BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          AB 1657 (Wieckowski) - Traffic offense penalties: spinal cord 
          injury research.
          
          Amended: March 22, 2012         Policy Vote: T&H 5-2
          Urgency: No                     Mandate: Yes
          Hearing Date: August 6, 2012                           
          Consultant: Mark McKenzie       
          
          This bill meets the criteria for referral to the Suspense File.
           
          
          Bill Summary: AB 1657 would impose a new $1 penalty assessment 
          on specified Vehicle Code violations, except parking offenses, 
          to fund spinal cord injury research. 

          Fiscal Impact: 
              One-time statewide costs to the courts in the range of 
              $150,000 to $300,000 (Trial Court Trust Fund) for 
              programming the new $1 assessment into county case 
              management systems.  These costs could be partially or fully 
              offset if counties opt to withhold a portion of the penalty 
              assessment revenues sufficient to cover administrative costs 
              incurred by the courts.

              Likely minor costs to county treasurers to transfer penalty 
              assessment revenues to the State Treasurer (non-reimbursable 
              mandated costs).  County costs could be partially or fully 
              offset if counties opt to withhold a portion of penalty 
              assessment revenues sufficient to cover their administrative 
              costs.

              Potential penalty revenue gains in the range of $3.5 
              million for allocation to the University of California's 
              Roman Reed Spinal Cord Injury Research Penalty Account, upon 
              appropriation by the Legislature.

          Background: Existing law, the Roman Reed Spinal Cord Injury 
          Research Act of 1999 (established by AB 750 (Dutra) Chap 
          777/2000), creates the Roman Reed Spinal Cord Injury Research 
          Program within the University of California (UC).  The Act 
          authorizes UC to establish a spinal cord injury research fund, 
          independent of the State Treasury, to accept public and private 








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          funds for expenditure by UC for spinal cord injury research 
          programs, grants, and peer review and grant administration.  The 
          five-year program established by AB 750 was extended for an 
          additional five years in 2004, and extended indefinitely in 
          2010.  The program is administered by the Reeve-Irvine Research 
          Center at UC Irvine, and about $15 million in state funding, 
          primarily from the General Fund, was allocated to the UC from 
          2000 through 2009 for expenditure on the program.  State funding 
          has not been provided for the program in recent years.

          Existing law imposes the following penalty assessments, 
          surcharges, and fees, that are added to the base fine for 
          convictions of traffic violations, except parking fines:
           A state penalty assessment of $10 for each $10 of base fine 
            (Penal Code (PC) 1464), 70% of which is deposited in State 
            Penalty Fund, for distribution to multiple special funds, and 
            30% goes to the county General Fund. 
           A state surcharge of 20% of base fine for deposit into the 
            state General Fund.
           A county penalty assessment of $7 for each $10 of base fine 
            (Government Code (GC) 76000) for specified local purposes.
           A county penalty assessment of $2 for each $10 of base fine 
            (GC 76000.5) for specified emergency medical services. 
           A penalty assessment of $4 for each $10 of base fine (GC 
            76104.6 and 76104.7), 75% of which is deposited into the State 
            DNA Identification Fund, 25% of which is distributed to the 
            county for implementation of Proposition 69 (2004).
           A state penalty assessment of $5 for each $10 of base fine (GC 
            70372 (a)), which is deposited into the Court Facilities 
            Construction Fund. 
           A state fine of $4 per conviction (GC 76000.10), which is 
            deposited into the Emergency Medical Air Transportation Act 
            Fund. 
           A state fee of $40 (PC 1465.8 (a)), which is deposited into 
            the Trial Court Trust Fund for court security purposes (amount 
            reduced to $30 on July 1, 2013). 
           A state conviction assessment fee of $35 (GC 70373), which is 
            deposited into the State Court Facilities Construction Fund. 
           For those ordered or permitted to attend a traffic violator 
            school, there is an additional $49 fee (Vehicle Code 42007.1), 
            51% of which is deposited into the State Court Facilities 
            Construction Fund and 49% of which is deposited into the 
            county General Fund.  Courts may adjust this amount to cover 
            costs to administer the traffic violator school program, and 








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            the Department of Motor Vehicles may also assess an 
            administrative fee to cover its administrative costs related 
            to the program.

          As a result of the numerous penalty assessments imposed upon 
          convictions, the costs of simple traffic violations can be very 
          high.  For example, the base fine for running a red light is 
          $100, but when penalty assessments are imposed the total bail 
          could be as high as $531.

          Proposed Law: AB 1657 would impose an additional $1 penalty on 
          each conviction for a violation of Vehicle Code provisions 
          related to "rules of the road" (traffic violations), and 
          violations of local ordinances adopted pursuant to the Vehicle 
          Code.  Penalty revenues would be deposited with the county 
          treasurer for transfer to the State Treasurer for allocation, 
          upon appropriation by the Legislature, to the Roman Reed Spinal 
          Research Account within the University of California, as 
          specified.  The bill would authorize a county treasurer to 
          withhold a sufficient amount of penalty revenues to reimburse 
          the county and courts for actual, reasonable, and necessary 
          costs associated with administering the new penalty assessment.

          Related Legislation: AB 190 (Wieckowski) would have authorized 
          counties to impose an additional $3 penalty assessment on 
          Vehicle Code violations, except parking offenses, to fund spinal 
          cord injury research.  AB 190 was held under submission on the 
          Assembly Appropriations Committee's Suspense File in 2011.

          Staff Comments: This bill would establish a permanent source of 
          funding for the Roman Reed Spinal Cord Injury Research Program 
          at UC.  According to the Department of Motor Vehicles, there 
          were 3.4 million convictions for violations that would be 
          subject to the new fee.  The amount of revenue generated would 
          more than double the average annual amount provided by the state 
          from 2000 through 2009.

          The Judicial Council estimates that one-time costs to program 
          the 130 variations of 70 different case management systems 
          statewide would be in the range of $150,000 to $300,000.  The 
          bill includes a provision that authorizes a county to withhold a 
          portion of the penalty assessment revenue that is sufficient to 
          reimburse the county and courts for administrative costs 
          associated with the new penalty assessment.  County costs 








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          related to transfer revenues to the State Treasury are likely to 
          be minor, so it is unclear how many counties would exercise the 
          authority to retain a portion of the funds to cover costs 
          incurred by the county and courts.  To the extent that counties 
          opt to withhold a portion of the penalty assessment revenues, 
          one-time programming costs to the courts could be partially or 
          fully offset.

          Staff notes that SB 857 (Committee on Budget and Fiscal Review) 
          Chap 720/2010 included a provision requiring the Judicial 
          Council to convene a task force on court-ordered debt.  Among 
          other things, the task force is required to document recent 
          annual revenues attributable to the various penalty assessments 
          and surcharges, and evaluate the extent to which the amount of 
          each assessment and surcharge impacts total annual revenues, 
          imposition of criminal sentences, and actual amounts assessed.  
          Final recommendations of the task force are forthcoming.

          Proposed Author Amendments: The author has proposed amendments 
          to establish a new special fund in the State Treasury to receive 
          the new penalty funds, and require county treasurers to transfer 
          the funds collected on March 15 and October 15 each year.  The 
          funds would be available, upon appropriation by the Legislature, 
          to the Regents of the University of California for the specified 
          purposes.

          Recommended Amendments: Staff suggests that the bill be amended 
          to require, rather than authorize, the county to withhold an 
          amount sufficient to reimburse the county and courts for costs 
          to administer the new fee.  Staff notes that this amendment 
          would alleviate the above noted court costs associated with 
          programming the new fee.