BILL ANALYSIS Ó
SB 1183
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Date of Hearing: August 6, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 1183 (DeSaulnier) - As Amended: June 25, 2014
Policy Committee: Local
GovernmentVote:7 - 0
Transportation 10 -
4
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill authorizes a city, county or regional park district to
impose a vehicle registration surcharge, up to $5, as a special
tax to fund local bicycle infrastructure improvements and
maintenance. The bill requires the Department of Motor Vehicles
(DMV) to administer the surcharge, with net revenues after
deduction of DMV's costs to be distributed to the local agency.
The bill also prohibits using more than 5% of the net revenues
for administrative expenses, requires any local agency that
imposes a surcharge to provide a report to the Legislature, and
sunsets the authority to impose a surcharge on January 1, 2025.
FISCAL EFFECT
1)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)
2)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)
3)Unknown revenue gains on the local level, potentially in the
millions annually, depending on the amount of the surcharge
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adopted and the number of registered vehicles in a particular
jurisdiction in which a surcharge is approved by the voters.
4)Unknown, likely minor, costs to local agencies that impose the
surcharge, to prepare and submit the required annual report to
the legislature.
COMMENTS
1)Purpose . According to the author, despite clear health and
environmental benefits of bicycling, local communities lack
stable funding sources to build out bicycle and trail
networks. Bike paths, trails, and bike parking facilities
provide the crucial safety and security features that are
needed for people of different ages and abilities to choose
biking as a mode of active transportation and recreation. The
author further notes promotion of bicycling through a locally
approved vehicle registration surcharge benefits all community
members. This bill provides a local funding mechanism to
support communities that want to build out bikeway and trail
infrastructure and bicycle network connectivity.
2)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 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.
3)Previous Legislation .
a) AB 1546 (Simitian), Chapter 931, Statutes of 2004,
granted the City/County Association of Governments of San
Mateo County the authority to impose an annual fee on motor
vehicles for programs to manage traffic congestion and
stormwater pollution. SB 348 (Simitian), Chapter 377,
Statutes of 2008, extended this authority until January 1,
2013. SB 613 (Simitian) of 2007, would have extended the
authority until January 1, 2019, but was vetoed by Governor
Schwarzenegger.
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b) SB 83 (Hancock), Chapter 554, Statues of 2009,
authorized a countywide transportation planning agency to
impose an annual fee of up to $10 on motor vehicles
registered in the county to fund programs to address
congestion mitigation and motor vehicle-induced pollution.
The definition for congestion mitigation programs and
projects includes bicycle improvements and local street and
road rehabilitation.
1)Arguments in support . TransForm argues that according to
Caltrans' 2013 California Household Travel Survey,
Californians are taking twice as many trips by bicycle as they
did in 2000, and one-third of schoolchildren walk or ride
their bikes to school, but bicycle infrastructure is no longer
able to keep up with this pace, leading to unsafe road
conditions for both bicyclists and drivers. TransForm further
argues that improving bicycle infrastructure is a
cost-effective way to improve safety conditions for cyclists
and drivers while providing a low-cost, healthier, and cleaner
alternative to driving.
2)Arguments in opposition . The California Tax Payers
Association (CalTax) argues that although raising revenue to
improve bike trails and infrastructure enjoyed by bicyclists
is a noble goal, a vehicle registration surcharge is not the
right approach because bicycle infrastructure improvements
would not directly benefit the drivers who pay the surcharge.
CalTax further argues that roads, bike trails, and parks
already are funded through various taxes and fees imposed by
local governments, and local entities already possess the
necessary tools to raise additional revenues.
Analysis Prepared by : Jennifer Swenson / APPR. / (916)
319-2081