BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1445
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 SB 1445 (DeSaulnier) - As Amended:  August 2, 2010 

          Policy Committee:                             Local  
          GovernmentVote:8-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill (a) authorizes a statewide increase of $1 on vehicle  
          registrations to fund state and regional land use planning  
          activities related to the implementation of SB 375 (Steinberg),  
          Chapter 728/2008, and (b) revises the membership and expands the  
          duties of the Planning Advisory and Assistance Council (PAAC)  
          within the Governor's Office of Planning and Research (OPR).

           FISCAL EFFECT  

          1)Increase in vehicle registration fees of $31 million annually  
            from 2011-12 through 2014-15, and about $15 million in  
            2015-16.

             a)   About $310,000 of the annual increase would be dedicated  
               to PAAC to fund its expanded duties.

             b)   The remainder would be directed to regional agencies to  
               assist them in development of their sustainable communities  
               strategies (required by SB 375) and regional blueprints.

          2)One time programming and implementation costs of about  
            $100,000 for DMV to determine distribution of the revenues  
            based on the number of vehicles in each of the recipient  
            agencies' jurisdiction. Ongoing DMV administrative costs would  
            be deducted from fees collected prior to distribution to PAAC  
            and the local agencies.  


           SUMMARY (Continued)
           








                                                                  SB 1445
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           Specifically, the bill:

          1)Increases the vehicle registration fee by $1 for registrations  
            between July 1, 2011 and January 1, 2016.   

          2)Requires the 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 to make the  
            funds available to the PAAC, upon appropriation by the  
            Legislature.  

          3)Requires DMV to distribute the remaining revenues from the fee  
            increase to metropolitan planning organizations (MPOs),  
            councils of governments (COGs), 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.  

          4)Expands the membership of the PAAC to include: seven  
            representatives of regional planning organizations; one member  
            from the California Air Resources Board; one member from the  
            California Transportation Commission; one member from the  
            State Energy Resources Conservation and Development  
            Commission;, and one member each appointed by the Assembly and  
            the Senate. 

          5)Adds a variety of new duties to PAAC, including: working with  
            the strategic growth council, regional agencies, and local  
            governments to facilitate the implementation of regional  
            blueprint plans; providing recommendations to various state  
            entities relating to land use, housing, and transportation;  
            and reporting to the Legislation on regional performance  
            measures.

          6)Requires that monies are to be used by the regional  
            organizations solely to develop a sustainable community  
            strategy or a regional blueprint plan that identifies land use  
            strategies to reduce the use of motor vehicles and achieve  
            greenhouse gas emission reductions from motor vehicles.   

          COMMENTS  

           1)Rationale  . This bill is sponsored by the California  
            Association of Councils of Governments (CALCOG) for the  
            purpose of providing a permanent funding source for the  








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            regional and local planning required to implement SB 375.  
            CALCOG asserts that a guaranteed revenue stream to the  
            regional transportation planning agencies is crucial to the  
            successful implementation of their responsibilities under SB  
            375.

           2)Opposition.   Caltrans opposes the bill, stating that the bill  
            is similar to last year's SB 406 (DeSaulnier), which was  
            vetoed by Governor Schwarzenegger. Caltrans notes that the  
            current bill does not address the issue raised by the governor  
            last year, which was that a fee increase for this purpose  
            should be subject to voter approval.
           
          3)Background  . Existing law requires MPOs to adopt regional  
            transportation plans directed at achieving a coordinated and  
            balanced regional transportation system. SB 375 requires that  
            each MPO include within its regional transportation plan a  
            sustainable communities strategy designed to achieve specified  
            targets for greenhouse gas emission reductions.

            Currently, local agencies are authorized to form joint powers  
            agencies.  Cities and counties in regions have exercised this  
            authority to form joint powers agencies called councils of  
            governments (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 MPOs for transportation planning  
            purposes.  

            OPR within the governor's office serves as the state's  
            planning agency.  The PAAC, located 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.  

            The strategic growth 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
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            The state vehicle registration fee is $34, plus a $22  
            surcharge for additional personnel for the California Highway  
            Patrol. Local agencies are also authorized to impose separate  
            surcharges for a variety of specific programs ranging from  
            vehicle theft prevention to air quality programs. 

           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081