BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 2393 (Levine) - Vehicle registration fees: fingerprint  
          identification programs.
          
          Amended: As Introduced          Policy Vote: T&H 7-3
          Urgency: No                     Mandate: No
          Hearing Date: June 30, 2014                             
          Consultant: Mark McKenzie       
          
          This bill does not meet the criteria for referral to the  
          Suspense File. 

          
          Bill Summary: AB 2393 would increase the cap on the fee that  
          counties may impose upon vehicle registrations to fund  
          fingerprint identification programs.  Specifically, the bill  
          would authorize counties to impose a fee of $2 on vehicles  
          registered in their respective jurisdictions.  If a $2 fee is  
          imposed, the fee on commercial vehicles would be $4. 

          Fiscal Impact: 
              One-time Department of Motor Vehicles (DMV) programming  
              costs of approximately $40,000 for each county that elects  
              to increase the fee.  If a county has never imposed the fee,  
              DMV's programming costs would be $100,000.  All DMV costs  
              are recoverable from fee revenues.

              Unknown local fee revenues, potentially in the millions  
              annually.  Actual local revenue gains would depend upon the  
              number of counties exercising the authority to impose the  
              higher fee, and the number of registered vehicles subject to  
              the fee.  Currently 45 counties impose the fee, which  
              generated $29.8 million in net local revenues in 2012-13. 

          Background: Existing law establishes a basic vehicle  
          registration fee of $46 and a $24 surcharge for additional  
          California Highway Patrol personnel.  Local agencies are also  
          authorized to impose various vehicle registration surcharges in  
          their respective jurisdictions, including a $1 fee for  
          fingerprint identification programs.  A $2 fee is charged for  
          the registration of commercial vehicles in those counties that  
          have adopted the fingerprint identification program fee.  The  
          fee is imposed upon adoption of a resolution by the board of  








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          supervisors.  This surcharge generates approximately $30 million  
          annually for the 45 participating counties.  The funds are  
          collected by the DMV and continuously appropriated to the State  
          Controller's Office (SCO) for distribution to participating  
          counties.  All DMV and SCO costs are fully recovered from fee  
          revenues.  The authority to impose this fee was initially  
          enacted in 1997 and was permanently extended by AB 674  
          (Bonilla), Chap. 205/2011.

          Since 1986, the Department of Justice has operated an automated  
          fingerprint identification program known as Cal-ID, which is  
          designed to assist law enforcement agencies in identifying  
          criminal suspects, arrested persons, and human remains.  The  
          vehicle registration surcharge funds programs that enhance the  
          capacity of local law enforcement to provide automated mobile  
          and fixed location fingerprint identification of individuals  
          arrested for driving under the influence, vehicular  
          manslaughter, or other vehicle-related crimes.  

          Proposed Law: AB 2393 would authorize counties that have imposed  
          a $1 vehicle registration surcharge for fingerprint  
          identification systems to increase that surcharge to $2, upon  
          adoption of a resolution by its board of supervisors.   The $2  
          surcharge that is currently imposed on commercial vehicles would  
          automatically increase from $2 to $4 upon approval of the  
          resolution that would increase the surcharge for all vehicles.   
          Any county that does not currently impose the surcharge would be  
          authorized to impose either a $1 or $2 surcharge pursuant to the  
          same procedures.  The bill would require the county board of  
          supervisors to submit the resolution to DMV at least six months  
          prior to the operative date of the fee imposition or increase.

          Staff Comments: Although the current authority to impose a  
          vehicle registration fee for fingerprint identification systems  
          is permanent, the amount of the fee has lost purchasing power  
          over the 17-year history of the program.  This bill would allow  
          local law enforcement agencies to continue to update and  
          purchase automated mobile and fixed location fingerprint  
          identification equipment that is compatible with the Cal-ID  
          program.  Increasing the amount of the surcharge would allow  
          programs to keep pace with rising costs and account for the  
          declining purchasing power of the $1 surcharge.

          AB 2393 does not include an explicit requirement that proposals  








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          to increase the fingerprint identification systems surcharge be  
          presented to county voters for approval.  Counties that decide  
          to impose or increase the surcharge would need to make the  
          determination of any necessary voter approval requirements. 

          Recommended Amendments:  Staff recommends the following  
          technical amendment to ensure that the commercial vehicle  
          surcharge increases to $4 when a county is raising the vehicle  
          surcharge from $1 to $2, and when it is imposing a $2 surcharge  
          without ever having imposed a $1 fee:

          Amendment 1: On page 3, line 7, delete "subparagraph (A)" and  
          insert:
               paragraph (2)

          Amendment 2: On page 3, line 13, delete "subparagraph (A)" and  
          insert:
               paragraph (2)