BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1445 (DeSaulnier)
Hearing Date: 05/10/2010 Amended: 04/26/2010
Consultant: Mark McKenzie Policy Vote: L.Gov 3-2; T&H 6-2
_________________________________________________________________
____
BILL SUMMARY: SB 1445 would increase vehicle registration fees
by $1 to pay for regional land use planning activities. This
bill would also revise the membership and expand the duties of
the Planning Advisory and Assistance Council (PAAC) within the
Governor's Office of Planning and Research (OPR).
_________________________________________________________________
____
Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Registration fee revenue ($31,364)
($31,364) Special*
DMV implementation minor one-time costs of around
$100Special*
DMV administration ongoing costs deducted from fee
revenueSpecial*
PAAC new duties all costs covered by 1% allocation of
fees collected
____________ (approximately $310 annually)
* Motor Vehicle Account
_________________________________________________________________
____
STAFF COMMENTS:
Vehicle fee provisions
Existing law establishes a basic statewide vehicle registration
fee of $34, plus a $22 surcharge that supports the California
Highway Patrol, and authorizes local agencies to impose separate
vehicle registration fee surcharges within their jurisdictions
for various programs, such as air quality district fees,
congestion management fees, and law enforcement fees. SB 375
(Steinberg), Chapter 728 of 2008, requires each metropolitan
planning agency (MPO) to include within its regional
transportation plan a sustainable communities strategy (SCS)
designed to achieve specified targets for greenhouse gas
emission reduction. If the SCS does not achieve the reduction
target, the MPO must prepare an alternative planning strategy.
In some regions, cities and counties have jointly formed
councils of government (COGs) to implement regional planning
activities. COGs generally serve as federally recognized MPOs
transportation planning purposes, although some COGs, such as
the San Francisco Bay Area, have a separate MPO for
transportation planning.
SB 1445 would increase the $34 vehicle registration fee by $1,
effective July 1, 2011. After deducting its costs to administer
the increased fee, the Department of Motor Vehicles (DMV) would
be required to transmit one percent of the revenues to the PAAC
for the performance of its duties, and distribute the remaining
revenues to metropolitan planning agencies (MPOs), councils of
governments (COGs) outside of MPOs, and to transportation
planning agencies outside of MPOs or COGs based on the number of
Page 2
SB 1445 (DeSaulnier)
registered vehicles in each jurisdiction. These revenues would
be used solely to develop and implement a SCS, a regional
blueprint plan, or a rural transportation plan element
consistent with guidelines for regional blueprints in order to
identify land use strategies to reduce the use of motor vehicles
and carry out activities designed to achieve greenhouse gas
emission reduction targets. Funds would also be used to provide
grants to cities, counties, cities and counties, and congestion
management agencies for planning and projects related to the
implementation of a regional blueprint plan. The bill also
authorizes the entities that receive a distribution of fee
revenues to share the revenues with local air quality management
districts to assist local and regional governments in reducing
greenhouse gas emissions.
DMV would be required to administer the collection and
distribution of the fees to MPOs, COGs, and transportation
planning agencies, as specified. Since the fee would be imposed
statewide, initial costs for programming would be relatively
minor. DMV would be required to establish formulas to determine
for distribution of the revenues based on the number of vehicles
in each of the recipient agencies' jurisdiction. Staff
estimates total implementation costs in the range of $100,000.
Even though the bill provides for payment of DMV's costs to
administer the surcharge, initial costs would be paid up front
by DMV since the programming changes and distribution formulas
must be in place prior to fee collection. Ongoing
administrative costs would be deducted from fees collected prior
to distribution to the local agency.
According to DMV statistics, there were 31,243,470 fee-paid
vehicles registered in the state in 2009. This bill would
generate over $31 million annually for regional land use
planning purposes. One percent of these revenues, about 310,000
annually, would be allocated to the PAAC to pay for the new
duties imposed by this bill.
Staff notes that this bill would provide a continuous stream of
revenue of over $31 million annually for MPOs, COGs, and
transportation planning agencies for regional blueprints
designed to achieve specified greenhouse gas emission reduction
targets. It is unclear why this level of sustained funding is
needed once sustainable communities strategies and regional
blueprints are complete. Staff recommends an amendment to
sunset the increased vehicle registration fee imposed by this
bill after five years, at which time the Legislature would have
received reports from the Strategic Growth Council on efforts
supporting sustainable planning. The Committee may also wish to
consider imposing a reporting requirement or other oversight
mechanisms on the recipients of these new planning funds.
Planning Advisory and Assistance Council
Existing law establishes the Office of Planning and Research
(OPR) within the governor's office as the state's comprehensive
planning agency. The Planning Advisory and Assistance Council
(PAAC) within OPR is responsible for various land-use planning
related activities, including development of the State
Environmental Goals and Policies Report. OPR's Director
appoints the membership of the PAAC, which must include three
city representatives, three county representatives, one
representative from each of the regional planning districts
designated by OPR, and one representative of Indian tribes with
reservations in California. SB 732 (Steinberg), Chapter 729 of
2008, created
Page 3
SB 1445 (DeSaulnier)
the Strategic Growth Council, consisting of: the Director of
OPR; the Secretary of the Natural Resources Agency; the
Secretary of the Environmental Protection Agency; the Secretary
of the Business, Transportation and Housing Agency; the
Secretary of the California Health and Human Services Agency;
and a public member. The council is required to recommend
policies to the governor, state agencies, and the Legislature to
encourage the development of sustainable communities and provide
local governments and regional agencies with data to assist in
planning sustainable communities.
SB 1445 would revise the membership of the PAAC by designating
the representation of regional planning agencies, as specified,
and expanding the PAAC to include: a member of the Air Resources
Board; a member of the California Transportation Commission, a
member of the State Energy Resource Conservation and Development
Commission; and a member appointed by each of the houses of the
Legislature. This bill would also assign the following new
duties to the PAAC:
Work with the Strategic Growth Council to facilitate the
implementation of regional blueprint projects.
Develop recommendations to the Strategic Growth Council and
specified state agencies to facilitate coordination between
regional blueprint plans and state growth and infrastructure
funding plans.
Receive reports, including the state's five-year
infrastructure plan.
Report to the Legislature, in consultation and coordination
with the Strategic Growth Council, on how state agencies
implement the state's planning priorities.
Report to the Legislature on regional performance measures
that evaluate each region based on the PAAC's criteria for
improving the regions' employment, environmental protection,
education, housing, and mobility.
The one percent allocation of revenues collected pursuant to
this new fee (approximately $310,000 annually) would be
sufficient to fully offset the costs associated with the new
coordination duties. Staff notes, however, that the bill
requires DMV to allocate the revenues directly to the PAAC
without any legislative oversight, which is similar to a
continuous appropriation mechanism. Staff recommends an
amendment to make the distribution of revenues to the PAAC
subject to a legislative appropriation in the budget act.
This bill would require the Strategic Growth Council to consult
with and coordinate with the PAAC when performing its core
functions. Any costs associated with this consultation would be
absorbable. The bill also delays the due date for the Council's
initial report to the Legislature on financial awards it makes
to support sustainable planning activities by two years, from
July 1, 2010 to 2012.
Staff notes that bill is similar to SB 406 (DeSaulnier), which
was vetoed by the Governor last year. The primary difference
between the two bills is that this bill imposes a statewide
vehicle registration fee while SB 406 authorized MPOs, COGs, and
county transportation commissions to impose the fee
individually. The Governor objected to the imposition of a fee
without voter approval of the jurisdiction.