BILL ANALYSIS �
AB 767
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 767 (Levine)
As Amended June 12, 2013
Majority vote
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|ASSEMBLY: |47-25|(May 16, 2013) |SENATE: |25-12|(August 19, |
| | | | | |2013) |
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Original Committee Reference: TRANS.
SUMMARY : Authorizes counties to increase the tax on vehicle
registration for the prevention of vehicle theft crimes.
Specifically, this bill :
1)Authorizes every county to increase its motor vehicle fee from
$1 to $2, and its commercial vehicle service fee from $2 to
$4, upon adoption of a resolution by its board of supervisors,
and submission of the resolution to the Department of Motor
Vehicles (DMV).
2)Deletes the existing sunset date on the vehicle registration
surcharge authorization and makes these provisions operative
indefinitely.
The Senate amendments clarify the authority of a county to adopt
a fee of $2, if a county has not taken steps to impose a $1 fee
as currently authorized, subject to a resolution by the board of
supervisors.
EXISTING LAW :
1)Requires a vehicle registration fee of $46 to be paid for the
registration of every motor vehicle, except those expressly
exempt.
2)Authorizes a variety of additional fees that are related to
the operation of motor vehicles to be paid with the
registration, most particularly to address certain air quality
and law enforcement issues. These fees support, among other
things, service authorities for freeway emergencies,
California Highway Patrol (CHP) staffing, and fingerprint
identification programs.
AB 767
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3)Authorizes, until January 1, 2018, counties to adopt an annual
$1 vehicle registration service charge for passenger vehicles
and an annual $2 vehicle registration service charge for
commercial vehicles where that charge is used exclusively to
fund programs that enhance the capacity of local police and
prosecutors to deter, investigate, and prosecute vehicle theft
crimes.
4)Authorizes, until January 1, 2018, the Counties of Los
Angeles, San Bernardino, and San Diego, to increase the tax on
motor vehicle registration from $1 to $2, and would provide
that the service fee on commercial motor vehicles to increase
from $2 to $4, upon adoption of a resolution of its board of
supervisors. Requires the resolution to be submitted to DMV
at least six months prior to the operative date of the tax
increase.
5)Requires counties that adopt these service charges to report
the expenditures for salaries and expenses, purchase of
equipment and supplies, and any other expenditure listed by
type, with an explanatory comment. Provides that resulting
revenues are continuously appropriated, without regard to
fiscal years, for the administrative costs of the California
State Controller (Controller), and for disbursement by the
Controller to each county that has adopted such a resolution,
based upon the number of vehicles registered, or whose
registration is renewed, to an address within that county.
6)Requires revenues so allocated to be expended exclusively to
fund programs that enhance the capacity of local police and
prosecutors to deter, investigate, and prosecute vehicle theft
crimes. However, in any county with a population of 250,000
or less, the money must be expended exclusively for those
vehicle theft crime programs and for the prosecution of crimes
involving driving while under the influence of alcohol or
drugs, or both, or vehicular manslaughter, or any combination
of those crimes.
FISCAL EFFECT : According to the Senate Appropriations
Committee:
1)DMV implementation costs of approximately $60,000 (Motor
Vehicle Account). All initial and ongoing administrative
costs to DMV and the Controller's Office are fully recovered
from fee revenues.
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2)Potential local revenue gains of approximately $19 million
annually if all counties that currently impose the vehicle
theft surcharge approve an increase. This figure excludes the
counties of Los Angeles, San Bernardino, and San Diego, all of
which currently have the authority to increase the surcharge.
COMMENTS : Existing law establishes a basic vehicle
registration fee of $46, plus a $23 surcharge for additional
personnel for the CHP, for the new or renewal registration of
most vehicles or trailer coaches. Existing law also authorizes
local agencies to impose separate vehicle registration fee
surcharges in their respective jurisdictions for a variety of
special programs, such as abating abandoned vehicles and
deterring, investigating, and prosecuting vehicle theft.
The vehicle theft program may be established in counties if
approved through a resolution by a county board of supervisors
that imposes a $1 surcharge on every new or renewal vehicle
registration, plus another $2 on commercial vehicles. Smaller
counties adopting vehicle theft programs (those with a
population of less than 250,000) may also use the resulting
funds to prosecute specified driving under the influence and
vehicular manslaughter crimes. Each quarter, participating
counties must submit to CHP a report on the expenditures and
activities as well as submitting a fiscal year-end report to the
California State Controller. Separately, the Counties of Los
Angeles, San Bernardino, and San Diego are authorized to
increase the motor vehicle fee from $1 to $2, and the service
fee on commercial motor vehicles from $2 to $4, upon adoption of
a resolution of its board of supervisors.
This bill extends statewide to all the counties the
authorization to increase the motor vehicle fee from $1 to $2,
and the service fee on commercial motor vehicles from $2 to $4.
Further, this bill eliminates the January 1, 2018, sunset date
on the vehicle theft prevention fee, thereby making the taxing
authorization for all counties permanent.
The author indicates that the county vehicle theft prevention
programs are an "incredibly effective tool for combatting crime.
The activities funded by this fee produce a remarkable return
on taxpayer's investment, the 47 counties with a surcharge
collected a combined $31 million to fund these programs, program
activities in turn recovered a combined $151 million in assets
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and recovered more than 130,000 vehicles. This is an example of
government working well. AB 767 gives local law enforcement
agencies the tools they need to fight vehicle theft in their
communities."
Proposition 26 requires that any "change in statute which
results in a taxpayer paying a higher tax must be imposed by an
act passed by not less than two-thirds of all members elected to
each of the two houses of the Legislature." This bill does not
result in a taxpayer paying a higher tax but delegates to the
separate county boards of supervisors the authority to impose a
higher surcharge on vehicle registrations to fund a specific
government function. Ultimately, the counsel for each county
would have to determine a vote threshold at the county level.
So while this bill is a majority vote measure in the
Legislature, the local action to increase the registration
surcharge may ultimately require a two-thirds vote of the
electorate in a county.
Writing in opposition to this bill, the California Taxpayers
Association indicates "For years, hidden taxes have frustrated
voters. In 2010, voters passed Proposition 26 to stop the
Legislature from disguising fees as taxes. AB 767 ignores the
voters and undermines the spirit of
Proposition 26. Vehicle-theft prevention programs are important
to public safety. However, the Legislature should not fund
these efforts through a tax disguised as a fee intended to cover
the costs of registering a vehicle."
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093
FN: 0001273