BILL ANALYSIS                                                                                                                                                                                                    






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: Ab 286
          SENATOR ALAN LOWENTHAL, CHAIRMAN               AUTHOR:  Salas
                                                         VERSION: 6/23/09
          Analysis by: Carrie Cornwell                   FISCAL:  yes
          Hearing date: June 30, 2009









          SUBJECT:

          Vehicle registration fee surcharges: vehicle theft programs

          DESCRIPTION:

          This bill extends from 2010 to 2018 the sunset date on the  
          authority of counties to impose vehicle registration surcharges  
          to fund vehicle theft prevention, investigation, and prosecution  
          programs.

          ANALYSIS:

          Existing law establishes a basic vehicle registration fee for  
          the new or renewal registration of most vehicles of $34, plus a  
          $22 surcharge for additional personnel for the California  
          Highway Patrol (CHP). Existing law also authorizes local  
          agencies to impose separate vehicle registration fee surcharges  
          in their respective jurisdictions for a variety of special  
          programs, including until January 1, 2010, $1 for a program to  
          deter, investigate, and prosecute vehicle theft.

          A county board of supervisors may by resolution impose this $1  
          surcharge on every new or renewal vehicle registration, plus an  
          extra $2 on commercial vehicles, within the county to fund a  
          program to deter, investigate, and prosecute vehicle theft.  
          Smaller counties, those with a population of less than 250,000,  
          may also use these funds to prosecute specified driving under  
          the influence and vehicular manslaughter crimes. 

          The Department of Motor Vehicles collects the surcharge and  
          remits those fees, after deducting its own administrative costs,  




          AB 286 (SALAS)                                           Page 2

                                                                       


          to the State Controller. Funds received are continuously  
          appropriated and are disbursed by the Controller to each  
          participating county based on the number of registered vehicles  
          within the county.

          Each quarter a participating county must submit to CHP a report  
          on the expenditures and activity, and by August 31st every year,  
          each county must submit a report to the State Controller that  
          describes for the fiscal year that just ended:



           Total revenues received from the surcharge by the county;
           Total expenditures by the county on eligible programs;
           A summary of vehicle theft abatement activities and other  
            programs funded by the surcharge;
           The total number of stolen vehicles recovered and their value;  

           The total number of vehicles stolen and a comparison to the  
            preceding fiscal year; and
           Any unexpended surcharge revenues received.

          The Controller may suspend collection of the fee if the local  
          agency is not reporting as required in law or is not expending  
          funds as authorized. The Controller annually reports to the  
          Legislature on this program.

           This bill  : 

          1)Extends the sunset date on the $1 vehicle registration  
            surcharge for vehicle theft prevention from January 1, 2010 to  
            January 1, 2018.

          2)Expands the information that a county must include in its  
            fiscal year end report so that it provides a detailed  
            accounting of the funds received and expended in the preceding  
            fiscal year, including expenditures made for salaries and  
            expenses, for purchases of equipment and supplies, and any  
            other expenditures made with a comment explaining those.
          
          COMMENTS:

           1.Purpose  . SB 2139 (Davis), Chapter 1670, Statutes of 1990,  
            authorized counties to impose a $1 surcharge on vehicle  
            registrations to fund vehicle theft programs. Since then, the  
            cost of these programs has far outpaced the increased number  




          AB 286 (SALAS)                                           Page 3

                                                                       


            of registered vehicles on the road.

            Forty-seven counties impose the surcharge, including Los  
            Angeles County, where in 1993, the Board of Supervisors  
            imposed a $1 fee to create a vehicle theft program called the  
            Taskforce for Regional Auto-theft Prevention (TRAP).

            TRAP is a multi-agency task force that investigates,  
            prosecutes and deters vehicle theft and fraud on a coordinated  
            and cooperative basis.  The author and sponsors report that  
            TRAP has been highly successful in combating vehicle theft and  
            fraud by focusing on organized vehicle theft rings, "chop  
            shops," international auto theft rings that steal vehicles and  
            ship them to other countries, individuals who obtain vehicles  
            by fraud, and other forms of vehicle theft.

            Los Angeles County reports that since 1993, TRAP has made over  
            7,500 arrests, recovered over 20,000 vehicles worth nearly  
            $355 million, and prosecuted over 4,000 cases of automobile  
            theft. In recent years TRAP has had to reduce the number of  
            personnel assigned to the program which has negatively  
            impacted TRAP's ability to effectively combat auto theft in  
            Los Angeles County.

            San Diego County's Regional Auto Theft Taskforce (RATT) is a  
            similar multi-jurisdictional task force that works to combat  
            car theft and is funded with the $1 surcharge there. Last year  
            RATT recovered 319 stolen vehicles worth over $3.3 million and  
            successfully prosecuted over 100 cases.

           2.Previous legislation  . Since the initial authorization of the  
            vehicle theft prevention surcharge in 1990, the Legislature  
            has extended the sunset date on the surcharge several times,  
            most recently through AB 1663 (Dutra), Chapter 514, Statutes  
            of 2004, which moved the sunset date from 2005 to 2010. 

            In 2007, the Los Angeles County Sheriff sponsored AB 878  
            (Davis), which Governor Schwarzenegger vetoed. AB 878 would  
            have allowed a county to increase the surcharge it imposes on  
            vehicle registrations within its jurisdiction from $1 to $2 to  
            fund vehicle theft prevention, investigation, and prosecution  
            programs. AB 878 would have also extended the sunset on this  
            program until 2013. According to his veto message, Governor  
            Schwarzenegger vetoed AB 878, because it did not contain a  
            provision requiring voter approval of the surcharge increase. 





          AB 286 (SALAS)                                           Page 4

                                                                       


            In response to the governor's veto of AB 878, the author last  
            year introduced AB 860 (Salas) simply to extend the sunset  
            date, but not to increase the surcharge, and thus ensure that  
            funding does not cease altogether for local vehicle theft  
            deterrence programs. This bill is identical to AB 860, which  
            passed this committee on May 13, 2008 by a 10 - 2 vote. The  
            governor vetoed AB 860, along with many others, due to the  
            historic delay in passing the 2008-2009 State Budget. He  
            issued a generic veto message for all those bills.
          
          Assembly Votes:
               Floor:    48 - 29
               Appr: 12 -  5
               Trans:      8 - 5
               L Gov:  5 -  2

          POSITIONS:  (Communicated to the Committee before noon on  
          Wednesday, 
                     June 24, 2009)

               SUPPORT:  San Diego County District Attorney's Office  
          (sponsor)
                         California State Sheriff's Association  
                         (co-sponsor)
                         Los Angeles County District Attorney's Office  
                         (co-sponsor)
                         Los Angeles County Sheriff's Department  
                         (co-sponsor)
                         San Diego County Sheriff's Department  
                         (co-sponsor)
                         AAA Northern California
                         Alameda County Sheriff
                         Amador County Sheriff
                         American Federation of State, County, and  
                         Municipal Employees (AFSCME)
                         Association for Los Angeles Deputy Sheriffs
                         Automobile Club of Southern California
                         Butte County Sheriff
                         California District Attorneys Association
                         California New Car Dealers Association
                         California State Association of Counties 
                         California State Automobile Association (AAA)
                         California State Sheriff's Association
                         Chief of Police, City of Alhambra
                         Chief of Police, City of Arcadia
                         Chief of Police, City of Azusa




          AB 286 (SALAS)                                           Page 5

                                                                       


                         Chief of Police, City of Baldwin Park
                         Chief of Police, City of Burbank
                         Chief of Police, City of Covina
                         Chief of Police, City of Culver City
                         Chief of Police, City of Downey
                         Chief of Police, City of El Monte
                         Chief of Police, City of Gardena
                         Chief of Police, City of Glendale
                         Chief of Policy, City of Hawthorne
                         Chief of Police, City of Inglewood
                         Chief of Police, City of Irwindale
                         Chief of Police, City of La Verne
                         Chief of Police, City of Long Beach
                         Chief of Police, City of Manhattan Beach
                         Chief of Police, City of Monrovia
                         Chief of Police, City of Montebello
                         Chief of Police, City of Monterey Park
                         Chief of Police, City of Pomona
                         Chief of Police, City of Redondo Beach
                         Chief of Police, City of San Fernando
                         Chief of Police, City of San Gabriel 
                         Chief of Police, City of San Marino
                         Chief of Police, City of Santa Monica
                         Chief of Police, City of Sierra Madre
                         Chief of Police, City of Signal Hill
                         Chief of Police, City of South Pasadena
                         Chief of Police, City of Torrance
                         Chief of Police, City of Vernon
                         Chief of Police, City of West Covina
                         Chief of Police, City of Whittier
                         City of Chula Vista
                         City of Sacramento
                         County of Contra Costa
                         Contra Costa County Sheriff
                         Butte County Sheriff
                         Del Norte County Sheriff
                         El Dorado County Sheriff
                         Fresno County Sheriff
                         League of California Cities
                         Lo Jack Corporation
                         Los Angeles County
                         Mariposa County Sheriff
                         National Insurance Crime Bureau
                         Sacramento County Sheriff 
                         San Diego County Sheriff
                         San Diego District Attorney




          AB 286 (SALAS)                                           Page 6

                                                                       


                         Santa Barbara County Sheriff
                         Santa Cruz County Sheriff
                         Shasta County Sheriff
                         State Association of County Auditors
                         Tuolumne County Sheriff
                         Ventura County Sheriff
                         Yolo County Sheriff

               OPPOSED:  California Taxpayers Association 
                         Howard Jarvis Tax Payers Association
                         Stop the Hidden Taxes Coalition