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  




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          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.