BILL ANALYSIS
SB 1445
Page 1
SENATE THIRD READING
SB 1445 (DeSaulnier)
As Amended August 2, 2010
Majority vote
SENATE VOTE :21-16
LOCAL GOVERNMENT 5-3 TRANSPORTATION 8-3
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|Ayes:|Caballero, Arambula, |Ayes:|Bonnie Lowenthal, |
| |Coto, Davis, | |Blumenfield, Buchanan, |
| |Monning | |Furutani, Galgiani, |
| | | |Hayashi, Portantino, |
| | | |Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Smyth, Knight, Logue |Nays:|Jeffries, Bill Berryhill, |
| | | |Miller |
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APPROPRIATIONS 12-5
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|Ayes:|Fuentes, Bradford, | | |
| |Huffman, Coto, Davis, De | | |
| |Leon, Gatto, Hall, | | |
| |Skinner, Solorio, | | |
| |Torlakson, Torrico | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Conway, Harkey, Miller, | | |
| |Nielsen, Norby | | |
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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 :
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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:
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
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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, the
California Environment Protection Agency, the California
Health and Human Services Agency, the California Natural
Resources Agency, and any other state agencies that affect
land use, environment, human health, 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
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, in consultation and
coordination with the Strategic Growth Council, 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
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PAAC, and provides that the PAAC shall provide the
Legislature with an update to the report periodically, as
the PAAC determines is required.
4)Provides, if OPR is abolished or otherwise eliminated, that
PAAC shall retain its duties and reside within the SGC whose
chair will assume the Director of OPR's duties.
5)Requires the vehicle registration fee imposed by Section 9250
of the Vehicle Code to be increased by an additional one
dollar ($1).
6)Creates the PAAC Fund in the State Treasury.
7)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.
8)Requires that the fee revenue in the PAAC Fund is used to
perform specified coordination and planning-related functions.
9)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.
10)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.
11)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
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
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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.
12)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.
13)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.
14)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;
d) Development of and assistance with the California
Environmental Quality Act (CEQA) guidelines and review of
greenhouse gas emissions in CEQA analyses;
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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.
15)Provides that a sustainable communities strategy and an
alternative planning strategy shall both be considered to be a
regional blueprint plan.
16)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.
17)Provides that the SGC shall consult and coordinate its
recommendations with the PAAC.
18)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.
19)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;
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
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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
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;
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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.
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;
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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 Assembly Appropriations
Committee, this bill:
1)Increases in fee revenues of about $31 million to regional
agencies to assist them in development of sustainable
communities' strategies and regional blueprints.
2)Provides about $300,000 annually to PAAC to fund its expanded
duties.
3)Requires 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 the local agency.
COMMENTS : This bill 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
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transportation planning agencies, and to provide grants to
cities, counties, and congestion management agencies for
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.
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. This bill
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.
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.
SB 732 (Steinberg), Chapter 729, Statutes of 2008, created the
SGC, consisting of the Director of OPR, the Secretary of the
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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 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.
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, this bill is slightly
different from last year's SB 406. This bill 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.
This bill 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
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.
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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 this bill 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.
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958 FN: 0006045