BILL ANALYSIS Ó AB 674 Page 1 Date of Hearing: April 13, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 674 (Bonilla) - As Amended: April 5, 2011 Policy Committee: TransportationVote:9-0 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill repeals the January 1, 2012 sunset on provisions that allow a county to impose additional fees on the initial and annual registration of motor vehicles and commercial vehicles within its jurisdiction, the revenue from which is used to buy mobile fingerprint identification and related equipment. Specifically, this bill repeals the sunset on provisions that impose: 1)A $1 annual surcharge on the registration of all motor vehicles. 2)An additional $2 service fee on the registration of commercial vehicles imposed quintennially. FISCAL EFFECT 1)Continued revenue, about $15 million in FY 20011-12 and $30 million annually thereafter, to the counties that participate in the fingerprint identification program and that impose the surcharge and the fee. (Motor Vehicle Account (MVA).) 2)Continued costs, perhaps $300,000 annually starting in FY 20011-12, to the DMV to continue to collect the annual surcharge and the quintennial service fee; these costs are covered by a DMV processing charge. (MVA.) 3)Continued costs, perhaps $200,000 annually starting in FY 2011-12, to the Controller to allocate fee revenue to participating counties, to audit counties' use of these funds, and to annually report to the Legislature; these costs are AB 674 Page 2 covered by a small portion of the revenue generated by the fees. 4)Minor, one-time programming costs, likely less than $50,000, to DMV (MVA). COMMENTS 1)Rationale. The author believes the 2012 sunset on the $1 annual surcharge on motor vehicle registration and the $2 quintennial service fee on commercial vehicles should be repealed to continue fee imposition and county spending authority indefinitely. The California State Sheriffs' Association and the Los Angeles County Sherriff's Department (cosponsors) argue the program has successfully funded mobile fingerprint identification technology in the participating counties and has saved the Department of Justice significant money by avoiding manual scanning of inked fingerprint cards. 2)Background. SB 720 (Lockyer) - Chapter 587, Statutes of 1997 authorized, until January 1, 2003, participating counties to impose the $1 annual surcharge to fund local law enforcement use of automated mobile and fixed-location fingerprint identification equipment (live-scan). AB 879 (Chapter 986, Statutes of 2002, Keeley) added reporting provisions and extending the initial sunset to 2006. AB 857 (Chapter 470, Statutes of 2005, Bass) extended the program until January 2012. 3)Sunset Repeal. Sunsets have always been placed on a participating county's authority to impose the annual surcharge and the quintennial service fee because county needs may someday be met or the type of technology required for quick fingerprint identification may change in a manner that requires changes in the parameters within which fee revenue can be used. While the program has been successful in funding related local law enforcement equipment needs, given that these basic circumstances have not changed it may be more appropriate to extend the sunset rather than eliminating it. 4)Support. This bill is supported by several local governments and law enforcement agencies and organizations. 5)There is no registered opposition to this bill. AB 674 Page 3 Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081