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<br />8A <br />Page 3 <br /> <br />because it would have allowed local rent control ordinances to keep mobile homes at an <br />affordable rate for fixed income residents. <br /> <br />Flood Package & Water Issues <br /> <br />On the package of flood bills, the result from the Governor's desk was mixed for cities. The <br />League believes the Governor made a good decision by signing SB 5 (Machado), AB 5 (Wolk), <br />AB 162 (Walk) and SB 17 (Florez). However, it is regrettable that he signed AB 70 (Jones), a bill <br />that attempts to assign liability to six cities for state maintained levees. <br /> <br />Transportation <br /> <br />The implementation of the infrastructure bonds passed by voters on the 2006 ballot has been a <br />high priority for the League. The Governor signed AB 193/AB 196 (Committee on Budget) which <br />ciarifies the allocation and oversight of Proposition 1B, the local streets and roads funding. This <br />League and California State Association of Counties (CSAC) "fix" to the FY 2007-08 Budget <br />allocates $550 million to cities and $400 million to counties. <br /> <br />The Governor signed SB 717 (Perata), matching the League's request. This action is significant <br />to cities because it ensures that the statutory formula for the distribution of Prop. 42 funding <br />remains in place. <br /> <br />Under this formula, 20 percent of the revenues go to the Public Transit Account, 20 percent to the <br />State Transportation Improvement Program and 40 percent to cities and counties (split in half). <br />Maintaining the formula is helpful to cities because il ensures the efficient distribution of sales tax <br />revenues from gasoline. <br /> <br />Labor Relations <br /> <br />The Governor's decisions on labor relations bills were varied for cities. The League requested a <br />veto on AB 220 (Bass), AB 553 Hernandez and SB 942 (Migden). He signed AB 220 and vetoed <br />the other two. <br /> <br />Public Safety <br /> <br />Overall, the Governor's decisions related to public safely legislation were positive for cities. <br />Although the League requested that he sign AS 81 (Torrico), the Governor vetoed the bill. <br />However, the League was pleased that he signed AB 1291 (Mendoza), sa 67 (Perata) and S8 <br />839 (Calderon). <br /> <br />Revenue and Taxation <br /> <br />Cities did well with the Governor's decisions on revenue and taxation related legislation. Per the: <br />League's request, he signed AB 1222 (Laird), AB 1260 (Caballero) and AS 373 (Wolk). <br /> <br />Miscellaneous <br /> <br />Of direct interest to general law cities was AB 701 (De La Torre). Vetoed by the Governor, this <br />bill would have increased compensation in general law cities for the first time since 1984. <br /> <br />'Internet Tax MoratorIum' Continued from Page 1... <br /> <br />The temporary extension measure was approved despite the preference by a number of <br />lawmakers for a permanent ban on Internet access taxes. Nearly the entire California <br />congressional delegation voted in favor of the four~year temporary extension. In addition, a <br />measure sponsored by Rep. Anna Eshoo (D-Palo Alto) 10 make the moratorium permanent, had <br />the support of 238 House co-sponsors. <br /> <br />The League of Califomia Cities thanks everyone who wrote letters and made calls to their <br />representatives urging their support for this important legislation. <br /> <br />'3 <br />