BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 674
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          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 








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            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.  









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           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081