California Constitution Article XIX D - Vehicle License Fee Revenues for Transportation Purposes [Section 1]
California Constitution – Article XIX D: Vehicle License Fee Revenues for Transportation Purposes
[Section 1]
🔹 Summary of Article XIX D, Section 1:
This section was added to the California Constitution to ensure that revenues derived from the vehicle license fee (VLF) are used exclusively for transportation purposes, particularly local streets and roads.
🔸 Key Provisions:
Section 1 – Allocation and Use of Vehicle License Fee Revenues:
Vehicle License Fee Revenues:
Revenues that result from reducing the vehicle license fee (VLF) and replacing it with state general fund revenues (as part of a prior tax swap) must be used only for transportation purposes.
Local Allocation:
These revenues must be allocated to cities and counties to be used for:
Street and road maintenance
Construction and reconstruction
Public transit and other transportation-related needs
Prohibition on Diversion:
These funds cannot be diverted to other non-transportation uses, even during fiscal emergencies or budget shortfalls.
📌 Context & Purpose:
Adopted as Proposition 22 in 2010, this provision was a response to state practices of borrowing or redirecting local transportation funds for general state budget uses.
It protects local transportation funding from being reallocated or suspended by the state government.
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