BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 2084|
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UNFINISHED BUSINESS
Bill No: SB 2084
Author: Polanco (D) and Peace (D)
Amended: 8/29/00
Vote: 27 - Urgency
SENATE TRANSPORTATION COMMITTEE : 10-0, 4/25/00
AYES: Karnette, Dunn, Costa, Figueroa, Hayden, Monteith,
Murray, Rainey, Soto, Speier
SENATE REVENUE & TAXATION COMMITTEE : 7-0, 5/17/00
AYES: Chesbro, Poochigian, Alpert, Bowen, Burton,
Johnston, McPherson
SENATE APPROPRIATIONS COMMITTEE : 13-0, 5/25/00
AYES: Johnston, Alpert, Bowen, Burton, Escutia, Johnson,
Karnette, Kelley, Leslie, McPherson, Mountjoy, Perata,
Vasconcellos
SENATE FLOOR : 40-0, 5/31/00
AYES: Alarcon, Alpert, Bowen, Brulte, Burton, Chesbro,
Costa, Dunn, Escutia, Figueroa, Hayden, Haynes, Hughes,
Johannessen, Johnson, Johnston, Karnette, Kelley, Knight,
Leslie, Lewis, McPherson, Monteith, Morrow, Mountjoy,
Murray, O'Connell, Ortiz, Peace, Perata, Polanco,
Poochigian, Rainey, Schiff, Sher, Solis, Soto, Speier,
Vasconcellos, Wright
SENATE FLOOR : 40-0, 8/31/00
AYES: Alarcon, Alpert, Bowen, Brulte, Burton, Chesbro,
Costa, Dunn, Escutia, Figueroa, Hayden, Haynes, Hughes,
Johannessen, Johnson, Johnston, Karnette, Kelley, Knight,
Leslie, Lewis, McPherson, Monteith, Morrow, Mountjoy,
Murray, O'Connell, Ortiz, Peace, Perata, Polanco,
CONTINUED
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Poochigian, Rainey, Schiff, Sher, Solis, Soto, Speier,
Vasconcellos, Wright
ASSEMBLY FLOOR : 75-1, 9/1/00 - See last page for vote
SUBJECT : Vehicles: fees
SOURCE : State Department of Motor Vehicles
DIGEST : This bill replaces the existing vehicle license
fee, registration and weight fees on trailers with a new
weight fee system on commercial motor vehicles to comply
with federal law.
ANALYSIS : Under existing law, California is a member of
the International Registration Plan (IRP), a reciprocal
program intended to facilitate commercial vehicle
registration and operation among states and nations and
provide a uniform system for the allocation and collection
of commercial vehicle operating fees by all member states.
Membership of the IRP comprises all 48 contiguous states,
D.C., and three Canadian provinces. The IRP system
provides a means by which trucking companies operating in
several states can pay fees annually to the vehicle
licensing authority in their home state. The home state
taxing authority assesses, collects and distributes the
proportionate amount of fees that would otherwise be due
and collected by each of the individual states in which the
trucking company operates.
In 1991 the federal Intermeddle Surface Transportation
Efficiency Act (ISTEA) mandated that all states be members
of the IRP and administer the IRP agreement in a uniform
manner. California has been a member of the IRP since
1985, but on an exception basis. California has maintained
its commercial vehicle weight fee system on an unladen or
empty weight basis, while other jurisdictions base their
weight fees on a vehicle's gross weight (loaded) capacity.
California is also the only IRP member that registers
commercial trailers and collects trailer weight,
registration and vehicle license fees annually. Other
members charge a one-time or multi-year fee for the
identification of trailers.
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California's IRP exception status requires the other 51
members to maintain separate records and accounting systems
and maintain a trailer registration program solely for
California. In 1999, the IRP approved an order to rescind
all exceptions effective January 1, 2001. If California
does not comply and conform its weight fee system and
trailer system to those used by other states, IRP
jurisdictions will be prohibited from collecting fees on
vehicles based in their jurisdictions which also operate in
California. California would then face the loss of about
$50 million annually in trailer fee revenues and tens of
millions more from fees uncollected on trucks by other
states. Trucks and trailers based in other states, however,
could continue to operate on California highways.
Existing law imposes a vehicle license fee (VLF) equal to
two percent of the value of vehicles, including commercial
trailers. The VLF is allocated among cities and counties
pursuant to a formula. A portion of the VLF revenue is
allocated pursuant to the so-called State-Local Realignment
program; another portion is dedicated to backing bonds as
part of the Orange County bankruptcy recovery plan. The
remainder of VLF revenue is allocated among cities and
counties on the basis of population. (Since 1999 the VLF
has been "offset" by an increasing percentage, based on the
amount by which actual State General Fund revenues exceed
the 1998 May revision estimates. However, the allocation
of revenue to local governments is maintained as though the
VLF had not been reduced below two percent, through a State
General Fund "back fill").
This bill enacts the Commercial Vehicle Registration Act of
2001.
Under existing law, the residence address in any record of
the State Department of Motor Vehicles is confidential,
with specified exceptions, including when an insurance
company, under penalty of perjury, requests certain
information for the purpose of obtaining the information
for specified purposes.
This bill includes a rental agency that has been issued a
license by the State Insurance Commissioner to engage in
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certain insurance business and includes information
relating to leased or owned vehicles within the scope of
the exception. Because certain additional companies would
be signing requests under penalty of perjury, the bill
would expand the scope of an existing crime.
The Vehicle License Fee Law provides that the annual amount
of the license fee for any vehicle is two percent of the
market value of the vehicle, as specified. Also,
provisions of existing law provide that the Legislature
shall reimburse local agencies annually for certain
property tax revenues lost as a result of any exemption or
classification of property for purposes of ad valorem
property taxation.
The California Constitution authorizes the Legislature to
classify personal property for differential taxation or for
exemption by means of a statute approved by a two-thirds
vote of the membership of each house.
This bill enacts the Commercial Vehicle Registration Act of
2001. The bill removes trailers and semitrailers from the
Vehicle License Fee Law. Pursuant to this constitutional
authorization, this bill exempts from personal property
taxation, a commercial motor vehicle or commercial trailer
or semitrailer, as specified.
Existing law prohibits a person from driving, moving, or
leaving standing upon a highway, or in an off-street public
parking facility, any motor vehicle, trailer, semitrailer,
pole or pipe dolly, logging dolly, or auxiliary dolly
unless it is registered and the appropriate fees have been
paid under the Vehicle Code.
This bill requires that any commercial motor vehicle,
singly or in combination, that operates with a declared
gross vehicle weight, as defined, that exceeds 10,000
pounds be registered with the department. This bill
requires a person submitting an application for
registration of a commercial motor vehicle to declare the
combined gross weight of all units when applying for
registration with the department. The bill also requires
the commercial motor vehicle's registered owner or the
owner's designee to complete a form provided b the
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department and to be issued a license plate.
Existing law provides that a fleet owner may make a certain
declaration on a single form for all commercial motor
vehicles registered in the fleet owner's name.
This bill deletes fleet owners from this provision and
instead makes the provision applicable to registered
owners, lessors, or designees.
Existing law provides for the issuance of identification
plates for certain vehicles, including tow dollies.
The bill requires, upon the implementation of the permanent
trailer identification plate program, which shall commence
on December on December 31, 2001, that specified trailers,
including tow dollies, be assigned permanent trailer
identification plates and be issued an identification
certificate which shall be available for inspection by a
peace officer. This bill requires the department to assess
a service fee, not to exceed $20, upon assigning a
permanent trailer identification plate. This bill requires
that an applicant for renewal of permanent trailer
identification plates pay a $25 annual fee. The bill makes
corresponding changes.
Under existing law the registered owner or lessee of a
fleet of vehicles consisting of motor vehicles or
commercial trailers, as specified, or passenger automobiles
is authorized to apply to the department for permanent
license plates or decals and registration cards.
This bill deletes commercial trailers from that program,
limits the program to motor vehicles, allows participation
in the program to continue in the program for five years
after implementation of the act even though those
participants are out of compliance with the act, and makes
related changes.
Existing law allows the Reciprocity Commission to enter
into agreements that provide exemption of regulatory fees
that are, or may be imposed, by the Public Utilities
Commission.
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This bill includes regulatory fees that are, or may be
imposed, b the department within the above provisions.
Existing law requires an application for a transfer of
registration of commercial motor vehicles, as specified, to
include a specified declaration by the owner to the
department.
This bill requires, additionally, that an application for a
transfer of a commercial motor vehicle that exceeds 10,000
pounds declared gross vehicle weight, include a
notification made by the new registered owner, or that
owner's designee, of the declared gross vehicle's weight of
the commercial motor vehicle, singly or in combination.
Existing law requires the department, upon the application
for transfer of ownership of a fleet of vehicles
apportionately registered to permit registration in the new
owner's name without reassessing the registration, weight,
and vehicle license fees, if the application of the new
ownership is for the same fleet interstate operation as the
previous owner.
This bill requires the new owner, lessee, or their
designee, to certify the declared gross vehicle weight of
the vehicle or vehicles on a single form for all commercial
motor vehicles registered in the fleet owner's or lessee's
name and would impose related duties on the department.
Existing law authorizes local governments to impose
additional registration or renewal registration fees on
vehicles, as specified.
This bill exempts trailers and semitrailers from these
provisions and imposes those additional fees on the owners
of all commercial motor vehicles, as specified.
This bill deletes that fee.
Existing law requires, in addition to any other
registration fee, the payment of fees for the registration
of any commercial vehicle based on its unladen weight.
This bill sets forth an additional schedule. The existing
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schedule, as revised, applies to any commercial vehicle
singly, or in combination, that operates with a declared
gross vehicle weight of 10,000 pounds or less, including
pickup trucks. The new schedule of fees applies to the
registration of commercial motor vehicles, operated either
singly or in combination, with a declared gross vehicle
weight of 10,001 pounds or more. The new schedule would
not include pickup truck weight fees. The bill revises the
definition of "farm trailers" to conform to the weight
changes made by the bill.
The bill provides a schedule of fines for persons who
violate any declared gross vehicle weight limitations
provided for in the bill.
The bill requires that, upon the operation of a commercial
motor vehicle at a greater gross vehicle weight than had
been reported to and registered by the department, a new
registration application be made to the department.
The bill requires the Department of the California Highway
Patrol, after consultation with representatives from the
State Department of Transportation, the State Board of
Equalization, the State Department of Motor Vehicles, and
the commercial vehicle industry, to provide, on or before
an unspecified date, recommendations to the Legislature for
actions to be taken to ensure compliance with the
provisions of the bill.
The bill requires the State Department of Motor Vehicles,
in consultation with the Department of the California
Highway Patrol, the State Department of Transportation, the
State Board of Equalization, and the commercial vehicle
industry, to review and report on or before January 1,
2003, and annually thereafter, to the Legislature its
findings and, if applicable, make any recommendation as to
the necessary adjustments in the fee schedule, to ensure
that revenue neutrality is obtained and maintained for all
affected entities and funds. This bill requires the State
Controller, in consultation with the State Department of
Motor Vehicles and the State Department of Finance, to
recalculate guaranteed the distribution of motor vehicle
license fees paid by commercial vehicles pursuant to the
gross vehicle weight fee schedule and transfer those sums,
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as specified. This bill provides that the scheduled
disbursement of motor vehicle license fee revenues is not
subject to the existing law limitations that General Fund
revenues may not be continuously appropriated beyond a
certain date. This bill creates special funds in the
General Fund which would be continuously appropriated for
allocation to each county, city, and city and county in the
same manner as those funds were received pursuant to
specified provisions of the Vehicle License Fee Law. The
bill appropriates $3,520,809 to the State Department of
Motor Vehicles from the Motor Vehicle Account in the State
Transportation Fund for purposes of implementing the bill.
This bill is double-joined with AB 1515 (Margett), SB 1333
(Sher), AB 2227 (Torlakson) and AB 2749 (Pescetti).
Alternative bill in the Assembly
A related, but different approach to solving the IRP
problem was introduced in the Assembly (AB 2527 Scott).
That bill removes all commercial vehicles, trucks and
trailers alike, from the VLF provisions in favor of a
single gross weight fee system and related charges. That
proposal is sponsored by the California Trucking
Association. It was approved by the Assembly
Transportation Committee on April 24 and is now in Assembly
Appropriations Committee.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
Fiscal Impact (in thousands)
Major Provisions 2000-01 2001-02 2002-03 Fund
DMV administration 3,500 2,500
500Motor Vehicle
CHP review 70-100 70-100 Motor
Vehicle
Unknown VLF/registration/weight
fee losses offset by new weight fee
schedule
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SUPPORT : (Verified 8/29/00)
State Department of Motor Vehicles (source)
California Cattlemen's Association
California Farm Bureau Association
Western Growers Association
Matson Navigation Company
ASSEMBLY FLOOR
AYES: Aanestad, Ackerman, Alquist, Aroner, Ashburn,
Baldwin, Bates, Battin, Bock, Brewer, Briggs, Calderon,
Campbell, Cardenas, Cardoza, Cedillo, Corbett, Correa,
Cox, Cunneen, Davis, Dickerson, Ducheny, Dutra,
Firebaugh, Gallegos, Granlund, Havice, Honda, House,
Jackson, Kaloogian, Keeley, Knox, Kuehl, Leach, Lempert,
Leonard, Longville, Lowenthal, Machado, Maddox,
Maldonado, Margett, Mazzoni, McClintock, Migden, Nakano,
Olberg, Oller, Robert Pacheco, Rod Pacheco, Papan,
Pescetti, Reyes, Romero, Runner, Scott, Shelley,
Steinberg, Strickland, Strom-Martin, Thompson, Thomson,
Torlakson, Villaraigosa, Vincent, Washington, Wayne,
Wesson, Wiggins, Wildman, Wright, Zettel, Hertzberg
NOES: Baugh
RJG:kb 9/12/00 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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