BILL NUMBER: SB 791 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 25, 2011
INTRODUCED BY Senator Steinberg
FEBRUARY 18, 2011
An act to amend Section 14536 of the Government Code,
relating to transportation. An act to add Chapter 2
(commencing with Section 55830) to Part 3 of Division 2 of Title 5 of
the Government Code, relating to transportatio n.
LEGISLATIVE COUNSEL'S DIGEST
SB 791, as amended, Steinberg. California Transportation
Commission: annual report. Regional congestion
reduction charge.
Existing law provides various funding sources for transportation
programs and capital improvement projects. Existing law provides for
designation of transportation planning agencies throughout the state
with various transportation planning and programming
responsibilities, including preparation of a regional transportation
plan. Certain of these agencies are also designated as metropolitan
planning organizations under federal law.
This bill would authorize a metropolitan planning organization,
subject to majority voter approval, to impose, for up to 30 years, a
regional transportation congestion reduction charge on purchasers of
motor vehicle fuel in all or part of its jurisdiction, which would be
collected by the fuel retailer or wholesaler and transmitted to the
State Board of Equalization. The bill would define motor vehicle fuel
for these purposes to include gasoline and diesel. A corresponding
vehicle registration charge would be imposed on electric vehicles
licensed to be driven on public roads, which would be collected by
the Department of Motor Vehicles. Prior to adopting a regional
congestion reduction charge, the metropolitan planning organization
would be required to make certain determinations, including that the
transportation demand reduction projects funded by the charge would
directly and specifically benefit motorists within the region by
reducing vehicle congestion so as to increase overall mobility for
motorists who are paying the charge. The bill would impose various
other requirements.
The bill would provide for revenues from the regional
transportation congestion reduction charge to be transferred by the
State Board of Equalization or the Department of Motor Vehicles, as
applicable, to the appropriate metropolitan planning organization.
The bill would authorize use of the revenues for certain
transportation projects and programs that have been identified in the
regional transportation plan, as specified. The bill would require
the board of supervisors in a county in the jurisdiction of the
metropolitan planning organization where the charge is to be imposed,
upon request of the organization, to submit the proposed charge to
the voters, and would require the organization to reimburse the
associated election costs. In certain counties, the charge would be
imposed by a county transportation commission rather than the
metropolitan planning organization.
Existing law requires the California Transportation Commission to
adopt an annual report for submission to the Legislature containing,
among other things, a summary of the commission's prior-year
decisions in allocating transportation capital outlay funds and an
identification of timely and relevant transportation issues facing
the state. Existing law, for the reports to be submitted between 2001
and 2008, requires a summary and discussion of certain loans and
transfers of transportation revenues and the cashflow and project
delivery impact of those loans and transfers.
This bill would delete the provisions relating to the loan and
transfer summary and discussion that was to be included in the
reports submitted between 2001 and 2008.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) Section 65080 of the Government Code requires each
transportation planning agency designated under Section 29532 or
29532.1 of that code to prepare and adopt a regional transportation
plan directed at achieving a coordinated and balanced regional
transportation system, including, but not limited to, mass
transportation, highway, railroad, maritime, bicycle, pedestrian,
goods movement, and aviation facilities and services.
(b) Federal law also requires metropolitan planning organizations
to prepare regional transportation plans that consider the need to
relieve congestion and to prevent congestion from occurring and to
consider congestion management strategies or actions that improve the
mobility of people and goods (23 C.F.R. 450.316).
(c) Achieving increased mobility within California's metropolitan
regions is essential for their economic growth and environmental
quality. Free movement of vehicles, goods, and services within a
region is a key goal of the regional transportation plan.
(d) In attempting to achieve a coordinated and balanced regional
transportation system that will achieve the greatest mobility for
individuals and businesses within the region, the transportation
planning agency must consider projects, taking into account land use
and other effects, including induced demand and induced growth, that
reduce vehicle congestion by increasing roadway and freeway capacity,
as well as projects that reduce vehicle congestion by decreasing
demand for roadway and freeway use.
(e) In many of California's urbanized areas, it is not practical
to increase roadway or freeway capacity because of land or
environmental constraints. In other parts of the state, the benefits
of increased roadway and freeway capacity can be short lived because
often land use changes occur that result in additional driving that
absorbs the new capacity. In those areas, projects to reduce demand
for roadway and freeway use, by providing alternate means of
transportation, may be the most practical way to achieve reduced
vehicle congestion.
(f) At the November 2, 2010, statewide general election, the
voters of California approved Proposition 26, which amended Section 3
of Article XIII A and Section 1 of Article XIII C of the California
Constitution. Section 3 of Article XIII A of the California
Constitution requires a two-thirds vote of the Legislature for any
change in a state statute that results in any taxpayer paying a
higher tax. Exceptions to the definition of "tax" were also adopted.
Section 1 of Article XIII C of the California Constitution adopts new
definitions, including a new definition of "special tax." Exceptions
to the definition of "special tax" were also adopted.
(g) An exception both to the definition of "tax" in Section 3 of
Article XIII A of the California Constitution, and to the definition
of "special tax" in Section 1 of Article XIII C of the California
Constitution, is a charge imposed for a specific benefit conferred or
privilege granted directly to the payor that is not provided to
those not charged, and which does not exceed the reasonable costs to
the state or local government of conferring the benefit or granting
the privilege.
(h) Proposition 26 also imposes a requirement on any charge
enacted without a two-thirds vote that the government "bears the
burden of proving by a preponderance of the evidence that a levy,
charge, or other exaction is not a tax, that the amount is no more
than necessary to cover the reasonable costs of the governmental
activity, and that the manner in which those costs are allocated to a
payor bear a fair or reasonable relationship to the payor's burdens
on, or benefits received from, the governmental activity"
(subdivision (d) of Section 3 of Article XIII A of the California
Constitution; Section 1 of Article XIII C of the California
Constitution).
(i) The requirements that the amount is not more than necessary to
cover the reasonable costs of the governmental activity and that the
manner in which those costs are allocated to a payor bear a fair or
reasonable relationship to the payor's burden on or benefits received
from the governmental activity restate language from the Sinclair
Paint Co. v. State Bd. of Equalization (1997) 15 Cal.4th 866, line of
cases (see also California Farm Bureau v. State Water Resources
Control Board (2011) 51 Cal.4th 421, 437-439).
(j) Under this standard, a regulatory fee does not become a tax
simply because the fee may be disproportionate to the service
rendered to individual payors. The question of proportionality is not
measured on an individual basis. Rather, it is measured
collectively, considering all rate payors (California Assn. of
Professional Scientists v. Department of Fish & Game (2000) 79
Cal.App.4th 935, 948). Thus, permissible fees must be related to the
overall cost of the government regulation. They need not be finely
calibrated to the precise benefit each individual fee payor might
derive (California Farm Bureau v. State Water Resources Control
Board, supra, at p. 438).
(k) Freeway and roadway users receive a specific benefit from
programs and projects that reduce vehicle congestion within a region
and, therefore, it is appropriate for transportation planning
agencies that are federally designated metropolitan planning
organizations to impose regional charges on such freeway and roadway
users that do not exceed the reasonable cost of reducing vehicle
congestion. Congestion reduction is a specific benefit provided to
the users of freeways and roadways that is particular and distinct to
those users over and above general benefits provided to the public
at large. The Legislature also finds that regional vehicle charges
are an appropriate method to charge freeway and roadway users for
receiving the specific benefit of reduced congestion, and that
individuals and businesses that do not pay regional vehicle charges
will not receive the specific benefit of reduced vehicle congestion.
(l) Freeway and roadway users also receive a specific benefit from
funding for maintenance and repair of those facilities, a specific
benefit to those users that is not enjoyed by the general public.
SEC. 2. Chapter 2 (commencing with Section 55830)
is added to Part 3 of Division 2 of Title 5 of the
Government Code , to read:
CHAPTER 2. REGIONAL CONGESTION REDUCTION CHARGE
55830. (a) Subject to the approval of the voters pursuant to
subdivision (f), a metropolitan planning organization designated
pursuant to Section 134 of Title 23 of the United States Code may
impose a regional congestion reduction charge in all or part of its
jurisdiction pursuant to this section. The charge shall become
operative on the first day of the first calendar quarter commencing
more than 90 days after voter approval.
(b) A regional congestion reduction charge imposed pursuant to
this chapter must satisfy all of the following:
(1) (A) The transportation projects and programs funded by the
charge would directly and specifically benefit motorists within the
region by reducing vehicle congestion and by providing capital
improvements for maintenance, safety, and rehabilitation so as to
increase overall mobility for motorists within the region who are
paying the charge.
(B) The metropolitan planning organization shall consider both
increased ridership on transit services as well as changes in land
use patterns during the planning horizon of the regional
transportation plan in determining the congestion relief that would
result from the transportation demand reduction projects.
(C) The metropolitan planning organization shall use travel demand
models consistent with Section 14522.1 and guidelines adopted by the
California Transportation Commission for transportation demand
models in making this determination.
(D) For purposes of this subdivision, "vehicle congestion" means
peak period travel speeds on regional freeways, thoroughfares, major
and minor arterials, and major connectors that are less than 60
percent of the free flow speeds.
(2) The specific benefits of reduced vehicle congestion are not
provided to those not charged.
(3) The amount of the charge does not exceed the reasonable costs
of providing the congestion reduction benefits identified in the
regional transportation plan.
(4) The manner in which the charge is allocated to a payor bears a
fair or reasonable relationship to the payor's congestion relief
benefit on regional freeways, thoroughfares, major and minor
arterials, and major connectors.
(5) The metropolitan planning organization shall adopt any
additional findings necessary to establish that the charge satisfies
the requirements of paragraph (1) of subdivision (e) of Section 1 of
Article XIII C of the California Constitution.
(c) The charge shall be in addition to any other levies that the
metropolitan planning organization is authorized to impose.
(1) The charge may be implemented for a period not to exceed 30
years on all purchasers of motor vehicle fuels sold in all or part of
the jurisdiction of the metropolitan planning organization. The rate
of the charge shall be established by the metropolitan planning
organization on a per gallon basis.
(2) With respect to electric vehicles that are licensed to be
driven on public roads and that do not utilize motor vehicle fuel,
the charge may be imposed on the vehicle registration for vehicles
with a registration address in that part of the region where the
charge on motor vehicle fuel is imposed. The charge shall be for the
same period of time as the charge on motor vehicle fuel. The
surcharge shall be collected by the Department of Motor Vehicles and,
after deducting the department's administrative costs, the net
revenues shall be transferred quarterly to the metropolitan planning
organization.
(3) As used in this section, motor vehicle fuel includes, but is
not limited to, gasoline and diesel fuel, which shall have the same
meanings set forth in Sections 7316 and 60022, respectively, of the
Revenue and Taxation Code.
(d) (1) Revenues from the charge may be expended for (A) transit
capital, operations, and maintenance costs, (B) bicycle and
pedestrian programs and projects, (C) programs and projects that
would demonstrably reduce the region's rate of growth from 2005
levels in vehicle miles traveled by single-occupant vehicles, (D)
conversion of high-occupancy vehicle lanes to high occupancy toll
lanes or other variably tolled express lanes, (E) capital
improvements relative to maintenance, safety, and rehabilitation of
state highways and bridges as described in subdivision (a) of Section
14526.5 and equivalent projects on local streets and roads, and (F)
related administrative costs. A metropolitan planning organization
that includes a regional congestion reduction charge in its regional
transportation plan shall identify the programs and projects that
would be funded by the charge in the financial element of the
regional transportation plan. The financial element shall also
identify the eligible transit operators and other recipients and the
amount of funds that would be needed from all sources, including the
regional congestion reduction charge, for each year of the programs
through the planning horizon of the regional transportation plan.
(2) A charge authorized by this section shall provide sufficient
funding, together with other funding sources realistically projected
to be available, to complete each project or program, or to operate
and maintain each program for the duration of the project or program
as identified in the regional transportation plan.
(e) (1) Following the adoption by the metropolitan planning
organization of a regional transportation plan, or an amendment to a
regional transportation plan, that provides for a charge pursuant to
this section, the board of supervisors of each county and city and
county in the jurisdiction of the metropolitan planning organization
where the charge is to be imposed shall, upon the request of the
metropolitan planning organization, submit to the voters at a local
election consolidated with a statewide primary or general election
specified by the metropolitan planning organization, a measure,
adopted by the organization, authorizing the organization to impose
the charge within all or part of the region consistent with
subdivision (c).
(2) The metropolitan planning organization shall reimburse each
county or city and county in the affected part of the region for the
cost of submitting the measure to the voters. These costs shall be
reimbursed from revenues derived from the charge if the measure is
approved by the voters or, if the measure is not approved, from any
funds of the metropolitan planning organization that may be lawfully
used for that purpose.
(f) (1) Upon approval of the measure by a majority of the voters
voting at an election within the region or the affected part of the
region where the charge is to be imposed, the metropolitan planning
organization may impose the charge. The charge shall be imposed on
the purchaser of motor vehicle fuel at the point of retail or
wholesale sale in each county or city and county within the region
where the charge is imposed, and shall be collected from the
purchaser by the retailer or wholesaler and transmitted to the State
Board of Equalization. The measure shall provide for refund, by the
board, of charges paid for motor vehicle fuel that is not used in a
vehicle on public roads.
(2) The motor vehicle fuel charge required to be collected by the
retailer or wholesaler, and any amount unreturned to the customer
which is not the charge but was collected from the customer under the
representation that it was the charge, constitute debts owed by the
retailer or the wholesaler to the state.
(3) The motor vehicle fuel charges imposed by this section are due
and payable quarterly on or before the last day of the month next
succeeding each calendar quarter. The payment shall be accompanied by
a return in the form prescribed by the State Board of Equalization.
(g) (1) The metropolitan planning organization shall contract with
the State Board of Equalization for the administration of the motor
vehicle fuel charge imposed under this section, and the board shall
be reimbursed for its actual cost in the administration of the
charge, including administration of refunds, and for its actual cost
of preparation to administer the charge based upon an independent
audit.
(2) The State Board of Equalization shall collect the motor
vehicle fuel charges pursuant to the Fee Collection Procedures Law
(Part 30 (commencing with Section 55001) of Division 2 of the Revenue
and Taxation Code).
(3) After deducting its cost of administering the motor vehicle
fuel charge, the State Board of Equalization shall periodically
transmit the net revenues, less refunds, to the metropolitan planning
organization as promptly as possible. Transmittal of those revenues
shall be made at least twice in each calendar quarter.
(h) The net revenues of the motor vehicle fuel and electric
vehicle registration charge shall be deposited into a Regional
Congestion Reduction Fund, to be created and administered by the
metropolitan planning organization, and shall be expended in
accordance with this section.
(i) (1) In an area where a charge has been approved by the voters,
the metropolitan planning organization shall appoint an independent
taxpayers' oversight committee to audit and oversee the programs and
projects funded by the charge to ensure that expenditures are
consistent with this chapter and with the measure submitted to the
voters.
(2) The committee shall be comprised of three persons, each of
whom shall be a retired federal or state judge. Committee members
shall be selected in a public meeting by the board of the
metropolitan planning organization. No person currently serving as an
elected or appointed city, county, special district, state, or
federal public officeholder shall be eligible to serve as a member of
the committee. The committee shall select no fewer than six
taxpayers representing a fair cross section of the public to serve on
an advisory committee.
(j) (1) The metropolitan planning organization may issue bonds
backed solely by revenues from the charge authorized by this section.
Revenues from the charge may be pledged for payment of debt service
on those bonds.
(2) For purposes of this section, "bonds" means indebtedness and
securities of any kind or class, including bonds, notes, bond
anticipation notes, and commercial paper.
(3) The metropolitan planning organization may issue bonds payable
from the revenues from the charge authorized by this section at any
time or from time to time. The bonds may be secured by a pledge of
those revenues. The metropolitan planning organization may issue
bonds to refund, purchase, or otherwise acquire bonds on terms and
conditions as it shall approve.
(4) The bonds may be sold at public or private sale in the forms
and on such terms and conditions as the metropolitan planning
organization shall approve. The metropolitan planning organization
may pledge all or any part of the revenues from the charge to secure
any repayment or reimbursement obligations of the metropolitan
planning organization to any provider of insurance or a guarantee of
liquidity or credit facility entered into to provide for the payment
of the bonds. The metropolitan planning organization may employ and
compensate bond counsel, financial consultants, and other advisers
determined necessary by it in connection with the issuance and sale
of the bonds.
(5) Bonds issued under this chapter shall not be a debt or
liability of any political subdivision of this state, or a pledge of
the full faith and credit of the state or of any political
subdivision, but shall be payable solely from the funds provided in
this chapter.
(6) Bonds issued by the metropolitan planning organization are
legal investments for all trust funds, the funds of all insurance
companies, banks, trust companies, executors, administrators,
trustees, and other fiduciaries. The bonds are securities that may
legally be deposited with, and received by, any state or municipal
officer or agency or political subdivision of the state for any
purpose for which the deposit of bonds or obligations of the state is
now, or may hereafter be, authorized by law, including deposits to
secure public funds.
(7) Interest earned on any bonds issued under this chapter shall
at all times be free from state personal income tax and corporate
income tax.
(8) The state hereby pledges to and agrees with the holders of
bonds issued by the metropolitan planning organization that the state
will not limit, alter, or restrict the rights hereby vested in the
metropolitan planning organization to fulfill each pledge of revenues
and any other terms of any agreement made with or for the benefit of
the holders of bonds or in any way impair the rights or remedies of
the holders of bonds.
(k) Notwithstanding any other provision of this section, in the
region served by the multicounty transportation planning agency
described in Section 130004 of the Public Utilities Code, a county
transportation commission may impose the charge within the county of
its jurisdiction if approved by a majority of the voters in that
county. The requirements of subdivision (b) shall apply to the county
within the region specified in this subdivision. In this case, the
county transportation commission, rather than the metropolitan
planning organization, shall exercise all of the powers under this
section relative to imposition of the charge.
(l) (1) The requirement for voter approval pursuant to subdivision
(f) is a requirement for a charge imposed specifically pursuant to
this section and is not a requirement of the California Constitution.
(2) The provisions of this chapter shall not limit the rights of
local governments to impose any fee or charge otherwise permitted
under the California Constitution.
SECTION 1. Section 14536 of the Government Code
is amended to read:
14536. (a) The annual report shall include an explanation and
summary of major policies and decisions adopted by the commission
during the previously completed state and federal fiscal year, with
an explanation of any changes in policy associated with the
performance of its duties and responsibilities over the past year.
(b) The annual report may also include a discussion of any
significant upcoming transportation issues anticipated to be of
concern to the public and the Legislature.