BILL ANALYSIS SENATE TRANSPORTATION COMMITTEE BILL NO.:.........AB 135 Senator Quentin L. Kopp, Chairman AUTHOR:...........RAINEY VERSION: (Orig.): (As Amend.):..05/17/95 FISCAL:..............YES SUBJECT: Vehicle registration surcharges: vehicle theft and abandoned vehicle abatement. DESCRIPTION: This bill would extend, for five years each, the sunset (repeal) dates on provisions authorizing local agencies to impose a $1 vehicle registration surcharge for abandoned vehicle abatement and a $1 surcharge for vehicle theft enforcement. ANALYSIS: Existing law establishes a basic state vehicle registration fee of $29, which includes a $2 surcharge for additional California Highway Patrol officers. The fee revenue is deposited in the Motor Vehicle Account and supports the operations of the Department of Motor Vehicles, California Highway Patrol and other state motor-vehicle related activities. Existing law authorizes local agencies to impose separate motor vehicle registration fee surcharges in their respective jurisdictions for a variety of special programs, including $1 for freeway safety (callbox) programs, $1 for abandoned vehicle abatement, up to $4 for air quality programs and $1 for deterring and prosecuting vehicle theft. SB 2139 (Davis, 1990) authorized counties to impose the $1 fee for vehicle theft activities for a 5-year period, expiring January 1, 1996, and provided that at least 50 percent of the personnel and activities funded be dedicated exclusively to vehicle theft. Any funds collected but not expended for these purposes must be returned to the state and be deposited in the Motor Vehicle Account. SB 2139 also required that the fee increase not be used to offset a reduction in any other funds. Legislation authorizing the $1 fee for local abandoned vehicle abatement activities limits the collection of the fee to a period of five years from the date that actual collection of the fee commenced. This bill would extend for five years the expiration dates on the authority to collect the $1 vehicle theft and abandoned vehicle abatement registration fee surcharges. The vehicle theft provisions would expire on January 1, 2001 while local vehicle abatement surcharges would expire on a number of future dates, depending on each jurisdiction's program starting date. COMMENTS: 1.(a) Proponents of the bill contend that the various county vehicle theft task forces funded by the $1 registration fees have been successful in suppressing vehicle theft activities, arresting AB 135 (RAINEY) Page 3 ________________________________________________________________ and prosecuting auto thieves and "chop shop" operators and recovering stolen vehicles and related property. A review of annual reports by several of the task forces indicates hundreds of arrests and the recovery of stolen vehicles with a combined value of several millions of dollars. Sponsors indicate that the pursuit of auto theft cases was a relatively low priority until the special funding became available. Task force activities typically involve the coordinated efforts of investigators, analysts, officers and district attorneys and personnel of cities and counties working with their state and federal counterparts. (b) Proponents cite similar success stories and results relative to vehicle abatement efforts, contending that the programs clear up public nuisance situations, clean up health hazards and eliminate potentially dangerous situations for children and others. 2. Earlier Committee action. The Committee approved similar legislation on March 21, 1995 (SB 36, Killea) relative to extending the $1 fee authority for vehicle theft programs. There are differences in the two bills, however: * SB 36 would extend the program until January 1, 2000 -- or four years -- rather than AB 135's five years. * The Committee deleted an inconsistency/loophole in SB 36 that required only a bare majority of the funds collected to be used for the stated purposes. AB 135 still contains the provision, however. * SB 36 prohibits use of vehicle theft funds for purposes not explicitly authorized in the statutory language. AB 135 does not contain the same language but does declare the funds are to be expended exclusively for the program. Sponsors have indicated their willingness to accept amendments addressing some of the differences. 3. Vehicle abatement surpluses. It is unclear whether each and every jurisdiction engaged in vehicle abatement requires continued support at the current levels. Information compiled by the California Highway Patrol (see Attachment) reveals a program surplus or unexpended abatement fund balance in 21 of 27 counties collecting fees for vehicle abatement. In two noteworthy cases, the unexpended balances in San Diego and San Mateo counties are equivalent to 47 percent and 67 percent of the counties' annual program revenues, respectively. AB 135 (RAINEY) Page 4 ________________________________________________________________ If programs are generating surpluses, should they be suspended, a year at a time, until already-collected revenues are expended? Alternatively, should annual surpluses be required to be deposited in the Motor Vehicle Account, as is now required with respect to the vehicle theft program surcharges? Assembly Votes: Floor: 57-14 Appr: 13-1 Trans: 11-1 AB 135 (RAINEY) Page 5 ________________________________________________________________ POSITIONS: (Communicated to the committee before noon on Wednesday, July 5, 1995.) SUPPORT: California Attorney General's Office California District Attorneys Association Los Angeles County District Attorney's Office Los Angeles County Sheriff's Department Sacramento County Sheriff's Department Riverside County Sheriff's Department San Mateo County Sheriff's Department San Bernardino County Sheriff's Department California State Sheriffs' Association Peace Officers Research Association of California Association for Los Angeles Deputy Sheriffs, Inc. Alameda County Chiefs of Police and Sheriff's Assn. Daly City Police Department Belmont Police Department Galt Police Department Millbrae Police Department Costa Mesa Police Department San Bruno Police Department Shasta Co. Abandoned Vehicle Abatement Service Authority Yuba County Service Authority Marin County Joint Powers Authority City of Los Angeles City of Chula Vista City of San Ramon City of Walnut Creek City of Concord City of Lafayette City of El Cajon City of National City City of San Jose City of Imperial Beach City of Vista City of Poway City of Jackson City of Fremont City of Plymouth City of Hayward City of La Quinta City of Norco City of Indio Fire Department Alameda County Contra Costa County San Diego County Lake County Amador County City/County Assn. of Governments of San Mateo County San Diego County Regional Auto Theft Task Force AB 135 (RAINEY) Page 6 ________________________________________________________________ CA Independent Public Employees Legislative Council California Trucking Association California State Association of Counties Western States Auto Theft Investigators Association, Southern Chapter Orange County Transportation Authority Independent Cities Association Farmers Insurance Group of Companies OPPOSED: 07/05/95