BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2068
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2068 (Portantino)
          As Amended  August 14, 2012
          Majority vote
           
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          |ASSEMBLY:  |69-0 |(May 25, 2012)  |SENATE: |39-0 |(August 20,    |
          |           |     |                |        |     |2012)          |
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          Original Committee Reference:   TRANS  .  

           SUMMARY  :  Increases fees for distinctive legislative and 
          congressional member license plates and directs the additional 
          revenue into the California Environmental License Plate (ELP) 
          Fund.  

           The Senate amendments:

           1)Align fees for obtaining and transferring distinctive 
            legislative and congressional member license plates with those 
            established for the ELP Program.  

          2)Direct funds collected for distinctive legislative and 
            congressional member license plates, over and above costs 
            incurred by the Department of Motor Vehicles (DMV), into the 
            ELP Fund.  

          3)Make the bill operative on January 1, 2014.  

           EXISTING LAW  :  

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

          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.  








                                                                  AB 2068
                                                                  Page  2


           AS PASSED BY THE ASSEMBLY  , this bill:

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

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

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

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

          5)Specified 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.  

           FISCAL EFFECT  :  This bill would add revenue, likely less than 
          $30,000, to the ELP Fund.  

           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).  

          3)Personalized license plates.  









                                                                  AB 2068
                                                                  Page  3

          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.  

          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.  

          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 ELP Fund.  
          Recent legislation:  AB 11 X4 (Evans), Chapter 11, Statutes of 
          2008, among other things, raised the voluntary 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.  

          Delaying the operative date until January 1, 2014, will allow 
          DMV to avoid overtime costs needed to complete billing and 
          accounting system adjustments by January 1, 2013.  
           

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