BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1324
                                                                  Page  1

          Date of Hearing:   May 8, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 1324 (Skinner) - As Amended:  May 2, 2013 

          Policy Committee:                               
          TransportationVote:10-5
                        Local Government                        6-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill authorizes Alameda County, upon adoption of a  
          resolution by the board of supervisors, to increase the motor  
          vehicle registration surcharge from $1 to $2 and the commercial  
          vehicle service surcharge from $2 to $4-the same as existing  
          authority provided to Los Angeles, San Bernardino, and San Diego  
          counties-to fund law enforcement and prosecution efforts to  
          deter, investigate and prosecute vehicle theft crimes in that  
          county. The authority for any surcharge expires January 1, 2018.
           
          FISCAL EFFECT  

          According to the State Controller's annual report, Alameda is  
          one of 47 counties that have adopted the $1/$2 surcharges, which  
          generated revenue totaling $1.3 million in 2011-12. This bill  
          would allow doubling of these surcharges for four years, and  
          thus a doubling of the annual revenue over this time as a source  
          of funds to combat vehicle theft.

           COMMENTS  

           1)Background and Purpose  . SB 2139 (Davis)/Chapter 1670 of 1990  
            first authorized counties to establish a separate annual $1  
            vehicle registration surcharge to fund programs that enhance  
            the capacity of local police and prosecutors to deter,  
            investigate, and prosecute vehicle theft crimes. Owners of  
            specified commercial vehicles pay an additional $2. DMV  
            collects these fees and the State Controller's Office  
            distributes the revenues to participating counties. All  
            administrative costs are recovered from fees collected. 








                                                                  AB 1324
                                                                  Page  2


            AB 1404 (Feuer)/Chapter 775 of 2012, authorizes the Counties  
            of Los Angeles, San Bernardino, and San Diego to double the  
            vehicle registration surcharge and the commercial vehicle  
            surcharge. AB 1324 extends the authority for this additional  
            surcharge to Alameda County. The authority for both the base  
            surcharge and these additional surcharges sunsets January 1,  
            2018.




           2)Opposition  . The California Taxpayers Association argues in  
            part that the surcharge is a regressive tax on lower- and  
            middle-class voters and questions the nexus of a vehicle  
            registration fee with an vehicle theft prevention/prosecution  
            program.





           3)Related Legislation  . AB 767 (Levine), also on today's agenda,  
            makes permanent the provisions of law allowing Los Angeles,  
            San Bernardino, and San Diego counties to increase the  
            surcharge on vehicle registration from $1 to $2 and the  
            commercial vehicle service surcharge from $2 to $4 and expands  
            this authorization to all counties.


           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081