11001-11006

REVENUE AND TAXATION CODE
SECTION 11001-11006




11001.  (a) All money collected by the department for accepted
applications under this part shall be reported monthly to the
Controller and, at the same time, deposited in the State Treasury to
the credit of the Motor Vehicle License Fee Account in the
Transportation Tax Fund.
   Any reference in any law or regulation to the Motor Vehicle
License Fee Fund shall be deemed to refer to the Motor Vehicle
License Fee Account in the Transportation Tax Fund.
   (b) The amount of any penalties collected by the department, as
provided in Sections 9553 and 9554 of the Vehicle Code and Sections
10770 and 10854 of this code, shall, for purposes of subdivision (a),
be deemed to be a percentage of the total fees allocated under this
section and under Section 42270 of the Vehicle Code equal to that
percentage of the weight fee, registration fee, and vehicle license
fee obtained when applying the total of these fees collected,
excluding use tax, against the individual weight fees, registration
fees, and vehicle license fees collected on each application.
Penalties which cannot be allocated in accordance with this
subdivision shall be allocated according to subdivision (c).
   (c) The amount of any penalties collected by the department, as
provided in Sections 9553 and 9554 of the Vehicle Code and Sections
10770 and 10854 of this code which cannot be allocated pursuant to
subdivision (b), shall, for purposes of subdivision (a), be deemed to
be a percentage of the total fees allocated under this section and
under Section 42270 of the Vehicle Code equal to that percentage of
the ratio based on the fees previously allocated under this section
and under Section 42270 of the Vehicle Code in the fiscal year
preceding the calendar year for which the penalties are to be
allocated. That ratio shall be reevaluated periodically and shall be
adjusted to reflect any change in the fee structure that may be
provided in this code or in Division 3 (commencing with Section 4000)
of the Vehicle Code.



11001.5.  (a) (1) Notwithstanding Section 11001, and except as
provided in paragraph (2) and in subdivisions (b) and (d), 24.33
percent, and on and after July 1, 2004, 74.9 percent, of the moneys
collected by the department under this part shall be reported monthly
to the Controller, and at the same time, deposited in the State
Treasury to the credit of the Local Revenue Fund, as established
pursuant to Section 17600 of the Welfare and Institutions Code. All
other moneys collected by the department under this part shall
continue to be deposited to the credit of the Motor Vehicle License
Fee Account in the Transportation Tax Fund and first allocated to the
County of Orange as provided in subdivision (a) of Section 11005 and
as necessary for the service of indebtedness as pledged by Sections
25350.6 and 53585.1 of the Government Code and in accordance with
written instructions provided by the Controller under Sections
25350.7, 25350.9, and 53585.1 of the Government Code, and the balance
shall be allocated to each city and city and county as otherwise
provided by law.
   (2) For the period beginning on and after July 1, 2003, and ending
on February 29, 2004, the Controller shall deposit an amount equal
to 28.07 percent of the moneys collected by the department under this
part in the State Treasury to the credit of the Local Revenue Fund.
All other moneys collected by the department under this part shall
continue to be deposited to the credit of the Motor Vehicle License
Fee Account in the Transportation Tax Fund and allocated to each
city, county, and city and county as otherwise provided by law.
   (b) (1) Notwithstanding Section 11001, net funds collected as a
result of procedures developed for greater compliance with vehicle
license fee laws in order to increase the amount of vehicle license
fee collections shall be reported monthly to the Controller, and at
the same time, deposited in the State Treasury to the credit of the
Vehicle License Collection Account of the Local Revenue Fund as
established pursuant to Section 17600 of the Welfare and Institutions
Code. All revenues in excess of fourteen million dollars
($14,000,000) in the 2004-05 fiscal year and in any fiscal year
thereafter shall be allocated to cities, counties, and cities and
counties as follows:
   (A) (i) Fifty percent shall be paid to the cities and cities and
counties of this state in the proportion that the population of each
city or city and county bears to the total population of all cities
and cities and counties in this state, as determined by the
population research unit of the Department of Finance. For purposes
of this subparagraph, the population of each city or city and county
is that population determined by the last federal decennial or
special census, or a subsequent census validated by the population
research unit or subsequent estimate prepared pursuant to Section
2107.2 of the Streets and Highways Code.
   (ii) In the case of a city incorporated subsequent to the last
federal census, or a subsequent census validated by the population
research unit, the population research unit shall determine the
population of the city. In the case of unincorporated territory
annexed to a city subsequent to the last federal census, or a
subsequent census validated by the population research unit, the
population research unit shall determine the population of the
annexed territory by the use of any federal decennial or special
census, or estimate prepared pursuant to Section 2107.2 of the
Streets and Highways Code. In the case of the consolidation of one
city with another subsequent to the last federal census, or a
subsequent census validated by the population research unit, the
population of the consolidated city, for the purpose of this
subparagraph, is the aggregate population of the respective cities as
determined by the last federal census, or a subsequent census or
estimate validated by the population research unit.
   (B) Fifty percent shall be paid to the counties and cities and
counties in the proportion that the population of each county or city
and county bears to the total population of all counties and cities
and counties, as determined by the population research unit. For
purposes of this subparagraph, the population of each county or city
and county is that determined by the last federal census, or
subsequent census validated by the population research unit, or as
determined by Section 11005.6 of the Revenue and Taxation Code.
   (2) The amendments made to this section by the act that added this
paragraph are operative upon the enactment of that act. However, the
amendments made by the act that added this paragraph apply to
revenues in the Vehicle License Collection Account in excess of
fourteen million dollars ($14,000,000) in the 2004-05 fiscal year and
any fiscal year thereafter.
   (c) Notwithstanding Section 11001, 25.72 percent of the moneys
collected by the department on or after August 1, 1991, and before
August 1, 1992, under this part shall be reported monthly to the
Controller, and at the same time, deposited in the State Treasury to
the credit of the Local Revenue Fund, as established pursuant to
Section 17600 of the Welfare and Institutions Code. All other moneys
collected by the department under this part shall continue to be
deposited to the credit of the Motor Vehicle License Fee Account in
the Transportation Tax Fund and allocated to each city, county, and
city and county as otherwise provided by law.
   (d) Notwithstanding any other provision of law, both of the
following apply:
   (1) This section is operative for the period beginning on and
after March 1, 2004.
   (2) It is the intent of the Legislature that the total amount
deposited by the Controller in the State Treasury to the credit of
the Local Revenue Fund for the 2003-04 fiscal year be equal to the
total amount that would have been deposited to the credit of the
Local Revenue Fund if paragraph (1) of subdivision (a) was applied
during that entire fiscal year. The department shall calculate and
notify the Controller of the adjustment amounts that are required by
this paragraph to be deposited in the State Treasury to the credit of
the Local Revenue Fund. The amounts deposited in the State Treasury
to the credit of the Local Revenue Fund pursuant to this paragraph
shall be deemed to have been deposited during the 2003-04 fiscal
year.
   (e) This section does not amend nor is it intended to amend or
impair Section 25350 and following of, Section 53584 and following
of, the Government Code, or any other statute dealing with the
interception of funds.


11002.  The money in the Motor Vehicle License Fee Fund is hereby
appropriated as provided in this chapter.



11003.  The amount appropriated by the Legislature for the use of
the Department of Motor Vehicles and the Franchise Tax Board for the
enforcement of this part shall be transferred from the Motor Vehicle
License Fee Account in the Transportation Tax Fund to the Motor
Vehicle Account in the State Transportation Fund. That amount shall
be determined so that the appropriate costs for registration and
motor vehicle license fee activities are apportioned between the
recipients of revenues in proportion to the revenues that would have
been received by those recipients if the total fee imposed under this
part was 2 percent of the market value of a vehicle.



11003.1.  All license fees on trailer coaches levied and collected
by the Department of Motor Vehicles pursuant to Section 10751 shall
be deposited in the State Treasury to the credit of the General Fund.



11004.  On or before the first day of December of each fiscal year,
on order of the Controller, there shall be transferred from the Motor
Vehicle License Fee Fund to the General Fund and set apart
sufficient money in the amount of the semiannual interest necessary
to be paid during the following month of January on bonds of the
State issued under:
   (a) The "State Highways Act," approved by the Governor March 22,
1909, and by a majority of the electors at the general election held
November 8, 1910.
   (b) The "State Highways Act of 1915," approved by the Governor May
20, 1915, and by a majority of the electors at the general election
held November 7, 1916.
   (c) Section 2 of Article XVI of the Constitution as approved by a
majority of the electors at a special election held July 1, 1919.
   (d) Section 3 of Article XVI of the Constitution, as approved by a
majority of the electors at the general election held November 2,
1920.
   On or before the first day of June of each fiscal year, on order
of the Controller, there shall be transferred from the Motor Vehicle
License Fee Fund to the General Fund and set apart sufficient money
in the amount of the semiannual interest and the annual redemption
charges necessary to be paid during the following month of July on
the bonds referred to in this section.



11004.5.  The Controller shall deduct from the allocations he would
otherwise make pursuant to Section 11005, the amounts chargeable to
each city, county, and city and county under Section 40516 of the
Vehicle Code, and transfer that amount to the Motor Vehicle Fund in
augmentation of the funds available for the support of the Department
of California Highway Patrol.
   The Controller shall make such deductions at the time of the first
allocation which occurs after the filing with him of the charges
certified by the Commissioner of the California Highway Patrol. If
the amount of the deduction for any city, county, or city and county
exceeds the amount of the allocation for such city, county, or city
and county, the balance of the deduction in excess of the amount of
the apportionment shall be carried over and applied to the next
succeeding allocation or allocations until exhausted.




11005.  After payment of refunds therefrom and after making the
deductions authorized by Section 11003 and reserving the amount
determined necessary by the Pooled Money Investment Board to meet the
transfers ordered or proposed to be ordered pursuant to Section
16310 of the Government Code, commencing with the 2004-05 fiscal
year, the balance of all motor vehicle license fees and any other
money appropriated by law for expenditure pursuant to this section
and deposited to the credit of the Motor Vehicle License Fee Account
in the Transportation Tax Fund and remaining unexpended therein at
the close of business on the last day of the calendar month, shall be
allocated by the Controller by the 10th day of the following month
in accordance with the following:
   (a) First, to the County of Orange. For the 2004-05 fiscal year,
that county shall be allocated fifty-four million dollars
($54,000,000) in monthly installments. For the 2005-06 fiscal year
and each fiscal year thereafter, that county shall receive, in
monthly installments, an amount equal to the amount allocated under
this section for the prior fiscal year, adjusted for the percentage
change in the amount of revenues credited to the Motor Vehicle
License Fee Account in the Transportation Tax Fund from the revenues
credited to that account in the prior fiscal year. Moneys allocated
to the County of Orange under this subdivision shall be used first
for the service of indebtedness as provided in paragraph (1) of
subdivision (a) of Section 11001.5. Any amounts in excess of the
amount required for this service of indebtedness may be used by that
county for any lawful purpose.
   (b) Second, to each city, the population of which is determined
under Section 11005.3 on August 5, 2004, in an amount equal to the
additional amount of vehicle license fee revenue, including offset
transfers, that would be allocated to that city under Sections 11000
and 11005, as those sections read on January 1, 2004, as a result of
that city's population being determined under subdivision (a) or (b)
of Section 11005.3.
   (c) Third, to each city that was incorporated from an
unincorporated territory after August 5, 2004, in an amount equal to
the product of the following two amounts:
   (1) The quotient derived from the following fraction:
   (A) The numerator is the product of the following two amounts:
   (i) Fifty dollars ($50) per year.
   (ii) The fraction determined as the total amount of vehicle
license fee revenue collected during the most recent fiscal year
divided by the total amount of vehicle license fee revenue collected
during the 2004-05 fiscal year.
   (B) The denominator is the fraction determined as the actual
population, as defined in subdivision (e) of Section 11005.3, of all
cities during the most recent fiscal year, divided by the actual
population, as defined in subdivision (e) of Section 11005.3, of all
cities in the 2004-05 fiscal year.
   (2) The city's population determined in accordance with Section
11005.3.
   (d) Fourth, to each city that was incorporated before August 5,
2004, in an amount equal to the product of the following two amounts:
   (1) The quotient derived from the following fraction:
   (A) The numerator is the product of the following two amounts:
   (i) Fifty dollars ($50) per year.
   (ii) The fraction determined as the total amount of vehicle
license fee revenue collected during the most recent fiscal year
divided by the total amount of vehicle license fee revenue collected
during the 2004-05 fiscal year.
   (B) The denominator is the fraction determined as the actual
population, as defined in subdivision (e) of Section 11005.3, of all
cities during the most recent fiscal year, divided by the actual
population, as defined in subdivision (e) of Section 11005.3, of all
cities in the 2004-05 fiscal year.
   (2) The actual population, as defined in subdivision (e) of
Section 11005.3, residing in areas annexed after August 5, 2004, as
of the date of annexation.
   (e)  Fifth, to the cities and cities and counties of this state in
the proportion that the population of each city or city and county
bears to the total population of all cities and cities and counties
in this state, as determined by the Demographic Research Unit of the
Department of Finance. For the purpose of this subdivision, the
population of each city or city and county shall be determined in
accordance with Section 11005.3.



11005.1.  (a) Any city or city and county may expend any money
received by it pursuant to Section 11005 for:
   (1) Planning, acquiring, constructing, operating, or maintaining a
rapid transit system itself or jointly with one or more other
cities, counties, cities and counties, or public rapid transit
districts, agencies, or authorities; or
   (2) Making contributions to any public rapid transit district,
agency, or authority exercising jurisdiction within the city or city
and county for use in planning, acquiring, constructing, operating,
or maintaining a rapid transit system.
   (b) A county may expend such money in making contributions to any
city or public rapid transit district, agency, or authority within
the county for use in planning, acquiring, constructing, operating,
or maintaining a rapid transit system.



11005.2.  Notwithstanding subdivision (b) of Section 11005, the
Controller shall not allocate any revenue pursuant to paragraph (1)
of that subdivision to any city which receives revenue pursuant to
Section 97.3 or pursuant to Section 56842.2 of the Government Code.




11005.3.  (a) In the case of a city that incorporated on or after
January 1, 1987, and before August 5, 2004, the Controller shall
determine that the population of the city for its first 10 full
fiscal years, and any portion of the first year in which the
incorporation is effective if less than a full fiscal year, is the
greater of either:
   (1) The number of registered voters in the city multiplied by
three. The number of registered voters shall be calculated as of the
effective date of the incorporation of the city.
   (2) The actual population, as defined in subdivision (e).
   (b) In the case of a city that incorporated on or after January 1,
1987, and before August 5, 2004, and for which the application for
incorporation was filed with the executive officer of the local
agency formation commission pursuant to subdivision (a) of Section
56828 of the Government Code on or after January 1, 1991, the
Controller shall determine that the population of the city for its
first seven full fiscal years, and any portion of the first year in
which the incorporation is effective if less than a full fiscal year,
is the greater of either:
   (1) The number of registered voters in the city multiplied by
three. The number of registered voters shall be calculated as of the
effective date of the incorporation of the city.
   (2) The actual population, as defined in subdivision (e).
   (c) In the case of a city that was incorporated from
unincorporated territory after August 5, 2004, the Controller shall
determine the population of the city as follows:
   (1) For its first 12 months, 150 percent of the city's actual
population.
   (2) For its 13th through 24th months, 140 percent of the city's
actual population.
   (3) For its 25th through 36th months, 130 percent of the city's
actual population.
   (4) For its 37th through 48th months, 120 percent of the city's
actual population.
   (5) For its 49th through 60th months, 110 percent of the city's
actual population.
   (6) After its 60th month, the city's actual population.
   (d) For purposes of this section, "actual population" means the
population determined by the last federal decennial or special
census, or a subsequent census validated by the Demographic Research
Unit of the Department of Finance or subsequent estimate prepared
pursuant to Section 2107.2 of the Streets and Highways Code.
   (e)  In the case of unincorporated territory being annexed to a
city, during the 10-year, seven-year, or five-year period following
incorporation, as the case may be, subsequent to the last federal
census, or a subsequent census validated by the Demographic Research
Unit of the Department of Finance, the unit shall determine the
population of the annexed territory by the use of any federal
decennial or special census or any estimate prepared pursuant to
Section 2107.2 of the Streets and Highways Code. The population of
the annexed territory as determined by the Demographic Research Unit
shall be added to the city's population as previously determined by
the Controller pursuant to paragraph (1) or (2) of subdivision (a),
paragraph (1) or (2) of subdivision (b), or subdivision (c), as
applicable.
   (f) After the 10-year, seven-year, or five-year period following
incorporation, as the case may be, the Controller shall determine the
population of the city as the city's actual population, as defined
in subdivision (d).
   (g) The amendments made to this section by the act adding this
subdivision shall not apply with respect to either of the following:
   (1) Any city that has adopted an ordinance or resolution, approved
a ballot measure, or is subject to a consent decree or court order,
that annually limits the number of housing units that may be
constructed within the city.
   (2) Any city that has not prepared and adopted a housing element
in compliance with Section 65585 of the Government Code.
   (h) This section shall become operative July 1, 1991.



11005.4.  Notwithstanding Section 11005, for the 1993-94 fiscal year
only, after payment of refunds therefrom and after making the
deductions authorized by Section 11003 and reserving the amount
determined necessary by the Pooled Money Investment Board to meet the
transfers ordered or proposed to be ordered pursuant to Section
16310 of the Government Code, the Controller shall, in addition to
making any allocations required by Section 11005, allocate, in
accordance with the procedures applicable to those moneys allocated
pursuant to subdivisions (c) and (d) of Section 11005, the amount of
one hundred thirty million dollars ($130,000,000) as follows:
   (a) Ninety million dollars ($90,000,000) to cities in proportion
to the total property tax revenue allocation reduction for each city
as a result of Sections 97.02 and 97.035, as determined by the
Director of Finance.
   (b) Forty million dollars ($40,000,000) to counties and cities and
counties in proportion to the total property tax revenue allocation
reduction for each county or city and county as a result of Sections
97.02 and 97.035, as determined by the Director of Finance.



11005.5.  The payments provided under Section 11005 shall not be
made to any incorporated city which has not held an election of
municipal officers within a period of 10 years preceding the date of
such payment. Payments heretofore accumulated on behalf of any such
city shall be apportioned to all other cities in the manner provided
by Section 11005.



11005.6.  Any city, county, or city and county may apply to the
population research unit of the Department of Finance to estimate its
population. The department may make the estimate if in the opinion
of the department there is available adequate information upon which
to base the estimate. Not less than 25 days nor more than 30 days
after the completion of the estimate, the Department of Finance shall
file a certified copy thereof with the Controller if the estimate is
greater than the current certified population. Such a certification
may be made once each fiscal year.
   All payments under Section 11005 for any allocation subsequent to
the filing of the estimate shall be based upon the population so
estimated until a subsequent certification is made by the Department
of Finance or a subsequent federal decennial census is made.
   Population changes based on a federal or state special census or
estimate validated by the Department of Finance shall be accepted by
the Controller only if certified to him or her at the request of the
Department of Finance. The request shall be made only if the census
or estimate is greater than the current certified population and
shall become effective on the first day of the month following
receipt of the certification.
   The Department of Finance may assess a reasonable charge, not to
exceed the actual cost thereof, for the preparation of population
estimates pursuant to this section, which is a proper charge against
the city, county, or city and county applying therefor. The amount
received shall be deposited in the State Treasury as a reimbursement
to be credited to the appropriation from which the expenditure is
made.
   As of May 1, 1988, any population estimate prepared by the
Department of Finance pursuant to Section 2227 may be used for all
purposes of this section unless a written request not to certify is
received by the department from the city, city and county, or county
within 25 days of completion of the estimate.


11006.  (a) Commencing on December 31, 2001, the Controller, in
consultation with the Department of Motor Vehicles and the Department
of Finance, shall recalculate the distribution of the amount of
motor vehicle license fees paid by commercial vehicles that are
subject to Section 9400.1 of the Vehicle Code and transfer the
following sums from the General Fund in the following order:
   (1) An amount sufficient to cover all allocations and interception
of funds associated with all pledges, liens, encumbrances and
priorities as set forth in Section 25350.6 of the Government Code,
which shall be transferred so as to pay that allocation.
   (2) An amount sufficient to continue allocations to the State
Treasury to the credit of the Vehicle License Fee Account of the
Local Revenue Fund, as established pursuant to Section 17600 of the
Welfare and Institutions Code, which would be in the same amount had
the amendments made by the act that added this section to Section
10752 of the Revenue and Taxation Code not been enacted, which shall
be deposited in the State Treasury to the credit of the Vehicle
License Fee Account of the Local Revenue Fund, as established
pursuant to Section 17600 of the Welfare and Institutions Code. This
paragraph shall be inoperative commencing with the 2010-11 fiscal
year.
   (3) An amount sufficient to continue allocations to the State
Treasury to the credit of the Vehicle License Fee Growth Account of
the Local Revenue Fund, as established pursuant to Section 17600 of
the Welfare and Institutions Code, which would be in the same amount
had the amendments made by the act that added this section to Section
10752 of the Revenue and Taxation Code not been enacted, which shall
be deposited in the State Treasury to the credit of the Vehicle
License Fee Growth Account of the Local Revenue Fund, as established
pursuant to Section 17600 of the Welfare and Institutions Code.
   (4) An amount sufficient to cover all allocations and interception
of funds associated with all pledges, liens, encumbrances and
priorities, other than those referred to in paragraph (1), as set
forth in Section 25350 and following of, Section 53584 and following
of, 5450 and following of, the Government Code, which shall be
transferred so as to pay those allocations.
   (b) The balance of any funds not otherwise allocated pursuant to
subdivision (a) shall continue to be deposited to the credit of the
Motor Vehicle License Fee Account in the Transportation Tax Fund and
allocated to each city, county, and city and county as otherwise
provided by law.
   (c) In enacting paragraphs (1) and (4) of subdivision (a), the
Legislature declares that paragraphs (1) and (4) of subdivision (a),
shall not be construed to obligate the State of California to make
any payment to a city, city and county, or county from the Motor
Vehicle License Fee Account in the Transportation Tax Fund in any
amount or pursuant to any particular allocation formula, or to make
any other payment to a city, city and county, or county, including,
but not limited to, any payment in satisfaction of any debt or
liability incurred or so guaranteed if the State of California had
not so bound itself prior to the enactment of this section.
   (d) Notwithstanding subdivisions (a) and (b), on and after July 1,
2010, that amount equal to the amount that would have been
transferred pursuant to paragraph (2) of subdivision (a) had the act
adding this subdivision not been enacted, shall not be transferred
from the General Fund.