BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 2393
          Author:   Levine (D)
          Amended:  7/3/14 in Senate
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  7-3, 6/17/14
          AYES:  DeSaulnier, Beall, Galgiani, Hueso, Lara, Liu, Pavley
          NOES:  Gaines, Cannella, Wyland
          NO VOTE RECORDED:  Roth

           SENATE APPROPRIATIONS COMMITTEE  :  5-1, 6/30/14
          AYES:  De Le�n, Hill, Lara, Padilla, Steinberg
          NOES:  Walters
          NO VOTE RECORDED:  Gaines

           ASSEMBLY FLOOR  :  42-31, 5/27/14 - See last page for vote


           SUBJECT  :    Vehicle registration surcharge:  fingerprint  
          identification systems

           SOURCE  :     California State Sheriffs Association


           DIGEST  :    This bill authorizes counties to impose either a $1  
          or $2 vehicle registration surcharge to fund fingerprint  
          identification systems. 

           ANALYSIS  :    Existing law establishes a basic vehicle  
          registration fee of $46, plus a $24 surcharge for additional  
          personnel for the California Highway Patrol (CHP), for the new  
          or renewal registration of most vehicles.  Existing law also  
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          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.  County boards of supervisors adopt  
          resolutions imposing the surcharge and declaring the purpose of  
          and need for the surcharge.  In counties that have imposed the  
          surcharge, commercial vehicles pay an additional $2 and other  
          vehicles pay an additional $1 with their vehicle registrations  
          for the fingerprint program.

          Existing law continuously appropriates the funds generated by  
          the $1 and $2 surcharges, which are collected by the Department  
          of Motor Vehicles (DMV) and disbursed by the State Controller,  
          to each county that has adopted the required resolution.   
          Counties may only spend these revenues 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 driving under the  
          influence of alcohol or drugs, vehicular manslaughter, and other  
          vehicle-related crimes, as well as other crimes committed while  
          operating a motor vehicle.
          Every participating county must issue a fiscal year-end report  
          to the State Controller.  The State Controller must notify DMV  
          if a participating county either does not file the report or  
          does not expend the surcharge revenue for an authorized purpose.  
           In either instance, DMV suspends collection of the surcharge in  
          that county for a year.

          This bill:

          1.Authorizes any county that has imposed a $1 vehicle  
            registration surcharge for fingerprint identification systems  
            to increase that surcharge to $2 through a resolution its  
            board of supervisors adopts.

          2.Authorizes a county without this surcharge currently in place  
            could choose to impose either a $1 or $2 surcharge through a  
            resolution its board of supervisors adopts.

          3.Specifies that counties which impose $2 surcharges on their  
            regular vehicle registrations would automatically increase the  
            surcharge on commercial vehicles from $2 to $4 as well.  

          4.Requires a county submit the resolution to DMV at least six  

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            months prior to the date DMV will begin collecting the $2  
            surcharge.
           
          Comments
           
          Since 1986, the Department of Justice has operated an automated  
          fingerprint identification program, known as Cal-ID.  This  
          program is designed to assist law enforcement agencies in  
          various ways, including verifying the identity of persons placed  
          under arrest, identifying human remains, and identifying  
          criminal suspects by the use of fingerprints.

          Local law enforcement agencies have access to the Cal-ID system,  
          but many agencies had, in the past, reported that the necessary  
          access equipment was antiquated and that they were not  
          financially able to take full advantage of the significant  
          advances in the related technology.  

          In light of these shortcomings, the Legislature enacted SB 720  
          (Lockyer, Chapter 587, Statutes of 1997) which authorized, until  
          January 1, 2003, participating counties to impose the $1 annual  
          surcharge to fund local law enforcement use of automated mobile  
          and fixed-location fingerprint identification equipment  
          (live-scan).  AB 879 (Keeley, Chapter 986, Statutes of 2002)  
          extended the sunset date to 2006 and added requirements for  
          participating counties to report to the State Controller and for  
          the Controller to report to the Legislature on the program.  In  
          2005, AB 857 (Bass, Chapter 470) extended the sunset date until  
          January 1, 2012, and then in 2011, AB 674 (Bonilla, Chapter 205)  
          repealed the sunset date, making the program permanent.  

          Although the program is permanent, the author introduced this  
          bill to restore some of the lost purchasing power of the $1  
          surcharge, which has not changed since the inception of the  
          program 17 years ago.  In addition, proponents note that this  
          increase would enable law enforcement to take advantage of  
          advances in fingerprinting technology.

          The people passed Proposition 26 in November 2010, and so  
          amended the California Constitution to require that any "change  
          in statute which results in a taxpayer paying a higher tax must  
          be imposed by an act passed by not less than two-thirds of all  
          members elected to each of the two houses of the Legislature."   
          This bill does not result in a taxpayer paying a higher tax but  

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          delegates to county boards of supervisors the authority to  
          impose a higher surcharge on vehicle registrations to fund a  
          specific government function.  Ultimately, county counsels will  
          have to determine a vote threshold at the county level. 

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

           One-time 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. 

           SUPPORT  :   (Verified  7/30/14)

          California State Sheriffs' Association (source) 
          Alameda County Sheriff's Office 
          California Association of Crime Laboratory Directors 
          California District Attorneys Association
          California State Association of Counties 
          County of San Mateo Office of the Sheriff 
          Napa County Office of Sheriff-Coroner 
          Orange County Sheriff's Department  
          Sheriff-Coroner, Santa Cruz County
          Sheriff's Office, County of Kern 

           OPPOSITION  :    (Verified  7/30/14)

          California Car Clubs
          California Taxpayers Association
          Howard Jarvis Taxpayers Association

           ARGUMENTS IN SUPPORT  :    The California State Sheriffs'  
          Association states, "The Legislature approved SB 720 (Lockyer,  
          Chapter 587) in 1997, allowing for the collection of a $1  

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          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 Department of Justice (DOJ) Cal-ID system, a program that  
          has been very successful.  It 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.

          "Technological developments and inflation have reduced the  
          purchasing power of the proceeds of this program.  Additionally,  
          county jail bookings have increased with time and changes to our  
          criminal justice system.  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."

           ARGUMENTS IN OPPOSITION  :    Opponents argue that the fee  
          increase proposed in this bill runs afoul of Constitutional  
          provisions governing the imposition of special taxes, namely  
          that imposition of such a tax requires a two-thirds vote of the  
          electorate.  
           
          ASSEMBLY FLOOR :  42-31, 5/27/14
          AYES: Ammiano, Bloom, Bocanegra, Bonilla, Bonta, Bradford,  
            Brown, Buchanan, Ian Calderon, Campos, Chau, Chesbro, Cooley,  
            Dickinson, Eggman, Fong, Frazier, Garcia, Gatto, Gomez,  
            Gordon, Hall, Roger Hern�ndez, Holden, Jones-Sawyer, Levine,  
            Lowenthal, Mullin, Nazarian, Pan, Quirk, Rendon,  
            Ridley-Thomas, Rodriguez, Skinner, Stone, Ting, Weber,  
            Wieckowski, Williams, Yamada, Atkins
          NOES: Achadjian, Allen, Bigelow, Ch�vez, Conway, Dababneh,  
            Dahle, Daly, Donnelly, Fox, Beth Gaines, Gorell, Gray, Grove,  
            Hagman, Harkey, Jones, Linder, Logue, Maienschein, Mansoor,  
            Medina, Melendez, Muratsuchi, Nestande, Olsen, Perea, Salas,  
            Wagner, Waldron, Wilk
          NO VOTE RECORDED: Alejo, Gonzalez, Patterson, John A. P�rez, V.  
            Manuel P�rez, Quirk-Silva, Vacancy



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          JA:nl  7/31/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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