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SB-789 Sale of water by local public entities: excise tax.(2015-2016)

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SB789:v97#DOCUMENT

Amended  IN  Assembly  June 08, 2015
Amended  IN  Senate  May 11, 2015

CALIFORNIA LEGISLATURE— 2015–2016 REGULAR SESSION

Senate Bill No. 789


Introduced by Senator Wieckowski

February 27, 2015


An act to amend, repeal, and add Section 16072 of the Vehicle Code, relating to driver’s licenses. An act to add Chapter 3.1 (commencing with Section 7287.20) to Part 1.7 of Division 2 of the Revenue and Taxation Code, relating to water.


LEGISLATIVE COUNSEL'S DIGEST


SB 789, as amended, Wieckowski. Driver’s license suspension: restricted privilege. Sale of water by local public entities: excise tax.
The California Constitution prohibits the Legislature from imposing taxes for local purposes, but allows the Legislature to authorize local governments to impose them.
This bill would authorize a local public entity that supplies water at retail or wholesale for the benefit of persons within the service area or area of jurisdiction of that public entity to impose, by ordinance, an excise tax on an excessive user of water, at a rate not to exceed 300% of the purchase price of the water, if the ordinance proposing the tax is approved by 2/3 of the electors voting on the measure and the revenue from the tax is equally distributed between the public entity and the State Water Resources Control Board for water conservation efforts within the jurisdiction of the public entity.

Existing law requires the Department of Motor Vehicles to suspend the driving privilege of a person who is involved in an accident and fails to provide evidence of financial responsibility, as specified, at the time of the accident. Under existing law, the suspension period is one year, as specified, except that the suspension must be reinstated if the person fails to maintain proof of financial responsibility for 3 years. However, upon application and if certain criteria are met, the department may restrict the person’s driving privilege, in lieu of suspending it pursuant to this provision, in specified situations.

This bill would, commencing July 1, 2016, also authorize the department to restrict a person’s driving privilege, in lieu of suspending it, in order to allow the person to drive to school. For purposes of this authorization, the bill would define “school” to mean a California community college campus, a California State University campus, a University of California campus, or a private postsecondary educational institution.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Chapter 3.1 (commencing with Section 7287.20) is added to Part 1.7 of Division 2 of the Revenue and Taxation Code, to read:
CHAPTER  3.1. Excise Water Tax

7287.20.
 (a) A local public entity that supplies water at retail or wholesale for the benefit of persons within the service area or area of jurisdiction of that public entity may impose, by ordinance, an excise tax on an excessive user of water, at a rate not to exceed 300 percent of the purchase price of the water, if both of the following conditions are met:
(1) The ordinance proposing that tax is approved by two-thirds of the electors voting on the measure pursuant to Article XIII C of the California Constitution.
(2) The revenue from the tax is equally distributed between the public entity and the State Water Resources Control Board for local water conservation efforts within the jurisdiction of that public entity. The local water conservation efforts may have cobenefits with other regions in the state.
(b) A tax imposed pursuant to this section may be in addition to any other tax authorized by this division.

SECTION 1.Section 16072 of the Vehicle Code is amended to read:
16072.

(a)The suspension of the driving privilege of a person as provided in Section 16070 shall not be terminated until one year has elapsed from the date of actual commencement of the suspension and until the person files proof of financial responsibility as provided in Chapter 3 (commencing with Section 16430), except that the suspension shall be reinstated if the person fails to maintain proof of financial responsibility for three years. However, in lieu of suspending a person’s driving privilege pursuant to this section, the department, upon application, if the person files and thereafter maintains proof of financial responsibility as provided in this section and pays a penalty fee to the department of two hundred fifty dollars ($250), may restrict the person’s driving privilege to any of the following situations:

(1)Necessary travel to and from that person’s place of employment.

(2)Driving that is required in the person’s course of employment, when driving a motor vehicle is necessary in order to perform the duties of the person’s primary employment.

(3)Necessary travel to transport a minor dependent in that person’s immediate family to and from an institute of primary or secondary instruction, if the chief administrative officer or principal of the educational institution certifies in writing to the department that the minor dependent is enrolled in the educational institution and no form of public transportation or schoolbus is available between the applicant’s place of residence and the educational institution.

The restriction shall remain in effect for the period of suspension required by this section, so long as proof of financial responsibility is maintained.

(b)If a suspension has been imposed under Section 16070 and one year has elapsed from the date the suspension actually commenced, that suspension shall be terminated if the driving privilege is suspended under Section 16370 or 16381 as the result of a judgment arising out of the accident for which proof of financial responsibility was required to be established. The department may reimpose the suspension of the driving privilege of a person under Section 16070 if the suspension under Section 16370 or 16381 is later set aside for a reason other than that the person has satisfied the judgment in full or to the extent provided in Chapter 2 (commencing with Section 16250) and has given proof of ability to respond in damages as provided in Chapter 3 (commencing with Section 16430).

(c)Notwithstanding Chapter 2 (commencing with Section 42200) of Division 18, all revenues derived from the penalty fees provided in subdivision (a) shall, after deduction by the department of the costs incurred by the department in administering this section, be deposited in the Financial Responsibility Penalty Account in the General Fund. The balance in this fund on each July 1, which is not subject to appropriation as provided in Section 12980 of the Insurance Code, shall revert to the General Fund.

(d)(1)Subdivision (a) does not apply to a commercial driver’s license holder.

(2)A commercial driver’s licenseholder whose driving privilege is otherwise suspended under this chapter is not entitled to a restricted license, unless that person surrenders his or her commercial driver’s license and is issued a noncommercial class C or M driver’s license.

(e)This section shall become inoperative on July 1, 2016, and, as of January 1, 2017, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2017, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 2.Section 16072 is added to the Vehicle Code, to read:
16072.

(a)The suspension of the driving privilege of a person as provided in Section 16070 shall not be terminated until one year has elapsed from the date of actual commencement of the suspension and until the person files proof of financial responsibility as provided in Chapter 3 (commencing with Section 16430), except that the suspension shall be reinstated if the person fails to maintain proof of financial responsibility for three years. However, in lieu of suspending a person’s driving privilege pursuant to this section, the department, upon application, if the person files and thereafter maintains proof of financial responsibility as provided in this section and pays a penalty fee to the department of two hundred fifty dollars ($250), may restrict the person’s driving privilege to any of the following situations:

(1)Necessary travel to and from that person’s place of employment.

(2)Driving that is required in the person’s course of employment, when driving a motor vehicle is necessary in order to perform the duties of the person’s primary employment.

(3)Driving himself or herself to or from school. For purposes of this paragraph, “school” means a California community college campus, a California State University campus, a University of California campus, or a private postsecondary educational institution.

(4)Necessary travel to transport a minor dependent in that person’s immediate family to and from an institute of primary or secondary educational instruction, if the chief administrative officer or principal of the educational institution certifies in writing to the department that the minor dependent is enrolled in the educational institution and no form of public transportation or schoolbus is available between the applicant’s place of residence and the educational institution.

(b)The restriction shall remain in effect for the period of suspension required by this section, so long as proof of financial responsibility is maintained.

(c)If a suspension has been imposed under Section 16070 and one year has elapsed from the date the suspension actually commenced, that suspension shall be terminated if the driving privilege is suspended under Section 16370 or 16381 as the result of a judgment arising out of the accident for which proof of financial responsibility was required to be established. The department may reimpose the suspension of the driving privilege of a person under Section 16070 if the suspension under Section 16370 or 16381 is later set aside for a reason other than that the person has satisfied the judgment in full or to the extent provided in Chapter 2 (commencing with Section 16250) and has given proof of ability to respond in damages as provided in Chapter 3 (commencing with Section 16430).

(d)Notwithstanding Chapter 2 (commencing with Section 42200) of Division 18, all revenues derived from the penalty fees provided in subdivision (a) shall, after deduction by the department of the costs incurred by the department in administering this section, be deposited in the Financial Responsibility Penalty Account in the General Fund. The balance in this fund on each July 1, which is not subject to appropriation as provided in Section 12980 of the Insurance Code, shall revert to the General Fund.

(e)(1)Subdivision (a) does not apply to a commercial driver’s license holder.

(2)A commercial driver’s licenseholder whose driving privilege is otherwise suspended under this chapter is not entitled to a restricted license, unless that person surrenders his or her commercial driver’s license and is issued a noncommercial class C or M driver’s license.

(f)This section shall become operative on July 1, 2016.