BILL ANALYSIS Ó SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: ab 443 SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: lowenthal VERSION: 4/4/13 Analysis by: Mark Stivers FISCAL: yes Hearing date: June 11, 2013 SUBJECT: Collection of unpaid parking and toll evasion penalties DESCRIPTION: This bill, for family transfers only, prohibits Department of Motor Vehicles (DMV) from transferring ownership on a vehicle for which a processing agency has filed an itemization of outstanding parking or toll evasion penalties until the penalties are paid. ANALYSIS: Under current law, all parking infractions are civil offenses. Local governments establish schedules of civil parking penalties (i.e., fines) and adjudicate and enforce offenses through civil administrative procedures contained in state law. If a vehicle owner does not pay a penalty, a city or county, or its contracted processing agent, may file an itemization of unpaid parking penalties and fees with DMV for collection with the renewal of the vehicle's registration. Thereafter, DMV will not renew the registration of the vehicle unless the owner pays the full amount of all outstanding parking penalties and administrative fees with the registration or obtains a clearance from the processing agent. In 2008, the Legislature enacted AB 2401 (Karnette), Chapter 741, which protected purchasers of used vehicles from being held liable for the outstanding parking citations of a previous owner by requiring DMV to renew the registration of a vehicle if the outstanding citation was issued prior to the registered owner taking possession of the vehicle. Identical provisions exist for the collection of unpaid toll evasion notices. Current law further provides that if a processing agency has filed with DMV an itemization of unpaid parking penalties or unpaid toll evasion penalties and the vehicle is transferred, or the registration is not renewed for two renewal periods, DMV AB 443 (LOWENTHAL) Page 2 must notify the processing agency of that fact and then is not required thereafter to attempt collection of the unpaid parking or toll evasion penalty. This bill , for transfers of vehicles to family members only, prohibits DMV from transferring ownership and registration on a vehicle for which a processing agency has filed an itemization of outstanding parking or toll evasion penalties, unless the transferee pays all of the penalties for those violations to DMV with the transfer or obtains a clearance from the processing agent or the court. The bill further provides that DMV must continue to attempt collection of unpaid parking or toll evasion penalties after a family transfer. COMMENTS: 1.Purpose of the bill . According to the author, this bill closes a loophole that allows a scofflaw to continue registering his or her vehicle without paying delinquent parking or toll evasion citations by transferring the vehicle's title among family members. DMV collection of delinquent citations has been very effective, but these scofflaws have found that simple, inexpensive family transfers wipe the DMV's record of outstanding citations clean. The author hopes to help cities, counties, and toll road operators to collect unpaid citations, which could pay for critical services. 2.One example of the amount of money at stake . The author states that the City of Long Beach alone has a balance of $1.6 million in unpaid parking citations that has accumulated over the last five years. 3.Technical amendments . This bill primarily provides that DMV will not process a family transfer until outstanding parking and toll evasions citations are paid. The bill further provides, however, that DMV must continue to attempt collection of unpaid parking or toll evasion penalties after a family transfer. This latter provision is illogical. Under the former provision a family transfer cannot occur until all citations are paid, and even if it could, separate provisions of law stating that a new owner is not responsible for citations of a past owner still apply. As a result, there can be no transfer if outstanding citations exist, and after a AB 443 (LOWENTHAL) Page 3 transfer there are no citations for DMV to collect. The committee may wish to delete the provisions requiring DMV to attempt collection of outstanding parking and toll evasion citations after a family transfer. Assembly Votes: Floor: 75-0 Appr: 17-0 Trans: 16-0 POSITIONS: (Communicated to the committee before noon on Wednesday, June 5, 2013.) SUPPORT: City of Long Beach (sponsor) California Public Parking Association City of La Mirada City of Sacramento League of California Cities OPPOSED: None received.