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<br />9A <br />Page 5 <br /> <br />Vehicle License Fee and County Realignment <br /> <br />A proposal emerged on the final day of Conference Committee to shift $300 million in Department <br />of Motor Vehicles administrative costs to counties to fund additional responsibilities under eal <br />WORKS (welfare) program. OOF staff insists that this proposal will not have any impact on the <br />receipt on the existing VLF that cities receive per capita, but no language is currently available. <br /> <br />Independent Contractor Withholding <br /> <br />Businesses and governmental agencies will be required to withhold from independent contractors <br />that currently require the filing of a federal 1 099 tax form three percent of payments for goods and <br />services for accelerated income tax collection. <br /> <br />Bottle Bill Program Deficit <br /> <br />The Department of Conservation on Monday, June 1, announced that the state's beverage <br />container program has a negative balance of $157 million. This Bottle Bill program funds city and <br />county grant payments for recycling (at $10 million annually) as well as the state's bottle and can <br />CRV recycling program. Cities regularly use the can and bottle CRV payments to fund curbside <br />recycling services. The administration's plan makes proportional cuts to the program. It also <br />included a policy that grants could only be given if the program had a surplus. <br /> <br />Last week, members of the Budget Conference Committee looked at raising the current CRV of 5 <br />cents to 10 cents to fund the Bottle Bill program, as well as discussed alternative proposals by the <br />beverage and recycling industries to keep the program afloat. Because the committee did not <br />vote on any of the proposals as a part of the Budget Conference Committee report, they are not <br />included in the budget that will be voted on next week. However, it is still likely for a "fix" to the <br />Bottle Bill program will be part of the final budget that will be determined in the coming weeks. <br /> <br />Additional Information <br /> <br />For a legislative summary document on the major provisions of the proposed budget document <br />please go to htto:/Isinet2.sen.ca.aov/budaet/2009conf/2009ConfComHiahliahts.odf <br /> <br />'Resolutions' Continued from Page 1... <br /> <br />67 Cities Pass Resolutions to COODerate with Lltfaation Aaainst the State <br /> <br />Alameda Albany American Canyon Arcadia <br />Avenal Brea Calistoaa Carpinteria <br />Chula Vista Cloverdale Clovis Coalinga <br />Colusa Commerce Covina Danville <br />Delano Diamond Bar EI Monte Fairfield <br />Fontana Fresno Hanford Healdsburg <br />Huahson Huntington Park Imperial Imperial Beach <br />Jackson La Mesa La Quinta Lake Forrest <br />Larkspur Lathrop Lemoore Livingston <br />Lodi Madera Manhattan Beach Manteca <br />Mendota Merced Mill Valley Napa <br />Patterson Petaluma Pleasanton Poway <br />Rancho Cucamonaa Red Bluff Redondo Beach Ripon <br />Salinas San Leandro San Rafael SebastoDol <br />Selma Shatter Sienal Hill Sonoma <br />South Gate Sui sun City Visalia Walnut Creek <br />Wasco Waterford West H oltvwood <br /> <br />The legal opinion, prepared by the law firm of Nielsen, Merksamer, Parrinello, Mueller & Naylor. <br />LLP, notes that In both 1974 and 1998 voters imposed restrictions on the state's ability to use gas <br />taxes for debt service on bonds and to divert local gas taxes for the state general fund. The <br /> <br />5 <br />