BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 881 (Hertzberg) - Vehicles:  violations
          
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          |Version: May 2, 2016            |Policy Vote: T. & H. 11 - 0,    |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 9, 2016       |Consultant: Mark McKenzie       |
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          This bill meets the criteria for referral to the Suspense File.



          Bill  
          Summary:  SB 881 would prohibit the courts from initiating  
          driver's license suspensions when a person fails to pay traffic  
          fines and penalties or fails to appear in court, unless that  
          failure is willful.  The bill also requires the Department of  
          Motor Vehicles (DMV) to restore all driving privileges by July  
          1, 2017 for those who have a suspension or hold as a result of a  
          failure to pay (FTP), failure to appear (FTA), or failure to  
          comply (FTC) with court orders.


          Fiscal  
          Impact:  
            Trial court workload  : Unknown major costs, likely in the  
            millions annually, to conduct hearings to determine  
            willfulness when there is a FTP, FTA, or FTC, and to the  
            extent the courts are prohibited from requiring payment of  
            bail, penalties, fees and assessments as a condition of  







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            conducting a hearing on an underlying charge. (Trial Court  
            Trust Fund)

            Fine / penalty assessment impact  : Unknown major reductions in  
            collections of fines, fees, and assessments, likely in the  
            millions and potentially tens of millions annually, by  
            removing license suspensions as an incentive to pay  
            court-ordered debt, and requiring collections programs to  
            offer payment plans based upon the debtors ability to pay.   
            Revenue reductions related to the latter provision would be  
            partially mitigated by some revenue gains for partial payments  
            on debt that may not have otherwise been paid.  (General Fund,  
            various special funds, local funds)

            DMV programming  : One-time costs of up to $100,000 in 2016-17  
            to terminate existing license suspensions and make system  
            changes to prospectively halt suspension actions.  (Motor  
            Vehicle Account)

            DMV license reinstatements  : Potentially significant staffing  
            costs to process license reinstatements for up to 550,000  
            drivers, likely fully offset by a significant increase in fee  
            revenues paid by applicants for reinstatement ($55 each).  Any  
            costs and revenue gains would likely be spread over several  
            fiscal years.  (Motor Vehicle Account) 


          Background:  Existing law provides that in addition to any other penalty in  
          an infraction, misdemeanor, or felony, the court may impose a  
          civil penalty of up to $300 against any defendant who fails to  
          appear in court for any proceeding or fails to pay any portion  
          of the fine ordered by the court.  Existing law provides that if  
          any person has failed to pay a fine within the time authorized  
          by the court, the magistrate or clerk of the court may give  
          notice to the DMV for any violation.  If the fine is later fully  
          paid then the court shall inform the DMV.  Upon receipt of a  
          notice from the courts, DMV is required to suspend the person's  
          driver's license, and may not issue or renew the license until  
          the person's driving record is cleared.  The DMV estimates that  
          there are approximately 550,000 individuals whose driving  
          privileges have been suspended as a result of a failure to pay,  
          failure to appear, or failure to comply with court orders.  
          Existing law, pursuant to a 2015-16 budget agreement, authorized  
          an 18-month traffic amnesty program for delinquent debt (see  








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          "Related Legislation" below).  Under this program, the $300  
          civil assessment imposed by collection programs for an FTA or  
          FTP is waived.  Individuals then receive a 50% reduction in the  
          total amount of court-ordered debt owed for traffic infractions  
          and certain traffic misdemeanors as long as specified criteria  
          are met.  In addition, participants in the amnesty program, as  
          well as individuals currently making payments for the same  
          violations included in the amnesty program, can have their  
          driver's licenses reinstated.  Existing law also requires courts  
          to allow individuals to schedule court proceedings even if bail  
          or a civil assessment has been imposed.


          In addition to base fines for traffic violations, existing law  
          imposes numerous additional penalty assessments, fees, and  
          surcharges for convictions of these infractions, all of which  
          significantly increase the total bail owed as a result of  
          violations.  For example, the total bail on a violation with a  
          base fine of $35 is $238, and the total bail on a violation with  
          a base fine of $100 is $490 (not including fees associated with  
          traffic violator schools).  Existing law specifies a complex  
          process for the distribution of fine and fee revenues to  
          numerous state and local funds.  Some of these add-on fines and  
          fees were enacted to fund specific activities, such as emergency  
          medical services or DNA-related activities, while others support  
          general court operations, court facilities construction, or  
          state and local general funds. 


          The following assessments and fees are a flat charge per  
          conviction:  a $4 Emergency Medical Air Transportation Penalty  
          Assessment; a $40 Court Operations Assessment; A $30 Conviction  
          Assessment Fee; and a $1 Night Court Fee.  The following  
          charges, however, are dependent upon amount of the base fine:


          - State Penalty Assessment: $10 for every $10 of a base fine*
          - County Penalty Assessment: $7 for every $10 of a base fine*
          - Court Construction Penalty Assessment: $5 for every $10 of a  
          base fine*
          - Proposition 69 DNA Penalty Assessment: $1 for every $10 of a  
          base fine*
          - DNA Identification Fund Penalty Assessment: $4 for every $10  
          of a base fine*








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          - Emergency Medical Services Penalty Assessment: $2 for every  
          $10 of a base fine*
          - State Surcharge: 20% of a base fine
          (* the base fines are rounded up to the next $10 increment for  
          purposes of calculating the assessment)


          Proposed Law:  
            SB 881 would make various changes to actions by the courts and  
          DMV as a result of a person's FTP, FTA, or FTC.  Specifically,  
          this bill would:
           Prohibit the court from imposing a civil assessment for a FTP  
            or FTA, unless the defendant willfully fails to appear or pay.
           Provide that the ability to pay the $300 assessment shall not  
            be a prerequisite to arraignment, trial, or other court  
            proceedings.
           Provide that payment of bail, fines, penalties, fees, or a  
            civil assessment shall not be required to schedule a court  
            hearing on a pending underlying charge.
           Require county or court "comprehensive collection programs" to  
            provide payment plans based on the debtor's ability to pay, as  
            specified.
           Prohibit a county or court from initiating driver's license  
            suspension or hold actions as part of a comprehensive  
            collection program.
           Repeal provisions that would require DMV to suspend a person's  
            driver's license upon notification from the court of a FTA or  
            FTP.
           Require DMV to restore all driving privileges suspended as a  
            result of a FTA or FTP by July 1, 2017.
           Provide that the bill applies to commercial driver's licenses,  
            as well as Class C or M licenses (common and motorcycle  
            licenses).
           Specify that the court must notify DMV if a person has  
            satisfied court orders related to a FTA or FTP, if the court  
            previously notified DMV of that person's FTA or FTP.
           Prohibit DMV from suspending a driver's license upon notice  
            from a court of a person's FTA or FTP.
           Specify that the bill does not apply to license suspensions  
            that are related to specified reckless driving or driving  
            under the influence violations.


          Related  








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          Legislation:  SB 85 (Committee on Budget and Fiscal Review),  
          Chap. 26/2015, authorized an 18-month traffic amnesty program,  
          beginning October 1, 2015, for delinquent debt.
          SB 405 (Hertzberg), Chap. 385/2015, requires courts to allow  
          individuals to schedule court proceedings, even if bail or civil  
          assessment has been imposed, and clarifies the traffic amnesty  
          program.


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