BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2414| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 2414 Author: Ting (D) Amended: As introduced Vote: 21 SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 8-2, 6/24/14 AYES: Correa, Cannella, De León, Galgiani, Hernandez, Lieu, Padilla, Torres NOES: Berryhill, Vidak NO VOTE RECORDED: Vacancy ASSEMBLY FLOOR : 52-20, 5/8/14 - See last page for vote SUBJECT : Parking facilities: electric vehicle charging SOURCE : Author DIGEST : This bill 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. ANALYSIS : Existing law: 1. Prohibits the Legislature from making, or authorizing the making of, gifts of public funds unless it determines that CONTINUED AB 2414 Page 2 the funds serve a public purpose. 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. 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 establishes various rates for parking fees based on location, parking facility, or number of riders in each vehicle. 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 continuously appropriated to DGS for the construction, operation, and maintenance of motor vehicle parking facilities, as specified. This bill 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. Background 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 AB 2414 Page 3 constitutional prohibition, even if there may be incidental benefit to private persons. 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. Comments 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 a robust electric vehicle charging system. 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." FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 6/24/14) California Electric Transportation Coalition California Municipal Utilities Association Sacramento Electric Vehicle Association Southern California Public Power Authority 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 AB 2414 Page 4 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." ASSEMBLY FLOOR : 52-20, 5/8/14 AYES: Alejo, Ammiano, Atkins, Bloom, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chesbro, Cooley, Dababneh, Daly, Dickinson, Fong, Fox, Frazier, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray, Hall, Roger Hernández, Holden, Jones-Sawyer, Levine, Lowenthal, Medina, Mullin, Muratsuchi, Nazarian, Pan, Perea, Quirk, Quirk-Silva, Rendon, Rodriguez, Salas, Skinner, Stone, Ting, Weber, Wieckowski, Williams, Yamada, John A. Pérez NOES: Achadjian, Allen, Bigelow, Chávez, Conway, Dahle, Donnelly, Beth Gaines, Grove, Hagman, Jones, Linder, Logue, Maienschein, Melendez, Nestande, Olsen, Wagner, Waldron, Wilk NO VOTE RECORDED: Eggman, Gorell, Harkey, Mansoor, Patterson, V. Manuel Pérez, Ridley-Thomas, Vacancy MW:d 6/25/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****