BILL ANALYSIS SB 205 Page 1 Date of Hearing: July 8, 2009 ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT Anna Marie Caballero, Chair SB 205 (Hancock) - As Amended: April 14, 2009 SENATE VOTE : 21-17 SUBJECT : Traffic congestion: motor vehicle registration fees. SUMMARY : Authorizes a countywide transportation planning agency to place a local measure on the ballot that would impose a fee of up to $10 on each registered vehicle in that county. Specifically, this bill : 1)Authorizes a countywide transportation planning agency to place a majority vote ballot measure before the voters to increase the motor vehicle registration fee up to $10. 2)Requires the governing board of the countywide transportation planning agency to adopt a ballot measure resolution by majority vote at a noticed public hearing. 3)Provides that the ballot measure resolution shall contain a finding of fact that the projects and programs to be funded by the fee increase have a relationship or benefit to the persons who will be paying the fee. 4)Provides that the projects and programs must be consistent with a regional transportation plan (RTP). 5)Requires the governing board to adopt an expenditure plan for allocation of the revenue to transportation-related programs and projects. 6)Specifies that the transportation-related programs and projects include, but are not limited to: a) Providing matching funds for funding made available for transportation programs and projects from state general obligation (GO) bonds; b) Creating or sustaining congestion mitigation programs and projects; or, SB 205 Page 2 c) Creating or sustaining pollution mitigation programs and projects. 7)Defines "congestion mitigation programs and projects" to include, but not be limited to, programs and projects identified in an adopted congestion management program or county transportation plan; projects and programs to manage congestion, including, for example, a high-occupancy vehicle or high-occupancy toll lanes; improved transit services through the use of technology and bicycle and pedestrian improvements; improved signal coordination, traveler information systems, highway operational improvements, and local street and road rehabilitation; and transit service expansion. 8)Defines "pollution mitigation programs and projects" to include, but not be limited to, programs and projects carried out by a congestion management agency (CMA), a regional water quality control board, an air pollution control district, an air quality management district, or another public agency that is carrying out the adopted plan of one of those entities. 9)Defines "countywide transportation planning agency" to mean a county's CMA or the agency designated to submit the county's transportation plan. 10)Prohibits no more than 5% of the fees distributed to a countywide transportation planning agency to be used for administrative costs associated with programs and projects. 11)Provides that the Department of Motor Vehicles (DMV) shall collect the fee, if requested by the countywide transportation planning agency. 12)Makes other legislative findings and declarations. EXISTING LAW : 1)Requires that county CMAs within urbanized areas prepare and adopt congestion management programs. 2)Establishes a basic vehicle registration fee of $34, plus a $22 surcharge for additional personnel for the California Highway Patrol, and authorizes local agencies until January 1, SB 205 Page 3 2012, to impose separate vehicle registration fee surcharges in their respective jurisdictions for a variety of special programs, including one dollar for service authorities for freeway emergencies, one dollar for deterring and prosecuting vehicle theft, up to seven dollars for air quality programs, one dollar for removing abandoned vehicles, and one dollar for fingerprint identification programs. FISCAL EFFECT : Unknown COMMENTS : 1)The sponsor, the Alameda County Congestion Management Agency, states that "to maximize the capacity and improve the efficiency of the transportation network, local transportation agencies are relying more on intelligent transportation systems (ITS). These strategies include signal light coordination, and monitoring real-time traffic conditions at intersections and on freeways which allows the agency to adjust signal times and update travel times on freeway message signs. While Proposition 1B (the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006) dedicated $250 million for technology based on improvements to local streets and roads and the Corridor Mobility Improvement Account funds are also being used to implement intelligent transportation systems, there is no funding source to pay for the ongoing operations and maintenance of technology-based improvements." 2)SB 205 provides for a funding mechanism to pay for these types of improvements, which would be assessed on each registered vehicle in the county, if voters approve it. The author believes that motor vehicle registration fees are an appropriate funding source for transportation system programs because there is a direct benefit to motorists. 3)In previous legislative sessions there have been a number of bills with a concept similar to SB 205. AB 444 (Hancock, 2008), which was held in the Senate Revenue & Taxation Committee, would have allowed vehicle registration fees to be imposed for congestion management programs in Alameda, Contra Costa, Marin, Santa Clara, Solano and Santa Cruz Counties. SB 348 (Simitian), Chapter 377, Statutes of 2008, extended from January 1, 2009 to January 1, 2013, the authority of the City /County Association of Governments of San Mateo to assess up to a $4 annual fee on vehicles registered within San Mateo SB 205 Page 4 County for programs to manage traffic congestion and stormwater pollution. SB 116 (Simitian, 2006), which died in the Assembly Appropriations Committee, would have allowed a county's CMA or board of supervisors to impose, subject to majority vote approval of county voters, a maximum $25 surcharge on the annual renewal of vehicles registered in their respective jurisdictions to fund transportation-related projects and programs, including pollution prevention programs. 4)TECHNICAL AMENDMENTS : The following technical amendment is suggested: Page 3, line 2, after "and" insert: the projects and programs 5)This bill is double-referred to the Committees on Transportation, where it passed with a 9-5 vote on June 29, 2009, and to Local Government. REGISTERED SUPPORT / OPPOSITION : Support Alameda County Congestion Management Agency [SPONSOR] Alameda-Contra Costa Transportation District California Transit Association Contra Costa Transportation Authority East Bay Municipal Utilities District Metropolitan Transportation Commission San Francisco Bay Area Rapid Transit District Santa Clara Valley Transportation Authority Santa Cruz Regional Transportation Commission TransForm Transportation Agency for Monterey County Transportation Authority of Marin Opposition AAA of Northern California Automobile Club of Southern CA CA State Automobile Association Howard Jarvis Taxpayers Association SB 205 Page 5 Analysis Prepared by : Debbie Michel / L. GOV. / (916) 319-3958