BILL ANALYSIS �
SB 1209
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Date of Hearing: August 8, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 1209 (Runner) - As Amended: June 12, 2012
Policy Committee:
TransportationVote:12-2
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires the Department of Motor Vehicles (DMV) to
charge additional vehicle registration and renewal fee to the
owner of a vehicle who is not a resident of California. The
amount of the out-of-state-owner fee will be either $10 or the
average additional fee imposed pursuant to actions taken by a
local entity upon vehicle registration or renewal in the
preceding fiscal year, as determined by DMV. Revenue from the
out-of-state-owner fee, upon appropriation and minus DMV's
administrative costs, is allocated as follows:
1)50% to the California Highway Patrol (CHP) for databases and
public warning systems used to alert motorists and the general
public of abductions, shootings, and other imminent threats to
public safety.
2)50% to the Department of Justice (DOJ) to be used to maintain
criminal justice databases designed to enhance the
effectiveness of public safety warning systems.
FISCAL EFFECT
1)One-time costs of approximately $175,000 to DMV in 2011-12 and
2012-13 to make programming changes to allow for collection of
the out-of-state-owner fee (Motor Vehicle Account).
2)Annual costs in the tens of thousands of dollars to DMV to
determine the average amount of local vehicle registration
fees in preceding years (Motor Vehicle Account).
3)Annual revenue to CHP and DOJ, each, of approximately $700,000
SB 1209
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to $800,000, assuming approximately 172,000 vehicles would be
subject to the out-of-state-owner vehicle registration fee
each year (Motor Vehicle Account).
COMMENTS
1)Rationale . The author contends out-of-state owners of
vehicles registered in California receive similar benefits as
do California-based owners of vehicles registered in the
state. The author notes, however, that such out-of-state
vehicle owners pay, on average, $10 less in registration fees
than do in-state vehicle owners, the discrepancy resulting
from additional registration fees imposed by local governments
upon vehicle owners residing within their respective
jurisdictions. The author contends this discrepancy is
unfair, given the similarity of benefits received and,
therefore, intends this bill to roughly equalize the
registration fees paid by all vehicle owners. The author
further contends it appropriate to allocate the increase in
fee revenue that would result from this bill to CHP and 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.
2)Background . Owners of vehicles registered in California,
regardless of the owner's place of residence, must pay a basic
vehicle registration fee of $46, plus a $23 surcharge for
additional personnel for the CHP. Local entities, such as
county governments and air pollution control districts, may
impose vehicle registration fee surcharges on vehicles
registered to owners who reside within their respective
jurisdictions for a variety of programs that provide primarily
local benefits, including surcharges for fingerprint
identification programs used by local law enforcement and
surcharges for air quality programs.
According to DMV, it has been sued twice, successfully, by
owners of vehicles forced to pay registration fees that
discriminate upon the basis of the vehicle owner's status as a
non-California resident. As a result of those law suits, DMV
had to refund millions of dollars in registration fees. DMV
expresses doubt that the fee proposed by this bill would
withstand legal challenge.
3)Support. This bill is supported by the Peace Officers
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Research Association of California.
4)There is no opposition formally registered to this bill.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081