BILL ANALYSIS                                                                                                                                                                                                    



                                                                     SB 773  


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          Date of Hearing:  June 29, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 773  
          (Allen) - As Amended June 15, 2016


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requests the University of California (UC) to conduct  
          a study on motor vehicle registration fraud and post the results  
          on its website by January 1, 2018. Specifically, this bill:


          1)Requests that UC conduct the study to identify the magnitude  
            of vehicle registration fraud, methods used to commit vehicle  
            registration fraud, the estimated loss of revenue to the state  
            and local governments, effects on air pollution, and  
            recommended strategies for increasing compliance with  
            registration requirements.









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          2)Requires the DMV to enter into an agreement with UC to share  
            vehicle registration information and to post on its website  
            instructions for motorists on how to prevent theft of vehicle  
            registration tabs.



          3)Requires the CHP to share information related to efforts to  
            combat registration fraud, including the California Help  
            Eliminate All the Evasive Registration Scofflaws (CHEATERS)  
            program.



          FISCAL EFFECT:


          1)One-time costs to UC, ranging from minor to the low hundreds  
            of thousands of dollars in the 2017. Costs would vary  
            depending on the extent to which the study could be  
            incorporated into existing research efforts and the extent to  
            which multiple campuses would be involved in the study.

          2)Costs for DMV to provide vehicle registration records and to  
            post the required information on its website would be minor  
            and absorbable. Costs for the CHP to provide information on  
            registration fraud efforts would also be minor and absorbable.  
            [Motor Vehicle Account]





          3)To the extent the study would lead to cost effective means of  
            reducing vehicle registration fraud, the state and local  
            governments could realize significant increased revenues.  
            Based on average total registration fees, for every 100,000  
            vehicles avoiding such fees, the revenue loss totals about $17  
            million. (About 33 million vehicles were registered in  








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            California in 2014.)



          





          COMMENTS:


          Background and Purpose. Vehicle registration fraud continues to  
          be a significant public policy issue for states across the  
          country.  In California, the CHEATERS program allows a person  
          who identifies an out-of-state license plate to anonymously  
          report to the vehicle to CHP. In 2014, using information  
          provided through the CHEATERS hotline, CHP carried out an  
          enforcement campaign, which targeted drivers with out-of-state  
          license plates or expired license plate tags lead to collection  
          of $1.9 million in unpaid registration fees. Despite such  
          efforts, the state lacks adequate data to determine the methods  
          and magnitude of vehicle registration fraud within the state.  
          The Bay Area Air Quality Management District, which is  
          sponsoring this bill, notes that in addition to out-of-state  
          vehicle fraud, motorists fail to register their vehicle or fail  
          to renew registration because their vehicle cannot pass smog  
          testing, resulting in unknown but likely deleterious effects on  
          air quality. 


          The author intends to allow the state to gather data on the  
          scope and magnitude of vehicle registration fraud and the number  
          of unregistered vehicles operating within the state, along with  
          recommendations to combat this problem. 











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