BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1183
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          Date of Hearing:   June 23, 2014

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                  SB 1183 (DeSaulnier) - As Amended:  June 25, 2014

           SENATE VOTE  :  26-9
           
          SUBJECT  :  Vehicle registration fees: surcharge for bicycle  
          infrastructure.

           SUMMARY  :  Authorizes a city, county, or regional park district  
          to impose, with two-thirds voter approval, a vehicle  
          registration surcharge to fund local bicycle infrastructure  
          improvements and maintenance. Specifically,  this bill  :  

          1)Authorizes a city, county, or regional park district to impose  
            through January 1, 2025, as a special tax with two-thirds  
            voter approval, a vehicle registration surcharge to fund  
            bicycle infrastructure.  

          2)Requires the amount of the vehicle license surcharge, in whole  
            dollars and not to exceed $5, to be specified in an ordinance  
            adopted by the local agency.   

          3)Requires the Department of Motor Vehicles (DMV) to administer  
            the surcharge, with net revenues after deduction of DMV's  
            costs to be distributed to the local agency.  

          4)Requires the net revenues to be used by the local agency for  
            any of the following:

             a)   Improvements to paved and natural surface trails and  
               bikeways, including the rehabilitation, restoration, and  
               expansion of existing trails and bikeways;  

             b)   The development of new trails and bikeways;  

             c)   The improvement and development of other bicycle  
               facilities, including, but not limited to, bicycle parking  
               facilities; and,

             d)   The maintenance and upkeep of local and regional trail  
               and bikeway systems, networks, and other bicycle  
               facilities.  








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          5)Prohibits the local agency from using more than 5% of the net  
            revenues for administrative expenses.  

          6)Defines "regional park district" to mean any regional park  
            district, regional park and open-space district, or regional  
            open-space district formed pursuant to existing law.  

          7)Requires any local agency that imposes a surcharge to provide  
            an annual fiscal year-end report to the Legislature that  
            summarizes the total net revenues received and expended during  
            the fiscal year and the projects that were funded.  

          8)Sunsets the authority to impose a surcharge on January 1,  
            2025.  

           EXISTING LAW  : 

          1)Requires a vehicle registration fee of $46 to be paid for the  
            registration of every motor vehicle, except those expressly  
            exempt.  

          2)Authorizes a variety of additional fees related to the  
            operation of motor vehicles to be paid with the registration  
            to address various air quality and law enforcement issues.  

          3)Provides, in Article XIII C, Section 2 of the California  
            Constitution, that a special tax requires two-thirds voter  
            approval.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  The base fee for registering or renewing the  
          registration of most vehicles in California is $46, plus a $24  
          surcharge for additional personnel for the California Highway  
          Patrol. Existing law authorizes local agencies to impose  
          separate vehicle registration surcharges for a variety of  
          special programs, including $1 to abate abandoned vehicles; up  
          to $2 to deter, investigate, and prosecute vehicle theft; $1 ($2  
          for commercial vehicles) to fund fingerprint identification  
          programs; and up to $19 to mitigate air emissions from vehicles.  
           

          AB 1546 (Simitian), Chapter 931, Statutes of 2004, granted the  
          City/County Association of Governments of San Mateo County  








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          (C/CAG) the authority to impose an annual fee on motor vehicles  
          for programs to manage traffic congestion and stormwater  
          pollution.  SB 348 (Simitian), Chapter 377, Statutes of 2008,  
          extended this authority until January 1, 2013.  SB 613  
          (Simitian) of 2007, would have extended the authority until  
          January 1, 2019, but was vetoed by Governor Schwarzenegger.  SB  
          83 (Hancock), Chapter 554, Statues of 2009, authorized a  
          countywide transportation planning agency to impose an annual  
          fee of up to $10 on motor vehicles registered in the county to  
          fund programs to address congestion mitigation and motor  
          vehicle-induced pollution.  The definition for congestion  
          mitigation programs and projects includes, but is not limited  
          to, bicycle improvements and local street and road  
          rehabilitation.  

          This bill authorizes a city, county, or regional parks district  
          to impose, with a two-thirds vote of the electorate, a surcharge  
          of up to $5 on vehicles registered within its jurisdiction.  The  
          amount of the surcharge would have to be specified in an  
          ordinance adopted by the local agency and DMV would administer  
          the collection of fees and the distribution of net revenues to  
          the local agency.  The bill allows revenue from the fee to be  
          used for improvements to and maintenance of existing trails and  
          bikeways, the creation of new trails and bikeways, and the  
          development of other bicycle facilities, such as bike parking.  
          The surcharge could be collected only through January 1, 2025.  

          According to the author, "This bill provides a local funding  
          mechanism, not currently authorized in state law, to support  
          communities that want to build out bikeway and trail  
          infrastructure and bicycle network connectivity.  Despite clear  
          health and environmental benefits of bicycling, which are  
          affirmed by the state in its Active Transportation Program and  
          its Sustainable Communities Act (SB 375), local communities lack  
          stable funding sources to build out bicycle and trail networks.   
          Bike paths, trails, and bike parking facilities provide the  
          crucial safety and security features that are needed for people  
          of different ages and abilities to choose biking as a mode of  
          active transportation and recreation.  Promotion of bicycling  
          through a locally approved vehicle registration surcharge  
          benefits all community members, not just bicyclists or the  
          motorists who, while not currently bike riders, may become  
          comfortable enough to try bicycling.  The overall community  
          benefit is exemplified by data showing that for every 1% shift  
          in commute mode from cars to bikes, there is a 5% reduction in  








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          traffic congestion.  Studies enclosed herein show that 'if you  
          build bike infrastructure, the riders will come', and clear  
          safety benefits of facilities like protected or separated bike  
          lanes and paths."  

           Arguments in support  :  TransForm argues that according to  
          Caltrans' 2013 California Household Travel Survey, Californians  
          are taking twice as many trips by bicycle as they did in 2000,  
          and one-third of schoolchildren walk or ride their bikes to  
          school, but bicycle infrastructure is no keep up with this pace,  
          leading to unsafe road conditions for both bicyclists and  
          drivers. TransForm further argues that improving bicycle  
          infrastructure is a cost-effective way to improve safety  
          conditions for cyclists and drivers while providing a low-cost,  
          healthier, and cleaner alternative to driving.  

           Arguments in opposition  :  CalTax argues that although raising  
          revenue to improve bike trails and infrastructure enjoyed by  
          bicyclists is a noble goal, a vehicle registration surcharge is  
          not the right approach because bicycle infrastructure  
          improvements would not directly benefit the drivers who pay the  
          surcharge.  CalTax further argues that roads, bike trails, and  
          parks already are funded through various taxes and fees imposed  
          by local governments, and if local entities would like to raise  
          revenue for these causes they already possess the tools to do  
          so.  

           Double-referral  :  This bill was also referred to the Local  
          Government Committee, where it passed on June 18 with a vote of  
          7-0.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          East Bay Regional Park District (sponsor)
          Bike East Bay
          Breathe California
          California Bicycle Coalition 
          California Park & Recreation Society
          California State Association of Counties
          Coalition for Clean Air 
          Contra Costa Transportation Authority
          TransForm 
          Transportation Authority of Marin 








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            Opposition 
           
          Alliance of Automobile Manufacturers
          Association of California Car Clubs
          California Taxpayers Association

           
          Analysis Prepared by  :   Anya Lawler / TRANS. / (916) 319-2093