BILL ANALYSIS
SB 1445
Page 1
Date of Hearing: June 28, 2010
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cameron Smyth, Chair
SB 1445 (DeSaulnier) - As Amended: May 13, 2010
SENATE VOTE : 21-16
SUBJECT : Planning.
SUMMARY : Authorizes a statewide increase of $1 on vehicle
registration to be used to fund
the Planning Advisory and Assistance Council (PAAC) and to fund
the development of sustainable communities strategies or other
regional plans by metropolitan planning organizations (MPOs),
councils of governments (COGs), and county transportation
planning agencies; and revises the membership and duties of the
PAAC. Specifically, this bill :
1)Adds to the existing membership of the PAAC, the following
members:
a) Seven representatives of regional planning
organizations;
b) One member of the State Air Resources Board (ARB);
c) One member of the California Transportation Commission
(CTC);
d) One member of the State Energy Resources Conservation
and Development Commission;
e) One member appointed by the Speaker of the Assembly;
and,
f) One member appointed by the Senate Committee on Rules;
2)Provides that the seven representatives of regional planning
organizations shall be from the governing body of each of the
following:
a) Five members selected by the Director of the Office of
Planning and Research (OPR) from nominees submitted by the
regional planning organizations listed below:
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i) The Southern California Association of Governments
(SCAG);
ii) The Metropolitan Transportation Commission (MTC) or
the Association of Bay Area Governments (ABAG), provided
that the person appointed shall be a member of the
governing body for both MTC and ABAG;
iii) The San Diego Association of Governments (SANDAG);
iv) The Sacramento Area Council of Governments (SACOG);
and,
v) The San Joaquin Valley Regional Policy Council
(SJVRPC);
b) Two members selected by the Director of OPR from
nominees submitted by the California Association of
Councils of Governments (CALCOG):
i) An MPO or COG that is not identified in # 2a listed
above; and,
ii) A regional transportation planning agency that is
neither an MPO nor a COG.
3)Adds the following new duties to the PAAC:
a) Work with the Strategic Growth Council (SGC), regional
agencies such as MPOs and COGs, and with cities and
counties to facilitate the implementation of regional
blueprint plans.
b) Develop and propose recommendations to the SGC, the
Department of General Services (DGS), the State Allocation
Board, the Department of Housing and Community Development
(HCD), the Department of Transportation (DOT), the CTC, and
any other state agencies that affect land use, housing, or
transportation in order to facilitate the coordination
between regional blueprint plans, state growth and
infrastructure funding plans, and programs that facilitate
the implementation of regional blueprint plans.
c) Receive reports, including, but not limited to, a copy
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of the five-year infrastructure plan.
d) Report to the Legislature, in consultation and
coordination with the SGC, on the manner in which state
agencies are implementing the requirements of AB 857
(Wiggins),
Chapter 1016, Statutes of 2002.
e) Report to the Legislature on regional performance
measures, evaluating the progress
of each region of the state in improving results for its
residents in employment, environmental protection,
education, housing, mobility, and other criteria as
determined by the PAAC, and provides that the PAAC shall
provide the Legislature with an update to the report
periodically, as the PAAC determines is required.
4)Requires the vehicle registration fee imposed by Section 9250
of the Vehicle Code to be increased by an additional one
dollar ($1).
5)Creates the PAAC Fund in the State Treasury.
6)Requires the Department of Motor Vehicles (DMV), after
deducting its administrative costs, to deposit 1% of the net
revenues received from the additional vehicle registration fee
into the PAAC Fund, and requires DMV to make the funds
available to the PAAC, upon appropriation by the Legislature.
7)Requires that the fee revenue in the PAAC Fund is used to
perform specified coordination and planning-related functions.
8)Requires the DMV to distribute the remaining revenues from the
fee increase to MPOs, COGs, COGS outside of MPOs, and
transportation planning agencies in areas outside
of MPOs or COGs, based upon the amount of fees collected from
motor vehicles registered within each jurisdiction.
9)Requires that the fee revenue be distributed to MPOs, COGs
outside of MPOs, and transportation planning agencies in areas
outside of MPOs or COGs in accordance
with # 10 - #13 below.
10)Provides that the fee revenue shall be used by the MPO, the
COG, or a county transportation planning agency solely to
develop and implement a sustainable communities strategy, a
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regional blueprint plan, or a rural transportation plan
element that is consistent with the guidelines developed by
DOT for regional blueprints, in order to identify land use
strategies to reduce the use of motor vehicles in its
jurisdiction and carry out applicable transportation -related
activities in the strategy, plan, or plan element, and thereby
to achieve the greenhouse gas emission reduction target and 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.
11)Requires that an MPO that is jointly preparing a sustainable
communities strategy with a COG shall share all revenue it
receives and expend that revenue in accordance with an
agreement between the two agencies.
12)Requires that SCAG distribute a share of revenues received to
a county transportation commission or subregional COG that has
elected to prepare a subregional sustainable communities
strategy, and provides that the share of each eligible agency
shall be computed after deducting from total revenues
available to SCAG, the costs incurred by SCAG for preparing
the regionwide sustainable communities strategy, and then
allocating the revenues based on the amount of fees collected
from motor vehicles registered within the jurisdiction of each
eligible agency.
13)Requires that the MPO, COG, or county transportation
commission and a subregional COG jointly preparing a
subregional sustainable communities strategy, may, pursuant to
an agreement with the local air quality management district
(AQMD) that has responsibility over the jurisdiction, share
revenues with the local AQMD, provided that all revenue
received by the local AQMD shall be used to assist local and
regional governments in reducing greenhouse gas emissions,
including but not limited to, the following:
a) Assistance in the development of a subregional
sustainable communities strategy;
b) Assistance in the development of local greenhouse gas
emission inventories;
c) Assistance in the development of greenhouse gas emission
reduction strategies in general plans;
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d) Development of and assistance with the California
Environmental Quality Act (CEQA) guidelines and review of
greenhouse gas emissions in CEQA analyses;
e) Consultation and development of local climate action
plans; and,
f) Project-specific consultation work to reduce greenhouse
gas emissions from local transportation and land use
decisions.
14)Provides that a sustainable communities strategy and an
alternative planning strategy shall both be considered to be a
regional blueprint plan.
15)Includes an inoperative date of January 1, 2016, for the $1
fee increase in vehicle registration and repeals the authority
on January 1, 2017, unless a later enacted statute that
becomes operative on or before January 1, 2017, deletes or
extends the dates on which it becomes inoperative and is
repealed.
16)Provides that the SGC shall consult and coordinate its
recommendations with the PAAC.
17)Extends, from July 1, 2010 to July 1, 2012, the deadline for
the SGC to report to the Legislature applicants for financial
assistance, amounts awarded, the remaining balance
of available funds, and the proposed or ongoing management of
each funded project.
18)Makes findings and declarations regarding the Strategic
Growth Council, the Planning Advisory and Assistance Council,
and the importance of land use and transportation planning.
EXISTING LAW :
1)Provides for the creation of PAAC under OPR, and specifies
that the membership includes:
a) Three city representatives;
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b) Three county representatives;
c) One representative of each district (provided that at
least two of the district representatives are
representatives of each metropolitan areawide planning
organizations and that at least one of the district
representatives is a representative of a nonmetropolitan
planning organization); and,
d) One representative of Indian tribes and bands which have
reservations or rancherias within California.
2)Provides for the selection process of PAAC members, provides
for the length of term for PAAC members, specifies when and
how PAAC will meet, and specifies the compensation of PAAC
members.
3)Specifies that PAAC shall provide advice, and in particular:
a) Assist in the preparation of the state long-range goals
and policies;
b) Evaluate the planning functions of the various state
agencies involved in planning; and,
c) Make appropriate decisions and provide such advice and
assistance as may be required by federal statute or
regulation in connection with any federal program
administered by OPR.
4)Provides for the creation of SGC, and provides that SGC shall:
a) Identify and review activities and funding programs of
member state agencies that may be coordinated to improve
air and water quality, improve natural resource protection,
increase the availability of affordable housing, improve
transportation, meet the goals
of the California Global Warming Solutions Act of 2006,
encourage sustainable land use planning, and revitalize
urban and community centers in a sustainable manner;
b) Recommend policies and investment strategies and
priorities to the Governor, the Legislature, and to
appropriate state agencies to encourage the development of
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sustainable communities;
c) Provide, fund, and distribute data and information to
local governments and regional agencies that will assist in
developing and planning sustainable communities;
d) Manage and award grants and loans to support the
planning and development of sustainable communities; and,
e) Develop guidelines for awarding financial assistance and
eligibility, and develop criteria for determining the
amount of financial assistance.
5)The Planning and Zoning laws prescribe the following for OPR:
a) As the comprehensive state planning agency OPR is
required to:
i) Develop long term planning goals;
ii) Assist in the preparation of short-range functional
plans developed by state agencies and departments; and,
iii) Review plans and programs to determine conflicts or
conformance with state's land use planning goals.
b) OPR's coordination functions require it to:
i) Coordinate development of policies and criteria to
ensure that federal grants expended by the state further
statewide environmental goals;
ii) Coordinate development of environmental monitoring
systems;
iii) Coordinate development of criteria and procedures
for the orderly evaluation of the impact of public and
private actions on the environmental quality of the
state; and,
iv) Coordinate technical assistance provided by state
departments and agencies to regional and local
governments to assure that plans are consistent with
statewide environmental goals.
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c) OPR must coordinate with local governments to:
i) Develop long-range policies to assist the state and
local agencies in meeting the problems presented by the
growth and development of urban areas and defining the
complementary role of the state and other local entities;
ii) Encourage the formation of and provide planning
assistance to, regional planning agencies; and,
iii) Assist local government in land use planning.
6)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:
a) $1 for service authorities for freeway emergencies;
b) $1 for deterring and prosecuting vehicle theft;
c) Up to $7 for air quality programs;
d) $1 for removing abandoned vehicles; and,
e) $1 for fingerprint identification programs.
FISCAL EFFECT : According to the Senate Appropriations
Committee, this bill requires up front costs of about $100,000
for DMV to establish formulas to determine the distribution
of the revenues based on the number of vehicles in each of the
recipient agencies' jurisdiction. Ongoing administrative costs
would be deducted from fees collected prior to distribution to
the local agency.
COMMENTS :
1)SB 1445 imposes an additional fee of $1 on vehicle
registration statewide. Fee revenues would be used to fund
regional planning activities related to SB 375 [(Steinberg),
Chapter 728, Statutes of 2008] for MPOs, COGs, and county
transportation planning agencies, and to provide grants to
cities, counties, and congestion management agencies for
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planning and projects related to the implementation of a
regional blueprint plan. One percent (1%) of the fee revenue
would be used to support the PAAC. This bill additionally
revises the membership of the PAAC to include representatives
from MPOs and COGs, and creates new duties for the PAAC which
involve greater coordination on land use planning among local
governments, regional governments, state departments, and the
SGC.
2)Existing law establishes OPR within the Governor's office as
the state's comprehensive planning agency. PAAC within OPR is
responsible for various land-use planning related activities,
including assisting OPR in the development of the State
Environmental Goals and Policies Report (EGPR). The EGPR, a
20- to 30- year look ahead at state growth and development,
must be consistent with the state's planning priorities. The
Director of OPR appoints the membership of PAAC, which under
current law 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 1445 expands the duties for the PAAC to
include coordinating land use efforts and reviewing
infrastructure reports. These duties are almost identical to
what OPR is already required to do in its roles as the
statewide planning agency. The Committee may wish to consider
whether it is prudent to give duplicative responsibilities to
the PAAC.
3)SB 375 requires each MPO to include within its regional
transportation plan a Sustainable Communities Strategy (SCS)
designed to achieve specified targets for GHG emissions
reduction. If an SCS does not achieve the reduction target,
the MPO must prepare an alternative planning strategy (APS).
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
for transportation planning purposes, although some COGs, such
as the San Francisco Bay Area, have a separate MPO for
transportation planning.
4)SB 732 (Steinberg), Chapter 729, Statutes of 2008, created the
SGC, 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,
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Transportation and Housing Agency, the Secretary of the
California Health and Human Services Agency, and a public
member. The SGC 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. The SGC is charged with
awarding and managing grants for the $90 million pot contained
in Proposition 84 - "The Safe Drinking Water, Water Quality
and Supply, Flood Control, River and Coastal Protection Bond
Act of 2006" that was specifically set aside for "planning
grants and incentives." Additionally, the SGC has the
responsibility of commenting on OPR's EGPR and the state's
five-year infrastructure plan. AB 1473 (Hertzberg), Chapter
606, Statutes of 1999, required the Governor, beginning in
2002, to submit annually a five-year proposed capital
improvement plan to the Legislature that includes proposed
capital improvement projects and their proposed funding
sources.
5)This bill is similar to SB 406 (DeSaulnier), which was vetoed
by Governor Schwarzenegger last year. The Governor, in his
veto message, noted that to the imposition of a new fee by an
MPO, COG, or county transportation commission should be
subject to voter approval. While similar in concept, SB 1445
is slightly different from last year's SB 406. SB 1445 adds a
$1 increase to vehicle registration on a statewide basis to be
imposed over the next five years. SB 406, on the other hand,
would have allowed an MPO, COG or county transportation
planning agency to adopt a resolution to impose a new fee of
$1 or $2 on motor vehicles registered in that jurisdiction.
However, the purpose of the fee revenue remains the same
- to be used for the new duties given to PAAC under the bill's
provisions, and to provide a funding stream to regional
planning entities to be used for SB 375-related planning
purposes.
6)SB 1445 is also similar to AB 153 (Ma), which is currently
pending in the Senate. AB 153 contains much of the same
language regarding the new duties for the PAAC, the revised
membership of the PAAC, and provides for similar uses for the
revenue in terms of regional land use planning related to the
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provisions of SB 375. AB 153, however, provides for a
mitigation fee of up to $4 upon vehicle registration or
renewal, and provides that the fee is subject to local voter
approval.
7)Support Arguments : Unlike other states, California does not
invest state general fund monies to support local
comprehensive planning. Cities and counties must rely on
their own budgets, augmented by local fees. COGs rely on a
mix of federal funds and members' dues. Californians already
pay several registration surcharges for freeway emergencies,
abandoned cars, vehicle theft programs, and various regional
air quality efforts.
COGs and MPOs support SB 1445 because it will provide a
much-needed funding source to fulfill the unfunded state
mandate of SB 375, in order to accomplish the goal of reducing
vehicle trips and greenhouse gas emissions. Supporters argue
that given that cars contribute roughly 40% of the state's
greenhouse gas emissions, it is not too much to ask the
state's vehicle owners to help pay for the efforts to mitigate
such emissions.
Opposition Arguments : The California New Car Dealers
Association (CNCDA) and the Alliance of Automobile
Manufacturers (Alliance), in opposition, write that it is
imprudent to authorize another tax increase on vehicles, given
the extraordinarily difficult economic environment confronting
the automobile industry. CNCDA and the Alliance believe that
the bill should be amended to require voter approval of the
new fee.
The Department of Finance writes that this bill would create
additional workload for new program activities at a time when
the state's revenues and General Fund have been reduced.
Finance also notes that the DMV cannot make geographical
distinctions any finer than zip code areas, meaning that it
may not be possible for the DMV to distribute revenues to the
correct MPO or COG where a zip code crosses these regional
geographical boundaries.
7)This bill is double-referred to the Committee on
Transportation.
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REGISTERED SUPPORT / OPPOSITION :
Support
CA Association of Councils of Governments [SPONSOR]
American Lung Association in CA
Association of Bay Area Governments
CA ReLeaf (if amended)
Contra Costa Transportation Authority
Housing CA
Metropolitan Transportation Commission
Natural Resources Defense Council
Non-Profit Housing Association of Northern CA
Planning and Conservation League
Transportation Agency for Monterey County
TransForm
TreePeople (if amended)
Opposition
Alliance of Automobile Manufacturers
CA Department of Finance
CA Department of Housing and Community Development
CA Department of Transportation
CA New Car Dealers Association
League of CA Cities (unless amended)
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958