BILL ANALYSIS                                                                                                                                                                                                    �






                                                       Bill No:  AB  
          2414
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                           Senator Lou Correa, Chair
                           2013-2014 Regular Session
                                 Staff Analysis



          AB 2414  Author:  Ting
          As Introduced:  February 21, 2014
          Hearing Date:  June 24, 2014
          Consultant:  Paul Donahue


                                     SUBJECT  

                 Parking facilities: Electric vehicle charging

                                   DESCRIPTION
           
          Specifies that the use of electricity by state government  
          and other government entities, state officers and  
          employees, or other persons for the charging of an electric  
          vehicle in a department maintained or joint use motor  
          vehicle parking facility is not a gift of public funds  
          prohibited by the California Constitution.

                                   EXISTING LAW

           1)Generally prohibits the Legislature from making, or  
            authorizing the making of, gifts of public funds unless  
            it determines that the funds serve a public purpose.<1>

          2)Authorizes the Department of General Services (DGS) to  
            acquire real property, as specified, and to construct,  
            operate, and maintain motor vehicle parking facilities  
            for state officers and employees, or other persons, as  
            specified. 

          3)Authorizes DGS to enter into arrangements with other  
            public and state agencies for joint use of motor vehicle  
            parking facilities if the benefit to be derived by the  
          -------------------------
          <1> Cal Const. art. XVI � 6





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            state is commensurate with its participation; prescribe  
            the terms and condition of this parking, including the  
            payment of parking fees in any amounts and under any  
            circumstances as determined by DGS; and establish various  
            rates for parking fees based on location, parking  
            facility, or number of riders in each vehicle. 

          4)Provides that revenues received by DGS for these motor  
            vehicle parking facilities as designated by the Director  
            of DGS, and under the jurisdiction of any other state  
            agency that has entered into an agreement with DGS for  
            the payment of revenues, be deposited into the General  
            fund and are continuously appropriated to DGS for the  
            construction, operation, and maintenance of motor vehicle  
            parking facilities, as specified.<2>  

                                    BACKGROUND
           
           Purpose of the bill  . This bill clarifies that the use of  
          electricity by officers and employees of any state or  
          government entity or by members of the public for the  
          charging of an electric vehicle in a DGS-managed or joint  
          use parking facility is not an illegal gift of public  
          funds. The aim of this bill is to encourage the state  
          development and use of electric charging stations. 
                       
           Author's statement  : According to the author, this bill  
          "ensures that electric vehicle charging stations built in  
          parking areas developed by state government entities are  
          not considered gifts of public funds. Across the state,  
          government entities are actively working to establish  
          robust electric vehicle charging systems. While electric  
          vehicle charging stations provide benefits to individuals,  
          they also serve a public purpose. Electric vehicle charging  
          stations in public parking areas increase the availability  
          and awareness of electric vehicle charging, which serve as  
          an important part of replacing [greenhouse gas]-emitting  
          cars and trucks with clean electric vehicles."

           Prohibition on public gifts  : The California Constitution  
          prohibits the state and its subdivisions from making, or  
          authorizing the making, "of any gift, of any public money  
          or thing of value to any individual, municipal or other  
          corporation." The primary question to be considered when  
          determining whether an appropriation of public funds is  
          -------------------------
          <2> See Govt. Code � 14678   





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          considered a gift is whether the funds are used for a  
          private or public purpose. If they are used for a public  
          purpose, they are not a gift within the meaning of this  
          constitutional prohibition, even if there may be incidental  
          benefit to private persons.<3> 

          Although a court may be unlikely to determine that the  
          provision of electricity through electric charging stations  
          is an unconstitutional gift of public funds that is used  
          for a private purpose, this bill does not prohibit a court  
          from making such a determination because a statute cannot  
          supersede a constitutional provision. As a result, this  
          bill merely seeks to clarify that providing electricity  
          without charge through electric charging stations in state  
          parking facilities is viewed as having a public purpose,  
          and is therefore not a gift of public funds in violation of  
          the California Constitution.             

           Supporters  : According to the California Municipal Utilities  
          Association, "our members currently help facilitate the  
          implementation of electric vehicle charging infrastructure.  
          Many of these charging stations are located at state and  
          locally owned facilities. Public awareness of these  
          facilities often starts with public promotion and usage by  
          public officials and state employees. In furtherance of  
          state policies promoting the transition to an electric  
          vehicle economy, any potential obstacles that may limit  
          state employees and other public officials from accessing  
          electric vehicle charging facilities should be removed."



                            PRIOR/RELATED LEGISLATION
           
          SB 454 (Corbett), Chapter 418, Statutes of 2013. Prohibits  
          operators of electric vehicle charging stations from  
          restricting access only to subscribers or members, and  
          required stations to accept credit cards or mobile payment  
          technologies. 

          SB 459 (Pavley), Chapter 437, Statutes of 2013. Requires  
          the ARB to expand the size and scope of a program that  
          subsidizes the purchase of new clean vehicles for  
          low-income drivers. 

          -------------------------
          <3> County of Alameda v. Janssen (1940) 16 Cal.2d 276  





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          AB 1092 (Levine), Chapter 410, Statutes of 2013. Requires  
          the California Building Standards Commission to adopt and  
          publish mandatory building standards for the installation  
          of future electric vehicle charging infrastructure for  
          parking spaces in multifamily dwellings and nonresidential  
          development.

          AB 2583 (Blumenfield), Chapter 676, Statutes of 2012.  
          Requires DGS and Caltrans to develop and implement advanced  
          technology vehicle parking incentive programs in specified  
          DGS- and Caltrans-operated parking facilities to  
          incentivize the purchase and use of alternative fuel  
          vehicles in the state. 

          AB 2644 (Butler), 2011-2012 Session. Would have required  
          the Building Standards Commission to adopt building  
          standards for the construction, installation, and  
          alteration of electric vehicle charging stations for  
          parking spaces in single-family residential real property.  
          (Held in Assembly Housing and Community Development  
          Committee)

           SUPPORT:   

          California Electric Transportation Coalition
          California Municipal Utilities Association 
          Sacramento Electric Vehicle Association
          Southern California Public Power Authority

           OPPOSE:   

          None on file

           FISCAL COMMITTEE:   No.



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