BILL ANALYSIS
SB 406
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Date of Hearing: August 19, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
SB 406 (DeSaulnier) - As Amended: July 9, 2009
Policy Committee: Local
GovernmentVote:5-2
Transportation 8-6
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill (a) authorizes the imposition of a $1 or $2 fee on
vehicle registrations to pay for regional land use planning
activities, and (b) revises the membership and expands the
duties of the Planning Advisory and Assistance Council (PAAC)
within the Governor's Office of Planning and Research.
FISCAL EFFECT
1)One time programming/startup costs to DMV of $350,000. Ongoing
costs to DMV of about $100,000 to administer the program. One
time costs reimbursed from the local agency first approving
the fee and ongoing costs deducted from fee proceeds.
2)Fee revenues to local agencies of up to $63 million annually,
if all agencies approved a two dollar increase. Of this
maximum amount, $3 million annually would be transferred to
PAAC to fund its expanded operations.
SUMMARY (Continued)
Specifically, the bill:
1)Expands the membership of the PAAC to include: seven
representatives of regional planning organizations; one member
from the California Air Resources Board; one member from the
California Transportation Commission; one member from the
State Energy Resources Conservation and Development
Commission;, and one member each appointed by the Assembly and
the Senate.
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2)Adds a variety of new duties to PAAC, including: working with
the strategic growth council, regional agencies, and local
governments to facilitate the implementation of regional
blueprint plans; providing recommendations to various state
entities relating to land use, housing, and transportation;
and reporting to the Legislation on regional performance
measures.
3)Authorizes a metropolitan planning organization, a council of
government, and a county transportation commission, to impose
a surcharge of $1 or $2 on a motor vehicle registered to an
owner with an address located within its jurisdiction.
4)Provides that all revenue received by the imposition of a
surcharge shall be used solely to develop a sustainable
community strategy or a regional blueprint plan that
identifies land use strategies to reduce the use of motor
vehicles and achieve greenhouse gas emission reductions from
motor vehicles.
5)Provides that if the surcharge exceeds $1, all amounts above
$1 in a jurisdiction with a population greater than 300,000
shall be used to provide grants to cities, counties, and
cities and counties for planning and projects related to the
implementation of a regional blueprint plan.
6)Provides that the entities shall transmit 5% of all vehicle
registration fee surcharge revenues to PAAC for the
performance of the new duties of the PAAC.
7)Authorizes an entity imposing a vehicle registration fee
surcharge to share revenues with the appropriate local air
district subject to an agreement between the parties. Provides
that all revenue received by a local air district be used to
assist local and regional governments in reducing greenhouse
gas emissions.
COMMENTS
1)Background . Existing law requires the metropolitan planning
organizations to adopt regional transportation plans directed
at achieving a coordinated and balanced regional
transportation system. SB 375 (Steinberg), Chapter 728,
Statutes of 2008 requires that each organization include
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within its regional transportation plan a sustainable
communities strategy, designed to achieve specified targets
for greenhouse gas emission reductions.
Currently, local agencies are authorized to form joint powers
agencies. Cities and counties in regions have exercised this
authority to form joint powers agencies called councils of
governments to implement regional planning activities required
under state law, including regional housing needs assessments
and regional transportation plans. COGs generally serve as
federally recognized metropolitan planning organizations for
transportation planning purposes.
The Office of Planning and Research within the governor's
office serves as the state's planning agency. The PAAC,
located within OPR, is responsible for various land use
planning related activities, including development of the
State Environmental Goals and Policies Report. OPR's Director
appoints the membership of the PAAC, which must include three
city representatives, three county representatives, one
representative from each of the regional planning districts
designated by OPR, and one representative of Indian tribes
with reservations in California.
The strategic growth council is required to recommend policies
to the governor, state agencies, and the Legislature to
encourage the development of sustainable communities and
provide local governments and regional agencies with data to
assist in planning sustainable communities.
The state vehicle registration fee is $34, plus a $22
surcharge for additional personnel for the California Highway
Patrol. Local agencies are also authorized to impose separate
surcharges for a variety of specific programs ranging from
vehicle theft prevention to air quality programs.
2)Rationale . This bill is sponsored by the California
Association of Councils of Governments (CALCOG) for the
purpose of providing a permanent funding source for the
regional and local planning required to implement SB 375.
CALCOG asserts that "funding and coordination are necessary
to enable regional and local governments to successfully plan
for implementation of SB 375, which not only addresses
greenhouse gas issues, but calls for a more efficient land use
pattern which will reduce traffic congestion, support
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affordable housing, and make California's urban regions a more
attractive location for economic development."
3)Opponents of the bill raise a variety of concerns about the
funding mechanism in the bill. Some cities argue that, since
SB 375 is a statewide requirement, the funding source should
be levied at the state level. Other concerns are that it is
inappropriate to levy another registration fee surcharge
during the current economic downturn and that such fees should
be subject to voter approval.
4)Other issues. The 5% allocation of local fees to PAAC could be
excessive. If all local agencies approved the fee, the annual
revenues to PAAC could be $3 million.
5)Related legislation . SB 205 (Hancock), also in this committee,
allows county transportation planning agencies to place a
majority vote measure on the ballot to impose an annual local
vehicle registration fee of up to $10 for transportation
related purposes.
Analysis Prepared by : Brad Williams / APPR. / (916) 319-2081