BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 406| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 CONTINUED SB 406 Page 2 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, CONTINUED SB 406 Page 3 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. CONTINUED SB 406 Page 4 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. CONTINUED SB 406 Page 5 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 CONTINUED SB 406 Page 6 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 CONTINUED SB 406 Page 7 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. CONTINUED SB 406 Page 8 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 CONTINUED SB 406 Page 9 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 CONTINUED SB 406 Page 10 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) CONTINUED SB 406 Page 11 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 CONTINUED SB 406 Page 12 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 **** END **** CONTINUED