2005 California Revenue and Taxation Code Sections 7101-7107 CHAPTER 9. DISPOSITION OF PROCEEDS

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
43/4-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.
   (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, 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 two hundred
million dollars ($200,000,000), then the amount of that excess shall
be transferred.
   (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.
7104.  (a) The Transportation Investment Fund (hereafter the fund)
is hereby created in the State Treasury.  Notwithstanding Section
13340 of the Government Code, the money in the fund is 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 7304.
   (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 appropriated by the Legislature 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.
   (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.
   (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.
   (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, 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) 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.
   (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 XIXB 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.
7105.  (a) The Transportation Deferred Investment Fund is hereby
created in the State Treasury.
   (b) On or before June 30, 2009, the Controller shall transfer an
amount from the General Fund to the Transportation Deferred
Investment Fund that is equal to the amount that was not transferred
from the General Fund to the Transportation Investment Fund for the
2003-04 fiscal year because of the partial suspension of the transfer
pursuant to Section 14557 of the Government Code, plus 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
transferred 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
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 moneys deposited in the
Transportation Deferred Investment Fund pursuant to subdivision (b),
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. 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) To the extent that funds are provided under clauses (iii) and
(v) of subparagraph (A) of paragraph (1) of subdivision (c) of
Section 63048.65 of the Government Code to the Traffic Congestion
Relief Fund for apportionment pursuant to subparagraphs (B) and (C)
of paragraph (2) of subdivision (c) of Section 7104, paragraph (4) of
subdivision (c) of Section 7104, and paragraph (5) of subdivision
(c) of Section 7104, the Controller shall deduct an equal amount from
any transfer of funds from the Transportation Deferred Investment
Fund made for those apportionments and transfer that amount instead
to the Traffic Congestion Relief Fund.
   (e) 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.
   (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.
7106.  (a) On or before June 30, 2008, the Controller shall transfer
an amount from the General Fund to the Transportation Deferred
Investment Fund that is equal to the amount that was not transferred
from the General Fund to the Transportation Investment Fund for the
2004-05 fiscal year because of the suspension of the transfer
pursuant to Section 14558 of the Government Code, plus 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
transferred 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 subdivision 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), 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 of the Revenue and Taxation 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 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.
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.