the following, the distribution shall be made among the remaining subaccounts in proportion to the amounts deposited into each subaccount in the six prior months: (1) Subdivision (a) of Section 17605. (2) Paragraph (1) of subdivision (a) of Section 17605.05. (3) Subdivision (b) of Section 17605.10. (4) Subdivision (c) of Section 17605.10.  SEC. 5.  Section 17600.10 of the   Welfare and Institutions Code   is amended to read:  17600.10. (a) Each county and city and county receiving funds in accordance with this chapter shall establish and maintain a local health and welfare trust fund comprised of the following accounts: (1) The mental health account. (2) The social services account. (3) The health account.  (4) The CalWORKs account.  (b) Each city receiving funds in accordance with this chapter shall establish and maintain a local health and welfare trust fund comprised of a health account and a mental health account.  SEC. 6.   Section 17600.15 of the   Welfare and Institutions Code   is amended to read:  17600.15. (a) Of the sales tax proceeds from revenues collected in the 1991-92 fiscal year which are deposited to the credit of the Local Revenue Fund, 51.91 percent shall be credited to the Mental Health Subaccount, 36.17 percent shall be credited to the Social Services Subaccount, and 11.92 percent shall be credited to the Health Subaccount of the Sales Tax Account. (b)  For   (1)    Except as otherwise provided in paragraphs (2) and (3), for the 1992-93 fiscal year and fiscal years thereafter, of the sales tax proceeds from revenues deposited to the credit of the Local Revenue Fund, the Controller shall make monthly deposits to the Mental Health Subaccount, the Social Services Subaccount, and the Health Subaccount of the Sales Tax Account until the deposits equal the amounts that were allocated to counties, cities, and cities and counties mental health accounts, social services accounts, and health accounts, respectively, of the local health and welfare trust funds in the prior fiscal year pursuant to this chapter from the Sales Tax Account and the Sales Tax Growth Account. Any excess sales tax revenues received pursuant to Sections 6051.2 and 6201.2 of the Revenue and Taxation Code shall be deposited in the Sales Tax Growth Account of the Local Revenue Fund.  (2) For the 2009-10 fiscal year, before making the monthly deposits required by paragraph (1), the Controller shall deposit, prorated on a monthly basis, the total sum of three hundred million dollars ($300,000,000) of the sales tax proceeds deposited to the credit of the Local Revenue Fund into the CalWORKs Subaccount.   (3) For the 2010-11 fiscal year and each fiscal year thereafter, before making the monthly deposits required by paragraph (1), the Controller shall make monthly deposits of the sales tax proceeds from revenues deposited to the credit of the Local Revenue Fund into the CalWORKs Subaccount, in an amount that equals the difference between the following:   (A) The amount determined pursuant to Section 11003 of the Revenue and Taxation Code for that fiscal year for the use of the Department of Motor Vehicles and the Franchise Tax Board for the enforcement of the Vehicle License Fee Law (Part 5 (commencing with Section 10701) of Division 2 of the Revenue and Taxation Code).   (B) The amount for the use of the Department of Motor Vehicles and the Franchise Tax Board for the enforcement of the Vehicle License Fee Law as would have been determined for that fiscal year under Section 11003 of the Revenue and Taxation Code as it read on January 1, 2009.   SEC. 7.   Section 17600.16 is added to the   Welfare and Institutions Code   , to read:   17600.16. (a) Moneys in the CalWORKs Subaccount shall be deposited into the county CalWORKs accounts established pursuant to paragraph (4) of subdivision (a) of Section 17600.10. (b) The Department of Finance shall annually develop a monthly allocation schedule to be used by the Controller in making each county's allocation of funds from the CalWORKs Subaccount. The schedule shall reflect the increased share of cost of each county as a result of the amendments to subdivision (a) of Section 15200 made by the act that added this section.   SEC. 8.   This act addresses the fiscal emergency declared by the Governor by proclamation on December 19, 2008, pursuant to subdivision (f) of Section 10 of Article IV of the California Constitution.   SEC. 9.   No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because this act provides local agencies with the revenue necessary to defray the additional costs resulting from the transfer by this act of additional financial responsibilities to local agencies.   SECTION 1.   It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2009.   SEC. 2.   This act addresses the fiscal emergency declared by the Governor by proclamation on December 19, 2008, pursuant to subdivision (f) of Section 10 of Article IV of the California Constitution.