The Off-Highway Motor Vehicle Recreation Act of 2003 (act) provides for the acquisition, operation, and funding of state off-highway vehicular recreation areas and trails, establishes the Off-Highway Motor Vehicle Recreation Commission and the Division of Off-Highway Motor Vehicle Recreation within the Department of Motor Vehicles, and provides a grant program for, among other things, acquisition, administration, maintenance, and operation of areas and facilities associated with the use of off-highway motor vehicles. These provisions are to be repealed on January 1, 2018.

This bill would extend the operation of the act indefinitely. until January 1, 2019, unless a specified report is not received by the Legislature by January 1, 2018, in which case the act would be repealed on July 1, 2018.

Existing law generally imposes a service fee of $7 for the issuance or renewal of identification of off-highway motor vehicles subject to identification, and a special fee of $33 paid at the time of payment of the service fee. Existing law requires the special fees, specified use fees for state vehicular recreation areas, and other specified funds to be deposited in the Off-Highway Vehicle Trust Fund, and requires moneys in the fund, upon appropriation, to be allocated for specified purposes related to off-highway recreation. These provisions are to be repealed on January 1, 2018.

This bill would extend the operation of these provisions indefinitely. provisions, including the authorization for the special fee, until January 1, 2019, unless a specified report is not received by the Legislature by January 1, 2018, in which case the provisions would be repealed on July 1, 2018.

This bill would declare that it is to take effect immediately as an urgency statute.

The Off-Highway Motor Vehicle Recreation Act of 2003 (act) provides for the acquisition, operation, and funding of state off-highway vehicular recreation areas and trails, establishes the Off-Highway Motor Vehicle Recreation Commission and the Division of Off-Highway Motor Vehicle Recreation within the Department of Motor Vehicles, and provides a grant program for, among other things, acquisition, administration, maintenance, and operation of areas and facilities associated with the use of off-highway motor vehicles. These provisions are to be repealed on January 1, 2018.

This bill would extend the operation of the act indefinitely.

Existing law generally imposes a service fee of $7 for the issuance or renewal of identification of off-highway motor vehicles subject to identification, and a special fee of $33 paid at the time of payment of the service fee. Existing law requires the special fees, specified use fees for state vehicular recreation areas, and other specified funds to be deposited in the Off-Highway Vehicle Trust Fund, and requires moneys in the fund, upon appropriation, to be allocated for specified purposes related to off-highway recreation. These provisions are to be repealed on January 1, 2018.

This bill would extend the operation of these provisions indefinitely.

This bill would declare that it is to take effect immediately as an urgency statute.

Date of Hearing: May 3, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 1077

Author:(O'Donnell) – As Amended Ver:April 5, 2017

Urgency: Yes State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill extends the operation of the Off-Highway Motor Vehicle Recreation Act (Act) of 2003 until January 1, 2019 unless a specified report is not received by the Legislature by January 1, 2018. Specifically, this bill:

1. Extends the sunset date from January 1, 2018 to January 1, 2019 on the Off-Highway Vehicle (OHV) program, which provides for the acquisition, operation, and funding of state off-highway vehicular recreation areas and trails.
2. Provides that if the report on the distribution of fuel taxes is not received by the Legislature on January 1, 2018, the Act is repealed on July 1, 2018.
3. Transfers any unencumbered funds remaining in the Off-Highway Trust Fund to the GF on either January 1, 2019 or July 1, 2018, whichever becomes operative.

FISCAL EFFECT:

1. This bill re-establishes the OHV registration fees that will expire on January 1, 2018 and creates cost pressures, in the tens of millions of dollars range, for various grant programs and cooperative agreements (OHV Trust Fund).
2. Potential transfer of tens of millions of dollars from the OHV Trust Fund to the GF if the report is not released. Increased unknown significant costs on other Department of Parks and Recreation (DPR) funds to maintain existing properties.

COMMENTS:

1. Purpose. According to the author, as the demand for outdoor recreational opportunities by California citizens continues to increase, reauthorization of the Off-Highway Motor Vehicle Recreation (OHMVR) Program is needed in order to accommodate expanded, ecologically-balanced OHV recreation. This bill extends the OHMVR to ensure the principles of responsible OHV recreation remain available in California.
2. Background. The OHV program receives no support from the state’s General Fund—all funding comes from the OHV Trust Fund. Funding received by the trust fund includes: 1) fuel taxes; 2) OHV registration fees; and, 3) entrance fees.

Fuel tax transfers to the trust fund were once calculated based on statewide studies that estimated the total gallons of gasoline burned in the course of OHV recreation. SB 742 (Steinberg), Chapter 541, Statutes of 2007, established that future transfers would be based on the percentage of fuel taxes transferred in 2007, rather than depending on studies to estimate the amount of gasoline used by OHVs. This amount was reduced by $10 million annually in the 2011-12 Budget.

OHV registration is commonly referred to as the Green Sticker program. OHV registration fees are currently $52 every two years. Of this amount, $33 is directed to the OHV Trust Fund, and the remainder is distributed to the California Highway Patrol, California Department of Motor Vehicles, and to counties (in-lieu of property taxes).

Within the funding for the program, the following percentages are required to be expended for grants and cooperative agreements for the following purposes:

1. 50% for the acquisition, maintenance, operation, planning, development, or conservation of trails and facilities associated with the use of OHVs for recreation or motorized access to non-motorized recreation;
2. 25% for projects that provide ecological restoration or repair to habitat damaged by either legal or illegal OHV use;
3. 20% for local and federal law enforcement entities for personnel and related equipment;
4. 5% for the comprehensive education that teaches OHV safety, environmental responsibility, and respect for private property, or to provide safety programs associated with OHV recreation.
5. Renewal of the Program. SB 853 (Committee on Budget and Fiscal Review), Chapter 27, Statutes of 2014, provided for a specific report regarding the distribution of fuel taxes. This report was requested in the 2014 Budget Act, well in time for the Legislature to review its finding and to incorporate them into any changes to the program prior to the pending sunset in 2018.

However, the Administration did not release the required report that would determine the appropriate adjustment to the amount of money transferred from the fuel account to the fund, and to update the estimate of the amount of money attributable to taxes imposed upon distribution of motor vehicle fuel related to specified off-highway motor vehicles and off-highway vehicle activities. This makes the evaluation of the renewal of the program substantially difficult. At the same time, DPR has put forward a number of budget change proposals relative to the program, even though there has been no extension of the program beyond 2018.

Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081

Date of Hearing: April 4, 2017

ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE

Eduardo Garcia, Chair

ABPCA Bill Id:AB 1077 (

Author:O'Donnell) – As Introduced Ver:February 16, 2017

SUBJECT: Off-highway vehicles

SUMMARY: Extends the operation of the Off-Highway Vehicle program indefinitely. Specifically, this bill:

Deletes a sunset date of January 1, 2018, for the operation of the Off-Highway Motor Vehicle Recreation Act of 2003, which provides for the acquisition, operation, and funding of state off-highway vehicular recreation areas and trails.

EXISTING LAW:

1. Established, in 1971, the Off-Highway Vehicle (OHV) Program in Chapter 1.25 of Division 5 of the Public Resources Code (commencing with Section 5090.01) to manage off-highway recreation in a manner that also protects California’s natural and cultural resources.
2. The Off-Highway Motor Vehicle Recreation Act of 2003 (Act) created the Division of Off-Highway Motor Vehicle Recreation (Division) within the Department of Parks and Recreation (DPR). The Division plans and acquires lands in state vehicular recreation areas (SVRA) which are units with the state park system. The division also implements a grants program from revenues in the Off-Highway Vehicle Trust Fund (Fund) which by law assigns percentages of those revenues for various purposes related to off-highway vehicles. The Fund is also used to support the division and to conduct its other activities. It receives a certain percentage of fuel taxes associated with off-highway vehicle activities as described below.
3. Imposes a service fee of $7 for the issuance and renewal of identification of off-highway motor vehicles subject to identification, and special fee of $33 paid at the time of payment of the service fees.
4. Requires certain moneys attributable to taxes imposed upon distribution of motor fuel related to specified off-highway motor vehicles and off-highway vehicle activities to be transferred monthly from the Motor Vehicle Account to the OHV Trust Fund according to a specified calculation that the Department of Transportation (DOT), in cooperation with the DPR and the Department of Motor Vehicles, is authorized to adjust every five years, starting in the 2013-14 fiscal year, taking into account specified factors.
5. States that the Off-Highway Vehicle Commission supplants the State Parks and Recreation Commission for purposes of administering the act.
6. Grants the director of the DPR the statutory authority to organize and administer the DPR. Section 5090.30 of the Public Resources Code exempts the division from this statute. The division is headed by a deputy director, who by law, has no responsibilities to the DPR other than management of the division.
7. Requires a report related to funding of the program. Section 8352.6 of the Revenue and Taxation Code requires, in the 2014-15 fiscal year, the Department of Transportation, in consultation with the DPR and the Department of Motor Vehicles, to undertake a study to determine the appropriate adjustment to the amount of money transferred from the fuel account to the fund, and to update the estimate of the amount of money attributable to taxes imposed upon distribution of motor vehicle fuel related to specified off-highway motor vehicles and off-highway vehicle activities. Section 8352.6(e) requires the Administration to provide the study to the Legislature no later than January 1, 2016.
8. SB 742 (Steinberg), Chapter 541, Statutes of 2007, renewed the program with a January 1, 2018, sunset date, and made substantial changes to the program.

FISCAL EFFECT: Unknown.

COMMENTS:

Author’s Statement: OHV recreation is a substantial economic engine in California, supporting jobs, local enterprise, and national, state and local tax revenue. Providing authorized areas for OHV recreation diminishes OHV trespass on private and public lands. Additionally, OHV recreation gives people with mobility challenges access to public lands they might not otherwise be able to experience.

California is the nation’s leader in the management of OHV recreation as a sustainable activity. The Department of Parks and Recreation, through its Off-Highway Motor Vehicle Recreation (OHMVR) Division has worked for over 40 years to establish management practices that reduce or prevent damage to the environment for OHV activity.

As the demand for outdoor recreational opportunities by California citizens continues to increase, reauthorization of the OHMVR Program is needed in order to accommodate expanded, ecologically-balanced OHV recreation. AB 1077 authorizes the OHMVR to operate indefinitely, thereby ensuring that the principles of responsible OHV recreation remain available in California.

Comments: Two previously chaptered bills substantially impact the analysis of this bill. The first, SB 742 (Steinberg), Chapter 541, Statutes of 2007, renewed the program with a January 1, 2018, sunset date with substantial changes to the program (outlined above). The second, SB 853 (Committee on Budget and Fiscal Review), Chapter 27, 2014, provided for a specific report regarding the distribution of fuel taxes.

OHV Trust Fund and Green Sticker Program. The OHV program receives no support from the state’s General Fund—all funding comes from the OHV Trust Fund. Funding received by the trust fund includes: (1) fuel taxes; (2) OHV registration fees; and, (3) entrance fees.

Fuel tax transfers to the trust fund were once calculated based on statewide studies that estimated the total gallons of gasoline burned in the course of OHV recreation. Legislation passed in 2007 (SB 742) established that future transfers would be based on the percentage of fuel taxes transferred in 2007, rather than depending on studies to estimate the amount of gasoline burned by OHVs. In 2011, legislation was passed that reduced these transfers by $10 million annually.

OHV registration is commonly referred to as the Green Sticker program. In 2007, with the passage of SB 742, OHV registration fees were doubled from $25 to $50 for a two-year registration. This increase was supported by both off-highway vehicle proponents and environmental organizations. In 2009, the OHV registration fees were raised by $2 to bolster the portion of the fees directed to the California Highway Patrol (CHP). The OHV registration fees transferred to the CHP have no restrictions related to uses associated with OHV recreation or enforcement but acknowledge the role CHP has in enforcing both on-highway and off-highway vehicles. OHV registration fees are currently $52 every two years. Of this amount, $33 is directed to the OHV Trust Fund, and the remainder is distributed to the CHP, California Department of Motor Vehicles, and to counties (in-lieu of property taxes).

Within the funding for the program, the following percentages are required to be expended for grants and cooperative agreements for the following purposes:

• 50% for the acquisition, maintenance, operation, planning, development, or conservation of trails and facilities associated with the use of OHVs for recreation or motorized access to non-motorized recreation;
• 25% for projects that provide ecological restoration or repair to habitat damaged by either legal or illegal OHV use;
• 20% for local and federal law enforcement entities for personnel and related equipment;
• 5% for the comprehensive education that teaches OHV safety, environmental responsibility, and respect for private property, or to provide safety programs associated with OHV recreation.

Reviewing the Renewal of the Program—Report Necessary Not Submitted. The combination of the sunset in SB 742 and the required report in SB 853 anticipated that renewal of the program would require a review of the program given new information and current conditions. The purpose of a program sunset date is to allow the public and the Legislature the opportunity to review new information, and to make adjustments, if necessary, to programs on a periodic basis.

Complicating the periodic and necessary review of the OHV program is the lateness of the required program revenue report. This report was requested in the 2014 Budget Act, well in time for the Legislature to review its finding and to incorporate them into any changes to the program prior to the pending sunset in 2018. However, the Administration did not release the required report under Section 8352.6 of the Revenue and Taxation Code that would determine the appropriate adjustment to the amount of money transferred from the fuel account to the fund, and to update the estimate of the amount of money attributable to taxes imposed upon distribution of motor vehicle fuel related to specified off-highway motor vehicles and off-highway vehicle activities. This makes the evaluation of the renewal of the program substantially difficult. At the same time, the DPR has put forward a number of budget change proposals relative to the program, even though there has been no extension of the program under law.

Because the public does not have the information critical to determining the underlying funding for the program, amendments proposed by this committee allow for an extension of the program in order to review the required report. Should the report not be submitted before January 1, 2018, the program would sunset by July 1, 2018. This has added impact of allowing the existing grant program to continue while the program is reviewed and possibly amended by the Legislature, such as is proposed by SB 249.

Other Legislation:

AB 382 (Voepel), of this session, would, on June 30, 2018, eliminate the monthly transfer of $833,000 from the Off-Highway Vehicle Trust Fund to the General Fund. This bill is currently pending in the Assembly Transportation Committee.

SB 754 (Stone), of this session, would make a nonsubstantive change to the findings and declarations of the OHV Act. This bill is currently pending referral in the Senate Rules Committee.

SB 249 (Allen) also removes the sunset on the program. The sunset provides an opportunity to review the program and make changes, and SB 249 does this. This bill passed out of Senate Natural Resources Committee after extensive testimony, with a commitment by the author to hold stakeholder meetings to review the bill content. SB 249 makes a number of substantive changes to the program including:

• 1. Adds “habitat and cultural resources” to the definition of conservation and adds monitoring component to assess the adequacy of conservation and restoration actions that will inform adaptive management strategies. The adaptive management definition is also added.
  2. Changes the qualifications of the Commission members by deleting the category associated with rural landowners, and substituting a broader category defined as “the legal and practical aspects of rural landownership and management.” The environmental category is expanded to include cultural resource protection. The nonmotorized recreation category is expanded to outdoors recreation. The bill declares legislative intent that the appointing authorities endeavor to have commissioners from all of the categories, and prohibits more than two commissioners at a time from serving under the same qualification.
  3. Changes how the division operates and reports within the DPR.
  4. Adds protection of natural and cultural resources as specific duties of the commission including a requirement to set unit capacity limits for visitors.
  5. Requires annual reporting on the number and types of injuries and accidents and the number and types of citations and other enforcement actions at State Vehicular Recreation Areas, disaggregated by each unit.
  6. Requires closure of areas where damage has occurred that is inconsistent with natural and cultural resource protection plans until that damage is repaired. If there is repeated or continuous damage, the area shall be permanently closed.
  7. Makes a number of changes to the way the division addresses wildlife and soil conservation including adding a science advisory panel.
  8. Shifts the transfer of fuel taxes to the State Parks and Recreation Fund and allocates to the DPR a pro rata share of the division’s overhead and other costs that will be paid by the Fund and requires that the motor vehicle fuel tax that is paid by off-highway vehicles be limited to those vehicles that are actually used for off highway motorized recreation, and by motor vehicles when actually used off highway to access non-motorized recreation. To calculate that amount, an estimate shall be made every five years by CalTrans and the DPR and the Department of Motor Vehicles of the fuel tax revenues attributable to vehicles that will be included.
  9. Allocate available funds to the DPR to be used for road improvements and to support transportation and access to the state park system and other appropriate public recreation areas for underserved populations, by implementing a grant program for non-motorized recreation and education opportunities.

Committee Amendments: Committee amendments would extend the sunset of the program by one year to January 1, 2019, in order to review the SB 853 fuel tax report. If no report is received, sunset the program on July 1, 2018.

Arguments in Support: Supporters argue that the program has worked well and should be extended as proposed. They believe the 2003 Act has been of real and substantial benefit to owners of off-road vehicles and that it should continue in effect indefinitely. They argue that the periodic sunset of the program has caused problems of uncertainty within the program.

REGISTERED SUPPORT / OPPOSITION:

Support

American Motorcyclist Association

BlueRiboon Coalition/Sharetrails.org

California Four Wheel Drive Association

California Motorcycle Dealers Association

California Off-Road Vehicle Association

California Recreation Alliance

California Sportsman’s Lobby

District 36 Motorcycle Sports Committee

Motorcycle Industry Council

Office of the Sheriff, Inyo County

Outdoor Sportsmen’s Coalition of California

Recreational Off-Highway Vehicle Association

Safari Club International

Safari Club International Foundation

San Bernardino County

San Diego Off-Road Coalition

Sierra Buttes Trail Stewardship

Specialty Vehicle Institute of America

Valley Climbers Motorcycle Club

Individuals (5)

Opposition

Individuals (2)

Analysis Prepared by: Catherine Freeman / W., P., & W. /