BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 1183 (DeSaulnier) - Vehicles: registration surcharge for  
          bicycle infrastructure.
          
          Amended: April 21, 2014         Policy Vote: T&H 6-4
          Urgency: No                     Mandate: No
          Hearing Date: May 12, 2014      Consultant: Mark McKenzie
          
          This bill meets the criteria for referral to the Suspense File. 

          
          Bill Summary: SB 1183 would authorize a city, county, or  
          regional park district to impose a vehicle registration  
          surcharge of up to $5 on vehicles registered in its jurisdiction  
          to fund local bicycle infrastructure and maintenance.

          Fiscal Impact: 
              Estimated one-time costs to the Department of Motor  
              Vehicles (DMV) in the range of $150,000 to $200,000 for  
              programming and startup costs to implement a new fee  
              collection protocol.  These costs would be reimbursed in  
              arrears from fees collected.  All ongoing DMV costs would be  
              deducted from fees collected prior to distribution to the  
              local agency imposing the surcharge.  (Motor Vehicle  
              Account)

              Additional DMV programming costs of approximately $40,000  
              for each subsequent jurisdiction that imposes the surcharge.  
               All ongoing administrative collection costs would be  
              deducted from fees collected prior to distribution. (Motor  
              Vehicle Account)

              Unknown revenue gains on the local level, potentially in  
              the millions annually, depending on the amount of the  
              surcharge adopted and the number of registered vehicles in a  
              particular jurisdiction in which a surcharge is approved by  
              the voters. 

          Background: Existing law establishes a basic vehicle  
          registration fee of $46, plus a $23 surcharge for additional  
          personnel for the California Highway Patrol.  Existing law also  
          authorizes local agencies to impose separate vehicle  
          registration fees and surcharges in their respective  








          SB 1183 (DeSaulnier)
          Page 1


          jurisdictions for a variety of special programs, including up to  
          $2 for programs to address vehicle thefts, up to $19 to mitigate  
          vehicular air emissions, and $1 to abate abandoned vehicles.

          Article XIIIC of the California Constitution authorizes local  
          agencies to impose a special tax with two-thirds voter approval.  


          Proposed Law: SB 1183 would authorize cities, counties, and  
          regional parks districts to impose a surcharge of up to $5 on  
          motor vehicles registered within their respective jurisdictions.  
           The amount of the surcharge would be specified in an ordinance  
          adopted by the local agency, and DMV would administer the  
          collection of fees and distribution of net revenues to the local  
          agency, after deduction collection costs.  The bill requires net  
          revenues to be used for improvements to paved and natural  
          surface trails, including the rehabilitation, restoration, and  
          expansion of existing trails, the development of new trails, and  
          the maintenance and upkeep of existing local and regional trail  
          systems and networks.

          Staff Comments: DMV currently collects fees for local districts  
          and counties to fund numerous vehicle-related programs, such as  
          the following:
                 Service Authority for Freeway Emergencies (SAFE), which  
               funds roadside callbox programs.
                 Air quality fees imposed by air quality management  
               districts that fund planning, monitoring, and enforcement  
               actions related to vehicular air pollution.
                 Auto theft deterrence fees imposed by counties to fund  
               programs to deter vehicle theft.
                 Abandoned vehicle abatement fees imposed by local  
               agencies to create service authorities for the removal and  
               disposal of abandoned vehicles.
                 Fingerprinting fees imposed by local agencies to provide  
               local law enforcement with automated mobile and fixed  
               location fingerprint identification of individuals involved  
               in DUI violations, vehicular manslaughter, and other crimes  
               committed while operating a motor vehicle.

          The nexus between those who would pay a bicycle infrastructure  
          surcharge on their vehicle registration and the bicyclists who  
          are primary beneficiaries of the revenues may be questionable to  
          some.  Others may argue that providing additional funding for  








          SB 1183 (DeSaulnier)
          Page 2


          bicycle infrastructure creates safer streets that benefit all  
          users of the road, which is an important tenant of "complete  
          streets" planning.  Staff notes that AB 1183 specifies that the  
          vehicle registration surcharge authorized by this bill would be  
          a special tax subject to submittal to the electorate and  
          approval by a two-thirds vote, pursuant to Article XIII C of the  
          California Constitution.  There are no nexus requirements for a  
          special tax.