BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2068
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 2068 (Portantino)
          As Amended  April 9, 2012
          Majority vote 

           TRANSPORTATION      12-0        APPROPRIATIONS      16-1        
           
           ----------------------------------------------------------------- 
          |Ayes:|Bonnie Lowenthal,         |Ayes:|Fuentes, Harkey,          |
          |     |Jeffries, Achadjian,      |     |Blumenfield, Bradford,    |
          |     |Blumenfield, Bonilla,     |     |Campos, Davis, Donnelly,  |
          |     |Buchanan, Eng, Ma,        |     |Gatto, Hall, Hill, Lara,  |
          |     |Galgiani, Miller, Norby,  |     |Mitchell, Nielsen, Norby, |
          |     |Portantino                |     |Solorio, Wagner           |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Charles Calderon          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Increases fees for distinctive legislative and 
          congressional member license plates.  Specifically,  this bill  :  

          1)Increases the fee for legislative and congressional member 
            license plates from $12 to $48.  

          2)Increases the transfer fee for legislative and congressional 
            member license plates from $10 to $38.  

          3)Adds a $38 annual renewal fee for legislative and 
            congressional member license plates.  

          4)Adds a $38 fee for a duplicate legislative and congressional 
            member license plate.  

          5)Specifies that additional fees received by the Department of 
            Motor Vehicles (DMV) for special legislative and congressional 
            member license plates are to be deposited into the Motor 
            Vehicle Account.  

           EXISTING LAW  :  

          1)Requires DMV, upon registering a vehicle, to issue the owner 
            two license plates to identify the vehicle.  









                                                                  AB 2068
                                                                  Page  2


          2)Authorizes DMV to issue distinctive license plates to current 
            or former members of the California Legislature or United 
            States Congress.  

          3)Specifies that, in addition to regular fees for the original 
            registration or renewal, fees for the distinctive plates 
            include $12 for initial issuance of the special plate and $10 
            for the transfer of the plate to another vehicle.  

          4)Authorizes DMV to issue a variety of other license plates.  

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, this bill would add an insignificant amount of annual 
          revenue, likely less than $30,000, to the DMV Motor Vehicle 
          Account which supports the administrative work of the DMV and 
          the California Highway Patrol.  

           COMMENTS  :  DMV began issuing distinctive license plates for 
          legislative or congressional members in 1978.  These license 
          plates denote that the person is or was a member of the 
          California Legislature or member of the United States Congress.  
          Fees for these license plates, in addition to regular 
          registration fees, are set at $12 for the initial issuance of 
          the license plate and $10 to transfer the license plate to 
          another vehicle.  

          DMV issues a whole host of license plates, including:  

          1)Special license plates (e.g., amateur radio station, Gold Star 
            Family, Congressional Medal of Honor, press photographer, 
            horseless carriage, and Pearl Harbor survivor, among others);  


          2)Special interest license plates (e.g., environmental, 
            memorial, Arts Council, Coastal Commission, firefighters, and 
            Yosemite Foundation, among others); and,  

          3)Personalized license plates.  

          According to the DMV, direct and administrative costs for 
          legislative and congressional member license plates is $6.00 to 
          produce the plate and between $18 and $20 for related 
          administrative processing.  









                                                                  AB 2068
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          The author argues that the statutorily prescribed fees for these 
          legislative and congressional member license plates are not 
          sufficient to cover DMV's direct costs.  He has introduced this 
          bill to increase the fees for legislative or congressional 
          member license plates so that DMV's costs are fully recovered.  
          The increased fee rates prescribed in this bill mirror those set 
          forth for special interest license plates.  It is important to 
          note that, for special interest license plates, a portion of the 
          fees collected supports the particular special interest, for 
          example, the Yosemite Foundation.  

          This bill will generate monies from legislative and 
          congressional member license plates over and above DMV's direct 
          costs.  These additional funds will be directed into the Motor 
          Vehicle Account.  It is not clear what the author's intent is, 
          if any, regarding the additional revenue that would be generated 
          as this bill provides no further parameters governing the use of 
          this money.  

          Recent legislation:  AB 11 X4 (Evans), Chapter 11, Statutes of 
          2008, among other things, raised the voluntary Environmental 
          License Plate Fund (ELP) fee by $8 per plate (to $48 for new 
          plates and $38 for renewals).  That fee increase generated 
          approximately $3 million in revenues annually and was used to 
          off-set cuts in the state's resources departments.  
           

          Analysis Prepared by  :    Victoria Alvarez / TRANS. / (916) 319- 
          2093 


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