BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 425
                                                                  Page  1

          Date of Hearing:   April 13, 2009

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                                   Mike Eng, Chair
                  AB 425 (Cook) - As Introduced:  February 23, 2009
           
          SUBJECT  :  Vehicle registration reinstatement: military personnel

          SUMMARY  :  Exempts National Guard and US Armed Forces members  
          from fees required to be charged for reinstating vehicle  
          registrations.  Specifically,  this bill  :  

          1)Provides that the fee normally charged by the Department of  
            Motor Vehicles (DMV) for reissuing a vehicle registration that  
            has been suspended, canceled or revoked, does not apply to a  
            California National Guard or the United States Armed Forces  
            member who was serving on active duty outside California in a  
            wartime military conflict at the time that his or her vehicle  
            registration was suspended, canceled, or revoked.  

          2)Requires any person seeking such an exemption to submit a copy  
            of his or her official military orders when requesting  
            registration reinstatement.  

           EXISTING LAW  :  Requires DMV, before reinstating a suspended,  
          canceled, or revoked vehicle registration, to collect a fee  
          sufficient to pay the cost of the reissuance, in addition to any  
          other required fees.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  The author points out that military personnel  
          receiving deployment orders have little time to prepare.  Should  
          their auto insurance lapse during their absence, their vehicle  
          registration could be suspended.  Upon their return, they would  
          either have to present proof of planned non-operation or pay a  
          reinstatement fee ($14) in order to restore the vehicle's  
          registration.  

          Correspondence between DMV and a constituent of the author's  
          indicates that such occurrences could be avoided by the vehicle  
          owner filing an Affidavit of Non-Use form with DMV.  It does not  
          seem reasonable, however, to expect deploying military personnel  
          to either be aware of this option or to have the time or  
          wherewithal to take the necessary steps.  This bill would  








                                                                  AB 425
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          resolve that issue for such persons.  

          It should be noted that the program to electronically verify  
          registrants' insurance status was only initiated in 2005 and was  
          initially administered by a private contractor.  The program is  
          now being transitioned to DMV staff administration in a lengthy  
          and difficult process.  The transition requires a great deal of  
          programming in order to move a large number of records, to  
          accept updates electronically, and to generate notices.  The  
          private vendor administering the program currently fields almost  
          12,000 telephone calls each day, making call center capability a  
          challenge.  Consequently, DMV may be unable to easily  
          accommodate this bill's provisions until that transition is  
          substantially complete.  An operative date for this bill of July  
          1, 2010, or perhaps even January 1, 2111, could help assure its  
          successful implementation.  

           Related legislation  :  In the 2007-08 Legislative Session, AB 418  
          (Saldana) would have exempted vehicles owned by deployed  
          National Guard members from vehicle registration and vehicle  
          license fees, AB 11 (DeVore of 2007) and AB 2557 (DeVore of  
          2008) would have established a special license plate for  
          National Guard members.  Each of these bills died in fiscal  
          committee.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Legion, Department of California
          California Professional Firefighters 

           Opposition 
           
          None received
           

          Analysis Prepared by  :   Howard Posner / TRANS. / (916) 319-2093