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<ns0:Description>
<ns0:Id>20250AB__248499INT</ns0:Id>
<ns0:VersionNum>99</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>2484</ns0:MeasureNum>
<ns0:MeasureState>INT</ns0:MeasureState>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Alvarez</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_ORIGINATING">(Coauthor: Assembly Member Ward)</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Alvarez</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Ward</ns0:Name>
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<ns0:Title> An act to amend Sections 120480, 120481, 120485, and 120486 of, and to repeal Section 120482 of, the Public Utilities Code, relating to transportation. </ns0:Title>
<ns0:RelatingClause>transportation</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>San Diego Metropolitan Transit System: transactions and use tax: voter initiatives. </ns0:Subject>
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<ns0:DigestText>
<html:p>The Mills-Deddeh Transit Development Act establishes the San Diego Metropolitan Transit Development Board, also known as the San Diego Metropolitan Transit System (MTS), governed by a 15-member board with specified powers and duties related to the operation of public transit services in the southern portion of the County of San Diego. The act authorizes MTS to impose a transactions and use tax of up to 0.5% for public transit purposes within its jurisdiction, or a portion of its jurisdiction, pursuant to the Transactions and Use Tax Law and subject to voter approval and various other requirements.</html:p>
<html:p>This bill would also authorize those taxes to be imposed by a qualified voter initiative. To the extent that the bill would impose additional duties on a county elections official, the bill would impose a state-mandated local program.</html:p>
<html:p>The Transactions and Use Tax Law limits the combined rate of all taxes that may be imposed in accordance with that law in any county to 2%.</html:p>
<html:p>This bill would prohibit the tax rate of 0.5% described above that may be imposed by MTS or a qualified voter initiative from being considered for purposes of the combined rate limit under the Transactions and Use Tax Law.</html:p>
<html:p>The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.</html:p>
<html:p>This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.</html:p>
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<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 120480 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_0E06F361-89A2-4674-BCD9-7E23BFB09952">
<ns0:Num>120480.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
A retail transactions and use tax ordinance applicable to the entirety of, or a portion of, the incorporated and unincorporated territory within the area of the board pursuant to Section 120054 shall be imposed by the board in accordance with Section 120485, the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code), and Section 2 of Article XIII
<html:span class="ThinSpace"/>
C of the California Constitution. The
county shall conduct an election called by the board pursuant to this paragraph in the same manner as provided by law for the conduct of elections by a county.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Notwithstanding Section 9300 of the Elections Code or any other law, the retail transactions and use tax ordinance described in paragraph (1) may also be imposed by a qualified voter initiative pursuant to Chapter 4 (commencing with Section 9300) of Division 9 of the Elections Code and in accordance with Section 120485 and the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code).
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The tax ordinance shall take effect at the close of the polls on the day of election at which the proposition is adopted. The initial collection of the transactions and use tax shall take place in accordance with Section 120483.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
If, at any time, the voters do not approve the imposition of the transactions and use tax, this chapter remains in full force and effect. At any time thereafter,
the
same, or a different, measure
may be submitted to the voters by the board or a qualified voter initiative in accordance with this chapter.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The portion of the area of the board to which the tax would apply shall be determined by the board or the qualified voter initiative, as applicable, before the electors vote on the measure.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
If the tax only applies to a portion of an area of the board, both of the following shall apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The incorporated area of each city and of contiguous cities within the area of the board shall be either wholly included within that portion or wholly excluded from that portion. For purposes of this subparagraph, “contiguous cities” means two or more cities with shared borders.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The entire unincorporated area of the board shall either be wholly included within that portion or wholly excluded from that portion.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The board shall not enter into a construction contract over one million dollars
($1,000,000) that would be in part or wholly financed through the tax with any entity unless the entity provides to the board an enforceable commitment that the entity and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or a contract that falls within an apprenticeship occupation in the building and construction trades in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
This paragraph shall not apply if any of the following requirements are met:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The board has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The board has contracted to use a skilled and trained workforce and the entity has agreed to be bound by
that project labor agreement.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The project or contract is being performed under the extension or renewal of a project labor agreement that was entered into by the board before January 1, 2019.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The entity has entered into a project labor agreement that will bind the entity and all its subcontractors at every tier performing the project or the entity has contracted to use a skilled and trained workforce.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
For purposes of this paragraph, “project labor agreement” has the same meaning as defined in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
The revenues derived from the tax shall be spent within, or for the benefit of, the portion of the area of the board to which the tax applies, and shall be spent only on transportation and transit infrastructure and services.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
Any revenues derived from the tax shall supplement, and not supplant, other transportation revenues available to the portion of the area of the board to which the tax applies.
</html:p>
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 120481 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:Num>120481.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The ordinance shall state the nature of the tax to be imposed, the tax rate or the maximum tax rate, the purposes for which the revenue derived from the tax will be used, the portion of the area of the board to which the tax would apply, and may set a term during which the tax will be imposed. The purposes for which the tax revenues may be used shall be limited to public transit purposes serving the area of jurisdiction of the board, including the administration of this division and legal actions
related thereto. These purposes include expenditures for planning, environmental reviews, engineering and design costs, and related right-of-way acquisition. The ordinance shall contain an expenditure plan that shall include the allocation of revenues for the purposes authorized by this section.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
As used in this section, “public transit purposes” includes the public transit responsibilities under the jurisdiction of the board and any repair, redesign, or ongoing maintenance of a right-of-way upon which transit is intended to travel, or any bikeway, bicycle path, sidewalk, trail, pedestrian access, or pedestrian accessway.
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<ns0:BillSection id="id_D23B6052-A8EC-4E35-9E3B-96FCC6203CC8">
<ns0:Num>SEC. 3.</ns0:Num>
<ns0:ActionLine action="IS_REPEALED" ns3:href="urn:caml:codes:PUC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'11.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'4.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'11.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'120482.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 120482 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is repealed.
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<ns0:Num>SEC. 4.</ns0:Num>
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Section 120485 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_5D8D4C7F-559E-4BBC-97D6-935FA0D63E1C">
<ns0:Num>120485.</ns0:Num>
<ns0:LawSectionVersion id="id_D623FAA3-41E7-4AC0-8413-A5D78E4EDC22">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Subject to the approval of the voters within the portion of the county to which the tax would apply, a maximum tax rate of one-half of 1 percent may be imposed under this article and the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code). The tax
at a rate other than one-half or one-fourth of 1 percent shall not be levied unless specifically authorized by the Legislature.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A retail transactions and use tax may be imposed pursuant to subdivision (a) that, in combination with all taxes imposed in accordance with Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, exceeds the limit established in Section 7251.1 of the Revenue and Taxation Code.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Notwithstanding Section 7251.1 of the Revenue and Taxation Code, the tax rate authorized pursuant to this section shall not be considered for purposes of the combined rate limit established by Section 7251.1 of the Revenue and Taxation Code.
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<ns0:BillSection id="id_4DADDF7A-1BF5-4703-B7C0-40263C8AFF84">
<ns0:Num>SEC. 5.</ns0:Num>
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Section 120486 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_B323BDC1-2CFB-4DE9-9852-E17B1DF5AB1F">
<ns0:Num>120486.</ns0:Num>
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<html:p>The board or a qualified voter initiative, as part of the ballot proposition to approve the imposition of a retail transactions and use tax, may seek authorization to issue bonds payable from the proceeds of the tax.</html:p>
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<ns0:BillSection id="id_D0A549B3-A870-4AAF-A92E-27C0E9A6CF74">
<ns0:Num>SEC. 6.</ns0:Num>
<ns0:Content>
<html:p>If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.</html:p>
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