BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2414
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          ASSEMBLY THIRD READING
          AB 2414 (Ting)
          As Introduced  February 21, 2014
          Majority vote 

           BUSINESS & PROFESSIONS          10-4                            
           
           ----------------------------------------------------------------- 
          |Ayes:|Bonilla, Bocanegra,       |     |                          |
          |     |Campos, Dickinson,        |     |                          |
          |     |Eggman, Gordon, Holden,   |     |                          |
          |     |Mullin, Skinner, Ting,    |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Jones, Hagman,            |     |                          |
          |     |Maienschein, Wilk         |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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 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.   
            (Government Code (GC) Section14678)









                                                                  AB 2414
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           FISCAL EFFECT  :  None.  This bill is keyed non-fiscal by the  
          Legislative Counsel. 

           COMMENTS :   

          1)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)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)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 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)  









                                                                  AB 2414
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          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)According to the California Municipal Utilities Association,  
            "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 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." 
             
            No opposition on file.

             
          Analysis Prepared by  :    Eunie Linden / B., P. & C.P. / (916)  
          319-3301 


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                                                                  AB 2414
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