BILL ANALYSIS Ó AB 2068 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2068 (Portantino) As Amended August 14, 2012 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |69-0 |(May 25, 2012) |SENATE: |39-0 |(August 20, | | | | | | |2012) | ----------------------------------------------------------------- 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 FN: 0004884