BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2393
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          Date of Hearing:  April 30, 2014

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                           K.H. "Katcho" Achadjian, Chair
                 AB 2393 (Levine) - As Introduced:  February 21, 2014
           
          SUBJECT  :  Vehicle registration fees.

           SUMMARY  :  Authorizes counties to increase the vehicle  
          registration fee for fingerprint identification programs.   
          Specifically,  this bill  :  

          1)Authorizes, for counties that have imposed a vehicle  
            registration fee for fingerprint identification programs, the  
            fee to be increased from $1 to $2, and from $2 to $4 for  
            commercial vehicles.  

          2)Authorizes, for counties that have not imposed a $1 vehicle  
            registration fee for fingerprint identification programs,  
            imposition of a $2 fee, and a $4 fee for commercial vehicles.   


          3)Specifies the fee be paid at the time of registration or  
            renewal and quarterly to the Controller pursuant to existing  
            law.  

          4)Requires counties to submit a resolution to impose a fee of $2  
            to the Department of Motor Vehicles (DMV) at least six months  
            prior to the operative date of the fee increase.  

           EXISTING LAW  :

          1)Requires a vehicle registration fee of $46 to be paid for the  
            registration of every motor vehicle, except those expressly  
            exempt.  

          2)Authorizes a variety of additional fees that are related to  
            the operation of motor vehicles to be paid with the  
            registration, to address certain air quality and law  
            enforcement issues, including a $24 California Highway Patrol  
            (CHP) fee to pay for additional CHP officers, and $1 for  
            programs aimed at deterring vehicle theft and prosecuting  
            driving-under-the-influence violations.  

          3)Authorizes a county board of supervisors to impose a $1  








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            vehicle registration fee for purposes of funding fingerprint  
            identification programs; for counties that opt to impose this  
            fee, commercial vehicles in the county pay a $2 vehicle  
            registration fee for the same purpose.  

          4)Requires participating counties to adopt a resolution which  
            makes findings as to the purpose of, and the need for,  
            imposing the additional vehicle registration fee.  

          5)Requires the resulting fee revenues to be continuously  
            appropriated, without regard to fiscal years, for disbursement  
            to each participating county based upon the number of  
            registered vehicles in those counties.  

          6)Requires fee revenues allocated to a county to be expended  
            exclusively to fund programs that enhance the capacity of  
            local law enforcement to provide automated mobile and fixed  
            location fingerprint identification of individuals who may be  
            involved in vehicle-related crimes and other crimes committed  
            while operating a motor vehicle.  

          7)Requires every participating county to issue a fiscal year-end  
            report to the Controller, on or before November 1 of each  
            year, to include data on its fingerprint identification  
            program, including total revenues received by the county;  
            total expenditures and funds encumbered; unexpended or  
            unencumbered fee revenues; estimated annual cost of the  
            purchase, operation, and maintenance of automated mobile and  
            fixed location fingerprint equipment, related infrastructure,  
            law enforcement enhancement programs, and personnel; and, a  
            description of how the use of the funds benefits the motoring  
            public.  

          8)Suspends for one year the fee in any county that fails to  
            submit this report or that has unexpended or unencumbered fee  
            revenue at the close of the fiscal year in which fee revenue  
            was received.  

          9)Defines the "California Identification System" or "Cal-ID" to  
            mean the automated system maintained by the Department of  
            Justice for retaining fingerprint files and identifying latent  
            fingerprints. 

          10)  Provides, in Article XIII C of the California Constitution,  
            that a 'tax' means any levy, charge, or exaction of any kind  








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            imposed by a local government, except for the following:

             a)   A charge imposed for a specific benefit conferred or  
               privilege granted directly to the payor that is not  
               provided to those not charged, and which does not exceed  
               the reasonable costs to the local government of conferring  
               the benefit or granting the privilege;

             b)   A charge imposed for a specific government service or  
               product provided directly to the payor that is not provided  
               to those not charged, and which does not exceed the  
               reasonable costs to local government of providing the  
               service or product;

             c)   A charge imposed for the reasonable regulatory costs to  
               a local government for issuing licenses and permits,  
               performing investigations, inspections, and audits,  
               enforcing agricultural marketing orders, and the  
               administrative enforcement and adjudication thereof;

             d)   A charge imposed for entrance to or use of local  
               government property, or the purchase, rental, or lease of  
               local governmental property;

             e)   A fine, penalty, or other monetary charge imposed by the  
               judicial branch of government or a local government, as a  
               result of a violation of law;

             f)   A charge imposed as a condition of property development;  
               and,

             g)   Assessments and property-related fees imposed in  
               accordance with the provisions of Article XIII D.

           FISCAL EFFECT  :   This bill is keyed fiscal.  


           COMMENTS  :   

           1)Vehicle registration fee  .  Existing law establishes a basic  
            vehicle registration fee of $46, plus a $24 surcharge for  
            additional personnel for the CHP, for the new or renewal  
            registration of most vehicles or trailer coaches.  Existing  
            law also authorizes local agencies to impose separate vehicle  
            registration fee surcharges in their respective jurisdictions  








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            for a variety of special programs, such as abating abandoned  
            vehicles, deterring, investigating, and prosecuting vehicle  
            theft, and for funding fingerprint identification programs.  

           2)Purpose of this bill  .  This bill authorizes counties to  
            increase the vehicle registration fee for fingerprint  
            identification programs.  For counties that have imposed the  
            $1vehicle registration fee, this bill authorizes an increase  
            in that amount to $2.  For counties that have not imposed the  
            $1 vehicle registration fee this bill authorizes those  
            counties to impose $2 vehicle registration fee.  This bill is  
            sponsored by the California State Sheriffs' Association.   
           
           3)Author's statement  .  According to the author, "This bill  
            simply gives local law enforcement agencies the tools needed  
            to help keep their communities safe, by allowing counties to  
            increase the fee for automated fingerprint identification  
            programs by an additional $1.  Technological developments and  
            infractions have reduced the purchasing power of the proceeds  
            of an existing fee authority that funds automated fingerprint  
            identification."  

           4)Cal-ID and previous legislation  .  The Department of Justice  
            (DOJ) started the fingerprint identification program, known as  
            Cal-ID, in the late 1980s to provide a way to verify the  
            identity of persons placed under arrest and to assist law  
            enforcement agencies in other ways, such as identifying human  
            remains and identifying possible criminal suspects, using  
            fingerprint evidence gathered at crime scenes.   

             Limited funding for the technology and equipment hampered  
            implementation of Cal-ID.  As a result, the Legislature passed  
            SB 720 (Lockyer), Chapter 587, Statutes of 1997, which  
            authorized counties to impose a $1 vehicle registration fee,  
            upon the adoption of a resolution by a county's board of  
            supervisors, with the proceeds directed to local agencies to  
            purchase and upgrade equipment compatible with the DOJ's  
            Cal-ID system.  SB 720 limited the duration of the program to  
            five years.  Subsequent legislation extended authorization for  
            the program twice:  AB 879 (Keeley), Chapter 986, Statutes of  
            2002, extended the program until 2006 and added reporting  
            requirements, and AB 857 (Bass), Chapter 470, Statutes of  
            2005, extended the program until January 2012.  Finally, AB  
            674 (Bonilla), Chapter 205, Statutes of 2011, repealed the  
            sunset date entirely.  








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            Although the program has been extended indefinitely, the  
            author and sponsor point out that the $1 vehicle registration  
            fee has not changed since the inception of the program 17  
            years ago.  Currently 45 out of the 58 counties have elected  
            to increase the vehicle registration fee by $1 in order to  
            fund Cal-ID.  

            According to the sponsor, "[Cal-ID] reduces DOJ workload by  
            avoiding the scanning of inked fingerprint cards and has  
            increased officer safety by providing rapid and accurate  
            identification of persons law enforcement encounters in the  
            field.  Additionally, the evolution of technology has  
            heightened these benefits and eliminated some unnecessary  
            transportation to booking facilities."

           5)Proposition 26  .  This bill delegates to county boards of  
            supervisors the authority to impose a vehicle registration  
            fee.  Since Proposition 26 (2010) has changed the rules of  
            fees and taxes, and thus tightened the requirements needed for  
            local voter approval, the issue of whether voter approval is  
            necessary to increase the fee may be an issue that is  
            ultimately up to the courts to decide.  

            In opposition to this bill, the Howard Jarvis Taxpayers  
            Association argues, "?an appropriate fee is either regulatory  
            in nature, or needs to provide a direct benefit to the  
            fee-payer.  In order for this bill to meet that standard,  
            everybody paying the fee would either have to be the  
            perpetrator or the victim of a vehicle crime.  As the nexus is  
            not established, it is a local tax increase requiring a  
            two-thirds vote."  Taxes at the local level require a  
            two-thirds vote for those taxes that are specifically  
            dedicated to be used for certain purposes; otherwise, if the  
            tax is for general purposes, a majority vote of the residents  
            in the jurisdiction is then needed.  

           6)Arguments in support  .  Supporters argue that given the  
            enhanced technology, increased benefits, and the fact that the  
            fee has not been adjusted since it was created more than 
          15 years ago, it is appropriate to allow counties to decide  
            whether they would like to increase this fee.  
            
           7)Arguments in opposition  .  Opposition argues that this bill  
            violates provisions of the California Constitution and is  








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            therefore devoid of necessary voter approval requirements.  

           8)Double-referral  .  This bill was heard by the Transportation  
            Committee on April 21, 2014, and passed with a 9-6 vote.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California State Sheriffs' Association [SPONSOR]
          California Association of Crime Laboratory Directors
          California District Attorneys Association
          Sheriff Gregory J. Ahern, Alameda County
          Sheriff Donny Youngblood, Kern County
          Sheriff John R. Robertson, Napa County
          Sheriff Sandra Hutchens, Orange County

           Opposition 
           
          Howard Jarvis Taxpayers Association
           
          Analysis Prepared by :    Misa Yokoi-Shelton / L. GOV. / (916)  
          319-3958