CA AB1989

Imposes a $2 surcharge on every retailer for each new bicycle sold in California, effective July 1, 2013, administered by the State Board of Equalization under the Fee Collection Procedures Law.

Creates the State Park Bicycle Facilities Fund to receive surcharge revenues (minus refunds and administrative expenses) for bicycle trail and facility improvements.

Allocates 60% of fund revenues to a competitive grant program for cities, counties, districts, and nonprofits to create or maintain bicycle trails, paths, signage, and parking facilities.

Allocates 40% of fund revenues to the Department of Parks and Recreation for maintenance of bicycle trails, paths, signage, and related facilities within state park units.

Requires 2/3 legislative approval as a tax increase under California Constitution Article XIII A, and exempts the state from reimbursing local agencies for costs related to this new statute.