BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
SB 1183 (DeSaulnier) - Vehicles: registration surcharge for
bicycle infrastructure.
Amended: April 21, 2014 Policy Vote: T&H 6-4
Urgency: No Mandate: No
Hearing Date: May 23, 2014 Consultant: Mark McKenzie
SUSPENSE FILE. AS AMENDED.
Bill Summary: SB 1183 would authorize a city, county, or
regional park district to impose a vehicle registration
surcharge of up to $5 on vehicles registered in its jurisdiction
to fund local bicycle infrastructure and maintenance.
Fiscal Impact: (As approved May 23, 2014)
Estimated one-time costs to the Department of Motor
Vehicles (DMV) in the range of $150,000 to $200,000 for
programming and startup costs to implement a new fee
collection protocol. These costs would be reimbursed in
arrears from fees collected. All ongoing DMV costs would be
deducted from fees collected prior to distribution to the
local agency imposing the surcharge. (Motor Vehicle
Account)
Additional DMV programming costs of approximately $40,000
for each subsequent jurisdiction that imposes the surcharge.
All ongoing administrative collection costs would be
deducted from fees collected prior to distribution. (Motor
Vehicle Account)
Unknown revenue gains on the local level, potentially in
the millions annually, depending on the amount of the
surcharge adopted and the number of registered vehicles in a
particular jurisdiction in which a surcharge is approved by
the voters.
Background: Existing law establishes a basic vehicle
registration fee of $46, plus a $23 surcharge for additional
personnel for the California Highway Patrol. Existing law also
authorizes local agencies to impose separate vehicle
registration fees and surcharges in their respective
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jurisdictions for a variety of special programs, including up to
$2 for programs to address vehicle thefts, up to $19 to mitigate
vehicular air emissions, and $1 to abate abandoned vehicles.
Article XIIIC of the California Constitution authorizes local
agencies to impose a special tax with two-thirds voter approval.
Proposed Law: SB 1183 would authorize cities, counties, and
regional parks districts to impose a surcharge of up to $5 on
motor vehicles registered within their respective jurisdictions.
The amount of the surcharge would be specified in an ordinance
adopted by the local agency, and DMV would administer the
collection of fees and distribution of net revenues to the local
agency, after deduction collection costs. The bill requires net
revenues to be used for improvements to paved and natural
surface trails, including the rehabilitation, restoration, and
expansion of existing trails, the development of new trails, and
the maintenance and upkeep of existing local and regional trail
systems and networks.
Staff Comments: DMV currently collects fees for local districts
and counties to fund numerous vehicle-related programs, such as
the following:
Service Authority for Freeway Emergencies (SAFE), which
funds roadside callbox programs.
Air quality fees imposed by air quality management
districts that fund planning, monitoring, and enforcement
actions related to vehicular air pollution.
Auto theft deterrence fees imposed by counties to fund
programs to deter vehicle theft.
Abandoned vehicle abatement fees imposed by local
agencies to create service authorities for the removal and
disposal of abandoned vehicles.
Fingerprinting fees imposed by local agencies to provide
local law enforcement with automated mobile and fixed
location fingerprint identification of individuals involved
in DUI violations, vehicular manslaughter, and other crimes
committed while operating a motor vehicle.
The nexus between those who would pay a bicycle infrastructure
surcharge on their vehicle registration and the bicyclists who
are primary beneficiaries of the revenues may be questionable to
some. Others may argue that providing additional funding for
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bicycle infrastructure creates safer streets that benefit all
users of the road, which is an important tenant of "complete
streets" planning. Staff notes that AB 1183 specifies that the
vehicle registration surcharge authorized by this bill would be
a special tax subject to submittal to the electorate and
approval by a two-thirds vote, pursuant to Article XIII C of the
California Constitution. There are no nexus requirements for a
special tax.
Author amendments would do the following:
Clarify that the proposed vehicle surcharge is subject
to two-thirds voter approval in the jurisdiction in which
it is imposed.
Clarify that net surcharge revenues may be used for both
trails and bikeways.
Authorize net surcharge revenues to be used for
improvement and development of other bicycle facilities,
including bicycle parking facilities.
Limit local agency administrative expenses to a maximum
of 5 percent of net revenues.