BILL ANALYSIS �
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.