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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