BILL ANALYSIS
SB 406
Page 1
SENATE THIRD READING
SB 406 (DeSaulnier)
As Amended September 1, 2009
Majority vote
SENATE VOTE :21-16
LOCAL GOVERNMENT 5-2 TRANSPORTATION 8-6
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|Ayes:|Caballero, Arambula, |Ayes:|Eng, Blumenfield, |
| |Davis, Krekorian, Skinner | |Buchanan, Furutani, |
| | | |Bonnie Lowenthal, |
| | | |John A. Perez, Solorio, |
| | | |Torlakson |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Knight, Duvall |Nays:|Jeffries, Conway, |
| | | |Galgiani, Garrick, |
| | | |Miller, Niello |
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APPROPRIATIONS 12-5
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|Ayes:|De Leon, Ammiano, | | |
| |Charles Calderon, Coto, | | |
| |Davis, Fuentes, Hall, | | |
| |John A. Perez, Skinner, | | |
| |Solorio, Torlakson, Hill | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Conway, Harkey, Miller, | | |
| |Nielsen, Audra Strickland | | |
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SUMMARY : Authorizes an additional fee of $1 or $2 on vehicle
registrations through an existing fee mechanism, and proposes
new duties, membership, and funding for the Strategic Growth
Council (SGC) and the Planning Advisory and Assistance Council
(PAAC). Specifically, this bill :
1)Adds to the membership of PAAC, the following members:
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a) Seven representatives of regional planning
organizations;
b) One member of the State Air Resources Board (ARB);
c) One member of the California Transportation Commission
(CTC);
d) One member of the State Energy Resources Conservation
and Development Commission;
e) One member appointed by the Speaker of the Assembly;
and,
f) One member appointed by the Senate Committee on Rules.
2)Provides that representatives on PAAC from regional planning
organizations shall be selected by the Director of the
Governor's Office of Planning and Research (OPR) as specified
from:
a) Nominees submitted by the regional planning organization
and from the governing body of each of the following:
i) The Southern California Association of Governments
(SCAG);
ii) A member of the governing body for both he
Metropolitan Transportation Commission (MTC) and the
Association of Bay Area Governments (ABAG);
iii) The San Diego Association of Governments (SANDAG);
iv) The Sacramento Area Council of Governments (SACOG);
and,
v) The San Joaquin Valley Regional Policy Council
(SJVRPC).
b) Nominees submitted by the California Association of
Councils of Governments (CALCOG) from:
i) A metropolitan planning organization (MPO) or
council of governments (COG) that is not identified in 2)
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a) above; and,
ii) A regional transportation planning agency that is
neither an MPO nor a COG.
3)Adds new duties to the responsibility of PAAC, including:
a) Working with SGC, regional agencies, and with cities and
counties to facilitate the implementation of regional
blueprint plans;
b) Developing and proposing recommendations to SGC, the
Department of General Services (DGS), the State Allocation
Board, the Department of Housing and Community Development
(HCD), the Department of Transportation (Caltrans), CTC,
and any other state agencies that affect land use, housing,
or transportation in order to facilitate coordination
between regional blueprint plans and state growth and
infrastructure funding plans and programs that facilitate
the implementation of regional blueprint plans;
c) Receiving reports, including, but not limited to, a copy
of the five-year infrastructure plan; and,
d) Reporting to the Legislature on regional performance
measures, evaluating the progress of each region of the
state in improving results for residents in employment,
environmental protection, education, housing, mobility, and
other criteria as determined by PAAC.
4)Specifies that PAAC shall provide the Legislature with updates
to the report specified in #3d above periodically, as the PAAC
determines is required.
5)Provides that PAAC shall commence the functions enumerated in
3) and 4) above when sufficient funding, as determined by
PAAC, exists from revenue transmitted to PAAC by MPOs, COGs,
or county transportation commissions and subregional COGs
jointly preparing subregional sustainable communities
strategies (SCS).
6)Allows a local air quality management district (AQMD), upon
request by an MPO, a COG, or a county transportation
commission and a subregional COG jointly preparing a
subregional SCS, to request that the DMV increase certain fees
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on motor vehicle registration by $1 or $2, on a vehicle
registered to an owner with an address in its jurisdiction.
7)Provides that the DMV shall transmit the additional fee
revenue to the local AQMD quarterly, after deducting its cost
incurred in administering the additional fee from that
revenue.
8)Provides that the local AQMD shall transfer a portion of the
revenue after deducting its own reasonable administrative
costs not to exceed 2% of the total additional fee revenue, to
the MPO, COG, or county transportation commission and
subregional COG jointly preparing a subregional SCS that
requested that the local AQMD initiate the fee increase.
9)Provides, in order to impose the additional fee, that the MPO,
COG, or county transportation commission and subregional COG
jointly preparing a subregional SCS, must adopt a resolution
authorizing the additional fee amount.
10)Provides that a resolution by the MTC or ABAG to authorize
the additional fee amount must be jointly adopted by
resolution of both entities, and the revenue from the
additional fee amount shall be divided in accordance with an
agreement between these two entities.
11)Provides that a resolution by a county transportation
commission or a subregional COG within the jurisdiction of the
SCAG shall be jointly adopted by resolution of both entities,
and the revenue from the additional fee amount shall be
divided in accordance with an agreement between the two
entities.
12)Provides that the additional fee shall be applied to an
original vehicle registration occurring on or after six months
following the adoption of the resolution by the MPO, COG, or a
county transportation commission and a subregional COG jointly
preparing an SCS, and to a renewal of registration with an
expiration date on or after that six-month period.
13)Provides that all revenue received by the authorization of an
additional fee amount shall be used solely to develop a SCS or
a regional blueprint plan to identify land use strategies to
reduce the use of motor vehicles in its jurisdiction and carry
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out applicable transportation- related activities necessary to
implement the plan, and thereby achieve the greenhouse gas
emission reduction target as specified in Government Code
Section 65080, and to implement a SCS or regional blueprint
plan that achieves the greenhouse gas emission reduction
target.
14)Provides that if the additional fee 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,
cities and counties, and congestion management agencies for
planning and projects related to the implementation of a
regional blueprint plan.
15)Provides that the entities shall transmit 5% of all revenue
received from the first $1 of the additional fee imposed to
the PAAC for the performance of the new duties of the PAAC, as
specified.
16)Allows the MPO, the COG, or a county transportation
commission and a subregional COG jointly preparing a
subregional SCS, pursuant to an agreement with the local AQMD
that has responsibility over the jurisdiction, to divide
revenues received from the imposition of an additional fee
jointly with the local AQMD.
17)Provides that all revenue received by the local AQMD shall be
used to assist local and regional governments in reducing
greenhouse gas (GHG) emissions, including, but not limited to,
all of the following:
a) Assistance in the development of a subregional SCS;
b) Assistance in the development of local GHG emissions
inventories;
c) Assistance in the development of GHG emission reduction
strategies in general plans;
d) Development and assistance of California Environmental
Quality Act (CEQA) guidelines and review of GHG emissions
in CEQA analyses;
e) Consultation and development of local climate action
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plans; and,
f) Project specific consultation work to reduce GHG
emissions from local transportation and land use decisions.
18)Adds, to several Health and Safety Code sections that allow
for the imposition of fees on motor vehicle registration,
language that specifies that if a local AQMD requests an
increase in the fee for the purpose of transferring the
additional revenue generated to an MPO, a COG, or a county
transportation commission and a subregional COG jointly
preparing an SCS, then that district shall not be subject to
the conditions of the fee authorization contained in that code
section.
19)Provides that an SCS and an alternative planning strategy
(APS) shall both be considered to be a regional blueprint.
20)Adds a new duty for SGC to consult with and coordinate its
recommendations with PAAC.
21)Provides that the DMV, if requested by a local AQMD, shall
collect an additional fee of $1 or $2 and transmit that
additional fee revenue to the local AQMD quarterly, after
deducting its costs incurred in administering the addition fee
from that revenue.
22)Requires the MPO, the COG, or the county transportation
commission and the subregional COG jointly preparing a
subregional SCS, to pay for the costs identified by DMV to
administer the additional fee; and requires those entities and
the local AQMD to contract with the DMV to pay for the initial
setup and programming costs identified by DMV.
23)Requires the initial setup and programming costs of the DMV
to be reimbursed by the implementing entity from the
additional fee revenues collected.
24)Specifies, for any agency that is not the first agency to
authorize the additional fee, that the DMV shall require an
additional amount to reflect each agency's per capita share of
the setup costs if the costs for the first agency are
substantially higher than those for subsequent agencies; and
specifies that the additional fee amounts must be paid to the
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first agency establishing the additional fee.
25)Makes other findings and declarations, and expresses the
intent of the Legislature to update the duties and composition
of the PAAC to assist in the state's land use planning
processes by providing funding to support the development and
implementation for regional blueprints and related planning.
EXISTING LAW :
1)Provides for the creation of PAAC under OPR, and specifies
that the membership includes:
a) Three city representatives;
b) Three county representatives;
c) One representative of each district (provided that at
least two of the district representatives are
representatives of each metropolitan areawide planning
organizations and that at least one of the district
representatives is a representative of a nonmetropolitan
planning organization; and,
d) One representative of Indian tribes and bands which have
reservations or rancherias within California.
2)Provides for the selection process of PAAC members, provides
for the length of term for PAAC members, specifies when and
how PAAC will meet, and specifies the compensation of PAAC
members.
3)Specifies that PAAC shall provide advice, and in particular:
a) Assist in the preparation of the state long-range goals
and policies;
b) Evaluate the planning functions of the various state
agencies involved in planning; and,
c) Make appropriate decisions and provide such advice and
assistance as may be required by federal statute or
regulation in connection with any federal program
administered by OPR.
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4)Provides for the creation of SGC, and provides that SGC shall:
a) Identify and review activities and funding programs of
member state agencies that may be coordinated to improve
air and water quality, improve natural resource protection,
increase the availability of affordable housing, improve
transportation, meet the goals of the California Global
Warming Solutions Act of 2006, encourage sustainable land
use planning, and revitalize urban and community centers in
a sustainable manner;
b) Recommend policies and investment strategies and
priorities to the Governor, the Legislature, and to
appropriate state agencies to encourage the development of
sustainable communities;
c) Provide, fund, and distribute data and information to
local governments and regional agencies that will assist in
developing and planning sustainable communities;
d) Manage and award grants and loans to support the
planning and development of sustainable communities; and,
e) Develop guidelines for awarding financial assistance and
eligibility, and develop criteria for determining the
amount of financial assistance.
5)Establishes a basic vehicle registration fee of $34, plus a
$22 surcharge for additional personnel for the California
Highway Patrol, and authorizes local agencies to impose
separate vehicle registration fee surcharges in their
respective jurisdictions for a variety of special programs,
including:
a) $1 for service authorities for freeway emergencies;
b) $1 for deterring and prosecuting vehicle theft;
c) Up to $7 for air quality programs;
d) $1 for removing abandoned vehicles; and,
e) $1 for fingerprint identification programs.
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6)Specifies that the DMV, if requested by the Sacramento
Metropolitan AQMD, shall impose and collect a surcharge on the
vehicle registration fees for every motor vehicle registered,
not to exceed $6, for air quality-related programs.
7)Specifies that the DMV, if requested by the a county air
pollution control district, AQMD, or unified or regional air
pollution control district, shall collect fees upon the
registration or renewal of registration of any motor vehicle
in the district, and distribute the revenues collected, less
the DMV's fees, to the districts to be used for activities
related to the California Clean Air Act of 1988.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)One time programming/startup costs to DMV of $150,000. Minor
ongoing costs to administer the program. One time costs
reimbursed from the local agency first approving the fee.
Subsequent agencies approving the fee would reimburse the
first agency for start up costs on a pro-rata basis. Ongoing
costs by DMV and local air boards for levying and distributing
the fee would be 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, $1.5 million annually would be transferred to
PAAC to fund its expanded operations.
COMMENTS : Existing law establishes OPR within the Governor's
office as the state's comprehensive planning agency. PAAC
within OPR is responsible for various land-use planning related
activities, including development of the State Environmental
Goals and Policies Report (EGPR). The EGPR, a 20- to 30- year
look ahead at state growth and development, must be consistent
with the state's planning priorities. The Director of OPR
appoints the membership of PAAC, which under current law 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.
SB 375 (Steinberg), Chapter 728, Statutes of 2008, required each
MPO to include within its regional transportation plan an SCS
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designed to achieve specified targets for GHG emissions
reduction. If SCS does not achieve the reduction target, the
MPO must prepare an alternative planning strategy (APS). In
some regions, cities and counties have jointly formed councils
of government (COGs) to implement regional planning activities.
COGs generally serve as federally recognized MPOs for
transportation planning purposes, although some COGs, such as
the San Francisco Bay Area, have a separate MPO for
transportation planning.
SB 732 (Steinberg), Chapter 729, Statutes of 2008, created the
SGC, consisting of the Director of OPR, the Secretary of the
Natural Resources Agency, the Secretary of the Environmental
Protection Agency, the Secretary of the Business, Transportation
and Housing Agency, the Secretary of the California Health and
Human Services Agency, and a public member. The SGC 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
SGC is charged with awarding and managing grants for the $90
million pot contained in Proposition 84 - "The Safe Drinking
Water, Water Quality and Supply, Flood Control, River and
Coastal Protection Bond Act of 2006" that was specifically set
aside for "planning grants and incentives." Additionally, the
SGC has the responsibility of commenting on OPR's EGPR and the
state's five-year infrastructure plan. AB 1473 (Hertzberg),
Chapter 606, Statutes of 1999, required the Governor, beginning
in 2002, to submit annually a five-year proposed capital
improvement plan to the Legislature that includes proposed
capital improvement projects and their proposed funding sources.
According to the sponsor, the California Association of Councils
of Governments (CALCOG), this bill "provides a permanent funding
source for the regional and local planning required to implement
SB 375, and also creates a council with local officials to
advise the Strategic Growth Council and thereby, coordinates
state investments with local and regional SB 375 implementation
strategies." Further, "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 affordable
housing, and make California's urban regions a more attractive
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location for economic development."
This bill would authorize an MPO, a COG, or a county
transportation commission and a subregional COG jointly
preparing a subregional SCS, to authorize an additional fee
amount on a motor vehicle registered within its jurisdiction,
upon adoption of a resolution authorizing the surcharge.
Amendments taken in the Assembly Appropriations Committee would
allow the fee amount of $1 or $2 to be added to an existing fee
imposed by air districts and collected by the DMV for
air-quality related programs and Clean Air Act-related programs.
All revenues derived from the new fee authorized by an MPO, a
COG, or a county transportation commission and a subregional COG
jointly preparing a subregional SCS would be used solely to
develop and implement an SCS or a regional blueprint plan that
would help achieve greenhouse gas emission reduction targets.
The bill specifies that in jurisdictions with a population
exceeding 300,000 that impose the full $2 fee, half of the
revenues would be used to provide grants to cities, counties,
and congestion management agencies within the region for
planning and projects related to the implementation of a
regional blueprint plan, including an SCS or APS. The MPO, COG,
or county transportation commission could also, by agreement,
divide revenues received from the surcharge with the local AQMD.
Revenues received by the air districts pursuant to a joint
agreement would be used to assist local and regional governments
in reducing GHG emissions. Five percent of all revenues
collected, however, would be transferred to PAAC to perform the
new duties imposed by this bill. DMV would be tasked with
collecting the additional fee amount and remitting the revenues
to the air districts who would then distribute the fee to the
MPO, COG, or county transportation commission and subregional
COG jointly preparing a subregional SCS.
Additionally, this bill adds new members to PAAC, and gives PAAC
the responsibility to work with SGC and other regional agencies
to facilitate the implementation of regional blueprint plans,
and requires PAAC to report back to the Legislature, in
consultation and coordination with SGC.
A similar measure, AB 2870 (DeSaulnier) from the 2007-08
session, passed out of the Assembly Local Government Committee
but ultimately failed passed in the Senate Local Government
Committee. That bill would have created the California
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Blueprint Implementation Council, which would have been charged
with the implementation of regional blueprint projects.
Previous versions of AB 2870 would have allowed for the
imposition of a surcharge on motor vehicle registration, in
order for the MPO or COG to fund the development and
implementation of a regional blueprint plan to identify land use
strategies to reduce motor vehicle use and GHG emissions. This
bill builds upon the provisions contained in various versions of
AB 2870, but instead, focuses on a mechanism with which to fund
the planning that is required under SB 375, and requires
coordination of various agencies on the implementation of SB
375.
Unlike other states, California does not invest state general
fund monies to support local comprehensive planning. Cities and
counties must rely on their own budgets, augmented by local
fees. COGs rely on a mix of federal funds and members' dues.
This bill allows regional agencies to raise the revenues they
need by imposing an additional fee amount on an existing fee
related to air quality. Californians already pay several
registration surcharges for freeway emergencies, abandoned cars,
vehicle theft programs, and some regional air quality efforts.
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.
For clarification purposes, the Legislature may wish to add
cross-references in several sections of the bill that amend
existing Health and Safety Code provisions. The
cross-references are needed to ensure that the new language in
those sections is tied to another section that this bill amends
- Government Code 65083 - which contains language specifying
that the MPO, COG, or a county transportation commission and a
subregional COG jointly preparing a SCS must adopt a resolution
authorizing the additional fee amount.
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
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319-3958
FN: 0002778