BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 873
                                                                  Page  1

          Date of Hearing:   April 29, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 873 (Price) - As Amended:  March 26, 2009 

          Policy Committee:                               
          TransportationVote:14-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill reenacts provisions that were allowed to sunset that  
          permitted licensed registration services to apply for duplicate  
          certificates of ownership or duplicate license plates.  
          Specifically, the bill:

          1)Authorizes DMV to accept, at its discretion, applications that  
            are made by a licensed registration on behalf of (a) a dealer  
            or an agent of the dealer, (b) a dismantler, (c) an insurer or  
            agent of an insurer, (d) a salvage pool, (e) a recognized  
            business entity, (f) a court-appointed bankruptcy referee, or  
            an individual that presents an application with a signature  
            that is validated by a notary public 

          2)Requires registration services to maintain full and complete  
            records of transactions and to make those records available  
            for inspection by law enforcement agencies for the purpose of  
            a stolen vehicle investigation.  

           FISCAL EFFECT
           
          DMV indicates that, since this bill reinstates a process that  
          DMV had previously had in place, any costs to implement the bill  
          are minor and absorbable. The department may realize ongoing  
          savings by allowing registration services to process  
          transactions.

           COMMENTS

          1)Purpose.  The bill is intended to reenact provisions of law  
            that allowed for more efficient processing for duplicate title  








                                                                  AB 873
                                                                  Page  2

            or replacement license plates of car dealers and other  
            businesses that are legal, but not registered, owners of  
            autos. The sponsor indicates that many of the concerns that  
            were raised during deliberation of the previous bill were  
            addressed through safeguards included in this bill.  DMV  
            reports that many of the fraud concerns that were previously  
            raised did not materialize over the three year period in which  
            the previous law was in place.

           2)Background.  This bill reenacts provisions originally contained  
            in AB 2606 (Plescia), Chapter 430, Statutes of 2004, which  
            included a sunset date of January 1, 2008.  Under the law in  
            effect today and prior to 2005, DMV is prohibited from issuing  
            a duplicate title or replacement license plate if the address  
            shown on the application is different from the address on DMV  
            records. In order to obtain these items, the registered owner  
            has to apply in person and show specific items that prove  
            ownership of the vehicle. Duplicate title and replacement  
            license plate applications submitted by legal owners who are  
            not registered owners, such as dealers, dismantlers, and  
            insurers, are exempt from the requirement. AB 2606 provided  
            the same exemption to licensed registration services from 2005  
            through 2007.  

           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081