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,









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             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,  








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            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  








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            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









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           Analysis Prepared by  :    Debbie Michel / L. GOV. / (916)  
          319-3958