Amended in Assembly June 25, 2014

Amended in Assembly June 16, 2014

Amended in Senate April 21, 2014

Senate BillNo. 1077

Introduced by Senator DeSaulnier

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(Coauthor: Assembly Member Lowenthal)

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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.


SB 1077, as amended, DeSaulnier. Vehicles: mileage-based fee pilot program.

Existing law establishes the 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.

This bill would establish a Mileage-Based Fee (MBF) Task Force within the California Transportation Commission, as specified. The bill would require the task force to study MBF alternatives to the gas tax and to make recommendations to the Department of Transportation and the commission on the design of a pilot program, as specified. The bill would also authorize the task force to make recommendations on the criteria to be used to evaluate the pilot program. The bill would require the task force to consult with specified entities and to consider certain factors in carrying out its duties. The bill would require the Transportation Agency, based on the recommendations of the task force, to develop and implement a pilot program by January 1, 2016, to identify and evaluate issues related to the potential implementation of a MBF program in California. The bill would require the agency to prepare and submit a report of its findings to the task force, the commission, and the appropriate fiscal and policy committees of the Legislature by no later than June 30, 2017, as specified. The bill would also require the commission to include its recommendations regarding the pilot program in its annual report to the Legislature, as specified. The bill would repeal these provisions 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:

P2    1


The Legislature finds and declares all of the

3(a) An efficient transportation system is critical for California’s
4economy and quality of life.

5(b) The revenues currently available for highways and local
6roads are inadequate to preserve and maintain existing
7infrastructure and to provide funds for improvements that would
8reduce congestion and improve service.

9(c) The gas tax is an ineffective mechanism for meeting
10California’s long-term revenue needs for all of the following
11reasons because it will steadily generate less revenue as cars
12become more fuel efficient and alternative sources of fuel are
13identified. By 2030, as much as half of the revenue that could have
14been collected will be lost to fuel efficiency. Additionally, bundling
15fees for roads and highways into the gas tax makes it difficult for
16users to understand the amount they are paying for roads and

18(d) Other states have begun to explore the potential for a
19mileage-based fee to replace traditional gas taxes, including the
20State of Oregon, which established the first permanent road user
21fee program in the nation.

22(e) A mileage-based fee program has the potential to distribute
23the gas tax burden across all vehicles regardless of fuel source and
24to minimize the impact of the current regressive gas tax structure.

P3    1(f) Experience to date in other states across the nation
2demonstrates that mileage-based user fees can be implemented in
3a way that ensures data security and maximum privacy protection
4for drivers.

5(g) It is therefore important that the state begin to explore
6alternative revenue sources that may be implemented in lieu of the
7antiquated gas tax structure now in place.

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8(h) Any exploration of alternative revenue sources shall take
9into account the privacy implications, especially those of location
10data, which need not be personally identifiable to raise serious
11privacy concerns because studies have shown it is easy to

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SEC. 2.  

Chapter 7 (commencing with Section 3090) is added
14to Division 2 of the Vehicle Code, to read:


16Chapter  7. Mileage-Based Fee Pilot Program




(a) The Mileage-Based Fee (MBF) Task Force is hereby
19established within the California Transportation Commission.

20(b) The purpose of the task force is to guide the development
21and evaluation of a pilot program to assess the potential for
22mileage-based revenue collection for California’s roads and
23highways as an alternative to the gas tax system.

24(c) The task force shall consist ofbegin delete 14end deletebegin insert 15end insert members, as follows:

25(1) Two members of the Assembly, appointed by the Speaker
26ofbegin insert theend insert Assembly.

27(2) Two members of the Senate, appointed by the Senate
28Committee on Rules.

29(3) Two members of the commission, appointed by the
30chairperson of the commission.

31(4) begin deleteEight end deletebegin insertNineend insertbegin insert end insertmembers appointed by the Governor. In making
32these appointments, the Governor shall consider individuals who
33are representative of the telecommunications industry, highway
34user groups, the data security and privacy industry,begin delete the
35transportation research community,end delete
begin insert privacy rights advocacy
36organizations, regional transportation agencies,end insert
and national
37research and policymaking bodies, including, but not limited to,
38the Transportation Research Board and the American Association
39of State Highway and Transportation Officials.

P4    1(d) Members of the task force are entitled to compensation and
2expenses as authorized by the commission.

3(e) The Department of Transportation shall provide staff to the
4task force.

5(f) The task force shall study MBF alternatives to the gas tax.
6The task force shall gather public comment on issues and concerns
7related to the pilot program and shall make recommendations to
8the department and the commission on the design of a pilot
9program to test alternative MBF approaches. The task force may
10also make recommendations to the department and the commission
11on the criteria to be used to evaluate the pilot program.

12(g) In studying alternatives to the current gas tax system and
13developing recommendations on the design of a pilot program to
14test alternative MBF approaches pursuant to subdivision (f), the
15task force shall take all of the following into consideration:

16(1) The availability, adaptability, reliability, and security of
17methods that might be used in recording and reporting highway

19(2) The necessity of protecting all personally identifiable
20information used in reporting highway use.

21(3) The ease and cost of recording and reporting highway use.

22(4) The ease and cost of administering the collection of taxes
23and fees as an alternative to the current system of taxing highway
24use through motor vehicle fuel taxes.

25(5) Effective methods of maintaining compliance.

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26(6) The ease of reidentifying location data, even when personally
27 identifiable information has been removed from the data.

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28(7) Risks for privacy concerns when used with other
29technologies, such as automatic license plate readers.

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30(8) Public and private agency access, including law
31enforcement, to data collected and stored for purposes of the MBF
32to ensure individual privacy rights are protected pursuant to
33Section 1 of Article I of the California Constitution.

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34(h) The task force shall consult with highway users and
35transportation stakeholders, including representatives of vehicle
36users, vehicle manufacturers, and fuel distributors as part of its
37duties pursuant to subdivision (g).



begin insert(a)end insertbegin insertend insert Based on the recommendations of the MBF Task
39Force, the Transportation Agency shall develop and implement,
40by January 1, 2016, a pilot program to identify and evaluate issues
P5    1related to the potential implementation of an MBF program in

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3(b) At a minimum, the pilot program shall accomplish all of the

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5(1) Analyze alternative means of collecting road usage data,
6including at least one alternative that does not rely on electronic
7vehicle location data.

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8(2) Collect a minimum amount of personal information including
9location tracking information, necessary to implement the MBF

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11(3) Ensure that processes for collecting, managing, storing,
12transmitting, and destroying data are in place to protect the
13integrity of the data and safeguard the privacy of drivers.

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14(c) The agency shall not disclose, distribute, make available,
15sell, access, or otherwise provide for another purpose, personal
16information or data collected through the MBF program to any
17private entity or individual unless authorized by a court order, as
18part of a civil case, by a subpoena issued on behalf of a defendant
19in a criminal case, by a search warrant, or in aggregate form with
20all personal information removed for the purposes of academic

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(a) The Transportation Agency shall prepare and submit
23a report of its findings based on the results of the pilot program to
24the MBF Task Force, the California Transportation Commission,
25and the appropriate policy and fiscal committees of the Legislature
26by no later than June 30, 2017. The report shall, include, but not
27be limited to, a discussion of all of the following issues:

28(1) Cost.

29(2) Privacybegin insert, including recommendations regarding public and
30private access, including law enforcement, to data collected and
31stored for purposes of the MBF to ensure individual privacy rights
32are protected pursuant to Section 1 of Article I of the California
33Constitutionend insert

34(3) Jurisdictional issues.

35(4) Feasibility.

36(5) Complexity.

37(6) Acceptance.

38(7) Use of revenues.

P6    1(8) Security and compliancebegin insert, including a discussion of processes
2and security measures necessary to minimize fraud and tax evasion
3ratesend insert

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4(9) Data collection technology, including a discussion of the
5advantages and disadvantages of various types of data collection
6equipment and the privacy implications and considerations of the

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9begin insert(10)end insert Potential for additional driver services.

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11begin insert(1end insertbegin insert1)end insert Implementation issues.

12(b) The California Transportation Commission shall include its
13recommendations regarding the pilot program in its annual report
14to the Legislature as specified in Sections 14535 and 14536 of the
15Government Code.



This chapter shall remain in effect only until January 1,
172018, and as of that date is repealed, unless a later enacted statute,
18that is enacted before January 1, 2018, deletes or extends that date.


SEC. 3.  

Chapter 7 (commencing with former Section 3100) of
20Division 2 of the Vehicle Code is repealed.