Amended in Assembly August 21, 2014

Amended in Assembly August 4, 2014

Amended in Assembly June 25, 2014

Amended in Assembly June 16, 2014

Amended in Senate April 21, 2014

Senate Bill No. 1077

Introduced by Senator DeSaulnier

(Coauthor: Assembly Member Lowenthal)

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 mileage-based fee end delete begin insert road usage charge end insert 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 begin delete establish a Mileage-Based Fee (MBF) Task Force within the California Transportation Commission, as specified end delete begin insert require the Chair of the California Transportation Commission to create a Road Usage Charge (RUC) Technical Advisory Committee in consultation with the Secretary of the Transportation Agency end insert . The bill would require the begin delete task force end delete begin insert technical advisory committee end insert to study begin delete MBF end delete begin insert RUC end insert alternatives to the gas tax and to make recommendations to the begin delete commission end delete begin insert Secretary of the Transportation Agency end insert on the design of a pilot program, as specified. The bill would also authorize the begin delete task force end delete begin insert technical advisory committee end insert to make recommendations on the criteria to be used to evaluate the pilot program. The bill would require the begin delete task force end delete begin insert technical advisory committee end insert to consult with specified entities and to consider certain factors in carrying out its duties. begin delete The bill would require the commission to approve the design of a pilot program by January 1, 2016. end delete The bill would require the Transportation Agency, based on the begin delete design approved by the commission end delete begin insert recommendations of the technical advisory committee end insert , to implement a pilot program to identify and evaluate issues related to the potential implementation of an begin delete MBF end delete begin insert RUC end insert program in California by January 1, 2017. The bill would require the agency to prepare and submit a report of its findings to the begin delete task force end delete begin insert technical advisory committee end insert , the commission, and the appropriate fiscal and policy committees of the Legislature by no later than begin delete January 1 end delete begin insert June 30 end insert , 2018, 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, 2019.

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.  

The Legislature finds and declares all of the
following:

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

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

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

(d) Other states have begun to explore the potential for a
begin delete mileage-based fee end delete begin insert road usage charge end insert to replace traditional gas
taxes, including the State of Oregon, which established the first
permanent road user begin delete fee end delete begin insert charge end insert program in the nation.

begin insert

(e) Road usage charging is a policy whereby motorists pay for
the use of the roadway network based on the distance they travel.
Drivers pay the same rate per mile driven, regardless of what part
of the roadway network they use.

end insert begin delete

(e)

end delete

begin insert (f) end insert  A begin delete mileage-based fee end delete begin insert road usage charge end insert program has the
potential to distribute the gas tax burden across all vehicles
regardless of fuel source and to minimize the impact of the current
regressive gas tax structure.

begin delete

(f)

end delete

begin insert (g) end insert  Experience to date in other states across the nation
demonstrates that mileage-based begin delete user fees end delete begin insert charges end insert can be
implemented in a way that ensures data security and maximum
privacy protection for drivers.

begin delete

(g)

end delete

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

begin delete

(h)

end delete

begin insert (i) end insert  Any exploration of alternative revenue sources shall take
privacy implications into account, especially with regard to location
begin delete data, which does not need to be personally identifiable to raise
serious privacy concerns because studies have shown that this type
of data is easy to reidentify. end delete begin insert data. Travel locations or patterns
shall not be reported, and legal and technical safeguards shall
protect personal information. end insert

SEC. 2.  

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

 

Chapter  7. begin delete Mileage-Based Fee end delete begin insert Road Usage Charge end insert Pilot
Program

 

3090.  

(a)  begin delete The Mileage-Based Fee (MBF) Task Force is hereby
established within the California Transportation Commission. end delete begin insert The
Chair of the California Transportation Commission shall create,
in consultation with the Secretary of the Transportation Agency,
a Road Usage Charge (RUC) Technical Advisory Committee. end insert

(b) The purpose of the begin delete task force end delete begin insert technical advisory committee end insert
is to guide the development and evaluation of a pilot program to
assess the potential for mileage-based revenue collection for
California’s roads and highways as an alternative to the gas tax
system.

(c) The begin delete task force end delete begin insert technical advisory committee end insert shall consist of
15 begin delete members, as follows: end delete

begin delete

(1) Two members of the Assembly, appointed by the Speaker
of the Assembly.

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

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

end delete

begin delete (4) end delete begin delete   end delete begin delete Nine members appointed by the Governor. In making these
appointments, the Governor end delete begin insert members. In selecting the members
of the technical advisory committee, the chair end insert shall consider
individuals who are representative of the telecommunications
industry, highway user groups, the data security and privacy
industry, privacy rights advocacy organizations, regional
transportation agencies, begin delete and end delete national research and policymaking
bodies, including, but not limited to, the Transportation Research
Board and the American Association of State Highway and
Transportation Officials begin insert , members of the Legislature, and other
relevant stakeholders as determined by the chair end insert .

begin delete

(d) Members of the task force are entitled to compensation of
one hundred dollars ($100) per day, if a majority of the commission
approves the compensation by a recorded vote, plus the necessary
expenses incurred by a member in the performance of his or her
duties. Compensation earned by members of the commission while
serving on the task force shall not be subject to the eight hundred
dollars ($800) limitation described in Section 14509 of the
Government Code.

end delete begin delete

(e)

end delete

begin insert (d) end insert  Pursuant to Section 14512 of the Government Code, the begin delete task
force end delete begin insert technical advisory committee end insert may request the Department
of Transportation to perform such work as the begin delete task force end delete begin insert technical
advisory committee end insert deems necessary to carry out its duties and
responsibilities.

begin delete

(f)

end delete

begin insert (e) end insert  The begin delete task force end delete begin insert technical advisory committee end insert shall study begin delete MBF end delete
begin insert RUC end insert alternatives to the gas tax. The begin delete task force end delete begin insert technical advisory
committee end insert shall gather public comment on issues and concerns
related to the pilot program and shall make recommendations to
the begin delete commission end delete begin insert Secretary of the Transportation Agency end insert on the
design of a pilot program to test alternative begin delete MBF end delete begin insert RUC end insert approaches.
The begin delete task force end delete begin insert technical advisory committee end insert may also make
recommendations begin delete to the commission end delete on the criteria to be used to
evaluate the pilot program. begin delete The commission shall approve the
design of a pilot program by January 1, 2016. end delete

begin delete

(g)

end delete

begin insert (f) end insert  In studying alternatives to the current gas tax system and
developing recommendations on the design of a pilot program to
test alternative begin delete MBF end delete begin insert RUC end insert approaches pursuant to subdivision begin delete (f) end delete
begin insert (e) end insert , the begin delete task force end delete begin insert technical advisory committee end insert shall take all of
the following into consideration:

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

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

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

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

(5) Effective methods of maintaining compliance.

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

(7) Increased privacy concerns when location data is used in
conjunction with other begin delete technologies, such as automatic license
plate readers. end delete begin insert technologies. end insert

(8) Public and private agency access, including law enforcement,
to data collected and stored for purposes of the begin delete MBF end delete begin insert RUC end insert to ensure
individual privacy rights are protected pursuant to Section 1 of
Article I of the California Constitution.

begin delete

(h)

end delete

begin insert (g) end insert  The begin delete task force end delete begin insert technical advisory committee end insert shall consult
with highway users and transportation stakeholders, including
representatives of vehicle users, vehicle manufacturers, and fuel
distributors as part of its duties pursuant to subdivision begin delete (g) end delete begin insert (f) end insert .

3091.  

(a) Based on the begin delete design approved by the commission end delete
begin insert recommendations of the RUC Technical Advisory Committee end insert , the
Transportation Agency shall implement a pilot program to identify
and evaluate issues related to the potential implementation of an
begin delete MBF end delete begin insert RUC end insert program in California by January 1, 2017.

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

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

(2) Collect a minimum amount of personal information including
location tracking information, necessary to implement the begin delete MBF end delete
begin insert RUC end insert program.

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

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

3092.  

(a) The Transportation Agency shall prepare and submit
a report of its findings based on the results of the pilot program to
the begin delete MBF Task Force end delete begin insert RUC Technical Advisory Committee end insert , the
California Transportation Commission, and the appropriate policy
and fiscal committees of the Legislature by no later than begin delete January
1 end delete begin insert June 30 end insert , 2018. The report shall include, but not be limited to, a
discussion of all of the following issues:

(1) Cost.

(2) Privacy, including recommendations regarding public and
private access, including law enforcement, to data collected and
stored for purposes of the begin delete MBF end delete begin insert RUC end insert to ensure individual privacy
rights are protected pursuant to Section 1 of Article I of the
California Constitution.

(3) Jurisdictional issues.

(4) Feasibility.

(5) Complexity.

(6) Acceptance.

(7) Use of revenues.

(8) Security and compliance, including a discussion of processes
and security measures necessary to minimize fraud and tax evasion
rates.

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

(10) Potential for additional driver services.

(11) Implementation issues.

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

3093.  

This chapter shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2019, deletes or extends that date.

SEC. 3.  

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