BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2068
                                                                  Page  1

          Date of Hearing:   April 16, 2012

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                  AB 2068 (Portantino) - As Amended:  April 9, 2012
           
          SUBJECT  :  Vehicles: license plates: legislative and 
          congressional members

           SUMMARY  :  Increases fees for distinctive legislative and 
          congressional member license plates.  Specifically,  this bill  :  

             1)   Increases the fee for legislative and congressional 
               member license plates from $12 to $48.  

             2)   Increases the transfer fee for legislative and 
               congressional member license plates from $10 to $38.  

             3)   Adds a $38 annual renewal fee for legislative and 
               congressional member license plates.  

             4)    Adds a $38 fee for a duplicate legislative and 
               congressional member license plate.  

             5)   Specifies that additional fees received by the 
               Department of Motor Vehicles (DMV) for special legislative 
               and congressional member license plates are to be deposited 
               into the Motor Vehicle Account.  

           EXISTING LAW  :  

             1)   Requires the California DMV, upon registering a vehicle, 
               to issue the owner two license plates to identify the 
               vehicle.  

             2)   Authorizes DMV to issue distinctive license plates to 
               current or former members of the California Legislature or 
               United States Congress.  

             3)   Specifies that, in addition to regular fees for the 
               original registration or renewal, fees for the distinctive 
               plates include $12 for initial issuance of the special 
               plate and $10 for the transfer of the plate to another 
               vehicle.  









                                                                  AB 2068
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             4)   Authorizes DMV to issue a variety of other license 
               plates.  

           FISCAL EFFECT  :  Unknown  

           COMMENTS  :  DMV began issuing distinctive license plates for 
          legislative or congressional members in 1978.  These license 
          plates denote that the person is or was a member of the 
          California Legislature or member of the United States Congress.  
          Fees for these license plates, in addition to regular 
          registration fees, are set at $12 for the initial issuance of 
          the license plate and $10 to transfer the license plate to 
          another vehicle.  

          DMV issues a whole host of license plates, including:  

          1)Special license plates (e.g., amateur radio station, Gold Star 
            Family, Congressional Medal of Honor, press photographer, 
            horseless carriage, and Pearl Harbor survivor, among others);  


          2)Special interest license plates (e.g., environmental, 
            memorial, Arts Council, Coastal Commission, firefighters, and 
            Yosemite Foundation, among others); and,  

          3)Personalized license plates.  

          According to DMV, direct and administrative costs for 
          legislative and congressional member license plates is $6.00 to 
          produce the plate and between $18 and $20 for related 
          administrative processing.  

          The author argues that the statutorily prescribed fees for these 
          legislative and congressional member license plates are not 
          sufficient to cover DMV's direct costs.  He has introduced AB 
          2068 to increase the fees for legislative or congressional 
          member license plates so that DMV's costs are fully recovered.  
          The increased fee rates prescribed in this bill mirror those set 
          forth for special interest license plates.  It is important to 
          note that, for special interest license plates, a portion of the 
          fees collected supports the particular special interest, for 
          example, the Yosemite Foundation.  

          This bill will generate monies from legislative and 
          congressional member license plates over and above DMV's direct 








                                                                  AB 2068
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          costs.  These additional funds will be directed into the Motor 
          Vehicle Account.   It is not clear what the author's intent is, 
          if any, regarding the additional revenue that would be generated 
          as this bill provides no further parameters governing the use of 
          this money.  

           Recent legislation:  

           AB 11 4X (Evans) Chapter 11, Statutes of 2008, among other 
          things, raised the voluntary Environmental License Plate Fund 
          (ELP) fee by $8 per plate (to $48 for new plates and $38 for 
          renewals).  This fee increase generated approximately $3 million 
          in revenues annually and was used to off-set cuts in the state's 
          resources departments.  

           REGISTERED SUPPORT / OPPOSITION  :  

           Support 
           
          None received

           Opposition 
           
          None received
           

          Analysis Prepared by  :    Victoria Alvarez / TRANS. / (916) 319- 
          2093