- Reporters Desk
SACRAMENTO — On Aug. 14, Gov. Jerry Brown has signed into law, Assembly Bill 443.
The bill, authored by Assemblywoman Bonnie Lowenthal and sponsored by the City of Long Beach, aims to help to level the playing field for collecting parking citations.
It allows the California Department of Motor Vehicles to deny a vehicle transfer between family members if there are unpaid parking citations associated with the vehicle. AB 443 becomes effective Jan. 1, 2014.
Currently, registered owners of vehicles with unpaid parking citations can transfer their vehicle to a family member to evade paying the citations prior to renewing the vehicle’s registration. The vehicle transfer fee is $15 — much less than an overdue parking citation. AB 443 gives the state explicit authority to require payment for parking citations before transferring the vehicle in cases when the intended transfer is between family members.
Parking citation revenues are distributed to cities and counties, as well as state trial courts. Presently, the state receives $12.50 from each parking citation. Parking ticket citation collections becomes difficult after a delinquent registered owner transfers the vehicle to a new registered owner. This problem occurs in cities throughout California.
Long Beach has increased collections by modifying the collections billing process to allow additional time for citations to be paid before penalties are assessed. In addition, a final notice is generated as a reminder to the registered owner that the parking citation has not been paid and additional penalties and collection actions will be pursed. Delinquent parking citations are referred to the collection firm about 80 days from the citation issue date.
As a result, collection activity is now performed earlier by the collection firm to improve city revenues. The city has also engaged the use credit reporting. Parking citations that remain unpaid after numerous attempts to seek payment through notices and phone contact are now subjected to adverse credit reporting. Long Beach is also enrolled in the State Franchise Tax Board Tax Intercept Program. Customers that fail to respond to the warnings are eligible to have their income tax refunds intercepted by the City to be applied to outstanding fines and penalties.