State Codes and Statutes

Statutes > California > Rtc > 7101-7107

REVENUE AND TAXATION CODE
SECTION 7101-7107



7101.  All fees, taxes, interest, and penalties imposed and all
amounts of tax required to be paid to the state under this part
shall, except as provided in Section 6452.1, be paid to the board in
the form of remittances payable to the State Board of Equalization of
the State of California. The board shall transmit the payments to
the Treasurer to be deposited in the State Treasury to the credit of
the Retail Sales Tax Fund.



7101.3.  Notwithstanding Section 7101, all revenues, less refunds,
derived from the taxes imposed to Sections 6051.5 and 6201.5 shall be
deposited in the State Treasury to the credit of the Fiscal Recovery
Fund, as established pursuant to Section 99008 of the Government
Code.


7102.  The money in the fund shall, upon order of the Controller, be
drawn therefrom for refunds under this part, credits or refunds
pursuant to Section 60202, and refunds pursuant to Section 1793.25 of
the Civil Code, or be transferred in the following manner:
   (a) (1) All revenues, less refunds, derived under this part at the
4 3/4-percent rate, including the imposition of sales and use taxes
with respect to the sale, storage, use, or other consumption of motor
vehicle fuel which would not have been received if the sales and use
tax rate had been 5 percent and if motor vehicle fuel, as defined
for purposes of the Motor Vehicle Fuel License Tax Law (Part 2
(commencing with Section 7301)), had been exempt from sales and use
taxes, shall be estimated by the State Board of Equalization, with
the concurrence of the Department of Finance, and shall be
transferred quarterly to the Public Transportation Account, a trust
fund in the State Transportation Fund, except as modified as follows:
   (A) For the 2001-02 fiscal year, those transfers may not be more
than eighty-one million dollars ($81,000,000) plus one-half of the
amount computed pursuant to this paragraph that exceeds eighty-one
million dollars ($81,000,000).
   (B) For the 2002-03 fiscal year, those transfers may not be more
than thirty-seven million dollars ($37,000,000) plus one-half of the
amount computed pursuant to this paragraph that exceeds thirty-seven
million dollars ($37,000,000).
   (C) For the 2003-04 fiscal year, no transfers shall be made
pursuant to this paragraph, except that if the amount to be otherwise
transferred pursuant to this paragraph is in excess of eighty-seven
million four hundred fifty thousand dollars ($87,450,000), then the
amount of that excess shall be transferred.
   (D) For the 2004-05 fiscal year, no transfers shall be made
pursuant to this paragraph, and of the amount that would otherwise
have been transferred, one hundred forty million dollars
($140,000,000) shall instead be transferred to the Traffic Congestion
Relief Fund as partial repayment of amounts owed by the General Fund
pursuant to Item 2600-011-3007 of the Budget Act of 2002 (Chapter
379 of the Statutes of 2002).
   (E) For the 2005-06 fiscal year, no transfers shall be made
pursuant to this paragraph.
   (F) For the 2006-07 fiscal year, the revenues estimated pursuant
to this paragraph shall, notwithstanding any other provision of this
paragraph or any other provision of law, be transferred and allocated
as follows:
   (i) The first two hundred million dollars ($200,000,000) shall be
transferred to the Transportation Deferred Investment Fund as partial
repayment of the amounts owed by the General Fund to that fund
pursuant to Section 7106.
   (ii) The next one hundred twenty-five million dollars
($125,000,000) shall be transferred to the Bay Area Toll Account for
expenditure pursuant to Section 188.6 of the Streets and Highways
Code.
   (iii) Of the remaining revenues, thirty-three million dollars
($33,000,000) shall be transferred to the Public Transportation
Account to support appropriations from that account in the Budget Act
of 2006.
   (iv) The remaining revenues shall be transferred to the Public
Transportation Account for allocation as follows:
   (I) Twenty percent to the Department of Transportation for
purposes of Section 99315 of the Public Utilities Code.
   (II) Forty percent to the Controller, for allocation pursuant to
Section 99314 of the Public Utilities Code.
   (III) Forty percent to the Controller, for allocation pursuant to
Section 99313 of the Public Utilities Code.
   (G) For the 2007-08 fiscal year, the first one hundred fifty-five
million four hundred ninety-one thousand eight hundred thirty-seven
dollars ($155,491,837) in revenue estimated pursuant to this
paragraph each quarter shall, notwithstanding any other provision of
this paragraph or any other provision of law, be transferred
quarterly to the Mass Transportation Fund. If revenue in any quarter
is less than that amount, the transfer in the subsequent quarter or
quarters shall be increased so that the total transferred for the
fiscal year is six hundred twenty-one million nine hundred
sixty-seven thousand three hundred forty-eight dollars
($621,967,348).
   (H) For the 2008-09 fiscal year and every fiscal year thereafter,
50 percent of the revenue estimated pursuant to this paragraph each
quarter shall, notwithstanding any other provision of this paragraph
or any other provision of law, and except as provided in subparagraph
(I), be transferred to the Mass Transportation Fund. Notwithstanding
this requirement, for the 2008-09 fiscal year, the amount of three
hundred eight million seven hundred thirty-five thousand dollars
($308,735,000) for each of the first three quarters, and the amount
of one hundred fifteen million twenty-nine thousand dollars
($115,029,000) for the fourth quarter, shall be transferred to the
Mass Transportation Fund. If revenue for any quarter is less than the
specified amount, the transfer in the subsequent quarter or quarters
shall be increased so that the total transfer for the fiscal year is
one billion forty-one million two hundred thirty-four thousand
dollars ($1,041,234,000).
   (I) For the 2009-10 to 2012-13 fiscal years, inclusive, all
revenue estimated pursuant to this paragraph shall, notwithstanding
any other provision of this paragraph or any other provision of law,
be transferred quarterly to the Mass Transportation Fund.
   (2) All revenues, less refunds, derived under this part at the 4
3/4-percent rate, resulting from increasing, after December 31, 1989,
the rate of tax imposed pursuant to the Motor Vehicle Fuel License
Tax Law on motor vehicle fuel, as defined for purposes of that law,
shall be transferred quarterly to the Public Transportation Account,
a trust fund in the State Transportation Fund.
   (3) All revenues, less refunds, derived under this part at the 4
3/4-percent rate from the imposition of sales and use taxes on fuel,
as defined for purposes of the Use Fuel Tax Law (Part 3 (commencing
with Section 8601)) and the Diesel Fuel Tax Law (Part 31 (commencing
with Section 60001)), shall be estimated by the State Board of
Equalization, with the concurrence of the Department of Finance, and
shall be transferred quarterly to the Public Transportation Account,
a trust fund in the State Transportation Fund.
   (4) All revenues, less refunds, derived under this part from the
taxes imposed pursuant to Sections 6051.2 and 6201.2 shall be
transferred to the Sales Tax Account of the Local Revenue Fund for
allocation to cities and counties as prescribed by statute.
   (5) All revenues, less refunds, derived from the taxes imposed
pursuant to Section 35 of Article XIII of the California Constitution
shall be transferred to the Public Safety Account in the Local
Public Safety Fund created in Section 30051 of the Government Code
for allocation to counties as prescribed by statute.
   (b) The balance shall be transferred to the General Fund.
   (c) The estimates required by subdivision (a) shall be based on
taxable transactions occurring during a calendar year, and the
transfers required by subdivision (a) shall be made during the fiscal
year that commences during that same calendar year. Transfers
required by paragraphs (1), (2), and (3) of subdivision (a) shall be
estimated by the State Board of Equalization, with the concurrence of
the Department of Finance, and shall be made quarterly.
   (d) Notwithstanding the designation of the Public Transportation
Account as a trust fund pursuant to subdivision (a), the Controller
may use the Public Transportation Account for loans to the General
Fund as provided in Sections 16310 and 16381 of the Government Code.
The loans shall be repaid with interest from the General Fund at the
Pooled Money Investment Account rate.
   (e) The Legislature may amend this section, by statute passed in
each house of the Legislature by rollcall vote entered in the
journal, two-thirds of the membership concurring, if the statute is
consistent with, and furthers the purposes of this section.



7102.1.  Notwithstanding subdivision (b) of Section 7102, the
revenues, less refunds, derived from the tax in Sections 6051.8 and
6201.8 shall be estimated by the State Board of Equalization, with
the concurrence of the Department of Finance, and shall be
transferred quarterly to the Public Transportation Account in the
State Transportation Fund.



7103.1.  (a) All moneys in the Mass Transportation Fund shall be
transferred to the Public Transportation Account on the date that
fund ceases to exist pursuant to the repeal of Section 7103.
   (b) This section shall remain in effect only until January 1,
2011, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2011, deletes or extends
that date.


7104.  (a) The Transportation Investment Fund (hereafter the fund)
is hereby created in the State Treasury. Notwithstanding Section
13340 of the Government Code, the moneys in the fund are continuously
appropriated without regard to fiscal years for disbursement in the
manner and for the purposes set forth in this section.
   (b) All of the following shall occur on a quarterly basis:
   (1) The State Board of Equalization, in consultation with the
Department of Finance, shall estimate the amount that is transferred
to the General Fund under subdivision (b) of Section 7102 that is
attributable to revenue collected for the sale, storage, use, or
other consumption in this state of motor vehicle fuel, as defined in
Section 7326.
   (2) The State Board of Equalization shall inform the Controller,
in writing, of the amount estimated under paragraph (1).
   (3) Commencing with the 2003-04 fiscal year, the Controller shall
transfer the amount estimated under paragraph (1) from the General
Fund to the fund.
   (c) For each quarter during the period commencing on July 1, 2003,
and ending on June 30, 2008, the Controller shall make all of the
following transfers and apportionments from the funds identified for
transfer under paragraph (2) of subdivision (b) in the following
order:
   (1) To the Traffic Congestion Relief Fund created in the State
Treasury by Section 14556.5 of the Government Code, the sum of one
hundred sixty-nine million five hundred thousand dollars
($169,500,000), except that the transfer for the final quarter shall
be ninety-three million four hundred thousand dollars ($93,400,000),
for a total transfer of three billion three hundred thirteen million
nine hundred thousand dollars ($3,313,900,000).
   (2) To the Public Transportation Account, a trust fund in the
State Transportation Fund, 20 percent of the amount remaining after
the transfer required under paragraph (1). Funds transferred under
this paragraph shall be made available as follows:
   (A) To the Department of Transportation, 50 percent for purposes
of subdivision (a) or (b) of Section 99315 of the Public Utilities
Code, subject to appropriation by the Legislature.
   (B) To the Controller, 25 percent for allocation pursuant to
Section 99314 of the Public Utilities Code. Funds allocated under
this subparagraph shall be subject to all of the provisions governing
funds allocated under Section 99314 of the Public Utilities Code.
For the 2007-08 fiscal year, these funds are continuously
appropriated to the Controller for purposes of this subparagraph.
   (C) To the Controller, 25 percent for allocation pursuant to
Section 99313 of the Public Utilities Code. Funds allocated under
this subparagraph shall be subject to all of the provisions governing
funds allocated under Section 99313 of the Public Utilities Code.
For the 2007-08 fiscal year, these funds are continuously
appropriated to the Controller for purposes of this subparagraph.
   (3) To the Department of Transportation for expenditure for
programming for transportation capital improvement projects subject
to all of the provisions governing the State Transportation
Improvement Program, 40 percent of the amount remaining after the
transfer required under paragraph (1), except that in the 2006-07 and
2007-08 fiscal years, the transfer shall be 80 percent of the amount
remaining after the transfer required under paragraph (1).
   (4) To the Controller for apportionment to the counties, including
a city and county, 20 percent of the amount remaining after the
transfer required under paragraph (1), except that in the 2006-07 and
2007-08 fiscal years, no transfer may be made under this paragraph.
Funds transferred under this paragraph shall be allocated in
accordance with the following formulas:
   (A) Seventy-five percent of the funds payable under this paragraph
shall be apportioned among the counties in the proportion that the
number of fee-paid and exempt vehicles that are registered in the
county bears to the number of fee-paid and exempt vehicles registered
in the state.
   (B) Twenty-five percent of the funds payable under this paragraph
shall be apportioned among the counties in the proportion that the
number of miles of maintained county roads in each county bears to
the total number of miles of maintained county roads in the state.
For the purposes of apportioning funds under this subparagraph, any
roads within the boundaries of a city and county that are not state
highways shall be deemed to be county roads.
   (5) To the Controller for apportionment to cities, including a
city and county, 20 percent of the amount remaining after the
transfer required under paragraph (1), except that in the 2006-07 and
2007-08 fiscal years, no transfer may be made under this paragraph.
Funds transferred under this paragraph shall be apportioned among the
cities in the proportion that the total population of the city bears
to the total population of all the cities in the state.
   (d) Funds received under paragraph (4) or (5) of subdivision (c)
shall be deposited as follows in order to avoid the commingling of
those funds with other local funds:
   (1) In the case of a city, into the city account that is
designated for the receipt of state funds allocated for
transportation purposes.
   (2) In the case of a county, into the county road fund.
   (3) In the case of a city and county, into a local account that is
designated for the receipt of state funds allocated for
transportation purposes.
   (e) Funds allocated to a city, county, or city and county under
paragraph (4) or (5) of subdivision (c) shall be used only for street
and highway maintenance, rehabilitation, reconstruction, and storm
damage repair. For purposes of this section, the following terms have
the following meanings:
   (1) "Maintenance" means either or both of the following:
   (A) Patching.
   (B) Overlay and sealing.
   (2) "Reconstruction" includes any overlay, sealing, or widening of
the roadway, if the widening is necessary to bring the roadway width
to the desirable minimum width consistent with the geometric design
criteria of the department for 3R (reconstruction, resurfacing, and
rehabilitation) projects that are not on a freeway, but does not
include widening for the purpose of increasing the traffic capacity
of a street or highway.
   (3) "Storm damage repair" is repair or reconstruction of local
streets and highways and related drainage improvements that have been
damaged due to winter storms and flooding, and construction of
drainage improvements to mitigate future roadway flooding and damage
problems, in those jurisdictions that have been declared disaster
areas by the President of the United States, where the costs of those
repairs are ineligible for emergency funding with Federal Emergency
Relief (ER) funds or Federal Emergency Management Administration
(FEMA) funds.
   (f) (1) Cities and counties shall maintain their existing
commitment of local funds for street and highway maintenance,
rehabilitation, reconstruction, and storm damage repair in order to
remain eligible for the allocation of funds pursuant to paragraph (4)
or (5) of subdivision (c).
   (2) In order to receive any allocation pursuant to paragraph (4)
or (5) of subdivision (c), the city or county shall annually expend
from its general fund for street, road, and highway purposes an
amount not less than the annual average of its expenditures from its
general fund during the 1996-97, 1997-98, and 1998-99 fiscal years,
as reported to the Controller pursuant to Section 2151 of the Streets
and Highways Code. For purposes of this paragraph, in calculating a
city's or county's annual general fund expenditures and its average
general fund expenditures for the 1996-97, 1997-98, and 1998-99
fiscal years, any unrestricted funds that the city or county may
expend at its discretion, including vehicle in-lieu tax revenues and
revenues from fines and forfeitures, expended for street and highway
purposes shall be considered expenditures from the general fund.
One-time allocations that have been expended for street and highway
purposes, but which may not be available on an ongoing basis,
including revenue provided under the Teeter Plan Bond Law of 1994
(Chapter 6.6 (commencing with Section 54773) of Part 1 of Division 2
of Title 5 of the Government Code, may not be considered when
calculating a city's or county's annual general fund expenditures.
   (3) For any city incorporated after July 1, 1996, the Controller
shall calculate an annual average of expenditure for the period
between July 1, 1996, and December 31, 2000, inclusive, that the city
was incorporated.
   (4) For purposes of paragraph (2), the Controller may request
fiscal data from cities and counties in addition to data provided
pursuant to Section 2151, for the 1996-97, 1997-98, and 1998-99
fiscal years. Each city and county shall furnish the data to the
Controller not later than 120 days after receiving the request. The
Controller may withhold payment to cities and counties that do not
comply with the request for information or that provide incomplete
data.
   (5) The Controller may perform audits to ensure compliance with
paragraph (2) when deemed necessary. Any city or county that has not
complied with paragraph (2) shall reimburse the state for the funds
it received during that fiscal year. Any funds withheld or returned
as a result of a failure to comply with paragraph (2) shall be
reallocated to the other counties and cities whose expenditures are
in compliance.
   (6) If a city or county fails to comply with the requirements of
paragraph (2) in a particular fiscal year, the city or county may
expend during that fiscal year and the following fiscal year a total
amount that is not less than the total amount required to be expended
for those fiscal years for purposes of complying with paragraph (2).
   (7) The allocation made under paragraph (4) or (5) of subdivision
(c) shall be expended not later than the end of the fiscal year
following the fiscal year in which the allocation was made, and any
funds not expended within that period shall be returned to the
Controller and shall be reallocated to the other cities and counties
pursuant to the allocation formulas set forth in paragraph (4) or (5)
of subdivision (c).
   (g) The Los Angeles County Metropolitan Transportation Authority
shall give first priority for using its share of the funds made
available under subparagraphs (B) and (C) of paragraph (2) of
subdivision (c) to providing the levels of bus service mandated under
the consent decree entered into by the authority on October 29,
1996, in the case of Labor/Community Strategy Center, et al. v. Los
Angeles County Metropolitan Transportation Authority.
   (h) (1) For the purpose of allocating funds under paragraph (4) or
(5) of subdivision (c) to counties, cities, and a city and county,
the Controller shall use the most recent population estimates
prepared by the Demographic Research Unit of the Department of
Finance. For a city that incorporated after January 1, 1998, that
does not appear on the most recent population estimates prepared by
the Demographic Research Unit, the Controller shall use the
population determined for that city under Section 11005.3 of the
Revenue and Taxation Code.
   (2) The amendments made to Section 11005.3 by the act adding this
paragraph shall not apply to a population determination under
paragraph (1).
   (i) This section shall become inoperative on the date that all
encumbrances incurred for the projects funded under paragraph (3) of
subdivision (c) have been liquidated or on June 30, 2008, whichever
date is later, and as of the January 1 immediately following that
date is repealed.


7104.1.  Notwithstanding any other provision of law, the
requirements imposed on cities and counties by subdivision (f) of
Section 7104 shall not apply for any fiscal year in which the
transfer of revenues from the General Fund to the Transportation
Investment Fund is suspended pursuant to Article XIX B of the
California Constitution and funds consequently are not made available
for allocation to cities or counties pursuant to paragraphs (4) and
(5) of subdivision (c) of Section 7104.



7104.2.  (a) The Transportation Investment Fund (hereafter the fund)
in the State Treasury is hereby continued in existence. All revenues
transferred to the fund pursuant to Article XIX B of the California
Constitution beginning with the 2008-09 fiscal year shall be
available for expenditure as provided in this section.
Notwithstanding Section 13340 of the Government Code or any other
provision of law, moneys in the fund are continuously appropriated
without regard to fiscal years for disbursement in the manner and for
the purposes set forth in this section.
   (b) All of the following shall occur on a quarterly basis:
   (1) The State Board of Equalization, in consultation with the
Department of Finance, shall estimate the amount that is transferred
to the General Fund under subdivision (b) of Section 7102 that is
attributable to revenue collected for the sale, storage, use, or
other consumption in this state of motor vehicle fuel, as defined in
Section 7326.
   (2) The State Board of Equalization shall inform the Controller,
in writing, of the amount estimated under paragraph (1).
   (3) Commencing with the 2008-09 fiscal year, the Controller shall
transfer the amount estimated under paragraph (1) from the General
Fund to the fund.
   (c) For each quarter, commencing with the 2008-09 fiscal year, the
Controller shall make all of the following transfers and
apportionments from the fund:
   (1) To the Public Transportation Account, a trust fund in the
State Transportation Fund, 20 percent of the revenues deposited in
the fund. Funds transferred under this paragraph shall be made
available as follows:
   (A) Twenty-five percent for purposes of Section 99315 of the
Public Utilities Code, subject to appropriation by the Legislature.
   (B) Thirty-seven and one-half percent to the Controller, for
allocation pursuant to Section 99314 of the Public Utilities Code.
Funds allocated under this subparagraph shall be subject to all of
the provisions governing funds allocated under Section 99314 of the
Public Utilities Code. These funds are continuously appropriated to
the Controller for purposes of this subparagraph.
   (C) Thirty-seven and one-half percent to the Controller, for
allocation pursuant to Section 99313 of the Public Utilities Code.
Funds allocated under this subparagraph shall be subject to all of
the provisions governing funds allocated under Section 99313 of the
Public Utilities Code. These funds are continuously appropriated to
the Controller for purposes of this subparagraph.
   (D) Notwithstanding subparagraphs (A), (B), and (C), for the
2009-10 to 2012-13 fiscal years, inclusive, all funds transferred
under this paragraph shall be made available only for purposes of
Section 99315 of the Public Utilities Code, subject to appropriation
by the Legislature.
   (2) To the Department of Transportation for expenditure for
transportation capital improvement projects subject to all of the
rules governing the State Transportation Improvement Program, 40
percent of the revenues deposited in the fund.
   (3) To the Controller for apportionment pursuant to subparagraphs
(A) and (B), 40 percent of the revenues deposited in the fund.
   (A) Of the amount available under this paragraph, 50 percent shall
be apportioned by the Controller to the counties, including a city
and county, in accordance with the following formulas:
   (i) Seventy-five percent of the funds payable under this
subparagraph shall be apportioned among the counties in the
proportion that the number of fee-paid and exempt vehicles that are
registered in the county bears to the number of fee-paid and exempt
vehicles registered in the state.
   (ii) Twenty-five percent of the funds payable under this
subparagraph shall be apportioned among the counties in the
proportion that the number of miles of maintained county roads in
each county bears to the total number of miles of maintained county
roads in the state. For the purposes of apportioning funds under this
subparagraph, any roads within the boundaries of a city and county
that are not state highways shall be deemed to be county roads.
   (B) Of the amount available under this paragraph, 50 percent shall
be apportioned by the Controller to cities, including a city and
county, in the proportion that the total population of the city bears
to the total population of all the cities in the state.
   (d) Funds received under subparagraph (A) or (B) of paragraph (3)
of subdivision (c) shall be deposited as follows in order to avoid
the commingling of those funds with other local funds:
   (1) In the case of a city, into the city account that is
designated for the receipt of state funds allocated for
transportation purposes.
   (2) In the case of a county, into the county road fund.
   (3) In the case of a city and county, into a local account that is
designated for the receipt of state funds allocated for
transportation purposes.
   (e) Funds allocated to a city, county, or city and county under
subparagraph (A) or (B) of paragraph (3) of subdivision (c) shall be
used only for street and highway maintenance, rehabilitation,
reconstruction, and storm damage repair. For purposes of this
section, the following terms have the following meanings:
   (1) "Maintenance" means either or both of the following:
   (A) Patching.
   (B) Overlay and sealing.
   (2) "Reconstruction" includes any overlay, sealing, or widening of
the roadway, if the widening is necessary to bring the roadway width
to the desirable minimum width consistent with the geometric design
criteria of the department for 3R (reconstruction, resurfacing, and
rehabilitation) projects that are not on a freeway, but does not
include widening for the purpose of increasing the traffic capacity
of a street or highway.
   (3) "Storm damage repair" is repair or reconstruction of local
streets and highways and related drainage improvements that have been
damaged due to winter storms and flooding, and construction of
drainage improvements to mitigate future roadway flooding and damage
problems, in those jurisdictions that have been declared disaster
areas by the President of the United States, where the costs of those
repairs are ineligible for emergency funding with Federal Emergency
Relief (ER) funds or Federal Emergency Management Administration
(FEMA) funds.
   (f) (1) Cities and counties shall maintain their existing
commitment of local funds for street and highway maintenance,
rehabilitation, reconstruction, and storm damage repair in order to
remain eligible for the allocation of funds pursuant to subparagraph
(A) or (B) of paragraph (3) of subdivision (c).
   (2) In order to receive any allocation pursuant to subparagraph
(A) or (B) of paragraph (3) of subdivision (c), the city or county
shall annually expend from its general fund for street, road, and
highway purposes an amount not less than the annual average of its
expenditures from its general fund during the 1996-97, 1997-98, and
1998-99 fiscal years, as reported to the Controller pursuant to
Section 2151 of the Streets and Highways Code. For purposes of this
paragraph, in calculating a city's or county's annual general fund
expenditures and its average general fund expenditures for the
1996-97, 1997-98, and 1998-99 fiscal years, any unrestricted funds
that the city or county may expend at its discretion, including
vehicle in-lieu tax revenues and revenues from fines and forfeitures,
expended for street and highway purposes shall be considered
expenditures from the general fund. One-time allocations that have
been expended for street and highway purposes, but which may not be
available on an ongoing basis, including revenue provided under the
Teeter Plan Bond Law of 1994 (Chapter 6.6 (commencing with Section
54773) of Part 1 of Division 2 of Title 5 of the Government Code, may
not be considered when calculating a city's or county's annual
general fund expenditures.
   (3) For any city incorporated after July 1, 1996, the Controller
shall calculate an annual average of expenditure for the period
between July 1, 1996, and December 31, 2000, inclusive, that the city
was incorporated.
   (4) For purposes of paragraph (2), the Controller may request
fiscal data from cities and counties in addition to data provided
pursuant to Section 2151, for the 1996-97, 1997-98, and 1998-99
fiscal years. Each city and county shall furnish the data to the
Controller not later than 120 days after receiving the request. The
Controller may withhold payment to cities and counties that do not
comply with the request for information or that provide incomplete
data.
   (5) The Controller may perform audits to ensure compliance with
paragraph (2) when deemed necessary. Any city or county that has not
complied with paragraph (2) shall reimburse the state for the funds
it received during that fiscal year. Any funds withheld or returned
as a result of a failure to comply with paragraph (2) shall be
reallocated to the other counties and cities whose expenditures are
in compliance.
   (6) If a city or county fails to comply with the requirements of
paragraph (2) in a particular fiscal year, the city or county may
expend during that fiscal year and the following fiscal year a total
amount that is not less than the total amount required to be expended
for those fiscal years for purposes of complying with paragraph (2).
   (7) The allocation made under subparagraph (A) or (B) of paragraph
(3) of subdivision (c) shall be expended not later than the end of
the fiscal year following the fiscal year in which the allocation was
made, and any funds not expended within that period shall be
returned to the Controller and shall be reallocated to the other
cities and counties pursuant to the allocation formulas set forth in
subparagraph (A) or (B) of paragraph (3) of subdivision (c).
   (g) For the purpose of allocating funds under subparagraph (A) or
(B) of paragraph (3) of subdivision (c) to counties, cities, and a
city and county, the Controller shall use the most recent population
estimates prepared by the Demographic Research Unit of the Department
of Finance. For a city that incorporated after January 1, 2008, that
does not appear on the most recent population estimates prepared by
the Demographic Research Unit, the Controller shall use the
population determined for that city under Section 11005.3.
   (h) (1) Notwithstanding any other law, the quarterly
apportionments scheduled to be made in October 2009 and January 2010
pursuant to paragraph (3) of subdivision (c) shall be suspended and
deferred until May 31, 2010.
   (2) For the purpose of meeting the cash obligations associated
with ongoing budgeted costs, a city or county may make use of any
cash balance in its city or county road fund, including that
resulting from the receipt of funds pursuant to the Highway Safety,
Traffic Reduction, Air Quality, and Port Security Bond Act of 2006
(Chapter 12.49 (commencing with Section 8879.20) of Division 1 of
Title 2 of the Government Code (hereafter bond act)) for local street
and road maintenance, during the period of this suspension, without
the use of this cash being reflected as an expenditure of bond act
funds, provided the cash is replaced once this suspension is repaid.
Nothing in this paragraph shall change the fact that expenditures
must be accrued and reflected from the appropriate funding sources
for which the moneys were received and meet all requirements of those
funding sources.



7104.3.  Notwithstanding any other provision of law, the Department
of Finance may adjust the budgeting, accounting, and reporting system
for the Transportation Investment Fund so that unliquidated
encumbrances are not reflected in the fund balance or financial
statement.



7104.4.  All remaining obligations of the Transportation Investment
Fund as of July 1, 2010, that cannot be funded with resources in that
fund shall become obligations of the State Highway Account.



7105.  (a) The Transportation Deferred Investment Fund is hereby
created in the State Treasury. The Transportation Deferred Investment
Fund is to be considered part of the Transportation Investment Fund,
except as specifically required for accounting purposes, in order to
facilitate the repayment and allocation of revenues consistent with
paragraph (1) of subdivision (f) of Section 1 of Article XIX B of the
California Constitution as provided in this section and Section
7106.
   (b) Pursuant to Section 14557 of the Government Code, the transfer
of revenues from the General Fund to the Transportation Investment
Fund that would have otherwise been required under subdivision (a) of
Section 1 of Article XIX B of the California Constitution was
partially suspended for the 2003-04 fiscal year. The amount of the
transfer for the 2003-04 fiscal year was two hundred eighty-nine
million dollars ($289,000,000). According to the State Board of
Equalization calculations, with the concurrence of the Department of
Finance, the amount of the transfer suspended for the 2003-04 fiscal
year was eight hundred sixty-seven million five hundred sixty-eight
thousand dollars ($867,568,000). On or before June 30 of each fiscal
year until June 30, 2016, the Controller shall transfer an amount
from the General Fund to the Transportation Deferred Investment Fund
that is equal to the minimum repayment required by Article XIX B of
the California Constitution. The repayment shall also include
interest calculated at the Pooled Money Investment Account rate
relative to the amounts that would otherwise have been available for
the transportation programs described in paragraphs (2) to (5),
inclusive, of subdivision (c) of Section 7104. The amount to be
repaid by June 30, 2016, from the General Fund to the Transportation
Deferred Investment Fund shall be reduced by the amount of any
payment made to the Transportation Deferred Investment Fund from any
funding source, excluding subdivision (d). The moneys deposited in
the Transportation Deferred Investment Fund pursuant to this
subdivision are continuously appropriated without regard to fiscal
years for disbursement in the manner and for the purposes set forth
in this section.
   (c) The Controller, from the moneys deposited in the
Transportation Deferred Investment Fund pursuant to subdivision (b)
and Article XIX B of the California Constitution, shall make
transfers and apportionments of those funds in the same manner and
amounts that would have been made in the 2003-04 fiscal year from the
Transportation Investment Fund pursuant to Section 7104, as that
section read on January 1, 2003, if the transfer of funds from the
General Fund to the Transportation Investment Fund had not been
partially suspended for the 2003-04 fiscal year pursuant to Section
14557 of the Government Code, except that in the 2007-08 fiscal year
any remaining principle or interest owed to the Public Transportation
Account shall be repaid first before any other transfers are made.
However, in making those transfers and apportionments, the Controller
shall take into account and deduct therefrom any transfers and
apportionments that were made from the Transportation Investment Fund
in the 2003-04 fiscal year from funds made available pursuant to
subdivision (b) of Section 14557 of the Government Code. It is the
intent of the Legislature that, upon completion of the transfer of
funds pursuant to subdivision (b) from the General Fund to the
Transportation Deferred Investment Fund, each of the transportation
programs that was to have been funded during the 2003-04 fiscal year
from the Transportation Investment Fund pursuant to Section 7104 of
this code shall have received the amount of funding that the program
would have received in the absence of the suspension of the transfer
pursuant to Section 14557 of the Government Code.
   (d) The interest that is to be deposited in the Transportation
Deferred Investment Fund pursuant to subdivision (b) shall be
allocated proportionately to each program element in paragraphs (2)
to (5), inclusive, of subdivision (c) of Section 7104, based on the
amount that each program did not receive in the 2003-04 fiscal year
due to suspension of the transfer pursuant to Section 14557 of the
Government Code.
   (e) Four hundred ninety-five million dollars ($495,000,000) is
hereby appropriated from the General Fund to the Transportation
Deferred Investment Fund for the purpose of paying a portion of the
amount required to be paid pursuant to subdivision (b). The
Controller shall make the payment immediately upon enactment of the
statute amending this section in the 2005-06 Regular Session.
Notwithstanding subdivision (c), these funds, shall be distributed as
follows:
   (1) The first one hundred ninety-two million dollars
($192,000,000) and any interest due pursuant to this section shall
remain in the Transportation Deferred Investment Fund to be used for
projects in the State Transportation Improvement Program pursuant to
paragraph (3) of subdivision (c) of Section 7104.
   (2) The next one hundred ninety-two million dollars ($192,000,000)
and any interest due pursuant to this section shall be distributed
to cities and counties, as follows:
   (A) Ninety-six million dollars ($96,000,000) and any interest due
pursuant to this section shall be transferred to cities for the
purposes specified in Section 7104 pursuant to the formula in
paragraph (5) of subdivision (c) of that section.
   (B) Ninety-six million dollars ($96,000,000) and any interest due
pursuant to this section shall be transferred to counties for the
purposes specified in Section 7104 pursuant to the formula in
paragraph (4) of subdivision (c) of that section.
   (3) Ninety-six million dollars ($96,000,000) and any interest due
pursuant to this section shall be transferred to the Public
Transportation Account for allocation pursuant to Section 99312 of
the Public Utilities Code.
   (4) Any funds remaining following the distributions required by
paragraphs (1), (2), and (3) shall be transferred to the Traffic
Congestion Relief Fund, and shall be deemed to be funds received by
that fund in the 2003-04 fiscal year.
   (f) The Legislature finds and declares that continued investment
in transportation is essential for the California economy. That
investment reduces traffic congestion, assists in economic
development, improves the condition of local streets and roads, and
provides high-quality public transportation.
   (g) Notwithstanding any other provision of law, the Department of
Finance may adjust the budgeting, accounting, and reporting system
for the Transportation Deferred Investment Fund so that unliquidated
encumbrances are not reflected in the fund balance or financial
statement.


7106.  (a) Pursuant to Section 14558 of the Government Code, the
transfer of revenues from the General Fund to the Transportation
Investment Fund that would have otherwise been required under
subdivision (a) of Section 1 of Article XIX B of the California
Constitution was suspended for the 2004-05 fiscal year. According to
the State Board of Equalization calculations, with the concurrence of
the Department of Finance, the amount of the transfer suspended for
the 2004-05 fiscal year was one billion two hundred fifty-seven
million nine hundred forty-six thousand dollars ($1,257,946,000). On
or before June 30 of each fiscal year until June 30, 2016, the
Controller shall transfer an amount from the General Fund to the
Transportation Deferred Investment Fund that is equal to the minimum
repayment required by Article XIX B of the California Constitution.
The repayment shall also include interest calculated at the Pooled
Money Investment Account rate relative to the amounts that would
otherwise have been available for the transportation programs
described in paragraphs (2) to (5), inclusive, of subdivision (c) of
Section 7104. The amount to be repaid by June 30, 2016, from the
General Fund to the Transportation Deferred Investment Fund shall be
reduced by the amount of any payment made to the Transportation
Deferred Investment Fund from any funding source.
   (b) The money deposited in the Transportation Deferred Investment
Fund pursuant to this section is continuously appropriated without
regard to fiscal years for disbursement in the manner and for the
purposes set forth in this section.
   (c) The Controller, from the money deposited in the Transportation
Deferred Investment Fund pursuant to subdivision (a) and Article XIX
B of the California Constitution, shall make transfers and
apportionments of those funds in the same manner and amounts that
would have been made in the 2004-05 fiscal year from the
Transportation Investment Fund pursuant to Section 7104, as that
section read on January 1, 2003, if the transfer of funds from the
General Fund to the Transportation Investment Fund had not been
suspended for the 2004-05 fiscal year pursuant to Section 14558 of
the Government Code. It is the intent of the Legislature that upon
completion of the transfer of funds pursuant to subdivision (a) from
the General Fund to the Transportation Deferred Investment Fund that
each of the transportation programs that was to have been funded
during the 2004-05 fiscal year from the Transportation Investment
Fund pursuant to Section 7104 shall have received the amount of
funding that the program would have received in the absence of the
suspension of the transfer pursuant to Section 14558 of the
Government Code.
   (d) The interest that is to be deposited in the Transportation
Deferred Investment Fund pursuant to subdivision (a) shall be
allocated proportionately to each program element in paragraphs (2)
to (5), inclusive, of subdivision (c) of Section 7104, based on the
amount that each program did not receive in the 2004-05 fiscal year
due to suspension of the transfer pursuant to Section 14558 of the
Government Code.
   (e) Seven hundred twenty million dollars ($720,000,000) is hereby
appropriated from the General Fund to the Transportation Deferred
Investment Fund for the purpose of paying a portion of the amount
required to be paid pursuant to subdivision (a). The Controller shall
make the payment immediately upon enactment of the statute amending
this section in the 2005-06 Regular Session. In addition, two hundred
million dollars ($200,000,000) transferred to the Transportation
Deferred Investment Fund pursuant to subparagraph (F) of paragraph
(1) of subdivision (a) of Section 7102 shall also be available for
that purpose. Notwithstanding subdivision (c), these funds, totaling
nine hundred twenty million dollars ($920,000,000), shall be
distributed as follows:
   (1) The first two hundred thirty-two million dollars
($232,000,000) and any interest due pursuant to this section shall
remain in the Transportation Deferred Investment Fund to be used for
projects in the State Transportation Improvement Program pursuant to
paragraph (3) of subdivision (c) of Section 7104.
   (2) The next two hundred thirty-two million dollars ($232,000,000)
and any interest due pursuant to this section shall be distributed
to cities and counties, as follows:
   (A) One hundred sixteen million dollars ($116,000,000) and any
interest due pursuant to this section shall be transferred to cities
for the purposes specified in Section 7104 pursuant to the formula in
paragraph (5) of subdivision (c) of that section.
   (B) One hundred sixteen million dollars ($116,000,000) and any
interest due pursuant to this section shall be transferred to
counties for the purposes specified in Section 7104 pursuant to the
formula in paragraph (4) of subdivision (c) of that section.
   (3) One hundred sixteen million dollars ($116,000,000) and any
interest due pursuant to this section shall be transferred to the
Public Transportation Account for allocation pursuant to Section
99312 of the Public Utilities Code.
   (4) Any funds remaining following the distributions required by
paragraphs (1), (2), and (3) shall be transferred to the Traffic
Congestion Relief Fund, and shall be deemed to be funds received by
that fund in the 2004-05 fiscal year. It is estimated that the amount
to be available under this subparagraph will be three hundred
fifteen million dollars ($315,000,000).


7107.  Pursuant to the requirements of paragraph (1) of subdivision
(b) of Section 1 of Article XIX B of the California Constitution,
moneys in the Transportation Investment Fund derived from the
2005-06, 2006-07, and 2007-08 fiscal year transfers from the General
Fund made pursuant to subdivision (a) and paragraph (1) of
subdivision (b) of Section 1 of Article XIX B of the California
Constitution are hereby continuously appropriated without regard to
fiscal years for disbursement in the manner and for the purposes set
forth in Section 7104 as that section read on March 6, 2002.


State Codes and Statutes

Statutes > California > Rtc > 7101-7107

REVENUE AND TAXATION CODE
SECTION 7101-7107



7101.  All fees, taxes, interest, and penalties imposed and all
amounts of tax required to be paid to the state under this part
shall, except as provided in Section 6452.1, be paid to the board in
the form of remittances payable to the State Board of Equalization of
the State of California. The board shall transmit the payments to
the Treasurer to be deposited in the State Treasury to the credit of
the Retail Sales Tax Fund.



7101.3.  Notwithstanding Section 7101, all revenues, less refunds,
derived from the taxes imposed to Sections 6051.5 and 6201.5 shall be
deposited in the State Treasury to the credit of the Fiscal Recovery
Fund, as established pursuant to Section 99008 of the Government
Code.


7102.  The money in the fund shall, upon order of the Controller, be
drawn therefrom for refunds under this part, credits or refunds
pursuant to Section 60202, and refunds pursuant to Section 1793.25 of
the Civil Code, or be transferred in the following manner:
   (a) (1) All revenues, less refunds, derived under this part at the
4 3/4-percent rate, including the imposition of sales and use taxes
with respect to the sale, storage, use, or other consumption of motor
vehicle fuel which would not have been received if the sales and use
tax rate had been 5 percent and if motor vehicle fuel, as defined
for purposes of the Motor Vehicle Fuel License Tax Law (Part 2
(commencing with Section 7301)), had been exempt from sales and use
taxes, shall be estimated by the State Board of Equalization, with
the concurrence of the Department of Finance, and shall be
transferred quarterly to the Public Transportation Account, a trust
fund in the State Transportation Fund, except as modified as follows:
   (A) For the 2001-02 fiscal year, those transfers may not be more
than eighty-one million dollars ($81,000,000) plus one-half of the
amount computed pursuant to this paragraph that exceeds eighty-one
million dollars ($81,000,000).
   (B) For the 2002-03 fiscal year, those transfers may not be more
than thirty-seven million dollars ($37,000,000) plus one-half of the
amount computed pursuant to this paragraph that exceeds thirty-seven
million dollars ($37,000,000).
   (C) For the 2003-04 fiscal year, no transfers shall be made
pursuant to this paragraph, except that if the amount to be otherwise
transferred pursuant to this paragraph is in excess of eighty-seven
million four hundred fifty thousand dollars ($87,450,000), then the
amount of that excess shall be transferred.
   (D) For the 2004-05 fiscal year, no transfers shall be made
pursuant to this paragraph, and of the amount that would otherwise
have been transferred, one hundred forty million dollars
($140,000,000) shall instead be transferred to the Traffic Congestion
Relief Fund as partial repayment of amounts owed by the General Fund
pursuant to Item 2600-011-3007 of the Budget Act of 2002 (Chapter
379 of the Statutes of 2002).
   (E) For the 2005-06 fiscal year, no transfers shall be made
pursuant to this paragraph.
   (F) For the 2006-07 fiscal year, the revenues estimated pursuant
to this paragraph shall, notwithstanding any other provision of this
paragraph or any other provision of law, be transferred and allocated
as follows:
   (i) The first two hundred million dollars ($200,000,000) shall be
transferred to the Transportation Deferred Investment Fund as partial
repayment of the amounts owed by the General Fund to that fund
pursuant to Section 7106.
   (ii) The next one hundred twenty-five million dollars
($125,000,000) shall be transferred to the Bay Area Toll Account for
expenditure pursuant to Section 188.6 of the Streets and Highways
Code.
   (iii) Of the remaining revenues, thirty-three million dollars
($33,000,000) shall be transferred to the Public Transportation
Account to support appropriations from that account in the Budget Act
of 2006.
   (iv) The remaining revenues shall be transferred to the Public
Transportation Account for allocation as follows:
   (I) Twenty percent to the Department of Transportation for
purposes of Section 99315 of the Public Utilities Code.
   (II) Forty percent to the Controller, for allocation pursuant to
Section 99314 of the Public Utilities Code.
   (III) Forty percent to the Controller, for allocation pursuant to
Section 99313 of the Public Utilities Code.
   (G) For the 2007-08 fiscal year, the first one hundred fifty-five
million four hundred ninety-one thousand eight hundred thirty-seven
dollars ($155,491,837) in revenue estimated pursuant to this
paragraph each quarter shall, notwithstanding any other provision of
this paragraph or any other provision of law, be transferred
quarterly to the Mass Transportation Fund. If revenue in any quarter
is less than that amount, the transfer in the subsequent quarter or
quarters shall be increased so that the total transferred for the
fiscal year is six hundred twenty-one million nine hundred
sixty-seven thousand three hundred forty-eight dollars
($621,967,348).
   (H) For the 2008-09 fiscal year and every fiscal year thereafter,
50 percent of the revenue estimated pursuant to this paragraph each
quarter shall, notwithstanding any other provision of this paragraph
or any other provision of law, and except as provided in subparagraph
(I), be transferred to the Mass Transportation Fund. Notwithstanding
this requirement, for the 2008-09 fiscal year, the amount of three
hundred eight million seven hundred thirty-five thousand dollars
($308,735,000) for each of the first three quarters, and the amount
of one hundred fifteen million twenty-nine thousand dollars
($115,029,000) for the fourth quarter, shall be transferred to the
Mass Transportation Fund. If revenue for any quarter is less than the
specified amount, the transfer in the subsequent quarter or quarters
shall be increased so that the total transfer for the fiscal year is
one billion forty-one million two hundred thirty-four thousand
dollars ($1,041,234,000).
   (I) For the 2009-10 to 2012-13 fiscal years, inclusive, all
revenue estimated pursuant to this paragraph shall, notwithstanding
any other provision of this paragraph or any other provision of law,
be transferred quarterly to the Mass Transportation Fund.
   (2) All revenues, less refunds, derived under this part at the 4
3/4-percent rate, resulting from increasing, after December 31, 1989,
the rate of tax imposed pursuant to the Motor Vehicle Fuel License
Tax Law on motor vehicle fuel, as defined for purposes of that law,
shall be transferred quarterly to the Public Transportation Account,
a trust fund in the State Transportation Fund.
   (3) All revenues, less refunds, derived under this part at the 4
3/4-percent rate from the imposition of sales and use taxes on fuel,
as defined for purposes of the Use Fuel Tax Law (Part 3 (commencing
with Section 8601)) and the Diesel Fuel Tax Law (Part 31 (commencing
with Section 60001)), shall be estimated by the State Board of
Equalization, with the concurrence of the Department of Finance, and
shall be transferred quarterly to the Public Transportation Account,
a trust fund in the State Transportation Fund.
   (4) All revenues, less refunds, derived under this part from the
taxes imposed pursuant to Sections 6051.2 and 6201.2 shall be
transferred to the Sales Tax Account of the Local Revenue Fund for
allocation to cities and counties as prescribed by statute.
   (5) All revenues, less refunds, derived from the taxes imposed
pursuant to Section 35 of Article XIII of the California Constitution
shall be transferred to the Public Safety Account in the Local
Public Safety Fund created in Section 30051 of the Government Code
for allocation to counties as prescribed by statute.
   (b) The balance shall be transferred to the General Fund.
   (c) The estimates required by subdivision (a) shall be based on
taxable transactions occurring during a calendar year, and the
transfers required by subdivision (a) shall be made during the fiscal
year that commences during that same calendar year. Transfers
required by paragraphs (1), (2), and (3) of subdivision (a) shall be
estimated by the State Board of Equalization, with the concurrence of
the Department of Finance, and shall be made quarterly.
   (d) Notwithstanding the designation of the Public Transportation
Account as a trust fund pursuant to subdivision (a), the Controller
may use the Public Transportation Account for loans to the General
Fund as provided in Sections 16310 and 16381 of the Government Code.
The loans shall be repaid with interest from the General Fund at the
Pooled Money Investment Account rate.
   (e) The Legislature may amend this section, by statute passed in
each house of the Legislature by rollcall vote entered in the
journal, two-thirds of the membership concurring, if the statute is
consistent with, and furthers the purposes of this section.



7102.1.  Notwithstanding subdivision (b) of Section 7102, the
revenues, less refunds, derived from the tax in Sections 6051.8 and
6201.8 shall be estimated by the State Board of Equalization, with
the concurrence of the Department of Finance, and shall be
transferred quarterly to the Public Transportation Account in the
State Transportation Fund.



7103.1.  (a) All moneys in the Mass Transportation Fund shall be
transferred to the Public Transportation Account on the date that
fund ceases to exist pursuant to the repeal of Section 7103.
   (b) This section shall remain in effect only until January 1,
2011, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2011, deletes or extends
that date.


7104.  (a) The Transportation Investment Fund (hereafter the fund)
is hereby created in the State Treasury. Notwithstanding Section
13340 of the Government Code, the moneys in the fund are continuously
appropriated without regard to fiscal years for disbursement in the
manner and for the purposes set forth in this section.
   (b) All of the following shall occur on a quarterly basis:
   (1) The State Board of Equalization, in consultation with the
Department of Finance, shall estimate the amount that is transferred
to the General Fund under subdivision (b) of Section 7102 that is
attributable to revenue collected for the sale, storage, use, or
other consumption in this state of motor vehicle fuel, as defined in
Section 7326.
   (2) The State Board of Equalization shall inform the Controller,
in writing, of the amount estimated under paragraph (1).
   (3) Commencing with the 2003-04 fiscal year, the Controller shall
transfer the amount estimated under paragraph (1) from the General
Fund to the fund.
   (c) For each quarter during the period commencing on July 1, 2003,
and ending on June 30, 2008, the Controller shall make all of the
following transfers and apportionments from the funds identified for
transfer under paragraph (2) of subdivision (b) in the following
order:
   (1) To the Traffic Congestion Relief Fund created in the State
Treasury by Section 14556.5 of the Government Code, the sum of one
hundred sixty-nine million five hundred thousand dollars
($169,500,000), except that the transfer for the final quarter shall
be ninety-three million four hundred thousand dollars ($93,400,000),
for a total transfer of three billion three hundred thirteen million
nine hundred thousand dollars ($3,313,900,000).
   (2) To the Public Transportation Account, a trust fund in the
State Transportation Fund, 20 percent of the amount remaining after
the transfer required under paragraph (1). Funds transferred under
this paragraph shall be made available as follows:
   (A) To the Department of Transportation, 50 percent for purposes
of subdivision (a) or (b) of Section 99315 of the Public Utilities
Code, subject to appropriation by the Legislature.
   (B) To the Controller, 25 percent for allocation pursuant to
Section 99314 of the Public Utilities Code. Funds allocated under
this subparagraph shall be subject to all of the provisions governing
funds allocated under Section 99314 of the Public Utilities Code.
For the 2007-08 fiscal year, these funds are continuously
appropriated to the Controller for purposes of this subparagraph.
   (C) To the Controller, 25 percent for allocation pursuant to
Section 99313 of the Public Utilities Code. Funds allocated under
this subparagraph shall be subject to all of the provisions governing
funds allocated under Section 99313 of the Public Utilities Code.
For the 2007-08 fiscal year, these funds are continuously
appropriated to the Controller for purposes of this subparagraph.
   (3) To the Department of Transportation for expenditure for
programming for transportation capital improvement projects subject
to all of the provisions governing the State Transportation
Improvement Program, 40 percent of the amount remaining after the
transfer required under paragraph (1), except that in the 2006-07 and
2007-08 fiscal years, the transfer shall be 80 percent of the amount
remaining after the transfer required under paragraph (1).
   (4) To the Controller for apportionment to the counties, including
a city and county, 20 percent of the amount remaining after the
transfer required under paragraph (1), except that in the 2006-07 and
2007-08 fiscal years, no transfer may be made under this paragraph.
Funds transferred under this paragraph shall be allocated in
accordance with the following formulas:
   (A) Seventy-five percent of the funds payable under this paragraph
shall be apportioned among the counties in the proportion that the
number of fee-paid and exempt vehicles that are registered in the
county bears to the number of fee-paid and exempt vehicles registered
in the state.
   (B) Twenty-five percent of the funds payable under this paragraph
shall be apportioned among the counties in the proportion that the
number of miles of maintained county roads in each county bears to
the total number of miles of maintained county roads in the state.
For the purposes of apportioning funds under this subparagraph, any
roads within the boundaries of a city and county that are not state
highways shall be deemed to be county roads.
   (5) To the Controller for apportionment to cities, including a
city and county, 20 percent of the amount remaining after the
transfer required under paragraph (1), except that in the 2006-07 and
2007-08 fiscal years, no transfer may be made under this paragraph.
Funds transferred under this paragraph shall be apportioned among the
cities in the proportion that the total population of the city bears
to the total population of all the cities in the state.
   (d) Funds received under paragraph (4) or (5) of subdivision (c)
shall be deposited as follows in order to avoid the commingling of
those funds with other local funds:
   (1) In the case of a city, into the city account that is
designated for the receipt of state funds allocated for
transportation purposes.
   (2) In the case of a county, into the county road fund.
   (3) In the case of a city and county, into a local account that is
designated for the receipt of state funds allocated for
transportation purposes.
   (e) Funds allocated to a city, county, or city and county under
paragraph (4) or (5) of subdivision (c) shall be used only for street
and highway maintenance, rehabilitation, reconstruction, and storm
damage repair. For purposes of this section, the following terms have
the following meanings:
   (1) "Maintenance" means either or both of the following:
   (A) Patching.
   (B) Overlay and sealing.
   (2) "Reconstruction" includes any overlay, sealing, or widening of
the roadway, if the widening is necessary to bring the roadway width
to the desirable minimum width consistent with the geometric design
criteria of the department for 3R (reconstruction, resurfacing, and
rehabilitation) projects that are not on a freeway, but does not
include widening for the purpose of increasing the traffic capacity
of a street or highway.
   (3) "Storm damage repair" is repair or reconstruction of local
streets and highways and related drainage improvements that have been
damaged due to winter storms and flooding, and construction of
drainage improvements to mitigate future roadway flooding and damage
problems, in those jurisdictions that have been declared disaster
areas by the President of the United States, where the costs of those
repairs are ineligible for emergency funding with Federal Emergency
Relief (ER) funds or Federal Emergency Management Administration
(FEMA) funds.
   (f) (1) Cities and counties shall maintain their existing
commitment of local funds for street and highway maintenance,
rehabilitation, reconstruction, and storm damage repair in order to
remain eligible for the allocation of funds pursuant to paragraph (4)
or (5) of subdivision (c).
   (2) In order to receive any allocation pursuant to paragraph (4)
or (5) of subdivision (c), the city or county shall annually expend
from its general fund for street, road, and highway purposes an
amount not less than the annual average of its expenditures from its
general fund during the 1996-97, 1997-98, and 1998-99 fiscal years,
as reported to the Controller pursuant to Section 2151 of the Streets
and Highways Code. For purposes of this paragraph, in calculating a
city's or county's annual general fund expenditures and its average
general fund expenditures for the 1996-97, 1997-98, and 1998-99
fiscal years, any unrestricted funds that the city or county may
expend at its discretion, including vehicle in-lieu tax revenues and
revenues from fines and forfeitures, expended for street and highway
purposes shall be considered expenditures from the general fund.
One-time allocations that have been expended for street and highway
purposes, but which may not be available on an ongoing basis,
including revenue provided under the Teeter Plan Bond Law of 1994
(Chapter 6.6 (commencing with Section 54773) of Part 1 of Division 2
of Title 5 of the Government Code, may not be considered when
calculating a city's or county's annual general fund expenditures.
   (3) For any city incorporated after July 1, 1996, the Controller
shall calculate an annual average of expenditure for the period
between July 1, 1996, and December 31, 2000, inclusive, that the city
was incorporated.
   (4) For purposes of paragraph (2), the Controller may request
fiscal data from cities and counties in addition to data provided
pursuant to Section 2151, for the 1996-97, 1997-98, and 1998-99
fiscal years. Each city and county shall furnish the data to the
Controller not later than 120 days after receiving the request. The
Controller may withhold payment to cities and counties that do not
comply with the request for information or that provide incomplete
data.
   (5) The Controller may perform audits to ensure compliance with
paragraph (2) when deemed necessary. Any city or county that has not
complied with paragraph (2) shall reimburse the state for the funds
it received during that fiscal year. Any funds withheld or returned
as a result of a failure to comply with paragraph (2) shall be
reallocated to the other counties and cities whose expenditures are
in compliance.
   (6) If a city or county fails to comply with the requirements of
paragraph (2) in a particular fiscal year, the city or county may
expend during that fiscal year and the following fiscal year a total
amount that is not less than the total amount required to be expended
for those fiscal years for purposes of complying with paragraph (2).
   (7) The allocation made under paragraph (4) or (5) of subdivision
(c) shall be expended not later than the end of the fiscal year
following the fiscal year in which the allocation was made, and any
funds not expended within that period shall be returned to the
Controller and shall be reallocated to the other cities and counties
pursuant to the allocation formulas set forth in paragraph (4) or (5)
of subdivision (c).
   (g) The Los Angeles County Metropolitan Transportation Authority
shall give first priority for using its share of the funds made
available under subparagraphs (B) and (C) of paragraph (2) of
subdivision (c) to providing the levels of bus service mandated under
the consent decree entered into by the authority on October 29,
1996, in the case of Labor/Community Strategy Center, et al. v. Los
Angeles County Metropolitan Transportation Authority.
   (h) (1) For the purpose of allocating funds under paragraph (4) or
(5) of subdivision (c) to counties, cities, and a city and county,
the Controller shall use the most recent population estimates
prepared by the Demographic Research Unit of the Department of
Finance. For a city that incorporated after January 1, 1998, that
does not appear on the most recent population estimates prepared by
the Demographic Research Unit, the Controller shall use the
population determined for that city under Section 11005.3 of the
Revenue and Taxation Code.
   (2) The amendments made to Section 11005.3 by the act adding this
paragraph shall not apply to a population determination under
paragraph (1).
   (i) This section shall become inoperative on the date that all
encumbrances incurred for the projects funded under paragraph (3) of
subdivision (c) have been liquidated or on June 30, 2008, whichever
date is later, and as of the January 1 immediately following that
date is repealed.


7104.1.  Notwithstanding any other provision of law, the
requirements imposed on cities and counties by subdivision (f) of
Section 7104 shall not apply for any fiscal year in which the
transfer of revenues from the General Fund to the Transportation
Investment Fund is suspended pursuant to Article XIX B of the
California Constitution and funds consequently are not made available
for allocation to cities or counties pursuant to paragraphs (4) and
(5) of subdivision (c) of Section 7104.



7104.2.  (a) The Transportation Investment Fund (hereafter the fund)
in the State Treasury is hereby continued in existence. All revenues
transferred to the fund pursuant to Article XIX B of the California
Constitution beginning with the 2008-09 fiscal year shall be
available for expenditure as provided in this section.
Notwithstanding Section 13340 of the Government Code or any other
provision of law, moneys in the fund are continuously appropriated
without regard to fiscal years for disbursement in the manner and for
the purposes set forth in this section.
   (b) All of the following shall occur on a quarterly basis:
   (1) The State Board of Equalization, in consultation with the
Department of Finance, shall estimate the amount that is transferred
to the General Fund under subdivision (b) of Section 7102 that is
attributable to revenue collected for the sale, storage, use, or
other consumption in this state of motor vehicle fuel, as defined in
Section 7326.
   (2) The State Board of Equalization shall inform the Controller,
in writing, of the amount estimated under paragraph (1).
   (3) Commencing with the 2008-09 fiscal year, the Controller shall
transfer the amount estimated under paragraph (1) from the General
Fund to the fund.
   (c) For each quarter, commencing with the 2008-09 fiscal year, the
Controller shall make all of the following transfers and
apportionments from the fund:
   (1) To the Public Transportation Account, a trust fund in the
State Transportation Fund, 20 percent of the revenues deposited in
the fund. Funds transferred under this paragraph shall be made
available as follows:
   (A) Twenty-five percent for purposes of Section 99315 of the
Public Utilities Code, subject to appropriation by the Legislature.
   (B) Thirty-seven and one-half percent to the Controller, for
allocation pursuant to Section 99314 of the Public Utilities Code.
Funds allocated under this subparagraph shall be subject to all of
the provisions governing funds allocated under Section 99314 of the
Public Utilities Code. These funds are continuously appropriated to
the Controller for purposes of this subparagraph.
   (C) Thirty-seven and one-half percent to the Controller, for
allocation pursuant to Section 99313 of the Public Utilities Code.
Funds allocated under this subparagraph shall be subject to all of
the provisions governing funds allocated under Section 99313 of the
Public Utilities Code. These funds are continuously appropriated to
the Controller for purposes of this subparagraph.
   (D) Notwithstanding subparagraphs (A), (B), and (C), for the
2009-10 to 2012-13 fiscal years, inclusive, all funds transferred
under this paragraph shall be made available only for purposes of
Section 99315 of the Public Utilities Code, subject to appropriation
by the Legislature.
   (2) To the Department of Transportation for expenditure for
transportation capital improvement projects subject to all of the
rules governing the State Transportation Improvement Program, 40
percent of the revenues deposited in the fund.
   (3) To the Controller for apportionment pursuant to subparagraphs
(A) and (B), 40 percent of the revenues deposited in the fund.
   (A) Of the amount available under this paragraph, 50 percent shall
be apportioned by the Controller to the counties, including a city
and county, in accordance with the following formulas:
   (i) Seventy-five percent of the funds payable under this
subparagraph shall be apportioned among the counties in the
proportion that the number of fee-paid and exempt vehicles that are
registered in the county bears to the number of fee-paid and exempt
vehicles registered in the state.
   (ii) Twenty-five percent of the funds payable under this
subparagraph shall be apportioned among the counties in the
proportion that the number of miles of maintained county roads in
each county bears to the total number of miles of maintained county
roads in the state. For the purposes of apportioning funds under this
subparagraph, any roads within the boundaries of a city and county
that are not state highways shall be deemed to be county roads.
   (B) Of the amount available under this paragraph, 50 percent shall
be apportioned by the Controller to cities, including a city and
county, in the proportion that the total population of the city bears
to the total population of all the cities in the state.
   (d) Funds received under subparagraph (A) or (B) of paragraph (3)
of subdivision (c) shall be deposited as follows in order to avoid
the commingling of those funds with other local funds:
   (1) In the case of a city, into the city account that is
designated for the receipt of state funds allocated for
transportation purposes.
   (2) In the case of a county, into the county road fund.
   (3) In the case of a city and county, into a local account that is
designated for the receipt of state funds allocated for
transportation purposes.
   (e) Funds allocated to a city, county, or city and county under
subparagraph (A) or (B) of paragraph (3) of subdivision (c) shall be
used only for street and highway maintenance, rehabilitation,
reconstruction, and storm damage repair. For purposes of this
section, the following terms have the following meanings:
   (1) "Maintenance" means either or both of the following:
   (A) Patching.
   (B) Overlay and sealing.
   (2) "Reconstruction" includes any overlay, sealing, or widening of
the roadway, if the widening is necessary to bring the roadway width
to the desirable minimum width consistent with the geometric design
criteria of the department for 3R (reconstruction, resurfacing, and
rehabilitation) projects that are not on a freeway, but does not
include widening for the purpose of increasing the traffic capacity
of a street or highway.
   (3) "Storm damage repair" is repair or reconstruction of local
streets and highways and related drainage improvements that have been
damaged due to winter storms and flooding, and construction of
drainage improvements to mitigate future roadway flooding and damage
problems, in those jurisdictions that have been declared disaster
areas by the President of the United States, where the costs of those
repairs are ineligible for emergency funding with Federal Emergency
Relief (ER) funds or Federal Emergency Management Administration
(FEMA) funds.
   (f) (1) Cities and counties shall maintain their existing
commitment of local funds for street and highway maintenance,
rehabilitation, reconstruction, and storm damage repair in order to
remain eligible for the allocation of funds pursuant to subparagraph
(A) or (B) of paragraph (3) of subdivision (c).
   (2) In order to receive any allocation pursuant to subparagraph
(A) or (B) of paragraph (3) of subdivision (c), the city or county
shall annually expend from its general fund for street, road, and
highway purposes an amount not less than the annual average of its
expenditures from its general fund during the 1996-97, 1997-98, and
1998-99 fiscal years, as reported to the Controller pursuant to
Section 2151 of the Streets and Highways Code. For purposes of this
paragraph, in calculating a city's or county's annual general fund
expenditures and its average general fund expenditures for the
1996-97, 1997-98, and 1998-99 fiscal years, any unrestricted funds
that the city or county may expend at its discretion, including
vehicle in-lieu tax revenues and revenues from fines and forfeitures,
expended for street and highway purposes shall be considered
expenditures from the general fund. One-time allocations that have
been expended for street and highway purposes, but which may not be
available on an ongoing basis, including revenue provided under the
Teeter Plan Bond Law of 1994 (Chapter 6.6 (commencing with Section
54773) of Part 1 of Division 2 of Title 5 of the Government Code, may
not be considered when calculating a city's or county's annual
general fund expenditures.
   (3) For any city incorporated after July 1, 1996, the Controller
shall calculate an annual average of expenditure for the period
between July 1, 1996, and December 31, 2000, inclusive, that the city
was incorporated.
   (4) For purposes of paragraph (2), the Controller may request
fiscal data from cities and counties in addition to data provided
pursuant to Section 2151, for the 1996-97, 1997-98, and 1998-99
fiscal years. Each city and county shall furnish the data to the
Controller not later than 120 days after receiving the request. The
Controller may withhold payment to cities and counties that do not
comply with the request for information or that provide incomplete
data.
   (5) The Controller may perform audits to ensure compliance with
paragraph (2) when deemed necessary. Any city or county that has not
complied with paragraph (2) shall reimburse the state for the funds
it received during that fiscal year. Any funds withheld or returned
as a result of a failure to comply with paragraph (2) shall be
reallocated to the other counties and cities whose expenditures are
in compliance.
   (6) If a city or county fails to comply with the requirements of
paragraph (2) in a particular fiscal year, the city or county may
expend during that fiscal year and the following fiscal year a total
amount that is not less than the total amount required to be expended
for those fiscal years for purposes of complying with paragraph (2).
   (7) The allocation made under subparagraph (A) or (B) of paragraph
(3) of subdivision (c) shall be expended not later than the end of
the fiscal year following the fiscal year in which the allocation was
made, and any funds not expended within that period shall be
returned to the Controller and shall be reallocated to the other
cities and counties pursuant to the allocation formulas set forth in
subparagraph (A) or (B) of paragraph (3) of subdivision (c).
   (g) For the purpose of allocating funds under subparagraph (A) or
(B) of paragraph (3) of subdivision (c) to counties, cities, and a
city and county, the Controller shall use the most recent population
estimates prepared by the Demographic Research Unit of the Department
of Finance. For a city that incorporated after January 1, 2008, that
does not appear on the most recent population estimates prepared by
the Demographic Research Unit, the Controller shall use the
population determined for that city under Section 11005.3.
   (h) (1) Notwithstanding any other law, the quarterly
apportionments scheduled to be made in October 2009 and January 2010
pursuant to paragraph (3) of subdivision (c) shall be suspended and
deferred until May 31, 2010.
   (2) For the purpose of meeting the cash obligations associated
with ongoing budgeted costs, a city or county may make use of any
cash balance in its city or county road fund, including that
resulting from the receipt of funds pursuant to the Highway Safety,
Traffic Reduction, Air Quality, and Port Security Bond Act of 2006
(Chapter 12.49 (commencing with Section 8879.20) of Division 1 of
Title 2 of the Government Code (hereafter bond act)) for local street
and road maintenance, during the period of this suspension, without
the use of this cash being reflected as an expenditure of bond act
funds, provided the cash is replaced once this suspension is repaid.
Nothing in this paragraph shall change the fact that expenditures
must be accrued and reflected from the appropriate funding sources
for which the moneys were received and meet all requirements of those
funding sources.



7104.3.  Notwithstanding any other provision of law, the Department
of Finance may adjust the budgeting, accounting, and reporting system
for the Transportation Investment Fund so that unliquidated
encumbrances are not reflected in the fund balance or financial
statement.



7104.4.  All remaining obligations of the Transportation Investment
Fund as of July 1, 2010, that cannot be funded with resources in that
fund shall become obligations of the State Highway Account.



7105.  (a) The Transportation Deferred Investment Fund is hereby
created in the State Treasury. The Transportation Deferred Investment
Fund is to be considered part of the Transportation Investment Fund,
except as specifically required for accounting purposes, in order to
facilitate the repayment and allocation of revenues consistent with
paragraph (1) of subdivision (f) of Section 1 of Article XIX B of the
California Constitution as provided in this section and Section
7106.
   (b) Pursuant to Section 14557 of the Government Code, the transfer
of revenues from the General Fund to the Transportation Investment
Fund that would have otherwise been required under subdivision (a) of
Section 1 of Article XIX B of the California Constitution was
partially suspended for the 2003-04 fiscal year. The amount of the
transfer for the 2003-04 fiscal year was two hundred eighty-nine
million dollars ($289,000,000). According to the State Board of
Equalization calculations, with the concurrence of the Department of
Finance, the amount of the transfer suspended for the 2003-04 fiscal
year was eight hundred sixty-seven million five hundred sixty-eight
thousand dollars ($867,568,000). On or before June 30 of each fiscal
year until June 30, 2016, the Controller shall transfer an amount
from the General Fund to the Transportation Deferred Investment Fund
that is equal to the minimum repayment required by Article XIX B of
the California Constitution. The repayment shall also include
interest calculated at the Pooled Money Investment Account rate
relative to the amounts that would otherwise have been available for
the transportation programs described in paragraphs (2) to (5),
inclusive, of subdivision (c) of Section 7104. The amount to be
repaid by June 30, 2016, from the General Fund to the Transportation
Deferred Investment Fund shall be reduced by the amount of any
payment made to the Transportation Deferred Investment Fund from any
funding source, excluding subdivision (d). The moneys deposited in
the Transportation Deferred Investment Fund pursuant to this
subdivision are continuously appropriated without regard to fiscal
years for disbursement in the manner and for the purposes set forth
in this section.
   (c) The Controller, from the moneys deposited in the
Transportation Deferred Investment Fund pursuant to subdivision (b)
and Article XIX B of the California Constitution, shall make
transfers and apportionments of those funds in the same manner and
amounts that would have been made in the 2003-04 fiscal year from the
Transportation Investment Fund pursuant to Section 7104, as that
section read on January 1, 2003, if the transfer of funds from the
General Fund to the Transportation Investment Fund had not been
partially suspended for the 2003-04 fiscal year pursuant to Section
14557 of the Government Code, except that in the 2007-08 fiscal year
any remaining principle or interest owed to the Public Transportation
Account shall be repaid first before any other transfers are made.
However, in making those transfers and apportionments, the Controller
shall take into account and deduct therefrom any transfers and
apportionments that were made from the Transportation Investment Fund
in the 2003-04 fiscal year from funds made available pursuant to
subdivision (b) of Section 14557 of the Government Code. It is the
intent of the Legislature that, upon completion of the transfer of
funds pursuant to subdivision (b) from the General Fund to the
Transportation Deferred Investment Fund, each of the transportation
programs that was to have been funded during the 2003-04 fiscal year
from the Transportation Investment Fund pursuant to Section 7104 of
this code shall have received the amount of funding that the program
would have received in the absence of the suspension of the transfer
pursuant to Section 14557 of the Government Code.
   (d) The interest that is to be deposited in the Transportation
Deferred Investment Fund pursuant to subdivision (b) shall be
allocated proportionately to each program element in paragraphs (2)
to (5), inclusive, of subdivision (c) of Section 7104, based on the
amount that each program did not receive in the 2003-04 fiscal year
due to suspension of the transfer pursuant to Section 14557 of the
Government Code.
   (e) Four hundred ninety-five million dollars ($495,000,000) is
hereby appropriated from the General Fund to the Transportation
Deferred Investment Fund for the purpose of paying a portion of the
amount required to be paid pursuant to subdivision (b). The
Controller shall make the payment immediately upon enactment of the
statute amending this section in the 2005-06 Regular Session.
Notwithstanding subdivision (c), these funds, shall be distributed as
follows:
   (1) The first one hundred ninety-two million dollars
($192,000,000) and any interest due pursuant to this section shall
remain in the Transportation Deferred Investment Fund to be used for
projects in the State Transportation Improvement Program pursuant to
paragraph (3) of subdivision (c) of Section 7104.
   (2) The next one hundred ninety-two million dollars ($192,000,000)
and any interest due pursuant to this section shall be distributed
to cities and counties, as follows:
   (A) Ninety-six million dollars ($96,000,000) and any interest due
pursuant to this section shall be transferred to cities for the
purposes specified in Section 7104 pursuant to the formula in
paragraph (5) of subdivision (c) of that section.
   (B) Ninety-six million dollars ($96,000,000) and any interest due
pursuant to this section shall be transferred to counties for the
purposes specified in Section 7104 pursuant to the formula in
paragraph (4) of subdivision (c) of that section.
   (3) Ninety-six million dollars ($96,000,000) and any interest due
pursuant to this section shall be transferred to the Public
Transportation Account for allocation pursuant to Section 99312 of
the Public Utilities Code.
   (4) Any funds remaining following the distributions required by
paragraphs (1), (2), and (3) shall be transferred to the Traffic
Congestion Relief Fund, and shall be deemed to be funds received by
that fund in the 2003-04 fiscal year.
   (f) The Legislature finds and declares that continued investment
in transportation is essential for the California economy. That
investment reduces traffic congestion, assists in economic
development, improves the condition of local streets and roads, and
provides high-quality public transportation.
   (g) Notwithstanding any other provision of law, the Department of
Finance may adjust the budgeting, accounting, and reporting system
for the Transportation Deferred Investment Fund so that unliquidated
encumbrances are not reflected in the fund balance or financial
statement.


7106.  (a) Pursuant to Section 14558 of the Government Code, the
transfer of revenues from the General Fund to the Transportation
Investment Fund that would have otherwise been required under
subdivision (a) of Section 1 of Article XIX B of the California
Constitution was suspended for the 2004-05 fiscal year. According to
the State Board of Equalization calculations, with the concurrence of
the Department of Finance, the amount of the transfer suspended for
the 2004-05 fiscal year was one billion two hundred fifty-seven
million nine hundred forty-six thousand dollars ($1,257,946,000). On
or before June 30 of each fiscal year until June 30, 2016, the
Controller shall transfer an amount from the General Fund to the
Transportation Deferred Investment Fund that is equal to the minimum
repayment required by Article XIX B of the California Constitution.
The repayment shall also include interest calculated at the Pooled
Money Investment Account rate relative to the amounts that would
otherwise have been available for the transportation programs
described in paragraphs (2) to (5), inclusive, of subdivision (c) of
Section 7104. The amount to be repaid by June 30, 2016, from the
General Fund to the Transportation Deferred Investment Fund shall be
reduced by the amount of any payment made to the Transportation
Deferred Investment Fund from any funding source.
   (b) The money deposited in the Transportation Deferred Investment
Fund pursuant to this section is continuously appropriated without
regard to fiscal years for disbursement in the manner and for the
purposes set forth in this section.
   (c) The Controller, from the money deposited in the Transportation
Deferred Investment Fund pursuant to subdivision (a) and Article XIX
B of the California Constitution, shall make transfers and
apportionments of those funds in the same manner and amounts that
would have been made in the 2004-05 fiscal year from the
Transportation Investment Fund pursuant to Section 7104, as that
section read on January 1, 2003, if the transfer of funds from the
General Fund to the Transportation Investment Fund had not been
suspended for the 2004-05 fiscal year pursuant to Section 14558 of
the Government Code. It is the intent of the Legislature that upon
completion of the transfer of funds pursuant to subdivision (a) from
the General Fund to the Transportation Deferred Investment Fund that
each of the transportation programs that was to have been funded
during the 2004-05 fiscal year from the Transportation Investment
Fund pursuant to Section 7104 shall have received the amount of
funding that the program would have received in the absence of the
suspension of the transfer pursuant to Section 14558 of the
Government Code.
   (d) The interest that is to be deposited in the Transportation
Deferred Investment Fund pursuant to subdivision (a) shall be
allocated proportionately to each program element in paragraphs (2)
to (5), inclusive, of subdivision (c) of Section 7104, based on the
amount that each program did not receive in the 2004-05 fiscal year
due to suspension of the transfer pursuant to Section 14558 of the
Government Code.
   (e) Seven hundred twenty million dollars ($720,000,000) is hereby
appropriated from the General Fund to the Transportation Deferred
Investment Fund for the purpose of paying a portion of the amount
required to be paid pursuant to subdivision (a). The Controller shall
make the payment immediately upon enactment of the statute amending
this section in the 2005-06 Regular Session. In addition, two hundred
million dollars ($200,000,000) transferred to the Transportation
Deferred Investment Fund pursuant to subparagraph (F) of paragraph
(1) of subdivision (a) of Section 7102 shall also be available for
that purpose. Notwithstanding subdivision (c), these funds, totaling
nine hundred twenty million dollars ($920,000,000), shall be
distributed as follows:
   (1) The first two hundred thirty-two million dollars
($232,000,000) and any interest due pursuant to this section shall
remain in the Transportation Deferred Investment Fund to be used for
projects in the State Transportation Improvement Program pursuant to
paragraph (3) of subdivision (c) of Section 7104.
   (2) The next two hundred thirty-two million dollars ($232,000,000)
and any interest due pursuant to this section shall be distributed
to cities and counties, as follows:
   (A) One hundred sixteen million dollars ($116,000,000) and any
interest due pursuant to this section shall be transferred to cities
for the purposes specified in Section 7104 pursuant to the formula in
paragraph (5) of subdivision (c) of that section.
   (B) One hundred sixteen million dollars ($116,000,000) and any
interest due pursuant to this section shall be transferred to
counties for the purposes specified in Section 7104 pursuant to the
formula in paragraph (4) of subdivision (c) of that section.
   (3) One hundred sixteen million dollars ($116,000,000) and any
interest due pursuant to this section shall be transferred to the
Public Transportation Account for allocation pursuant to Section
99312 of the Public Utilities Code.
   (4) Any funds remaining following the distributions required by
paragraphs (1), (2), and (3) shall be transferred to the Traffic
Congestion Relief Fund, and shall be deemed to be funds received by
that fund in the 2004-05 fiscal year. It is estimated that the amount
to be available under this subparagraph will be three hundred
fifteen million dollars ($315,000,000).


7107.  Pursuant to the requirements of paragraph (1) of subdivision
(b) of Section 1 of Article XIX B of the California Constitution,
moneys in the Transportation Investment Fund derived from the
2005-06, 2006-07, and 2007-08 fiscal year transfers from the General
Fund made pursuant to subdivision (a) and paragraph (1) of
subdivision (b) of Section 1 of Article XIX B of the California
Constitution are hereby continuously appropriated without regard to
fiscal years for disbursement in the manner and for the purposes set
forth in Section 7104 as that section read on March 6, 2002.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Rtc > 7101-7107

REVENUE AND TAXATION CODE
SECTION 7101-7107



7101.  All fees, taxes, interest, and penalties imposed and all
amounts of tax required to be paid to the state under this part
shall, except as provided in Section 6452.1, be paid to the board in
the form of remittances payable to the State Board of Equalization of
the State of California. The board shall transmit the payments to
the Treasurer to be deposited in the State Treasury to the credit of
the Retail Sales Tax Fund.



7101.3.  Notwithstanding Section 7101, all revenues, less refunds,
derived from the taxes imposed to Sections 6051.5 and 6201.5 shall be
deposited in the State Treasury to the credit of the Fiscal Recovery
Fund, as established pursuant to Section 99008 of the Government
Code.


7102.  The money in the fund shall, upon order of the Controller, be
drawn therefrom for refunds under this part, credits or refunds
pursuant to Section 60202, and refunds pursuant to Section 1793.25 of
the Civil Code, or be transferred in the following manner:
   (a) (1) All revenues, less refunds, derived under this part at the
4 3/4-percent rate, including the imposition of sales and use taxes
with respect to the sale, storage, use, or other consumption of motor
vehicle fuel which would not have been received if the sales and use
tax rate had been 5 percent and if motor vehicle fuel, as defined
for purposes of the Motor Vehicle Fuel License Tax Law (Part 2
(commencing with Section 7301)), had been exempt from sales and use
taxes, shall be estimated by the State Board of Equalization, with
the concurrence of the Department of Finance, and shall be
transferred quarterly to the Public Transportation Account, a trust
fund in the State Transportation Fund, except as modified as follows:
   (A) For the 2001-02 fiscal year, those transfers may not be more
than eighty-one million dollars ($81,000,000) plus one-half of the
amount computed pursuant to this paragraph that exceeds eighty-one
million dollars ($81,000,000).
   (B) For the 2002-03 fiscal year, those transfers may not be more
than thirty-seven million dollars ($37,000,000) plus one-half of the
amount computed pursuant to this paragraph that exceeds thirty-seven
million dollars ($37,000,000).
   (C) For the 2003-04 fiscal year, no transfers shall be made
pursuant to this paragraph, except that if the amount to be otherwise
transferred pursuant to this paragraph is in excess of eighty-seven
million four hundred fifty thousand dollars ($87,450,000), then the
amount of that excess shall be transferred.
   (D) For the 2004-05 fiscal year, no transfers shall be made
pursuant to this paragraph, and of the amount that would otherwise
have been transferred, one hundred forty million dollars
($140,000,000) shall instead be transferred to the Traffic Congestion
Relief Fund as partial repayment of amounts owed by the General Fund
pursuant to Item 2600-011-3007 of the Budget Act of 2002 (Chapter
379 of the Statutes of 2002).
   (E) For the 2005-06 fiscal year, no transfers shall be made
pursuant to this paragraph.
   (F) For the 2006-07 fiscal year, the revenues estimated pursuant
to this paragraph shall, notwithstanding any other provision of this
paragraph or any other provision of law, be transferred and allocated
as follows:
   (i) The first two hundred million dollars ($200,000,000) shall be
transferred to the Transportation Deferred Investment Fund as partial
repayment of the amounts owed by the General Fund to that fund
pursuant to Section 7106.
   (ii) The next one hundred twenty-five million dollars
($125,000,000) shall be transferred to the Bay Area Toll Account for
expenditure pursuant to Section 188.6 of the Streets and Highways
Code.
   (iii) Of the remaining revenues, thirty-three million dollars
($33,000,000) shall be transferred to the Public Transportation
Account to support appropriations from that account in the Budget Act
of 2006.
   (iv) The remaining revenues shall be transferred to the Public
Transportation Account for allocation as follows:
   (I) Twenty percent to the Department of Transportation for
purposes of Section 99315 of the Public Utilities Code.
   (II) Forty percent to the Controller, for allocation pursuant to
Section 99314 of the Public Utilities Code.
   (III) Forty percent to the Controller, for allocation pursuant to
Section 99313 of the Public Utilities Code.
   (G) For the 2007-08 fiscal year, the first one hundred fifty-five
million four hundred ninety-one thousand eight hundred thirty-seven
dollars ($155,491,837) in revenue estimated pursuant to this
paragraph each quarter shall, notwithstanding any other provision of
this paragraph or any other provision of law, be transferred
quarterly to the Mass Transportation Fund. If revenue in any quarter
is less than that amount, the transfer in the subsequent quarter or
quarters shall be increased so that the total transferred for the
fiscal year is six hundred twenty-one million nine hundred
sixty-seven thousand three hundred forty-eight dollars
($621,967,348).
   (H) For the 2008-09 fiscal year and every fiscal year thereafter,
50 percent of the revenue estimated pursuant to this paragraph each
quarter shall, notwithstanding any other provision of this paragraph
or any other provision of law, and except as provided in subparagraph
(I), be transferred to the Mass Transportation Fund. Notwithstanding
this requirement, for the 2008-09 fiscal year, the amount of three
hundred eight million seven hundred thirty-five thousand dollars
($308,735,000) for each of the first three quarters, and the amount
of one hundred fifteen million twenty-nine thousand dollars
($115,029,000) for the fourth quarter, shall be transferred to the
Mass Transportation Fund. If revenue for any quarter is less than the
specified amount, the transfer in the subsequent quarter or quarters
shall be increased so that the total transfer for the fiscal year is
one billion forty-one million two hundred thirty-four thousand
dollars ($1,041,234,000).
   (I) For the 2009-10 to 2012-13 fiscal years, inclusive, all
revenue estimated pursuant to this paragraph shall, notwithstanding
any other provision of this paragraph or any other provision of law,
be transferred quarterly to the Mass Transportation Fund.
   (2) All revenues, less refunds, derived under this part at the 4
3/4-percent rate, resulting from increasing, after December 31, 1989,
the rate of tax imposed pursuant to the Motor Vehicle Fuel License
Tax Law on motor vehicle fuel, as defined for purposes of that law,
shall be transferred quarterly to the Public Transportation Account,
a trust fund in the State Transportation Fund.
   (3) All revenues, less refunds, derived under this part at the 4
3/4-percent rate from the imposition of sales and use taxes on fuel,
as defined for purposes of the Use Fuel Tax Law (Part 3 (commencing
with Section 8601)) and the Diesel Fuel Tax Law (Part 31 (commencing
with Section 60001)), shall be estimated by the State Board of
Equalization, with the concurrence of the Department of Finance, and
shall be transferred quarterly to the Public Transportation Account,
a trust fund in the State Transportation Fund.
   (4) All revenues, less refunds, derived under this part from the
taxes imposed pursuant to Sections 6051.2 and 6201.2 shall be
transferred to the Sales Tax Account of the Local Revenue Fund for
allocation to cities and counties as prescribed by statute.
   (5) All revenues, less refunds, derived from the taxes imposed
pursuant to Section 35 of Article XIII of the California Constitution
shall be transferred to the Public Safety Account in the Local
Public Safety Fund created in Section 30051 of the Government Code
for allocation to counties as prescribed by statute.
   (b) The balance shall be transferred to the General Fund.
   (c) The estimates required by subdivision (a) shall be based on
taxable transactions occurring during a calendar year, and the
transfers required by subdivision (a) shall be made during the fiscal
year that commences during that same calendar year. Transfers
required by paragraphs (1), (2), and (3) of subdivision (a) shall be
estimated by the State Board of Equalization, with the concurrence of
the Department of Finance, and shall be made quarterly.
   (d) Notwithstanding the designation of the Public Transportation
Account as a trust fund pursuant to subdivision (a), the Controller
may use the Public Transportation Account for loans to the General
Fund as provided in Sections 16310 and 16381 of the Government Code.
The loans shall be repaid with interest from the General Fund at the
Pooled Money Investment Account rate.
   (e) The Legislature may amend this section, by statute passed in
each house of the Legislature by rollcall vote entered in the
journal, two-thirds of the membership concurring, if the statute is
consistent with, and furthers the purposes of this section.



7102.1.  Notwithstanding subdivision (b) of Section 7102, the
revenues, less refunds, derived from the tax in Sections 6051.8 and
6201.8 shall be estimated by the State Board of Equalization, with
the concurrence of the Department of Finance, and shall be
transferred quarterly to the Public Transportation Account in the
State Transportation Fund.



7103.1.  (a) All moneys in the Mass Transportation Fund shall be
transferred to the Public Transportation Account on the date that
fund ceases to exist pursuant to the repeal of Section 7103.
   (b) This section shall remain in effect only until January 1,
2011, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2011, deletes or extends
that date.


7104.  (a) The Transportation Investment Fund (hereafter the fund)
is hereby created in the State Treasury. Notwithstanding Section
13340 of the Government Code, the moneys in the fund are continuously
appropriated without regard to fiscal years for disbursement in the
manner and for the purposes set forth in this section.
   (b) All of the following shall occur on a quarterly basis:
   (1) The State Board of Equalization, in consultation with the
Department of Finance, shall estimate the amount that is transferred
to the General Fund under subdivision (b) of Section 7102 that is
attributable to revenue collected for the sale, storage, use, or
other consumption in this state of motor vehicle fuel, as defined in
Section 7326.
   (2) The State Board of Equalization shall inform the Controller,
in writing, of the amount estimated under paragraph (1).
   (3) Commencing with the 2003-04 fiscal year, the Controller shall
transfer the amount estimated under paragraph (1) from the General
Fund to the fund.
   (c) For each quarter during the period commencing on July 1, 2003,
and ending on June 30, 2008, the Controller shall make all of the
following transfers and apportionments from the funds identified for
transfer under paragraph (2) of subdivision (b) in the following
order:
   (1) To the Traffic Congestion Relief Fund created in the State
Treasury by Section 14556.5 of the Government Code, the sum of one
hundred sixty-nine million five hundred thousand dollars
($169,500,000), except that the transfer for the final quarter shall
be ninety-three million four hundred thousand dollars ($93,400,000),
for a total transfer of three billion three hundred thirteen million
nine hundred thousand dollars ($3,313,900,000).
   (2) To the Public Transportation Account, a trust fund in the
State Transportation Fund, 20 percent of the amount remaining after
the transfer required under paragraph (1). Funds transferred under
this paragraph shall be made available as follows:
   (A) To the Department of Transportation, 50 percent for purposes
of subdivision (a) or (b) of Section 99315 of the Public Utilities
Code, subject to appropriation by the Legislature.
   (B) To the Controller, 25 percent for allocation pursuant to
Section 99314 of the Public Utilities Code. Funds allocated under
this subparagraph shall be subject to all of the provisions governing
funds allocated under Section 99314 of the Public Utilities Code.
For the 2007-08 fiscal year, these funds are continuously
appropriated to the Controller for purposes of this subparagraph.
   (C) To the Controller, 25 percent for allocation pursuant to
Section 99313 of the Public Utilities Code. Funds allocated under
this subparagraph shall be subject to all of the provisions governing
funds allocated under Section 99313 of the Public Utilities Code.
For the 2007-08 fiscal year, these funds are continuously
appropriated to the Controller for purposes of this subparagraph.
   (3) To the Department of Transportation for expenditure for
programming for transportation capital improvement projects subject
to all of the provisions governing the State Transportation
Improvement Program, 40 percent of the amount remaining after the
transfer required under paragraph (1), except that in the 2006-07 and
2007-08 fiscal years, the transfer shall be 80 percent of the amount
remaining after the transfer required under paragraph (1).
   (4) To the Controller for apportionment to the counties, including
a city and county, 20 percent of the amount remaining after the
transfer required under paragraph (1), except that in the 2006-07 and
2007-08 fiscal years, no transfer may be made under this paragraph.
Funds transferred under this paragraph shall be allocated in
accordance with the following formulas:
   (A) Seventy-five percent of the funds payable under this paragraph
shall be apportioned among the counties in the proportion that the
number of fee-paid and exempt vehicles that are registered in the
county bears to the number of fee-paid and exempt vehicles registered
in the state.
   (B) Twenty-five percent of the funds payable under this paragraph
shall be apportioned among the counties in the proportion that the
number of miles of maintained county roads in each county bears to
the total number of miles of maintained county roads in the state.
For the purposes of apportioning funds under this subparagraph, any
roads within the boundaries of a city and county that are not state
highways shall be deemed to be county roads.
   (5) To the Controller for apportionment to cities, including a
city and county, 20 percent of the amount remaining after the
transfer required under paragraph (1), except that in the 2006-07 and
2007-08 fiscal years, no transfer may be made under this paragraph.
Funds transferred under this paragraph shall be apportioned among the
cities in the proportion that the total population of the city bears
to the total population of all the cities in the state.
   (d) Funds received under paragraph (4) or (5) of subdivision (c)
shall be deposited as follows in order to avoid the commingling of
those funds with other local funds:
   (1) In the case of a city, into the city account that is
designated for the receipt of state funds allocated for
transportation purposes.
   (2) In the case of a county, into the county road fund.
   (3) In the case of a city and county, into a local account that is
designated for the receipt of state funds allocated for
transportation purposes.
   (e) Funds allocated to a city, county, or city and county under
paragraph (4) or (5) of subdivision (c) shall be used only for street
and highway maintenance, rehabilitation, reconstruction, and storm
damage repair. For purposes of this section, the following terms have
the following meanings:
   (1) "Maintenance" means either or both of the following:
   (A) Patching.
   (B) Overlay and sealing.
   (2) "Reconstruction" includes any overlay, sealing, or widening of
the roadway, if the widening is necessary to bring the roadway width
to the desirable minimum width consistent with the geometric design
criteria of the department for 3R (reconstruction, resurfacing, and
rehabilitation) projects that are not on a freeway, but does not
include widening for the purpose of increasing the traffic capacity
of a street or highway.
   (3) "Storm damage repair" is repair or reconstruction of local
streets and highways and related drainage improvements that have been
damaged due to winter storms and flooding, and construction of
drainage improvements to mitigate future roadway flooding and damage
problems, in those jurisdictions that have been declared disaster
areas by the President of the United States, where the costs of those
repairs are ineligible for emergency funding with Federal Emergency
Relief (ER) funds or Federal Emergency Management Administration
(FEMA) funds.
   (f) (1) Cities and counties shall maintain their existing
commitment of local funds for street and highway maintenance,
rehabilitation, reconstruction, and storm damage repair in order to
remain eligible for the allocation of funds pursuant to paragraph (4)
or (5) of subdivision (c).
   (2) In order to receive any allocation pursuant to paragraph (4)
or (5) of subdivision (c), the city or county shall annually expend
from its general fund for street, road, and highway purposes an
amount not less than the annual average of its expenditures from its
general fund during the 1996-97, 1997-98, and 1998-99 fiscal years,
as reported to the Controller pursuant to Section 2151 of the Streets
and Highways Code. For purposes of this paragraph, in calculating a
city's or county's annual general fund expenditures and its average
general fund expenditures for the 1996-97, 1997-98, and 1998-99
fiscal years, any unrestricted funds that the city or county may
expend at its discretion, including vehicle in-lieu tax revenues and
revenues from fines and forfeitures, expended for street and highway
purposes shall be considered expenditures from the general fund.
One-time allocations that have been expended for street and highway
purposes, but which may not be available on an ongoing basis,
including revenue provided under the Teeter Plan Bond Law of 1994
(Chapter 6.6 (commencing with Section 54773) of Part 1 of Division 2
of Title 5 of the Government Code, may not be considered when
calculating a city's or county's annual general fund expenditures.
   (3) For any city incorporated after July 1, 1996, the Controller
shall calculate an annual average of expenditure for the period
between July 1, 1996, and December 31, 2000, inclusive, that the city
was incorporated.
   (4) For purposes of paragraph (2), the Controller may request
fiscal data from cities and counties in addition to data provided
pursuant to Section 2151, for the 1996-97, 1997-98, and 1998-99
fiscal years. Each city and county shall furnish the data to the
Controller not later than 120 days after receiving the request. The
Controller may withhold payment to cities and counties that do not
comply with the request for information or that provide incomplete
data.
   (5) The Controller may perform audits to ensure compliance with
paragraph (2) when deemed necessary. Any city or county that has not
complied with paragraph (2) shall reimburse the state for the funds
it received during that fiscal year. Any funds withheld or returned
as a result of a failure to comply with paragraph (2) shall be
reallocated to the other counties and cities whose expenditures are
in compliance.
   (6) If a city or county fails to comply with the requirements of
paragraph (2) in a particular fiscal year, the city or county may
expend during that fiscal year and the following fiscal year a total
amount that is not less than the total amount required to be expended
for those fiscal years for purposes of complying with paragraph (2).
   (7) The allocation made under paragraph (4) or (5) of subdivision
(c) shall be expended not later than the end of the fiscal year
following the fiscal year in which the allocation was made, and any
funds not expended within that period shall be returned to the
Controller and shall be reallocated to the other cities and counties
pursuant to the allocation formulas set forth in paragraph (4) or (5)
of subdivision (c).
   (g) The Los Angeles County Metropolitan Transportation Authority
shall give first priority for using its share of the funds made
available under subparagraphs (B) and (C) of paragraph (2) of
subdivision (c) to providing the levels of bus service mandated under
the consent decree entered into by the authority on October 29,
1996, in the case of Labor/Community Strategy Center, et al. v. Los
Angeles County Metropolitan Transportation Authority.
   (h) (1) For the purpose of allocating funds under paragraph (4) or
(5) of subdivision (c) to counties, cities, and a city and county,
the Controller shall use the most recent population estimates
prepared by the Demographic Research Unit of the Department of
Finance. For a city that incorporated after January 1, 1998, that
does not appear on the most recent population estimates prepared by
the Demographic Research Unit, the Controller shall use the
population determined for that city under Section 11005.3 of the
Revenue and Taxation Code.
   (2) The amendments made to Section 11005.3 by the act adding this
paragraph shall not apply to a population determination under
paragraph (1).
   (i) This section shall become inoperative on the date that all
encumbrances incurred for the projects funded under paragraph (3) of
subdivision (c) have been liquidated or on June 30, 2008, whichever
date is later, and as of the January 1 immediately following that
date is repealed.


7104.1.  Notwithstanding any other provision of law, the
requirements imposed on cities and counties by subdivision (f) of
Section 7104 shall not apply for any fiscal year in which the
transfer of revenues from the General Fund to the Transportation
Investment Fund is suspended pursuant to Article XIX B of the
California Constitution and funds consequently are not made available
for allocation to cities or counties pursuant to paragraphs (4) and
(5) of subdivision (c) of Section 7104.



7104.2.  (a) The Transportation Investment Fund (hereafter the fund)
in the State Treasury is hereby continued in existence. All revenues
transferred to the fund pursuant to Article XIX B of the California
Constitution beginning with the 2008-09 fiscal year shall be
available for expenditure as provided in this section.
Notwithstanding Section 13340 of the Government Code or any other
provision of law, moneys in the fund are continuously appropriated
without regard to fiscal years for disbursement in the manner and for
the purposes set forth in this section.
   (b) All of the following shall occur on a quarterly basis:
   (1) The State Board of Equalization, in consultation with the
Department of Finance, shall estimate the amount that is transferred
to the General Fund under subdivision (b) of Section 7102 that is
attributable to revenue collected for the sale, storage, use, or
other consumption in this state of motor vehicle fuel, as defined in
Section 7326.
   (2) The State Board of Equalization shall inform the Controller,
in writing, of the amount estimated under paragraph (1).
   (3) Commencing with the 2008-09 fiscal year, the Controller shall
transfer the amount estimated under paragraph (1) from the General
Fund to the fund.
   (c) For each quarter, commencing with the 2008-09 fiscal year, the
Controller shall make all of the following transfers and
apportionments from the fund:
   (1) To the Public Transportation Account, a trust fund in the
State Transportation Fund, 20 percent of the revenues deposited in
the fund. Funds transferred under this paragraph shall be made
available as follows:
   (A) Twenty-five percent for purposes of Section 99315 of the
Public Utilities Code, subject to appropriation by the Legislature.
   (B) Thirty-seven and one-half percent to the Controller, for
allocation pursuant to Section 99314 of the Public Utilities Code.
Funds allocated under this subparagraph shall be subject to all of
the provisions governing funds allocated under Section 99314 of the
Public Utilities Code. These funds are continuously appropriated to
the Controller for purposes of this subparagraph.
   (C) Thirty-seven and one-half percent to the Controller, for
allocation pursuant to Section 99313 of the Public Utilities Code.
Funds allocated under this subparagraph shall be subject to all of
the provisions governing funds allocated under Section 99313 of the
Public Utilities Code. These funds are continuously appropriated to
the Controller for purposes of this subparagraph.
   (D) Notwithstanding subparagraphs (A), (B), and (C), for the
2009-10 to 2012-13 fiscal years, inclusive, all funds transferred
under this paragraph shall be made available only for purposes of
Section 99315 of the Public Utilities Code, subject to appropriation
by the Legislature.
   (2) To the Department of Transportation for expenditure for
transportation capital improvement projects subject to all of the
rules governing the State Transportation Improvement Program, 40
percent of the revenues deposited in the fund.
   (3) To the Controller for apportionment pursuant to subparagraphs
(A) and (B), 40 percent of the revenues deposited in the fund.
   (A) Of the amount available under this paragraph, 50 percent shall
be apportioned by the Controller to the counties, including a city
and county, in accordance with the following formulas:
   (i) Seventy-five percent of the funds payable under this
subparagraph shall be apportioned among the counties in the
proportion that the number of fee-paid and exempt vehicles that are
registered in the county bears to the number of fee-paid and exempt
vehicles registered in the state.
   (ii) Twenty-five percent of the funds payable under this
subparagraph shall be apportioned among the counties in the
proportion that the number of miles of maintained county roads in
each county bears to the total number of miles of maintained county
roads in the state. For the purposes of apportioning funds under this
subparagraph, any roads within the boundaries of a city and county
that are not state highways shall be deemed to be county roads.
   (B) Of the amount available under this paragraph, 50 percent shall
be apportioned by the Controller to cities, including a city and
county, in the proportion that the total population of the city bears
to the total population of all the cities in the state.
   (d) Funds received under subparagraph (A) or (B) of paragraph (3)
of subdivision (c) shall be deposited as follows in order to avoid
the commingling of those funds with other local funds:
   (1) In the case of a city, into the city account that is
designated for the receipt of state funds allocated for
transportation purposes.
   (2) In the case of a county, into the county road fund.
   (3) In the case of a city and county, into a local account that is
designated for the receipt of state funds allocated for
transportation purposes.
   (e) Funds allocated to a city, county, or city and county under
subparagraph (A) or (B) of paragraph (3) of subdivision (c) shall be
used only for street and highway maintenance, rehabilitation,
reconstruction, and storm damage repair. For purposes of this
section, the following terms have the following meanings:
   (1) "Maintenance" means either or both of the following:
   (A) Patching.
   (B) Overlay and sealing.
   (2) "Reconstruction" includes any overlay, sealing, or widening of
the roadway, if the widening is necessary to bring the roadway width
to the desirable minimum width consistent with the geometric design
criteria of the department for 3R (reconstruction, resurfacing, and
rehabilitation) projects that are not on a freeway, but does not
include widening for the purpose of increasing the traffic capacity
of a street or highway.
   (3) "Storm damage repair" is repair or reconstruction of local
streets and highways and related drainage improvements that have been
damaged due to winter storms and flooding, and construction of
drainage improvements to mitigate future roadway flooding and damage
problems, in those jurisdictions that have been declared disaster
areas by the President of the United States, where the costs of those
repairs are ineligible for emergency funding with Federal Emergency
Relief (ER) funds or Federal Emergency Management Administration
(FEMA) funds.
   (f) (1) Cities and counties shall maintain their existing
commitment of local funds for street and highway maintenance,
rehabilitation, reconstruction, and storm damage repair in order to
remain eligible for the allocation of funds pursuant to subparagraph
(A) or (B) of paragraph (3) of subdivision (c).
   (2) In order to receive any allocation pursuant to subparagraph
(A) or (B) of paragraph (3) of subdivision (c), the city or county
shall annually expend from its general fund for street, road, and
highway purposes an amount not less than the annual average of its
expenditures from its general fund during the 1996-97, 1997-98, and
1998-99 fiscal years, as reported to the Controller pursuant to
Section 2151 of the Streets and Highways Code. For purposes of this
paragraph, in calculating a city's or county's annual general fund
expenditures and its average general fund expenditures for the
1996-97, 1997-98, and 1998-99 fiscal years, any unrestricted funds
that the city or county may expend at its discretion, including
vehicle in-lieu tax revenues and revenues from fines and forfeitures,
expended for street and highway purposes shall be considered
expenditures from the general fund. One-time allocations that have
been expended for street and highway purposes, but which may not be
available on an ongoing basis, including revenue provided under the
Teeter Plan Bond Law of 1994 (Chapter 6.6 (commencing with Section
54773) of Part 1 of Division 2 of Title 5 of the Government Code, may
not be considered when calculating a city's or county's annual
general fund expenditures.
   (3) For any city incorporated after July 1, 1996, the Controller
shall calculate an annual average of expenditure for the period
between July 1, 1996, and December 31, 2000, inclusive, that the city
was incorporated.
   (4) For purposes of paragraph (2), the Controller may request
fiscal data from cities and counties in addition to data provided
pursuant to Section 2151, for the 1996-97, 1997-98, and 1998-99
fiscal years. Each city and county shall furnish the data to the
Controller not later than 120 days after receiving the request. The
Controller may withhold payment to cities and counties that do not
comply with the request for information or that provide incomplete
data.
   (5) The Controller may perform audits to ensure compliance with
paragraph (2) when deemed necessary. Any city or county that has not
complied with paragraph (2) shall reimburse the state for the funds
it received during that fiscal year. Any funds withheld or returned
as a result of a failure to comply with paragraph (2) shall be
reallocated to the other counties and cities whose expenditures are
in compliance.
   (6) If a city or county fails to comply with the requirements of
paragraph (2) in a particular fiscal year, the city or county may
expend during that fiscal year and the following fiscal year a total
amount that is not less than the total amount required to be expended
for those fiscal years for purposes of complying with paragraph (2).
   (7) The allocation made under subparagraph (A) or (B) of paragraph
(3) of subdivision (c) shall be expended not later than the end of
the fiscal year following the fiscal year in which the allocation was
made, and any funds not expended within that period shall be
returned to the Controller and shall be reallocated to the other
cities and counties pursuant to the allocation formulas set forth in
subparagraph (A) or (B) of paragraph (3) of subdivision (c).
   (g) For the purpose of allocating funds under subparagraph (A) or
(B) of paragraph (3) of subdivision (c) to counties, cities, and a
city and county, the Controller shall use the most recent population
estimates prepared by the Demographic Research Unit of the Department
of Finance. For a city that incorporated after January 1, 2008, that
does not appear on the most recent population estimates prepared by
the Demographic Research Unit, the Controller shall use the
population determined for that city under Section 11005.3.
   (h) (1) Notwithstanding any other law, the quarterly
apportionments scheduled to be made in October 2009 and January 2010
pursuant to paragraph (3) of subdivision (c) shall be suspended and
deferred until May 31, 2010.
   (2) For the purpose of meeting the cash obligations associated
with ongoing budgeted costs, a city or county may make use of any
cash balance in its city or county road fund, including that
resulting from the receipt of funds pursuant to the Highway Safety,
Traffic Reduction, Air Quality, and Port Security Bond Act of 2006
(Chapter 12.49 (commencing with Section 8879.20) of Division 1 of
Title 2 of the Government Code (hereafter bond act)) for local street
and road maintenance, during the period of this suspension, without
the use of this cash being reflected as an expenditure of bond act
funds, provided the cash is replaced once this suspension is repaid.
Nothing in this paragraph shall change the fact that expenditures
must be accrued and reflected from the appropriate funding sources
for which the moneys were received and meet all requirements of those
funding sources.



7104.3.  Notwithstanding any other provision of law, the Department
of Finance may adjust the budgeting, accounting, and reporting system
for the Transportation Investment Fund so that unliquidated
encumbrances are not reflected in the fund balance or financial
statement.



7104.4.  All remaining obligations of the Transportation Investment
Fund as of July 1, 2010, that cannot be funded with resources in that
fund shall become obligations of the State Highway Account.



7105.  (a) The Transportation Deferred Investment Fund is hereby
created in the State Treasury. The Transportation Deferred Investment
Fund is to be considered part of the Transportation Investment Fund,
except as specifically required for accounting purposes, in order to
facilitate the repayment and allocation of revenues consistent with
paragraph (1) of subdivision (f) of Section 1 of Article XIX B of the
California Constitution as provided in this section and Section
7106.
   (b) Pursuant to Section 14557 of the Government Code, the transfer
of revenues from the General Fund to the Transportation Investment
Fund that would have otherwise been required under subdivision (a) of
Section 1 of Article XIX B of the California Constitution was
partially suspended for the 2003-04 fiscal year. The amount of the
transfer for the 2003-04 fiscal year was two hundred eighty-nine
million dollars ($289,000,000). According to the State Board of
Equalization calculations, with the concurrence of the Department of
Finance, the amount of the transfer suspended for the 2003-04 fiscal
year was eight hundred sixty-seven million five hundred sixty-eight
thousand dollars ($867,568,000). On or before June 30 of each fiscal
year until June 30, 2016, the Controller shall transfer an amount
from the General Fund to the Transportation Deferred Investment Fund
that is equal to the minimum repayment required by Article XIX B of
the California Constitution. The repayment shall also include
interest calculated at the Pooled Money Investment Account rate
relative to the amounts that would otherwise have been available for
the transportation programs described in paragraphs (2) to (5),
inclusive, of subdivision (c) of Section 7104. The amount to be
repaid by June 30, 2016, from the General Fund to the Transportation
Deferred Investment Fund shall be reduced by the amount of any
payment made to the Transportation Deferred Investment Fund from any
funding source, excluding subdivision (d). The moneys deposited in
the Transportation Deferred Investment Fund pursuant to this
subdivision are continuously appropriated without regard to fiscal
years for disbursement in the manner and for the purposes set forth
in this section.
   (c) The Controller, from the moneys deposited in the
Transportation Deferred Investment Fund pursuant to subdivision (b)
and Article XIX B of the California Constitution, shall make
transfers and apportionments of those funds in the same manner and
amounts that would have been made in the 2003-04 fiscal year from the
Transportation Investment Fund pursuant to Section 7104, as that
section read on January 1, 2003, if the transfer of funds from the
General Fund to the Transportation Investment Fund had not been
partially suspended for the 2003-04 fiscal year pursuant to Section
14557 of the Government Code, except that in the 2007-08 fiscal year
any remaining principle or interest owed to the Public Transportation
Account shall be repaid first before any other transfers are made.
However, in making those transfers and apportionments, the Controller
shall take into account and deduct therefrom any transfers and
apportionments that were made from the Transportation Investment Fund
in the 2003-04 fiscal year from funds made available pursuant to
subdivision (b) of Section 14557 of the Government Code. It is the
intent of the Legislature that, upon completion of the transfer of
funds pursuant to subdivision (b) from the General Fund to the
Transportation Deferred Investment Fund, each of the transportation
programs that was to have been funded during the 2003-04 fiscal year
from the Transportation Investment Fund pursuant to Section 7104 of
this code shall have received the amount of funding that the program
would have received in the absence of the suspension of the transfer
pursuant to Section 14557 of the Government Code.
   (d) The interest that is to be deposited in the Transportation
Deferred Investment Fund pursuant to subdivision (b) shall be
allocated proportionately to each program element in paragraphs (2)
to (5), inclusive, of subdivision (c) of Section 7104, based on the
amount that each program did not receive in the 2003-04 fiscal year
due to suspension of the transfer pursuant to Section 14557 of the
Government Code.
   (e) Four hundred ninety-five million dollars ($495,000,000) is
hereby appropriated from the General Fund to the Transportation
Deferred Investment Fund for the purpose of paying a portion of the
amount required to be paid pursuant to subdivision (b). The
Controller shall make the payment immediately upon enactment of the
statute amending this section in the 2005-06 Regular Session.
Notwithstanding subdivision (c), these funds, shall be distributed as
follows:
   (1) The first one hundred ninety-two million dollars
($192,000,000) and any interest due pursuant to this section shall
remain in the Transportation Deferred Investment Fund to be used for
projects in the State Transportation Improvement Program pursuant to
paragraph (3) of subdivision (c) of Section 7104.
   (2) The next one hundred ninety-two million dollars ($192,000,000)
and any interest due pursuant to this section shall be distributed
to cities and counties, as follows:
   (A) Ninety-six million dollars ($96,000,000) and any interest due
pursuant to this section shall be transferred to cities for the
purposes specified in Section 7104 pursuant to the formula in
paragraph (5) of subdivision (c) of that section.
   (B) Ninety-six million dollars ($96,000,000) and any interest due
pursuant to this section shall be transferred to counties for the
purposes specified in Section 7104 pursuant to the formula in
paragraph (4) of subdivision (c) of that section.
   (3) Ninety-six million dollars ($96,000,000) and any interest due
pursuant to this section shall be transferred to the Public
Transportation Account for allocation pursuant to Section 99312 of
the Public Utilities Code.
   (4) Any funds remaining following the distributions required by
paragraphs (1), (2), and (3) shall be transferred to the Traffic
Congestion Relief Fund, and shall be deemed to be funds received by
that fund in the 2003-04 fiscal year.
   (f) The Legislature finds and declares that continued investment
in transportation is essential for the California economy. That
investment reduces traffic congestion, assists in economic
development, improves the condition of local streets and roads, and
provides high-quality public transportation.
   (g) Notwithstanding any other provision of law, the Department of
Finance may adjust the budgeting, accounting, and reporting system
for the Transportation Deferred Investment Fund so that unliquidated
encumbrances are not reflected in the fund balance or financial
statement.


7106.  (a) Pursuant to Section 14558 of the Government Code, the
transfer of revenues from the General Fund to the Transportation
Investment Fund that would have otherwise been required under
subdivision (a) of Section 1 of Article XIX B of the California
Constitution was suspended for the 2004-05 fiscal year. According to
the State Board of Equalization calculations, with the concurrence of
the Department of Finance, the amount of the transfer suspended for
the 2004-05 fiscal year was one billion two hundred fifty-seven
million nine hundred forty-six thousand dollars ($1,257,946,000). On
or before June 30 of each fiscal year until June 30, 2016, the
Controller shall transfer an amount from the General Fund to the
Transportation Deferred Investment Fund that is equal to the minimum
repayment required by Article XIX B of the California Constitution.
The repayment shall also include interest calculated at the Pooled
Money Investment Account rate relative to the amounts that would
otherwise have been available for the transportation programs
described in paragraphs (2) to (5), inclusive, of subdivision (c) of
Section 7104. The amount to be repaid by June 30, 2016, from the
General Fund to the Transportation Deferred Investment Fund shall be
reduced by the amount of any payment made to the Transportation
Deferred Investment Fund from any funding source.
   (b) The money deposited in the Transportation Deferred Investment
Fund pursuant to this section is continuously appropriated without
regard to fiscal years for disbursement in the manner and for the
purposes set forth in this section.
   (c) The Controller, from the money deposited in the Transportation
Deferred Investment Fund pursuant to subdivision (a) and Article XIX
B of the California Constitution, shall make transfers and
apportionments of those funds in the same manner and amounts that
would have been made in the 2004-05 fiscal year from the
Transportation Investment Fund pursuant to Section 7104, as that
section read on January 1, 2003, if the transfer of funds from the
General Fund to the Transportation Investment Fund had not been
suspended for the 2004-05 fiscal year pursuant to Section 14558 of
the Government Code. It is the intent of the Legislature that upon
completion of the transfer of funds pursuant to subdivision (a) from
the General Fund to the Transportation Deferred Investment Fund that
each of the transportation programs that was to have been funded
during the 2004-05 fiscal year from the Transportation Investment
Fund pursuant to Section 7104 shall have received the amount of
funding that the program would have received in the absence of the
suspension of the transfer pursuant to Section 14558 of the
Government Code.
   (d) The interest that is to be deposited in the Transportation
Deferred Investment Fund pursuant to subdivision (a) shall be
allocated proportionately to each program element in paragraphs (2)
to (5), inclusive, of subdivision (c) of Section 7104, based on the
amount that each program did not receive in the 2004-05 fiscal year
due to suspension of the transfer pursuant to Section 14558 of the
Government Code.
   (e) Seven hundred twenty million dollars ($720,000,000) is hereby
appropriated from the General Fund to the Transportation Deferred
Investment Fund for the purpose of paying a portion of the amount
required to be paid pursuant to subdivision (a). The Controller shall
make the payment immediately upon enactment of the statute amending
this section in the 2005-06 Regular Session. In addition, two hundred
million dollars ($200,000,000) transferred to the Transportation
Deferred Investment Fund pursuant to subparagraph (F) of paragraph
(1) of subdivision (a) of Section 7102 shall also be available for
that purpose. Notwithstanding subdivision (c), these funds, totaling
nine hundred twenty million dollars ($920,000,000), shall be
distributed as follows:
   (1) The first two hundred thirty-two million dollars
($232,000,000) and any interest due pursuant to this section shall
remain in the Transportation Deferred Investment Fund to be used for
projects in the State Transportation Improvement Program pursuant to
paragraph (3) of subdivision (c) of Section 7104.
   (2) The next two hundred thirty-two million dollars ($232,000,000)
and any interest due pursuant to this section shall be distributed
to cities and counties, as follows:
   (A) One hundred sixteen million dollars ($116,000,000) and any
interest due pursuant to this section shall be transferred to cities
for the purposes specified in Section 7104 pursuant to the formula in
paragraph (5) of subdivision (c) of that section.
   (B) One hundred sixteen million dollars ($116,000,000) and any
interest due pursuant to this section shall be transferred to
counties for the purposes specified in Section 7104 pursuant to the
formula in paragraph (4) of subdivision (c) of that section.
   (3) One hundred sixteen million dollars ($116,000,000) and any
interest due pursuant to this section shall be transferred to the
Public Transportation Account for allocation pursuant to Section
99312 of the Public Utilities Code.
   (4) Any funds remaining following the distributions required by
paragraphs (1), (2), and (3) shall be transferred to the Traffic
Congestion Relief Fund, and shall be deemed to be funds received by
that fund in the 2004-05 fiscal year. It is estimated that the amount
to be available under this subparagraph will be three hundred
fifteen million dollars ($315,000,000).


7107.  Pursuant to the requirements of paragraph (1) of subdivision
(b) of Section 1 of Article XIX B of the California Constitution,
moneys in the Transportation Investment Fund derived from the
2005-06, 2006-07, and 2007-08 fiscal year transfers from the General
Fund made pursuant to subdivision (a) and paragraph (1) of
subdivision (b) of Section 1 of Article XIX B of the California
Constitution are hereby continuously appropriated without regard to
fiscal years for disbursement in the manner and for the purposes set
forth in Section 7104 as that section read on March 6, 2002.