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Business Taxes Law Guide—Revision 2024

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Sales And Use Tax Law

Revenue and Taxation Code

Division 2. Other Taxes
Part 1. Sales and Use Taxes
Chapter 9. Disposition of Proceeds

7101. Retail Sales Tax Fund. All fees, taxes, interest, and penalties, imposed and all amounts of tax required to be paid to the state under this part, and restitution orders or any other amounts otherwise authorized by law to be collected by the board, or any other amounts imposed by a court of competent jurisdiction to be paid to the board 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.

History—Stats. 2003, Ch. 718 (SB 1009), in effect January 1, 2004, added ", except as … 6452.1," after "this part shall", and deleted "State" after "payments to the". Stats. 2011, Ch. 727 (AB 242), in effect January 1, 2012, added ", and restitution… to the board" after "under this part" in the first sentence.

7101.3. Disposition of funds; Fiscal Recovery Fund.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.

History—Added by Stats. 2003, Ch. 13X (AB 7X), in effect August 2, 2003, but operative July 1, 2004.

7102. Disposition of fund. 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 4¾-percent rate, including the imposition of sales and use taxes with respect to the sale, storage, use, or other consumption of motor vehicle fuel that 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, 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).

(2) All revenues, less refunds, derived under this part at the 4¾-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 4¾-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 California Department of Tax and Fee Administration, 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) (A) 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.

(B) Notwithstanding subparagraph (A), if the Director of Finance determines that the California Department of Tax and Fee Administration has allocated more revenue to the Local Revenue Fund for taxable sales that occurred during the period of July 1, 2011, through June 30, 2016, than required by subparagraph (A), the total amount of revenue credited to the Local Revenue Fund for taxable sales that occurred during the period of July 1, 2011, through June 30, 2016, for allocation to cities and counties as prescribed by statute shall be considered to have fulfilled the requirements of subparagraph (A), and an allocation adjustment for this period shall not be made.

(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.

(6) Notwithstanding paragraph (5), if the Director of Finance determines that the California Department of Tax and Fee Administration has allocated more revenue to the Public Safety Account for taxable sales that occurred during the period of July 1, 2011, through June 30, 2016, than required by paragraph (5), the total amount of revenue credited to the Public Safety Account for taxable sales that occurred during the period of July 1, 2011, through June 30, 2016, shall be considered to have fulfilled the requirements of paragraph (5), and an allocation adjustment for this period shall not be made.

(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 California Department of Tax and Fee Administration , 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.

History—Stats. 1971, Ch. 1400 (SB 325), operative July 1, 1972, provided for transfers to the State Transportation Fund according to estimates by the State Board of Equalization. Stats. 1972, Ch. 1406 (SB 90), effective December 26, 1972, repealed and reenacted the section on June 1, 1973, changing the percentage rates to 4¾ and 5 percent and deleting the words, "the Transportation Planning and Research Account in." Stats. 1972, Ch. 1408 (AB 968), effective December 27, 1972, deleted "shall be transferred monthly to the State Transportation Fund." which followed "State Board of Equalization" in (a) and inserted the present language. Stats. 1975, Ch. 1130 (SB 283), in effect January 1, 1976, substituted "1972–73 fiscal year and ending with the first six months of the 1975–76 fiscal year on December 31, 1975. Effective January 1, 1976," for "fiscal year 1972–73" and "calendar" for "fiscal." Stats. 1979, Ch. 161 (SB 620), effective June 28, 1979, in (a), changed "3¾" to "4¾" and "4" to "5", deleted references to past fiscal years, deleted "as soon as practicable after the close of each calendar year" following "shall be made", changed "Research" to "Development" following "Transportation Planning and", added "each calendar quarter" following "shall be transferred", added wording following "State Transportation Fund." Stats. 1981, Ch. 541 (SB 215), in effect September 17, 1982, substituted "been" for "remained at" before "5 percent" in the first sentence of, and deleted the balance of the first paragraph in, and substituted a new second paragraph in, subdivision (a); and added a new subdivision "(c)" and "(d)". Stats. 1985, Ch. 1600 (SB 300), effective October 2, 1985, added "(1)" and substituted "if motor … Finance" for "Section 6357 … Finance", deleted "(1) One hundred … base year" and added "for appropriation … Code" in paragraph (1), added paragraph (2) and deleted former paragraph (2), deleted "and (3)" before "of subdivision" in subdivision (c), and deleted subdivision (d). Stats. 1986, Ch. 41 (SB 367), effective March 31, 1986, amended (b) and (c) to specify that the deficiency in the 1987–88 budget be transferred from the sales and use tax on fuel as defined under the Use Fuel Tax Law. Stats. 1987, Ch. 1280 (AB 2057), effective January 1, 1988, added to first paragraph "and pursuant to Section 1793.25 of the Civil Code" following "refunds under this part", added hyphen after "4¾". Stats. 1989, Ch. 14 (SB1 33), in effect November 7, 1989, added "and" after "Finance" in paragraph (1) of subdivision (a), deleted former paragraph (2) and added paragraph (2) of subdivision (a), added subdivisions (b) and (c), changed previous subdivisions (b) and (c) to (d) and (e), substituted "subdivisions (a) and (b)" for "subdivision (a)" in subdivision (e). Stats. 1990, Ch. 174 (SB 640), in effect June 22, 1990, added a comma after "Finance," substituted "quarterly" for "during each fiscal year", added ", a trust fund" after "Account" and deleted "for appropriation pursuant to Section 99312 of the Public Utilities Code." after "Fund" in paragraph (1) of subdivision (a); renumbered former paragraph (2) as paragraph (3); renumbered former subdivision (b) as paragraph (2); substituted "quarterly" for "during each fiscal year" and substituted ", a trust fund in the State Transportation Fund" for "for appropriation pursuant to Section 99312 of the Public Utilities Code." in paragraph (2) of subdivision (a); substituted "derived under this part at the 4¾-percent rate" for "due to", deleted "at the 4¾-percent rate" after "Section 8601))," added "estimated by … and shall be" before "transferred", substituted "quarterly" for "during each fiscal year", and substituted ", a trust fund in the State Transportation Fund" for "for appropriation pursuant to Section 99312 of the Public Utilities Code" in paragraph (2) of subdivision (a); renumbered former subdivision (c) as paragraph (4); added "for the period … inclusive" after "6201.1" in paragraph (4) of subdivision (a); added paragraphs (5) and (6) to subdivision (a); relettered former subdivision (d) as (b) and (e) as (c); substituted "estimates" for "estimate", "subdivision" for "subdivisions", deleted "and (b)" before "shall be based" twice, substituted a comma for "and" before "(2)", added ", and (3)" after "(2)", substituted "subdivision" for "subdivisions", deleted "and (b)" in the second sentence of subdivision (c); and added subdivision (d). Stats. 1991, Ch. 85 (AB 2181), in effect June 30, 1991, operative July 1, 1991, added paragraph (7) to subdivision (a). Stats. 1993, Ch. 73 (SB 509), in effect June 30, 1993, added paragraphs (8) and (9) to subdivision (a). Stats. 1993, Ch. 866 (AB 1259), in effect January 1, 1994, added paragraph (10) to subdivision (a). Stats. 1994, Ch. 136 (SB 2123), in effect July 5, 1994, added subdivision (d) and relettered former subdivision (d) as (e). Stats. 1997, Ch. 620 (SB 1102), substituted "credits and refunds pursuant to Section 60202, and refunds" for "and" after "under this part" in the first paragraph, and added "and the Diesel Fuel Tax Law (Part 31 (commencing with Section 60001))" after "Section 8601))" in paragraph (3) of subdivision (a). Stats. 2000, Ch. 91 (AB 2928), in effect July 7, 2000, added a comma after "from increasing" in paragraph (2), and deleted former paragraphs (11), (12), and (13), of subdivision (a) which provided, "(11) All revenues, less refunds, derived under this part at the 5-percent rate, resulting from the rate of tax imposed pursuant to the Motor Vehicle Fuel License Tax Law (Part 2 (commencing with Section 7301)) on motor vehicle fuel, less the amount transferred pursuant to paragraph (2) of subdivision (a), shall be transferred quarterly to the Traffic Congestion Relief Fund. (12) All revenue, less refunds, derived under this part at the 5-percent rate, resulting from the rate of federal motor vehicle fuel tax imposed pursuant to Section 4081 of Title 26 of the Internal Revenue Code, shall be transferred quarterly to the Traffic Congestion Relief Fund. (13) All revenue, less refunds, derived under this part at the 5-percent rate, with respect to the sale, storage, use, or other consumption of motor vehicle fuel, as defined for purposes of the Motor Vehicle Fuel License Tax Law (Part 2 (commencing with Section 7301)), other than that transferred pursuant to paragraph (1), (2), (11), or (12) of subdivision (a), shall be transferred quarterly to the Traffic Congestion Relief Fund. In no event shall the transfer to the Traffic Congestion Relief Fund pursuant to paragraph (11), (12), and (13) of subdivision (a) of this section, exceed one hundred twenty-five million dollars ($125,000,000) in any quarter."; added "and" after "(1), (2)," and deleted "(11), (12), and (13)" before "subdivision (a)" in subdivision (c); deleted former subdivision (f) which provided, "The transfers authorized by paragraphs (11), (12), and (13) of subdivision (a) shall be operative for the 2000–01 fiscal year only."; relettered former subdivision (g) as (f) and substituted "become operative on June 30, 2001" for "remain in effect only until June 30, 2001, and as of that date is repealed, unless a later enacted statute that is enacted before June 30, 2001, deletes or extends that date." therein. Stats. 2001, Ch. 113 (AB 438), in effect July 30, 2001, substituted "Public Transportation Account" for "Transportation Planning and Development Account" after "quarterly to the" in paragraphs (1), (2), and (3), and added subparagraph (A) to paragraph (1) in subdivision (a); and substituted "Public Transportation Account" for "Transportation Planning and Development Account" after "designation of the" and after "may use the" in subdivision (d). Stats. 2003, Ch. 224 (AB 1751), in effect August 11, 2003, added subparagraph (C) of paragraph (1) of subdivision (a), substituted "the taxes imposed … by statute" for "a rate of more than 4¾ percent pursuant to Sections 6051.1 and 6201.1 for the period December 1, 1989, to June 5, 1990, inclusive, shall be transferred to the Disaster Relief Fund created by Section 16419 of the Government Code" after "this part from" in subparagraph (4) of subdivision (a); deleted former paragraphs (5) through (10) which provided for the disposition of funds pursuant to 6051.1, 6201.1, 6051.2, 6201.2, 6051.6, 6201.6 and the increase in the revenues attributable to the increase in the rate of federal motor vehicle fuel tax between January 1, 1993 and the rate in effect on January 1, 1994; and deleted former subdivision (f) which read, "This section shall become operative on June 30, 2001.". Stats. 2004, Ch. 212 (SB 1098), in effect August 11, 2004, added subparagraph (D) to paragraph (1) of subdivision (a). Stats. 2005, Ch. 76 (SB 62), in effect July 19, 2005, added subparagraphs (E) and (F) to paragraph (1) of subdivision (a). Stats. 2006, Ch. 56 (SB 1132), in effect July 7, 2006, substituted ", except as modified as follows:" for a period after "Transportation Fund" in paragraph (1) of subdivision (a), substituted "the revenues estimated … and allocated as follows:" for "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" in, and added subparagraphs (i), (ii), (iii), and (iv) to, subparagraph (F) of paragraph (1) of subdivision (a). Stats. 2007, Ch. 173 (SB 79) in effect August 24, 2007, added subparagraphs (G) and (H) to paragraph (1) of subdivision (a). Stats. 2008, Ch. 756 (AB 268), in effect September 30, 2008, added last two sentences in subparagraph (H) of paragraph (1) of subdivision (a). Stats. 2009, Ch. 10 of the Fourth Extraordinary Session (AB4 10), in effect July 28, 2009, substituted "three hundred … ($1,041,234,000)" for "two hundred thirty-four million eight hundred fifty-two thousand dollars ($234,852,000) each quarter shall be transferred to the Mass Transportation Fund. If revenue for any quarter is less than that amount, the transfer in the subsequent quarter or quarters shall be increased so that the total transfer for the fiscal year is nine hundred thirty-nine million four hundred eight thousand dollars ($939,408,000)" after "the amount of" in subparagraph (H) of paragraph (1) of subdivision (a). Stats. 2017, Ch. 25 (SB 90), in effect June 27, 2017, renumbered former subdivision (a)(4) as (a)(4)(A), and added paragraph. (B) of subdivision (a)(4), and added paragraph (6) of subdivision (a). Stats. 2018, Ch. 92 (SB 1289), in effect January 1, 2019, substituted "that" for "which" after "consumption of motor vehicle fuel" in paragraph (1), substituted "an" for "no" after "subparagraph (A), and", added "not" after "period shall" in paragraph (4)(B), and substituted "an" for "no" after "of paragraph (5), and" and added "not" after "period shall" in paragraph (6), of subdivision (a); and substituted "California Department of Tax and Fee Administration" for "State Board of Equalization" throughout.

7102.1. Public Transportation Account. (a) On and after April 1, 2023, and before April 1, 2024, the California Department of Tax and Fee Administration, with the concurrence of the Department of Finance, shall, on a quarterly basis, estimate the revenues, less refunds, that, if not for Section 6357.4, would have been derived under this part at the 4¾ -percent rate, excluding the portion of the 4¾ -percent rate that is deposited in the State Treasury and credited to the Local Revenue Fund 2011 pursuant to Section 6051.15 or 6201.15, from the imposition of sales and use taxes on fuel, as defined for purposes of the Diesel Fuel Tax Law (Part 31 (commencing with Section 60001)).

(b) The Controller shall, on a quarterly basis, transfer the estimated amount from the Retail Sales Tax Fund to the Public Transportation Account, a trust fund in the State Transportation Fund.

(c) The quarterly estimates required by subdivision (a) shall be based on taxable transactions from October 1, 2022, to September 30, 2023, inclusive.

History—Added by Stats. 2022, Ch. 55 (AB 194).

7103. Mass Transportation Fund. [Added by Stats. 2007, Ch. 173 (SB 79) and repealed by Stats. 2007, Ch. 313 (AB 193), in effect October 8, 2007.]

7103. Mass Transportation Fund. [Repealed by Stats. 2010, Ch. 12, Eighth Extraordinary Session (AB8 9), in effect March 22, 2010.]

Historic Venue Restoration and Resiliency Fund. (a) For purposes of this section:

(1) "City" means a city within the geographic boundaries of a county.

(2) "Confirmed historic venue" means a historic venue that has received a confirmation by the department pursuant to subdivision (g).

(3) "County" means the County of Alameda, the County of Santa Clara, and the County of Los Angeles.

(4) "Fund" means the Historic Venue Restoration and Resiliency Fund created pursuant to subdivision (c).

(5) "Historic venue" means a venue in the state that meets all of the following criteria:

(A) The venue meets any of the following criteria:

(i) The venue contains a structure built before 1940.

(ii) The venue contains a structure officially designated by the United States National Park Service or the United States Department of the Interior as a National Historic Landmark.

(iii) The venue is located at a site continuously used for live, ticketed events for more than 50 years.

(B) The venue has total fixed seating capacity of at least 15,000 people.

(C) The venue hosts live entertainment or sporting events.

(D) The venue is owned by a public entity.

(6) "Qualified event" means a live event at a confirmed historic venue to which tickets are offered for public sale.

(b) Notwithstanding any other law, a return filed with the department to report gross receipts for sales tax purposes shall segregate the taxable sales on a line or a separate form, as prescribed by the department, if the place of sale in this state is on or within the real property of a confirmed historic venue on the day of a qualified event.

(c) (1) The Historic Venue Restoration and Resiliency Fund is hereby created in the State Treasury.

(2) Notwithstanding Section 13340 of the Government Code, moneys in the fund shall be continuously appropriated without regard to fiscal year and transmitted pursuant to subdivision (f).

(d) (1) The department shall report the amount of the total gross receipts segregated on the returns filed for the prior fiscal year pursuant to subdivision (b) to the Department of Finance on or before November 1 of each year.

(2) (A) The total gross receipts reported pursuant to paragraph (1) shall be subject to review, which may be a review of a sample of returns, by the department for errors.

(B) The department shall note any errors identified in the review and the approximate impact of those errors on the total gross receipts in the report to the Department of Finance required by this subdivision to allow an adjusted total gross receipt amount to be determined.

(e) (1) An amount equal to 5 percent of the total amount of gross receipts, or adjusted gross receipts, for the prior fiscal year reported to the Department of Finance by the department pursuant to subdivision (d) shall be included in the next annual Governor’s Budget for deposit into the fund for the Controller to transmit to cities and counties pursuant to subdivision (f).

(2) No later than 30 days after the enactment of the annual Budget Act, the amount appropriated by the Legislature to the Controller pursuant to this subdivision shall be transferred by the Controller to the fund.

(f) (1) Beginning January 1, 2025, the Controller shall transmit, as promptly as feasible, the moneys in the fund to each city or county in an amount that is proportional to the gross receipts subject to subdivision (b) derived from qualified events at confirmed historic venues identified by that city or county.

(2) (A) A city or county shall distribute funds received pursuant to this subdivision only for any of the following purposes and pursuant to subparagraph (B):

(i) Capital infrastructure improvements and preservation of a confirmed historic venue.

(ii) Preventive maintenance of a confirmed historic venue related to patrons safety.

(iii) Technological improvements at a confirmed historic venue.

(iv) Security enhancements at a confirmed historic venue.

(v) Bringing a confirmed historic venue into compliance with the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.).

(vi) Energy efficiency improvements at a confirmed historic venue.

(vii) Upgrades related to implementation of federal and state policies at a confirmed historic venue.

(B) A city or county shall distribute funds to a confirmed historic venue in an amount commensurate with the amount of gross receipts derived from the sale of tangible personal property during qualified events at the confirmed historic venue.

(g) (1) (A) A city or county shall identify a historic venue within its jurisdiction to the department, in a form and manner prescribed by the department, for a confirmation as a historic venue.

(B) (i) Subject to clause (ii), if the venue identified pursuant to subparagraph (A) is a historic venue, the department shall issue a confirmation to the city or county as promptly as feasible.

(ii) The department shall not issue a confirmation pursuant to clause (i) if a city or county is currently receiving revenue transmitted pursuant to subdivision (f) with respect to the historic venue.

(2) A city or county that receives a confirmation from the department pursuant to paragraph (1) shall notify, within 90 days of any qualified event at the confirmed historic venue, any retailers subject to subdivision (b) making sales at the confirmed historic venue.

(h) On or before January 1, 2027, and annually thereafter, a city or county that receives money from the fund shall deliver a report to the department regarding how that money is being used.

(i) The department shall annually deliver a report to the Assembly Committee on Revenue and Taxation and the Senate Committee on Governance and Finance concerning both of the following:

(1) The identity of any confirmed historic venue and the city or county that identified that venue pursuant to subdivision (g).

(2) The amount of revenue transmitted in the preceding year pursuant to this section to a city or county with respect to each confirmed historic venue.

(j) This section shall remain operative only until July 1, 2030, and as of that date is repealed.

History—History—Added by Stats. 2023, Ch. 595 (SB 96), in effect January 1, 2024.

7103.1. Transfers to Public Transportation Account. (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.

History—Added by Stats. 2010, Ch. 12, Eighth Extraordinary Session (AB8 9), in effect March 22, 2010.

7104. Transportation Investment Fund. (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 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 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 paragraphs (4) and (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 this section 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) (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.

History—Added by Stats. 2000, Ch. 91 (AB 2928), in effect July 7, 2000. Stats. 2000, Ch. 656 (SB 1662), in effect September 26, 2000, added second sentence in subdivision (a); added "and apportionments" after "following transfers" and "identified … subdivision (b)" after "from the funds" in subdivision (c); substituted "Traffic" for "Transportation" before "Congestion Relief" in paragraph (1), added "expenditure for" after "of Transportation for" in paragraph (3), added "Controller for apportionment to the" after "To the" in paragraph (4), and added "the Controller for apportionment to the" before "cities, including" in paragraph (5) of subdivision (c); added ", where the … (FEMA) funds" in paragraph (3) of subdivision (e); added "any city … incorporated" after "(3) For", and created new paragraph (4) with the former first sentence of paragraph (3), and substituted "(2)" for "(1)" after "of paragraph" and deleted "At the conclusion of each fiscal year during which a city or county receives funding under paragraph (4) or (5) of subdivision (c), the Controller shall verify the city's or county's" therein; created new paragraph (5), and added "The Controller may perform audits to ensure" before "compliance with paragraph", substituted "(2) when deemed necessary" for "(1)" after "compliance with paragraph", and substituted "(2)" for "(1)" after "comply with paragraph" therein; renumbered former paragraph (5) as (6), and substituted "(2)" for "(1)" after "paragraph" twice therein; renumbered paragraph (6) as (7) in subdivision (f); added subdivision (h); created new subdivision (i) with former last sentence of statute, and substituted "the date that … following that date" for "June 30, 2006, and, as of January 1, 2007, is repealed, unless a later enacted statute that is enacted before January 1, 2007, deletes or extends the dates on which it becomes inoperative and" after "become inoperative on" therein. Stats. 2001, Ch. 113 (AB 438), in effect July 30, 2001, substituted "Commencing with the 2003–04 fiscal year, the" for "The" before "Controller shall transfer" in paragraph (3) of subdivision (b); added "except that … ($93,400,000)" after "($169,500,000)", and substituted "thirteen million … ($3,313,900,000)" for "ninety million dollars($3,390,000,000)" in paragraph (1), added "except that … paragraph (1)" after "under paragraph (1)," in paragraph (3), added "except that … shall be allocated" after "under paragraph (1)," in paragraph (4), and added "except that … this paragraph" in paragraph (5) of subdivision (c); substituted "paragraph (4) or (5) of subdivision (c)" for "this section" after "funds under" in subdivision (h); and substituted "2008" for "2006" after "on June 30," in subdivision (i). Stats. 2006, Ch. 556 (AB 1602), in effect January 1, 2007, added paragraph designation "(1)" after "(h)" in, and added paragraph (2) to, subdivision (h). Stats. 2008, Ch. 756 (AB 268), in effect September 30, 2008, substituted "made available" for "appropriated by the Legislature" after "paragraph shall be" in paragraph (2) of, added ",subject to appropriation by the Legislature" after "Public Utilities Code" in subparagraph (A) of paragraph (2) of, and added last sentence in subparagraphs (B) and (C) of paragraph (2) of, subdivision (c). Stats. 2010, Ch. 328 (SB 1330), in effect January 1, 2011, substituted "the moneys in the fund are" for "the money in the fund is" after "Government Code, the" in subdivision (a), and substituted "7326" for "7304" after "defined in Section" in paragraph (1) of subdivision (b). Stats. 2011, Ch. 296 (AB 1023), in effect January 1, 2012, added a closed parenthesis after "the Government Code" in the third sentence of paragraph (2) of subdivision (f).

7104.1. Exclusion; suspension of Transportation Investment Fund. 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.

History—Added by Stats. 2003, Ch. 716 (SB 460), in effect January 1, 2004.

7104.2. Transportation Investment Fund; continuance. (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 to the Department of Transportation for purposes of subdivision (a) and (b) 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.

(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, 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.

(i) Notwithstanding any other provision of law, the Controller may use the funds in the Transportation Investment Fund for cashflow loans to the General Fund as provided in Sections 16310 and 16381 of the Government Code. Any such loan shall be exempt from paragraph (2) of subdivision (b) of Section 16310 of the Government Code. Interest shall be paid on all moneys loaned to the General Fund and shall be computed at a rate determined by the Pooled Money Investment Board to be the current earning rate of the fund from which the money is loaned. This subdivision does not authorize any transfer that would interfere with the carrying out of the object for which these funds were created.

History—Added by Stats. 2007, Ch. 733 (SB 717), in effect January 1, 2008. Stats. 2008, Ch. 756 (AB 268), in effect September 30, 2008, substituted "made available" for "allocated" after "paragraph shall be" in paragraph (1) of, added ", subject to appropriation by the Legislature" after "Public Utilities Code" in subparagraph (A) of paragraph (1) of, and added last sentence in subparagraphs (B) and (C) of paragraph (1) of subdivision (c). Stats. 2009, Ch. 23XXXX (SB 16XXXX), in effect July 28, 2009, added subdivision (h). Stats. 2010, Ch. 328 (SB 1330), in effect January 1, 2011, substituted "7326" for "7304" after "defined in Section" in paragraph (1) of subdivision (b), and substituted "subparagraphs" for "paragraphs" after "apportionment pursuant to" in paragraph (3) of subdivision (c). Stats. 2012, Ch. 1 (SB 95) in effect February 3, 2012, added subdivision (i).

7104.3. Adjustments for unliquidated encumbrances; Transportation Investment Fund. [Repealed, effective June 27, 2013 pursuant to Stats. 2013, Ch. 35 (SB 85).]

7104.3. Transportation Investment Fund Adjustments: state agencies. (a) Notwithstanding any other provision of law, upon order of the Department of Finance, all or some of the state agencies collecting revenue for, or spending from, the Transportation 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.

(b) For the purposes of the Governor's Budget, the balance of cash advanced from the Transportation Investment Fund to the Transportation Revolving Account, as jointly determined by the Department of Finance and the state agencies referenced in subdivision (a), shall be deemed as resources and cash available to the Transportation Investment Fund for budgeting purposes.

(c) 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. 2013, Ch. 35 (SB 85), in effect June 27, 2013.

7104.4. Remaining obligations: Transportation Investment Fund. [Repealed by Stats. 2015, Ch. 12 (AB 95), in effect June 24, 2015].

7104.4. State Highway Account. (a) The State Highway Account in the State Transportation Fund is the successor account to the Transportation Investment Fund.

(b) All assets and liabilities of the Transportation Investment Fund shall become assets and liabilities of the State Highway Account on or before June 30, 2016.

History—Added by Stats. 2015, Ch. 12 (AB 95), in effect June 24, 2015.

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.

7105.1. Transportation Deferred Investment Fund; successor. (a) The State Highway Account in the State Transportation Fund is the successor account to the Transportation Deferred Investment Fund.

(b) All assets and liabilities of the Transportation Deferred Investment Fund shall become assets and liabilities of the State Highway Account on or before January 1, 2020.

History—Added by Stats. 2019, Ch. 32 (SB 87), effective June 27, 2019.

7106. Transfers to and from the Transportation Deferred Investment Fund. (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 XIXB 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).

History—Added by Stats. 2004, Ch. 212 (SB 1098), in effect August 11, 2004. Stats. 2006, Ch. 56 (SB 1132), in effect July 7, 2006, substituted "section" for "subdivision" in subdivision (b); deleted "of the Revenue and Taxation Code" after "Section 7104" in the second sentence of subdivision (c); and added subdivision (e). Stats. 2007, Ch. 173 (SB 79), in effect August 24, 2007, added the first two sentences, substituted "of each fiscal year until June 30, 2016" for ", 2008", substituted "the minimum … include" for "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" after "is equal to" in the former first sentence, and substituted "repaid by June 30, 2016," for "transferred" after "amount to be" in the former second sentence of subdivision (a); and added "and Article … Constitution," after "subdivision (a) in subdivision (c).

7107. Transportation Investment Fund; transfers from General Fund.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.

History—Added by Stats. 2005, Ch. 76 (SB 62), in effect July 19, 2005.