Senate Standing Committee on Transportation
- Dave Cortese
Legislator
All right, quick 60 seconds. The Senate Transportation Committee will come to order. Good afternoon. Welcome, everyone. We have 14 measures on today's agenda. First, a few housekeeping items. We are going to allow for up to two primary witnesses, each for support and each for opposition. Each witness will have two minutes.
- Dave Cortese
Legislator
Any additional witnesses, we'll ask you to limit yourselves to name, affiliation, and position on the bill, as usual. We do have five measures proposed for the consent calendar today. The proposed consent Items are item 3, SB 544 by Senator Laird. Item 8, SB 78 by Senator Seyarto. Item 9, SB 533 by Senator Richardson. Item 11, SB 671 by Senator Cervantes. Item 14, SB 506 by the Transportation Committee. I believe we have sufficient numbers.
- Dave Cortese
Legislator
No, we don't. Okay. We can't establish a quorum yet, so we won't bother with the roll call until we get to that point. But we can hear from our first author, and that's going to be Senator Grove on Senate Bill 712. Senator Grove, you may come forward and you may begin when ready.
- Shannon Grove
Legislator
Thank you, Mr. Chair. Today, I rise to present Senate Bill 712, known as Leno's Law. The bill proposes a rolling exemption for classic cars that are 35 years or older, allowing them to be exempted from the biannual smog check program. Additionally, it would exempt these vehicles from smog check upon the transfer of ownership, ensuring that the smog protection follows the vehicle. I'd like to first acknowledge and thank the sponsor of Leno's Law, the former Tonight Show host, Jay Leno.
- Shannon Grove
Legislator
He personally owns an extensive collection of classic cars and showcases these vehicles along with many other classic cars to millions of people on his YouTube channel, Jay Leno's Garage. Jay, like many other car enthusiasts, is passionate about preserving the automotive history and maintaining these vehicles in their original condition.
- Shannon Grove
Legislator
From lowriders to cruisers to hot rods to JDMs, JDM fans to classic car collectors, and many more. Jay recognizes that these cars are pieces of history and rich in culture and should be preserved for many generations. Previously, California had a 25 year rolling smog check exemption for certain vehicles until 2005, when it was repealed.
- Shannon Grove
Legislator
Leno's Law will bring back that rolling exemption, something that car collectors have been asking for for many years. Classic car owners in this room and many across the State of California who could not make it here today can attest that their vehicles are primarily used for shows, parades, and special events and not for daily driving activities.
- Shannon Grove
Legislator
In fact, the California DMV estimates that vehicles manufactured between 1976 and 1991 make up only about 1% of the 30 million registered cars. Members, we're talking about 1% or less of the vehicles in the State of California. Of that 1%, significantly fewer cars will qualify as a classic car that are currently defined in the Vehicle Code.
- Shannon Grove
Legislator
Furthermore, this code defines a collector, a vehicle as being used primarily for shows, parades, charitable functions, and historical exhibitions for display, maintenance, and preservation. And it's not primarily for transportation. Many of the Members in this room, including our own Governor, enjoys riding in these classic cars on parades, in parades, or they actually own their own classic cars.
- Shannon Grove
Legislator
Car enthusiasts from across the state have contacted my office to express how difficult it is to find a smog check station with the equipment necessary that works for their vehicle. In some instances, these classic vehicles are sold out of state because California and California loses that revenue.
- Shannon Grove
Legislator
I had one Member, a college of mine, that told me that she had to interfere with the constituent services because it took almost six months to get that constituent in line for a smog check because there's very few of these facilities in Southern California. The economic engine that these cars create is specifically tire shops, paint shops, upholstery shops, and all of that is lost when these cars leave our state. From lowriders, cruisers, muscle cars, and diverse groups, these people enjoy expressing themselves through their collector cars.
- Shannon Grove
Legislator
In fact, lowrider culture were developed by Mexican Americans in and around Southern California after World War II. Enthusiasts modified cars to ride low to the ground and give them an elaborate color paint jobs. Groups of lowriders would drive their vehicles low and slow through town as a pastime for cruising.
- Shannon Grove
Legislator
The Legislature conformed to that dedication to preserving the lowrider culture when they passed AB 436, Alvarez in 2023, which lifts the restrictions for lowrider cruising, a cultural and artistic tradition developed by Latinos in our beautiful Golden State. SB 712 ensures that all individuals are able to participate in the car culture.
- Shannon Grove
Legislator
That is a common sense measure to ensure that vehicles continue to be a part of our rolling history in California. For these reasons, I respectfully ask for your aye vote. With me today to testify as the first witness, who really needs no introduction to specifically this subject matter, is a sponsor of Leno's Law and who allowed us to affectionately name it Leno's Law is none other than car enthusiastic, TV icon Jay Leno.
- Shannon Grove
Legislator
He's lent his voice and his name for every classic car enthusiast in California. Whether you've restored a classic car under the shade tree with your son or your father or you are, Mr. Leno is here to make sure that you are represented, not only in this building, but in the State of California. Please accept my first witness, Mr. Jay Leno.
- Dave Cortese
Legislator
And Senator, if I can pause for just a moment. Mr. Leno, if you can bear with us a moment, I want to make sure that we establish a quorum here while we can, so that we can vote on this bill and the others that follow it. Assistant, please call the roll.
- Dave Cortese
Legislator
We do have a quorum. Mr. Leno, please proceed. You'll have a couple minutes.
- Jay Leno
Person
Okay. Well, I try to be a role model here a little bit in California because people have their eye on you all the time. I mean, I drive my electric cars during the week and, weekends, I work on my older antique vehicles. I have a 1989 car I bought new. It is completely stock.
- Jay Leno
Person
It has 27,000 miles, which is less than a thousand miles a year. And every two years the smog comes around. As an example, where modern cars after 2000 just plug in and you get, you pass. You don't pass. It's all computerized. Older cars you got to put on the rolling road, and those kind of shops don't have, they don't have the equipment anymore. They all got rid of it to do the fast. Plug in, get your money, boom, get out. It's very quick to get a smog check with a modern car.
- Jay Leno
Person
It's not impossible in an older car, but it's tricky. It takes time and often causes charges 4, 5, 6 times more than a regular car. If you can find a rolling road, if it's in Downey or if you have a four wheel drive vehicle from that era, it's almost impossible to find a rolling road set up for it. So that's one problem.
- Jay Leno
Person
The other is cars in California last, not literally forever, but our climate is such that cars from the 80s and 90s can still look brand new just because of our weather. And the idea is not like having an old rust bucket if you live in a neighboring state. And we're not asking for anything more than what every other state has. I mean, California is the strictest in the nation and will continue to be. I mean, I lived here in the 70s when they tell you 100 days a year, don't go outside. I mean, I'm all for emissions.
- Jay Leno
Person
I think it's a good thing. I keep my cars running perfectly. But it's such a small percentage. And the biggest problem is a car from the 30s would be almost easier to do than a car from the 90s, because with the computerized equipment from 90s, 80s, 90s, they don't make it anymore. The car is no longer in production.
- Jay Leno
Person
So you can't even get the smog equipment in a lot of cases to make your car legal. And that's primarily why we want to do this. Mike will tell you the economic impact. I mean, hot rodding started here in California. It's kind of a lifestyle, and it's a fun thing to do. I mean, my thing is most of these cars are like an ATV or a snowmobile. People take them out on weekends. They drove 10 or 15 miles to go to a classic car event in a park.
- Jay Leno
Person
They have a cookout, they have the car show, and they go back. These aren't cars used as daily drivers. As I said, when I have to go to San Diego, even down to Hermosa Beach or anywhere, I'll use an electric car. And it works perfectly well. I mean, my garage is solar. We use non... We use biodegradable products when we restore cars.
- Jay Leno
Person
We use water based paints. We really try to be an example because I'm the guy they look at when these things happen, you know. And I don't like the fact that people have to sort of become criminals if they have a car from the 90s because it won't pass. So they get some guy to give them a phony piece of paper or register it in another state or... It just seems like it's an awful lot of work for something that doesn't seem like that big a deal being just 1%.
- Dave Cortese
Legislator
Thank you very much. Next witness, please. You might want to reidentify yourself.
- Mike Spagnola
Person
Yeah. Thank you, Chair Cortese, Vice Chair Strickland, and Members of the Committee for the opportunity to speak with you here today. All I ever wanted was a black Grand National. That's the first line of "TV Off," a song by Kendrick Lamar, a Pulitzer Prize winning musician from Los Angeles and one of the most powerful voices of this generation. For him, it's just not a lyric. Kendrick said that his dad brought him home from the hospital in the 1987 Buick Regal Grand National.
- Mike Spagnola
Person
Years later, after making it big, he bought one for himself, not for status, because it connected him to his roots. And earlier this year, in front of millions of viewers at the 25 Super Bowl Halftime Show, Kendrick featured that very car on stage, a symbol of his pride, history, and identity. That's what SB 712 is really about. It's about preserving access to automotive culture, especially for the next generation. My name is Mike Spagnola, and I serve as the President and CEO of the Specialty Equipment Market Association, better known as SEMA.
- Mike Spagnola
Person
You know, I've spent more than five decades now in this industry as a small business owner and now as the leader of a trade association representing over 7500 companies nationwide, including 1500 innovative businesses right here in California. Our members design, build, and supply products that power the car culture and fuel the state's $40 billion aftermarket industry.
- Mike Spagnola
Person
Ask any car person and they'll tell you that we all have that one special car, a special project, a family memory, something that sparked a lifelong passion. For me, it was a 1970 Datsun 240Z. For today's generation, those cars aren't from the 50s or 60s. They're the 1980s and 1990s.
- Mike Spagnola
Person
Kendrick Lamar's 1987 Grand National, the Fox Body Mustang, or Marty's Toyota 4x4 from Back to the Future. Those are the cars. They aren't daily drivers. They are driven to events, restored in garages, and brought out on weekends. But despite being rarely driven, they are still subject to testing requirements that have become almost impossible to meet.
- Mike Spagnola
Person
Only 7% of California smog checks are performed on these vehicles from that vintage. And most STAR certified stations test fewer than one of these vehicles per day. That's because maintaining a bar 97 emissions equipment required to test these older cars is costly and rarely used, and you can't even buy parts for them anymore, as Jay had said.
- Mike Spagnola
Person
So when you can find testing and when you can find the place, it comes at a high price, reflected as an added burden for those few stations that can still perform those tests. Yet the state smog check exemption still only applies to vehicles built before 1976, a threshold set by the Legislature in 2004, and one that hasn't been updated in over two decades. Since then, California's fleet has changed, technology has improved, and a new generation of enthusiasts have come at age.
- Mike Spagnola
Person
It's time for this policy to catch up. That's where SEMA and its members come in. Through the SEMA garage in Diamond Bar, California, we work directly with CARB, the California Air Resources Board, and EPA to test and certify parts that keep these cars legal. We keep them running, and we keep them emissions compliant.
- Mike Spagnola
Person
In fact, the SEMA garage is responsible for more than half the EOs issued in the aftermarket in this state. This bill ensures that the future generations will still have a way to car culture without unnecessary barriers. California specialty automotive aftermarket supports more than 149,000 jobs in this state and generates over $6 billion a year in tax revenue.
- Mike Spagnola
Person
But behind those numbers are builders, fabricators, small business owners, young men and women, and yes, kids like Kendrick Lamar, who fall in love with a car and want to bring it back to life. SB 712 ensures that the story isn't shut down by red tape. It gives people a way in to reconnect, to belong, to learn how to work on cars themselves. On behalf of SEMA and our members and the next generation of enthusiasts, I respectfully urge you to support this bill. Thank you.
- Dave Cortese
Legislator
All right. Thank you both for your testimony. We'll come back to the Committee shortly. There may be some questions, so we just ask you to stay there. Is there anyone in the Committee room who wishes to express a support position? If so, please come forward now. You're entitled to say your name, any affiliation that you have, if you have one, and support. That's it.
- Tina Perez-Tateo
Person
Tina Perez-Tateo from Modesto, California, in support of SB 712.
- James Lombardo Jr.
Person
James Lombardo on behalf of Beta California in support. Thank you.
- Amy Granat
Person
Amy Granat, Managing Director of CORVA, the California Off-Road Vehicle Association, in support.
- Bob Stearns
Person
Bob Stearns, President of the Association of California Car Clubs. I support 712. Thank you.
- Mike Frankovich
Person
Mike Frankovich, I'm the founder of the Californians for Classic Car Smog Exemptions Facebook group. I'm from Pasadena, California, and I support.
- Mike Perry
Person
Mike Perry, Elk Grove, California. I'm Director of the local Buick Club of America Chapter, and we are in support of AB 712.
- Steve Spatola
Person
Colonel Steve Spatola, Stockton. I have four cars, 78s and 84 and 85, that require these, and I belong to three auto clubs. Thank you very much. I'm in support.
- Mark Sanders
Person
Mark Sanders, Lafayette, California. Like the story goes, lifetime car guy. I own two cars that would be affected by this bill, and I'm in support.
- Steve Schneid
Person
Hi, I'm Steve Schneid. I work for this Committee for 25 years. I wrote the original bill with Quentin Kopp back in the 90s, and it was a rolling exemption. And once Quentin left, was termed out, the ARB succeeded in ending the rolling out... So I'm in support very strongly. Thank you.
- Karen McClaflin
Person
Karen McClaflin, Executive Director of the California Automobile Museum. On behalf of all the Automobile Museums in Sacramento and all of our supporters, we are in support of the bill.
- Chandler Knapp
Person
Good afternoon. Chandler Knapp, classic car collector, as well as a member of the Board of Directors, California Automobile Museum, expressing support for SB 712.
- Joseph McMeans
Person
Hello. Joseph McMeans, I'm just in support of SB 712, El Dorado County. Thank you.
- Jason Walroth
Person
Hello. Jason Walroth, owner of a hot rod shop here in town, Gearhead Garage, longtime car builder. Just trying to support our local community here, and we love your support here, so I'm in support of the bill.
- Derek Chairdema
Person
I'm Derek Chairdema from Carmichael, California, and I'm in support of SB 712.
- Steve Hamp
Person
Steve Hamp from Redding, California. I've got eight cars that could really use this. Thank you.
- David Swift
Person
David Swift from Tujunga, California in support of SB 712. Thank you.
- Dave Cortese
Legislator
All right, thank you all for your testimony. Now is the time for any opposition testimony. We don't have registered opposition, to my knowledge. Oh, we do. Okay, thank you. Well, come on forward. You can take the two chairs over here next... Can you come on over to this side, please? Thank you. You'll have a couple minutes each, and I'll let you self identify.
- Brendan Twohig
Person
Thank you, Mr. Chair and Members. I think there's like 10 groups in opposition in the analysis. I'm Brendan Twohig on behalf of the California Air Pollution Control Officers Association, which are the executive officers from all 35 local air districts. Air districts... in opposition.
- Brendan Twohig
Person
Air districts don't administer the smog check program, but we're supporters because it's a cost effective and equitable way of achieving emissions reductions that are essential to meeting federal clean air attainment standards. Whether a car is a collector is largely self defined.
- Brendan Twohig
Person
And under this bill, an owner of a vehicle just has to think it and then they can get the exemption as long as their car is 35 years old. Under the smog check program, cars don't have to meet the same standards as when they were new. They don't have to meet 2025 standards.
- Brendan Twohig
Person
And that's also because the program allows for the deterioration of the emission control systems over time. California Air Resources Board data shows that a 1982 passenger car that passes smog check emits approximately 123 times the NOx emissions of a 2025 car.
- Brendan Twohig
Person
So assuming the 1982 car has driven just 3,000 miles in a year, it's the NOx emissions equivalent of a 2025 car being driven 369,000 miles a year. And then for daily drivers, which would be allowed under this bill, at 11,000 miles a year, that's the equivalent of 1,353,000 miles.
- Brendan Twohig
Person
So if you think about it this way, while there are only 8,200 1982 cars, if they're all on the road in a day, that's the equivalent of 1 million 2025 cars being on the road that day. And we know they're not driving just one day. Again, these numbers are for one model year of cars that pass smog. But the bill exempts 15 years off the bat and adds another year every year. 1991 cars add about another 72,000.
- Brendan Twohig
Person
By the time you get to 1999, it's about another 349,000. And when we see emissions data for the other years, we'll likely be talking about the emissions equivalent of tens of millions of 2025 cars. So without smog check, emissions equipment can be tampered with or fail altogether, resulting in air pollution impacts substantially higher than what we discussed. So, Members, Mr. Chair, thank you for considering our perspective.
- Bill Magavern
Person
Thank you, Mr. Chairman and Members. Bill Magavern with the Coalition for Clean Air in opposition to what should be called the Smog and Soot Bill, because that's what you get if you loosen smog check. Ozone or smog damages the respiratory tract, causing inflammation and irritation, resulting in coughing, chest tightness, and worsening of asthma symptoms.
- Bill Magavern
Person
Fine particulate matter or soot causes premature death, increased hospitalization for heart and lung causes, bronchitis, asthma attacks, ER visits, respiratory damage, and restricted activity days, especially for older adults, for children and for those with weakened respiratory systems. My wife recently was caught behind a parade of classic cars.
- Bill Magavern
Person
Came home with a headache because, you know, you can really smell the fumes in the air. These older cars just don't have the emission controls that newer cars have, and that's noted in the analysis. That's with the ones that comply with smog check. If you exempt them entirely, you open the door to tampering.
- Bill Magavern
Person
Makes the situation much worse. For these reasons, in 2004, then Assembly Member Sally Lieber, who's here today, authored the law that froze the exemption at 1976. That bill was opposed by Mr. Leno and signed by Governor Schwarzenegger over Mr. Leno's objections. That was the right decision then. It's the right decision now.
- Bill Magavern
Person
This bill would roll back that existing standard. And at a time when we're facing really vicious attacks from the federal government on California's air quality, I don't know why the California Legislature would want to add to that problem. This is one of the worst bills we've seen this year for damaging our air quality. We urge you to hold the bill in Committee.
- Dave Cortese
Legislator
All right. Thank you for your testimony. Any others in the Committee room who would like to express opposition may come forward now and indicate their name, any affiliation, and opposed.
- Jakob Evans
Person
Good afternoon, Members, Mr. Chair. Jakob Evans with Sierra Club California in opposition.
- William Barrett
Person
Good afternoon. I'm Will Barrett. I'm the National Senior Director for Clean Air Advocacy with the American Lung Association in strong opposition. Also representing the Physicians for Social Responsibility Bay Area Chapter and Regional Asthma Management Prevention Program. Thank you.
- Michelle Canales
Person
Hello. Michele Canales with the Union of Concerned Scientists in opposition.
- Sally Lieber
Person
I'm Sally Lieber, currently on the State Board of Equalization and, was mentioned, I passed the law that contained this particular source of pollution in California. And I'm strongly opposed to re-polluting California skies. And I really doubt that...
- Gracyna Mohabir
Person
Good afternoon. Gracyna Mohabir, California Environmental Voters, in respectful opposition. Thank you.
- Alan Abbs
Person
Alan Abbs with the Bay Area Air Quality Management District. Original co-sponsor of the Lieber bill. Strong opposition to SB 712.
- Dave Cortese
Legislator
All right, thank you. Seems to conclude all support and opposition testimony, including in the Committee room. We'll come back to the dais at this point. Senator Archuleta.
- Bob Archuleta
Legislator
Thank you, Senator, for bringing this forward. And to our esteemed movie star, TV star, you know. But here you're not. You're a car enthusiast just like I am. You're here to stand up for men and women who own these beautiful automobiles. And I have a 1967 Oldsmobile 442. That automobile is tuned up twice a year.
- Bob Archuleta
Legislator
Not once every five years. Twice a year. Oil change twice a year, goes on and on. My wife and I searched everywhere for those hubcaps, the original rims, rather, and tires. Two years. When she found the ashtray, the original ashtray, on eBay. I mean, we celebrated because it was original. Our goal was to keep the car.
- Bob Archuleta
Legislator
And the car is original. And I proud to say that every time I put it into a contest, I don't tell them who I am because I don't want to have any favoritism. But we always pull it off walkway with a little tiny trophy about that size that says, what a quality car, what a beautiful car.
- Bob Archuleta
Legislator
And that 67 Oldsmobile 442 is all stock. And so I would be proud to support this bill because I know that when I supported the bill that lowriding and cruising was not a crime. I did that as a former police officer because I knew the enthusiasts and people who own these cars that are in the audience.
- Bob Archuleta
Legislator
30, 40, 50, 60, 80,000 dollars into those automobiles. They are family heirlooms. And they're going from family member to family member. Talk about taking care of the environment. They do it because they want to. And every one of them are, a lot of them are born and raised here in California. They want to stay in California.
- Bob Archuleta
Legislator
They want their business in California. And speaking about California, in this beautiful district of the 30th Senate District, we have a beautiful city called Diamond Bar. And that's where Michael and I met. And I've seen the shop, I've seen the work that he does for all automobiles, current, past, and future.
- Bob Archuleta
Legislator
So I applaud you for coming forward and putting this on our table so we can go ahead and understand. California is a very unique state. It does take care of its environment. It will continue to take care of its environment, but it also will love automobile enthusiasts. So I'm going to support the bill. I will move the bill at appropriate time. And I thank you for coming forward.
- Suzette Martinez Valladares
Legislator
Thank you, Mr. Chair. So my dad never graduated high school. And what he though lacked in formal education, he made it for in skill and curiosity and heart. And when he was 15 years old, he took an auto shop class and built his first engine for a 57 Chevy. And that was a beautiful Chevy.
- Suzette Martinez Valladares
Legislator
And in our family, the classics aren't just cars. They're memories, they're dreams. They're a part of our heritage. And I still remember the summer of 1994, sitting in a midnight blue 1969 Chevy Malibu.
- Suzette Martinez Valladares
Legislator
And it didn't even have an engine yet, but I remember sitting in that driver's seat, and imagine the day that I'd be cruising with that Malibu down Laurel Canyon in the San Fernando Valley. And it wasn't just a car. It was a bond between me and my dad.
- Suzette Martinez Valladares
Legislator
And on my wedding day, he actually gave me a 47 Chevy truck, which is the hardest thing to drive because it doesn't have power steering. My dad is a mechanic, and he rebuilds the classics with his friends, with his sons, with his cousins. I've been under a few hoods myself. And it's not just a hobby.
- Suzette Martinez Valladares
Legislator
It's culture, and it's low riding. It's tradition. It's a place where fathers and daughters find a connection, and we're generations passed down, not just knowledge, but pride and identity. And it's expensive. You know, parts are hard to find, and that drives up prices.
- Suzette Martinez Valladares
Legislator
And my dad is the parts guy, so he's always hunting for what's missing or has what's missing. There's people calling his phone constantly. Hey, Fernando, do you have this part? Yeah, I have it. I don't have it. I'll find it. And on top of that, we know that the smog checks for these cars are another immense cost.
- Suzette Martinez Valladares
Legislator
It's time. It's money. It's frustration for families who are just trying to keep their pieces of history alive. And that's why I think that changing the smog exemption to apply to collector cars that are at least 35 years old is more than reasonable. I want to thank Senator Grove for bringing this bill forward.
- Suzette Martinez Valladares
Legislator
I want to thank Mr. Leno for using your voice to send support families. And yes, my dad called me and he asked me if I'd be voting for this. And I did tell him, of course, dad. I don't want to get in trouble.
- Suzette Martinez Valladares
Legislator
He has way too many classics in the garage that I want to make sure I inherit. So I want to thank you for bringing this bill forward. I'm looking forward to supporting and voting I.
- Catherine Blakespear
Legislator
Okay, thank you. Well, with all due respect to the author and to the chair who I know is a co author, and to Mr. Leno and to everybody who came in support of this bill, I'm not able to support it today. I want to take a minute to explain my position.
- Catherine Blakespear
Legislator
So I serve as the chair of the Environmental Quality Committee and unfortunately, historically smog check exemption bills have not been referred to my EQ Environmental Quality Committee. And I think that's a real shame.
- Catherine Blakespear
Legislator
I would like to be on record saying that I think this should be reconsidered because any other type of air pollution related bill would come through the Environmental Quality Committee. And so there's really no reason that this bill wouldn't come through.
- Catherine Blakespear
Legislator
But I'm wearing the hat of both committees, transportation and EQ, because it is not going to be coming through an environmental committee on the senate side. So it's important to refocus on the reason that we have smog checks in the first place and it's because of the air pollution that they cause.
- Catherine Blakespear
Legislator
So the opposition witnesses gave a lot of really important information and details which I won't repeat. But the committee consultant report has a lot of that as well. And stating I'll just say one sentence that on average, older vehicles can emit up to 10 times more GHG per mile than modern vehicles.
- Catherine Blakespear
Legislator
And the older vehicles that we're talking about today, it is important to remember that they will have a real impact on public health and on the environment and that this bill will increase that impact. It's important that we recognize what exact problem this bill is aimed at solving and the changes that it is making.
- Catherine Blakespear
Legislator
So collector motor vehicles at least 35 years old were already exempt from smog check. They just had to meet a few criteria.
- Catherine Blakespear
Legislator
The existing exemptions already meant that smog checks did not apply to a collector motor vehicle that was one insured as a collector motor vehicle, two older than 35 years old, and that three met the emission standards specific for that model year of that vehicle and that it could pass a quote functional inspection of the fuel cap and a visual inspection for liquid fuel fuel leaks.
- Catherine Blakespear
Legislator
So what this bill does is it takes that existing exemption and it applies to any motor vehicle that someone is not using as their daily driver, but is used primarily in shows, parades, charitable functions and historical exhibitions and is at least 35 years old. So that's it.
- Catherine Blakespear
Legislator
So the car does not need to meet a cursory visual inspection. There are no special insurance requirements anymore. It doesn't even need to meet the emission standards that applied in the year it was made.
- Catherine Blakespear
Legislator
So ultimately, this bill removes all practical checks on whether a car older than 1990 is actually a collector vehicle, because the insurance requirement was helping ensure that collector vehicles were actually collector vehicles.
- Catherine Blakespear
Legislator
And I think the opposition witness said at first that all you have to do is think that it's a collector vehicle because essentially there is no check on that. If it's a self certification or checkbox and you say that this is a collector car.
- Catherine Blakespear
Legislator
What it means to me when I read this is that any car that's more than older than 1990 year could check the box for collector car and not have to get a smog check, which would mean that it would incentivize people to keep older, smoggier, junkier cars.
- Catherine Blakespear
Legislator
And there would be no incentive because they're not running into the barrier of we're having a hard time smog checking this, which I do think does become a problem. And cars, people make decisions about their cars when they run into that barrier. So I see that as really a major problem. So I will just share that.
- Catherine Blakespear
Legislator
If this bill was modified to say that this is for cars that are driven less than 1,000 miles a year, they're towed to the parade, and then they're driven in the parade, I would be willing to consider something like that as long as there was a check on the fact that the car was actually collector and that it was very minimally used.
- Catherine Blakespear
Legislator
But to me, the breadth of this bill indicates that there will be a lot of cars that essentially have the exemption swallowing the rule. So we will have cars that are kept in circulation that wouldn't be otherwise. It will be broader than we think.
- Catherine Blakespear
Legislator
It will expand beyond collector cars because there isn't a way for us meaningfully to check that without no insurance requirement and no visual check that's required anymore. So I don't want to make it easier for us to pollute.
- Catherine Blakespear
Legislator
I recognize the cultural value that's been described and the deep joy that these that cars cause have created for families and the memories that they have. And I value that. And I wish there was a way that this bill could be modified so that it was much more narrowly tailored and not nearly so broad.
- Catherine Blakespear
Legislator
But at this point in this transportation committee, on this day, I'm going to need to be voting no. And so I wanted to explain that. And with that I'll yield back to the chair. Thank you.
- Tony Strickland
Legislator
Thank you, Mr. Chair. I want to thank the senator for bringing this forward. I look at this as a very simple bill. Cars are part of the California culture, whether people like it or not.
- Tony Strickland
Legislator
At the end of the day, you're only talking about less than 1% of the cars that are registered in California. But there's so many enthusiasts that actually drive our economy. I come from Huntington Beach, where we have classic car events all the time.
- Tony Strickland
Legislator
In fact, I represent the whole coast of Orange County, and I just recently came from one that was classic cars that went from all the way from San Clemente and drove right down to Main Street, Huntington Beach. I actually had a classic car, believe it or not. I'm 6'5.
- Tony Strickland
Legislator
I fit into an MG, but I ended up selling that MG not because I couldn't fit, but it's because of parts. And also, it was a hassle. It was a hassle. I like to drive it around Huntington Beach just for the weekend, just to get it running, but it wasn't my everyday car.
- Tony Strickland
Legislator
And most of these cars are not your everyday cars. People drive their everyday car, but this is a car for enjoyment on a weekend, parade, things like that. Classic car shows that are a big driver to our California economy. So I want to thank you for bringing this forward. It's a simple bill.
- Tony Strickland
Legislator
We're talking about less than 1% of the cars. And this allows for the enthusiasm that goes around California because California is. California is part of the. The car culture is part of California's history, and I'm hoping it continues to be part of California's history. So for those reasons, I'm supporting this bill.
- Tony Strickland
Legislator
And by the way, I want to thank. I'm a big fan, Mr. Leno. Thank you for lending your name. A lot of people don't lend their names to things like this, but I want to thank you for lending your name and fighting for the people and the car culture in California.
- Caroline Menjivar
Legislator
Thank you, Mr. Chair. I do want to know that. I won't say the actual topic, but to my colleagues on the other aisle that are talking about this, less than 1%. I want you to remember this rhetoric or this topic that you're.
- Caroline Menjivar
Legislator
This line that you're using for other topics that y'all aren't supportive of that deals with less than 1% of a population or what have you. But I have a question to the author, Senator Grove.
- Caroline Menjivar
Legislator
I share a lot of the concerns that my other chair in EQ shared as I also sit on the EQ Committee and I do want to elevate echo her concerns that that committee is not going to review this bill.
- Caroline Menjivar
Legislator
Can you share with me where in your bill there are checks and balances to not have people abuse the system to say that anyone with a car that is over 35 years old can simply check off that it's a collector's car.
- Shannon Grove
Legislator
So absolutely. I know what you're referring to. You're referring to page 4, line item 9 or starting item 9, line 11 and get my glasses. And when we put the definition of the bill we referenced section code 259 in the vehicle code we were actually amending.
- Shannon Grove
Legislator
The section that we are amending in our bill is not that section. That was just a reference section that included, which is still current law today. And current law, if this bill gets passed is vehicle code section 259. Again, what we're using today to justify as a classic car or a collector vehicle.
- Shannon Grove
Legislator
Vehicle code 259 already continues to outline a collector vehicle. These vehicles are used, this is the language, for particular purposes like parades, car shows, et cetera. And we actually have the exact, exact language. It says under vehicle code 259, the collector vehicle code means a motor vehicle owned by a collector, defined in subdivision A, section 5051.
- Shannon Grove
Legislator
And the motor vehicle is used primarily in shows, parades, charitable functions, historical exhibitions, displays, maintenance and preservation and is not used for primary transportation. That's the code section that defines in the vehicle code. That code section is stated in this language. We don't touch it.
- Shannon Grove
Legislator
There was when we put the definition and we referenced 259 in our bill, there was individuals from the car community, specifically the lowrider community and the Latino cultures that said, people are going to get confused on this. You can't use that language. They'll think you're taking it out. I didn't believe that was true. Apparently it is.
- Shannon Grove
Legislator
And so we scratched or lined through that language and used the 35 year old exemption. But we did not touch this language at all.
- Caroline Menjivar
Legislator
I agree and I looked up Section 259. I know we've had conversations on this, I've looked up the definition. But current statute says as defined in Section 259 if the second word is if.
- Caroline Menjivar
Legislator
So you have to qualify under Section 259 if you are 35, if your vehicle is 35 or older and you are insured as a collector vehicle, that was current loss. So that's been scratched out. Definition hasn't been touched. Because that was a way to prove that that vehicle was in fact a collector's.
- Caroline Menjivar
Legislator
So this bill scratches out the if part. So, yes, you're not touching section 259, but there is a secondary part in the language that is completely being eliminated to actually prove that it's in fact a collector's vehicle.
- Caroline Menjivar
Legislator
And in the language line 36 on page 5, it's a complete elimination of again, the protections, submission of proof that the motor vehicle is insured as a collector vehicle. Motor vehicle is at least 35 motor vehicle complies with exhaust emission standards and so forth.
- Caroline Menjivar
Legislator
Those three subcategories that were falling under the first part of section 259 have been eliminated. Some reading this as you are not allowing any kind of checks and balances and no demonstration. It's simply 35 years old and so forth.
- Caroline Menjivar
Legislator
So while it's only less than 1,000 cars now, you're going to have an increase of Californians now saying, well, now I have a collector's car because my vehicle is 35 or older and that 1,000 is going to increase because again, we no longer have param. We will no longer have parameters when in fact it's a collector's car.
- Shannon Grove
Legislator
So in fact, through the chair and response. Thank you for your question. There's two sections to the collector vehicle bills that we have before us, not before us here, but that have been in the past. And I'll have Mike follow up too, that there is a certain section that requires collector car insurance.
- Shannon Grove
Legislator
Under that collector car insurance, they have to be in a locked garage behind a locked gate gate. A lot of these collector vehicle, these collectors and these people who restore these vehicles don't have locked gates and locked garage. They park them in, you know, their carports or whatever. So that was something.
- Shannon Grove
Legislator
But that's only on a portion of these collector vehicles within a certain time frame. It's not required pre 76 and before. So prior to 1976, you don't have to have car insurance and you don't have to or classic. You have to have car insurance. Everybody has to have car insurance, but not this particular classic car insurance.
- Shannon Grove
Legislator
It's after that year we were just trying to bring consistency within the classic car industry so that you didn't have a pre 1976 standard, a middle of the road standard, and then the standard that we're bringing here. It was just to uniformity, bring stuff together.
- Shannon Grove
Legislator
And when you look at, when you talk about the cars on the road, it is. It is a different type of regulatory process that doesn't meet the emission standards that we have elevated to today. But you're talking about when the comparison on the opposition says that these cars are going to be driving thousands upon thousands of miles.
- Shannon Grove
Legislator
That's just not true. It's just not true. There are, there are people at the press conference, people that are sitting before you today that tell you they don't drive them in their everyday use. We all ride in these. And they are a true collector vehicle.
- Shannon Grove
Legislator
And nobody is taking into account the billions of dollars which I'll let Mike respond to the, you know, $64 billion a year that's this industry.
- Shannon Grove
Legislator
And if somebody's going to invest in $100,000 paint job research and get the total hubcaps, the original wheels, rebuild the engine block or have it contained as it was when it was brand new off the line and invest all that money in the upholstery and all the other things that these car collectors have, they're not going to just drive that car every day.
- Shannon Grove
Legislator
This is a gift and it actually creates. And we. California was the model for bringing these cars rolling off the assembly line. We're the model for the lowrider clubs, for the lowrider vehicles, we're the model. And other states, our neighboring states have a 25 year. That's the rollover 25 years. We're going to 35.
- Shannon Grove
Legislator
So we're going to be stricter than any other state. But if you can't meet the standards here, then that vehicle leaves and so does the revenue that goes with it and the heritage and the culture. And I'd like Mike.
- Caroline Menjivar
Legislator
One final point if I can just and I'll yield my time here. Just one final point. I want to make it clear that I agree with the demographic that you're talking about. This isn't about the true car collector I have. That's not where my issue lies whatsoever. I think it's a beautiful heritage, cultural. I 100% agree with you.
- Caroline Menjivar
Legislator
Those are the individuals I'm not worried about because they take pride in this and they'll check on their car consistently.
- Caroline Menjivar
Legislator
I'm worried about the individual that you are now, the individuals you are now looping into to this bill that are now going to think, well, I no longer have to do a smog check because I can now consider my vehicle a collector's car.
- Caroline Menjivar
Legislator
That's the population I'm worried about because you're bringing them in and there's no guard room in place to prevent them from now claiming their car as a collector's car.
- Shannon Grove
Legislator
Okay and in response to that Mr. Chair. Under the 27153. Yeah, 27153 of the Motor Vehicle Show Code says you shall not be operated in a manner resulting in the escape of excessive smoke, flame, oil and gas from so it's a visible when you're driving behind a car CHP will give you a ticket and then you have to fix it you have 45 days to fix that or you can't that's it's an issue with so we didn't touch that code section either.
- Shannon Grove
Legislator
We're not stopping people. We're not helping people pollute we're just allowing car enthusiasts to be able to participate in the 1980s and some in the 90s and let it be a rollover like it used to be consistent with every other state in the nation, but with a 10 year extra gap. Instead of 25 years it's 35 years.
- Laura Richardson
Legislator
Yes. Thank you, Mr. Chair. First of all, I want to commend the author. You know, with the work that we do, some bills are harder than others, and it's kind of tough when you take on something that, you know, is going to have a tough way to go.
- Laura Richardson
Legislator
So first of all, I want to commend the author for the effort that she's made thus far and hopefully the success that we'll see. Second of all, I want to thank Mr. Leno for coming today. It's really enjoyable to see you in such good health.
- Laura Richardson
Legislator
Many of us pull for you, and you're also an icon, like many of your cars are. And your only promise today is you have to promise not to take this material back of what you saw today in jokes that you'll share. They wouldn't believe it. You're right. You're right on that.
- Laura Richardson
Legislator
So with that, I just want to point out a couple things. One, I represent a part of my district, the 35th district, San Pedro, California. And I happen to reside in San Pedro. And in San Pedro, we have many car clubs, but one in particular is the Legends Vintage Car Club.
- Laura Richardson
Legislator
And usually about two times a year, there's these major car shows. People line up early in the morning, like I'm going to church at 8:00, and they're already lining up to participate.
- Laura Richardson
Legislator
And I would say that every Sunday, whether there's a car club, car club meeting or not, there's always cars, vintage cars in my neighborhood on Paseo Del Mar. And it's the thing where people come, they park their car, they have Sunday afternoon lunch. Everyone walks by. It's a very highly walked area.
- Laura Richardson
Legislator
People walk by, I walk by, and I dream about which one is going to be mine one day and what color I want it to be. In fact, I shared with Mr. Leno that I want a '57 convertible Bel Air. And I told him I had a '94 Speedster, which are only made in '89 and '94.
- Laura Richardson
Legislator
And he said, well, why did you get rid of it? And I said, well, I had to pay off my ex husband in the divorce. So true story.
- Laura Richardson
Legislator
So that being said, I had asked, I had written down a question here as the discussion was going back and forth, about whether this Bill was really going to avoid people from having properly operated vehicles. And I looked up really quickly, as fast as I could on my phone.
- Laura Richardson
Legislator
And in addition to the code that the author cited in California Vehicle Code 4001 makes it illegal to operate a vehicle on a highway in a way that violates the law, including operating a vehicle that is unregistered, not equipped as required, or not in compliance with size, weight, load or provisions, among other things.
- Laura Richardson
Legislator
So I just think it's really important to convey that the smog is only one portion. If an older vintage car is not safe, if it's not being driven properly, many of the other aspects, there are guardrails to make sure that they are being operated appropriately in our communities. So I commend you again, our author.
- Laura Richardson
Legislator
I look forward to voting on this Bill in a positive way. And us continuing this wonderful culture is of what California is all about. Thank you, ma'am.
- Sabrina Cervantes
Legislator
Thank you, Mr. Chair. I certainly want to make some points and echo some statements that my fellow Senators made as a former author of the lowrider resolution. You know, many of us understand the cultural and historical significance of these beautiful vehicles. I do want to acknowledge that.
- Sabrina Cervantes
Legislator
We know that many of these collector vehicles are only driven for parades on the weekends. Many of them don't have high mileage. We want to actually keep them low, given that I have many family members that drive lowriders on the weekends and supporting nonprofit events throughout the district.
- Sabrina Cervantes
Legislator
But I do want to also express some of the concerns that my fellow colleagues did bring up as it relates to some individuals who may want to exploit the collector status to avoid our emission compliance.
- Sabrina Cervantes
Legislator
And, you know, I want to make sure we are not undermining our air quality in our state and all the efforts that we have made. And so I just ask that if this Bill does continue, that there is perhaps more conversation around that and maybe looking at a mileage cap, you know, just some suggestions.
- Sabrina Cervantes
Legislator
I will support the Bill today as it, to get it out of Committee. However, I will Reserve my right, should it hit the floor, to read the language, but just appreciate the work being done thus far and will again support these efforts as it continues.
- Kelly Seyarto
Legislator
Yeah, thank you. I walked in, as my colleague was saying, this is, you know, these issues are very difficult, but they're really not. This is not a difficult issue. These old collector cars, they're not a plethora of them running around, driving all over our highways. They're exactly as some of my colleagues have already described.
- Kelly Seyarto
Legislator
They are such a minuscule part of any environmental issues that we have that they're negligible.
- Kelly Seyarto
Legislator
And yet, you know, one year we're arguing for people to go out and be able to drive and cruise and create more emissions, and then we are concerned about those emissions in a Hearing like this, and then we all go jump on a plane and use more missions going on the plane to wherever we're going than these cars will ever put into our atmosphere anymore.
- Kelly Seyarto
Legislator
So, you know, sometimes we have to make sense with our rules. I do have an older car. It's not 35 years old. And I'm not going to, you know, be surpass or bypassing our system.
- Kelly Seyarto
Legislator
But right now it's waiting to get smog smog certified, even though it went through all the things, doesn't create any emissions past what it's supposed to. But it hasn't drive cycled yet. That's how ridiculous this is. My car is just fine, and yet I can't get tags for it. But I can't.
- Kelly Seyarto
Legislator
If I don't have tags, I can't drive it. Some of our systems, they don't make sense, and they don't make sense to normal people out there. And even though you're a celebrity, I consider you a normal person out there, even though you have a bunch more cars than I'd ever have.
- Kelly Seyarto
Legislator
So, you know, for me, this is an easy support. And I hope that we don't send mixed messages to people to tell them to go drive and yet don't go drive.
- Kelly Seyarto
Legislator
And if we're that serious that we think this is going to do environmental harm with the few cars that are out there, you know, why on earth would we. What are we going to. We're going to squish them? We're going to take them to the dumpster and squash them? No, we're not. They're a part of our culture.
- Kelly Seyarto
Legislator
They're a part of our history. We need to preserve that. And we need to reserve the regulatory framework that we have to make all of our lives really, really inconvenient for things that actually make a difference. Thanks.
- Monique LimĂłn
Legislator
Thank you. Thank you, Senator Grove, for this conversation. I will also say that this conversation. You've been working on this Bill, it started before this hearing, and certainly you and I have had conversations about this. And I'm going to explain.
- Monique LimĂłn
Legislator
You know, while I appreciate that some of my colleagues have recognized that this is an easy Bill, it's, you know, for them. I will explain to you why I actually am having a hard time with this Bill.
- Monique LimĂłn
Legislator
On the one hand, you and I discussed that I had a constituent who I happened to help with this particular issue and through opening up a case in our office, and most of us know what that's like, realized that there were only two places that this individual could go to in Southern California for a really great collector car, great community supporter, only used on occasion.
- Monique LimĂłn
Legislator
I asked a lot of questions like how do you actually get it down to Orange County? Like, do you have to put it, do you drive it down there? How long does it take you? Do you have to put it, you know, on a tow truck and get it down there?
- Monique LimĂłn
Legislator
I asked a lot of questions and I learned a lot about this. And this was a few years ago, by the way.
- Monique LimĂłn
Legislator
And so I think, you know, from that end I learned that it really has been difficult to find the right place that can do the smog checks for, you know, collector cars, for cars that are not used often, for cars that are cared for in a deep way. And that taught me a lot about the process.
- Monique LimĂłn
Legislator
And I think for me, the issue isn't about whether or not we think collector cars are kind of in their own category. I would say they are for a number of reasons that have been outlined. But the issue that I've struggled with is the enforcement piece. You shared some language with me about what defines a collector car.
- Monique LimĂłn
Legislator
And I've talked to the Chair about this as well. In that, you know, we are removing an insurance piece that was part of the equation of how we're able to classify collector's car.
- Monique LimĂłn
Legislator
We're now going to rely on entities that do smog checks to check mileage, to check usage, to be able to certify whether or not this is indeed a collector car. Because for me, the enforcement piece is important. I don't think a 35 year old Honda Civic that could go a long time is what we're talking about.
- Monique LimĂłn
Legislator
And so, but I've also struggled with, is the, are the enforcement mechanisms in place enough to make sure that this isn't a loophole for.
- Monique LimĂłn
Legislator
I mean, and I drove a Civic at one point. So I just, I'm not bashing on Civics, just to be clear, but, you know, I just don't think that's the collector cars we're talking about. And so my issue has been around what are the guardrails? As have other committees, Committee Members brought up like this.
- Monique LimĂłn
Legislator
My debate isn't about whether we should treat this particular car that is used differently. Differently. For me, the answer is yes, if it's used differently, we should treat it differently. But it's this other piece around, what is this open up?
- Monique LimĂłn
Legislator
And are the pieces of relying on the entity that's doing a smog check enough to make those of us who do have concerns about loopholes and about emissions and where you know, air quality is important. It is an important piece that we think about. How do we solve for those concerns. So I share those thoughts with you.
- Monique LimĂłn
Legislator
I don't know if you have a reaction to it. And that is why I've struggled with this particular Bill.
- Shannon Grove
Legislator
So based on your comments through the chair, based on your comments, and correct me please if I'm wrong, that you support the consistent language from 1976 to and back, it's currently in statute.
- Monique LimĂłn
Legislator
I am okay with that. If that is truly used for a collector. If we're just opening up 1976 to any car.
- Shannon Grove
Legislator
Prior current law right now, prior 1976, it says that you go to the DMV, you fill out documentation, it tells you what you do, and then it references vehicle code 259. My expert can correct me if I am wrong. Okay, so it references vehicle code section 259, which is a vehicle code I shared with you.
- Shannon Grove
Legislator
And it also allows the CHP to use any visual emissions of tailpipes to site that and they have to correct it within 45 days. All of that, that's all pre 1976, our language just takes that language and makes it for 35 years and older. And this is why there's this gap in between those two that changes it.
- Shannon Grove
Legislator
With insurance without insurance must be in a garage, must be under lock and key, which a lot of people, especially we got it from the Latino community, they don't have garages a lot of times. They don't have a locked fence gate with an alarm where they have to put the car.
- Monique LimĂłn
Legislator
And all that's required for collectors car insurance. But pre1976, you are not required to have collector car insurance, just regular car insurance. So I'm just saying it's all like it is in pre 1976. They have to have insurance. They have to abide by the rules of the road. They can't have a visual exhaust.
- Monique LimĂłn
Legislator
They're just exempt from the smog piece every bi annually because they can't. It's not available. And I did use your comments today in the press conference. I did not identify who you were. So you have admitted it yourself. That I said. I met with a colleague and she told me that it was almost impossible.
- Shannon Grove
Legislator
There was only two locations in Southern California. And that's what we're trying to fix. I'm going to, you know, you guys know I just celebrated my 60th birthday in 1983. I had a Dodge Dart, right? Not that I would ever restore a dodge dart.
- Shannon Grove
Legislator
But 60 years is a long time, you know, to live on this earth and not connect with your growing up. When we did the press conference, Mike at SEMA shared something that I want to share with you that he talked about these kids in the 1980s that drove the Trans Am or that drove the.
- Shannon Grove
Legislator
Whatever those cars were. He can rattle them off. I can't. I'm not a collector car. I'm trying to help defend them and protect them and get them something great. But it really made sense. And you had all these young people in the audience that came up with the lowrider clubs and the other individuals that brought their cars.
- Shannon Grove
Legislator
There were fathers and daughters or young kids with older people, and they were all into it. Right. But they can't go back to their high school years. I couldn't go back to 1983 when I graduated from high school and restore a car of that model because it's not allowed in California.
- Shannon Grove
Legislator
Cars are leaving the state because they can't get the smog exemption or meet them. I'm not doing anything here in this Bill that is not already current in law for 1976 and back. There's no difference. I'm just making this that there's still all the enforcement mechanisms. Pre 1976, they're exempt from smog.
- Shannon Grove
Legislator
Pre 1976, they don't have to have collector car insurance, but have to have insurance. They still have to fall under the vehicle code section that Ms. Richardson read. They still have to fall under the vehicle code section of 259 that defines a collector vehicle.
- Shannon Grove
Legislator
And they still have to fall under the CHP code that the CHP officers gave us this morning.
- Monique LimĂłn
Legislator
So I guess that I would say that for clarification, I think that the absence of collector car insurance is the piece that I worry about, not because I, I. Because I don't have another equivalent to verify. And that's the issue. If that is no longer on the table, what is the equivalent that will verify?
- Monique LimĂłn
Legislator
And I'm not sure. I believe that, you know, a person who is doing the smog check is the equivalent of the verification that the collector's car insurance provided. And so that, to me, is the guardrails that I'm talking about. I think the pieces about. I mean, they're absolute. There is something special about collectors cars.
- Monique LimĂłn
Legislator
I don't need to be convinced about that. I absolutely believe it.
- Monique LimĂłn
Legislator
And I absolutely believe that in many communities, diverse communities, a collector's car is special for a lot of different reasons and I, and I want to be understanding of that, but I also feel like this is opening up a piece and I'm trying to find the equivalent of verification that the collector's car insurance provided that seems to be absent and no longer equivalent.
- Monique LimĂłn
Legislator
It feels like it's less than as this Bill moves forward. And that's a piece I struggled with.
- Shannon Grove
Legislator
So. But the 1976, the current law does not require collector car insurance. It does not. So I'm just aligning those two things. I haven't changed anything that's already current in law is what I'm trying to say. And I'll let Mike respond to that insurance question if that's okay, through the chair, please.
- Mike Spagnola
Person
Thank you. Yeah, the other issue with collector car insurance, there are very few companies in California offering collector car insurance, of course, and we all know how hard it is and how expensive it is for car insurance.
- Mike Spagnola
Person
So opening it up to allow all insurance companies insure these cars, certainly from a cost standpoint and from a disproportionately from somebody that's trying to restore a car or a young man or woman that's trying to get in this industry and restore a car, obviously they're counting their nickels and opening up to every insurance company to insure these cars makes a difference.
- Dave Cortese
Legislator
Just to clarify your comment, you're not opposed to insuring the vehicles you're talking? Not at all.
- Mike Spagnola
Person
It's just, it's just specifying that opening the market up so that any company can insure the car just makes it more competitive.
- Dave Cortese
Legislator
Yes, I should know that. I'm the Chair of the Transportation Committee. I did know that. Just wanted to clarify his response. Thank you, Senator. Senator Valladares, you said indicated me you had a follow up comment. I can't go around twice, but if you have something. Thank you, that's very helpful. Ask a couple questions myself. Mr. Leno.
- Dave Cortese
Legislator
You're pretty astute in terms of what's out there in terms of auto, especially 35 and less and collector cars in general. 35 cars. That are 35 years old and older. We heard about the potential exponential growth of cars that are 35 years and older in terms of soot and pollution.
- Dave Cortese
Legislator
To your knowledge, how many cars 35 years and older are still being manufactured?
- Jay Leno
Person
I don't understand the question. Well, none. You know, if I could just say something. You know, during the 60's when Ralph Nader came around, all the car enthusiasts hated this guy. I didn't. He made cars safer. He made cars better. The work these folks are doing, I think is excellent. California air is the cleanest it's ever been.
- Jay Leno
Person
But I think just. I see this as some. As a bit of a compromise. You know, I don't drink. Never had a drink in my life. It was up to me. You could have prohibition, but people want to drink. So it's .08 and that's what you go by. And I can apply that standard here.
- Jay Leno
Person
Look, people are going to drive these cars whether you let them or not. They get caught every day. If you make it easier them to meet the standard. You don't turn criminals out of people who can't afford a modern car. There are so many 80's and 90's cars around that are good running.
- Jay Leno
Person
And I laughed at your Honda Civic because there's a huge Honda Civic collect. I mean, it's a collector car. Young kids are collecting those things. And it was one of the most efficient cars of its period. So that's my thing.
- Jay Leno
Person
We're trying to reach a .08 or some sort of standard because I think people are going to do this anyway. And why make them criminal? I see all these people with. I never seen so many Montana license plates in my life, driving around Los Angeles. Everybody seems to be from Montana because they don't.
- Jay Leno
Person
They don't pay the registration or pay anything because it all has to do with emissions. And if we can get a vehicle to meet, it just seems like a proper standard to me. And I applaud the work you guys are doing. I'm not someone who goes, zero, you guys are full of crap. No, it's great.
- Jay Leno
Person
The lung disease, all the things you've helped prevent. I can actually see the mountains now. When I first came to California, I'd be in the 101 and one day it rained. I went, oh my god, there are mountains there. I never knew that before. So thank you. But I'm just trying to figure.
- Jay Leno
Person
I just assume people are going to do this. So let's work out something that makes it possible, you know, that's all. It's like smoking. Everybody used to do it. You made it socially unacceptable. It's socially unacceptable now to have a car that smokes. I remember seeing political ads for some Senator back in the 80's.
- Jay Leno
Person
Oh, sure, his car smokes a little bit, but he's saving. And you couldn't have that ad now. And that's what I mean. It is socially irresponsible. People turn you in if you're driving a polluting car, there's a number you can call and the cops go and they act on it.
- Jay Leno
Person
Because when people coming after me for things, they would turn me in just to, to try and get even. They say, Jay's driving a car. Well, they checked me out. No, that wasn't the case. That happened a few times. But I mean, I say thank you for the work you do. My whole life is compromised.
- Jay Leno
Person
How can we work something out that's acceptable to both sides? And that's why I kind of supported this Bill, because it seemed like. It seemed pretty acceptable.
- Dave Cortese
Legislator
Thank you. Thank you. Let me ask our Executive from SEMA. So there's. There's no cars 35 years and older being put on the market in addition to what's already out there? Would you agree with that?
- Mike Spagnola
Person
That's correct. There are no new 1930 or 35 cars and older being built.
- Mike Spagnola
Person
Those cars go down every day. I mean, you know, they end up in junkyards. This is really about a list of cars that stay on the road or that want to be restored and want to be cleaned up and want to be driven as collectors.
- Dave Cortese
Legislator
And what do you know about this term daily driver? What. What are the average miles in California for a daily driver? Low number, if you want.
- Mike Spagnola
Person
Yeah. In my personal use, in my collector cars, I drive them a couple thousand miles a year maybe.
- Mike Spagnola
Person
Yeah. My day to day newer cars, I put about 10 to 12,000 miles a year on them.
- Dave Cortese
Legislator
12,000 miles a year. We could use the lower number. So after 35 years, how. That Honda, how many miles does it have on it after 35 years at 12,000 miles a year?
- Mike Spagnola
Person
Oh, these cars, you know, these. Some of these older cars are 250-300,000 miles if they're still around.
- Dave Cortese
Legislator
Well, that number's 450,000 miles. Okay. What is a likelihood of a car with 450,000 miles on it being used as a daily driver continuing to function without restoration?
- Mike Spagnola
Person
Not going to happen. Not going to happen. You're lucky to get. I mean, cars today are better than they were years ago, but you might get 250,000 miles on a car before it's got to be rebuilt.
- Mike Spagnola
Person
You'd have to completely rebuild the engine, at least, transmission, suspension, brakes, those sorts of things.
- Dave Cortese
Legislator
Right. So if there are cars with 450,000 miles on them that are driving, the likelihood is that they fit the definition of this Bill as a restored or collected car.
- Dave Cortese
Legislator
If not, what I'm hearing you say, and correct me if I'm wrong, is they're not long for the road, if they're even running at all.
- Dave Cortese
Legislator
Right. So for those who would like to see non restored 35 year and older daily drivers go away, are they winning or losing that battle?
- Mike Spagnola
Person
I would say they are winning that battle if they're going into the junkyards. For sure.
- Dave Cortese
Legislator
And so do you see any reason to run those same cars through a smog check to force them off the road?
- Dave Cortese
Legislator
Could you speak either one of you to the, to the difficulty in getting a STAR checked smog certificate with a visual inspection with parts that have been replaced on the vehicle? Going back to the vehicle, the scenario we just talked about. Right. So this car was restored, but it's.
- Dave Cortese
Legislator
That car is restored, but it needs, it's 35 years old and it needs to go in to a STAR certified smog station. And it was rebuilt, but it was rebuilt with non factory parts because that's all that was available. What happens when it goes in for the smog check?
- Jay Leno
Person
Well, you know, you have a little. For example, I have a car I restored, finished it from the factory on the gas. You opened the filler door and it said unleaded fuel only. And the STAR station said, you don't have the unlighted fuel only, can't pass sticker. Oh no, but it passed the test.
- Jay Leno
Person
I just don't have the sticker yet. You can't get. There's no original factory and I have the sticker. I mean, that's an extreme example of what can happen.
- Mike Spagnola
Person
So there's a couple of things here to discuss. One is the fact that there are some of these cars that are non computerized. So they don't have what's called an OBD2 port. So many cars when you go in to do your smog check, they simply plug into the computer. They can read through the computer.
- Mike Spagnola
Person
Car either passes or fails. On some of these older cars they have to go on a dyno on a roller. And those emission stations, those stations are far and few between and the reason for that is these dynos and this equipment is no longer serviced. You can't buy parts for them anymore and they're expensive to maintain.
- Mike Spagnola
Person
So the owners of these bars, smog stations, no longer have this test equipment. If they do have this test equipment and they have been able to maintain it or somehow keep it running, they charge 567 times more than a normal check. And you have to try to find one of those stations.
- Mike Spagnola
Person
So that's one issue. I could go chapter and verse about. We work closely with carp, with the California Resources Board. You may know that we have two emissions labs and again we test and certify parts, all the aftermarket parts for the industry. We're 50% of the EOs that come through CARB every year.
- Mike Spagnola
Person
But I can tell you a lot about the inconsistencies that happen at power stations and that happen even at CARB when we're trying to certify parts. It is a nightmare. And we spend millions of dollars a year, we lose money in our labs just to get products through and to get certified for the good of the industry.
- Mike Spagnola
Person
And so the red tape and the amount of bureaucracy that happens is I could spend a day on it.
- Dave Cortese
Legislator
And Senator Archuleta talked about an Oldsmobile 442 that he tunes up twice a year. For the sake of this question, let's assume that that car could pass a smog test even though it's already exempt. Let's assume that it could. Is it any cleaner after the smog test than it was before the smog test?
- Mike Spagnola
Person
It's not, it's. Now I will tell you that these cars again as you mentioned, getting them the restored, unless we'll take that 35 year Honda Civic to rebuild that and to go through and to get it to where it's collectible and used on weekends and people tend to go through them and they tend to clean them up.
- Mike Spagnola
Person
The other piece of this that we may be missing in this culture piece is that young man or woman that wants to learn about a car and wants to learn how to restore a car and maybe can only afford that 35 year old Honda Civic and wants to build it over time and add those parts and pieces and get it running right.
- Mike Spagnola
Person
There's pride in making sure your car writes right. Collector people do not want to be stuck on the side of the road. They want to make sure that car is running to top condition and running well.
- Mike Spagnola
Person
And they'll put the time and effort, it may take them 2 years, 3 years, 5 years, 10 years to restore these cars. But when they're done, it's a sense of pride and there's a sense of ownership and there's a sense of making it run right.
- Dave Cortese
Legislator
So the 450,000 mile daily driver Honda, that's five years old. If, if the teenager or the young person wants to restore it and wants to purchase it, can that purchase transaction be conducted without a smog certificate under the car pre restoration?
- Mike Spagnola
Person
It currently it cannot. It has to go through smog check before it can be purchased and DMV'd and put in your name.
- Mike Spagnola
Person
Yeah, correct. Yeah. If it doesn't pass smog, it can't, it can't go through the DMV. It cannot pay for the tags, it cannot pay for the sales tax.
- Dave Cortese
Legislator
All right, thank you. That's all the questions I have. I want to thank the, the author for tackling this, you know, for having the. Courage isn't the right word. This is not a courageous Bill. This is a Bill that's I think standing up for people who see the common sense problems with the way the laws are.
- Dave Cortese
Legislator
I thought Senator Seyarto's example was one of many issues that comes up.
- Dave Cortese
Legislator
I tried to draw out a few of those issues with my questions in terms of the questions and answers as to what the real life application of these rules are, as to whether or not it's true that we have an expansive economy of or population of 35 year old and older cars. We don't.
- Dave Cortese
Legislator
So those who want those cars off the road are already winning. Should be able to feel very comfortable supporting a Bill like this without worrying about increasing air pollution over time, at least from these vehicles.
- Dave Cortese
Legislator
It's one of the few, I think, areas of GHG and pollution that's out there right now that's actually on a reducing graph line. Certainly wildfires are going exactly the opposite direction. We're increasing pollution on a seemingly daily and weekly and annual basis. In so many other areas we have an increasing population of pollutants.
- Dave Cortese
Legislator
I believe this is a decreasing population, a fixed population of vehicles. That's in effect. The very fear that people have that they're going to be driven a lot is what drives them right off the road and makes them functionally obsolete. The, the problems with getting parts for these cars.
- Dave Cortese
Legislator
I have two vehicles that are registered a '57 Chevy pickup that's restored and a '72 Chevelle that's restored. They're both exempt. Like Senator Archuleta, I don't have to worry about whether this passes or not for those cars. But being a car enthusiast over the years, we don't have the time for the stories. I could tell you, true stories.
- Dave Cortese
Legislator
I could tell you about going in and finding out that on vehicles post 1980, even those that have that were built and manufactured with computer chips, the computer chips are not available. When the chip goes out, you're done in terms of ever getting a smog check on that car again because there's nobody who makes the chip.
- Dave Cortese
Legislator
There's nobody who does that anymore. That's one example of many. Any exhaust modification that you need to make carburation modifications that you need to make almost certainly make the car ineligible.
- Dave Cortese
Legislator
It would clean up the pollutants, but would almost certainly make it ineligible to pass a visual check in one of these star in one of these STAR shops.
- Dave Cortese
Legislator
So I think this Bill is literally cleaning up, no pun intended, cleaning up laws that exist on the books right now that are, frankly, putting people through hellish circumstances who are ordinary people just trying to do what's essentially an ordinary hobby is. And as many have said here, one that is part of the California tradition.
- Dave Cortese
Legislator
You know, we need to probably get away from automobiles all together at some point as daily drivers. And many of us are working on that. I was appreciated hearing Mr. Leno say today about how he is driving EV vehicles. I do as well, despite the fact that I have collector cars. Those are not daily drivers.
- Dave Cortese
Legislator
We need to keep moving in that direction. I think this Bill does that and also solves these problems that are in effect, pardon the expression, driving people crazy trying to comply with the law. So I am recommending an aye vote.
- Dave Cortese
Legislator
I don't know how the vote will go, but we do have a motion from Senator Archuleta and I'm going to ask the assistant to call the role at this time. You want to state the. Oh, I'm sorry. That's okay. Comments?
- Shannon Grove
Legislator
No, absolutely, sir. Thank you for your comments. Members. Like I said, we're just taking the law that's currently in existence from 1976 back. They still have to meet requirements on the road for insurance safety of the vehicle.
- Shannon Grove
Legislator
And I think that it will expand the history that we share and keep these rolling pieces of history here in California, not to mention the billions of economic impact. And respectfully ask for your aye vote.
- Committee Secretary
Person
The motion is do pass to the Committee on Appropriations. [Roll Call]
- Dave Cortese
Legislator
All right, we'll leave that Bill on call. And as we have absent Members, he'd like to. It's nine to two presently. Nine ayes, two no's. We have absent Members. We'll keep the Bill on call. Two to continue.
- Dave Cortese
Legislator
We're going to take a quick recess, but I do want to thank all the witnesses, including those that came up to the microphone to speak. Support and opposition on both sides. And thank you, Senator, for your presentation. Very short recess for those waiting to present. We're just clearing the room.
- Dave Cortese
Legislator
Yes, Vice Chair, Consent calendar is moved and mass the assistant call the roll in the consent calendar.
- Committee Secretary
Person
The consent calendar consists of file item 3, SB 544 by Senator Laird, file number 8, SB 78 by Senator Seyarto, file 9, SB 533 by Senator Richardson, file 11, SB 671 by Senator Cervantes and SB no. And file number 14 by SB 506 by the Transportation Committee.
- Tony Strickland
Legislator
That bill will be on call. Next up, members, file item number two. Senator Wiener, you want to come up and present your bill. Members, is phylum number two, SB 71. Senator, you may open.
- Scott Wiener
Legislator
Thank you very much, Mr. Vice Chair. Colleagues, we're moving on from antique cars to buses and trains today. Thank you so much for hearing the bill today.
- Scott Wiener
Legislator
SP 71 will largely make permanent a statutory CEQA exemption that I authored in 2020 and we extended in 2022, relating to various sustainable transportation projects, including rapid bus service, light rail, bike and pedestrian projects, and so forth. Certain projects relating to near zero technologies. The sunset will be extended by several years to 2032.
- Scott Wiener
Legislator
The bill also will expand the exemption to include bus shelter lighting, microtransit, paratransit shuttle services and ferry projects, and a few other items. So, colleagues, this has been a very successful CEQA exemption. It's been invoked approximately 100 times since it's been created for a variety of projects. It still does require a community meeting, particularly for larger projects.
- Scott Wiener
Legislator
And I think it's been a successful exemption that we should make permanent. And I respectfully ask for an I vote. With me today to Testify is Jenny Delumo, the Environmental Review Manager at the San Francisco Municipal Transportation Agency, and Emily Loper, Vice President of Public Policy at the Bay Area Council.
- Jenny Delumo
Person
Good afternoon, Chair Cortese and committee members. My name is Jenny Delumo and I'm the Environmental Review Manager at the San Francisco Municipal Transportation Agency. The SFMTA is a Department of the city and county of San Francisco that manages our public transit, biking and rolling walking infrastructure, also paratransit and taxis.
- Jenny Delumo
Person
I am here today to testify in support of SB 71 by sharing some of the successes of its predecessors SB 288 and SB 922. Prior to these bills, it could take months or years to evaluate greenhouse gas reducing transportation projects under CEQA and it now takes us weeks.
- Jenny Delumo
Person
In practice, this means that after a project has been designed and vetted through extensive community engagement, the SFMTA uses a checklist to quickly evaluate whether it fits into any of the project types that that is allowed under this exemption.
- Jenny Delumo
Person
Since SB 288 was passed, the SFMTA has used the exemption to quickly deliver more than 40 community supported projects.
- Jenny Delumo
Person
This includes transit only lanes and transit prioritization projects on key routes, vision zero and quick build projects that enhance safety for people walking and biking and most recently a biking and rolling plan to create safer, better connected and more accessible streets. The SFMTA, like other transit agencies, is facing fiscal challenges.
- Jenny Delumo
Person
Our city's chief economist has stated if we don't have a solvent transit agency, we will never have economic recovery. This requires thoughtful and creative solutions to ensure our network gets people where they need to go safely and reliably.
- Jenny Delumo
Person
Without this exemption in our toolbox, the SFMTA would spend money and time on the review of climate friendly projects that could otherwise be invested in performance and recovery enhancing transit projects which ultimately saves the agency precious operating dollars.
- Jenny Delumo
Person
San Franciscans are looking to the SFMTA to deliver the network that they need and want, including future projects that enhance our network and support the transition to a zero emission fleet.
- Jenny Delumo
Person
It would be detrimental to our network, economic recovery and climate goals if we go back to a time when these types of projects which have clear environmental benefits take months or years to complete sequel review. SB 71 would avoid that.
- Jenny Delumo
Person
So SFMTA thanks you for your consideration and Senator Wiener and the sponsors for their leadership and we respectfully urge your I vote on SB 71.
- Emily Loper
Person
Thanks. Good afternoon, chair and members of the committee, Emily Loper with Bay Area Council so, as you know, the transportation sector accounts for nearly half of all the GHG emissions in the state.
- Emily Loper
Person
And while we've made great progress in decarbonizing the sector in recent years, it's still still clear that we will not meet our climate goals unless we have a significant shift from single occupancy vehicle trips to sustainable modes of transportation like transit, biking and walking.
- Emily Loper
Person
But public agencies that seek to build that transit, bike and pedestrian infrastructure have faced significant permitting challenges that add costs, delays and can make the projects prohibitively expensive to build. CEQA is designed of course, to protect our environment. But the very projects that protect our environment have been ground to a halt because because of this CEQA process.
- Emily Loper
Person
So in 2020, as the senator mentioned, the legislature passed SB 288, which established a set of statutory exemptions from CEQA for certain clean transportation projects that reduced emissions. The goal was to expedite the implementation of those important projects and the law worked.
- Emily Loper
Person
According to a recent analysis by our co sponsors at SPUR, over 90 projects statewide have advanced more quickly and cost effectively because of this law. They include transit priority projects, bike and pedestrian improvements, bus rapid transit lanes, zero emission vehicle charging infrastructure and more. So now SB 71 would make those exemptions permanent.
- Emily Loper
Person
This will create long term certainty for local agencies as they plan for more of these clean transportation projects in the future. And SB 71 will also bring parity among transit modes in making ferry public ferry projects eligible for this exemption, while also ensuring that those projects remain subject to robust regulatory oversight.
- Emily Loper
Person
So even with this exemption, public ferry projects would still be required to obtain permits from up to 14 different regulatory agencies. SB 71 extends a proven strategy to deliver the infrastructure we need without compromising the environment. And we're proud to co sponsor this bill and encourage your I vote. Thank you.
- Tony Strickland
Legislator
Other witnesses in support for identification purposes. By the way, members this is a support on both sides, so.
- Matthew Robinson
Person
Thank you. Mr. Chair. Matt Robinson with the California Transit Association. We're one of the co sponsors. I'm just sitting here in case there's some questions that come up I can help right through.
- Tony Strickland
Legislator
Thank you for being here. Other witnesses in support by identification purposes only.
- Chris Micheli
Person
Mr. Chair, Chris Micheli on behalf of the Los Angeles Area Transportation Authority in support thank you.
- Nicole Wordelman
Person
Nicole Wordelman on behalf of the Orange County Board of Supervisors in support.
- Raymond Contreras
Person
Raymond Contreras on behalf of SPUR as a proud co sponsor in support.
- Charles Watson
Person
Charles Watson on behalf of BART, the Bay Area Rapid Transit District in support thank you.
- John Moffatt
Person
John Moffatt on behalf of the American Council of Engineering Companies of California, thank you.
- Cesar Diaz
Person
Chairmember, Cesar Diaz on behalf of the California Hydrogen Business Council in support.
- Brendan Repicky
Person
Brendan Repicky on behalf of Sunlight Transit Agency, Monterey Salinas Transit and the San Mateo County Transit Association in support.
- Michael Pimentel
Person
Michael Pimentel here on behalf of four agencies, Caltrain, Santa Cruz Metro, San Joaquin Regional Transit District and the San Francisco Bay Area Water Emergency Transportation Authority. All in support thank you.
- Moira C. Topp
Person
Good afternoon. Moira Topp, on behalf of the Orange County Transportation Authority, in support.
- Steven Wallauch
Person
Good afternoon. Steve Wallach, on behalf of the Alameda County Transportation Commission, the Alameda Contra Costa Transit District, the Golden Gate Bridge District and the California Association for Coordinated Transportation.
- Jason Gonzalez
Person
Mr. Chair. Jason Gonzalez, on behalf of Access Services, LA County's Paratransit Provider, in support. We want to thank the author for including paratransit.
- Eduardo Rubalcava
Person
Eduardo Rubalcava representing 3.2 million AARP Members. AARP in strong support of SB 71. In addition to all this, there's also the safety aspects of making.
- Tony Strickland
Legislator
We've already had the speakers, but thank you for being here. Thank you.
- Tony Strickland
Legislator
Thank you. Thank you, sir. Seeing any opposition? There's none on file, but is there any opposition in the audience? Seeing none. Members, I do see. Oh, go ahead.
- Gus Corey
Person
Thank you, Mr. Chair. Not opposition. We support and ask that you move the bill. But Gus Corey, on behalf of the Sonoma Marin Area Rail Transit District, would like to further a conversation with the Senator about possibly including tier 4 rolling stock.
- Gus Corey
Person
There's been a heavy investment by SMART into that technology which gets rid of 99% of all emissions. And so with zero emission vehicles, those are expensive, there's long lead times and there's concerns over range. And so we want to be able to be a part of the solution.
- Gus Corey
Person
Appreciate all the work that the senator's been doing on this and so look forward to continuing the conversation. Thank you.
- Tony Strickland
Legislator
Thank you. Any opposition? See none. The bill's been moved. It's supported on both sides. Okay, Senator.
- Caroline Menjivar
Legislator
Matt, I'm wondering if you had any response to our previous conversation. Senator Wiener, one of my equine parts are always a big issue for me. I represent a lot of horse riders in my district and one of the concerns they brought up to me is that sometimes these are great projects.
- Caroline Menjivar
Legislator
I'm always a fan of these projects, but in particular the bike lanes, when they're streamlined and there's no opportunity for my horse riders to bring in some concerns, it takes away the safety ness. They have to ride closer to the cars because the bike lane now has taken their horse lane.
- Caroline Menjivar
Legislator
So I'm wondering if there's again opportunity whenever these kind of projects come up, in particular the bike lanes for in my district our horse riders to talk about the safety concerns.
- Scott Wiener
Legislator
Yeah. So of course, this doesn't eliminate what public agencies still have to approve these projects and go through the, you know, whatever process they go through to approve them, to fund them. And so, you know, that. That is certainly an opportunity, a large project, then in addition or large, over 50 million. Then there's a public hearing requirement.
- Scott Wiener
Legislator
And this bill used to be higher than that. We've lowered that over time. And we've also. I know Mr. Robinson can speak more to this. We've reached out to LA Metro about this to see if there was a specific issue.
- Scott Wiener
Legislator
I don't think they were aware of one, but we want to make sure that if there are conversations that need to happen about a project.
- Caroline Menjivar
Legislator
And I got that, so clarifying, if any project costs over $50 million, and I have the long list, there's. The lead agency will hold public meetings and so forth. That still is in place. Yes. Okay. Thank you so much.
- Jesse Arreguin
Legislator
I want to thank Senator Wiener for bringing this bill forward to not just extend the exemption for certain transit projects, but to broaden it to include ferries. And we'll lift up the San Francisco Bay Ferry as a really great way of expanding transit access.
- Jesse Arreguin
Legislator
Paratransit, recognizing mobility, is multifaceted, and would love to be considered as a co author as this bill moves forward. And thank you for bringing this forward.
- Tony Strickland
Legislator
All right. The bill has been moved. It's been seconded. Clerk, please call the roll. Oh, I'm sorry, Senator, do you want to close?
- Tony Strickland
Legislator
That bill is 80 and it's on call. Thank you, Senator, for being here. I don't think we have any authors, but. Senator Richardson, do you want to present your bill? One of them was already passed on consent, but this. Members, we're going to be on file. Item 10 SB 703 by Senator Richardson.
- Laura Richardson
Legislator
Thank you. Well, good afternoon, Mr. Vice Chair and Members of this very important Committee, which I'm thankful to be a Member of as well. I'd like to first start off by thanking our Committee Chair, Mr. Cortese, and his staff for working with my office as we move forward on SB 703. SB 703, the Fair Trucking Accountability and Transparency Act, represents a critical step in ensuring that our state's trucking industry operates in a fair and legal and transparent manner.
- Laura Richardson
Legislator
There is an organization called PierPASS.org and they share analysis which shows that nearly half of the trucks in the San Pedro complex, which includes Los Angeles and Long Beach, which happens to be the largest in the Western Hemisphere, over half of the trucks make approximately four truck trips per day and over two thirds of the trucks make three trips per day.
- Laura Richardson
Legislator
This is important because by non-classifying workers or truckers as independent contractors, it can impact the quality, meaning the safety, that we see as these trucks are making significant trips and moving cargo throughout the day. Studies have shown that while 82% of port truck drivers are labeled as independent contractors, more than 80% of those are actually misclassified employees. A classification of an independent contractor can have significant impacts. I wrote some last minute notes here, so I got to move it a little closer.
- Laura Richardson
Legislator
Some of the impacts can be that they remove basic protections. It can also cause the actual truckers to incur some operational costs that typically would not be incurred by them. The Legislature has established important accountability measures over the years. However, enforcement remains a challenge due to a critical lack of data.
- Laura Richardson
Legislator
Ports collect some information on trucking companies assessing their facilities, accessing, excuse me, their facilities, but they do not collect specific data needed to determine whether a trucking company relies upon employee drivers or misclassified independent contractors. This gap in data collection leaves both our truckers and responsible businesses very vulnerable.
- Laura Richardson
Legislator
The lack of data also hinders the ability of cargo owners, including major retailers, to ensure that they are unknowingly supporting labor violations as they may make contracts that are ultimately subbed out and it's unknown to the originating party. SB 703 addresses this problem by requiring ports to collect and report key information that will enable regulators to identify non-compliant truckers and to hold them accountable while ensuring that businesses play by the rules and are not unfairly disadvantaged.
- Laura Richardson
Legislator
Misclassification does not only just harm a potential trucker, but in this case, it can have economic and environmental consequences as well. When trucking companies fail to comply with laws, it deprives the state of revenue needed to support essential services. Moreover, misclassified drivers often struggle to afford cleaner, more sustainable vehicles, which undermines the California climate goals.
- Laura Richardson
Legislator
Today I'm committed to making the following amendments that were submitted by the Committee to ensure that SB 703 help to remedy some of the concerns presented by those with this measure. Five of those items are as follows. One, eliminate the provisions that would mandate denial of entry to our ports.
- Laura Richardson
Legislator
Two, eliminate requirement that a non-employee driver use their own standard carrier alpha code. Number three, eliminate mandates related to markings of commercial motor vehicles. Number four, clarify that the bill only applies to the major ports of Los Angeles, Long Beach, and Oakland.
- Laura Richardson
Legislator
And number five, clarify that the ports, that the ports are responsible for collecting the driver and trucking company information. With that, I am also deeply committed to working with all stakeholders to ensure that SB 703 produces the best policy for cargo owners, port terminals, truckers, and the community, which must share the roads as well.
- Laura Richardson
Legislator
I happen to live in the San Pedro area, and I am traveling on those roads, and it's a serious thing when you see truckers that may not be adhering to all of the rules that are in place to make it safe for everyone. Here with me today to speak on the importance of SB 703 is the co-sponsor, Shane Gusman on behalf of the California Teamsters Public Affairs Council, as well as Elmer Lizardi with the California Labor Federation.
- Shane Gusman
Person
Sorry about that. Mr. Chairman, Members of the Committee, Shane Gusman on behalf of the California Teamsters Public Affairs Council. Happy to sponsor this bill and very thankful for the Committee, the Committee Chair, Committee staff for working with us and I think pointing out some very important issues that we are working on in the bill.
- Shane Gusman
Person
And part of that is the amendments that were that were referenced by the author. Exploitive labor practices have been a problem in our ports for decades. For almost as long, this Legislature has acknowledged that and has enacted legislation, multiple, multiple bills to try to address the problem because it's a huge problem for drivers who are wrongfully called independent contractors when, by any legal standard, they're employees.
- Shane Gusman
Person
And in those instances, all of the cost of doing business for yourself is foisted upon the driver and all the benefits are gained by the trucking company. We have sponsored a number of bills that have gone directly at this issue. Providing a bad actors list at the ports, creating joint liability laws.
- Shane Gusman
Person
All of those are great laws, but if you can't enforce them, they don't do any good. And the missing piece of it is information. As the Senator stated, there are thousands and thousands of trucks entering our largest ports every day, some of them multiple times. It's very difficult to tell who's operating legally and who's not.
- Shane Gusman
Person
And we don't want to waste resources, government resources, to do a shotgun approach to enforcement. We should have targeted enforcement. And the way to do that is to have information on who the trucking companies are, who's working for who. Not a, not a great deal of complex information. It's pretty basic information specified in the bill.
- Shane Gusman
Person
With that, I think the drivers obviously who are being exploited are benefited, but also the companies that are doing the right thing, but they're competing, they're competing on an unfair playing field right now. If we can level that playing field, those trucking companies can compete more fairly. The retailers, which are on the hook, they're jointly liable for these violations.
- Shane Gusman
Person
They may not know it now, but the law that was passed last year make them jointly liable. So this benefits them, benefits the environment. And lastly, we will continue to work with all the stakeholders. I think the amendments address all of the issues raised in the opponent's letter. But we are always open to continue working with the Committee and all the stakeholders. And with that, we heard your aye vote.
- Elmer Lizardi
Person
Thank you. Good afternoon, Chair and Members. Elmer Lizardi here on behalf of the California Federation of Labor Unions. We're proud to support SB 703, which will help protect workers from this endemic misclassification in the trucking industry. As we've seen, the trucking industry has increasingly moved to a reliance on drivers that are misclassified as independent contractors. And this is especially true in the port trucking industry. And even though state and federal courts have resoundingly found drivers to be employees, including in almost 450 Labor Commissioner decisions, for over $57 million in unpaid wages and damages.
- Elmer Lizardi
Person
And in addition to this wage theft, worker misclassification burdens drivers by leaving them without a safety net, by exempting them from workplace safety protections and workers compensation, paid sick days and overtime, and also reimbursement for their equipment and gas, as the Senator so mentioned. These companies often force misclassified drivers to shoulder the company business costs and also lease and maintain these big rig trucks, an obligation that is very nearly impossible for low wage drivers to afford.
- Elmer Lizardi
Person
And this is often leaving drivers so indebted to the boss that they actually owe more in truck and operating costs at the end of the week than they have earned in wages, even though they're working full time or often more than full time. As we've mentioned, misclassification creates this unfair competition for businesses who actually follow the law.
- Elmer Lizardi
Person
And we know that California has taken significant steps to end this misclassification, but employers are getting more and more sophisticated in finding ways to avoid this compliance with layers of subcontracting and other tactics. So this simple measure of ensuring ports collect this specific information on trucking companies that are entering these facilities will make sure that California will stop this endemic misclassification and ensure that drivers are adequately protected and compensated for their hard work.
- Tony Strickland
Legislator
Thank you. Thanks so much for being here. Anybody in the audience want to say their name in support? Any other support witnesses? Seeing none. Any opposition witnesses? Two minutes. Thank you for being here.
- Chris Shimoda
Person
Thank you, Mr. Vice Chair and Committee Members. Chris Shimoda on behalf of the California Trucking Association, respectfully opposed to SB 703. First, I'd like to thank the author and sponsors and Committee Members for meeting with us. Would like to thank Senator Richardson for her proposed amendments. They moved the bill in the right direction.
- Chris Shimoda
Person
There is a threshold question remaining about what information that port authorities can actually collect from truckers. This is based on both a permanent injunction as well as a court approved settlement involving two of the three port authorities remaining in the bill. But we look forward to reviewing the language and engaging in further discussions with both the author and sponsors and hope to get to a place where we can remove opposition. Thank you.
- Kirk Blackburn
Person
Good afternoon. Kirk Blackburn here on behalf of the Western States Trucking Association in opposition. Thank you.
- Jacob Brint
Person
Good afternoon. Jacob Brint, on behalf of the California Retailers Association, in opposition.
- Caroline Menjivar
Legislator
Senator, thank you so much for educating at least me, you know, first year in the Transportation Committee on these kind of issues on the port. Can you clarify the opposition? I read in the analysis that perhaps some ports don't have the system ready to go to start collecting that information.
- Caroline Menjivar
Legislator
Can you talk about an on ramp or how much time would a port need to get that system ready to go to collect some information?
- Laura Richardson
Legislator
My lifeline here wants to take a stab and then I will add on after he completes.
- Shane Gusman
Person
If I can figure out this button here. Yes, we met with a Port Association that represents all the ports of the state.
- Shane Gusman
Person
I think a lot of our work has been done on the larger ports and we understand that system to be one thing, but there are a lot of smaller ports that don't operate that way, don't operate on the same entrance system, et cetera.
- Shane Gusman
Person
That's why instead of trying to come up with a one size fit all. We're only doing the larger ports. Exactly. It won't affect those smaller ports that. That don't operate in this.
- Bob Archuleta
Legislator
Thank you, senator, for bringing this forward. And, and obviously we've got the amendments. That means that when they start to one end of the field go and then the other and they come on the 50 yard line.
- Bob Archuleta
Legislator
That tells me that the Teamsters and of course the California Federation of Labor of worked hard to find this common ground. And I agree with my colleague, to be able to expedite the trucks through, that's going to be a challenge.
- Bob Archuleta
Legislator
But we were able to get in and out of this building and we do these things all the time. And every time we touch that elevator, we hit the button, it's registered who we are that we're in the building. So technology is here.
- Bob Archuleta
Legislator
So using that technology to record who the bad apples are and who are not those who are complying with the law and the rules, that I think all of us want safety and accountability, and I think that's it.
- Bob Archuleta
Legislator
So I feel very confident that the Teamsters, along with the ports, are going to work together and be able to accomplish our goal to know who's in and who's out of our ports. And with that, I will move the bill to proper time.
- Tony Strickland
Legislator
The bill's been moved, Senator. I just have one. I appreciate the working with the opposition. My understanding is it will move to labor from here. I happen to be Vice Chair of Labor, so today I'm not going to be supportive of your bill because I want to dive into these amendments.
- Tony Strickland
Legislator
But I think, you know, working with the opposition. I thank you for working with the opposition. Hopefully we can get to a point where everybody supports the bill. And I thank you for, as an author, for working with opposition, try to alleviate some of the concerns.
- Laura Richardson
Legislator
And actually, I'd like to respond to the question of the senator as well. First of all, I hope at some point when things slow down a little bit, I'll invite you all to our ports where you can take a tour and see the tremendous activity. A couple things that drivers have used in the past.
- Laura Richardson
Legislator
It used to be probably about 20 years ago that anyone who entered the port had to have a TWIC card. And that TWIC card contained information of who they were, where they worked. It's actually like a government ID. More recent, we're seeing various port terminals use license plate readers.
- Laura Richardson
Legislator
There's all different types of ways that they can capture information, just like we're seeing as how we entered the building, as Senator Archuleta mentioned. So we are committed to working with the Trucker Association. They have answered every single phone call myself and my staff have made.
- Laura Richardson
Legislator
We have worked side by side with the sponsors of the bill as well. And so we just want to make sure that it's a fair and easy way to be able to capture the information so that the process may continue.
- Laura Richardson
Legislator
Because ultimately we need to make sure that the trucks are getting in and getting the cargo safely and on their way, and that the truckers themselves that are investing, as I said, I live in the community, many of them you see lining up, you know, pre 7am and are still working at 6pm and so we need to make sure the drivers as well have an opportunity to make those turns.
- Laura Richardson
Legislator
So we'll be working to address that point and any other remaining points. And it really has been, I won't say quite a pleasure, but it's been a good and fruitful experience to get us through this far and look forward to getting over the line by the time we get to labor, sir.
- Committee Secretary
Person
The motion is due pass to the Committee on Labor, Public Employment and Retirement.
- Tony Strickland
Legislator
So that has 5:2. But it's on call and we'll let the calls later when we have more members. Thank you, Senator. Thank you. Yep. Next on the list, members. Senator Ashby. File item five, SB 720. Senator Ashby, you may open.
- Angelique Ashby
Legislator
Thank you so much colleagues for having us here. This is a little breakaway from Judish for me, so don't mind if I hide in here in Transportation with you for a few minutes. Okay. I am here to present SB 720, which we call the Safer Streets Act. This bill allows cities to opt in important term there.
- Angelique Ashby
Legislator
It's not mandatory. They can opt in to a new red light camera system for high collision zones, providing a vital tool to reduce traffic fatalities. In 2021 in California, there were 4,000 people who lost their lives in traffic collisions. With more than a quarter of those deaths directly related to a red light violation.
- Angelique Ashby
Legislator
The outdated and expensive structure of our current red light camera programs have proven to be ineffective. I truly think they have zero fans. Overly punitive, overly targeted at factors far beyond traffic safety. Actually, the disdain for our current red light program is somewhat unifying of the Legislature.
- Angelique Ashby
Legislator
What I have learned while working on this bill. Currently, unlike other states, California holds drivers responsible for violations requiring photos of a person's face. Another super unpopular part of our red camera program right now. If the driver cannot be identified, the violation notice is sent to the vehicle's registered owner.
- Angelique Ashby
Legislator
This controversial facial recognition has been central to administering an archaic system that we all agree does not work. If identified, the violators are subject to a criminal penalty, which includes a fine of at least $500. And then as we all know, traffic school another $500 on top of that.
- Angelique Ashby
Legislator
And the ever popular points on your driver's insurance that drives you up for several years of higher insurance here in California. These high fees and penalties associated with the current outdated red light traffic enforcement system create a significant financial burden for families, especially low income families. SB720 tries to get at these issues.
- Angelique Ashby
Legislator
We provide an updated framework to bring California cities on par with successful programs that are happening in other parts of the country. SB720 does the following. It shifts the program from driver liability to owner liability, removing any need for facial ID programs.
- Angelique Ashby
Legislator
Think about when you drive across a toll bridge, it just takes a picture of your license plate. It doesn't care who your driver is. That doesn't matter.
- Angelique Ashby
Legislator
Changes to this violation form remove a criminal penalty and instead move us to a civil penalty, thereby easing the insurance burden because there is no longer any a point on your insurance or your driving record that drives up that cost.
- Angelique Ashby
Legislator
Limits the fine for a violation to $100, including administrative fees, a massive reduction from the current 500 assessment and no longer a need for traffic school, directs funding back towards multimodal transportation programs in the community.
- Angelique Ashby
Legislator
And those of us who have served at the local level, there's at least a couple of mayors on that dais who know how freaking hard it is to get money for bicycle lanes and other multimodal projects in your communities. This will help. It is a source of revenue to go back to the local.
- Angelique Ashby
Legislator
Local governments may choose to opt into this Safer Streets Program, but here's what they have to do. They have to develop guidelines for screening and issuing their violations. They have to develop guidelines for selecting the locations to install these systems.
- Angelique Ashby
Legislator
And that has to be based on collision analysis, meaning where are the accidents happening in your where you can put these in? And they must submit an annual report on data from the Automated Traffic Enforcement System to keep them honest in that regard. SB720 ensures that cities have the tools they need to make their streets safer.
- Angelique Ashby
Legislator
It's a critical step towards reducing traffic collisions in California, ensuring our streets are safe and reducing unnecessary and cumbersome criminal and financial burdens to Californians in all of our communities. This bill, when implemented, should do the following. It should make our communities safer. It should decriminalize traffic violations.
- Angelique Ashby
Legislator
It should reduce fines, it should reduce fees, and it should reduce insurance burdens. And most importantly, it should save lives across the Golden State. I strongly ask for your aye vote today and I do have with me a couple of support witnesses.
- Angelique Ashby
Legislator
Senator Strickland, I understand one of them is an old friend of yours from inside of this building long ago, Pastor Patricia Strong-Fargas, who's the co chair of Faith for Safe Streets and my own personal City Council Member, Lisa Kaplan from here in the City of Sacramento.
- Patricia Strong-Fargas
Person
Good afternoon. Thank you for having me. I am Pastor Patricia Strong-Fargas, pastor of Mount Salem Church in Los Angeles, California, also chair of Faith for Safer Streets, which represent many churches, temples and South Los Angeles community neighborhood councils. What really bring me here is to bring your attention today on individuals who can't speak for themselves anymore.
- Patricia Strong-Fargas
Person
Because on August 27 2023 in Los Angeles, California. A crash between an Uber vehicle and a speeding car who went straight through the red light claimed the lives of multiple victims. These victims suffered fatal injuries and were pronounced dead at the scene.
- Patricia Strong-Fargas
Person
The victims were identified as 23 year old Veronica, 27 year old Kimberly who were sisters and 23 year old Javelin. Two other victims were injured in the collision and had to be transported to area hospital for emergency medical care. But sadly, just the other day a four year old little boy suffered injuries in Leimert Park.
- Patricia Strong-Fargas
Person
That's why I'm here today to bring this to your attention. Lives that are missing from families because of red light violators. Every year thousands of people across California suffer fatal injuries in auto collisions that take place. These incidents are a result of violating the red light.
- Patricia Strong-Fargas
Person
As I visit many neighborhood council meetings and City Council meetings, I hear from the citizens requesting cameras, requesting some enforcement. Bottom line, requesting help. Help is singling out all over the State of California. We need help. I come today to support SB720, the new red light camera bill. I support SB720 for several reasons. To increase safety.
- Patricia Strong-Fargas
Person
Automatic traffic enforcement system, improve driver behavior. A study by the Insurance Institute for Highway Safety found that in large cities across the nation red light traffic system reduce fatal red light running crash rates by over 20%. We know that change and safely safety only comes when people are accountable for their actions. SB 2720 has equity.
- Patricia Strong-Fargas
Person
It will not over tax the impoverished community that I pastor in, but will produce safety. How do I know that? She just said it. Shift the program from driver liability to owner liability. Changing the violation from a criminal penalty to a civil penalty, thereby easing insurance prices for drivers.
- Patricia Strong-Fargas
Person
Also limit the fine as she has stated to $100 including administrative fee and other equity safety provision. As our great Senator has said already, we need to help save lives. That's why I'm here. We need laws to protect our citizens, either walking, cycling or motorists. I am in support of SB720. I believe this will help save lives. Please help.
- Tony Strickland
Legislator
Thank you for being here. Councilwoman, you may have two minutes.
- Lisa Kaplan
Person
Thank you Vice Chair, Fellow Senators. I want to thank Senator Ashby and the Transportation Committee for allotting me this time. My name is Lisa Kaplan. I'm a Council Member for the City of Sacramento. But for 20 years I was a school board member.
- Lisa Kaplan
Person
And for the past seven years I'm a volunteer with Jibe, which is our Walk to School Program. And I safely take about 20 kids to school every day day and over 20 years ago I was a Staff Member here for former Senator, then Assembly woman, Jenny Oropeza.
- Lisa Kaplan
Person
So I know what you do every day. As a mom, I worry about the safety of our students, walking and biking to school. I've had to train our children just because the walk sign goes on, stop, look both ways and don't walk. Because almost daily we see people run red lights.
- Lisa Kaplan
Person
Just this past year, I've had to deal with the death of two grandfathers and the serious injury of a beloved teacher at the hands of people who are not following the rules of the road. In Sacramento, sadly, between 2013 and 2022 324 people lost their lives on our Sacramento streets. 837 were severely injured.
- Lisa Kaplan
Person
Sacramento has the highest fatalities per 100,000 residents of large and mid sized cities in California. I love our cars, but people are driving too fast.
- Lisa Kaplan
Person
Several California cities, including Santa Clara, La Mesa and San Jose have adopted Vision Zero policies aiming at eliminating traffic fatalities and severe injuries by focusing on safer streets, education, safe vehicles through a multifaceted approach. But infrastructure changes and education are not enough.
- Lisa Kaplan
Person
I am doing what I can and have implemented an educational video that is going into our schools to talk about rules of the roads and how do we have our kids on these e bikes who are going too fast and how to look out for when people are running red lights.
- Lisa Kaplan
Person
But let's face it, many of our jurisdictions don't have local transportation money and I can tell you the City of Sacramento is down 100 officers. We don't have the officers to hold people accountable who are running these red lights.
- Lisa Kaplan
Person
So SB20 gives cities the ability to just have one more tool in the toolbox to make our community safer while addressing the concerns about placement of cameras, the cost of the program, the insurance impact and other spelled out by the Senators and in the analysis.
- Lisa Kaplan
Person
So I think we need to get to the result of zero deaths on our streets. So I humbly ask you to support 720 which allows automated traffic enforcement programs like speed and red light cameras to be implemented by cities who choose to. I know the City of Sacramento has written a letter of support.
- Lisa Kaplan
Person
We choose to and we want to implement this program because it allows us to just have one more tool to increase road safety by changing driver behavior. We are California, we're a little wild west. We do like to drive fast. Cars are bigger, but we do have to have people slow down.
- Lisa Kaplan
Person
I am walking and biking and I will tell you, I tell my children to ride their bike on the sidewalk because it is not safe with our cars on the road. And people running red lights when we have to cross major streets.
- Lisa Kaplan
Person
Absolutely. So again, please vote to move this forward because I as a Council Member, want to work safely with my amazing city staff to implement this program as a way to increase safety in our streets, slow drivers down and help reach the goal of zero deaths in our streets.
- Lisa Kaplan
Person
I ask that as a mom too, because I know we all want that. Thank you.
- Tony Strickland
Legislator
Thank you for being here. Other members in support, please come forward. Identification purposes.
- Debra Banks
Person
Afternoon. I'm Deborah Banks, Executive Director of Sacramento Area Bicycle Advocates, and I strongly support this. Thank you.
- Jeremiah Rohr
Person
Jeremiah Rohr, cyclist, commuter and affected by red light runners on a daily basis. I support.
- Curtis Paulins
Person
Hello, and thank you. Curtis Paulins, cyclist, commuter, five time AIDS life cycle rider and also former Sacramento Active Transportation Commissioner. And this is my personal opinion, in support.
- Ann Garrity
Person
Ann Garrity, resident of West Sacramento, active in working to create a walkable, bikeable community. I support.
- Brandon Watson
Person
Brandon Watson, cycling commuter, resident of Sacramento. I strongly support SB7. Thank you for being here. Thank you.
- Moira C. Topp
Person
Good afternoon. Moira Topp, on behalf of San Diego Mayor Todd Gloria and the full cities City of San Diego in support.
- Mark Vukovich
Person
Good afternoon. Mark Vukovich, on behalf of Streets for All. We're one of the sponsors of the bill and I'll be standing off to the side here if there's any technical questions on the bill.
- Damian Kevitt
Person
Damian Kevitt with Streets Are for Everyone, also one of the sponsors of the bill in support. And I'll stand by in case there's any technical questions.
- Tony Strickland
Legislator
Thank you. Now, as we move to opposition, we have the Chair. Chairman here. No, go ahead. Chairman's here. Thank you. Chairman.
- Dave Cortese
Legislator
All right, thank you. We'll go ahead. And do we have. Do we have opposition witnesses coming forward? I see none. Is there anyone here who wishes to express opposition? You can come forward to the microphone. At this time. I'm seeing none. We'll bring it back to the Committee. And thank you, Vice Chair, for presiding. Appreciate it. Yes, Senator.
- Bob Archuleta
Legislator
Well, Senator, you touched my heart. I just wish that we had this bill before the Christmas holiday when maybe that individual who killed my granddaughter, a drunk driver. How many red lights did he run through in his lifetime?
- Bob Archuleta
Legislator
How many red lights did he run through that day before he went through that intersection and killed my granddaughter on Christmas Eve? And we--we buried her and had ceremonies and everything during the holidays. You can imagine how it was. But we had a thousand people in the church.
- Bob Archuleta
Legislator
A thousand people came in, people like yourselves that came together from the communities in my district, and Senators and Assembly Members flew in to support my family.
- Bob Archuleta
Legislator
And I pledge that every single time there's a bill in traffic and safety, anything we could do to highlight the fact that, yes, we need to slow down, yes, we need to be more careful. Yes, we have to keep drunk drivers off the road. Yes, we have to support our police officers and firefighters.
- Bob Archuleta
Legislator
We need to do that because we are California. We lead in so many ways. Let's lead on traffic safety. Let's lead on traffic safety.
- Bob Archuleta
Legislator
So with that, I'd be honored to be a co author, and I most definitely will support the bill, and I ask that all of my colleagues listen to what we heard today, and perhaps it'll touch your heart as well. So I'll move the bill at an appropriate time.
- Jesse Arreguin
Legislator
Well, I can't top Senator Archuleta's comments, but I think that just illustrates how critical of a tool this can be to make our streets and roads safer in California. I really appreciate Senator Ashby bringing this forward.
- Jesse Arreguin
Legislator
When the prior bill was introduced and passed and signed by the Governor to create a pilot program for speed enforcement cameras, it was limited just to a few cities in California. But there are many cities in California that begged the author to be included, including mime.
- Jesse Arreguin
Legislator
And we know that our streets are just becoming more unsafe for pedestrians, for bicyclists. And so this is giving cities one more tool to hold people accountable and to make our roads safer for kids and people all ages and abilities. So I really appreciate you bringing this forward. I'm very happy to support the bill today.
- Dave Cortese
Legislator
All right, seeing no other comments or questions from the Committee. We have a motion from Senator Archuleta, so we'll go ahead and put that on the force as soon as we give the author an opportunity to close.
- Angelique Ashby
Legislator
Thank you, Mr. Chair, and thank you, Mr. Vice Chair, for overseeing that hearing. I'll be really brief.
- Angelique Ashby
Legislator
You know, we all come here every day as Senators, and we try to figure out ways that we can do things in this building that, as Senator Arreguin and Senator Archuleta have so clearly expressed ways to send a rule or a law or a tool back to our communities so that they can do more.
- Angelique Ashby
Legislator
I watched my Council Member do all kinds of community outreach for three people in her community in the last two years hit by cars. So this is a way.
- Angelique Ashby
Legislator
This is a way we can send a tool back to Los Angeles and to San Diego and to Berkeley and Oakland and Sacramento to help--to help with a really big problem. Nobody wants their loved one to be included in the stats that the three of us shared today.
- Angelique Ashby
Legislator
So much more important than that, these are the people we love. And so I appreciate very much and I urge an aye vote. Thank you.
- Committee Secretary
Person
The motion is do pass to the Committee on Judiciary. [Roll Call]
- Dave Cortese
Legislator
Okay, the bill is currently at 6-0. We'll leave the roll open for absent members. And thank you very much.
- Dave Cortese
Legislator
All right. Good afternoon, Senator Rubio. Senator is here to present SB 783. And you may proceed when ready.
- Susan Rubio
Legislator
Thank you. Mr. Chair and members of the committee, today I'm proud to present SB 783. This is an important bill that will extend a sunset to support local jobs and businesses and help government by allowing existing regulations of outdoor advertising displays to continue until January 1, 2030.
- Susan Rubio
Legislator
Outdoor advertising displays play an important role in helping our local communities attract businesses, and in particular, local communities create the tax revenue that they need to support programs. I know as a local former council member, I know how important that is to our communities. And so this is a very simple bill of extending the statute.
- Susan Rubio
Legislator
But without legislation this year to extend that statute, this will disappear January 1, 2026. And so SB 783 will extend the sunset date by an additional four years to January 1, 2030 in order to provide time, especially for those impacted and those stakeholders to continue to have these important discussions and find solutions that we could all agree on.
- Susan Rubio
Legislator
Joining me today to speak on the support of the bill is Jeff Sievers, who represents In N Out Burger, and I have Paul Gonsalvez just for technical support. If I may turn it over to my witness. Thank you.
- Dave Cortese
Legislator
Yes, welcome and please proceed. You'll have a couple of minutes.
- Jeffrey Sievers
Person
I'll make a brief. Thank you. Mr. Chair, members of the committee, I want to thank the staff and everybody who's actually met with us to understand this issue. In N Out Burger has over almost 300 stores in California. And all the signs that you see that you've driven by are all compliant.
- Jeffrey Sievers
Person
However, at the end of this year, one in the city of Glendora would become non compliant, primarily because it was actually built during that period of redevelopment agency. Redevelopment during the time was designed to help spur innovation and help grow in a lot of these cities.
- Jeffrey Sievers
Person
And during this time in 2002, Caltrans permitted the sign and we built it and it's been in operation ever since. I think the sarge just passed around a map to give you an idea exactly kind of where it is in the city of Glendora.
- Jeffrey Sievers
Person
But the sign's been been operating, it's served its purpose, it's helped generate a lot of revenue for the city. And this is one of about, we were told, 30 to 40 signs that remain in existence because of redevelopment that are not able to figure out an easy way to become compliant if this law were to go away.
- Jeffrey Sievers
Person
So the signs actually serve a pretty valuable purpose. As I said, they drive traffic to these cities and the revenue that's generated and in this case, this is the Glendorish Marketplace is your typical big marketplace where they have a lot of sales tax generated from a variety of stores.
- Jeffrey Sievers
Person
And it's critical to the city's functions for us and the other stores. They're actually in this marketplace. This area was developed, if you can see, it's quite a ways off of the freeway and this is an elevated freeway. You would never know it's there if you're driving by.
- Jeffrey Sievers
Person
But for having a sign there, and that was why Caltrans said, all right, let's put a sign there and help direct traffic so we can help these communities grow. However redevelopment went away. We were given an arbitrary amount of years in this case, which now is going to sunset at the end of this year.
- Jeffrey Sievers
Person
And we're trying to find a way to make this last in perpetuity or figure out some way to make it conforming. We've met with a lot of experts, including some of the opposition, who are some of the brightest people in the business on this. And as of yet, we haven't found a way to make this sign conforming.
- Jeffrey Sievers
Person
But we're working on it and that's why we're asking for a couple more years to figure something out to bring it into conformity and be legal. And all the other companies who are similarly situated and you'll hear from some others, we're all in that sort of same situation. So we're looking for a long term solution.
- Jeffrey Sievers
Person
We don't want to keep coming back asking to extend the sunset, but there are some uniquenesses around this and we think with a little bit more work with the committee and the staff have been very helpful as well as Caltrans, we can hopefully find a long term solution. So we appreciate your support on this today.
- Paul Gonsalves
Person
Good afternoon, Mr. Chair and members of the committee. Paul Gonsalves, on behalf of behalf of the cities of Hawaiian Gardens and Signal Hill. This is an important tool for local governments to be able to advertise and promote for the businesses within their communities and for the local government run programs that they're putting on for the community.
- Paul Gonsalves
Person
So for these reasons, we respectfully ask for your I vote and I'm happy to answer any questions if there are any.
- Dave Cortese
Legislator
All right, thank you. Are there others in the committee room who'd like to come forward and express a support position? Please do so.
- Vanessa Cajina
Person
Thank you very much. Vanessa Cajina with KP Public Affairs on behalf of the Gardens Casino here in strong support.
- Kirk Blackburn
Person
Good afternoon. Kirk Blackburn here on behalf of the City of Inglewood in support. Thank you.
- Dave Cortese
Legislator
All right. Do we have opposition witnesses? Please come forward. Welcome. You'll have a couple minutes each and I'll let you self identify.
- Amy Lerseth
Person
Members, I am Amy Lerseth. I serve as Senior Vice President of Real Estate and Public affairs for Clear Channel Outdoor. I'm here today on behalf of the California State Outdoor Advertising Association. While we have actually a very good relationship with Senator we are respectfully here in opposition of the bill.
- Amy Lerseth
Person
As you've been told, this bill proposes to extend the authorization for off premise advertising plays within the former redevelopment agency project areas. The bill would extend this to January 2030, an additional four years past where the current expiration date is. As a result, this legislation will further put California in non compliance with the federal law.
- Amy Lerseth
Person
Specifically the Federal Highway Beautification Act. I'd like to emphasize that part of our concern here is that these signs, while maybe in compliance with the extension of this bill in California, they are non compliant with federal law which could put 10% of California's federal highway funds in jeopardy.
- Amy Lerseth
Person
Which we think is a particular concern given the current administration and efforts to reduce federal costs. Prior to 2020. Pardon me, 2013, certain signs in the redevelopment areas benefited from a unique exemption under state law that allowed them to be treated as off premise even though they were on premise signs by the law.
- Amy Lerseth
Person
With the dissolution of the redevelopment agencies in 2011, this special classification lost its legal foundation. Over time legislation has continued to grant extensions to the end of 2025 and now proposes this further extension. In addition to the risk with the federal highway funds, we believe that this law gives an unfair competitive advantage.
- Amy Lerseth
Person
The Outdoor Advertising Act was established to provide uniform, fair and enforceable standards for all outdoor advertising. The members of our organization, which represent more than 90% of the legally permitted outdoor or I'm sorry off site premise signs. We go to great lengths to comply with the laws and we feel like we play by the the rules.
- Amy Lerseth
Person
We want other signs to play by the rules. Okay, by granting another extension to a limited number. It creates non compliance and an unfair market advantage. And there are an. In n Out is an exception to this but there are some of these signs that are quite literally advertising advertising space here called this phone number.
- Dave Cortese
Legislator
Keep going. I'm going to have to give them another minute each. It's the way it works called the First Amendment United States Constitution. So I'd appreciate if you'd stop and let the other witness speak at this time. Thank you
- Steve Cruz
Person
Thank you Mr. Chair, members. Steve Cruz on behalf of the California State Outdoor Advertising Association primarily here for technical support. But one point I did want to emphasize is that there was prior legislation to provide an extension of 10 years back in 2013 by Senator Hill. There was subsequent legislation to extend it further.
- Steve Cruz
Person
The last legislation to get through the legislature in this committee, in fact when it moves to this Committee, it was four years and it was reduced to two years. That is one point that we have raised with the sponsors and the author's office as a consideration as it move forward.
- Steve Cruz
Person
Because we think two years would allow the companies to work with, you know, the association and others to try to bring these signs into compliance. It just. Otherwise it's just an ever ending extension of non compliant sides that put this at risk. That and a number of these boards have been cited in federal audits.
- Steve Cruz
Person
So we hope that it's something that the author would consider as it moves forward, if it moves forward today, rather.
- Dave Cortese
Legislator
All right, thank you very much. Appreciate the testimony from everyone. Opposition and support, of course. Can we turn now to folks who are in the committee room who would like to express opposition? Please come forward. Just name, affiliation and opposition please.
- Darryl Lucien
Person
Darryl Lucien, on behalf of Bulletin Displays in opposition, but looking forward to working it out.
- Dave Cortese
Legislator
Thanks. Thank you for coming forward. Anybody else? All right, seeing none. We'll come back to the committee. Committee members. Yes, Vice Chair.
- Tony Strickland
Legislator
I want to thank the author for bringing this forward. This is a very important bill. I represent Hawaiian Gardens and I do have also issues in Huntington Beach where we're trying to do the same thing. It provides a lot of resources for our local community.
- Tony Strickland
Legislator
If you amend it down the line, I would love to co author it. But I thank you for bringing this forward and I just, I would like to move the bill when appropriate.
- Dave Cortese
Legislator
Anybody else on the Committee? All right, just a question for the author and I know the committee, this committee did not require any change to the duration of the, of the sunset. But hearing what we're hearing, are you open as you move forward to considering any modification to the sunset to the actual year at all?
- Susan Rubio
Legislator
It was not something that was under discussion. But you know, as previously stated, there's been many years already on the table. So hopefully as both sides are hearing the discussion, maybe we can come to a resolution that can be satisfactory. But conversations are never ending and I'm always open to more discussions.
- Susan Rubio
Legislator
Just with that I mean, I know I've been, you know, locally part of negotiating a lot of billboards that do help our communities. And it's important to continue that revenue source, considering how uncertain times are these days. But with that, I appreciate Mr. Strickland, of course, to be a co author and I respectfully ask for an I vote. Thank you.
- Dave Cortese
Legislator
All right, so we have a motion from Vice Chair Strickland and we'll ask for roll call vote now.
- Dave Cortese
Legislator
All right, we have seven I votes, none opposed. And we'll keep it open for the absent members. Thank you. Thank you all. Appreciate again the the testimony. Senator Jones, so you're up next. Please come forward and you're welcome to get started as soon as you get situated.
- Dave Cortese
Legislator
All right, so just to be clear on the record, this is Senate Bill 586, Senator Jones, and again, you may proceed when ready.
- Brian Jones
Legislator
Thank you, Mr. Chair and Members, with your marathon Transportation hearing today. Hopefully this will be the longest one of the year, so you can look forward to shorter ones moving forward. So thank you for your allowance and letting me move around my time here today.
- Brian Jones
Legislator
I'm here to present Senate Bill 586, which establishes a clear legal framework for registering emotos as off highway vehicles, or OHVs, in California. Currently, emotos are not explicitly recognized as electric off highway vehicles under California law, preventing them from obtaining the necessary OHV green sticker for registration.
- Brian Jones
Legislator
This bill would codify emotos as electric off highway vehicle motorcycles, remove the outdated engine number requirement, and provide a clear legal pathway for emoto riders to obtain a green sticker and legally access OHV designated areas. Without a clear registration framework, Emoto riders have no authorized place to ride on public lands, forcing them onto streets, sidewalks, and non-motorized trails, creating safety risks and enforcement challenges. The market for emotos is rapidly expanding. I was actually blown away by some of these numbers.
- Brian Jones
Legislator
With an estimated 30,000 units sold in California just in 2022, making this issue increasingly urgent. SB 586 will address this gap in the law by providing a solution that improves safety, enhances law enforcement, and directs emoto riders to appropriate areas, reducing unauthorized riding on public infrastructure.
- Brian Jones
Legislator
The bill also will support reasonable recreation by ensuring emoto riders use designated trails rather than public roads or non-motorized areas, which will help reduce conflicts with other users and enhance safety. It does not require new trail creation or regulatory overhaul, just an update to the DMV registration process.
- Brian Jones
Legislator
Finally, this bill will help mitigate environmental impact, as emotos are zero emission and quieter than traditional gas powered OHVs. With that, I would like to invite Terry McHale, who is representing our sponsor, AMA, American Motorcycle Association District 36 to provide further comments on the bill.
- Terence McHale
Person
Mr. Chairman, Terry McHale with Aaron Read & Associates representing AMA. I am officially now old enough to be called a curmudgeon because for two years I've told kids, get up, get out of the house, throw your phones away, have some anarchy, make some fun. And today I'm saying let's have some rules to it.
- Terence McHale
Person
So to all young people, I apologize. But the rules are very, very fair. And what it does, the ubiquity of these new vehicles means that we have to make sure that we handle them with responsibility. I want to thank the staff for helping us in putting together a bill that makes sense.
- Terence McHale
Person
We spoke with the Department of Motor Vehicles. We have a green sticker program that is already in place. There is no increased cost. It's good for the environment, it's good for riders, and ultimately it is much safer for our young people. Thank you very much.
- Dave Cortese
Legislator
All right, thank you for your testimony. Are there others in the Committee room who'd like to come forward? Name, affiliation, and support, please.
- James Lombardo Jr.
Person
James Lombardo on behalf of Beta California, motorcyclist rights and safety organization, in support. Thank you.
- Amy Granat
Person
Amy Granat, Managing Director of CORVA, the California Off Road Vehicle Association, and also San Diego Off Road Coalition in strong support. Thank you.
- Dave Cortese
Legislator
Thank you. Seeing no one else come forward in support, we'll move to opposition. We are not aware of any opposition witnesses. Is there anyone in the room who wishes to express an opposition position? Seeing no one come forward, we will turn to the Committee. Senator Blakespear.
- Catherine Blakespear
Legislator
Yes. Thank you. I'm planning to support this bill, and I just want to put on the record that I think this is an ever emerging problem area. So it's been very hard to find legislative fixes that seem reasonable and don't discourage bike riding around E-bikes because of course we have just a surge of youth bike riders, particularly I would say between the ages of 14 and 16 before they get their driver's license, who it's really valuable Independence for them to be able to ride to school and their soccer practice and everything else and just go around with their friends.
- Catherine Blakespear
Legislator
But they're not trained, people on E-bikes, and sometimes the E-bikes are way too powerful. So, you know, this bill is a good one. You know, we need to do a lot more work in this area in order to create safety, I think, for the kids and also on our roads as these, this technology is more and more adopted. These really powerful E-bikes that are essentially motorcycles. So I wanted to thank you for the bill and for your testimony, and I'll move the bill when appropriate.
- Bob Archuleta
Legislator
Yes. Would you describe maybe various brands of the vehicle, the emoto, and lighting and safety things on it. Just one brand over the other. I'm sure there's not just one brand, but kind of give me some idea what they look like.
- Terence McHale
Person
Yeah, there's dozens of companies that are producing them. Probably the biggest thing to notice about them, Senator, is that they don't have pedals. I mean, ostensibly they're motorcycles. These are, they're built on a bicycle frame, but they go 60, some of them 60 miles an hour.
- Terence McHale
Person
So if you're not careful, and a lot of people aren't, they're very, very dangerous. And it's important that when they recreate in these OHV areas that they follow the rules for the safety of others. But for the most part it's a pretty standardized type of bicycle looking deal with a motor on it.
- Terence McHale
Person
Some of them do. You know, some of them do. Some of them, you know, there are accoutrements that you can add to it, but for the most part they use it as a stripped down kind of vehicle to ride for fast recreation.
- Bob Archuleta
Legislator
And do we find them on the streets and highways or just in recreational areas?
- Terence McHale
Person
No, Senator Blakespear is absolutely right. I mean, I was speaking with a good friend the other day in Manhattan Beach, and he said at 3 o'clock when the schools let out, it's chaos in downtown Manhattan Beach that these kids are pouring out of schools. As Senator Jones said, 30,000 alone sold last year in California.
- Terence McHale
Person
They're extremely, extremely popular. In my area, two young fellows were doing a lemonade sale and asked if they were doing okay. And they said yeah and asked what they were going to do with the money. And they're saving for an E-bike. So an E-bike and emoto are different, that the E-bike has pedals. But it's ostensibly, Senator, it is fast paced recreation, and we need to do more in this area because I am concerned that, the more it gets used, the more we're going to see serious injuries with our young people.
- Bob Archuleta
Legislator
May I just follow up? Are the helmets required? Because you mentioned 60 miles an hour?
- Terence McHale
Person
Under this bill, helmets will be required. But presently, it's a great question. Because presently they are not.
- Catherine Blakespear
Legislator
Sorry, I just wanted to clarify because I think this is really important. I believe they have pedals. They're just inoperable. So it looks like they can pedal, but they can't. Right. So it looks like a bike. It doesn't look like a motorcycle. And I think, I mean, I wanted to clarify that because I think that's... You wouldn't. If you're not really paying attention to this or your kids aren't buying them, then you might not notice the difference. but at least that's my understanding. Do you want to respond to that?
- Terence McHale
Person
I don't want... I don't ride them myself. But it is my understanding on the emoto, Senator, that there are no pedals. Not pedals that are faux pedals that look like they don't work. On emoto, that is the delineation between an emoto and an E-bike. It is the fact that there are no pedals.
- Catherine Blakespear
Legislator
Okay. Well, I'm equally concerned about the bicycles that have pedals that are in... Are too powerful and go too fast. Yes. Okay. Thank you.
- Dave Cortese
Legislator
Thank you. Anything else from Members of the Committee? If not, we'll allow the author to close.
- Brian Jones
Legislator
You know, this is an interesting conversation. And to answer you, there's dozens of manufacturers, and every day there's new ones because this is such a evolving market right now. Traditional motorcycle manufacturers, that it's, you know, very difficult to bring a new motorcycle to market. These emotos are being developed by multiples of companies both in the United States and outside the United States.
- Brian Jones
Legislator
To Senator Blakespear's point, there's lots of opportunity in the E-bikes, emotos, any two wheeled electric device, for us to get involved because there has been some serious and legitimate concerns raised about the safety of these things on our streets.
- Brian Jones
Legislator
Just to be clear on what this bill is addressing, it's the off road use of emotos in OHV parks in California so that they can, under current law, current DMV registration, you cannot obtain a green sticker for your motorcycle emoto to be in this, in the OHV parks. That's what this bill does.
- Brian Jones
Legislator
It's interesting that we're actually using the green sticker program for this because the whole purpose of the green sticker program was to control emissions in the first place when we designed or when the green sticker and red sticker program was originally designed decades ago.
- Brian Jones
Legislator
And so now that we've come full circle, we're allowing non-emission, zero emission vehicles into the OHV parks with an OHV green sticker program. It's just kind of a curiosity of legislative process, I think, over the decades is where we started and where we've come to come to. So with that, I'd ask for your aye vote, please.
- Dave Cortese
Legislator
Thank you. Senators, a motion on the floor from Senator Archuleta. We'll go ahead and call the roll.
- Committee Secretary
Person
The motion is do pass to the Committee on Natural Resources and Water. [Roll Call]
- Dave Cortese
Legislator
All right, we're at 8 to 0, but we're going to leave the roll open. Welcome, Senator Allen. And welcome to your witnesses. You can go ahead and get started whenever you're ready.
- Benjamin Allen
Legislator
Well, thank you. Good afternoon, Mr. Chair. And a big thank you to the Chair and to the Committee for its excellent work on the bill, and I'm happy to accept the Committee's amendment. So this bill seeks to add some consumer protections for car purchasers and car leasers by codifying at least parts of the Federal Trade Commission's CARS Rule in establishing a cooling off period for used cars.
- Benjamin Allen
Legislator
As folks who know about this stuff know that the US Court of Appeals for the Fifth Circuit overturned the CARS Rule just late last year, but it was on administered grounds. And it came about because there were hundreds of thousands of complaints about unfair and deceptive sales practices that were received by the Federal Trade Commission, with car purchasing complaints consistently ranking as a top source of consumer complaint around the nation.
- Benjamin Allen
Legislator
And they found that it's common for dealers to not be transparent about the full price of the vehicle, the availability of discounts, rebates, the monthly payment, the down payment, whether it's a purchase or lease. And these tactics ultimately were causing quite a bit of harm and confusion for consumers along with harming honest car dealers because it kind of set the, really upset the balance. One of the most frequent complaints that we had was from dealers misrepresenting add on services and features that were optional.
- Benjamin Allen
Legislator
So there was a case, FTC versus North American Automobile Services where it was discovered that 83% of consumers had hundreds or thousands of dollars worth of add on changes, sorry charges, added to their contracts without their knowledge or consent.
- Benjamin Allen
Legislator
And we know that it's common practice for consumers to face some pressure to agree to purchase a vehicle when they may have been misled on several key points, including the price, the interest rate, add on services, and features. And for used cars in particular, problems with the vehicle might not be initially obvious.
- Benjamin Allen
Legislator
It's surprisingly common for consumers to feel misled about dealership affiliation with the Department of Defense or US Armed Forces to make a sale, and the potential for repossession of a service member's vehicle. So there's a veterans component to this as well. Several organizations representing service members and veterans.
- Benjamin Allen
Legislator
I've argued that their members are particularly vulnerable to scams because they're guaranteed a paycheck and they often require car transportation to get off the military base. They're in many cases young or inexperienced with these types of purchases.
- Benjamin Allen
Legislator
And you know, I know that this was a national process and there will be comments made about how this doesn't apply to California. But I also know that many Californians filed comments in favor of the FTC's rule at the national level. These were Californians who purchased cars in California.
- Benjamin Allen
Legislator
This included former auto sales personnel from California, consumers who personally experienced auto scams, and our very own Attorney General who raised California cases and California situations. Specifically, the FTC estimated that every year American consumers would save more than $3.4 billion and 72 million hours in search costs if we were to have codified the CARS Rule.
- Benjamin Allen
Legislator
So this bill as amended by Committee now seeks to codify the CARS Rule specifically by prohibiting car dealers from misrepresenting the price of the car and requiring full transparency on the full offering price and total payments. The idea being the price that you see posted online when when you go into the dealership should be the price you pay for whatever is mandatory associated with a car. Now, there are add on services. Anyone who's purchased a car in recent years knows this.
- Benjamin Allen
Legislator
There are all these add on services that you can add on if you want. But folks ought to be transparent about the fact that the add on services are optional if they truly are optional. If they're not optional, if they're mandatory, then those add ons services should be just included.
- Benjamin Allen
Legislator
The price of those add on services should be included in the original sticker price advertised for the car. And again, we're also looking to make sure that those are services that are truly beneficial for the consumer. Now, I know that's been an area of some concern. You know, let me be really clear.
- Benjamin Allen
Legislator
When I'm talking about benefit to the consumer. I'm talking about situations where you've had people who buy an EV, like an electric vehicle, who are given, who are sold an add on service for oil changes. Okay, you don't get oil changes for electric vehicles.
- Benjamin Allen
Legislator
That's an example of an add on benefit that's of no benefit to the consumer. Now, some sort of warranty or a service that you might not take advantage of, but that's available to you, for me, is a clear benefit. And if we need to get that clarified in the rules, I'm so happy to clarify that.
- Benjamin Allen
Legislator
Because you know, we all are very involved with the insurance industry, all of us regulate the insurance industry. Just because you don't utilize insurance, it doesn't mean that it's not providing a benefit to you knowing that it's out there to access if, God forbid, anything bad were to happen to you. So let me be clear about that.
- Benjamin Allen
Legislator
We also wanted to provide additional protections for members of the military, given all the concerns that were raised during the CARS rulemaking process and veterans by prohibiting dealers from misrepresenting affiliation with the US Government or the state government or local government or any agency or department affiliated with the Department of Defense.
- Benjamin Allen
Legislator
We also have worked on limiting the opportunities to return a used car. Existing law grants used car purchase the ability to return their car only if they pre-purchase the right to return it. But this requirement is a strong deterrent, and many purchasers are unable to make the additional purchase when they're buying the car.
- Benjamin Allen
Legislator
But it's standard practice for sellers to include a provision in their purchase contracts that gives the seller seven or 10 days to cancel the purchase agreement or change terms. There are some companies that I'm sure you're going to hear from today that actually offer that just out the gates as a service.
- Benjamin Allen
Legislator
So one of the issues here, of course, when we're talking about used cars is that it's sometimes very difficult just during a test drive to get a sense of exactly how the car feels. Maybe there's a problem with the car. This is not immediately obvious when you do that quick test drive.
- Benjamin Allen
Legislator
So to better balance the scale for consumers to give them some time to review the purchase agreement carefully and speak with a trusted person about the purchase and fully inspect the vehicle, the bill as amended by the Committee now creates a three day, business day cooling off period that doesn't require consumers to pre-purchase the return period and would permit dealers to charge a restocking fee.
- Benjamin Allen
Legislator
And there's some additional guardrails that we put in there. We cap the maximum value of the used car at $48,000 indexed to inflation. And we also cap the mileage that the consumer may drive prior to returning it at 400 miles. I was talking to the Chair.
- Benjamin Allen
Legislator
Nobody wants to have a situation where an expensive Corvette, you know, we had a big discussion earlier about vintage specialty vehicles. And you know, we don't want a situation where folks take a Corvette, 67 Corvette, expensive car, take it on the joyride for the for a week and go on a long drive down the PCH and bring it back.
- Benjamin Allen
Legislator
That's not what we're looking to address here. So we're keeping those situations out of this protection. So here with me today to testify in support of the bill, we have Greg Babbitt on behalf of the Auto Fraud Legal Center and also Rosemary Shahan, who's here on behalf of Consumers for Auto Reliability and Safety.
- Dave Cortese
Legislator
Before we start with the witnesses, thank you very much for a thorough presentation. And at the risk of extending that at all, you covered a lot of the amendments and of course in a blanket way you've said several times that you're taking them. I just want to cover with you more to direct the rest of the discussion.
- Dave Cortese
Legislator
We might have me toos or tweeners. I don't know what we're going to have today. But amendment one was to strike the provision in the bill related to the definition of express and informed consent. Strike provisions in the, number two, strike provision of the bill requiring express informed consent for the sale of add ons. We heard about that.
- Dave Cortese
Legislator
Align the gap waiver provision of the bill with current law. Number four, reduce the number of years dealers must retain documents pertaining to the enforcement of the bill from seven to two years. Five, clarify that an add on does not benefit the consumer and shall not solely be defined as an add on.
- Dave Cortese
Legislator
The customer, and shall not solely be defined as an add on the customer did not use. Cap vehicles eligible for the right to cancel at 48,000. We just heard about that. Plus CPI or less. Raise the allowable restocking fee at the day charge to include a $60 per day charge. Lower the allowable days.
- Dave Cortese
Legislator
Excuse me, that a customer has to return a vehicle to utilize the right to cancel from 10 to three days. We heard that. I just am distinguishing, of course, the amendments from the original bill in print. And number nine. That was eight. Number nine, lower the miles that a customer may drive the vehicle to be eligible for the right to cancel from 2,000 to 4,000 miles. Part wanted to make sure that that all sounded correct to the author.
- Dave Cortese
Legislator
You know, also in part, you know, again, to direct some of the discussion so we don't have to hear concerns about things that have already been amended per se. And then we'll talk some more from the dais when we get that opportunity. But now, thank you for patiently waiting. And we'll turn to the witnesses. You'll have a couple minutes each to present your case, and then we'll talk to the opposition.
- Gregory Babbitt
Person
Thank you, Mr. Chair and Members and Senator Allen. As Senator Allen said, my name is Greg Babbitt. I'm a partner at the Auto Fraud Legal Center. For the past 22 years, I represent victims of unscrupulous dealers, including people of all ages, all walks of life, active duty military personnel and their families. Before I was involved in private practice, I worked for the Pennsylvania Attorney General's Office and their Bureau of Consumer Protection. So I've been a consumer advocate for my entire legal career.
- Gregory Babbitt
Person
I strongly support SB 766 because it will improve protections against common auto scams that not only cost consumers thousands of dollars, but often, but all too often, ruin their credit, cost them their jobs when their vehicles break down, they can't afford to pay for expensive repairs, their car is repossessed, and they lose their only means of transportation.
- Gregory Babbitt
Person
Contrary to what the opposition claims, SB 766 would not increase litigation for several reasons. Number one, virtually every car contract in the State of California that's entered into at a car dealership has an arbitration clause. Not only an arbitration clause, but a class action waiver. So you're not going to see an additional litigation simply because of this bill. Second, frequently victims of car dealer scams may not know or have the wherewithal to find an attorney.
- Gregory Babbitt
Person
They may go back to the dealership and complain, try and get help, and then just simply give up. Third, under SB 766, car buyers will have three business days within which to return their vehicles if they have issues or problems. That, in fact, would hurt my business because those people will not become clients of mine because they'll have the opportunity to return their vehicles.
- Gregory Babbitt
Person
Frequently, I encounter clients that have issues or problems with their vehicles, immediately try to return it, are not successful, and then they come to me. A recent example of a client that I represented, William Bradley, who bought a vehicle in Placer County, is a resident of Placer County, illustrates the benefits of the three business day right to cancel or three business day cooling off period.
- Gregory Babbitt
Person
Okay. I will. Mr. Bradley bought a vehicle. Real briefly. Asked if the vehicle had any rust damage, was told no. Took it to a shop, within few days was told that not only the vehicle had rust damage, but there was paint and product that was covering the rust damage that wouldn't allow him to have noticed even if he had done a thorough inspection. So I ask you to support this bill because of that, so that people like Mr. Bradley will not have to hire people like me to represent him. And thank you for your time, and I'm happy to answer any questions that you have.
- Rosemary Shahan
Person
Mr. Chair and Members, I'm Rosemary Shahan, President of Consumers for Auto Reliability and Safety. And we applaud Senator Allen for championing SB 766, which will make buying a car in California more affordable and less risky. Under the amendments the Senator has agreed to take, SB 766 will give many used car buyers three business days to review their paperwork and get the car and inspected.
- Rosemary Shahan
Person
And this is a modest version of the existing best practices among car dealers. For years, CarMax has offered a return policy on all its cars. It used to be 30 days, now it's 10. AutoNation offers five days, Carvana offers seven. At one time, Saturn offered 30 days, including new cars.
- Rosemary Shahan
Person
And people rarely used it because they were really happy with their cars and with the deal that they got. And just five of the most common scams involving the condition of used cars, where it's helpful for people to have an actual inspection done, are odometer fraud. According to NHTSA, odometer tampering costs consumers $1.0 billion a year. And it can be difficult but not impossible to detect whether an odometer is been altered.
- Rosemary Shahan
Person
And we see cases involving salvage, flood, and rebuilt wrecked cars in California. Also recalled car roulette, where dealers are selling vehicles that have unrepaired safety recall defects that are very serious and sometimes have led tragically to people being injured or killed.
- Rosemary Shahan
Person
There's clear coding where the dealer temporarily disconnects the battery or uses a cheap device to erase the error code. So the check engine light comes on, and it's not until someone has driven the car for a while that the check engine light comes on and they realize they have a real serious problem. And then there's churning, selling vehicles that break down soon after purchase on terms that are unaffordable, then repossessing them and reselling them over and over again.
- Rosemary Shahan
Person
And Attorney General Becerra, or former Attorney General Becerra and 33 other state AGs settled with the nation's largest subprime auto lender, Santander, over their deceptive and predatory lending practices involving churning. Resulted in a high default rate of about 70%. So people were put into cars they couldn't afford that were supposed to break down. And Californians received nearly 100 million in refunds from that lawsuit.
- Dave Cortese
Legislator
We'll ask others to come forward who wish to express a support position, name, affiliation, and support, please.
- Robert Herrell
Person
Good afternoon, Mr. Chairman and Members. Robert Herrell with the Consumer Federation of California in strong support of the bill. Appreciate the work of the Committee as well.
- Becca Cramer Mowder
Person
Becca Cramer-Mowder with Kaiser Advocacy on behalf of two of the sponsors of the bill, the National Consumer Law Center and the California Low Income Consumer Coalition. And the Consumer Attorneys of California asked me to me too in support for them.
- Karen Stout
Person
Good afternoon. Karen Stout on behalf of UnidosUS. We're in support.
- Dave Cortese
Legislator
Okay, thank you. Opposition witnesses, you're welcome to come forward at this time. All right, two of you get to speak for a couple minutes each.
- Anthony Samson
Person
Great. Thank you, Chair and Members. Anthony Samson here on behalf of the California New Car Dealers Association. We very much appreciate the hard work that the Chair and the Committee have put into the analysis, into the amendments. But the premise of the proposal, and that is to graft a flawed and ambiguous federal rule onto what is already the most robust and consumer protective vehicle transaction law in the country is fundamentally problematic from our perspective. That said, no law is perfect.
- Anthony Samson
Person
And to that end, we have communicated to Senator Allen and his staff as recently as this morning that CNCDA is happy to take a look at the existing process and talk about what refinements can be made to improve the process. But the bill in print will in fact substantially increase litigation and drive by settlements and it will substantially increase the amount of time it takes to purchase or lease a vehicle at dealerships in your district and throughout the state.
- Anthony Samson
Person
We simply cannot accept those outcome when the purported problems that this bill seeks to address are already addressed under California law. Let me provide just a few examples. The proponents say that the bill will prevent dealers from misrepresenting the price of the car and require transparency about the offering price and total payments.
- Anthony Samson
Person
In front of me, I have the California Car Buyers Bill of Rights, which requires dealers to provide the consumer with a written document, also known as the pre-contract disclosure, that must contain the price of the vehicle, any additional items purchased, and their effect on monthly installment payments.
- Anthony Samson
Person
Under this law, a dealer may not add any charges to the final contract without full disclosure and the customer's consent. Next, the proponents say that the bill will require dealers to be transparent about add on products. Notably, the case to which the proponents cite for involved an out of state dealer in Illinois.
- Anthony Samson
Person
That notwithstanding here in California, the Car Buyer's Bill of Rights requires the pre-contract disclosure to include add on products such as service contracts, insurance products, theft deterrent devices, and other add on products. And the disclosure must include the cost of the monthly installment payments with and without these items.
- Anthony Samson
Person
Absolutely. In closing, if we wanted to graft the CARS Rule onto Mississippi or Alabama law, where consumer protections are not nearly as robust, then that would call for a different discussion. But doing so in California is misguided at best. And we respectfully ask a no vote so that CNCDA and Senator Allen can have discussions through this year in the fall about California's specific concerns with the process and what, if anything, can be done to improve existing law to address them.
- Scott Govenar
Person
Mr. Chair and Members, Scott Govenar on behalf of the American Financial Services Association and the California Financial Services Association. Much of this discussion is focused on the car dealers themselves and the sales process. But there is a significant impact on the financial services industry as well due to what's known as the Holder Rule. Under the Holder Rule, the entity that holds the contract assumes the liability from the seller.
- Scott Govenar
Person
So to the extent a car is financed, that contract belongs to the financier and any claim the consumer has would go against that entity. So to the extent you're creating ambiguities in the process and the disclosure process for consumers, the lender has no way to determine what actually happened in that transaction. Under current practice, we review the contracts, we see everything is in order, and we can manage that risk. The ambiguities prevent us from managing risk.
- Scott Govenar
Person
And as we all know, if we can't manage that risk, the consumer pays, rates go up. I mean, that's just the reality of how this is going to work. And if you look at the used car market in particular, those small dealers you see in the corner, they finance a car, they sell that contract immediately so they can replenish their stock.
- Scott Govenar
Person
The longer you make them wait, the less stock they can get and the fewer cars they can sell, which has an adverse impact for consumers and the economy as a whole. So, you know, going from two days to 10 days, then back to three days. We haven't actually seen the rationale for that. But again, the delay is causing us a problem because we will not touch those contracts so long as there is added liability out there. So what we are asking for, the same thing the car dealers are asking for, is we need clarity.
- Scott Govenar
Person
We need to understand what the rules of the road are, what to look for in these contracts, and to avoid a situation where you're making kind of verbal disclosures to consumers, which we can't monitor. We have no way to manage that. So for these reasons, we are asking for a no. We welcome the opportunity to have conversations about, be it the Holder Rule or ways to provide clarity. But that's what we need from this measure and it certainly isn't there today, so we are asking for a no vote.
- Tony Strickland
Legislator
Thanks for being here. Any other witnesses by identification purposes only In opposition?
- James Lombardo Jr.
Person
James Lombardo on behalf of the California Motorcycle Dealers Association in opposition. Thank you.
- Cody Boyles
Person
Cody Boyles on behalf of CarMax and Carvana in opposition. Thank you.
- Kelly Jensen
Person
Kelly Jensen on behalf of the Service Contract Industry Council, the Guaranteed Asset Protection Alliance, and the Motor Vehicle Protection Products Association.
- Robert Moutrie
Person
Robert Moutrie for the California Chamber of Commerce, opposed as a cost driver. Thank you.
- Dave Cortese
Legislator
Thank you. We'll come back to the committee now. Any questions or comments, Senator Richardson?
- Laura Richardson
Legislator
Yes, thank you, Mr. Chair. I do have a few questions specifically regarding items that were brought up regarding litigation. I'm concerned that if a dealer in fact does comply with these new requirements, many of the new requirements could be subjective, meaning a person could say, well, no, you didn't tell me or yes you did, and so on.
- Laura Richardson
Legislator
So given that, what do you expect in terms of rise of claims and what would be some of the costs associated with that?
- Laura Richardson
Legislator
Because in most cases, you know, a dealer, if they're just haggling over, you know, an issue, they may just settle out of court just to avoid a cost versus really dealing with the situation that the legislation isn't working. And then I had one other follow up question after that.
- Laura Richardson
Legislator
Yes, it is. And then I was going to ask your thoughts after they answer it.
- Anthony Samson
Person
Sure. So through the chair, let me talk really quick about that. You'd asked for just an example of where we might see increased litigation. And the Senator had raised this issue about, you know, ensuring customers can have a claim if they don't receive a quote, benefit for the add on.
- Anthony Samson
Person
Now if I appreciate that the Senator has responded to some of our concerns by saying if you never use that add on, right. Then of course you can't make such a claim. But there is no more subjective term than the word benefit.
- Anthony Samson
Person
So when a consumer purchases an add on and they go ahead and use that add on but say that they didn't benefit from gives rise to a claim, I want to also just defer to Anthony Bento, who is the chief legal officer over at CNCDA, also to respond a little bit to the arbitration issue that was raised and provide additional examples.
- Anthony Bento
Person
Thank you, Anthony. So I think there's a bit of confusion regarding arbitration. While it is true that many dealer use a version of the retail installment sales contract with the arbitration provision in it, the costs of arbitration are substantial and they're born almost entirely by the dealer. And these costs typically range to $10,000 to $20,000.
- Anthony Bento
Person
Our biggest concern with this law is frankly shakedown lawsuits. If you get a $5,000 demand letter because of a potential violation due to these ambiguities that Mr.
- Anthony Bento
Person
Samson mentioned, you have to make a financial decision at that point of whether you want to pay your own attorney to defend the claim and pay an arbitrator 10 to 20,000 dollars to defend to arbitrate the claim. And unfortunately, many times the business, for understandable economic reasons, pays the demand.
- Anthony Bento
Person
And that is our biggest concern with this law, is that these ambiguities create, will create an environment for shakedown lawsuits. And the fact that the arbitration costs are borne by the business allows a plaintiff's attorney that doesn't have, frankly uses that fact as a way for the plaintiff's attorney to weaponize the process against the dealer.
- Anthony Bento
Person
Not all plaintiff's attorneys are like this by any means, just like there are many ethical dealers out there. But unfortunately, there are plaintiffs attorneys that weaponize ambiguities and take advantage of the fact that these costs, these arbitration costs, are born by the dealer and use that to get quick claims for settlement.
- Laura Richardson
Legislator
And could you clarify what those ambiguities are that you see in this particular bill?
- Anthony Bento
Person
That could be. Mr. Samson mentioned, the products that provide no benefit. The offering price process. So one of the issues with the bill is that it requires the offering price. First of all, the offering price conflicts with current law. The Vehicle Code.
- Anthony Bento
Person
The Vehicle Code contains specifically vehicle code Section 11713 and 11713.1 have specific definitions for the advertised price of the vehicle that differs from the offering price of the vehicle.
- Anthony Bento
Person
And this bill contemplates the offering price being communicated repeatedly throughout the process in a way that, frankly, if a customer asks for an optional product or asks the salesperson an innocuous question, and the salesperson doesn't immediately again provide the offering price of the vehicle to the customer, there's a potential violation under the bill because the bill requires that repeated communication of the offering price to the consumer.
- Anthony Bento
Person
So we have, we have potential conflicts with existing law where dealers are told by the vehicle code, you must advertise the price in this manner. This bill says the offering price is this, which is different.
- Anthony Bento
Person
And it imposes a very laborious, frankly, almost robot like communication process that if the dealer or the salesperson fails to comply with that, there is a potential violation. That's a demand. That's another demand letter. And again, there's substantial exposure that could arise as a result of that.
- Laura Richardson
Legislator
So if I could summarize, if I were in a dealership, and the person says to me, the cost of the car is $52,999.
- Laura Richardson
Legislator
And then he says to me, but, oh, if you want special wheels, or if you want series XM or if you want, you know, coating on the windows or whatever, each time your, your analysis of the bill would be, each time they'd have to keep saying, but that is optional.
- Laura Richardson
Legislator
And that would change your price from $52,999 each time when the person did that, even though if they were showing what the price was for those items.
- Anthony Bento
Person
Absolutely. And as Mr. Samson mentioned, these disclosure requirements regarding the added price are already codified in the California Car Buyers Bill of Rights. They're already required to be in the pre contract disclosure requirements.
- Anthony Bento
Person
So not only are we adding these additional requirements, they're being layered on top of another form that's being provided to the consumer under current law.
- Laura Richardson
Legislator
Understood. Mr. Chairman, if you wouldn't mind allowing the author an opportunity to respond, I think in fairness.
- Benjamin Allen
Legislator
Yeah, no, I appreciate it, appreciate it. I mean, look, I've been in my friend's shoes before. It's his job to sort of come up with the worst case scenario situation from the bill. I have absolutely no interest. This bill's going to go. We're planning on meeting after this. This bill is planning on going to the judiciary next.
- Benjamin Allen
Legislator
I have no interest in promoting a bill that's going to cause the kind of situation that he just described. You know, for me, this is about just basic upfront transparency, but the kind of robotic process that you just described, which I agree could be the most safe way to avoid any possible problem.
- Benjamin Allen
Legislator
We've got to figure out a way to get you to a place where you feel comfortable that we are not creating that kind of situation with the bill moving forward. I don't want to see the kinds of ambiguities you're talking about because for me, this is not about trying to open up the door to more lawsuits.
- Benjamin Allen
Legislator
If anything, this should actually help with litigation because people are going to be a little more happy that they actually walked out of there paying the price that they thought they were going to pay, knowing that the add ons that they decided to purchase were truly what they wanted and they were optional and that they made a proactive, transparent choice to do them or not.
- Benjamin Allen
Legislator
And so this kind of laborious, repetitive process, I don't want to see that happen. I don't want to see, you know that. So from my perspective, it's about making sure we just really hash out the sorts of ambiguities you're talking about.
- Benjamin Allen
Legislator
You know, just when you talk about the ambiguities associated with the benefit, you know, again, I'm not. You clearly are concerned about the use of that word. We can maybe come up with a different word. We have to come up with a very more strict definition of the word I mentioned.
- Benjamin Allen
Legislator
Just to repeat to everyone I mentioned the example of offering you know, an oil change to an EV, which of course is not a, you know, that's not applicable. But people have been, have been sold this add on before. I'll give you one other example.
- Benjamin Allen
Legislator
You know, an extended warranty that basically just mirrors the producer's warranty, which doesn't provide any substantive additional benefit, but it's just another way to add on some extra money onto the eventual purchase.
- Benjamin Allen
Legislator
So as long as we can figure out a way together to ensure that those kinds of cases are that we're protecting consumers from those kinds of cases, then we're actually being and I hear what you're saying about the advertised price versus the, what was the other word you used? The offering price. Tell us exactly the difference between the two.
- Anthony Bento
Person
So the vehicle code, vehicle code section 11713.1 says to a dealer they need to advertise the vehicle in a specific way. That's the advertised price of the vehicle. There are linkages with the Automobile Sales Finance Act.
- Anthony Bento
Person
So, like the contract itself is drawn up in a specific way that contemplates the vehicle's advertised price. These exclude certain statutorily regulated fees and that that essentially the definition of offering price in this bill, SB 766, is different than the definition of the vehicle's advertised price in the Vehicle Code and in the Civil Code.
- Benjamin Allen
Legislator
So that's something we're going to have to figure out. I also don't think that we need to have repeated verbal mentioning of the optionality. I think once is enough. As long as it's very clear in writing where the customer's signing or initialing. As long as that's very clear about optionality, then I'm okay with that because I agree.
- Benjamin Allen
Legislator
I don't want to have a situation that goes on for hours where everyone's getting annoyed with each other and feeling dissuaded and discouraged from the process. For me, this is ultimately just about basic transparency.
- Benjamin Allen
Legislator
I've just heard too many stories, including in California, of people who walk into a show shop thinking they're buying a $30,000 car and they walk out of there having paid 38,000 and not quite understanding why and how and feeling pretty miffed about the process. So that's really all that brings me to this story.
- Benjamin Allen
Legislator
And you know, from everything you're saying, I'm not hearing anything that is in fundamental conflict with what I'm trying to achieve here with this bill.
- Bob Archuleta
Legislator
Again, thank you, senator for bringing this forward. I, I can't vote on this on the senate floor. I will tell you now unless you two get together. And I've met with, with one side. I met with you today, but there's amendments that I think you're trying to get to.
- Bob Archuleta
Legislator
But I know we need to move the bill, but in order to get you to the next level so you can, you know, revise some of this thing because I don't think you're done. And for us to say no right off the bat wouldn't be beneficial to you. Wouldn't be beneficial to you either.
- Bob Archuleta
Legislator
But if we can move it along, that's what I intend to do. But we're talking about people that are buying a piece of, of, I guess their futures, their livelihood. Who knows what it is. But it's expensive and we all know that. Before redistricting, I had the Cerritos Auto Mall, which you now have, Senator.
- Bob Archuleta
Legislator
The largest automobile dealership in the state of California, if not the country. Professional, top notch dealers. I've met with them. I've met with the Automobile Association, I've met with the, the technicians. I know everybody is trying to help the consumer, but I think there's still work to be done.
- Bob Archuleta
Legislator
And I believe wholeheartedly that the Senator will work with you in spirit to finish it. And I know you will as well. But it's not done yet. But I know we need to move it. So I will move it. But I will not on the senate floor if you don't come together.
- Jesse Arreguin
Legislator
Thank you. Well, my understanding is this bill seeks to address issues that are already covered under current law. And I know that the opposition spoke to this briefly during testimony. I'd like to hear a little bit more from the new car dealers about this. So I have a fuller understanding.
- Jesse Arreguin
Legislator
Can you give a little bit more examples about what is already covered under current law in California?
- Anthony Samson
Person
I'm going to defer to Mr. Bento, but one of one issue that I'd like to just raise on that issue of benefit. Listen, you can't sell snake oil in California. We have the Consumer Legal Remedies Act is there to prevent that very type of sale. It is an established legal standard. It is used very often indeed.
- Anthony Samson
Person
It has been used against dealers before and it can be in the future. So the idea of layering on top of that a subjective benefit standard. And I appreciate what you were saying, Senator, which maybe it's not the right word. Our position is if you, if you sell, you know, an oil change service for an EV car.
- Anthony Samson
Person
That's a, that's snake oil. That's. You can, we don't have to have a law for that. Consumer Legal Remedies act Addresses that today. And so that's that. That's our concern. With that I will defer to Mr. Bento on that.
- Anthony Bento
Person
Sure, I mentioned it briefly earlier, Senator, but the existing vehicle sales and advertising process is incredibly heavily regulated and as of these laws have evolved over decades going back to the 1950s.
- Anthony Bento
Person
In the vehicle code there are dozens of provisions that regulate the type of sticker that can be physically affixed to the vehicle, the types of price disclosures that can be on that, how the vehicles price should be advertised. There are, as Anthony mentioned, robust laws that allow consumers to sue dealers.
- Anthony Bento
Person
I assume that the example regarding damage that was provided earlier regarding damage disclosure or a failure of a dealer to disclose damage on the vehicle that was mentioned that would be actionable as a deceptive practice under the Consumer Legal Remedies Act. I assume it was prosecuted under that act.
- Anthony Bento
Person
There are specific damage disclosure requirements in the law in the Vehicle Code and Vehicle Code section, I think, 9990 has detailed damage disclosure requirements. We have model forms that we recommend that our members use that delineate these requirements and convey these requirements to consumers. There are add on disclosure requirements in the advertising process.
- Anthony Bento
Person
The sales process, as Mr. Sampson mentioned, has the pre contract disclosure requirement in it and that's part of the Automobile Sales Finance Act which requires individual itemization on both the pre contract disclosure and the sales contract contract. Deceptive claims involving military affiliation.
- Anthony Bento
Person
There's an existing Business and Professions Code section that covers these types of deceptive practices generally for all businesses. Businesses and Professions Code 17533.6 broadly prohibits businesses from making these types of misrepresentations. So we believe that California law is, is the strongest in the nation. I think it is the strongest in the nation.
- Anthony Bento
Person
We're not claiming it's perfect, but we have an existing detailed regulatory framework that the state that has evolved over many decades. And the fatal flaw from our perspective with this bill or a fundamental flaw with this bill is that it didn't. We haven't had adequate time.
- Anthony Bento
Person
We just got the amendments this morning, but we haven't had that as originally introduced. At least the bill did not adequately in any way recognize this detailed decades long regulatory scheme that has been developed in California.
- Caroline Menjivar
Legislator
Thank you so much, Mr. Chair. Senator Allen I agree with some of my colleagues, especially Senator Archuleta on some of the points. Thank you for the exception explanation on what is covered and so forth. My question, Mr. Sampson, you mentioned in your opening that it reminded me because I recently bought a truck.
- Caroline Menjivar
Legislator
And I remember I was like, wow, this is the longest process of my life. These are 500 pages I have to sign. And you alluded to something around that this is going to make our constituents be at these new car dealerships longer. What were you alluding to? What process would make it even more complicated for consumers?
- Anthony Samson
Person
Yeah. Thank you for the question. So one example is what we talked about. I appreciate the Senator's response to that, which was anytime, you know, the customer raises a question, right. About an add on, right. The dealer has to revert back to what the offering price is and remind the consumer that that add on is optional.
- Caroline Menjivar
Legislator
But the amendment did address some of the redundancy, right, if I'm not mistaken, was that addressed in one of the amendments?
- Anthony Samson
Person
So the amendments addressed the expressed informed consent piece which had indicated that his signature was not sufficient to constitute consent, to which of course we said, then how do we get consent? And we had determined that would be through audio video.
- Dave Cortese
Legislator
That's correct, but let me, I want to, I want to ask you to restate your question just so I can help.
- Caroline Menjivar
Legislator
Thank you, Mr. Chair. One of my earlier concerns were regard the redundancy and where, you know, I saw an example of the texting back and forth and how a customer could be frustrated if they're always consistently being answered with, okay, that's an item and this is your offering price.
- Dave Cortese
Legislator
And this is, let me, let me. Say, so let me read that amendment to you and then you can be the judge of that. We did our best and the committee staff did a tremendous job, obviously working through nine different amendments with the author and the author cooperated.
- Dave Cortese
Legislator
But that language would be actually the, on the paper that we have distributed here, the very first amendment strike provisions in this bill related to the definition of express informed consent.
- Dave Cortese
Legislator
So in effect it puts it back to where it is pre bill, which I don't want to, I don't want to wade into what that like, but I think we all from a consumer lived experience.
- Benjamin Allen
Legislator
Right. So all this stuff that we're talking, I mean all this worst case scenario stuff is out of the bill from my, you know, unless you want some additional clarification on that area. You know.
- Caroline Menjivar
Legislator
And it sounded like, Senator, you even agreed that some of the cases that was brought up, brought up with the opposition is no way in shape what you're looking to.
- Benjamin Allen
Legislator
Absolutely not. And I, you know, that's what we're, what we try to address with the first two amendments, you know, but if there's some additional, you know, and I also want to make sure that our witnesses have an opportunity to weigh in. If that's I'd love to hear that.
- Caroline Menjivar
Legislator
But I just, I think one final question for you then. What is the part, you know, I'm always going to be for ensuring our consumer is not giving information that can be misleading. Right. I want to make sure the transparency that they do know, they don't have to add this Iraq is not necessary.
- Caroline Menjivar
Legislator
So I agree with that part with the transparency. If you can, in a couple sentences explain what then is the sticking point here.
- Anthony Bento
Person
So there's, I mean, the bill is quite complex, obviously, and I haven't had, I got the amendments for earlier today, so I haven't had a tremendous amount of time to review them.
- Anthony Bento
Person
But although the definition of expressed in for consent has been removed, which is an improvement, the concept of offering price and all of the price disclosures related to the offering price remain to my knowledge. Again, I'm a bit at a disadvantage having not that much time to review it. But there's two separate concepts here.
- Anthony Bento
Person
One is the express informed consent, which in our view was kind of a ridiculous requirement that said that a customer to authorize an optional product needed to not just sign a document, but do something more than that that's been removed.
- Anthony Bento
Person
But all of this issue when we're talking about offering price and all of these problems that we're talking about related to offering price, to my knowledge, those remain that doesn't directly relate to the definition of express informed consent, which has been removed.
- Anthony Bento
Person
So these problems remain and we do have many, many other concerns with the bill as well.
- Dave Cortese
Legislator
Senator, I'll speak later, you know, at the appropriate time. But. Well, maybe that's, is there anyone else requesting an opportunity to speak? Let me, let me just say that again, I appreciate the author working with us. I don't think that your witnesses can answer the question. I don't want the to interpret the amendment question.
- Dave Cortese
Legislator
I was just wanting to read it back to our committee member and let her decide if that satisfies her or not. But if there's something else that you feel.
- Benjamin Allen
Legislator
Well, I just, we've had a lot of assertions made about, about the status of the law, and I think it might be good to hear from our attorney on the other side to just explain what why it was that.
- Dave Cortese
Legislator
But I want him to address a specific question that was asked. If there's, if there's something that you heard asked and you disagree with opposition, we're not going to do back and forth rebuttal here all afternoon. We still got a couple more bills to do.
- Dave Cortese
Legislator
But if there's something that you wanted to respond to, the chair didn't come back to you, or the author didn't come back to you, do that now. I just don't want, I don't want the witnesses rehashing the amendments.
- Unidentified Speaker
Person
I'm sorry, Mr. Chairman, what I'd like to address is what we're talking about. We're not talking about whether somebody's getting a bed liner, those things, often things are already put on the vehicle when the vehicle is advertised.
- Unidentified Speaker
Person
What we're talking about are items such as gap insurance, which is if the vehicle is in an accident and there's the price, the value of the vehicle is lower than what is owed on the vehicle, that's supposed to cover that.
- Unidentified Speaker
Person
As a practitioner, from a standpoint of litigating these cases, I'll see instances where somebody puts down 10, $15,000, but they're sold gap insurance that has no value to them because they put enough money down or where they buy. And these items, these are items that are not sold, they're not sold by the salesman.
- Unidentified Speaker
Person
They're when you go into the finance department to sign the paperwork and they say, do you want to buy this item? I hear from people all the time that tell me, they told me I had to buy this product. They told me that it was not optional. And the FTC did a lot of research on this.
- Unidentified Speaker
Person
They did a huge study. And people complain about these things that we're talking about here. I see service contracts where somebody buys a service contract for a used vehicle, their engine blows. The engine cost $12,000 to replace, the service contract is maxed at $3,500 or $5,000. That's a worthless product to them.
- Unidentified Speaker
Person
If you said to them, do you want to buy this product? If the engine blows, it's going to cost you $10,000, but this is only going to cover $5,000 and you're paying $2,500 for that.
- Dave Cortese
Legislator
With all due respect, you're speaking, speaking in some pretty broad generalities as to, and in language, the lex street lexicon in my estimation.
- Dave Cortese
Legislator
Look, I, I work, we work really hard with the author and we came up with some amendments and I'm, I, I, I would otherwise not be supportive of the bill at all, you know, based on my own experiences with things like that, frankly.
- Dave Cortese
Legislator
But, you know, engine blows is, is not the kind of language we're dealing with here. What does that mean? Is that $12,000 or $3,000? Those are individual fact patterns that perhaps need to be taken up in litigation, obviously between before a trier of fact. But we're not litigating here.
- Dave Cortese
Legislator
We're trying to see if we can move this bill along. And that's going to be up to this committee and individual votes and, you know, based on the bill in print as amended with these, these nine amendments. So I understand I was in your position.
- Dave Cortese
Legislator
I probably trying to be doing a closing argument at this point, but that's not how we operate the committee. That's why I specifically said if you have a question that somebody asked and you feel like there's a specific alternate response to that, you know, please speak up.
- Unidentified Speaker
Person
I appreciate the opportunity. I think what I was trying to indicate is that the items that we're talking about are sold not in an advertisement. They're sold at the end of the day when you're going to, to sign the contract. That's, that's where these items are coming in.
- Dave Cortese
Legislator
Thank you for making that distinction. Senator Allen, you'll have an opportunity to close. But let me just, I don't have many other remarks to make. I just made some of them.
- Dave Cortese
Legislator
But I just want to, to say that in the, there was some give and take here, you know, about whether there were still things that need to be addressed or not. I believe there are. I think some of that came out today.
- Dave Cortese
Legislator
I think that was very healthy and I appreciated you acknowledging some things that, you know, maybe need to be part of some additional dialogue between you and the opposition to see if you can, you can get there, I think, is the way you put it. We saw those things too, in the committee.
- Dave Cortese
Legislator
There was so far that we felt we could go in the time allotted to get ready for this hearing. And also in terms of our own jurisdiction, I think some of the issues might be, you know, issues that would be more typically dealt with over in judiciary because they're of a legal nature.
- Dave Cortese
Legislator
So we did what we could do. But we think you, you have somewhat of a, of a long haul and a heavy lift, you know, to work through, in part because you're dealing with really a broad set of issues.
- Dave Cortese
Legislator
I think if you were just going in and this is the last thing I'll say, but, you know, we all know this and I don't need to be, I don't mean this to be condescending at all because you've been here longer than I have.
- Dave Cortese
Legislator
But to, you know, you were just going into, to fix the warranty process alone and it was a warranty disclosure bill and nothing else. You know, it would probably be, you know, a much easier process for all of us to deal with.
- Dave Cortese
Legislator
There's a lot of parts in this bill which is I, I commend you for your determination to get to all those parts. But I think, I think there's, there's, there's gaps. I too, like Senator Archuleta said, would be not inclined, you know, to support the bill long term in the condition it's in.
- Dave Cortese
Legislator
But I do believe that you'll keep working in good faith. You worked in good faith with us. I believe you'll continue to do that. And that's why you got me, you know, to agree to these nine amendments and you know, and recommend that we get it out of here, you know, with an I vote today.
- Dave Cortese
Legislator
But it's really an opportunity to keep working. Right. And I do appreciate all the testimony, but you could see the debate going back and forth around issues that we're just not going to be able to decide here in the committee.
- Benjamin Allen
Legislator
Right, right. And I appreciate that. And part of the challenge here is that we've got, as has been discussed, the federal rule that takes into account examples from all over the country, but including examples from California, we had our own set of consumer protections, which of course were stronger than elsewhere in the country.
- Benjamin Allen
Legislator
So the challenge is how do we take the aspects of the CARS Rule that we want to make sure, fill in the gaps in those areas where there are gaps in state law while not creating onerous redundancies, not creating additional ambiguities that are just going to be litigation that won't benefit consumers, that will make the whole car buying process more onerous or more difficult or more frustrating in ways that don't benefit consumers.
- Benjamin Allen
Legislator
So this is the challenge here. And you know, I appreciate the, obviously it's the opponent's job to bring up all the worst case scenarios and they're doing a good job of that.
- Benjamin Allen
Legislator
And we're going to do everything we can to hone the language to make sure that none of those worst case scenarios, which is not the intent of any of us to see come to fruition get addressed and the bill gets pared down in a way that hopefully they'll feel a lot more comfortable about.
- Benjamin Allen
Legislator
So as you mentioned, it's going to judiciary next. If it gets out of this committee here today, we're planning on getting together, if not right after this hearing, I think tomorrow, I don't know next week.
- Benjamin Allen
Legislator
I don't know when the plan is, but to just see what we can do do to just get down to the meat of the concerns that have been raised.
- Benjamin Allen
Legislator
I certainly encourage members to, wherever you are on this bill today, to weigh in with us if there are particular areas of concern about ambiguities or concerns you've heard from your constituents with regards to difficult or positive experiences they've had with purchasing a car.
- Benjamin Allen
Legislator
Because at the end of the day, for me, this is just about, you know, with all of the, all the headwinds coming with the tariffs and all the rest, we want, we know everyone is going to be facing additional challenges. Their members are going to be facing challenges. Our constituents will be facing challenges and additional costs.
- Benjamin Allen
Legislator
And we just want to make sure that the car buying process is transparent and fair and that people walk out of the experience feeling good that they actually walked out of there paying what they expected to pay and if they paid for additional services, that they fully understood what they were acquiring as part of that process and that the payment process is transparent.
- Benjamin Allen
Legislator
That's my goal here. So with that, I ask for your I vote to allow this work to continue. I encourage your engagement in this process as this bill goes to judiciary and then on to appropriations before even having the chance to get into the floor.
- Benjamin Allen
Legislator
And so but I'm hopeful that we'll be able to come to some common ground over the course of the next few weeks.
- Benjamin Allen
Legislator
That will leave both our, our important car dealerships that do really important work in our communities in a good place, but also our consumers, our constituents who are out there buying cars and deserve to have a transparent and positive process.
- Dave Cortese
Legislator
All right, well, thank you for your presentation and your close with that. Do we have a motion supporting the.
- Bob Archuleta
Legislator
I think I need a motion understanding. Everyone understands that not just myself, perhaps even the chair will not vote on this on the senate floor unless we come together. And that is what I said and then I said I'll move it.
- Dave Cortese
Legislator
All right, thank you. Your motion is do pass as amended. Just to be clear on that. Thank you. And we'll ask for a roll call vote at this time.
- Committee Secretary
Person
The motion is do pass as amended to the committee on judiciary.
- Dave Cortese
Legislator
Thank you. We'll give it to you. Thank you. It's six to two. We still have some absent members, obviously. I think I'm up next with a couple bills.
- Tony Strickland
Legislator
Members we're on file item 12, SB 30, the Chairman's bill. Mr. Chair, you may open.
- Dave Cortese
Legislator
All right. Mr. Chair, you may open. Well, you're the current Chair and thank you very much for giving me the opportunity to present. I have two bills to present this afternoon then. First one is SB30. We'll go to that.
- Dave Cortese
Legislator
SB30 ensures that diesel powered locomotives and railroad equipment cannot be sold, donated or transferred by California's public agencies once they transition to cleaner engines. The devastating health impacts of diesel pollution cannot be understated. Diesel particulate matter is a mix of gases and solid materials emitted from diesel engines.
- Dave Cortese
Legislator
One of my witnesses will speak more to the health harms of the pollution, but I'd like to stress the International Agency for Research on Cancer has classified diesel emissions as carcinogenic. This is because they contain more than 40 chemicals known to cause cancer, including benzene, arsenic, formaldehyde and lead.
- Dave Cortese
Legislator
Exposure to these chemicals can lead to increased hospitalizations and premature mortality. These chemicals make diesel exhausts more damaging to human health and gasoline vehicle emissions. For example, an article from the National Institute of Health Points to 115,000 deaths caused by gasoline emissions and an even greater 122,000 deaths caused by diesel emissions in the same period.
- Dave Cortese
Legislator
These diesel related deaths can be attributed mainly to soot and smog exposure. Diesel emissions can also lead to increases in other illnesses like asthma. According to the US Environmental Protection Agency, diesel exhaust exposure can even worsen existing health conditions like heart disease and lung disease.
- Dave Cortese
Legislator
Additionally, according to the California Resources Border CARB, this particular particulate matter can travel hundreds of miles once emitted. And I think therein lies the rub. This means it can influence air quality far from the source of the pollution, including far from California.
- Dave Cortese
Legislator
And if California's diesel engines continue operating and polluting in other jurisdictions, once we transition to cleaner engines, then our work isn't done. Caltrain, in serving my district in the Bay Area, recently agreed to send its retired fleet of 90 cars and 19 diesel locomotives to Peru. That deal is done.
- Dave Cortese
Legislator
The spill doesn't impact or affect that transaction. But Caltrain argues that this transfer will lead to a reduction in emissions in Peru. But what about the diesel exhaust that will continue to be emitted by those engines in Peru? An analysis completed by the U.S. state Department projects a reduction in emissions from a new rail line in Lima.
- Dave Cortese
Legislator
But the project's not complete, so we don't know yet what that change will be. Furthermore, I can tell you from years and years of working for the electrification of Caltrain that it was advertised not just to consumers, but through multiple sales tax measures as a decommissioning effort that was intended to eliminate the GHG from those diesel engines.
- Dave Cortese
Legislator
Even if it did reduce emissions in the short term, we need to think long term. We know concretely that diesel exhaust is harmful. When jurisdictions begin to build out their rail transit infrastructure, there's an opportunity right then to start cleaner.
- Dave Cortese
Legislator
If they begin by investing in diesel locomotives and infrastructure, then any future investment in lower emission or zero emission locomotives and infrastructure will probably come much, much later, closer to the end of the useful lives of those diesel engines that were sold or donated. Caltrain's contract to begin electrification started in 2016.
- Dave Cortese
Legislator
Its August 2016 monthly progress report stated that it expected this transition to improve air quality and reduce greenhouse gas emissions. That comes directly out of the report. Though we may be improving the impacts of pollution in other regions when we make these transactions, these trains will continue to pollute air.
- Dave Cortese
Legislator
In this case in Lima, this pollution will still lead to climate change and perhaps particulate matter here in California, depending on how far globally that particular matter travels, so it will still harm Californians.
- Dave Cortese
Legislator
Promises of air quality improvements and greenhouse gas reductions can be found throughout many requests for funding for the project that I was just referring to.
- Dave Cortese
Legislator
The last measure, the last sales tax measure, measure RR from 2020 in that particular case study, which was approved by the voters for an additional sales tax for 30 years to fund electrification, was riding on a ballot question that pointed to reduced air pollution, only to have the agency turn around and sell those same polluting diesel engines for $6 million not overseas, but to South America.
- Dave Cortese
Legislator
The climate crisis is now. We need to reduce diesel emissions now. Communities around the world facing severe health and climate impacts can't wait for the eventual transition to zero emission locomotives. SB30 aims to prevent the ongoing harm caused by emissions from diesel engines once we replace them with cleaner engines.
- Dave Cortese
Legislator
It prohibits California public agencies from selling or donating these engines for continued use. The bill has the support of organizations including 350 Bay Area Action, Acterra, Climate Reality Project, Napa Climate Now, Silicon Valley Youth Climate Action and the Sierra Club.
- Dave Cortese
Legislator
With us today to testify in support we have Jakob Evans with the Sierra Club and Jonathan Cole with Climate Action California. Thank you and I'd respectfully ask for your aye vote.
- Jonathan Cole
Person
Thank you, Senator Cortese and Vice Chair Strickland and the members of the Committee. My name is Jonathan Cole. I'm with Climate Action California, a grassroots legislative advocacy group focused on climate change.
- Jonathan Cole
Person
I've also participated in climate research as a visiting scholar at Scripps Institution of Oceanography and co authored two chapters of a University of California climate textbook that included a chapter on black carbon and other climate super pollutants. Diesel engines emit carbon dioxide and they promote ozone formation, but they're also a primary source of climate warming black carbon.
- Jonathan Cole
Person
These tiny black dark particles absorb sunlight and re emit that energy, warming the Earth's surface. When they land on snow or ice, they darken the surface, accelerating the melting process. Black carbon is also a major form of harmful air pollution.
- Jonathan Cole
Person
These particles, less than 1/30 the diameter of a human hair, penetrate deep into the lungs and can cause respiratory disease, cardiovascular disease and lung cancer, as was mentioned. It's estimated that eliminating black carbon globally will prevent 600,000 to 4.9 million deaths each year.
- Jonathan Cole
Person
As the Senator stated, SB 30 prevents California's decommissioned diesel locomotive engines from continuing to pollute and cause harm outside of California. Black carbon particles only stay in the atmosphere for a few weeks, so cutting diesel emissions provides rapid benefits for both the climate and human health. California's transition to zero emission locomotives is already underway.
- Jonathan Cole
Person
As mentioned, Caltrain began electrified service last year and Metrolink will start operating hydrogen electric locomotives in San Bernardino county later this year. Older diesel locomotives are already being decommissioned. California should be a world leader in climate solutions. We should prevent older polluting diesel engines from continuing to damage global climate.
- Jonathan Cole
Person
Thank you. Global climate and human health in other regions, especially in developing countries. I strongly urge your support of SB30 to ensure that California's decommissioned locomotives stay decommissioned. Thank you for your time.
- Jakob Evans
Person
Good afternoon committee members. My name is Jakob Evans. I'm a policy strategist with Sierra Club California here in proud or strong support of SB30. Sierra Club is the largest and oldest grassroots environmental organization in the nation. And we've worked for over 130 years to protect our environment and its people.
- Jakob Evans
Person
SB30 will ensure that as California takes action to decrease air pollution, we're not passing along this pollution and its harms into other communities. Gaseous pollutants from diesel engine emissions contribute to the creation of ground level ozone which inflicts harm on our environment. The US EPA has found that ozone harms ripple through ecosystems.
- Jakob Evans
Person
Ground level ozone reduces photosynthesis in plants, increases plants susceptibility to disease and reduces the stability of ecosystems by endangering sensitive species and reducing available food for wildlife. Notably, these harms can occur in locations far from sites of diesel engines because of their their pollution travels.
- Jakob Evans
Person
A 2024 study for the National Parks Conservation Association found that California's own Sequoia and Kings Cany National Parks are the most other countries most polluted. Though we think of these parks as isolated, ozone blows to them from the San Joaquin Valley, harming the stability of our prized redwood ecosystems, making them more susceptible to disease and fire.
- Jakob Evans
Person
In addition to these harms from gaseous pollutants, diesel engines produce diesel particulate matter which is largely comprised of black carbon and and contributes to climate change.
- Jakob Evans
Person
Black carbon displaces heat from UV radiation and CARB is found that is a major factor in the accelerated melting of the Sierra Nevada snowpack, which is a contributing factor to California's declining water supply. California is a world leader in protecting our residents and environments from the harms of air pollution.
- Jakob Evans
Person
SB30 provides an opportunity to ensure that our diesel engines don't continue polluting our state, other states or other countries. Sierra Club California urges your support of SB30 to ensure that the pollution from these engines stops with us. Thank you.
- Tony Strickland
Legislator
Thanks for being here. Other witnesses in support? For identification purposes only. Seeing none. Witnesses in opposition. Two and Two. Who would like to start. Thanks for being here.
- Brendan Repicky
Person
Thank you. Afternoon everyone. Brendan Repicky on behalf of the California Transit Association, we are not currently opposed to the bill at this time, but we do have concerns and we've detailed those in a letter to you and your staff Mr. Chair.
- Brendan Repicky
Person
We absolutely share the goal of ensuring that our public transportation systems are sustainable and thank the author for his work and his leadership in this area.
- Brendan Repicky
Person
Unfortunately, we view SB30 as having major unintended consequences that will hinder our rail agencies abilities to operate and to transition to more sustainable fleets and will in fact result in fewer air quality improvements.
- Brendan Repicky
Person
Specifically relating to the case of Caltrain's transfer of decommissioned diesel train sets to Peru, both the Bay Area Air Quality Management District and the United States Department of Transportation have confirmed that this transfer will result in net air quality improvements because of the projected high ridership and resulting cars off the road.
- Brendan Repicky
Person
In addition, because California has invested significantly in higher tier locomotives, we have one of the nation's cleanest diesel fleets. When other entities, be it another state or another country, acquire our locomotives, they are effectively upgrading their fleet and enhancing their air quality because of our high standards.
- Brendan Repicky
Person
Finally, by restricting the resale and transfer of this equipment, the bill actually encourages agencies to retain and use older equipment longer than they otherwise would because they will have no way to recoup the investments they've already made in that equipment.
- Brendan Repicky
Person
We've offered several Amendments to the Senator and we hope you know that we think will align with your goals while adding some flexibility to the bill and we hope we can find a path forward. Thank you.
- Gus Corey
Person
Thank you, Mr. Chair. So Gus Corey, on behalf of the Sonoma-Marin Area Rail Transit District, not in opposition, still want to work with you Mr. Chair.
- Gus Corey
Person
There's tremendous merit to what the author is trying to attempt here and that is to create a much higher floor to get rid of these high polluting older rolling stock that should be put out of Commission in our view.
- Gus Corey
Person
How it relates to SMART is we do run a tier 4 rolling stock system and so that was the best available technology on the market. Zero emission vehicles or rolling stock. That's a newer technology. It's expensive. We have to get through our useful life requirements with our existing stock. There's concerns about range.
- Gus Corey
Person
I mean we currently operate a 48 mile system and it could be up to 70 miles if we get up to Cloverdale.
- Gus Corey
Person
So there's, you know, some concerns that we want to account for, but we want to be a part of the solution, especially if we're trying to compel mode shift, reduce greenhouse gas emissions, give people really an alternative, especially in rural areas like Sonoma Marin to get people to take transit service workers, laborers, et cetera.
- Gus Corey
Person
So very much appreciate working with you, your staff and the Committee and hopefully look forward to continuing the conversation with you. Mr. Chair.
- Tony Strickland
Legislator
Thank you. Any other witnesses in opposition? Seeing none. Members.
- Catherine Blakespear
Legislator
Thank you. Well, thank you for raising this. I also share the concerns, of course about air pollution. And I'm speaking from the perspective of being the chair of a Committee under your chairmanship which is of the low sand rail corridor. I have a Subcommitee on that.
- Catherine Blakespear
Legislator
And I do note that the passenger rail providers, as was mentioned, Metrolink, North County Transit District and the Losan corridor rode in with concerns.
- Catherine Blakespear
Legislator
And I do see that these seem very reasonable to me that this could unintentionally hinder the ability of passenger rail to transition to more sustainable fleets because they are obviously able to sell something so that they can transition and that's part of a business model that allows them to upgrade and allows all of our passenger rail to upgrade.
- Catherine Blakespear
Legislator
And also, I mean it's really important to note that in Lima, Peru, they actually are because of the number of cars that are no longer driving and the polluting nature of those cars moving mode shifting those people onto rail is an improvement in the emissions picture there. So and that was mentioned by the opposition witness.
- Catherine Blakespear
Legislator
But I think that's really important to note because we do want to encourage other countries to establish rail in places they don't have it. And of course they will then once they have established rail, will then upgrade their equipment as time goes on. So the quicker we can get polluting cars off the road, the better.
- Catherine Blakespear
Legislator
So I'm definitely planning to support this bill in your Committee, and I know you were not open to amendments in your Committee, so these things were not considered. But I just will say for the record that I think there are grades of pollution and as was mentioned, there are certain things are more polluting than others.
- Catherine Blakespear
Legislator
And so maybe we should use a little bit more of a scalpel approach to considering what would be the nomenclature that you used was the floor, which I think is a good point. So I will be supporting it.
- Catherine Blakespear
Legislator
But I do have concerns about it being an overly broad brush at the moment, and I look forward to continuing to work on it. So with that, thank you.
- Tony Strickland
Legislator
Members. Bill's been moved. Clerk, call the roll. Oh, I'm sorry, Mr. Chair, do you want to close?
- Dave Cortese
Legislator
Yeah, just a brief close. This bill, really pivots entirely on the definition of decommissioning your diesel engines, your diesel stock, and when you look at that, it says if you're decommissioning it for the purposes of replacing it.
- Dave Cortese
Legislator
I'm paraphrasing, for air quality purposes, then it's not okay to put those engines right back into play. So I'm trying to get rid of two things here.
- Dave Cortese
Legislator
The big lie, the big deception that went on for 24 years in the Bay Area where the Caltrain line said over and over and over again to voters that we're trying to get rid of these diesel trains, we're trying to decommission them, help us do that, help us go electric.
- Dave Cortese
Legislator
And then no sooner did they spend and implement and deploy the tens of millions of dollars, and I'll get that total before the next Committee.
- Dave Cortese
Legislator
They said it's worth 6 million bucks, $6 million to us to move these, to call that a deception, and go ahead and sell these trains to Peru and let people over there die of asthma and cancer and everything else that exists on the basis that the $6 million sounds pretty good right now.
- Dave Cortese
Legislator
They didn't need the $6 million. They had already started passenger service before that transaction was concluded. So we're just trying to stop that lie from happening again. We don't think it's fair to go to the voters. We're talking about public agencies here that are going to their voters and saying, this is the carrot we're dangling.
- Dave Cortese
Legislator
This is what we're promising you. This is what we're offering you. Better air quality and we want to decommission voters. People understand that as meaning scrapyard. People understand that as meaning diesel's going away. All the folks in the Bay Area, and I think at least one member of this committee may have done this with me.
- Dave Cortese
Legislator
Many, many members of regional government in the Bay Area signed a Diesel Free by 33 commitment that when we see diesel being put back into service, that our pledge, our commitment.
- Dave Cortese
Legislator
Some years ago, dozens and dozens of elected officials signed that our pledge is to fight back and push against that and do exactly what this bill is trying to hold agencies to do in the future.
- Dave Cortese
Legislator
If you want to run a ballot measure, if you want to go to the public and to your taxpayers and your fare box and say, hey, look, look, we want to go electrification, but we want to take this diesel and we want to go pollute down the street, then they need to say that if they're willing to say that and they think they can still get the support.
- Dave Cortese
Legislator
This bill still allows that. It still allows that. I don't think that would be advisable, but that's what the bill allows. Thank you very much. I respectfully ask for your aye vote.
- Committee Secretary
Person
The motion is do pass to the Committee on Environmental Quality. [Roll Call]
- Tony Strickland
Legislator
That bill has 8 to 2 and will remain on call. Members, we're going to go to file item 13, SB 545. Again authored by the Chairman. Mr. Chairman, you may open on SB545.
- Dave Cortese
Legislator
All right, thank, thank you very much. Pleased to have the opportunity to present SB 545, after a lot of work to get to this point.
- Dave Cortese
Legislator
First, Committee, SB 545 requires the Office of Land Use and Climate Innovation to conduct a study on the economic opportunities along the California High-Speed Rail Corridor, and to bring that back on, or before, January 1, 2027.
- Dave Cortese
Legislator
The Bill sets the foundation for leveraging commercial and residential development along the High-Speed Rail Corridor, to create jobs, attract businesses, and generate new revenue streams. That will help fund a lot of things, including—we hope—through voluntary assessment districts and other traditional land use tools, construction, and boost the economic opportunity for local communities.
- Dave Cortese
Legislator
California is building the nation's first 220 mile/hour fully electrified high-speed rail system, as we know, and this one's powered by 100% renewable energy. But there will be massive, massive development potential along the Corridor. Los Angeles to San Francisco alone, pushing 400 miles.
- Dave Cortese
Legislator
We believe the Corridor, which would be studied and, hopefully, established as a recommendation to the Legislature—would, would be pretty significant along both sides of the Corridor, whether you're talking about infield development, or greenfield development, through the Valley. The Project has already created 14,600 high quality jobs.
- Dave Cortese
Legislator
Some of us have gone and visited and talked to those folks. It's engaged 880 small businesses and will prevent 142 million metric tons of carbon dioxide emissions.
- Dave Cortese
Legislator
By requiring the State's Office of Land Use and Climate Innovation on, or before, January 1, 2027, to examine strategies such as Land Value Capture, development incentives, and public private partnerships along the High-Speed Rail Corridor, SB 45—545—will ensure California maximizes the economic potential of the Project.
- Dave Cortese
Legislator
When voters pass Prop 1a, that $9.9—$9.95—billion bond to provide the nation's first High-Speed Rail Project, the vision was that the State would cover about a third of the cost, that the feds would cover another third of the cost, and private investors or investment would provide the remaining third. That vision has not materialized, to perhaps make an understatement.
- Dave Cortese
Legislator
However, significantly, the private side of this, which this study will get into, has not really been addressed at all.
- Dave Cortese
Legislator
We know that, those of us who were participants, Members of this Committee last year when the high-speed rail report was made, I asked, straight up, whether or not the economic impact of the Project had been analyzed and studied and brought forward, and the answer was no. So, we're trying to do that.
- Dave Cortese
Legislator
Again, private investment and partnership analysis, let alone private investment deployment or implementation, has significantly lagged. We need to deal with that. It's time to do that, and the study will help guide the state to examine opportunities for major, again, major residential and commercial development along the Corridor.
- Dave Cortese
Legislator
Joining us today to testify, we have Gus Khouri, representing the San Joaquin Valley Regional Council. And I don't see Keith Dunn here. I thought he was going to be here. I will let the witnesses self-identify because I think I have the wrong witness notes, but I see Mr. Khouri here.
- Angela Manetti
Person
Yes. Good afternoon, Mr. Chair and Members. Angie Manetti here, in support, on behalf of Fresno Mayor, Jerry Dyer. SB 545 will likely prove what many of us already know—when a line is completed, a myriad of positive economic opportunities to cities along the route will come to fruition. Many, many years ago, Fresno's downtown was once a hub.
- Angela Manetti
Person
It was a lively center of shopping services and residents were participating in a robust economy and public transportation system. However, in recent years, prolonged construction has hindered our efforts to rejuvenate this area. Moreover, a key road linking downtown to Chinatown has been closed for over seven years, significantly impeding revitalization initiatives.
- Angela Manetti
Person
Downtown's rebirth is a core priority for the city, and for over a decade, Fresno has been planning around the nation's first high-speed rail station. SB 4—545—represents a pivotal step towards revitalizing Fresno's downtown and urban centers across our state, and if the state's high speed rail project becomes a reality, this revival will be even better and stronger. We urge your support for this Bill.
- Gus Khouri
Person
Thank you, Mr. Chair. Gus Khouri here, on behalf of the San Joaquin Valley Regional Policy Council, which represents the eight counties from San Joaquin down to Kern. The metropolitan planning organization's in strong support.
- Gus Khouri
Person
Very much appreciate what Senator Cortese is wanting to do with this Bill, and that's to get a better understanding of the return on investment with the Project. We oftentimes don't do that. We tend to look at projects in a silo.
- Gus Khouri
Person
So, looking at the domino effect of this Bill and what it's going to do to revitalize downtowns, all throughout the Valley, with station locations in Merced and Bakersfield, in Fresno, transit-oriented development, first and last mile service for public transportation.
- Gus Khouri
Person
I think folks have to, you know, remember that the San Joaquin Valley resides in a non-attainment air district. And so, in order to meet our greenhouse gas emission reduction goals, we need the train, in order to help promote that mode shift. 25% of all produce in this country comes from the San Joaquin Valley.
- Gus Khouri
Person
Truck traffic is increasing. The San Joaquin Valley is also the fastest growing region in the state. We're growing at a clip of twice the statewide average. We have 4 million residents. In two decades, we'll have almost 6 million residents living in the Valley. We have three CSUs, we have one UC there.
- Gus Khouri
Person
So, that's a little bit about, you know, why the Valley cares so much about the project. And then, not looking at high speed rail just in a silo. It's not just, you know, it's a train that's part of a state rail system. So, the connectivity projects are super important.
- Gus Khouri
Person
This is how we got the bond appropriated, and we had the cap-and-trade program as well. You have to look at connectivity projects, to Metrolink or possibly even the low sand corridor, at some point.
- Gus Khouri
Person
There's supplemental routes that we can bring to fruition, such as going down the Central Coast, Valley Link to connect Lathrop from high-speed rail and going out to BART. That's 42 miles of service that we can have to enhance and encourage mode shift through the Altamont Corridor, which is a heavily congested corridor.
- Gus Khouri
Person
So, I think that this Bill will help put a finer point on those investments—the hard decisions that you, as legislators, have to make and where our taxpayer dollars are going, where our bond dollars are going, and as far as funding goes, I mean, we're talking about a possible cap-and-trade extension.
- Gus Khouri
Person
There's other things that we could do too. We have to talk about potentially a gas tax successor source and so, allocating revenue there, to either passenger rail systems or transit. The restoration of, maybe, truck weight fees, which have been taken since 2011, which is about $1.3 billion worth of funding that we can restore back to transit.
- Gus Khouri
Person
So, for these reasons, we ask for your "Aye" vote and look forward to working with the author on this important measure. Thank you.
- James Thuerwachter
Person
Good afternoon. James Thuerwachter, with the California State Council of Laborers. On behalf of our 80,000 members statewide, we strongly support. Thank you.
- Tony Strickland
Legislator
Okay. Witnesses in opposition? None. Members. Bill's been moved. Any other Members? If not—oh, go ahead, Senator.
- Timothy Grayson
Legislator
I just wanted to thank Senator and Chair for bringing this Bill forward. The missing narrative. A lot of times we do talk about the silo of the cost and the cost of cost, but the missing narrative has been the return on investment.
- Timothy Grayson
Legislator
And this—we can debate all day long about whether you could have done it more efficiently, more effectively, less cost, whatever that is. There will be a return on investment on this. I'm looking forward to seeing what the report comes out with, and glad to support the Bill today.
- Tony Strickland
Legislator
Okay. Seeing none, I would like to comment on this. My last Bill, for those members that don't know, I served here 13 years ago. My last vote was on the high-speed rail. I believe the testimony—we talked about it back then.
- Tony Strickland
Legislator
And even back then, I said, I'll go on a limb and say this train will never be built. And when you look about return on investment, the reason why I don't believe it's ever going to be built—we're talking about a project that started out as 9.9 billion and said is going to go from San Francisco to Los Angeles.
- Tony Strickland
Legislator
As proposed to the people of California, I'm 100% confident this will not be built.
- Tony Strickland
Legislator
When we talk about return on investment, we're talking about an extra $100 billion at—now projected—to finish this project, and that keeps growing. I don't think amount of economic studies will come back with $100 billion of return on the investment. In fact, I think we can spend $100 billion much better.
- Tony Strickland
Legislator
There's a lot of things we could do. In fact, the last budget that I voted on, 13 years ago, the entire budget was $98 billion. So, you're talking about spending more than we spend for the entire budget of California, just less than 10 years ago.
- Tony Strickland
Legislator
I appreciate the Chairman, and looking at these studies, I don't, you know, but at the end of the day, my dad always taught me, if you dig a hill—hole—for yourself, the best way to get out of that hole is to stop digging. I think there's other ways we could spend $100 billion.
- Tony Strickland
Legislator
I don't think we need another study. What I think we need to do is pull the plug on this high-speed rail and look at some other projects that will actually be more efficient for the people of California and the hard working.
- Tony Strickland
Legislator
When we talk about extra gas taxes to fund this, that extra gas taxes, that falls disproportionately on hardworking California families, that are living paycheck to paycheck, that they can't make rent, and to see that those are the kinds of revenues that we're going to have to come up with, to come up with an extra $100 billion, I just think we need to stop digging and, and not move forward on a project, on a train, that was proposed, that will never be built.
- Tony Strickland
Legislator
And I would go on a limb right now and say, this train, as proposed, will never be built in the State of California.
- Tony Strickland
Legislator
Especially, when it's going to cost another $100 billion and that—that price tag is growing. So, with that, I do want the Chair to be able to close.
- Dave Cortese
Legislator
Well, thank you very much. I would certainly respect your opinion. And you know, your foresight 13 years ago. Clearly, the project is not going to be built according to those metrics you were looking at 13 years ago. The flip side of it is the project's being built right now. There's 31 active construction sites.
- Dave Cortese
Legislator
There's thousands of people employed. There's excitement in the Valley. The Mayors in the Valley, that I've talked to, are coming on in support of the Bill. We already have a support letter from the Mayor of Fresno, that is—will show up at the next Committee. I think it missed the portal in time, this time.
- Dave Cortese
Legislator
A Mayor, not of my own party, I might add, who sees the excitement of what's happening and the opportunity. And that's what happens when you start putting things into the ground. I'll be quick because I know I help to keep you all here late. So, I won't give my long speech but let me just say this.
- Dave Cortese
Legislator
I grew up in a Silicon Valley that looked like the Valley that we're talking about in the Central Valley of California. My family were orchard farmers. That's what I did until I was in my early 20s. I've seen what happens when annexations start to occur.
- Dave Cortese
Legislator
When developers come in eager to develop housing and commercial development, in those areas where land is relatively cheap and local governments are supporting their own expansion. Really exciting things happen. It really gets even more exciting when you have universities. The story of Silicon Valley from orchards to major universities connected to technology and industry, and so forth.
- Dave Cortese
Legislator
The witnesses just talked about that. I did business in those days. As I wound down my farming career in Bakersfield, I actually signed a deal for what I believe is the first professional sports team there. People were hungry for development. That was in 1989.
- Dave Cortese
Legislator
It feels to me like people have been waiting and waiting and waiting for this opportunity, for some true economic development in places like Bakersfield and Fresno and Merced. They want to have a share of what we've created in places like the Bay Area, but in their own design. And that's why I'm bringing this forward.
- Dave Cortese
Legislator
Not because it's my job to do the job, or any of our jobs, to do the job of these local officials. But I think it's our job to go out and analyze exactly what the upside is of that potential or not.
- Dave Cortese
Legislator
So, I'm going out on a limb saying that someday, in part triggered by this project, that Bakersfield and Fresno and Merced look every much as bit—every much as economic development centers and academic centers as the Silicon Valley that I came from, right now. That's going to happen. It's on its way.
- Dave Cortese
Legislator
It's too late to turn it around. It's just a question now of the State coming in and figuring out how to induce the kind of private development that paid for streets, curbs, street lights, gutters, schools, parks, and, in this case, a little bit of infrastructure for high-speed rail.
- Dave Cortese
Legislator
That's the hope we'll all know when the study comes back, and I may be standing here before you, or sitting there, saying the study is not so good. And Vice Chair, you have my word, if the study comes in not so good, I will acknowledge that to you. But I appreciate your points. I hope you appreciate mine.
- Dave Cortese
Legislator
I think the only way we're going to find out is to is to actually go out there, with appropriate kind of analysis and study, and bring it back to the Legislature. Thank you. And I respectfully ask for your "Aye" vote.
- Dave Cortese
Legislator
Thank you again Vice Chair for presiding during those last two bills and earlier as well. Again appreciate all your assistance today and very orderly proceedings that you conducted here in the Committee. Thank you. We now. I'm going to ask the assistant to go back and call the the absent Members.
- Dave Cortese
Legislator
Sergeants, do we know if Senator Seyarto is returning. Let me go ahead and close the roll on that Bill. All right, so the final vote on SB 71 12 to 0. The bill's out.
- Dave Cortese
Legislator
I'm sorry I stayed off that Bill. I said I'm not voting on the Bill at the time.
- Dave Cortese
Legislator
11-1. The bill's out. That concludes the Committee's proceedings for today. Thank you to all the Committee Members for their stamina today and to the Committee staff for preparing us for the proceedings today. Appreciate all your hard work. And if there's anyone listening who testified today or participated, we thank you as well. Adjourned.