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SB 89 Vehicle License Fee Lawsuit to Be Heard May 4 in Sacramento County Superior Court

March 20, 2012

On Sept. 28, 2011 the League filed a lawsuit challenging the constitutionality of the state's diversion of vehicle license fee (VLF) revenues through SB 89 and AB 118.

 

The case will be heard by the Sacramento County Superior Court on May 4. Today, the League plans to file its opening brief and a ruling is expected within 90 days of the hearing.   The newly incorporated city of Jurupa Valley and the cities of Chico and Porterville have also joined the League in petitioning the court.

SB 89 was "gut-and-amend" legislation included in the FY 2011-12 budget, and resulted in loss of vital city general fund dollars. The state diverted $130 million of local VLF funds to finance certain state public safety grant programs previously funded by the now-expired special 0.15 percent VLF, including payments to local and state agencies that are not eligible to receive VLF funds under the state constitution. These dollars funded municipal public safety and other vital services and also included special allocations for four newly incorporated cities and recently annexed inhabited areas.

The League is arguing that the SB 89 and AB 118 violate both Proposition 22 (2010) and Prop. 1A (2004). 



 
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