BILL ANALYSIS Ó
AB 2175
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ASSEMBLY THIRD READING
AB
2175 (Jones)
As Amended May 27, 2016
Majority vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Transportation |15-0 |Frazier, Linder, | |
| | |Baker, Bloom, Brown, | |
| | |Chu, Daly, Dodd, | |
| | |Gomez, Kim, Mathis, | |
| | |Medina, Melendez, | |
| | |Nazarian, O'Donnell | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |20-0 |Gonzalez, Bigelow, | |
| | |Bloom, Bonilla, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, Eggman, | |
| | |Gallagher, Eduardo | |
| | |Garcia, Roger | |
| | |Hernández, Holden, | |
| | |Jones, Obernolte, | |
| | |Quirk, Santiago, | |
| | |Wagner, Weber, Wood | |
| | | | |
| | | | |
AB 2175
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SUMMARY: After June 30, 2017, eliminates the transfer of $10
million per year from the Off-Highway Vehicle (OHV) Trust Fund
to the General Fund.
EXISTING LAW:
1)Establishes the OHV trust fund administered by the California
Department of Parks and Recreation (Parks) to fund the
maintenance, operations and enforcement of State Vehicular
Recreation Areas (SVRA) and other state and federal lands
allowable for OHV use.
2)Provides for the imposition and collection of OHV registration
fees and SVRA entrance fees to be deposited in the OHV trust
fund.
3)Provides for the transfers of fuels taxes attractable to OHV
and off-highway motor vehicle activity from the Motor Vehicle
Fuel Account to the OHV trust fund.
4)Requires the Controller to withhold $833,000 per month from
the Motor Vehicles Fuel Account transfer to the OHV trust fund
and transfer that amount to the General Fund.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, ongoing $10 million loss of General Fund revenue and
corresponding increase in OHV Trust Fund revenues, commencing in
2017-18.
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COMMENTS: As part of the 2011-12 budget act, $833,000 per
month, or $10 million annually, was redirected from the OHV
Trust Fund to the state General Fund as part of numerous loans
and diversions from various special funds to help balance the
state's budget. According to the author, since that time, the
OHV trust fund has lost $50 million that would have otherwise
been used to maintain critical infrastructure and services to
the OHV recreation community that is responsible for generating
user-fee revenues. Further, he states that this bill will stop
the inappropriate diversion of transportation-generated revenues
to unrelated purposes.
The OHV program was created in 1971 and is managed by Department
of Parks and Recreation and overseen by California Off-Highway
Motor Vehicle Recreation Commission. The program is funded by a
combination of proceeds derived from the $52 biennial
registration fee on OHVs, commonly referred to as the "green
sticker" program; taxes on motor vehicle fuels, both those
consumed by OHVs and those attributable to vehicle use off of
the public highways; and entrance fees collected at SVRAs.
Since the passage of SB 742 (Steinberg), Chapter 541, Statutes
of 2007, the amount of motor fuels transferred to the OHV trust
fund are based on the percentage of fuel taxes transferred in
2007. Prior to 2007, the amount of funds attributable to OHV
use was determined based on statewide studies that estimated the
total gallons of gasoline burned in the course of OHV
recreation. In fact, as part of the 2014-15 budget, the
Department of Transportation, Parks and the Department of Motor
Vehicles (DMV) are required to do a study to determine the
appropriate level of funds to transfer to the OHV trust fund
based upon estimated fuel use by off highway vehicles and
activities. The study is not yet complete.
Funding from the OHV trust fund is used for grants to local,
state and federal entities, Native American tribes, educational
institutions and non-profit organizations. The grants are split
into function areas with 50% for operations and maintenance of
AB 2175
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trails and facilities, 25% for restoration or repair to habitat
damaged by OHV use, 20% for law enforcement, and 5% for
education and safety programs.
In writing in support of this bill, the California Off-Road
Vehicle Association (CORVA) notes that as a result of diversion
of funds from the OHV trust fund, the OHV program is now unable
to fully fund their program and many rural local government OHV
grants are only getting funded at a fraction of the needs to
provide law enforcement, safety, trail maintenance, and
environmental restoration on lands within their jurisdictions.
The American Sand Association adds that the loss of $10 million
each year is creating serious delays in providing badly needed
maintenance to OHV trails and areas throughout California and
will increase the costs of finally dealing with these
maintenance issues.
To help solve the budget crisis of the Great Recession, numerous
loans and diversions have been made from the OHV trust fund to
help support the state parks budget and the state General Fund.
The General Fund in no longer in crisis. Many of these loans
are in the process on being repaid, including in the Governor's
2016-17 budget proposal. This bill is consistent with these
actions.
Analysis Prepared by:
Melissa White / TRANS. / (916) 319-2093 FN:
0003177
AB 2175
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