BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 286|
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                                 THIRD READING


          Bill No:  AB 286
          Author:   Salas (D), et al
          Amended:  6/23/09 in Senate
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMM.  :  7-3, 7/7/09
          AYES:  Lowenthal, DeSaulnier, Harman, Kehoe, Pavley,  
            Simitian, Wolk
          NOES:  Huff, Ashburn, Hollingsworth
          NO VOTE RECORDED:  Oropeza

           SENATE APPROPRIATIONS COMMITTEE  : 8-1, 08/17/09
          AYES: Kehoe, Cox, Corbett, Hancock, Leno, Price, Wolk, Yee
          NOES: Walters
          NO VOTE RECORDED: Denham, Oropeza, Runner, Wyland

           ASSEMBLY FLOOR  :  48-29, 6/3/09 - See last page for vote


           SUBJECT  :    Vehicle registration fee surcharges:  vehicle  
          theft programs

           SOURCE  :     California State Sheriffs Association
                      Los Angeles County District Attorneys Office
                      Los Angeles County Sheriffs Department
                      San Diego County District Attorneys Office
                      San Diego County Sheriffs Department


           DIGEST  :    This bill extends from 2010 to 2018 the sunset  
          date on the authority of counties to impose vehicle  
          registration surcharges to fund vehicle theft prevention,  
                                                           CONTINUED





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          investigation, and prosecution programs.

           ANALYSIS  :    Existing law establishes a basic vehicle  
          registration fee for the new or renewal registration of  
          most vehicles of $34, plus a $22 surcharge for additional  
          personnel for the California Highway Patrol (CHP).   
          Existing law also authorizes local agencies to impose  
          separate vehicle registration fee surcharges in their  
          respective jurisdictions for a variety of special programs,  
          including until January 1, 2010, $1 for a program to deter,  
          investigate, and prosecute vehicle theft.

          A county board of supervisors may by resolution impose this  
          $1 surcharge on every new or renewal vehicle registration,  
          plus an extra $2 on commercial vehicles, within the county  
          to fund a program to deter, investigate, and prosecute  
          vehicle theft.  Smaller counties, those with a population  
          of less than 250,000, may also use these funds to prosecute  
          specified driving under the influence and vehicular  
          manslaughter crimes.  

          The Department of Motor Vehicles collects the surcharge and  
          remits those fees, after deducting its own administrative  
          costs, to the State Controller.  Funds received are  
          continuously appropriated and are disbursed by the  
          Controller to each participating county based on the number  
          of registered vehicles within the county.

          Each quarter a participating county must submit to CHP a  
          report on the expenditures and activity, and by August 31st  
          every year, each county must submit a report to the State  
          Controller that describes for the fiscal year that just  
          ended:

          1.Total revenues received from the surcharge by the county.
          2.Total expenditures by the county on eligible programs.
          3.A summary of vehicle theft abatement activities and other  
            programs funded by the surcharge.
          4.The total number of stolen vehicles recovered and their  
            value.
          5.The total number of vehicles stolen and a comparison to  
            the preceding fiscal year; and
          6.Any unexpended surcharge revenues received.








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          The Controller may suspend collection of the fee if the  
          local agency is not reporting as required in law or is not  
          expending funds as authorized.  The Controller annually  
          reports to the Legislature on this program.

          This bill: 

          1.Extends the sunset date on the $1 vehicle registration  
            surcharge for vehicle theft prevention from January 1,  
            2010 to January 1, 2018.

          2.Expands the information that a county must include in its  
            fiscal year end report so that it provides a detailed  
            accounting of the funds received and expended in the  
            preceding fiscal year, including expenditures made for  
            salaries and expenses, for purchases of equipment and  
            supplies, and any other expenditures made with a comment  
            explaining those.

           Comments
           
          SB 2139 (Davis), Chapter 1670, Statutes of 1990, authorized  
          counties to impose a $1 surcharge on vehicle registrations  
          to fund vehicle theft programs.  Since then, the cost of  
          these programs has far outpaced the increased number of  
          registered vehicles on the road.

          Forty-seven counties impose the surcharge, including Los  
          Angeles County, where in 1993, the Board of Supervisors  
          imposed a $1 fee to create a vehicle theft program called  
          the Taskforce for Regional Auto-theft Prevention (TRAP).

          TRAP is a multi-agency task force that investigates,  
          prosecutes and deters vehicle theft and fraud on a  
          coordinated and cooperative basis.   The author and  
          sponsors report that TRAP has been highly successful in  
          combating vehicle theft and fraud by focusing on organized  
          vehicle theft rings, "chop shops," international auto theft  
          rings that steal vehicles and ship them to other countries,  
          individuals who obtain vehicles by fraud, and other forms  
          of vehicle theft.

          Los Angeles County reports that since 1993, TRAP has made  
          over 7,500 arrests, recovered over 20,000 vehicles worth  







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          nearly $355 million, and prosecuted over 4,000 cases of  
          automobile theft.  In recent years TRAP has had to reduce  
          the number of personnel assigned to the program which has  
          negatively impacted TRAP's ability to effectively combat  
          auto theft in Los Angeles County.

          San Diego County's Regional Auto Theft Taskforce (RATT) is  
          a similar multi-jurisdictional task force that works to  
          combat car theft and is funded with the $1 surcharge there.  
           Last year RATT recovered 319 stolen vehicles worth over  
          $3.3 million and successfully prosecuted over 100 cases.

           Prior Legislation  

          Since the initial authorization of the vehicle theft  
          prevention surcharge in 1990, the Legislature has extended  
          the sunset date on the surcharge several times, most  
          recently through AB 1663 (Dutra), Chapter 514, Statutes of  
          2004, which moved the sunset date from 2005 to 2010. 

          In 2007, the Los Angeles County Sheriff sponsored AB 878  
          (Davis), which Governor Schwarzenegger vetoed.  AB 878  
          would have allowed a county to increase the surcharge it  
          imposes on vehicle registrations within its jurisdiction  
          from $1 to $2 to fund vehicle theft prevention,  
          investigation, and prosecution programs.  AB 878 would have  
          also extended the sunset on this program until 2013.   
          According to his veto message, Governor Schwarzenegger  
          vetoed AB 878, because it did not contain a provision  
          requiring voter approval of the surcharge increase.  

          In response to the governor's veto of AB 878, the author  
          last year introduced AB 860 (Salas) simply to extend the  
          sunset date, but not to increase the surcharge, and thus  
          ensure that funding does not cease altogether for local  
          vehicle theft deterrence programs.  This bill is identical  
          to AB 860, which passed the Senate 26-13.  The governor  
          vetoed AB 860, along with many others, due to the historic  
          delay in passing the 2008-2009 State Budget.  He issued a  
          generic veto message for all those bills.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No








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          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions                2009-10     2010-11     
           2011-12   Fund  
          DMV & SCO Admin.                             all costs  
          covered by fees collected                    Local
          Vehicle fee continuation                     revenue gain  
          of $30,000 annually                          Local
                              From 1/1/10 through 1/1/18

           SUPPORT  :   (Verified  8/19/09)

          California State Sheriff's Association (co-source) 
          Los Angeles County District Attorney's Office (co-source)
          Los Angeles County Sheriff's Department (co-source)
          San Diego County District Attorney's Office (co-source) 
          San Diego County Sheriff's Department (co-source) 
          Alameda County Sheriff
          Amador County Sheriff
          American Federation of State, County, and Municipal  
          Employees 
          Association of Los Angeles Deputy Sheriffs
          Butte County Sheriff
          California District Attorneys Association
          California District Attorneys Association
          California New Car Dealers Association
          California State Association of Counties 
          California State Automobile Association (AAA)
          Chief of Police, City of Alhambra
          Chief of Police, City of Arcadia
          Chief of Police, City of Azusa
          Chief of Police, City of Baldwin Park
          Chief of Police, City of Burbank
          Chief of Police, City of Covina
          Chief of Police, City of Culver City
          Chief of Police, City of Downey
          Chief of Police, City of El Monte
          Chief of Police, City of Gardena
          Chief of Police, City of Glendale
          Chief of Police, City of Inglewood
          Chief of Police, City of Irwindale
          Chief of Police, City of La Verne







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          Chief of Police, City of Long Beach
          Chief of Police, City of Manhattan Beach
          Chief of Police, City of Monrovia
          Chief of Police, City of Montebello
          Chief of Police, City of Monterey Park
          Chief of Police, City of Pomona
          Chief of Police, City of Redondo Beach
          Chief of Police, City of San Fernando
          Chief of Police, City of San Gabriel 
          Chief of Police, City of San Marino
          Chief of Police, City of Santa Monica
          Chief of Police, City of Sierra Madre
          Chief of Police, City of Signal Hill
          Chief of Police, City of South Pasadena
          Chief of Police, City of Torrance
          Chief of Police, City of Vernon
          Chief of Police, City of West Covina
          Chief of Police, City of Whittier
          Chief of Policy, City of Hawthorne
          City of Chula Vista
          City of Sacramento
          Contra Costa County Sheriff
          Count of Contra Costa
          Del Norte County Sheriff
          El Dorado County Sheriff
          Fresno County Sheriff
          League of California Cities
          Lo Jack Corporation
          Los Angeles County
          Mariposa County Sheriff
          National Insurance Crime Bureau
          Sacramento County Sheriff 
          Santa Barbara County Sheriff
          Santa Cruz County Sheriff
          Shasta County Sheriff
          State Association of County Auditors
          Tuolumne County Sheriff
          Ventura County Sheriff
          Yolo County Sheriff

           OPPOSITION  :    (Verified  8/19/09)

          California Taxpayers Association 
          Howard Jarvis Tax Payers Association







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          Stop the Hidden Taxes Coalition

           ARGUMENTS IN SUPPORT  :    The Los Angeles County District  
          Attorney's Office states in support:

               In 1993, the County of Los Angeles chose to impose a  
               $1 fee to create a vehicle theft program called the  
               Taskforce for Regional Autotheft Prevention (TRAP).

               TRAP is a multiagency task force that investigates,  
               prosecutes and deters vehicle theft and fraud on a  
               coordinated and cooperative basis.  TRAP has been  
               highly successful in combating vehicle theft and fraud  
               by focusing on organized vehicle theft rings, "chop  
               shops," and international auto theft rings that steal  
               vehicles and ship them to other countries, individuals  
               who obtain vehicles by fraud and other forms of  
               vehicle theft. 

               Since 1993, TRAP has made nearly 7,500 arrests served  
               over 3,000 warrants, recovered over 19,000 vehicles  
               worth nearly $340 million, and inspected over 3,200  
               businesses.  TRAP has made a significant impact in  
               combating the problem of auto theft in Los Angeles  
               County.

               AB 286 extends, until January 1, 2018, the sunset date  
               on provisions that authorize the imposition by  
               counties of a vehicle registration fee to fund  
               programs that enhance the capacity of local police and  
               prosecutors to deter, investigate, and prosecute  
               vehicle theft crimes.

           ARGUMENTS IN OPPOSITION  :    Cal-Tax opposes this bill  
          "because it is a tax.  Counties do not register vehicles  
          and therefore will not be using these revenues for this  
          specific purpose.  Rather, as the bill states, revenues  
          would be used to address vehicle theft.  Without a  
          two-thirds public vote, this tax violates the local voting  
          requirements of the State Constitution imposed by Article  
          XIIIA and XIIIC."  
           

           ASSEMBLY FLOOR  :  







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          AYES:  Ammiano, Arambula, Beall, Blumenfield, Brownley,  
            Buchanan, Caballero, Charles Calderon, Carter, Chesbro,  
            Coto, Davis, De La Torre, De Leon, Eng, Evans, Feuer,  
            Fong, Fuentes, Furutani, Galgiani, Hall, Hayashi,  
            Hernandez, Hill, Huffman, Jones, Krekorian, Lieu, Bonnie  
            Lowenthal, Ma, Mendoza, Monning, Nava, John A. Perez, V.  
            Manuel Perez, Portantino, Price, Ruskin, Salas, Saldana,  
            Skinner, Solorio, Swanson, Torlakson, Torres, Torrico,  
            Bass
          NOES:  Adams, Anderson, Tom Berryhill, Blakeslee, Conway,  
            Cook, DeVore, Duvall, Emmerson, Fletcher, Fuller, Gaines,  
            Garrick, Gilmore, Hagman, Harkey, Huber, Jeffries,  
            Knight, Logue, Miller, Nestande, Niello, Nielsen, Silva,  
            Smyth, Audra Strickland, Tran, Villines
          NO VOTE RECORDED:  Bill Berryhill, Block, Yamada


          JA:nl  8/19/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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