BILL ANALYSIS Ó AB 2414 Page 1 Date of Hearing: April 29, 2014 ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER PROTECTION Susan A. Bonilla, Chair AB 2414 (Ting) - As Introduced: February 21, 2014 SUBJECT : Parking facilities: electric vehicle charging. SUMMARY : Specifies that the use of electricity by state government and other government entities, state officers and employees, or other persons for the charging of an electric vehicle in a department maintained or joint use motor vehicle parking facility is not a gift of public funds prohibited by the California Constitution. EXISTING LAW 1)Generally prohibits, under the California Constitution, the Legislature from making, or authorizing the making of, gifts of public funds unless it determines that the funds serve a public purpose. (California Constitution Article XVI Section 6) 2)Authorizes the Department of General Services (DGS) to acquire real property, as specified, and to construct, operate, and maintain motor vehicle parking facilities for state officers and employees, or other persons, as specified. (Government Code Section (GC) 14678) 3)Authorizes DGS to enter into arrangements with other public and state agencies for joint use of motor vehicle parking facilities if the benefit to be derived by the state is commensurate with its participation; prescribe the terms and condition of this parking, including the payment of parking fees in any amounts and under any circumstances as determined by DGS; and establish various rates for parking fees based on location, parking facility, or number of riders in each vehicle. (GC 14678) 4)Provides that revenues received by DGS for these motor vehicle parking facilities as designated by the Director of DGS, and under the jurisdiction of any other state agency that has entered into an agreement with DGS for the payment of revenues, be deposited into the General fund and are AB 2414 Page 2 continuously appropriated to DGS for the construction, operation, and maintenance of motor vehicle parking facilities, as specified. (GC 14678) FISCAL EFFECT : None. This bill is keyed non-fiscal by the Legislative Counsel. COMMENTS : 1)Purpose of this bill . This bill clarifies that the use of electricity by officers and employees of any state or government entity or by members of the public for the charging of an electric vehicle in a DGS-managed or joint use parking facility is not an illegal gift of public funds. The aim of this bill is to encourage the state development and use of electric charging stations. This bill is author-sponsored. 2)Author's statement . According to the author, "[This bill] ensures that electric vehicle charging stations built in parking areas developed by state government entities are not considered gifts of public funds. Across the state, government entities are actively working to establish robust electric vehicle charging systems. While electric vehicle charging stations provide benefits to individuals, they also serve a public purpose. Electric vehicle charging stations in public parking areas increase the availability and awareness of electric vehicle charging, which serve as an important part of replacing [greenhouse gas]-emitting cars and trucks with clean electric vehicles. "This bill ensures government entities can spend more time expanding the installation of electric vehicle charging stations without [worrying about] violating provisions of the gift of public funds, such as not accounting for every incidental cost related to providing electricity and charging stations." 3)Prohibition on public gifts . Section 6 of Article XVI of the California Constitution prohibits the state and its subdivisions from making, or authorizing the making, "of any gift, of any public money or thing of value to any individual, municipal or other corporation?." The primary question to be considered when determining whether an appropriation of public funds is considered a gift is whether the funds are used for a AB 2414 Page 3 private or public purpose. If they are used for a public purpose, they are not a gift within the meaning of this constitutional prohibition, even if there may be incidental benefit to private persons. (County of Alameda v. Janssen (1940) 16 Cal.2d 276) Although a court may be unlikely to determine that the provision of electricity through electric charging stations is an unconstitutional gift of public funds that is used for a private purpose, this bill does not prohibit a court from making such a determination because a statute cannot supersede a constitutional provision. As a result, this bill merely seeks to clarify that providing electricity without charge through electric charging stations in state parking facilities is viewed as having a public purpose, and is therefore not a gift of public funds in violation of the California Constitution. 4)Arguments in support . According to the California Municipal Utilities Association, "[Our] members currently help facilitate the implementation of electric vehicle charging infrastructure. Many of these charging stations are located at state and locally owned facilities. Public awareness of these facilities often starts with public promotion and usage by public officials and state employees. In furtherance of state policies promoting the transition to an electric vehicle economy, [?] any potential obstacles that may limit state employees and other public officials from accessing electric vehicle charging facilities should be removed." The Southern California Public Power Authority (SCPPA) also writes in support, "Our member agencies are actively working to establish a robust electric vehicle charging system throughout California as an important step in replacing [greenhouse gas]-emitting cars and trucks with clean electric vehicles. Ensuring we don't run afoul of the gift of public funds provisions in existing statute while working to move this important infrastructure forward for our ratepayers and California as a whole is critical to the success of an overall [electric vehicle] deployment." 5)Previous legislation . SB 454 (Corbett), Chapter 418, Statutes of 2013, created the Electric Vehicle Charging Stations Open Access Act, which prohibited the charging of a subscription fee of persons desiring to use an electric vehicle charging AB 2414 Page 4 station, prohibited a requirement for persons to obtain membership in any club, association, or organization as a condition of using the station, except as specified, and required the total actual charges for the use of an electric vehicle charging station to be disclosed to the public at the point of sale. AB 1092 (Levine), Chapter 410, Statutes of 2013, required the California Building Standards Commission (CBSC) to adopt, approve, codify, and publish mandatory building standards for the installation of future electric vehicle charging infrastructure for parking spaces in multifamily dwellings and nonresidential development. AB 2644 (Butler) of 2012 would have required the CBSC to adopt building standards for the construction, installation, and alteration of electric vehicle charging stations for parking spaces in single-family residential real property. That bill was held in the Assembly Housing and Community Development Committee. REGISTERED SUPPORT / OPPOSITION : Support California Municipal Utilities Association Southern California Public Power Authority (SCPPA) Opposition None on file. Analysis Prepared by : Eunie Linden / B.,P. & C.P. / (916) 319-3301