BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                              UNFINISHED BUSINESS


          Bill No:  SB 406
          Author:   DeSaulnier (D)
          Amended:  9/4/09
          Vote:     21

           
           SENATE LOCAL GOVERNMENT COMMITTEE  :  3-2, 4/15/09
          AYES:  Wiggins, Kehoe, Wolk
          NOES:  Cox, Aanestad

           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  6-4, 4/28/09
          AYES:  Lowenthal, DeSaulnier, Kehoe, Pavley, Simitian, Wolk
          NOES:  Huff, Ashburn, Harman, Hollingsworth
          NO VOTE RECORDED:  Oropeza

           SENATE APPROPRIATIONS COMMITTEE  :  7-5, 5/28/09
          AYES:  Kehoe, Corbett, DeSaulnier, Hancock, Leno, Oropeza,  
            Yee
          NOES:  Cox, Denham, Runner, Walters, Wyland
          NO VOTE RECORDED:  Wolk

           SENATE FLOOR  :  21-16, 6/2/09
          AYES:  Alquist, Calderon, Cedillo, Corbett, DeSaulnier,  
            Florez, Hancock, Kehoe, Leno, Liu, Lowenthal, Oropeza,  
            Padilla, Pavley, Romero, Simitian, Steinberg, Wiggins,  
            Wolk, Wright, Yee
          NOES:  Aanestad, Ashburn, Benoit, Cogdill, Correa, Cox,  
            Denham, Dutton, Harman, Hollingsworth, Huff, Maldonado,  
            Negrete McLeod, Strickland, Walters, Wyland
          NO VOTE RECORDED:  Ducheny, Runner, Vacancy

           ASSEMBLY FLOOR  :  47-31, 9/11/09 - See last page for vote

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           SUBJECT  :    Land use:  environmental quality

           SOURCE  :     California Association of Councils of  
          Governments


           DIGEST  :    This bill authorizes an additional fee one  
          dollar or two dollars on vehicle registration through an  
          existing fee mechanism to be used for planning purposes  
          related to SB 375 (Steinberg), Chapter 728, Statutes of  
          2008, and proposes new duties, membership, and funding for  
          the Strategic Growth Council and the Planning Advisory and  
          Assistance Council.

           Assembly Amendments  add provision regarding specified air  
          quality management districts authorization for fee  
          increases and add provisions to further implement SB 375  
          (Steinberg) as well as clarifying changes.

           ANALYSIS  :    Existing law establishes Office of Planning  
          and Research (OPR) within the Governor's office as the  
          state's comprehensive planning agency.  The Planning  
          Advisory and Assistance Council (PAAC) within OPR are  
          responsible for various land-use planning related  
          activities, including 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. 

          SB 375 (Steinberg), requires each metropolitan planning  
          organization (MPO) to include within its regional  
          transportation plan an subregional sustainable communities  
          strategies (SCS) designed to achieve specified targets for  
          greenhouse gas (GHG) emissions reduction.  If an SCS does  
          not achieve the reduction target, the MPO must prepare an  
          alternative planning strategy (APS). In some regions,  

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          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 Strategic Growth Council (SGC), consisting of the  
          Director of OPR, the Secretary of the 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 authorizes an additional fee of one dollar or two  
          dollars on vehicle registration through an existing fee  
          mechanism to be used for planning purposes related to SB  
          375, and proposes new duties, membership, and funding for  
          SGC and the PAAC.

          This bill: 

           1.Adds to the membership of PAAC, the following members:

             A.    Seven representatives of regional planning  
                organizations.

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             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
             F.    One member appointed by the Senate Committee on  
                Rules. 

           2.Provides that representatives on PAAC from regional  
             planning organizations shall be selected by the Director  
             of OPR as specified from: 

             A.    Nominees submitted by the regional planning  
                organization and from the governing body of each of  
                the following: 

                (1)      The Southern California Association of  
                   Governments (SCAG).

                (2)      A member of the governing body for both he  
                   Metropolitan Transportation Commission (MTC) and  
                   the Association of Bay Area Governments (ABAG).

                (3)      The San Diego Association of Governments  
                   (SANDAG).

                (4)      The Sacramento Area Council of Governments  
                   (SACOG).

                (5)      The San Joaquin Valley Regional Policy  
                   Council (SJVRPC).

             B.    Nominees submitted by the California Association  
                of Councils of Governments (CALCOG) from: 

                (1)      A metropolitan planning organization (MPO)  
                   or council of governments (COG) that is not  
                   identified in 2) a) above.

                (2)      A regional transportation planning agency  
                   that is neither an MPO nor a COG. 


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           3.Adds new duties to the responsibility of PAAC,  
             including: 

             A.    Working with SGC, regional agencies, and with  
                cities and counties to facilitate the  
                implementation of regional blueprint plans.

             B.    Developing and proposing recommendations to SGC,  
                the Department of General Services (DGS), the State  
                Allocation Board, the Department of Housing and  
                Community Development (HCD), the Department of  
                Transportation (Caltrans), CTC, and any other state  
                agencies that affect land use, housing, or  
                transportation in order to facilitate coordination  
                between regional blueprint plans and state growth  
                and infrastructure funding plans and programs that  
                facilitate the implementation of regional blueprint  
                plans.

             C.    Receiving reports, including, but not limited  
                to, a copy of the five-year infrastructure plan.

             D.    Reporting to the Legislature on regional  
                performance measures, evaluating the progress of  
                each region of the state in improving results for  
                residents in employment, environmental protection,  
                education, housing, mobility, and other criteria as  
                determined by PAAC. 

           4.Specifies that PAAC shall provide the Legislature with  
             updates to the report specified in #3d above  
             periodically, as the PAAC determines is required. 

           5.Provides that PAAC shall commence the functions  
             enumerated in 3) and 4) above when sufficient funding,  
             as determined by PAAC, exists from revenue transmitted  
             to PAAC by MPOs, COGs, or county transportation  
             commissions and subregional COGs jointly preparing SCS.

           6.Requires the DMV, upon request by an MPO, COG, or county  
             transportation commission and a subregional COG jointly  
             preparing a subregional SCS, to increase certain fees on  
             motor vehicle registration by one dollar or two dollars,  
             on a vehicle registered to an owner with an address in  

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             its jurisdiction. 

           7.Requires the DMV to transmit the additional fee revenue  
             to the MPO, COG or county transportation commission and  
             subregional COG jointly preparing a subregional SCS that  
             requested the fee increase. 

           8.Provides, in order to impose the additional fee, that  
             the MPO, COG, or county transportation commission and  
             subregional COG jointly preparing a subregional SCS,  
             must adopt a resolution authorizing the additional fee  
             amount.

           9.Provides that a resolution by the MTC or ABAG to  
             authorize the additional fee amount must be jointly  
             adopted by resolution of both entities, and the revenue  
             from the additional fee amount shall be divided in  
             accordance with an agreement between these two entities.  


          10.Provides that a resolution by a county transportation  
             commission or a subregional COG within the jurisdiction  
             of the SCAG shall be jointly adopted by resolution of  
             both entities, and the revenue from the additional fee  
             amount shall be divided in accordance with an agreement  
             between the two entities. 

          11.Provides that the additional fee shall be applied to an  
             original vehicle registration occurring on or after six  
             months following the adoption of the resolution by the  
             MPO, COG, or a county transportation commission and a  
             subregional COG jointly preparing an SCS, and to a  
             renewal of registration with an expiration date on or  
             after that six-month period.

          12.Provides that all revenue received by the authorization  
             of an additional fee amount shall be used solely to  
             develop a SCS or a regional blueprint plan to identify  
             land use strategies to reduce the use of motor vehicles  
             in its jurisdiction and carry out applicable  
             transportation- related activities necessary to  
             implement the plan, and thereby achieve the greenhouse  
             gas emission reduction target as specified in Government  
             Code Section 65080, and to implement a SCS or regional  

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             blueprint plan that achieves the greenhouse gas emission  
             reduction target.

          13.Provides that if the additional fee exceeds one dollar,  
             all amounts above one dollar in a jurisdiction with a  
             population greater than 300,000 shall be used to 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.

          14.Provides that the entities shall transmit five percent  
             of all revenue received from the first one dollar of the  
             additional fee imposed to the PAAC for the performance  
             of the new duties of the PAAC, as specified. 

          15.Allows the MPO, the COG, or a county transportation  
             commission and a subregional COG jointly preparing a  
             subregional SCS, pursuant to an agreement with the local  
             AQMD that has responsibility over the jurisdiction, to  
             divide revenues received from the imposition of an  
             additional fee jointly with the local AQMD.

          16.Provides that all revenue received by the local AQMD  
             shall be used to assist local and regional governments  
             in reducing greenhouse gas (GHG) emissions, including,  
             but not limited to, all of the following:

             A.    Assistance in the development of a subregional  
                SCS.

             B.    Assistance in the development of local GHG  
                emissions inventories.

             C.    Assistance in the development of GHG emission  
                reduction strategies in general plans.

             D.    Development and assistance of California  
                Environmental Quality Act (CEQA) guidelines and  
                review of GHG emissions in CEQA analyses.

             E.    Consultation and development of local climate  
                action plans.


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             F.    Project specific consultation work to reduce GHG  
                emissions from local transportation and land use  
                decisions. 

          17.Adds, to several Health and Safety Code sections that  
             allow for the imposition of fees on motor vehicle  
             registration, language that specifies that if an MPO,  
             COG, or a county transportation commission and a  
             subregional COG jointly preparing and SCS authorizes an  
             increase in the fee pursuant to provisions of this bill  
             (Section 65083 of the Government Code), that the  
             district shall not be subject to the conditions of the  
             fee authorization contained in that code section.

          18.Provides that an SCS and an alternative planning  
             strategy (APS) shall both be considered to be a regional  
             blueprint.

          19.Adds a new duty for SGC to consult with and coordinate  
             its recommendations with PAAC. 

          20.Requires the DMV, if requested by the Sacramento AQMD or  
             the MPO which includes the Sacramento AQMD within its  
             boundaries, to impose and collect a surcharge on the  
             vehicle registration fee, not to exceed $3, if the MPO  
             authorizes the imposition of the fee pursuant to Section  
             65083 of the Government Code. 

          21.Requires that the DMV, if requested by an MPO, COG, or  
             county transportation commission and a subregional COG  
             jointly preparing an SCS, collect an additional fee of  
             one dollar or two dollars and transmit that additional  
             fee revenue to the requesting entity on a quarterly  
             basis. 

          22.Requires the MPO, the COG, or the county transportation  
             commission and the subregional COG jointly preparing a  
             subregional SCS, to pay for the costs identified by DMV  
             to administer the additional fee; and requires those  
             entities to contract with the DMV to pay for the initial  
             setup and programming costs identified by DMV. 

          23.Requires the initial setup and programming costs of the  
             DMV to be reimbursed by the requesting entity from the  

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             additional fee revenues collected. 

          24.Requires the DMV, if requested by a county air pollution  
             control district, AQMD, or unified or regional air  
             pollution control district, and by a COG, MPO, or a  
             transportation planning agency pursuant to provisions of  
             this bill (Section 65083 of the Government Code), to  
             collect fees relating to the provisions of this bill  
             upon the registration or renewal of registration of any  
             motor vehicle registered in the district, except those  
             vehicles that are expressly exempted in statute from the  
             payment of registration fees. 

          25.Provides, after deducting administrative costs, that the  
             DMV shall distribute the revenues to the districts,  
             MPOs, COGs, and transportation planning agencies based  
             upon the amount of fees collected from motor vehicles  
             registered within each district, COG, MPO, or  
             transportation planning agency.

          26.Specifies that the DMV may annually expend for its costs  
             not more than the following percentages of the fees  
             collected: 

             A.    Five percent during the first year after the  
                operative date the fee is imposed or increased.

             B.    Three percent during the second year after the  
                operative date the fee is imposed or increased.

             C.    One percent during any subsequent year. 

          27.Makes other findings and declarations, and expresses the  
             intent of the Legislature to update the duties and  
             composition of the PAAC to assist in the state's land  
             use planning processes by providing funding to support  
             the development and implementation for regional  
             blueprints and related planning.

           Background
           
          SB 375 (Steinberg), requires that each MPO and COG include  
          a sustainable communities strategy reflecting preferred  
          land uses as part of its regional transportation plan.  The  

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          SCS will build on regional blueprints already being  
          prepared in these regions.  Regional blueprints are the  
          result of voluntary cooperative efforts by cities and  
          counties in a region to develop a coordinated and  
          integrated approach to land use planning.  Regional  
          blueprints seek to address the following: mobility,  
          congestion, transit use, infill development, housing supply  
          and the presence of farmland and habitat in communities.

          With California's population predicted to grow by 16  
          million over the next two decades, successfully  
          accommodating this growth depends upon the ability of  
          regional and local governments to attract development  
          projects that promote the goals of regional planning.  
          Regions and cities need state agencies to act in concert  
          with local officials to accomplish these goals and the  
          larger regional and state goals of improved quality of  
          life, air quality and economic growth.  To successfully  
          implement SB 375 and its required regional transportation  
          plans to address greenhouse gases, regional and local  
          governments need resources for strategic planning and  
          opportunities for coordination with the efforts of the  
          Governor's Strategic Growth Council and other state  
          agencies as required by the enactment of SB 732  
          (Steinberg).

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Assembly Appropriations Committee, one  
          time programming/startup costs to DMV of $150,000.  Minor  
          ongoing costs to administer the program.  One time costs  
          reimbursed from the local agency first approving the fee.   
          Subsequent agencies approving the fee would reimburse the  
          first agency for start up costs on a pro-rata basis.   
          Ongoing costs by DMV and local air boards for levying and  
          distributing the fee would be deducted from fee proceeds. 

          Fee revenues to local agencies of up to $63 million  
          annually, if all agencies approved a two dollar increase.   
          Of this maximum amount, $1.5 million annually would be  
          transferred to PAAC to fund its expanded operations.

           SUPPORT  :   (Verified  9/11/09)

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          California Association of Councils of Governments (source)
          Association of Bay Area Governments
          American Federation of State, County and Municipal  
          Employees
          California League of Conservation Voters
          Metropolitan Transportation Commission

           OPPOSITION  :    (Verified  9/11/09)

          California New Car Dealers Association
          California Taxpayers Association
          City of Murrieta
          Department of Motor Vehicles
          Orange County Division of the League of Cities
          Orange County Transportation Authority
          San Diego Association of Governments

           ARGUMENTS IN SUPPORT  :    According to the sponsor, the  
          California Association of Councils of Governments, this  
          bill "provides a permanent funding source for the regional  
          and local planning required to implement SB 375, and also  
          creates a council with local officials to advise the  
          Strategic Growth Council and thereby, coordinates state  
          investments with local and regional SB 375 implementation  
          strategies."  Further, "funding and coordination are  
          necessary to enable regional and local governments to  
          successfully plan for implementation [of SB 375], which not  
          only addresses greenhouse gas issues, but calls for a more  
          efficient land use pattern which will reduce traffic  
          congestion, support affordable housing, and make  
          California's urban regions a more attractive location for  
          economic development." 

           ARGUMENTS IN OPPOSITION  :    The California New Car Dealers  
          Association states that California motorists are already  
          overburdened with hidden vehicle fees. In addition to the  
          annual Vehicle License Fee, which will increase from 0.65  
                                                                            percent to 1.15 percent of a vehicle's value next month,  
          and annual $34 vehicle registration fees, vehicle owners  
          are also subject to "add-on" fees:  one to seven dollars  
          annual air quality district fee, $20 smog abatement fee for  
          vehicles four model-years old or newer, one dollar annual  
          abandoned vehicle trust fee, $22 annual CHP fee; one dollar  

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          annual freeway call box fee; one dollar annual theft  
          deterrence fee; one dollar annual fingerprint  
          identification fee; and, the one dollar.75 per tire  
          California tire fee.  The dealers believe there continues  
          to be no reason to further increase the cost of vehicle  
          ownership in California, unless the voters within the  
          jurisdictions affected elect to tax themselves. 

          The San Diego Association of Governments opposes the bill  
          because it would rather have the state impose a uniform fee  
          for the purpose of funding blueprint and SCS work.  
           

           ASSEMBLY FLOOR  : 
          AYES:  Ammiano, Arambula, Beall, Blumenfield, Bradford,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Coto, Davis, De La Torre, De Leon, Eng, Evans,  
            Feuer, Fong, Fuentes, Furutani, Hall, Hayashi, Hernandez,  
            Hill, Huffman, Jones, Krekorian, Lieu, Bonnie Lowenthal,  
            Ma, Mendoza, Monning, Nava, John A. Perez, Portantino,  
            Ruskin, Salas, Saldana, Skinner, Solorio, Swanson,  
            Torlakson, Torres, Torrico, Yamada, Bass
          NOES:  Adams, Anderson, Bill Berryhill, Tom Berryhill,  
            Blakeslee, Conway, Cook, DeVore, Emmerson, Fletcher,  
            Fuller, Gaines, Galgiani, Garrick, Gilmore, Hagman,  
            Harkey, Huber, Jeffries, Knight, Logue, Miller, Nestande,  
            Niello, Nielsen, V. Manuel Perez, Silva, Smyth, Audra  
            Strickland, Tran, Villines
          NO VOTE RECORDED:  Block, Vacancy


          AGB:do  9/16/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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