Proposition 1A			00.00 10/05
	Full Extract
	Submitted as: "Transportation Investment Fund"
	Type:  Amendment to the State Constitution
	Subject:  Change to Distribution of State Collected Transportation Tax and to the Rules for Distribution Suspension and Repayment
	Submitter(s):  Torlakson, California Legislature, SCA 7
		Senate Vote: 38 Yes, 0 No (of 40)
		Assembly Vote: 58 Yes, 11 No (of 80)
	Supporting Organization:
		Name:	The Rebuild California Plan 1127 11th Street, Suite 950 Sacramento, CA 95814
		Email:
		Web Site: www.plan4ourfuture.org
		Phone:  - 916.443.5900
	Opposing Organization:
		Name:
		Email:
		Web Site:
		Phone:
	Amends Section 1 of Article XIX B, to say the following:
	Sec. (1) (a) Unchanged [Starting with fiscal year 2003-2004, all gas taxes collected and deposited in the General Fund were to be transferred to the Transportation Investment Fund (TIF), created by Prop 42 in 2002.
	Sec. (1) (b) (1) Unchanged [For the fiscal years 2003-94 to 2007-08, the money collected was to be allocated per Section 7104 of the Revenue and Taxation code. []
	Sec. (1) (b) (2) Unchanged [For the fiscal years starting 2008, the money collected may be spent only upon the following:
		(A) Public Transit and Mass Transportation
		(B) Transportation Capital Improvement Projects
		(C) Street and Highway maintenance by cities
		(D) Street and Highway maintenance by counties.
	Sec. (1) (c) Unchanged [Percentwise, for the fiscal years starting 2008,these expenditures are to be as follows:
		(A) Public Transit and Mass Transportation - 20%
		(B) Transportation Capital Improvement Projects - 40%
		(C) Street and Highway maintenance by cities - 20%
		(D) Street and Highway maintenance by counties - 20%.
	Sec. (1) (d) (1) Except as prevented by paragraph 2, the transfer of gas taxes from the General Fund to the TIF may be suspended, in whole or in part, for a fiscal year if A, B and C are true:
		(A) The Governor proclaims a "severe state fiscal hardship", which requires suspension of the transfer.
		(B) The Legislature by 2/3 vote suspends the transfer.
		(C) The Legislature by law provides for full repayment, with interest, by the end of the third fiscal year following.
	Sec. (1) (d) (2) The power to suspend the transfer of money is limited in two ways:
		(A) The suspension may not be done more than twice in any 10 consecutive fiscal years
		(B) No second suspension is allowed if the money owed for a first one has not been repaid.
	Sec. (1) (e) The percentages specified in (c) may be modified by 2/3 vote of each house of the Legislature.
	Sec. (1) (f) (1) Per prior initiatives, the state is obliged to repay Transportation taxes that were previously borrowed.  This obligation continues in force, except the repayment is to be made to the TIF and no later than June 30, 2016.  No less than 1/10 of the entire amount due to be repaid must be paid each year.
	Sec. (1) (f) (2) The Legislature may issue bonds backed by the transfer payments of (1).  Proceeds from the sale of bonds must be used only for the purposes of this section and must be allocated as listed in (b) (2).
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