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 These provisions are to be repealed on January 1, 2018.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.

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 These provisions are to be repealed on January 1, 2018.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.

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 These provisions are to be repealed on January 1, 2018.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 until January 1, 2023, if certain conditions are met. indefinitely.

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

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.

The Dixon-Zenovich-Maddy California Arts Act of 1975 establishes the Arts Council, consisting of 11 appointed members. The act specifies the duties of the council, including providing for the exhibition of art works in public buildings throughout California.

This bill would additionally require the Arts Council to encourage the public exhibition of art works in both public and private spaces throughout California.

 UNFINISHED BUSINESS  

Bill No: SB 159

Author:

:

Vote:

SENATE NATURAL RES. & WATER COMMITTEE: 8-0, 6/27/17

AYES: Hertzberg, Stone, Allen, Atkins, Hueso, Jackson, Stern, Vidak

NO VOTE RECORDED: Monning

SENATE TRANS. & HOUSING COMMITTEE: 12-0, 7/11/17

AYES: Beall, Cannella, Allen, Atkins, Gaines, McGuire, Mendoza, Morrell, Roth, Skinner, Vidak, Wiener

NO VOTE RECORDED: Wieckowski

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/21/17

AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener

SENATE FLOOR: 38-0, 8/24/17

AYES: Allen, Anderson, Atkins, Bates, Beall, Berryhill, Bradford, Cannella, Dodd, Fuller, Gaines, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leyva, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Newman, Nielsen, Pan, Portantino, Roth, Skinner, Stern, Stone, Vidak, Wieckowski, Wiener, Wilk

NO VOTE RECORDED: De León, Nguyen

ASSEMBLY FLOOR: 74-1, 9/14/17 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST:

This bill extends indefinitely the imposition of a specified $7 "service fee" and $33 "special fee" on off-highway motor vehicles (OHVs).

Assembly Amendments

remove the contingent enactment language to SB 249 (Allen) and the sunset date.

ANALYSIS:

Existing law:

1. Imposes a service fee of $7 for the issuance and renewal of identification of OHVs subject to identification, and special fee of $33 paid at the time of payment of the service fees. This is commonly called the “green sticker” fee because a green sticker is attached to OHVs whose owners have paid this fee.
2. Creates the Division of Off-Highway Motor Vehicle Recreation (Division) within the Department of Parks and Recreation (Department). The Division plans and acquires lands in state vehicular recreation areas 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.
3. Establishes the OHV Program to manage off-highway recreation in a manner that also protects California’s natural and cultural resources.
4. Requires the $33 special fee, and other funds appropriated to the Department, to be allocated to the Fund for the OHV program, other purposes specifically related to off-highway recreation and administration of the Division.
5. Sunsets these provisions on January 1, 2018.

This bill extends the sunset date for the collection of the green sticker and special fees indefinitely.

Background

1. The OHV program and associated green sticker fees sunset at the end of this year.
2. The author is also carrying SB 249, a companion bill which revises provisions in the OHV program. That bill has been negotiated successfully by OHV user groups, the Department, and conservation non-profits.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Assembly Appropriations Committee:

1. Continued annual collection of approximately $16 million to $17 million in "special fee" revenues (OHV Trust Fund).
2. Continued annual collection of approximately $3.4 million to $3.6 million in "service fee" revenues. These revenues cover the administrative costs incurred by the Department of Motor Vehicles (DMV) for registering OHVs (Motor Vehicle Account).
3. Minor and absorbable costs for the DMV to continue the collection and transfer of OHV registration fees (Motor Vehicle Account).

SUPPORT: (Verified 9/13/17)

ABATE of California, Inc.

American Motorcyclist Association

American Motorcyclist Assoc. Congressman

American Sand Association

Blue Ribbon Coalition / Sharetrails.org

California Department of Parks and Recreation

California Four Wheel Drive Association, Inc.

California Motorcycle Dealers Association

California Off-Road Vehicle Association

California Recreation Alliance
California Trail Users Coalition

Clovis Independent Four Wheelers

D36 American Motorcyclist Association

D37 American Motorcyclist Association

Friends of Jawbone

Friends of El Mirage

Motorcycle Industry Council

Off Road Business Association
Outdoor Sportsmen's Coalition

Recreational Off-Highway Vehicle Association
San Diego Off-Road Coalition
SCI CA Coalition

Specialty Vehicle Institute of America

United Four Wheel Drive Association, Inc.

4x4Wire.com

OPPOSITION: (Verified 9/13/17)

None received

ARGUMENTS IN SUPPORT: According to the author, SB 159 provides for the extension of a portion of the program’s funding that is set to expire at the end of 2017. This funding, which makes up about a third of the Division’s revenue, is derived from the fees paid by off-highway motorists when entering OHV parks or registering their vehicles.

ASSEMBLY FLOOR: 74-1, 9/14/17

AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Burke, Caballero, Calderon, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Weber, Wood, Rendon

NOES: Cervantes

NO VOTE RECORDED: Travis Allen, Brough, Harper, Waldron

Prepared by:

9/15/17 8:55:24

**** END ****

SENATE THIRD READING

STR Bill Id:SB 159

Author:(Allen)

As Amended Ver:September 7, 2017

2/3 vote. Urgency

SENATE VOTE: 38-0

SUMMARY: This bill extends indefinitely the imposition of a specified $7 "service fee" and $33 "special fee" on off-highway motor vehicles (OHVs).

EXISTING LAW:

1. Imposes a service fee of $7 for the issuance and renewal of identification of OHVs subject to identification, and special fee of $33 paid at the time of payment of the service fees. This is commonly called the "green sticker" fee because a green sticker is attached to OHVs whose owners have paid this fee.
2. Creates the Division of Off-Highway Motor Vehicle Recreation (Division) within the Department of Parks and Recreation (Department). The Division plans and acquires lands in state vehicular recreation areas which are units within 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.
3. Establishes the OHV Program to manage off-highway recreation in a manner that also protects California's natural and cultural resources.
4. Requires the $33 special fee, and other funds appropriated to the Department, to be allocated to the Fund for the OHV program, and to other purposes specifically related to off-highway recreation and administration of the Division.
5. Sunsets these provisions on January 1, 2018.

FISCAL EFFECT: According to the Assembly Appropriations Committee:

1. Continued annual collection of approximately $16 million to $17 million in "special fee" revenues (OHV Trust Fund).
2. Continued annual collection of approximately $3.4 million to $3.6 million in "service fee" revenues. These revenues cover the administrative costs incurred by the Department of Motor Vehicles (DMV) for registering OHVs (Motor Vehicle Account).
3. Minor and absorbable costs for the DMV to continue the collection and transfer of OHV registration fees (Motor Vehicle Account).

COMMENTS:

Background and Purpose. Existing law establishes a program for the issuance of OHV identification stickers (which are affixed to the OHV) and identification certificates by DMV, which expire on June 30th of the second calendar year following the year of issuance.

Green identification stickers are issued for all California OHVs with a model year of 2002 or older and with a model year of 2003 or newer if they are compliant with specified California Air Resources Board emission standards. Red identification stickers are issued to OHVs with a model year of 2003 or newer that are not certified to meet those emission standards. OHVs with green stickers can be operated year round at all OHV riding areas and those with red stickers may only be operated seasonally at state vehicular recreation areas (SVRAs). Existing law requires the payment of the following fees for OHV registration prior to the June 30 expiration date:

1. A $7 "service fee" paid to DMV for the issuance or renewal of OHV identification.
2. A $33 "special fee" deposited into the OHV Trust Fund.
3. An $8 fee which is deposited into the Motor Vehicle Account to support the California Highway Patrol.
4. A $4 license fee that is collected in lieu of all taxes levied for state and local purposes and deposited into the Off-Highway License Fee Fund, as specified.

Existing law repeals the $7 "service fee" and the $33 "special fee" on January 1, 2018. This bill extends the service fee and special fee indefinitely.

Related Legislation. This bill is part of a package of bills that includes SB 249 (Allen), of the current legislative session, that reauthorizes the programmatic portions of California law, making changes to align the management of the program with the rest of California State Parks while adding environmental protection provisions of the law. SB 249 revises and extends the OHV program indefinitely, but sunsets the OHV Commission in 2023. SB 249 is pending on the Assembly floor.

Analysis Prepared by: Catherine Freeman / W., P., & W. / (916) 319-2096 FN: 0002284

Date of Hearing: September 11, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

SBPCA Bill Id:SB 159

Author:(Allen) – As Amended Ver:September 7, 2017

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

SUMMARY:

This bill extends indefinitely the imposition of a specified $7 “service fee” and $33 “special fee” on off-highway motor vehicles (OHVs).

FISCAL EFFECT:

1. Continued annual collection of approximately $16 million to $17 million in “special fee” revenues (OHV Trust Fund).
   
2. Continued annual collection of approximately $3.4 million to $3.6 million in “service fee” revenues. These revenues cover the administrative costs incurred by the Department of Motor Vehicles (DMV) for registering OHVs (Motor Vehicle Account).
   
3. Minor and absorbable costs for DMV to continue the collection and transfer of OHV registration fees (Motor Vehicle Account).

COMMENTS:

1. Background and Purpose. Existing law establishes a program for the issuance of OHV identification stickers (which are affixed to the OHV) and identification certificates by DMV, which expire on June 30^th of the second calendar year following the year of issuance.

Green identification stickers are issued for all California OHVs with a model year of 2002 or older and with a model year of 2003 or newer if they are compliant with specified California Air Resources Board emission standards. Red identification stickers are issued to OHVs with a model year of 2003 or newer that are not certified to meet those emission standards. OHVs with green stickers can be operated year round at all OHV riding areas and those with red stickers may only be operated seasonally at state vehicular recreation areas (SVRAs). Existing law requires the payment of the following fees for OHV registration prior to the June 30 expiration date:

• A $7 “service fee” paid to DMV for the issuance or renewal of OHV identification.
• A $33 “special fee” deposited into the OHV Trust Fund.
• An $8 fee which is deposited into the Motor Vehicle Account to support the California Highway Patrol.
• A $4 license fee that is collected in lieu of all taxes levied for state and local purposes and deposited into the Off-Highway License Fee Fund, as specified.

OHV renewal fees must be received, or mailed and postmarked, on or before June 30, to avoid a 50% late penalty.

Existing law repeals the $7 “service fee” and the $33 “special fee” on January 1, 2018. This bill extends the service fee and special fee indefinitely.

1. Related Legislation. SB 249 revises and extends the OHV program indefinitely, but sunsets the OHV Commission in 2023. This bill is pending on the Assembly floor.

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

Date of Hearing: August 31, 2017

ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE

Eduardo Garcia, Chair

SBPCA Bill Id:SB 159

Author:(Allen) – As Amended Ver:June 15, 2017

SENATE VOTE: 38-0

SUBJECT: Off-highway vehicles

SUMMARY: This bill extends the sunset date for the collection of off-highway motor vehicle (OHV) fees to January 1, 2023, if a statute is enacted before January 1, 2018, to extend the operation of the OHV Program until January 1, 2023.

EXISTING LAW:

1. Imposes a service fee of $7 for the issuance and renewal of identification of OHVs subject to identification, and special fee of $33 paid at the time of payment of the service fees. This is commonly called the “green sticker” fee because a green sticker is attached to OHVs whose owners have paid this fee.
2. Creates the Division of Off-Highway Motor Vehicle Recreation (Division) within the Department of Parks and Recreation (Department). The Division plans and acquires lands in state vehicular recreation areas which are units within 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.
3. Establishes the OHV Program to manage off-highway recreation in a manner that also protects California’s natural and cultural resources.
4. Requires the $33 special fee, and other funds appropriated to the Department, to be allocated to the Fund for the OHV program, other purposes specifically related to off-highway recreation and administration of the Division.
5. Sunsets these provisions on January 1, 2018.

FISCAL EFFECT: Unknown. This bill is keyed fiscal.

COMMENTS:

Author’s Statement:

California’s Off-Highway Motor Vehicle Recreation Program, which seeks to ensure residents can enjoy this form of outdoor recreation in a sustainable and safe manner, is set to sunset at the end of 2017. Since its inception, the Program has periodically been assessed and reauthorized by the Legislature. The most recent extension, 10 years ago, sought to improve program administration, environmental protection and law enforcement via grants to non-state facilities. That legislation also increased the fees paid to register off-highway recreational vehicles.

The program and the vehicle fees once again need to be reauthorized. SB 159 is part of a package of bills that includes SB 249. That bill reauthorizes the programmatic portions of California law, making modest changes to better align the management of the Program with the overall mission and values of the rest of the Parks Department while proving clarity and certainty to the environmental protections provisions of the law. SB 159 provides for the extension of a portion of the Program’s funding that is set to expire at the end of 2017. This funding, which makes up about a third of the Division’s revenue, is derived from the fees paid by off-highway motorists when entering OHV parks or registering their vehicles.

Background: In 1971, the Legislature established 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. To implement all aspects of the OHV program, the Division of OHV Recreation (Division) was created within the Department of Parks and Recreation. The Division is responsible for the planning, acquisition, development, and management of the eight state vehicle recreation areas (SVRAs), the preparation and coordination of safety and education programs, and the administration of the grants and cooperative agreements program (grants program). The Division is also responsible for completing and periodically updating a strategic planning process that will identify future OHV recreation needs and the potential to reduce illegal and environmentally damaging riding.

California’s OHV program is set to sunset at the end of 2017. Since its inception, the program has periodically been assessed and reauthorized by the Legislature. The most recent extension, 10 years ago, sought to improve program administration, environmental protection and law enforcement via grants to non-state facilities. That legislation also increased the fees paid to register off-highway recreational vehicles.

The program and the vehicle fees once again need to be reauthorized. SB 159 is part of a package of bills that includes SB 249. The latter bill reauthorizes the programmatic portions of California law, making changes to align the management of the program with the rest of California State Parks while adding environmental protection provisions of the law. SB 159 provides for the extension of a portion of the program’s funding that is set to expire at the end of 2017. This funding, which makes up about a third of the Division’s revenue, is derived from the fees paid by off-highway motorists when entering OHV parks or registering their vehicles.

Prior and Related Legislation.

SB 742 (Steinberg), Chapter 541, Statutes of 2007, made major revisions to the OHV program and extended the sunset date by ten years.

SB 249 (Allen), of this session, revises and extends the sunset on the OHV program. This bill is currently in the Assembly Appropriations Committee.

Committee Amendments.

The author is currently reconciling both SB 249 and SB 159. Prior to a floor vote of this bill, the author will need to reconcile the final bills to ensure that funding for the program continues. This reconciliation will either include a ten-year sunset of the funding (at a minimum), or, preferably removal of the sunset altogether.

REGISTERED SUPPORT / OPPOSITION:

Support

None received.

Opposition

None received.

Analysis Prepared by: Catherine Freeman / W., P., & W. / (916) 319-2096

 THIRD READING  

Bill No: SB 159

Author:

:

Vote:

SENATE NATURAL RES. & WATER COMMITTEE: 8-0, 6/27/17

AYES: Hertzberg, Stone, Allen, Atkins, Hueso, Jackson, Stern, Vidak

NO VOTE RECORDED: Monning

SENATE TRANS. & HOUSING COMMITTEE: 12-0, 7/11/17

AYES: Beall, Cannella, Allen, Atkins, Gaines, McGuire, Mendoza, Morrell, Roth, Skinner, Vidak, Wiener

NO VOTE RECORDED: Wieckowski

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/21/17

AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener

SUBJECT:

SOURCE: Author

DIGEST:

This bill extends the sunset date for the collection of off-highway motor vehicle (OHV) fees to January 1, 2023, if a statute is enacted before January 1, 2018, to extend the operation of the OHV Program until January 1, 2023.

ANALYSIS:

Existing law:

1. Imposes a service fee of $7 for the issuance and renewal of identification of OHVs subject to identification, and special fee of $33 paid at the time of payment of the service fees. This is commonly called the “green sticker” fee because a green sticker is attached to OHVs whose owners have paid this fee.
2. Creates the Division of Off-Highway Motor Vehicle Recreation (Division) within the Department of Parks and Recreation (Department). The Division plans and acquires lands in state vehicular recreation areas 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.
3. Establishes the OHV Program to manage off-highway recreation in a manner that also protects California’s natural and cultural resources.
4. Requires the $33 special fee, and other funds appropriated to the Department, to be allocated to the Fund for the OHV program, other purposes specifically related to off-highway recreation and administration of the Division.
5. Sunsets these provisions on January 1, 2018.

This bill extends the sunset date for the collection of the green sticker fees to January 1, 2023 if a statute is enacted before January 1, 2018 to extend the operation of the Off-Highway Motor Vehicle Program until January 1, 2023.

Background

1. The OHV program and associated green sticker fees sunset at the end of this year. This bill extends the sunset on the fees provided that legislation extends the sunset on the OHV program.
2. The author is also carrying SB 249, a companion bill which revises and extends the sunset on the OHV program. That bill is pending in the Assembly Water, Parks and Wildlife Committee. While there are a wide variety of opinions regarding the elements of the OHV program, there is no opposition to the contingent extension of the existing fee schedule for five years. Should SB 249 fail, the fee extension in this bill would also fail.

Comments

According to the author, California’s Off-Highway Motor Vehicle Recreation program, which seeks to ensure that residents can enjoy this form of outdoor recreation in a sustainable and safe manner, is set to sunset at the end of 2017. Since its inception, the program has periodically been assessed and reauthorized by the Legislature. The most recent extension, 10 years ago, sought to improve program administration, environmental protection and law enforcement via grants to non-state facilities. That legislation also increased the fees paid to register off-highway recreational vehicles.

The program and the vehicle fees once again need to be reauthorized. SB 159 is part of a package of bills that includes SB 249. The latter bill reauthorizes the programmatic portions of California law, making changes to better align the management of the program with the overall mission and values of the rest of the California State Parks while proving clarity and certainty to the environmental protection provisions of the law. SB 159 provides for the extension of a portion of the program’s funding that is set to expire at the end of 2017. This funding, which makes up about a third of the Division’s revenue, is derived from the fees paid by off-highway motorists when entering OHV parks or registering their vehicles.

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

According to the Senate Appropriations Committee, this bill will result in the continued collection of approximately $16 million to $17 million in “special fee” revenues annually until 2023, if the OHV Recreation Act is also extended. (OHV Trust Fund). It also will result in the continued collection of approximately $3.4 million to $3.6 million in “service fee” revenues annually until 2023, if the OHV Recreation Act is also extended. These revenues cover the administrative costs incurred by the Department of Motor Vehicles (DMV) for registering OHVs. (Motor Vehicle Account). Additionally, there are minor and absorbable costs for DMV to continue the collection and transfer of OHV registration fees. (Motor Vehicle Account)

SUPPORT: (Verified 8/23/17)

None received

OPPOSITION: (Verified 8/23/17)

None received

Prepared by:

8/23/17 14:57:26

**** END ****

SENATE COMMITTEE ON

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

SB 159 (Allen) - Off-highway vehicles

This bill does not meet the criteria for referral to the Suspense File.

Bill Summary:

SB 159, an urgency measure, would extend the imposition of a specified $7 “service fee” and $33 “special fee” on off-highway motor vehicles (OHVs) until January 1, 2023 if a statute is also enacted this year to extend the operation of the OHV Recreation Act of 2003 until January 1, 2023.

Fiscal Impact:

• Continued collection of approximately $16 million to $17 million in “special fee” revenues annually until 2023, if the OHV Recreation Act is also extended. (OHV Trust Fund)
  
• Continued collection of approximately $3.4 million to $3.6 million in “service fee” revenues annually until 2023, if the OHV Recreation Act is also extended. These revenues cover the administrative costs incurred by the Department of Motor Vehicles (DMV) for registering OHVs. (Motor Vehicle Account)
  
• Minor and absorbable costs for DMV to continue the collection and transfer of OHV registration fees. (Motor Vehicle Account)

Background:

Existing law, the OHV Recreation Act of 2003, establishes the Division of OHV Recreation within the Department of Parks and Recreation. The Division plans and acquires lands in the nine state vehicular recreation areas (SVRAs), which are state parks that provide OHV recreation opportunities. Existing law also establishes the OHV Trust Fund and requires the transfer of specified motor vehicle fuel tax revenues associated with OHV activities, OHV registration fees (from the $33 “service fee” collected by DMV), SVRA admission fees, and other specified funds into the OHV Trust Fund. Money in the OHV Trust Fund is available upon appropriation by the Legislature, with up to half of the available revenues supporting specified grants and cooperative agreements administered by the Division. The remainder of the funds support the Division in implementing the OHV Recreation Act, including planning, acquisition, development, construction, maintenance, administration, operation, restoration, and conservation of lands in the system. Existing law repeals the OHV Recreation Act and the Vehicle Code section that establishes the OHV Trust Fund on January 1, 2018.

Existing law establishes a program for the issuance of OHV identification stickers (which are affixed to the OHV) and identification certificates by DMV, which expire on June 30^th of the second calendar year following the year of issuance. Green identification stickers are issued for all California OHVs with a model year of 2002 or older and with a model year of 2003 or newer if they are compliant with specified California Air Resources Board emission standards. Red identification stickers are issued to OHVs with a model year of 2003 or newer that are not certified to meet those emission standards. OHVs with green stickers can be operated year round at all OHV riding areas and those with red stickers may only be operated seasonally at SVRAs. Existing law requires the payment of the following fees for OHV registration prior to the June 30 expiration date:

• A $7 “service fee” paid to DMV for the issuance or renewal of OHV identification.
• A $33 “special fee” deposited into the OHV Trust Fund.
• An $8 fee which is deposited into the Motor Vehicle Account to support the California Highway Patrol.
• A $4 license fee that is collected in lieu of all taxes levied for state and local purposes and deposited into the Off-Highway License Fee Fund, as specified.

OHV renewal fees must be received, or mailed and postmarked, on or before June 30, to avoid a 50 percent late penalty.

Existing law repeals the $7 “service fee” and the $33 “special fee” on January 1, 2018.

Proposed Law:

SB 159, an urgency measure, would extend the sunset date until January 1, 2023 for the section of law that establishes the OHV Trust Fund, and requires the payment of a $7 “service fee” that is paid to DMV for the issuance or renewal of OHV identification and a $33 “special fee” that is deposited into the OHV Trust Fund. The sunset extension is conditioned on the enactment of a statute by January 1, 2018 that extends the operation of the OHV Recreation Act until January 1, 2023.

Related Legislation:

SB 249 (Allen), which is currently pending in the Assembly Appropriations Committee, would extend the operation of the OHV Recreation Act of 2003 until January 1, 2023, and make specified changes to the OHV Program.

Staff Comments:

DMV indicates that there are currently approximately 789,000 registered off highway vehicles, and registration occurs biennially. An average of $16.3 million in OHV registration revenues from the $33 “special fee,” including penalties for late payments, was deposited into the OHV Trust Fund annually over those years. In addition, DMV collected approximately $3.5 million annually as a result of the $7 “service fee,” approximately $4 million in fees for support of CHP, and approximately $2 million in fees in lieu of state and local taxes.

While it is appropriate to maintain a sunset date on the $33 “special fee” that is consistent with the operative date of the OHV Recreation Act, it is unclear why the $7 DMV “service fee” should sunset concurrently with those provisions. Staff notes that DMV requirements to issue and renew OHV identification stickers and certifications of ownership would continue, regardless of whether the OHV Recreation Act is extended.

Recommended Amendments:

The Committee may wish to recommend an amendment to move the requirement to pay the $7 DMV service fee for the issuance or renewal of OHV identification to a new stand-alone section of the Vehicle Code that does not include a sunset provision.

-- END --

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2017 - 2018 Regular

Bill No: SB 159 Hearing Date: 7/11/2017

SUBJECT: Off-highway vehicles

DIGEST: This bill extends the sunset date for the collection of off-highway motor vehicle (OHV) fees to January 1, 2023 if a statute is enacted before January 1, 2018 to extend the operation of the OHV Program until January 1, 2023.

ANALYSIS:

Existing law:

1. Imposes a service fee of $7 for the issuance and renewal of identification of OHVs subject to identification, and special fee of $33 paid at the time of payment of the service fees. This is commonly called the “green sticker” fee because a green sticker is attached to OHVs whose owners have paid this fee.
2. Creates the Division of Off-Highway Motor Vehicle Recreation (Division) within the Department of Parks and Recreation (Department). The Division plans and acquires lands in state vehicular recreation areas 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.
3. Establishes the OHV Program to manage off-highway recreation in a manner that also protects California’s natural and cultural resources.
4. Requires the $33 special fee, and other funds appropriated to the Department, to be allocated to the Fund for the OHV program, other purposes specifically related to off-highway recreation and administration of the Division.
5. These provisions sunset on January 1, 2018.

This urgency bill extends the sunset date for the collection of the green sticker fees to January 1, 2023 if a statute is enacted before January 1, 2018 to extend the operation of the Off-Highway Motor Vehicle Program until January 1, 2023.

COMMENTS:

1. Purpose. The OHV program and associated green sticker fees sunset at the end of this year. This bill extends the sunset on the fees provided that legislation extends the sunset on the OHV program.
2. Related Legislation. The author is also carrying SB 249, a companion bill which revises and extends the sunset on the OHV program. That bill passed this committee and as of July 3 is pending in the Assembly Water, Parks and Wildlife Committee. While there are a wide variety of opinions regarding the elements of the OHV program, there is no opposition to the contingent extension of the existing fee schedule for five years. Should SB 249 fail, the fee extension in this bill would also fail.
3. Combining Two into One. Depending on the outcome of the SB 249 negotiations, the author may consider combining these two bills into a single bill that would require a 2/3 vote.
4. Double Referral. This bill was heard by the Senate Natural Resources and Water Committee on June 27, 2017 and approved 8-0.

Related Legislation:

SB 249 (Allen, 2017) — Revises and extends the sunset on the OHV program. As of July 3, this bill is pending in the Assembly Water, Parks and Wildlife Committee.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

POSITIONS: (Communicated to the committee before noon on Wednesday,

July 5, 2017.)

SUPPORT:

None received.

OPPOSITION:

None received.

-- END --

SENATE COMMITTEE ON NATURAL RESOURCES AND WATER

Senator Robert Hertzberg, Chair

2017 - 2018 Regular

Bill No: SB 159 Hearing Date: June 27, 2017

Subject: Off-highway vehicles

BACKGROUND AND 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. These provisions in the Public Resources Code (Act) are scheduled to sunset on January 1, 2018.
4. Imposes, in section 38225 of the Vehicle Code, 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. This is commonly called the “green sticker” fee because there is literally a green sticker attached to OHVs whose owners have paid this fee.
5. Requires these special fees, and other funds appropriated to the division, to be allocated for purposes specifically related to off-highway recreation.
6. Requires other funds 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 various factors.
7. These provisions in the Vehicle Code are scheduled to sunset on January 1, 2018.

PROPOSED LAW

For purposes of the Vehicle Code sunset date, this bill retains the sunset date of January 1, 2018, unless a statute is enacted before that date that extends the operation of the off-highway vehicle program until January 1, 2023, and in that case, the Vehicle Code provisions would be extended until that same date.

ARGUMENTS IN SUPPORT

According to the author, California’s Off-Highway Motor Vehicle Recreation (OHMVR) program, which seeks to ensure that residents can enjoy this form of outdoor recreation in a sustainable and safe manner, is set to sunset at the end of 2017. Since its inception, the program has periodically been assessed and reauthorized by the Legislature. The most recent extension, 10 years ago, sought to improve program administration, environmental protection and law enforcement via grants to non-state facilities. That legislation also increased the fees paid to register off-highway recreational vehicles.

The program and the vehicle fees once again need to be reauthorized. SB 159 is part of a package of bills that includes SB 249. The latter bill reauthorizes the programmatic portions of California law, making modest changes to better align the management of the program with the overall mission and values of the rest of the California State Parks while proving clarity and certainty to the environmental protections provisions of the law. SB 159 provides for the extension of a portion of the program’s funding that is set to expire at the end of 2017. This funding, which makes up about a third of the Division’s revenue, is derived from the fees paid by off-highway motorists when entering OHV parks or registering their vehicles.

ARGUMENTS IN OPPOSITION

None received.

COMMENTS

1. The author has two OHV bills this year. SB 249 seeks to extend the sunset on the OHV program, and that bill is now awaiting a June 27^th hearing in Assembly Water Parks and Wildlife.
2. This bill, amended in the Senate on June 15^th, is focused only on the “green sticker” provisions which are two fees paid by OHV owners when they register their vehicles. Because some of the money is not used for regulatory purposes, these funds are subject to the taxation definition in Prop 26. That conclusion is not particularly relevant since the bill also has an urgency clause.
3. SB 249 is being actively negotiated by and between the author, OHV groups, and conservation organizations, and new amendments will be proposed prior to the hearing in Assembly Water Parks and Wildlife.
4. It is staff’s understanding that virtually all of the engaged OHV user groups that are involved with the negotiations are in support of extending the green sticker fees, even while they may still have concerns with the content of SB 249.
5. Depending on the outcome of the SB 249 negotiations, the author may consider combining these two bills into a single bill that would require a 2/3 vote.

Double-referral The Rules Committee referred this bill to both the Committee on Natural Resources and Water and to the Committee on Transportation and Housing. Therefore, if this bill passes this committee, it will be referred to the Committee on Transportation and Housing, which will consider the issues within their jurisdiction.

SUPPORT

None Received

OPPOSITION

None Received