Amended in Senate April 21, 2014

Senate Bill No. 1077

Introduced by Senator DeSaulnier

February 19, 2014

An act to add and repeal Chapter 7 (commencing with Section 3090) of Division 2 of, and to repeal Chapter 7 (commencing with former Section 3100) of Division 2 of, the Vehicle Code, relating to vehicles.

LEGISLATIVE COUNSEL’S DIGEST

SB 1077, as amended, DeSaulnier. Vehicles: begin delete vehicle-miles-traveled charges. end delete begin insert mileage-based fee pilot program. end insert

Existing law establishes the begin delete Department of Motor Vehicles and provides for its general powers and duties, including, among other things, the registration of vehicles, the licensing of drivers, and the regulation of vehicles generally. end delete begin insert Transportation Agency, which consists of the Department of the California Highway Patrol, the California Transportation Commission, the Department of Motor Vehicles, the Department of Transportation, the High-Speed Rail Authority, and the Board of Pilot Commissioners for the Bays of San Francisco, San Pablo, and Suisun. end insert

This bill would require the begin delete Department of Motor Vehicles end delete begin insert agency end insert to begin delete develop and implement, end delete begin insert develop, end insert by begin delete July 1, 2015, end delete begin insert January 1, 2016, end insert a pilot program designed to assess specified issues related to implementing a begin delete vehicle-miles-traveled end delete begin insert mileage-based end insert fee begin insert (MBF) end insert in California begin insert to replace the state’s existing fuel excise tax end insert . begin insert The bill would require the agency, at a minimum, to assess certain issues related to implementing an MBF, including, among others, different methods for calculating mileage and collecting road use information, processes for managing, storing, transmitting, and destroying data to protect the integrity of the data and ensure drivers’ privacy, and costs associated with the implementation and operation of the MBF system, as specified. end insert The bill would also require the department to prepare and submit a specified report of its findings to the policy and fiscal committees of the Legislature no later than June 30, begin delete 2016 end delete begin insert 2017 end insert . begin insert The bill would require the report to include, among other things, recommendations on how best to implement an MBF, as specified, and recommendations regarding public and private agency access to MBF data that ensures privacy rights as protected by the California Constitution. end insert The bill would begin delete provide that end delete begin insert repeal end insert these provisions begin delete would be repealed end delete on January 1, 2018.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Chapter 7 (commencing with Section 3090) is
added to Division 2 of the Vehicle Code, to read:

 

Chapter  7. begin delete Vehicle-Miles-Traveled end delete begin insert Mileage-Based end insert Fee
Pilot Program

 

3090.  

(a) The begin delete department end delete begin insert Transportation Agency end insert shall begin delete develop
and implement, end delete begin insert develop, end insert by begin delete July 1, 2015, end delete begin insert January 1, 2016, end insert a pilot
program designed begin delete to assess the following issues related to
implementing a vehicle-miles-traveled (VMT) fee in California end delete
begin insert to explore various methods for using a mileage-based fee (MBF)
to replace the state’s existing fuel excise tax. The agency, at a
minimum, shall assess the following issues related to implementing
an MBF in California end insert :

(1) Different methods for calculating mileage begin insert and collecting
road usage information that include alternatives to using electronic
vehicle location data. Any methods considered shall collect the
minimum amount of personal information, including location
tracking information, necessary to accomplish the goals of the
MBF end insert .

(2)  begin delete Processes for transmitting end delete begin insert For methods involving vehicle
location data, processes for managing, storing, transmitting, and
destroying end insert data to protect the integrity of the data and ensure
begin delete drivers’ end delete begin insert the end insert privacy begin insert of drivers end insert .

(3) Types of equipment that may be required of the state and of
drivers in order to implement begin delete a VMT fee, end delete begin insert an MBF, end insert including a
discussion of the advantages and disadvantages of the begin delete equipment end delete
begin insert equipment, the privacy implications and considerations of the
equipment, end insert and contingencies in the event of equipment failure.

begin insert

(4) Estimated costs, both public and private, associated with
the initial implementation and ongoing operation of an MBF
system.

end insert begin insert

(5) Processes and security measures necessary to minimize
fraud and tax evasion rates.

end insert begin insert

(6) The appropriate government entities to collect data and
handle revenue collection, and the frequency at which charges
should be billed or collected.

end insert begin insert

(b) In developing this pilot program, the agency shall consult
with the Department of Motor Vehicles, the Department of
Transportation, the Institute of Transportation Studies at the
University of California, or any other entity identified by the
agency that has expertise in automotive technology, revenue
collection, and protecting the public’s private information.

end insert begin delete

(b)

end delete

begin insert (c) end insert  The begin delete department end delete begin insert agency end insert shall prepare and submit a report of
its findings to the appropriate policy and fiscal committees of the
Legislature no later than June 30, begin delete 2016 end delete begin insert 2017 end insert . The report shall
include, but not be limited to, all of the following elements:

(1) Recommendations regarding how to best implement begin delete a VMT
fee end delete begin insert an MBF end insert in a manner that minimizes confusion and
inconvenience to California’s drivers while also begin delete ensuring end delete begin insert providing
safeguards that ensure end insert their privacy.

begin insert

(2) Recommendations regarding public and private agency
access, including law enforcement access, to the data collected
and stored for purposes of the MBF that ensures individual privacy
rights as protected by Section 1 of Article 1 of the California
Constitution.

end insert begin delete

(2)

end delete

begin insert (3) end insert  Given the technological and institutional demands associated
with implementing begin delete a VMT fee, end delete begin insert an MBF, end insert a discussion of different
processes that may be used to transition from the fuel tax to begin delete a VMT
fee end delete begin insert an MBF end insert over time.

begin delete

(3)

end delete

begin insert (4) end insert  A discussion of issues the Legislature may wish to consider
when evaluating whether and how to implement begin delete a VMT fee end delete begin insert an
MBF, including the potential impact of new, rapidly changing
technology, such as connected cars, which could provide new and
possibly more efficient options for collecting mileage data while
protecting the privacy of drivers end insert .

begin insert

(5) With the transition from a fuel tax to an MBF, a discussion
of protections and safeguards that can be put in place to ensure
that the MBF has at least the same level of protection from
diversion and the same eligible uses as the fuel taxes being
replaced, including consideration of voter approval.

end insert begin delete

(c)

end delete

begin insert (d) end insert  This chapter shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2018, deletes or extends that date.

SEC. 2.  

Chapter 7 (commencing with former Section 3100) of
Division 2 of the Vehicle Code is repealed.