AB 1752: Vehicles: registration fees.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2016-03-10
Existing law requires the Department of Motor Vehicles (DMV) to charge a registration fee on every vehicle or trailer coach, as specified. Existing law also authorizes the imposition of certain additional fees and surcharges, including, among others, an additional fee, as specified, on all motor vehicles to fund local programs relating to vehicle theft crimes.
This bill would require the DMV to clearly identify the registration fee as the base registration fee on any application for renewal of registration, and to aggregate any additional fees or surcharges added to the base registration fee as a separate and distinct line item on those applications. The bill would require the DMV to post on its Internet Web site a clear description of each additional fee or surcharge added to the base registration fee, including the statutory authority for that fee or surcharge. The bill would also require the DMV to provide with each application for renewal of registration the Internet Web site address where this information can be accessed.
Existing law requires the Department of Motor Vehicles (DMV) to charge a registration fee on every vehicle or trailer coach, as specified. Existing law also authorizes the imposition of certain additional fees and surcharges, including, among others, an additional fee, as specified, on all motor vehicles to fund local programs relating to vehicle theft crimes.
This bill would require the DMV to clearly identify the registration fee as the base registration fee on any application for initial registration or renewal of registration, and to aggregate any additional fees or surcharges added to the base registration fee as a separate and distinct line item on those applications. The bill would require the DMV to post on its Internet Web site a clear description of each additional fee or surcharge added to the base registration fee, including the statutory authority for that fee or surcharge. The bill would also require the DMV to provide with each application for renewal of registration the Internet Web site address where this information can be accessed.
Existing law requires the Department of Motor Vehicles (DMV) to charge a registration fee on every vehicle or trailer coach, as specified. Existing law also authorizes the imposition of certain additional fees and surcharges, including, among others, an additional fee, as specified, on all motor vehicles to fund local programs relating to vehicle theft crimes.
This bill would require the DMV to clearly identify the registration fee as the base registration fee on any application for initial registration or renewal of registration, and to aggregate any additional fees or surcharges added to the base registration fee as a separate and distinct line item on those applications. The bill would require the DMV to post on its Internet Web site a clear description of each additional fee or surcharge added to the base registration fee, including the statutory authority for that fee or surcharge. The bill would also require the DMV to provide with each application the Internet Web site address where this information can be accessed.
(a)A registration fee of thirty-one dollars ($31) shall be paid to the department for the registration of every vehicle or trailer coach of a type subject to registration under this code, except those vehicles that are expressly exempted under this code from the payment of registration fees. This subdivision applies to all of the following:
(1)The initial or original registration, on or after January 1, 2004, but before July 1, 2011, of any vehicle not previously registered in this state.
(2)The renewal of registration of any vehicle for which the registration period expires on or after January 1, 2004, but before July 1, 2011, regardless of whether a renewal application was mailed to the registered owner prior to January 1, 2004.
(b)A registration fee of forty-three dollars ($43) shall be paid to the department for the registration of each vehicle or trailer coach of a type subject to registration under this code, except those vehicles that are expressly exempted under this code from the payment of registration fees. This subdivision applies to all of the following:
(1)The initial or original registration, on or after July 1, 2011, of any vehicle not previously registered in this state.
(2)The renewal of registration of any vehicle for which the registration period expires on or after July 1, 2011, regardless of whether a renewal application was mailed to the registered owner prior to July 1, 2011.
(c)The registration fee imposed under this section applies to all vehicles described in Section 5004, whether or not special identification plates are issued to that vehicle.
(d)Trailer coaches are subject to the registration fee provided in subdivision (a) or (b) for each unit of the trailer coach.
(e)The amounts collected pursuant to the increase in the registration fee as specified in subdivision (b) shall be used only for costs incurred in connection with the regulation of vehicles, including administrative costs for vehicle registration.
(f)(1)The department shall clearly identify the registration fee required by this section subdivision (b) as the base registration fee on any application for renewal of registration.
(2)The department shall aggregate any additional fees or surcharges as a separate and distinct line item on the application for renewal of registration.
(3) The department shall post on its Internet Web site a clear description of each additional fee or surcharge added to the base registration fee, including the purpose for each fee or surcharge and the statutory authority for that fee or surcharge. The department shall provide with each application for renewal of registration the Internet Web site address where this information can be accessed.
(a)A registration fee of thirty-one dollars ($31) shall be paid to the department for the registration of every vehicle or trailer coach of a type subject to registration under this code, except those vehicles that are expressly exempted under this code from the payment of registration fees. This subdivision applies to all of the following:
(1)The initial or original registration, on or after January 1, 2004, but before July 1, 2011, of any vehicle not previously registered in this state.
(2)The renewal of registration of any vehicle for which the registration period expires on or after January 1, 2004, but before July 1, 2011, regardless of whether a renewal application was mailed to the registered owner prior to January 1, 2004.
(b)A registration fee of forty-three dollars ($43) shall be paid to the department for the registration of each vehicle or trailer coach of a type subject to registration under this code, except those vehicles that are expressly exempted under this code from the payment of registration fees. This subdivision applies to all of the following:
(1)The initial or original registration, on or after July 1, 2011, of any vehicle not previously registered in this state.
(2)The renewal of registration of any vehicle for which the registration period expires on or after July 1, 2011, regardless of whether a renewal application was mailed to the registered owner prior to July 1, 2011.
(c)The registration fee imposed under this section applies to all vehicles described in Section 5004, whether or not special identification plates are issued to that vehicle.
(d)Trailer coaches are subject to the registration fee provided in subdivision (a) or (b) for each unit of the trailer coach.
(e)The amounts collected pursuant to the increase in the registration fee as specified in subdivision (b) shall be used only for costs incurred in connection with the regulation of vehicles, including administrative costs for vehicle registration.
(f)(1)The department shall clearly identify the registration fee required by this section as the base registration fee on any application for initial registration or renewal of registration.
(2)The department shall aggregate any additional fees or surcharges as a separate and distinct line item on the application. application for renewal of registration.
(3) The department shall post on its Internet Web site a clear description of each additional fee or surcharge added to the base registration fee, including the purpose for each fee or surcharge and the statutory authority for that fee or surcharge. The department shall provide with each application for renewal of registration the Internet Web site address where this information can be accessed.
(a)A registration fee of thirty-one dollars ($31) shall be paid to the department for the registration of every vehicle or trailer coach of a type subject to registration under this code, except those vehicles that are expressly exempted under this code from the payment of registration fees. This subdivision applies to all of the following:
(1)The initial or original registration, on or after January 1, 2004, but before July 1, 2011, of any vehicle not previously registered in this state.
(2)The renewal of registration of any vehicle for which the registration period expires on or after January 1, 2004, but before July 1, 2011, regardless of whether a renewal application was mailed to the registered owner prior to January 1, 2004.
(b)A registration fee of forty-three dollars ($43) shall be paid to the department for the registration of each vehicle or trailer coach of a type subject to registration under this code, except those vehicles that are expressly exempted under this code from the payment of registration fees. This subdivision applies to all of the following:
(1)The initial or original registration, on or after July 1, 2011, of any vehicle not previously registered in this state.
(2)The renewal of registration of any vehicle for which the registration period expires on or after July 1, 2011, regardless of whether a renewal application was mailed to the registered owner prior to July 1, 2011.
(c)The registration fee imposed under this section applies to all vehicles described in Section 5004, whether or not special identification plates are issued to that vehicle.
(d)Trailer coaches are subject to the registration fee provided in subdivision (a) or (b) for each unit of the trailer coach.
(e)The amounts collected pursuant to the increase in the registration fee as specified in subdivision (b) shall be used only for costs incurred in connection with the regulation of vehicles, including administrative costs for vehicle registration.
(f)(1)The department shall clearly identify the registration fee required by this section as the base registration fee on any application for initial registration or renewal of registration.
(2)The department shall aggregate any additional fees or surcharges as a separate and distinct line item on the application.
(3) The department shall post on its Internet Web site a clear description of each additional fee or surcharge added to the base registration fee, including the purpose for each fee or surcharge and the statutory authority for that fee or surcharge. The department shall provide with each application the Internet Web site address where this information can be accessed.
|
Date
|
Status
|
|---|---|
| Feb 2, 2016 | Read first time. To print. |
| Feb 3, 2016 | From printer. May be heard in committee March 4. |
| Feb 18, 2016 | Referred to Com. on TRANS. |
| Mar 2, 2016 | From committee chair, with author's amendments: Amend, and re-refer to Com. on TRANS. Read second time and amended. |
| Mar 3, 2016 | Re-referred to Com. on TRANS. |
| Mar 10, 2016 | From committee chair, with author's amendments: Amend, and re-refer to Com. on TRANS. Read second time and amended. |
| Mar 14, 2016 | Re-referred to Com. on TRANS. |
| Mar 15, 2016 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 16. Noes 0.) (March 14). Re-referred to Com. on APPR. |
| Apr 6, 2016 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| May 27, 2016 | In committee: Held under submission. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Mar 14, 2016 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Transportation |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Howard Jarvis Taxpayers Association | ** Support | Mar 14, 2016 |
| United Californians for Tax Reform | ** Support | Mar 14, 2016 |
Date of Hearing: April 6, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
ABPCA Bill Id:AB 1752
Author:(Melendez) – As Amended Ver:March 10, 2016
Policy Committee: | Transportation | Vote: | 16 - 0 |
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill requires the DMV to:
- Separately identify the current $43 registration fee, which primarily supports DMV operations and enforcement, on the departments form for renewing vehicle registration.
- Aggregate any additional fees or surcharges as a separate line item on the vehicle registration renewal form.
- Post on the DMV website a description of each additional registration fee or surcharge and its associated statutory authority, and provide a link to this website on the registration renewal form.
FISCAL EFFECT:
One-time special fund cost of around $200,000 for the DMV to redesign the registration form per the bill's requirements and one-time minor cost to modify its website. [Motor Vehicle Account]
COMMENTS:
- Background. The current line item on DMV’s registration renewal notices titled “Registration Fee” displays a total cost of $70, which consists of the following: the $43 fee to support DMV operations; the $3 fee established by AB 8 (Perea), Chapter 401, Statutes of 2013, for developing and deploying alternative fuel and vehicle technology; and a fee (currently $24) indexed to inflation for the support of CHP operations. In addition, any statutorily-authorized fees that are subsequently enacted through local ordinances and collected at the time of vehicle registration or renewal are aggregated and listed separately on the DMV registration form under an item titled "County/District Fees."
- Purpose. Because several fees are combined on the DMV registration renewal notice, the author contends that these notices lack transparency with regard to what fees are being collected by DMV over and above the base registration fee set in statute. By requiring DMV to separately list these additional fees in a separate line item and provide information on its website about the nature of these fees and their statutory authority, the author seeks to enhance the transparency of the vehicle registration process.
Analysis Prepared by: Chuck Nicol / APPR. / (916) 319-2081
Date of Hearing: March 14, 2016
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
ABPCA Bill Id:AB 1752 (
Author:Melendez) – As Amended Ver:March 10, 2016
SUBJECT: Vehicles: registration fees
SUMMARY: Requires the Department of Motor Vehicles (DMV) to clearly identify the base vehicle registration fee as a separate and distinct line item on the vehicle registration renewal notice. Requires DMV to post on its web site a clear description of each additional fee or surcharge added to the base registration fee, including the statutory authority for that fee or surcharge, and requires DMV to provide the address to this website with each application.
EXISTING LAW:
- Prohibits a person from driving, moving, or leaving a vehicle or trailer on a highway or in an off-street parking facility unless it is registered with DMV.
- Requires that a registration fee of $43 be paid to the DMV for an initial vehicle registration or registration renewal.
- Adds an additional $3 to the above fee to be deposited in the Alternative and Renewable Fuel and Vehicle Technology Fund and the Enhanced Fleet Modernization Subaccount.
- Requires an additional registration fee, adjusted annually based on the California Consumer Price Index (CPI), be paid to DMV on behalf of the Department of the California Highway Patrol (CHP) at the time of vehicle registration or renewal.
- Authorizes the collection of certain other fees and surcharges at the time of vehicle registration or renewal to support a variety of state and local programs.
FISCAL EFFECT: Unknown
COMMENTS: State law directs DMV to collect vehicle registration fees along with other fees such as commercial motor vehicle weight fees, license fees, and license plate fees when the vehicle is first registered and annually thereafter. In addition, DMV may be directed to collect locally-imposed fees and surcharges that fund variety of programs such as law enforcement efforts and air pollution abatement.
When a vehicle registration renewal notice is issued by DMV, the fees that are being charged are prominently displayed and listed by category under the heading of “fees” with a distinct sum total due to the department and the date of required payment clearly identified at the bottom in bold type. Where there are a several fees in a given category – for example if a local jurisdiction has assessed a number of law enforcement-related fees – the fees are shown totaled by category.
The current vehicle registration fee is set in statute at $43. This fee goes primarily to the Motor Vehicle Account to support the state’s administration and enforcement of laws regulating the operation and registration of vehicles used on public streets and highways. AB 8 (Perea), Chapter 401, Statutes of 2013, added an additional $3 to this fee, $2 of which go to the Alternative and Renewable Fuel and Vehicle Technology Fund for the purpose of developing and deploying technology and alternative and renewable fuels in the marketplace, and $1 that goes to the Enhanced Fleet Modernization Subaccount for the purpose of allowing for the voluntary retirement of passenger vehicles and light-duty and medium-duty trucks that are high polluters.
Existing law also directs DMV to collect a fee at the time of registration or renewal on behalf of CHP to carry out duties related to enforcing the Vehicle Code. This fee is indexed to the CPI, and is currently set at $24. The current line item on DMV’s registration renewal notices titled “Registration Fee” displays a total cost of $70, which includes the $43 dollar fee established in statute, plus the $3 fee established by AB 8, plus this $24 CHP fee.
For a local fee to be collected by DMV, there must be statutory authority to do so. This authority typically requires the local jurisdiction to pass an ordinance or resolution directing the collection of the fee. Once fee collection is in place, local jurisdictions are required to account for the monies collected and expended. These local fees collected at the time of registration or renewal are aggregated and listed separately on the DMV notice under the item titled “County/District Fees.”
Because several fees are combined on the DMV registration renewal notice, the author contends that these notices lack transparency with regard to what fees are being collected by DMV over and above the base registration fee set in statute. To address this, the bill would require DMV to clearly identify the fee set in statute for the purpose of funding the operations of DMV as the “base registration fee” on the renewal notice.
According to the author, “Most people do not know about the programs they are funding through the vehicle registration process,” including the programs funded by the AB 8 fees and the CHP fee. By requiring DMV to separately list these additional fees in a separate line item to provide information on its website about the nature of these fees and their statutory authority, the author seeks to enhance the transparency of the vehicle registration process. This bill does not require each portion of the fees currently collected as the “registration fee” to be separately listed on the renewal notice, likely reducing the additional administrative costs incurred by DMV associated with printing renewal notices pursuant to this new requirement.
DMV already displays a website address and toll-free telephone number on the renewal notices providing access to additional information to customers. The new requirement for a website displaying the description and statutory authority for registration fees could likely be adapted from the existing information DMV already provides.
Previous legislation: AB 1998 (Grove) of 2014, would have required the DMV to fully identify each fee and surcharge on applications for initial vehicle registration and registration renewal as a separate and distinct line item with the corresponding statutory authority for that fee. AB 1998 was held in this committee at the request of the author.
AB 8 (Perea), Chapter 401, Statutes of 2013, increased the vehicle registration fee set in statute by $3 for the purpose of funding specific environmental programs.
REGISTERED SUPPORT / OPPOSITION:
Support
Howard Jarvis Taxpayers Association
United Californians for Tax Reform
Opposition
None on file
Analysis Prepared by: Justin Behrens / TRANS. / (916) 319-2093
Discussed in Hearing
2MIN
Assembly Standing Committee on Transportation
Bill Author
Bill Co-Author(s):
