Existing law, the Motor Vehicle Fuel Tax Law, imposes a tax upon each gallon of motor vehicle fuel removed from a refinery or terminal rack in this state, entered into this state, or sold in this state, at a specified rate per gallon. Existing unfair competition laws establish a statutory cause of action for unfair competition, including any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising and acts prohibited by false advertisement laws. This bill would suspend the imposition of the tax on motor vehicle fuels for one year. The bill would require that all savings realized based on the suspension of the motor vehicle fuels tax by a person other than an end consumer, as defined, be passed on to the end consumer, and would make the violation of this requirement an unfair business practice, in violation of unfair competition laws, as provided. The bill would require a seller of motor vehicle fuels to provide a receipt to a purchaser that indicates the amount of tax that would have otherwise applied to the transaction. This bill would also direct the Controller to transfer a specified amount from the General Fund to the Motor Vehicle Fuel Account in the Transportation Tax Fund. By transferring General Fund moneys to a continuously appropriated account, this bill would make an appropriation. This bill would declare that it is to take effect immediately as an urgency statute.
(1) Existing law sets forth various provisions on the use of state funds, including by prohibiting the use of a grant of state funds to assist, promote, or deter union organizing. This bill would prohibit a state agency from expending funds for the study, planning, testing, design, implementation, administration, or evaluation of a tax, fee, assessment, or charge based on vehicle miles traveled (vehicle miles purposes) . The bill would require the reversion of funds appropriated from the General Fund to another fund for vehicle miles purposes and would require the deobligation of encumbered but unexpended funds for those purposes. The bill would require the Department of Finance to, within 60 days of January 1, 2027, identify all relevant appropriations and ensure their reversion or transfer. The bill would additionally prohibit any future Budget Act from appropriating funds for vehicle miles purposes unless expressly authorized by statute, as described. (2) Existing law authorizes the legislative body of a city or county to impose various taxes, including occupancy taxes and sales and use taxes. Existing law also prohibits a city and county form imposing certain taxes, such as a tax upon income. This bill would prohibit a city, county, or any political subdivision thereof from imposing a tax, fee, assessment, or charge, that is calculated, in whole or in part, based on the number of miles traveled by a motor vehicle. The bill would not prohibit the collection of tolls for the use of specific facilities, as provided. The bill would provide that any existing program, pilot program, regulation, or administrative action inconsistent with this prohibition is void and unenforceable. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
(1) Existing law requires certain transportation planning agencies to prepare and adopt regional transportation plans directed at achieving a coordinated and balanced regional transportation system. Existing law requires a regional transportation plan to include a policy element, a sustainable communities strategy prepared by a metropolitan planning organization, an action element, and a financial element, as provided. Existing law requires those transportation planning agencies to adopt and submit every 4 years, except as provided, an updated regional transportation plan to the California Transportation Commission and the Department of Transportation. Existing law requires a sustainable communities strategy to achieve regional targets set by the State Air Resources Board for the reduction of greenhouse gas emissions from the automobile and light truck sector in the region for 2020 and 2035, respectively, and requires the state board to update those targets every 8 years, consistent with each metropolitan planning organization's timeframe for updating its regional transportation plan, as specified. Existing law establishes certain procedural requirements for setting and updating those targets and authorizes the state board to revise the targets every 4 years based on changes in specified factors. Existing law, to the extent the sustainable communities strategy is unable to achieve the greenhouse gas emission reduction targets, requires a metropolitan planning organization to prepare an alternative planning strategy to the sustainable communities strategy showing how the targets would be achieved through alternative development patterns, infrastructure, or additional transportation measures or policies. Existing law requires the state board to review each metropolitan planning organization's sustainable communities strategy and alternative planning strategy to determine whether the strategy, if implemented, would achieve the greenhouse gas emission reduction targets. This bill would revise and recast the requirements for a sustainable communities strategy, including, among other things, (A) requiring a sustainable communities strategy every 8 years with a progress report after 4 years instead of requiring a sustainable communities strategy every 4 years, (B) requiring the state board to provide each region with greenhouse gas emission reduction targets for 2035 and 2045, and (C) requiring the state board to hold technical workshops before providing those targets. The bill would also revise the state board's process for reviewing sustainable communities strategies and alternative planning strategies, as specified. Because the bill would expand duties of local agencies, it would impose a state-mandated local program. (2) Existing law requires, commencing January 1, 2020, the San Diego Association of Governments to begin developing an implementation report that tracks the implementation of its most recently adopted sustainable communities strategy, as provided. Existing law requires the Sacramento Area Council of Governments to report on the regional implementation of its most recently adopted sustainable communities strategy, as provided. This bill would repeal those provisions. (3) Existing law requires the Department of Transportation to prepare the California Transportation Plan for submission to the Governor and the Legislature as a long-range planning document that incorporates various elements and is consistent with specified expressions of legislative intent. Existing law requires the plan to identify the statewide integrated multimodal transportation system needed to achieve statewide greenhouse gas emission reduction targets and to attain state and national air quality standards. This bill would also require the plan to, among other things, incorporate performance measures into planning that informs delivery of transportation capital projects to help achieve the goals of the plan. The bill would, commencing with the 3rd update to the plan, revise the information that the department is required to include in the plan to include, among others, relevant performance measures within each district of the department. (4) Existing law requires certain funds appropriated by the Legislature from the Public Transportation Account to be made available for specified purposes, including, among other purposes, for the department's planning activities, mass transportation responsibilities, and assistance in regional transportation planning, as specified. This bill, for any activities within the region of a metropolitan planning organization, would require the department to limit funding to activities that are consistent with an applicable sustainable communities strategy or alternative planning strategy, as specified. (5) Existing law creates the Road Maintenance and Rehabilitation Program to address deferred maintenance on the state highway system and the local street and road system. Existing law provides for the deposit of various moneys for the program into the Road Maintenance and Rehabilitation Account. Existing law requires funds in the account to be allocated for various purposes, including, among others, $25,000,000, upon appropriation by the Legislature, for local planning grants to encourage local and regional planning that furthers state goals, as provided. Existing law requires the department to develop a grant guide for the allocation of these grants. This bill, for areas within a metropolitan planning organization, would require the grant guide to encourage planning that furthers the goals of a sustainable communities strategy or alternative planning strategy. (6) Existing law requires the commission, under a program commonly known as the Trade Corridor Enhancement Program, to allocate certain state and federal funds to infrastructure projects located on or along specified transportation corridors. Existing law establishes the Solutions for Congested Corridors Program and requires the commission to allocate state funds made available to the program to projects designed to achieve a balanced set of transportation, environmental, and community access improvements within highly congested travel corridors throughout the state. Under both programs, existing law requires projects within the boundaries of a metropolitan planning organization to be included in an adopted regional transportation plan that includes a sustainable communities strategy determined by the state board to achieve the region's greenhouse gas emission reduction targets. For purposes of those programs, this bill would instead require, if the metropolitan planning organization has adopted an alternative planning strategy, the projects to meet prescribed requirements, including that the predominant purpose of the project is to implement a specific greenhouse gas emission reduction strategy or addresses an impediment to achieving an applicable greenhouse gas emission reduction target identified in the alternative planning strategy. (7) Existing law requires funding to be available under the Solutions for Congested Corridors Program for projects that make specific performance improvements and are part of a comprehensive corridor plan designed to reduce congestion in highly traveled corridors. Existing law authorizes the department and certain regional transportation planning agencies to nominate projects for funding through the program. This bill would require funding to be available under the program for projects that, among other things, make specific performance improvements and support the implementation of a regional transportation plan. The bill would revise the requirements applicable to a project nomination under the program. The bill would require the commission to allocate program funds to projects that, among other things, are included in an adopted regional transportation plan, as specified. (8) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law, the Motor Vehicle Fuel Tax Law, imposes a tax upon each gallon of motor vehicle fuel removed from a refinery or terminal rack in this state, entered into this state, or sold in this state, at a specified rate per gallon. Existing unfair competition laws establish a statutory cause of action for unfair competition, including any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising and acts prohibited by false advertisement laws. This bill would suspend the imposition of the tax on motor vehicle fuels for one year. The bill would require that all savings realized based on the suspension of the motor vehicle fuels tax by a person other than an end consumer, as defined, be passed on to the end consumer, and would make the violation of this requirement an unfair business practice, in violation of unfair competition laws, as provided. The bill would require a seller of motor vehicle fuels to provide a receipt to a purchaser that indicates the amount of tax that would have otherwise applied to the transaction. This bill would also direct the Controller to transfer a specified amount from the General Fund to the Motor Vehicle Fuel Account in the Transportation Tax Fund. By transferring General Fund moneys to a continuously appropriated account, this bill would make an appropriation. This bill would declare that it is to take effect immediately as an urgency statute.
(1) The Motor Vehicle Fuel Tax Law, administered by the California Department of Tax and Fee Administration, imposes a tax upon each gallon of motor vehicle fuel removed from a refinery or terminal rack in this state, entered into this state, or sold in this state, at a specified rate per gallon. Existing law requires the department to adjust the tax on July 1 each year by a percentage amount equal to the increase in the California Consumer Price Index, as calculated by the Department of Finance. Article XIX of the California Constitution restricts the expenditure of revenues from the Motor Vehicle Fuel Tax Law, Diesel Fuel Tax Law, and other taxes imposed by the state on fuels used in motor vehicles upon public streets and highways to street and highway and certain mass transit purposes. This bill would authorize the Governor to suspend an adjustment to the motor vehicle fuel tax, as described above, scheduled on or after July 1, 2025, upon making a determination that increasing the rate would impose an undue burden on low-income and middle-class families. The bill would require the Governor to notify the Legislature of an intent to suspend the rate adjustment on or before January 10 of that year, and would require the Department of Finance to submit to the Legislature a proposal by January 10 that would maintain the same level of funding for transportation purposes as would have been generated had the scheduled adjustment not been suspended. (2) The California Constitution provides for the establishment of the State Board of Equalization, which, before July 1, 2017, had primary responsibility for most of the state's duties, powers, and responsibilities regarding the administration of taxes and fees. Existing law, on July 1, 2017, transferred to the California Department of Tax and Fee Administration various duties, powers, and responsibilities of the State Board of Equalization, including administration of the Motor Vehicle Fuel Tax Law and the Diesel Fuel Tax Law, as specified. This bill would also change references in these provisions of law from the "State Board of Equalization" to the "California Department of Tax and Fee Administration" or "department," as applicable, to reflect the transfer of the board's duties, powers, and responsibilities to the department. (3) This bill would take effect immediately as a tax levy.
The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include in its regulation of those emissions the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board from the auction or sale of allowances as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund. Existing law continuously appropriates 25% of the annual proceeds of the fund to the High-Speed Rail Authority for certain purposes, as specified. This bill would eliminate the continuous appropriation of 25% of the annual proceeds of the Greenhouse Gas Reduction Fund to the High-Speed Rail Authority on June 30, 2026. The bill, beginning with the 2026–27 fiscal year, and until December 31, 2030, would require 25% of the annual proceeds of the Greenhouse Gas Reduction Fund to be transferred to the Motor Vehicle Fuel Account. Existing law, the Motor Vehicle Fuel Tax Law, imposes a tax upon each gallon of motor vehicle fuel removed from a refinery or terminal rack in this state, entered into this state, or sold in this state, at a specified rate per gallon. Existing law provides that amounts received pursuant to the Motor Vehicle Fuel Tax Law are deposited into the Motor Vehicle Fuel Account in the Transportation Tax Fund. Existing law transfers the portions of those motor vehicle fuel tax revenues attributable to various off-highway uses of motor vehicle fuel to specified funds and transfers the remaining revenues to the Highway Users Tax Account for allocation to various state and local transportation purposes consistent with the expenditure restrictions imposed by Article XIX of the California Constitution on excise tax revenues from fuels used in motor vehicles on the highway. This bill, beginning July 1, 2026, and before January 1, 2031, would reduce the rate of the tax imposed upon each gallon of fuel by a specified percentage based annually on the amount transferred to the Motor Vehicle Fuel Account from the Greenhouse Gas Reduction Fund. By transferring moneys to a continuously appropriated account, this bill would make an appropriation.
The State Aeronautics Act establishes the Aeronautics Account in the State Transportation Fund, and continuously appropriates the moneys in the account for expenditure for airport purposes by the Division of Aeronautics within the Department of Transportation and the California Transportation Commission. Existing sales and use tax laws impose taxes on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, including taxes imposed on the sale, storage, use, or other consumption of jet fuels. Existing law requires revenues from these taxes to be transmitted to the Treasurer and deposited into the Retail Sales Tax Fund. Existing federal law requires that any revenue from sales and use taxes imposed on aviation fuel be used for the operation costs of airports, the local airport system, or other local facilities that are directly and substantially related to the air transportation of passengers or property, except as provided. This bill would require the Controller, on or before September 1 of each year, to transfer an amount calculated to represent the sales and use tax revenues derived with respect to the sale, storage, use, or other consumption of jet fuel, as provided, from the Retail Sales Tax Fund to the account for allocation to airports and aviation-related purposes, as provided. The bill would require all public and private use airports where jet fuel is sold or consumed to report fuel flowage statistics to the Division of Aeronautics, as provided, and would require the division to determine the revenue allocation for each airport that reports fuel flowage statistics. By adding new reporting requirements for county-owned and city-owned airports, the bill would impose a state-mandated local program. From the above-described sales and use tax revenues deposited into the account, this bill would require the division, after deducting its administrative costs, as provided, to allocate 75% of those revenues to public and private use airports based on their reported fuel flowage statistics, as provided, 15% of those revenues for general aviation airports, as provided, 1% to award grants for aviation education, as provided, and 9% for existing grant programs that serve nonhub and small hub airports. From the above-described 75% of revenues deposited into the account, the bill would apportion, until January 1, 2032, $500,000 annually to award grants to rural, nonhub commercial airports and general aviation airports, as provided. By increasing the sources of funding for and expanding the purposes for which money may be used from a continuously appropriated fund, the Aeronautics Account, this bill would make an appropriation. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law, commonly referred to as the Density Bonus Law, requires a city or county to provide a developer that proposes a housing development, as defined, within the city or county with a density bonus, other incentives or concessions, and waivers or reductions of development standards, as specified, if the developer agrees to construct specified units and meets other requirements. Existing law, among other things, requires compliance with certain affordability requirements, including requiring that the applicant agree to ensure, and that the city, county, or city and county ensure, that a for-sale unit that qualified the applicant for the award of the density bonus is either (1) initially sold to and occupied by a person or family of very low, low, or moderate income, as specified, or (2) if the unit is not purchased by an income-qualified person or family within 180 days after the issuance of the certificate of occupancy, the unit is purchased by a qualified nonprofit housing corporation, as provided. This bill would additionally allow the applicant and the city, county, or city and county to comply with the above-described affordability requirements with respect to a for-sale unit by ensuring that the unit is purchased by a nonprofit housing corporation, as specified, for properties to be sold to and occupied by extremely low, very low, or lower income families who participate in a below market interest rate loan program, as described. By adding to the duties of local agencies to implement the Density Bonus Law, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law requires the Chair of the California Transportation Commission to create a Road Usage Charge Technical Advisory Committee in consultation with the Secretary of Transportation to guide the development and evaluation of a pilot program assessing the potential for mileage-based revenue collection as an alternative to the gas tax system. Existing law additionally requires the Transportation Agency, in consultation with the commission, to implement the pilot program, as specified. Existing law repeals these provisions on January 1, 2027. This bill would require the commission, in consultation with the Transportation Agency, to consolidate and prepare research and recommendations related to a road user charge or a mileage-based fee system. The bill would require the commission to submit a report, as specified, on the research and recommendations described above to the appropriate policy and fiscal committees of the Legislature by no later than January 1, 2027. The bill would require the commission to consult with appropriate state agencies and other stakeholders, as specified, in preparing the research and recommendations and report described above.
Existing law vests the Department of Transportation with full possession and control of all state highways. Existing law authorizes the department to do any act necessary, convenient, or proper for the construction, improvement, maintenance, or use of all highways that are under its jurisdiction, possession, or control. This bill would establish the Highway Signage Fund in the State Treasury and would make moneys in the fund available, upon appropriation by the Legislature, to the department for the department's costs in erecting signage for highway designations previously approved by the Legislature that memorialize individuals who have promoted racial and gender equity.
