A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Sections 2 and 3 of Article XIX thereof, by amending Section 1 of Article XIXA thereof, and by amending Section 1 of Article XIXD thereof, relating to transportation.

(1) The California Constitution restricts the expenditure of revenues from taxes imposed by the state on fuels used in motor vehicles upon public streets and highways to street and highway and certain mass transit purposes. These restrictions do not apply to revenues from taxes or fees imposed under the Sales and Use Tax Law or the Vehicle License Fee Law. This measure would explicitly restrict the expenditure of all interest earned and other increment derived from the investment of those tax revenues and any proceeds from the lease or sale of real property acquired using those tax revenues only for the purposes described above. The measure would require the transfer and restrict the expenditure of revenues from taxes imposed by the state on motor fuels that are attributable to (A) distributions of motor vehicle fuel used or usable in propelling vessels, (B) agricultural off-highway use of motor vehicle fuel subject to certain refunds, and (C) distributions of motor vehicle fuel used in the operation of motor vehicles off highway and for which certain refunds have not been claimed, in accordance with certain statutes as those statutes read on January 1, 2021. (2) The California Constitution restricts the expenditure of revenues from fees and taxes imposed by the state upon vehicles or their use or operation to state administration and enforcement of laws regulating the use, operation, or registration of vehicles used upon the public streets and highways, as well as to street and highway and certain mass transit purposes. These restrictions do not apply to revenues from taxes or fees imposed under the Sales and Use Tax Law or the Vehicle License Fee Law. This measure would explicitly restrict the expenditure of all interest earned and other increment derived from the investment of those revenues and any revenues from fees or taxes collected by the Department of Motor Vehicles for documents, records, information, or any miscellaneous services to the public only for the purposes described above. The measure would prohibit any of these revenues from being used for the payment of principal and interest on state transportation general obligation bonds that were authorized by the voters on or before November 3, 2020, and for payment of principal and interest on state transportation general obligation bond acts approved by the voters after that date, unless the bond act expressly authorizes that use. The measure would prohibit the Legislature from borrowing any of these revenues, except as specified. (3) The California Constitution requires the deposit of a specified portion of the sales and use tax on motor vehicle fuel in the Public Transportation Account in the State Transportation Fund, and restricts the expenditure of those revenues to certain transportation planning and mass transportation purposes. This measure would explicitly require the deposit of, and impose the above-described restriction on, all interest earned and other increment derived from the investment of those revenues, as provided. (4) The California Constitution restricts the expenditure of revenues derived from an annual transportation improvement fee imposed as specified for certain transportation purposes. This measure would explicitly restrict the expenditure of all interest earned and other increment derived from the investment of those revenues only for the purposes described above.