BILL ANALYSIS Ó AB 61 Page 1 Date of Hearing: May 8, 2013 ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT K.H. "Katcho" Achadjian, Chair AB 61 (Gatto) - As Introduced: January 7, 2013 SUBJECT : Parking: parking meters. SUMMARY : Prohibits, until January 1, 2017, a local authority, by ordinance or resolution, from prohibiting or restricting the parking of vehicles in a space that is regulated by an inoperable parking meter or inoperable parking payment center, and makes conforming and technical changes. EXISTING LAW : 1)Allows local authorities to establish parking meter zones and to fix the parking fee for such zones by ordinance. 2)Allows, except as provided below, a vehicle to park, for up to the posted time limit, in any parking space that is subject to an inoperable parking meter or an inoperable parking payment center. 3)Allows local authorities, by ordinance or resolution, to prohibit or restrict the parking of vehicles at inoperable parking meters or inoperable parking payment centers. 4)Provides that no ordinance or resolution adopted by a local authority pursuant to the above provision shall become effective until signs or markings giving adequate notice of the restriction or prohibition on parking have been placed at parking locations, parking meters, or parking payment centers. 5)Defines "inoperable parking meter" to mean a meter located next to and designated for an individual parking space, which has become inoperable and cannot accept payment in any form or cannot register that a payment in any form has been made. 6)Defines "inoperable parking payment center" to mean an electronic parking meter or pay station serving one or more parking spaces that is closest to the space where a person has parked and that cannot accept payment in any form, cannot register that a payment in any form has been made, or cannot issue a receipt that is required to be displayed in a AB 61 Page 2 conspicuous location on or in the vehicle. FISCAL EFFECT : None COMMENTS : 1)This bill prohibits local authorities from adopting ordinances or resolutions that prohibit or restrict parking in a space regulated by an inoperable parking meter or inoperable parking payment center. This prohibition would be in effect until January 1, 2017. This bill is sponsored by the author. 2)SB 1388 (DeSaulnier), Chapter 70, Statutes of 2012, established a general rule that a vehicle owner may park without penalty in any parking space where the parking meter or parking payment center is inoperable for up to the posted time limit, but allowed a city or a county to adopt a different rule if it provides adequate notice of the rule at the parking locations, or the parking meter or payment kiosk. In response to SB 1388, the League of California Cities surveyed its members on their practices and reported the following results: many small cities do not have parking meters at all; in cities that do have meters, some ticket for parking at a broken meter, and some do not; and, among cities that ticket at a broken meter, most will dismiss the ticket unless there is some kind of pattern that indicates mischief. 3)According to the author's office, "Last year, the California Legislature unanimously passed SB 1388 (DeSaulnier), which allowed parking at spaces controlled by inoperable parking meters or pay stations for up to the maximum posted time limit if no local ordinance had been adopted to prohibit it. Though the law was intended to provide relief to motorists who found themselves ticketed through no fault of their own due to a broken meter, some cities have taken advantage of a loophole in the law that allows local governments to continue to ban parking in these spaces so long as there are signs posted to alert the public. "In wake of last year's measure, the City of Los Angeles recently passed an ordinance that took advantage of this loophole and upheld the city's policy of ticketing drivers who park in spaces with broken parking meters. A recent investigation by the NBC affiliate in Los Angeles found more AB 61 Page 3 than 17,000 parking tickets were issued in a single year for meters that were reported as malfunctioning in Los Angeles alone, costing motorists untold amounts in fines for circumstances beyond their control." 4)While current law generally allows motorists to park at an inoperable meter or kiosk, it also allows local jurisdictions the flexibility to adopt their own policies, so long as adequate notice is provided to the public via signs or markings at the parking location. This bill departs from this policy for a three-year period, after which current law would resume unless the sunset is extended or removed. 5)According to a July 5, 2012, article in the Los Angeles Times, the City of Los Angeles issues 2.5 million parking citations every year. Last year, the city increased fines for the sixth time in seven years, which is expected to generate an extra $8.4 million for the city's general fund. An editorial published on February 15, 2013, in the Los Angeles Times urged local action on the issue, noting the adverse impact of the fines on low-income individuals and those who live in neighborhoods with scant street or garage parking. The editorial reported that parking tickets generate $150 million in annual revenues for the city. The February 15 editorial also noted irregularities with the private company, Xerox State and Local Solutions, that operates the city's Parking Violations Bureau, stating, "Since Xerox took over, a group of people in the city says the company has been trying to keep more parking revenue by stonewalling attempts to fight tickets?(one individual) filed a class-action lawsuit in January, claiming Xerox doesn't really consider their cases but just sends form letters stating that their appeals have been rejected. Then, when motorists try to appeal to the Department of Transportation, Xerox slaps them with late payment fees and penalties. "The city's data on tickets seem to back up (the class-action litigant's) claim that Xerox is rejecting too many appeals. Last year, the city dismissed thousands of tickets after Xerox had rejected the drivers' appeal - vindicating the small percentage of intrepid souls who managed to bring their case to City Hall." 6)The Automobile Club of Southern California, in support, states AB 61 Page 4 that "several cities, including Los Angeles, have adopted ordinances prohibiting the parking at inoperable parking meters. This can hurt businesses, which rely on those spaces being available to their customers. It also hurts motorists that rely on metered parking and seems contrary to the purpose of metered parking, which is to reasonably allocate a scarce resource (parking) so that it benefits many users. We also note that the newer multi-payment method meters evidently break less often and report problems electronically to the city, which should allow city officials to quickly fix them. Finally, we think it is in the best financial interests of the city to fix meters quickly. A prohibition on parking does not further any of these goals." Consumers for Auto Reliability and Safety, in support, also note that cities "may have a perverse incentive not to repair (meters and payment centers) in a timely fashion, as they may collect more for parking tickets than for parking fees." 7)The City of Sacramento, in opposition, states that "jurisdictions across the state have enacted ordinances related to parking meters, and many are specific to broken parking meters. Last year, cities were pleased to work with the author and sponsors of SB 1388?to clarify that drivers are allowed to park at a broken parking meter unless a local ordinance provides a different policy. In order to avoid additional confusion, cities agreed to post any local ordinance that prohibits or restricts parking at a broken meter. "Cities use parking meters to facilitate parking management, promote local businesses, and reduce congestion and pollution. But meters can be a magnet for vandalism. Several cities reported problems with intentionally jamming parking meters in high traffic areas, demonstrating a need for enough flexibility in the statewide policy to address local problems. Unlike AB 61, SB 1388 struck an appropriate balance between a statewide policy and local control. There is no demonstrated need to reverse the agreement made just a year ago." 8)Support arguments : Supporters argue that this measure protects individuals from cities and counties that are overzealous and unfair in their parking enforcement. Opposition arguments : Opponents argue that this bill follows AB 61 Page 5 too closely on legislation specifically allowing local jurisdictions to adopt their own policies governing parking at broken or inoperative meters or pay stations, and that these decisions should remain in the hands of local government decision makers. REGISTERED SUPPORT / OPPOSITION : Support Atwater Village Chamber of Commerce Automobile Club of Southern California Consumers for Auto Reliability and Safety Opposition California Public Parking Association City of Sacramento City of San Luis Obispo Analysis Prepared by : Angela Mapp / L. GOV. / (916) 319-3958