BILL ANALYSIS �
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: sb 1209
SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: runner
VERSION: 3/27/12
Analysis by: Carrie Cornwell FISCAL: yes
Hearing date: April 17, 2012
SUBJECT:
Vehicle registration surcharges: nonresident owners
DESCRIPTION:
This bill adds a surcharge onto the registration fees that
nonresidents pay to register a vehicle in California and directs
the proceeds to systems that warn the public of criminal
activity.
ANALYSIS:
Existing law establishes a basic vehicle registration fee of
$46, plus a $23 surcharge for additional personnel for the
California Highway Patrol (CHP), and authorizes local agencies
to impose separate vehicle registration fee surcharges in their
respective jurisdictions for a variety of special programs,
including $1 for fingerprint identification programs, up to $19
for air quality programs, and $1 for programs to dispose of
abandoned vehicles. Vehicle owners located out of state that
register vehicles in California pay the $46 basic registration,
plus the $23 surcharge for CHP, but pay none of the
locally-imposed registration surcharges, as they are not within
the jurisdiction of any California local agency.
This bill :
1.Imposes an additional surcharge on the registration fee of a
motor vehicle registered to a nonresident owner whose
residence or business address is located outside of
California. The amount of this surcharge equals the average
of all additional registration surcharges that local agencies
have imposed throughout the state, as determined by the
Department of Motor Vehicles (DMV).
2.Divides revenues from this additional surcharge, after DMV
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deducts its administrative costs, as follows:
o Fifty percent to CHP to support databases and public
warning systems used to alert motorists and the general
public of abductions, shootings, and other imminent threats
to public safety.
o Fifty percent to the California Department of Justice to
maintain criminal justice databases designed to enhance the
effectiveness of public safety warning systems.
1.Takes effect for new and renewal vehicle registrations that
are due July1, 2013 and thereafter.
COMMENTS:
1.Purpose . The author introduced this bill to add a surcharge
equal to the average fee paid by California residents to the
registration fees paid by nonresident owners of California
vehicles. The bill divides the resulting revenues equally
between the CHP and the California Department of Justice to
support programs such as Amber Alert and Blue Alert that warn
motorists of emergencies on our roadways, particularly those
related to child abductions or criminals in flight.
The author notes that nonresident vehicle owners use the same
streets and highways and receive the same services as the
California residents and business owners who she asserts pay
approximately $10 per year in county fees. These fees paid
incident to the registration of over 31 million vehicles are
applied to programs that support stolen vehicle recovery, air
quality, and fingerprint system. There is no policy-based
rationale for excluding nonresidents from paying a reciprocal
fee equal to the average fee paid by California residents.
2.Out of state vehicles . DMV reports that for calendar year
2011, there were about 172,000 California vehicles (cars,
trucks, and motorcycles) registered to an out-of-state
address. In addition, DMV confirms that no county fee is
charged to a vehicle registered to an out-of-state address.
It is worth noting, however, that assessing fees on
out-of-state vehicle owners, which are different from those
assessed on in-state owners, based solely on residency, as
this bill does, raises potential constitutional issues. In
the 1990s, California assessed a $300 "smog impact fee" on
vehicles brought in from others states and registered in
California. Ultimately, the courts deemed this fee
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unconstitutional and required California to refund the fees
paid, plus interest. Further, California law authorizes
California to enter into the International Registration Plan,
which provides for a system of registration for entities
involved in interstate trucking. California entered the IRP
over 10 years ago, so this bill as it applies to IRP vehicles
would likely be preempted by federal law.
3.Amendment . The bill imposes a surcharge "equal (to) the
average additional fee imposed pursuant to action taken by a
local entity ? upon the registration or renewal of
registration occurring in this state in the immediately
preceding fiscal year." DMV staff finds this language
unclear and says it would be difficult to program into DMV's
registration system. In addition, the language could result
in an amount that changes from year to year, potentially by
very small amounts. The author or committee may therefore
wish to amend the bill to specify an actual amount for the
surcharge on nonresident vehicle registrations.
POSITIONS: (Communicated to the committee before noon on
Wednesday, April 11,
2012)
SUPPORT: None received.
OPPOSED: None received.