Amended in Assembly April 4, 2013

Amended in Assembly March 12, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 443

Introduced by Assembly Member Lowenthal

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(Coauthor: Assembly Member Rendon)

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February 19, 2013

An act begin delete to amend Section 12419.10 of the Government Code, and end delete to amend Sections 4764 and 4774 of, and to add Section 4767 to, the Vehicle Code, relating to vehicles.

LEGISLATIVE COUNSEL’S DIGEST

AB 443, as amended, Lowenthal. Vehicles: delinquent parking and traffic violations.

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(1) Existing law requires the Controller, to the extent feasible, to offset any amount overdue and unpaid for a fine, penalty, assessment, bail, vehicle parking penalty, or court-ordered reimbursement for court-related services, from a person or entity, against any amount owing the person or entity by a state agency on a claim for a refund from the Franchise Tax Board under the Personal Income Tax Law or the Bank and Corporation Tax Law, or from winnings in the California State Lottery. Existing law requires a request for an offset to be submitted within 3 years of the date the penalty was incurred, and prohibits a local agency, once an offset request is made, from accruing additional specified charges. Existing law requires the payment of an offset request to be conditioned as constituting full and final payment of that offset.

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This bill would delete the requirement that an offset request is required to be submitted within 3 years of the date the penalty was incurred.

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(2) Existing

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begin insert Existing end insert law generally prohibits the Department of Motor Vehicles (DMV) from registering a vehicle if the registered owner or lessee has failed to pay outstanding parking or toll evasion penalties unless the registered owner or lessee pays the penalties at the time of the application for renewal. Under existing law, the DMV is not required to continue to attempt collection of outstanding parking or toll evasion penalties if a vehicle is transferred or the registration is not renewed for 2 renewal periods and the DMV has notified each local jurisdiction that is owed penalties of that fact.

This bill would not excuse the DMV from continuing to attempt collection of outstanding parking or toll evasion penalties if the vehicle was sold to a relative, as specified, or to a revocable trust, as specified. The bill would also prohibit the department from transferring the ownership and registration of a vehicle to a relative, as specified, or to a revocable trust, as specified, if delinquent parking or toll violations have been reported to the department, unless the transferee pays the amount of the fines and penalties for those violations to the department, or provides specified documentation showing the fines and penalties have been cleared.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 12419.10 of the Government Code is
amended to read:

12419.10.  

(a) The Controller shall, to the extent feasible, offset
any amount overdue and unpaid for a fine, penalty, assessment,
bail, vehicle parking penalty, or court-ordered reimbursement for
court-related services, from a person or entity, against any amount
owing the person or entity by a state agency on a claim for a refund
from the Franchise Tax Board under the Personal Income Tax Law
or the Bank and Corporation Tax Law, from winnings in the
California State Lottery, or a cash payment of a claim for
unclaimed property held by the state. Standards and procedures
for submission of requests for offsets shall be as prescribed by the
Controller. Whenever insufficient funds are available to satisfy an
offset request, the Controller, after first applying the amounts
available to any amount due a state agency, may allocate the
balance among any other requests for offset.

(b) Once an offset request for a vehicle parking penalty is made,
a local agency may not accrue additional interest charges, collection
charges, penalties, or other charges on or after the date that the
offset request is made. Payment of an offset request for a vehicle
parking penalty shall be made on the condition that it constitutes
full and final payment of that offset.

(c) The Controller shall deduct and retain from any amount
offset in favor of a city or county an amount sufficient to reimburse
the Controller, the Franchise Tax Board, the California State
Lottery, and the Department of Motor Vehicles for their
administrative costs of processing the offset payment.

(d) Notwithstanding Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1, or any other provision of law, the
social security number of any person obtained pursuant to Section
4150, 4150.2, or 12800 of the Vehicle Code is not a public record
and shall only be provided by the Department of Motor Vehicles
to an authorized agency for the sole purpose of making an offset
pursuant to this section for any unpaid vehicle parking penalty or
any unpaid fine, penalty, assessment, or bail of which the
Department of Motor Vehicles has been notified pursuant to
subdivision (a) of Section 40509 of the Vehicle Code or Section
1803 of the Vehicle Code, responding to information requests from
the Franchise Tax Board for the purpose of tax administration, and
responding to requests for information from an agency, operating
pursuant to and carrying out the provisions of, Part A (Block Grants
to States for Temporary Assistance for Needy Families), or Part
D (Child Support and Establishment of Paternity) of Subchapter
IV of Chapter 7 of Title 42 of the United States Code. As used in
this section, “authorized agency” means the Controller, the
Franchise Tax Board, or the California Lottery Commission.

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Section 4764 of the Vehicle Code is amended to
read:

4764.  

(a) If a vehicle is transferred or the registration is not
renewed for two renewal periods and the former registered owner
or lessee of the vehicle owes a parking penalty for a notice of
delinquent parking violation filed with the department pursuant to
Section 40220, the department shall notify each jurisdiction of that
fact and is not required thereafter to attempt collection of the
undeposited parking penalty and administrative fees.

(b) This section does not apply if the transfer of a vehicle is one
described in Section 6285 of the Revenue and Taxation Code.

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Section 4767 is added to the Vehicle Code, to read:

4767.  

(a) If delinquent parking or toll violations have been
reported to the department for a vehicle for which a transfer of
ownership and registration has been requested, the department
shall not transfer ownership and registration unless the transferee
requesting the transfer pays all of the fines and penalties for those
violations to the department, or provides an original abstract or
notice of disposition from the court or designated processing
agency that the fines and penalties for those violations have been
cleared with the parking agency or the court.

(b) This section only applies if the transfer requested is one
described in Section 6285 of the Revenue and Taxation Code.

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Section 4774 of the Vehicle Code is amended to read:

4774.  

(a) If a vehicle is transferred or the registration is not
renewed for two renewal periods and the former registered owner
or lessee of the vehicle owes a toll evasion penalty for a notice of
delinquent toll evasion violation filed with the department pursuant
to Section 40267, the department shall notify each jurisdiction of
that fact and is not required thereafter to attempt collection of the
undeposited toll evasion penalty and administrative fees.

(b) This section does not apply if the transfer of a vehicle is one
described in Section 6285 of the Revenue and Taxation Code.