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Business Taxes Law Guide—Revision 2024
Sales And Use Tax Law
Revenue and Taxation Code
Division 2. Other Taxes
Part 1. Sales and Use Taxes
Chapter 9. Disposition of Proceeds
Section 7105
7105. Transportation Deferred Investment Fund. (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) (1) Notwithstanding any other provision of law, upon order of the Department of Finance all or some of the state agencies collecting revenues for, or spending from, the Transportation Deferred Investment Fund shall adjust budgeting, accounting, and reporting systems and documents so that unliquidated encumbrances, payables, and other accruals are not reflected in the fund balance in the Governor's Budget fund condition display or the fund balance in the financial statements submitted to the Controller for the budgetary-legal basis annual report.
(2) For the purposes of the Governor's Budget the balance of cash advanced from the Transportation Deferred Investment Fund to the Transportation Revolving Account, as jointly determined by the Department of Finance and the state agencies referenced in paragraph (1), shall be deemed as resources and cash available to the Transportation Deferred Investment Fund for budgeting purposes.
(3) This method shall be effective with the 2013-14 Governor's Budget development process and may be applied to the 2011-12 data.
History—Added by Stats. 2003, Ch. 224 (AB 1751), in effect August 11, 2003. Stats. 2004, Ch. 212 (SB 1098), in effect August 11, 2004, added second sentence in subdivision (b); substituted "the money deposited" for "money" after "Controller, from" and added "pursuant to subdivision (b)" after "Investment Fund" in the first sentence, and substituted "the 2003–04 fiscal year" for "fiscal year 2003–04" in the third sentence of subdivision (c); added subdivision (d); relettered former subdivisions (d) and (e) as (e) and (f); and substituted "the 2003–04 fiscal year" for "fiscal year 2003–04" after "not receive in" in subdivision (e). Stats. 2005. Ch. 22 (SB 1108), in effect January 1, 2006, substituted "moneys deposited" for "money" after "subdivision (d). The" in the second sentence of subdivision (b), and added "pursuant to this subdivision" after "Investment Fund" in the third sentence of subdivision (b); substituted "moneys" for "money" after "Controller, from the " in the first sentence of subdivision (c), substituted "the 2003–04 fiscal year" for "fiscal year 2003–04" after "funded during" and substituted "this code" for "the Revenue and Taxation Code" after "Section 7104 of" in the third sentence of subdivision (c); and added "paragraph (1) of" after "subparagraph (a) of" in subdivision (d). Stats. 2006, Ch. 56 (SB 1132), in effect July 7, 2006, substituted "are" for "is" after "to this subdivision" in the second sentence of subdivision (b); added a comma after "Legislature that" and deleted ", that" after "Investment Fund" in the third sentence of subdivision (c); deleted former subdivision (d) which provided, "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."; relettered former subdivision (d) as (e); and added new subdivisions (e) and (g). Stats. 2007, Ch. 173 (SB 79), in effect August 24, 2007, added the second sentence in subdivision (a); added first three sentences, substituted "of each fiscal year until June 30, 2016," for ", 2009" after "or before June 30", and substituted "the minimum repayment required by Article XIX B of the California Constitution. The repayment shall also include" for "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" after "is equal to" in the former first sentence, and substituted "repaid by June 30, 2016," for "transferred" after "the amount to be" in the former second sentence of subdivision (b); added "and Article … Constitution" after "subdivision (b)" and added ", except that … are made" in the first sentence of subdivision (c). Stats. 2013, Ch. 35 (SB 85), in effect June 27, 2013, added paragraph designation "(1)" after "(a)", added "upon order of" after "provision of law", substituted "all or some of the state agencies collecting revenue for, or spending from," for "may adjust, the budgeting, accounting, and reporting system", added "shall adjust … documents" after "Investment Fund", added "payables, and other accruals" after "unliquidated encumbrances,", substituted "in the Governor's … balance in the" for "or" after "fund balance", and added "submitted to the Controller for the budgetary-legal basis annual report" after "financial statements" in subdivision (g), and added paragraphs (2) and (3) therein.