BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           425 (Cook)
          
          Hearing Date:  06/29/2009           Amended: 04/21/2009
          Consultant: Mark McKenzie       Policy Vote: T&H 11-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   AB 425 would, beginning January 1, 2011, exempt  
          members of the California National Guard and U.S. Armed Services  
          from paying a vehicle registration reissuance fee if the  
          cancellation of the registration occurred while the person was  
          serving outside the state during a time of war.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           DMV programming/admin.            $50         $33       Special*

          Fee revenue loss                  $18         $36       Special*
          ____________
          * Motor Vehicle Account
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: 
          Existing law requires the Department of Motor Vehicles (DMV) to  
          suspend, cancel, or revoke a vehicle registration under the  
          following circumstances: the registration was obtained by  
          providing false evidence of financial responsibility; an  
          insurance company notifies DMV that coverage has been canceled;  
          or evidence of financial responsibility has not been submitted  
          to DMV within 30 days of registration issuance, as specified.   
          The registered owner may reinstate a suspended, canceled, or  
          revoked registration by paying a fee sufficient to cover the  
          costs of reissuance as determined DMV and providing evidence  
          that any reason for cancellation has been remedied.  The current  
          vehicle registration reissuance fee is $14.  

          Commencing January 1, 2011, AB 425 would exempt active duty  
          National Guard and Armed Forces personnel who are serving  
          outside the state in a military conflict during a time of war  
          from paying the reissuance fee, upon submittal of a copy of  
          military orders with the request for registration reinstatement.











          There are currently 22,900 members of the National Guard based  
          in California, of whom 2,634 are deployed outside the state in a  
          military conflict, and 70,349 members of the U.S. Armed Forces  
          stationed in California, of whom 49,244 are deployed outside the  
          state in military conflict.  DMV estimates that of the 51,878  
          individuals who might be eligible for the reissue fee exemption,  
          approximately five percent, or 2,594, may incur a vehicle  
          registration suspension in any given year.

          DMV indicates that this bill would result in estimated  
          implementation costs of about $50,000 mainly for computer  
          programming, and ongoing administrative costs of about $33,000  
          annually thereafter.  If all of the 2,594 eligible persons  
          applied for the vehicle registration reissue fee exemption, the  
          annual fee revenue loss would be $36,316.