BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2586


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          Date of Hearing:   April 20, 2016


                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT


                           Susan Talamantes Eggman, Chair


          AB 2586  
          (Gatto) - As Amended April 6, 2016


          SUBJECT:  Parking.


          SUMMARY:  Imposes a number of restrictions and requirements on  
          local authorities' ability to regulate parking in their  
          jurisdictions.  Specifically, this bill:  


          1)Declares the intent of the Legislature that if a local  
            authority prohibits or restricts the parking or standing of  
            vehicles for the purposes of street sweeping, the local  
            authority shall ensure that parking is made available as soon  
            as the street sweeping is completed, regardless of the posted  
            hours of street sweeping.


          2)Deletes the sunset date on provisions that prohibit local  
            authorities from prohibiting or restricting parking of  
            vehicles in a space regulated by an inoperable parking meter  
            or an inoperable parking payment center, thereby extending  
            these provisions indefinitely.


          3)Prohibits valet parking services in business districts from  
            restricting motorists' ability to park in available metered  
            parking spaces and from prohibiting motorists from using  








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            designated passenger loading areas.


          4)Prohibits a local authority, when using contracted private  
            parking enforcement services, from promoting incentives  
            (monetary or otherwise) for issuing higher numbers of  
            violations or increasing fines to cover the costs of the  
            contracted enforcement services. 


          5)Requires local jurisdictions to consider the feasibility of  
            using demand-based pricing technology and to identify  
            appropriate locations where it can be utilized, when  
            installing new parking technology within their jurisdictions.


          6)Requires local jurisdictions to include a written finding when  
            considering the use of demand-based pricing technology for  
            parking and to retain a copy of the finding and post it on  
            their Internet Web site (website), if they have one.


          7)  Provides that no reimbursement is required by this bill,  
            pursuant to Section 6 of Article XIIIB of the California  
            Constitution, for certain costs that may be incurred by a  
            local agency because, in that regard, this bill creates a new  
            crime or infraction, eliminates a crime or infraction, or  
            changes the penalty for a crime or infraction, or changes the  
            definition of a crime within the meaning of Section 6 of  
            Article XIIIB of the California Constitution.  However, if the  
            Commission on State Mandates determines that this bill  
            contains other costs mandated by the state, reimbursement to  
            local agencies for those costs shall be made, pursuant to  
            current law governing state-mand8)ated local costs.


          EXISTING LAW:  










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          1)Defines parking as the standing of vehicles, whether occupied  
            or not, otherwise than temporarily for the purpose of and  
            while actually engaged in loading and unloading of merchandise  
            or passengers.


          2)Allows local authorities to establish parking meter zones and  
            fix the parking fee for such zones by ordinance.  


          3)Authorizes local jurisdictions to issue parking citations to  
            allow for street sweeping.


          4)Prohibits, until January 1, 2017, a local authority, by  
            ordinance or resolution, from prohibiting or restricting the  
            parking of vehicles in a space that is regulated by an  
            inoperable parking meter or inoperable parking payment center.

          FISCAL EFFECT:  This bill is keyed fiscal.


          COMMENTS:  


          1)Bill Summary.  This bill makes a number of changes to law  
            governing local jurisdictions' authority to regulate parking,  
            as follows: 



             a)   Declares the intent of the Legislature that if a local  
               authority prohibits or restricts the parking or standing of  
               vehicles for the purposes of street sweeping, the local  
               authority must ensure that parking is made available as  
               soon as the street sweeping is completed, regardless of the  
               posted hours of street sweeping;










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             b)   Deletes the January 1, 2017, sunset on provisions that  
               prohibit local authorities from prohibiting or restricting  
               parking of vehicles in a space regulated by an inoperable  
               parking meter or an inoperable parking payment center,  
               thereby extending these provisions indefinitely;


             c)   Prohibits valet parking services in business districts  
               from restricting motorists' ability to park in available  
               metered parking spaces and from prohibiting motorists from  
               using designated passenger loading areas;


             d)   Prohibits a local authority, when using contracted  
               private parking enforcement services, from promoting  
               incentives (monetary or otherwise) for issuing higher  
               numbers of violations or increasing fines to cover the  
               costs of the contracted enforcement services; and, 


             e)   Requires local jurisdictions to consider the feasibility  
               of using demand-based pricing technology and to identify  
               appropriate locations where it can be utilized, when  
               installing new parking technology within their  
               jurisdictions.  When considering the use of demand-based  
               pricing technology, local jurisdictions must include a  
               written finding, retain a copy of the finding, and post it  
               on their website, if they have one.


            This bill is sponsored by the author.





          2)Author's Statement.  According to the author, "Every year,  
            cities issue thousands of parking tickets to motorists for  
            every imaginable violation, ranging from expired meters to  








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            driveway obstruction, proximity to fire hydrants and stop  
            signs to abandonment of a vehicle.  Unfortunately, budget  
            deficits have led many local governments to run their public  
            parking enforcement programs as additional sources of revenue,  
            rather than as mechanisms for enforcing sensible parking  
            restrictions.  These tickets add up, and in 2014, were  
            responsible for approximately $165 million of Los Angeles's  
            city budget and almost $130 million of San Francisco's city  
            budget.  This profit-driven parking enforcement system has a  
            disproportionate impact on low-to-moderate income residents  
            who live in densely populated urban areas.  As Los Angeles  
            Mayor Eric Garcetti recently stated, 'It's a 'got-ya'  
            culture?It doesn't work for the businesses, it doesn't work  
            for the drivers.'"



          3)Background.  SB 1388 (DeSaulnier), Chapter 70, Statutes of  
            2012, established a general rule that a vehicle owner may  
            park, up to the posted time limit, without penalty, in any  
            parking space where the parking meter or parking payment  
            center is inoperable.  SB 1388 contained a provision that  
            allowed local jurisdictions to adopt different rules, provided  
            that adequate notice of the rule was provided at the parking  
            location.  As a result, some local jurisdictions began banning  
            parking at inoperable meters using posted signs to notify  
            motorists.  To address this loophole, AB 61 (Gatto), Chapter  
            71, Statutes of 2013, prohibited local jurisdictions from  
            ticketing at inoperable meters.  These provisions sunset  
            January 1, 2017.  



            According to a July 5, 2012, article in the Los Angeles Times,  
            the City of Los Angeles issues 2.5 million parking citations  
            every year.  In 2011, the city increased fines for the sixth  
            time in seven years, which was expected to generate an extra  
            $8.4 million for the city's general fund.  









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            An editorial published on February 15, 2013, in the Los  
            Angeles Times urged local action on the issue, noting the  
            adverse impact of the fines on low-income individuals and  
            those who live in neighborhoods with scant street or garage  
            parking.  The editorial reported that parking tickets generate  
            $150 million in annual revenues for the city.  The editorial  
            also noted irregularities with the private company, Xerox  
            State and Local Solutions, that operates the city's Parking  
            Violations Bureau, stating, 





               "Since Xerox took over, a group of people in the city says  
               the company has been trying to keep more parking revenue by  
               stonewalling attempts to fight tickets?(one individual)  
               filed a class-action lawsuit in January, claiming Xerox  
               doesn't really consider their cases but just sends form  
               letters stating that their appeals have been rejected.   
               Then, when motorists try to appeal to the Department of  
               Transportation, Xerox slaps them with late payment fees and  
               penalties?The city's data on tickets seem to back up (the  
               class-action litigant's) claim that Xerox is rejecting too  
               many appeals.  Last year, the city dismissed thousands of  
               tickets after Xerox had rejected the drivers' appeal -  
               vindicating the small percentage of intrepid souls who  
               managed to bring their case to City Hall."


          


            However, a Los Angeles Times editorial published on January 21  
            of this year in response to this bill states, 








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               "?these rules and regulations of street parking are not  
               issues for the state legislature.  They're classic local  
               issues which different cities might want to handle  
               differently.  And if problems arise, they're best fixed by  
               local governments?Interestingly, L.A. had been ticketing at  
               broken meters, on the dubious argument that not doing so  
               created an incentive for motorists to break them.  But the  
               council changed that unpopular (and unreasonable) policy  
               after (AB 61) passed?





               "In the last few years in Los Angeles there has been such  
               an outcry over confusing parking regulations and increases  
               in parking fines that Mayor Eric Garcetti created what he  
               calls the Parking Reform Working Group, which delivered a  
               report last year on how to reform the system.  Councilman  
               Mike Bonin incorporated a number of its suggestions into  
               several motions that are now winding their way through  
               council committees.  But the city needs to get moving on  
               this.  The working group was formed in June 2014 and  
               reported back last February, yet none of its changes have  
               been implemented to date?Nevertheless, the fact remains  
               that City Hall is the place to enact any parking reforms  
               for city streets."


          


          4)Previous Legislation.  AB 61 (Gatto), Chapter 71, Statutes of  
            2013, prohibited, until 








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          January 1, 2017, a city or county from citing vehicles or  
            parking at an inoperable parking meter or parking payment  
            center for up to the posted time limit.  



            SB 1388 (DeSaulnier), Chapter 70, Statutes of 2012,  
            established a general rule that a vehicle owner may park  
            without penalty in any parking space for up to the posted time  
            limit if the parking meter or parking payment center is  
            inoperable, but allowed a city or county to adopt a different  
            rule if it provided adequate notice of the rule.



          5)State Mandate.  This bill is keyed a state mandate, which  
            means the state could be required to reimburse local agencies  
            for implementing the bill's provisions if the Commission on  
            State Mandates determines that the bill contains costs  
            mandated by the state.  



          6)Arguments in Support.  The Howard Jarvis Taxpayers  
            Association, in support, writes, "This bill includes a number  
            of common-sense provisions to ensure that taxpayers don't  
            spend their hard-earned money to deal with either government  
            incompetence or criminal activity far outside their control."



          7)Arguments in Opposition.  The League of California Cities, in  
            opposition, states, "This bill unnecessarily upends local  
            authority to regulate parking, an authority that cities have  
            had since at least 1959.  In 2013, the state enacted AB 61  
            (Gatto), Chapter 71, Statutes of 2013, 
          a bill narrowly targeted at broken parking meters.  The League  
            is currently in the process of surveying its members, but  
            initial responses indicate that there has been a significant  








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            increase in meter vandalism in just the two years since this  
            bill's implementation.  Furthermore, broken meters represent  
            only a fraction of working parking meters, making this an  
            unusual candidate for statewide policy.  Any attempt to make  
            this recent change in law permanent is premature, at best.



            "Unlike AB 61, AB 2586 goes well beyond the limitations  
            imposed on local government authority to regulate its own  
            parking needs?No entity is better equipped than local  
            government to regulate its own parking needs.  In fact, many  
            small cities throughout the state do not have any parking  
            meters and many of the larger cities are moving towards some  
            of the technology called for in this bill.  Cities continue to  
            demonstrate their willingness to adapt to their residents'  
            parking needs and there is no demonstrated need for the state  
            to insert itself into this core local issue."


           


           8)Double-Referral.  This bill was heard by the Transportation  
            Committee on April 4, 2016, where it passed with a 16-0 vote.



          


















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          REGISTERED SUPPORT / OPPOSITION:




          Support


          Howard Jarvis Taxpayers Association




          Opposition


          California Public Parking Association


          City of Sacramento


          City of San Carlos


          Culver City Chamber of Commerce


          League of California Cities




          Analysis Prepared by:Angela Mapp / L. GOV. / (916) 319-3958












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