BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 881 (Hertzberg) - Vehicles: violations ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: May 2, 2016 |Policy Vote: T. & H. 11 - 0, | | | PUB. S. 6 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 9, 2016 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- 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 SB 881 (Hertzberg) Page 1 of ? 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 SB 881 (Hertzberg) Page 2 of ? "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* SB 881 (Hertzberg) Page 3 of ? - 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 SB 881 (Hertzberg) Page 4 of ? 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. -- END --