BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 1209|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: SB 1209
Author: Runner (R), et al.
Amended: 5/29/12
Vote: 27
SENATE TRANSPORTATION & HOUSING COMMITTEE : 9-0, 4/17/12
AYES: DeSaulnier, Gaines, Harman, Kehoe, Lowenthal,
Pavley, Rubio, Simitian, Wyland
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/24/12
AYES: Kehoe, Walters, Alquist, Dutton, Lieu, Price,
Steinberg
SUBJECT : Vehicles: surcharge: nonresident owners
SOURCE : Author
DIGEST : 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
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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. Requires the amount of this surcharge either
be equal to the average of all additional registration
surcharges that local agencies have imposed throughout
the state, as determined by the Department of Motor
Vehicles (DMV), or $10.
2.Divides, upon appropriation by the Legislature, revenues
from this additional surcharge, after DMV deducts its
administrative costs, as follows:
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.
Fifty percent to the Department of Justice (DOJ) to
maintain criminal justice databases designed to
enhance the effectiveness of public safety warning
systems.
3.Takes effect for new and renewal vehicle registrations
that are due July1, 2013, and thereafter.
Comments :
The author's office 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. This bill divides the resulting
revenues equally between the CHP and the DOJ 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.
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The author's office 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.
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
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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
One-time DMV programming costs of at least $194,288
(Motor Vehicle Account), reimbursed by fees collected, to
establish the new fee for imposition only on vehicles
registered to nonresident owners. Ongoing DMV
administrative costs, likely in the range of $100,000
annually, deducted from fees collected.
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Unknown fee revenue gain, likely in the range of $1.7
million annually, distributed evenly to CHP and DOJ.
SUPPORT : (Verified 5/25/12)
Peace Officers Research Association of California
Police Chiefs Association
JJA:do 5/29/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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