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AB-3243 Vehicle registration fees: penalties.(2023-2024)

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Date Published: 04/03/2024 09:00 PM
AB3243:v98#DOCUMENT

Amended  IN  Assembly  April 03, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 3243

Introduced by Assembly Member Ta

February 16, 2024

An act to add and repeal Section 4611 amend Section 4604.5 of the Vehicle Code, relating to vehicle registration fees.


LEGISLATIVE COUNSEL'S DIGEST


AB 3243, as amended, Ta. Vehicle registration fees: amnesty. penalties.
Existing law authorizes the Department of Motor Vehicles to impose a registration fee for vehicles registered for use in California. Existing law imposes penalties for the failure of a person to pay the registration fee. Existing law permits the department to suspend, cancel, or revoke the registration of a vehicle when the department determines that the required fee has not been paid.
Existing law requires, prior to the expiration of the registration of a vehicle, if that registration is not to be renewed prior to its expiration, the owner of the vehicle to file a specified certification that the vehicle will not be operated, moved, or left standing upon a highway without first making an application for registration of the vehicle, including full payment of all fees, except as specified. Existing law authorizes certifications to be filed after the expiration of the registration, but not later than 90 days after the expiration date, subject to the payment of specified filing fees and delinquency penalties.
This bill would, notwithstanding any law, prohibit a person who is subject to these delinquency penalties and has been determined to have a current income level that meets the eligibility requirements for specified public social services programs, including, among others, the California Work Opportunity and Responsibility to Kids (CalWORKs) program, from being required to pay the delinquency penalty in order to renew the registration of their vehicle. The bill would instead authorize the person to delay payment of their penalty until after the vehicle is registered, but by no later than the expiration date of the vehicle’s registration. If the delayed penalty payment is not received by the expiration date of the vehicle’s registration, the bill would prohibit the person from renewing their registration the following year until the penalty is paid.

This bill would, until January 1, 2026, require the department to accept, in full satisfaction of all delinquent vehicle registration fees, 20% of the total outstanding registration amount for any applicant if specified criteria are met. The bill would, for eligible participants, waive all applicable late fees and penalties, among other things, associated with delinquent vehicle registration and planned nonoperation of vehicles, as specified.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 4604.5 of the Vehicle Code is amended to read:

4604.5.
 (a) (1) If the vehicle has not been operated, moved, or left standing upon any highway subsequent to the expiration of the vehicle’s registration, the certification specified in Section 4604 or 4604.2 may be filed after the expiration of the registration of a vehicle, but not later than 90 days after the expiration date, subject to the payment of the filing fee specified in Section 4604 and the penalty specified in paragraph (2).
(2) A penalty shall be collected on any certification specified in Section 4604 or 4604.2 filed later than midnight of the date of expiration of registration. The penalty shall be computed as provided in Sections 9406 and 9559 and after the registration and weight fees have been combined with the license fee specified in Section 10751 of the Revenue and Taxation Code, as follows:
(A) For a delinquency period of 10 days or less, the penalty is 10 percent of the fee.
(B) For a delinquency period of more than 10 days, to and including 30 days, the penalty is 20 percent of the fee.
(C) For a delinquency period of more than 30 days, to and including 90 days, the penalty is 60 percent of the fee.
(3) This subdivision applies to the renewal of registration for vehicles with expiration dates on or before December 31, 2002.
(b) The certification specified in Sections 4604 and 4604.2 may be filed no more than 90 days after the expiration of the registration of a vehicle if the vehicle has not been operated, moved, or left standing upon any highway subsequent to the expiration of the vehicle’s registration. A penalty shall be collected on any certification specified in Section 4604 or 4604.2 filed later than midnight of the date of expiration of registration. After 90 days, the vehicle must be registered pursuant to Section 4601. A certification filed pursuant to this subdivision is subject to the payment of the filing fee specified in Section 4604 and the payment of the penalties specified in paragraphs (1), (2), and (3) of this subdivision.
(1) The penalty for late payment of the registration fee provided in Section 9250 is as follows:
(A) For a delinquency period of 10 days or less, the penalty is ten dollars ($10).
(B) For a delinquency period of more than 10 days, to and including 30 days, the penalty is fifteen dollars ($15).
(C) For a delinquency period of more than 30 days, to and including 90 days, the penalty is thirty dollars ($30).
(2) The penalty on the weight fee and the vehicle license fee shall be computed after the weight fee as provided in Section 9400 or 9400.1 plus the vehicle license fee specified in Section 10751 of the Revenue and Taxation Code have been added together as follows:
(A) For a delinquency period of 10 days or less, the penalty is 10 percent of the fee.
(B) For a delinquency period exceeding 10 days, to and including 30 days, the penalty is 20 percent of the fee.
(C) For a delinquency period of more than 30 days, to and including 90 days, the penalty is 60 percent of the fee.
(3) Weight fees not reported and not paid within 20 days, as required by Section 9406, shall be assessed a penalty on the difference in the weight fee, as follows:
(A) For a delinquency period of 10 days or less, the penalty is 10 percent of the fee.
(B) For a delinquency period exceeding 10 days, to and including 30 days, the penalty is 20 percent of the fee.
(C) For a delinquency period of more than 30 days, to and including 90 days, the penalty is 60 percent of the fee.
(c) Notwithstanding any other law, a person who is subject to any penalty described in this section and has been determined to have a current income level that meets the eligibility requirements for assistance programs under Chapter 2 (commencing with Section 11200) or Chapter 3 (commencing with Section 12000) of Part 3 of, or Part 5 (commencing with Section 17000) of, or Chapter 10 (commencing with Section 18900), Chapter 10.1 (commencing with Section 18930), or Chapter 10.3 (commencing with Section 18937) of Part 6 of Division 9 of the Welfare and Institutions Code, shall not be required to pay the penalty in order to renew the registration of their vehicle and shall instead be authorized to delay payment of the penalty until after the vehicle is registered, but by no later than the expiration date of the vehicle’s registration. If the delayed penalty payment is not received by the expiration date of the vehicle’s registration, the person shall not be permitted to renew their registration for the following year until the penalty is paid.

(c)

(d) This section shall apply to registration renewals that expire on or after January 1, 2003.

SECTION 1.

This act shall be known, and may be cited, as the DMV AFFORD Act.

SEC. 2.

The Legislature finds and declares the following:

(a)The average cost of registering a vehicle in California has increased 66 percent over the past six years and is currently $289.

(b)Failure to register by the due date results in immediate late fees and penalties that increase over time. Once payment is delinquent for two years, the average registration of $289 more than doubles to over $600.

(c)According to the Franchise Tax Board, approximately 4,000,000 vehicle registration accounts become delinquent every year, and nearly 1,400,000 Californians annually face wage garnishment or the involuntary withdrawal of funds from their bank accounts to collect debt on behalf of the Department of Motor Vehicles.

(d)Vehicles with delinquent registrations may also be impounded and sold to collect the debt.

(e)Californians with delinquent registration fees remain liable for the debt through civil action even if they sell or transfer the vehicle.

(f)Evidence demonstrates that providing low-income Californians with a reduced debt payment option can actually increase the amount of revenue collected. An analysis of data from a recent amnesty program for traffic ticket debt by the Lawyers’ Committee for Civil Rights of the San Francisco Bay Area showed that the amnesty program collected over three times more delinquent debt per case than other criminal court-ordered delinquent debt collections.

(g)A one-time registration debt forgiveness program for low-income Californians would achieve all of the following:

(1)Provide protection to low-income individuals from wage garnishment, bank levies, and vehicle impoundment due to delinquent vehicle registrations.

(2)Provide increased revenue at a time when the Motor Vehicle Account is running an operating deficit by encouraging payment of old fees that have remained unpaid and are otherwise unlikely to be collected.

(3)Improve air quality by bringing currently unregistered vehicles back into compliance with the motor vehicle inspection and maintenance program, commonly known as the smog check program.

SEC. 3.Section 4611 is added to the Vehicle Code, to read:
4611.

(a)The Amnesty for Forgiveness of Registration Debt (AFFORD) program is hereby established as a one-time debt forgiveness initiative administered by the department for low-income individuals.

(b)The department shall accept, in full satisfaction of all delinquent registration fees, 20 percent of the total outstanding registration amount for any applicant if the following criteria are met:

(1)The applicant has been determined to have an eligible income level as described in subdivision (c) of Section 14902.

(2)The initial due date for payment of vehicle registration was on or before January 1, 2022.

(c)For eligible participants in the program, the department shall:

(1)Waive all applicable late fees and penalties imposed pursuant to Section 9554.

(2)Allow participants to file the certification described in subdivision (a) of Section 4604 later than 90 days after the registration expiration date and waive all applicable late fees and penalties imposed pursuant to Section 4604.5.

(3)Lift any registration holds imposed pursuant to Sections 4760 and 4770. The lifting of a registration hold imposed pursuant to Sections 4760 and 4770 does not waive any delinquent parking penalties, administration fees, or toll evasion penalties but the department shall not require payment of the penalties and fees as a condition of registration.

(4)Suspend any wage garnishments, bank levies, or offsets for the collection of delinquent registration fees and late penalties imposed pursuant to Section 10878 of the Revenue and Taxation Code or Section 12419.5 of the Government Code.

(d)Funds collected pursuant to this section shall be distributed in the same manner as a registration paid in full, with each individual charge reduced by an equivalent percentage.

(e)This section shall remain in effect only until January 1, 2026, and as of that date is repealed.