BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  SB 1445|
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                                 THIRD READING


          Bill No:  SB 1445
          Author:   DeSaulnier (D)
          Amended:  5/13/10
          Vote:     21

           
           SENATE LOCAL GOVERNMENT COMMITTEE  :  3-2, 4/7/10
          AYES:  Kehoe, DeSaulnier, Price
          NOES:  Cox, Aanestad

           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  6-2, 4/20/10
          AYES:  Lowenthal, DeSaulnier, Kehoe, Oropeza, Pavley,  
            Simitian
          NOES:  Huff, Ashburn
          NO VOTE RECORDED:  Harman

           SENATE APPROPRIATIONS COMMITTEE  :  6-2, 5/10/10
          AYES:  Kehoe, Alquist, Leno, Price, Wolk, Yee
          NOES:  Cox, Wyland
          NO VOTE RECORDED:  Corbett, Denham, Walters


           SUBJECT  :    Land use planning

           SOURCE  :     California Associations of Councils of  
          Governments


           DIGEST  :    This bill increases by one dollar the fee to  
          register a vehicle to pay for regional land use planning  
          activities.  This bill also makes changes to the membership  
          and duties of the Office of Planning and Research's  
          Planning Advisory and Assistance Council.
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           ANALYSIS  :    Existing law prohibits a person from driving,  
          moving, or parking on the highway or in a public parking  
          facility a motor vehicle unless it is registered with the  
          Department of Motor Vehicles (DMV).  Existing law  
          establishes a basic vehicle registration fee of $34, plus a  
          $22 surcharge for additional personnel for the California  
          Highway Patrol, and authorizes local agencies to impose  
          separate vehicle registration fee surcharges in their  
          respective jurisdictions for a variety of special programs,  
          including:

          1.One dollar for service authorities for freeway  
            emergencies.
          2.One dollar for deterring and prosecuting vehicle theft.
          3.Up to seven dollars for air quality programs.
          4.One dollar for removing abandoned vehicles.
          5.One dollar for fingerprint identification programs.

          Existing law permits local agencies to form joint powers  
          agencies (JPAs).  Cities and counties in regions have  
          exercised this authority to form JPAs called councils of  
          government (COGs) to implement regional planning activities  
          required under state law, including regional housing needs  
          assessments and regional transportation plans.  COGs  
          generally serve as federally recognized metropolitan  
          planning organizations (MPOs) for transportation planning  
          purposes, although there are exceptions.  For example, in  
          the nine-county San Francisco Bay region, the Association  
          of Bay Area Governments (ABAG) is the COG that prepares the  
          regional housing needs assessment, but the Metropolitan  
          Transportation Commission (MTC) is the region's MPO. Rural  
          counties of the state are generally outside of an MPO, and  
          their county transportation planning agencies typically  
          develop required transportation plans.

          SB 375 (Steinberg), Chapter 728, Statutes of 2008, required  
          the Air Resources Board (ARB), by September 30, 2010, to  
          provide each region that has a MPO with a greenhouse gas  
          emission reduction target for the automobile and light  
          truck sector for 2020 and 2035, respectively.  Each MPO, in  
          turn, is required to include within its regional  
          transportation plan (RTP) a sustainable community's  
          strategy (SCS) designed to achieve the ARB targets for  

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          greenhouse gas emission reduction.  If the SCS does not  
          achieve the reduction target, the MPO must prepare also an  
          alternative planning strategy.  SB 375 provided that in the  
          Southern California Association of Governments' region, a  
          subregional entity may prepare a subregional SCS. 


          This bill:

          1. Increases, effective July 1, 2011, the vehicle  
             registration fee by one dollar to $35 annually.  This  
             bill specifies that after deducting its administrative  
             costs, the department is required to deposit one percent  
             of the net revenues received from the additional fee in  
             this bill,  upon appropriation by the Legislature, into  
             the Planning Advisory and Assistance Council Fund, which  
             this bill creates in the State Treasury, and make the  
             funds available to the Planning Advisory and Assistance  
             Council.

          2. This provision sunsets on January 1, 2016.

          3. Directs the remainder of the new revenues to each MPO,  
             COG, or a county transportation planning agency based on  
             the number vehicles registered there to:

             A.    Fund the development and implementation of an  
                SCS, a regional blueprint plan, or a rural  
                transportation plan element consistent with  
                Caltrans' guidelines for regional blueprints in  
                order to identify land use strategies to achieve  
                the greenhouse gas emission reduction targets under  
                SB 375.

             B.    Provide grants to local agencies for planning  
                and projects to implement a regional blueprint.

          The Southern California Association of Governments, after  
          deducting its own costs of preparing its SCS, must  
          distribute funds it receives to subregional jurisdictions  
          that have elected to prepare a subregional SCS.  A regional  
          agency may share revenues with the local air quality  
          management district to assist in reducing greenhouse gas  
          emissions. 

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          Existing law establishes the Office of Planning and  
          Research (OPR) within the governor's office as the state's  
          comprehensive planning agency, responsible for helping  
          local and regional officials with land use planning.  State  
          law charges OPR with coordinating state agencies' planning  
          activities, including directing OPR to prepare every four  
          years a State Environmental Goals and Policies Report, a  
          20- to 30-year look ahead at state growth and development.   


          Existing law creates the PAAC to assist OPR in various  
          land-use planning related activities, including development  
          of the State Environmental Goals and Policies Report.   
          OPR's Director appoints the PAAC members, which must  
          include:

          1. Three city representatives, nominated by the League of  
             California Cities.

          2. Three county representatives, nominated by the  
             California State Association of Counties.

          3. One representative from each of the regional planning  
             districts designated by OPR.

          4. One representative of Indian tribes with reservations in  
             California.

          SB 732 (Steinberg), Chapter 729, Statutes of 2008 created  
          the Strategic Growth Council, consisting of:

          1.Director of OPR.
          2.Secretary of the Natural Resources Agency.
          3.Secretary of the Environmental Protection Agency.
          4.Secretary of the Business, Transportation and Housing  
            Agency.
          5.Secretary of the California Health and Human Services  
            Agency.
          6.A public member, appointed by the Governor.

          The Strategic Growth Council coordinates the activities and  
          funding programs of its member state agencies to improve  
          air and water quality, improve natural resources  

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          protection, increase the availability of affordable  
          housing, improve transportation, meet the state's  
          greenhouse gas emission goals, encourage sustainable land  
          use planning, and revitalize urban and community centers.   
          The council must 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.

          This bill:

          1. Changes the PAAC's membership to be:

             A.    Three city representatives, nominated by the  
                League of California Cities.

             B.    Three county representatives, nominated by the  
                California State Association of Counties.

             C.    Seven representatives of specified regional  
                planning organizations.

             D.    One member of the State Air Resources Board.

             E.    One member of the California Transportation  
                Commission.

             F.    One member of the California Energy Resources  
                Conservation and Development Commission.

             G.    One member appointed by the Speaker of the  
                Assembly.

             H.    One member appointed by the Senate Rules  
                Committee.

             I.    One representative of Indian tribes with  
                reservations in California.

          2. Assigns the PAAC five new duties, as follows:

             A.    Work with the Strategic Growth Council to  
                facilitate the implementation of regional blueprint  

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                projects.

             B.    Facilitate coordination between regional  
                blueprint plans and state growth and infrastructure  
                funding plans by developing recommendations to  
                specified state agencies.

             C.    Receive reports, including the state's five-year  
                infrastructure plan.

             D.    Report to the Legislature on how state agencies  
                implement the state's planning priorities.

             E.    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.

          3. Directs the Strategic Growth Council in performing its  
             duties to consult with the PAAC and delays for two  
             years, until 2012, the due date of the council's first  
             annual report to the Legislature on financial awards it  
             makes to support sustainable planning activities.

           Related Legislation
           
          SB 406 (DeSaulnier) would have authorized regions to impose  
          a surcharge on vehicle registrations to pay for regional  
          land use planning activities and would have made changes to  
          the membership and duties of the Office of Planning and  
          Research's PAAC. This bill was vetoed.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee analysis:

                          Fiscal Impact (in thousands)

           Major Provisions                     2010-11     2011-12     
           2012-13          Fund

           Registration fee revenue                      

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          ($31,364)($31,364) Special*

          DMV implementation                           minor one-time  
          costs of around                                    Special*
                                   $100

          DMV administration       ongoing costs deducted from fee     
                                     Special*
                                   revenue

          PAAC new duties          all costs covered by 1% allocation  

                                   of fees collected
                                   (approximately $310 annually)

          * Motor Vehicle Account

           SUPPORT  :   (Verified  6/2/10)

          California Association of Councils of Governments (source)
          American Lung Association
          Association of Bay Area Governments
          Contra Costa Transportation Authority
          Housing California
          Metropolitan Transportation Commission
          Natural Resources Defense Council
          The Non-Profit Housing Association of Northern California
          TRANSform

           OPPOSITION  :    (Verified  6/2/10)

          Alliance of Automobile Manufacturers
          California New Car Dealers Association
          Department of Finance
          Department of Housing and Community Development 
          Department of Transportation

           ARGUMENTS IN SUPPORT  :    The author's office notes that SB  
          375 requires that each MPO develop an SCS reflecting  
          preferred land uses as part of its regional transportation  
          plan.  The SCS will build on regional blueprints already  
          being prepared in these regions.  Proponents note that the  
          state has provided few resources to implement SB 375 and  
          its required regional transportation plans that will  

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          address greenhouse gas emissions. Regional and local  
          governments need resources for strategic planning and  
          opportunities for coordination with state agencies.  The  
          author's office introduced this bill to provide those  
          resources and the opportunity for greater coordination.   
          Specifically, this bill imposes an increase of one dollar  
          in the vehicle registration fee on all vehicles to fund  
          development and implementation of sustainable communities'  
          strategies or regional plans.  This bill allows the  
          Planning and Advisory and Assistance Council to coordinate  
          state investments with these regional plans.

           ARGUMENTS IN OPPOSITION  :    The California New Car Dealers  
          Association states that California motorists are already  
          overburdened with hidden vehicle fees.  In addition to the  
          annual Vehicle License Fee (VLF), which last year increased  
          from 0.65 percent to 1.15 percent of a vehicle's value, and  
          annual $34 vehicle registration fees, vehicle owners are  
          also subject to "add-on" fees: one to seven dollars annual  
          air quality district fee, $20 smog abatement fee for  
          vehicles six model-years old or newer, one dollar annual  
          abandoned vehicle trust fee, $22 annual CHP fee; one dollar  
          annual freeway call box fee; one dollar annual theft  
          deterrence fee; one dollar annual fingerprint  
          identification fee; and, the $1.75 per tire California tire  
          fee.  The dealers believe there is no reason to further  
          increase the cost of vehicle ownership in California. 
           
           
          AGB:RJG:do  6/2/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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