BILL ANALYSIS �
SB 1183
Page 1
SENATE THIRD READING
SB 1183 (DeSaulnier)
As Amended June 25, 2014
Majority vote
SENATE VOTE :26-9
LOCAL GOVERNMENT 7-0 TRANSPORTATION 10-4
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|Ayes:|Achadjian, Levine, Alejo, |Ayes:|Lowenthal, Achadjian, |
| |Bradford, Gordon, Mullin, | |Bloom, Bonta, Buchanan, |
| |Rendon | |Daly, Frazier, Gatto, |
| | | |Holden, Nazarian |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Linder, Patterson, |
| | | |Quirk-Silva, Waldron |
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APPROPRIATIONS 12-5
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|Ayes:|Gatto, Bocanegra, | | |
| |Bradford, | | |
| |Ian Calderon, Campos, | | |
| |Eggman, Gomez, Holden, | | |
| |Pan, Quirk, | | |
| |Ridley-Thomas, Weber | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Bigelow, Donnelly, Jones, | | |
| |Linder, Wagner | | |
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SUMMARY : Authorizes a city, county, or regional park district,
until January 1, 2025, to impose a vehicle registration
surcharge, with two-thirds voter approval, for bicycle
infrastructure improvements and maintenance, as specified.
Specifically, this bill :
1)Authorizes a city, county, or regional park district, until
January 1, 2025, to impose a vehicle registration surcharge as
a special tax with two-thirds voter approval for bicycle
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infrastructure, as specified.
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 revenues from the fee.
4)Requires the net revenues to be used by the local agency for
the following:
a) Improvement to paved and natural surface trails and
bikeways, including the rehabilitation, restoration, and
expansion of existing trails and bikeways;
b) Development of new trails and bikeways;
c) Improvement and development of other bicycle facilities,
including, but not limited to, bicycle parking facilities;
and,
d) Maintenance and upkeep of local and regional trail and
bikeway systems, networks and other bicycle facilities.
5)Prohibits the local agency from using more than 5% of the net
revenues for administrative expenses.
6)Requires the local agency that imposes the surcharge to
provide an annual fiscal year-end report to the Legislature
that contains the following information:
a) The total net revenues received from the surcharge and
expanded during the previous fiscal year; and,
b) A summary of the infrastructure projects funded by the
surcharge.
7)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."
EXISTING LAW :
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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 that are related to
the operation of motor vehicles to be paid with the
registration, to address certain air quality and law
enforcement issues.
3)Provides, in California Constitution Article XIII C, Section
2, that a special tax requires two-thirds voter approval.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)Estimated one-time costs to 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)
2)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)
3)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.
4)Unknown, likely minor, costs to local agencies that impose the
surcharge, to prepare and submit the required annual report to
the legislature.
COMMENTS :
1)Vehicle registration fee. Existing law establishes a basic
vehicle registration fee of $46, plus a $24 surcharge for
additional personnel for the California Highway Patrol, for
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the new or renewal registration of most vehicles or trailer
coaches. Existing law also authorizes local agencies to
impose separate vehicle registration fee surcharges in their
respective jurisdictions for a variety of special programs, to
abate abandoned vehicles, deter, investigate, and prosecute
vehicle theft, fund fingerprint identification programs, and
to mitigate vehicular air emissions.
AB 1546 (Simitian), Chapter 931, Statutes of 2004, granted the
City/County Association of Governments of San Mateo County the
authority to impose an annual fee on motor vehicles for
programs to manage traffic congestion and stormwater
pollution. This authority was extended until January 1, 2013,
by SB 348 (Simitian), Chapter 377, Statutes of 2008. 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
countywide transportation planning agencies to impose an
annual fee of up to $10 on motor vehicles registered in a
county to fund specified programs to address congestion
mitigation and motor vehicle induced pollution. The
definition for congestion mitigation programs and projects
include, but are not limited to, bicycle improvements and
local street and road rehabilitation.
2)Purpose of this bill. This bill authorizes cities, counties,
and regional parks districts to impose a surcharge, until
January 1, 2025, 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
deducting collection costs. This bill requires that net
revenues are used for improvements to paved and natural
surface trails, including the rehabilitation, restoration, and
expansion of existing trails, the development of new trails
and bikeways, the improvement and development of other bicycle
facilities, and the maintenance and upkeep of existing local
and regional trail and bikeway systems, networks, and
facilities. The local agency would only be able to use up to
5% of net revenues for their administrative expenses. Under
this bill local agencies that impose the surcharge would
report specified information annually to the Legislature.
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Under this bill the vehicle registration surcharge would be a
special tax subject to submittal to the electorate and
approval by a two-thirds vote, pursuant to California
Constitution Article XIII C. There are no nexus requirements
for a special tax. This bill is sponsored by the East Bay
Regional Park District.
3)Author's statement. 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 (Steinberg), Chapter 728, Statutes of 2008), 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 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."
4)Existing financial tools. According to a report authored by
CalTrans titled, Transportation Funding in California 2014,
"Regional and local governments provide approximately 49% in
transportation funding, whereas, the state provides 27% and
the federal government provides 24%." Transportation funding
at the local level comes from various sources including user
fees, subsidies, and property-related charges like property
taxes, benefit assessment districts, and developer fees.
Since 1995, there have been 47 countywide transportation
transaction and use tax measures, 34 of those for new taxes.
Only seven of those measures garnered the necessary two-thirds
voter approval.
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The California Taxpayers Association opposes this bill
arguing, "Roads, bike trails and parks already are funded
through various taxes and fees imposed by local governments.
If local entities would like to raise revenue for these
causes, they already possess the tools to do so."
The Legislature wish to ask supporters of the bill why
existing financial tools to raise revenue for bicycle
infrastructure are not sufficient and how they anticipate the
outcomes of the special tax measure authorized by this bill to
fare better at the local level than existing broader
transportation measures that also require a two-thirds vote.
5)Arguments in support. Supporters argue that this bill
provides an additional tool to raise revenue for bicycle
transportation facilities, which lack a stable ongoing funding
source, especially in the case of the construction and
maintenance of off-road bicycle trails and difficult to fund
intercity bikeways.
6)Arguments in opposition. Opposition argues that although
raising revenue to improve bike trails and infrastructure
enjoyed by bicyclists is a noble goal, vehicle registration
surcharge is not the right approach.
Analysis Prepared by : Misa Yokoi-Shelton / L. GOV. / (916)
319-3958
FN: 0004800