BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 425
                                                                  Page  1

          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                     AB 425 (Cook) - As Amended:  April 21, 2009 

          Policy Committee:                               
          TransportationVote:13-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              
           
          SUMMARY  

          Exempts certain National Guard and U.S. 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) (currently $14) 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.

          3)Becomes effective January 1, 2011.  

           FISCAL EFFECT  

          DMV estimates that the bill will result in annual reductions in  
          DMV reissuing fees of about $35,000 and one-time administrative  
          costs of about $50,000 to modify its automated system.
           
          COMMENTS  

           1)Rationale  . This bill is intended to address the situation  
            where an individual of the armed services is deployed with  
            short notice, and is not aware or does not have the time to  








                                                                  AB 425
                                                                  Page  2

            file an Affidavit of Non-Use form with the DMV. In these  
            instances, the driver may allow his or her insurance to lapse  
            and/or may not pay the registration renewal fee, which in turn  
            may trigger a suspension of 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.
           
          2)Recent amendments  . The April 21 amendments delay the  
            implementation date from January 1, 2010 to January 2011 to  
            give DMV time to accommodate this bill's requirements into its  
            automated insurance verification system. This system, which  
            has been operated by an outside contractor, is being  
            transitioned to the DMV.   
           
          Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081