HomeMy WebLinkAboutAB2601 - Vehicle License FeeREQUEST:
DATE:
CITY OF PALM DESERT
COMMUNITY SERVICES DEPARTMENT
STAFF REPORT
CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE ACTION
ON AB 2601 (BENOIT) AT ITS MEETING OF MARCH 25, 2008
April 10, 2008
CONTENTS: AB 2601 Language
RECOMMENDATION:
By Minute Motion, concur with the action taken by the Legislative Review Committee at its
meeting of March 25, 2008, and direct staff to prepare a letter of opposition for the Mayor's
signature with regard to AB 2601 (Benoit) relative to vehicle license fee.
BACKGROUND:
The Vehicle License Fee law establishes an annual license fee for vehicles subject to
registration. Under existing law, the State Controller is required to allocate VLF funds in the
Motor Vehicle License Fee Account in specified order to cities, counties, and cities and counties.
If passed, AB 2601 would require that VLF revenues not be allocated to cities but would state
the intent of the Legislature to create a specified fund in the State Treasury for the deposit of
VLF revenues for the purpose of providing grants to cities that would like additional law
enforcement training. Diversion of any funds due cities by the State not only removes local
control, but once again, appears to be an attempt to divert funding that is needed to provide law
enforcement, infrastructure, traffic, etc., services to its residents.
Therefore, the Legislative Review Committee recommends that the City Council oppose AB
2601 and direct staff to prepare a letter stating the position to appropriate LenisFators for the
May signature.
PATRICIA SCULLY, CFEE
SENIOR MANAGEMENT ANA(YST
PAUL GIBSON
DIRECTOR OF FINANCE/
CITY TREASURER
YSHEILA R. ILLIGAN 1 CARLOS L. OR
ACM/COMMUNITY SERVIC S CITY MANAGE
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AB 2601 Assembly Bill - INTRODUCED Page 1 of 1
I3iLL NUMBER: AB 2601 INTRODUCED
BILL TEXT
1NTRODUCED BY Assembl.y Member Bencit
FEBRUARY 2�, 2008
An act to add Section 11006 to the Revenue and Taxation Code,
reiatinq to '_ocal government finance.
LEGISLATIVE COUNSEL'S DIGEST
AB 2601, as introduced, Benoit. Local government fi.nance: vehicle
license fee revenues: sanctuary cities.
The Vehicle License Fee (VLF) Law establishes, in lieu of any ad
valorem property tax upon vehicles, an annual license fee for any
vehicle subject to registration i.n this state. Under ex.isting law,
the Controller is required to allocate VLF revenues in the Motor
Vehicle License Eee Account in a specified order to cities, counties,
and cities and counties.
TYiis bill would require that vehicle license fee revenues not be
allocated to any city that is declared to be a sanctuary city, as
defined. This bill would state the intent of the Leqislature to enact
legislation that would create a specified fund in the State
Treasury, for the deposit of VLF revenues that would otherwise be
allocated to a sanctuary city, for the purpose of providing grants to
cities that would like additional law enforcement training, as
specified.
Vote: majority. Appropriation: no. Fiscal cor,unittee: yes.
State-mandatea local program: rio.
':HE PFOPLE OF TEiE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 11006 is added to the Revenue and Taxation
Code, to read:
11006. (a) Any city that is declared to be a sanctuary city shall
not be allocated any vehicle license fee revenues.
(b) Vehicle license fee revenues that would otherwise be allocated
to a sa:�ctuary city shall be allocated equally to any city, county,
a:�d city and county that has not beer, decla�ed a sancc.uary city.
(c) It is the intent of the Legislature to enact �eqislation that
would create :�n the State Treasury, the Optional Local Immigration
F..nforcement Fund, for the deposit of vehicle license fee revenues
that would otherwise be al.located to a sanctuary city, for the
purpose of providing grants to cities that request additional law
enforcement tra.i.ning pursuant to subdivision (q) of Section 287 of
the federai Illegal Immigration Reform and Immigration Responsibility
Act.
(d) For purposes of this section, a "sanctuary city" means a city
that adopts a "don't ask, don't tell" policy, by not requiring their
emoloyees, includir�g law enforcement officers, to report to federal
officials aliens who may be illegally present in the city, or by not
reauiring ar. applicant who applies for a municipal identification
card to provide verification of. thei.r. immigration status.
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AB 2336 Assembly Bill - INTRODUCED Page 1 of 6
BI�L NUMBER: AE3 2336 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Nakanishi
FEBRUARY 21, 2008
An act to amend Sections 7085 and 7085.5 of the Business and
Professions Code, relating to contractors.
LEGISLATIVE COUNSEL'S DIGEST
AB 2336, as introduced, Nakanishi. Contractors: arbitration
procedures.
Existing law, the Contractors' State License Law, provides for the
licensing and regulation of contractors by the Contractors' State
I,icense Board in the Department of Consumer Affairs.
Existing law estab�ishes an arbitration process administered by
the board to resolve disputes between contractors and consumers.
Existinq law authorizes the registrar of contractors, after
investigating a complaint and finding a possible violation and witn
the concurrence of the licensee and the complainant, to refer the
alleged violation and complaint to arbitration if damages or
potential da:nages are greater than the amount of the licensing bond
required, but less than $50, 000.
This bill. would increase that amount to $100, 000.
Ur.der the arbitration process described above, existing law allows
an arbitrator to, at the arbitrator's sole discretion, make an
inspection of the construction site that is the subject of an
arbitration.
This bill would allow a licensee to have the project that is the
subject of an arbitration proceeding inspected by an expert, and
would require the complainant to allow f.or that inspection prior to
the hearing date.
Fxisting law also authorizes an arbitrator to grant any remedy or
relief that the arbitrator deems just and equitable and within the
scope of the board' s referral and the requirements of the board.
Lx;sting iaw authorizes the arbitrator, in his or her sole
disc�etion, to award costs or expe:�ses.
This bill would exclude attorney fees from those awardable costs
or expenses.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
TEI�' PEOPLE OF THE S'I'ATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7085 of the Business and Professions Code is
amended to read:
7085. (a) After investigating any verified complaint alleging a
violation of Section 7107, 7109, 7110, 7113, 7119, or 7120, and any
complaint arising from a contract involvinq works of improvement and
finding a possible violation, the registrar may, with the concurrence
of both the licensee and the complainant, refer. the alleged
violation, and any dispute between the licensee and the complainant
arising tnereunder, to arbitration pursuant to this arti.cle, provided
tf�e registrar finds that:
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AB 2336 Assembly Bill - INTRODUCED Page 2 of 6
(1) There is evidence that the complainant has suffered or is
likely tc suffer material damages as a result of a violation of
Section 7107, 7109, 7110, 7113, 7119, or 7120, and any complaint
arising from a contract involving works of improvement.
(2) There are reasonable grounds for the registrar to believe that
the public interest would be better served by arbitration than by
disciplinary action.
(3) The licensee does not have a history of repeated or similar
violations.
(4) The iicensee was in good standing at the time of the alleged
violation.
(5) The licensee does not have any outstanaing disciplinary
actions filed against tiim or her.
(6) ^'he parties have not previously agreed to private arb�tration
of the dispute pursuant to contract or otherwise.
(7) The parties have been advised of the provisions of Section
2855 of the Civil Code.
For the purposes of paragraph (1) , "material damages" means
damaqes greater than the amount of the bond required under
subdivision (a) of Section 7071 . 6, but less than —f�ft-p
one hundred thousand dollars—�5�-6$9-}-
(5100,G00) .
(b) In all cases in which a possible violation of the sections set
forth in paragraph {1) of subdivision (a) exists and the contract
price, or tne demand for damages is equal to or less than the amount
of the bond required under Section 7071. 6, but, regardless of the
contract orice, the complaint shall be referred to arbitration,
utilizir.g the criteria set forth in paragraphs (2) to (6) , incl.usive,
of s�abdivision (a) .
SF.C. 2. Section 7085. 5 of the Business and Professions Code is
a:tiended to read:
'10�5. 5. ArbitraLions of disputes arising out of cases filed with
or by the bcard shall be conducted in accordance with the following
rules:
(a) All "agreemerits to arbitrate" shall include the names,
addresses, and telephone numbers of the parties to the dispute, the
issue in dispute, and th� amount in dollars or any other remedy
sought. The appropriate fee shall be paid by the board from the
Con'ractors' License Eund.
(b) (] ) The board or appointed arbitra�iori associati.on shall
appoint an arb-trator in the following manner: immediately after the
Filing of tne ayreemer�t to arbitrate, �he board or appointed
arbitration association shall submit simultaneously to each party to
the dispute, an identical list of names of persons chosen f.rom the
panel. Each party to the dispute shall have seven days from the
mailina date in which to cross off any names to which it objects,
nu�,ber the remaining names to indicate the order of preference, and
return the list to the board or appointed arbitration associatior.. If
a party does not return the list within the time specified, all
persons named .in the list are acceptable. Frorn amonq the persons who
have been approved cn both lists, and in accordance w.ith the
designated order cf mutual preference, the board or appointed
arbitration association shall appoint an arbitrator to serve. If the
parties fail to agree on any of the parties named, if acceptable
arbitrators are unable to act, or if, for any other reason, the
appointment cannot be made from the submitted lists, the board or
appointed arbitration association shall have the power to make the
appointment from among other members of the panel without the
submission of any additional ] i.sts. F,acf� dispute sYiall. be heard ar.d
determined by one arbitrator unless the board or appointed
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AB 2336 Assembly Bill - INTRODUCED Page 3 of 6
arbitration association, in its discretion, directs that a greater
number of arbitrators be appointed.
(2) In all cases in which a complaint has been referred to
arbitration pursuant to subdivision (b) of Section 7085, the board or
the appointed arbitration association shall have the power to
appoint an arbitrator to hear the matter.
(3) The board shall adopt requlations setting minimum
qualification standards for listed arbitrators based upon relevant
training, experience, and performance.
(c) No person shall serve as an arbitrator in any arbi.tration in
which tnat person has any financial or personal interest in the
result of the arbitration. Prior to accepting an appointment, the
prospective arbitrator shall disclose any circumstances likely to
�revent a prompt hearing or to create a presumption of bias. Upon
receipt or that information, the board or appointed arbitration
association shall immediately replace the arbitrator or cornmunicate
the informa�ion to the parties for their comments. Thereafter, the
board or appointed arbitration association shall determine whether
the arbitrator should be disqualified and shall iniorm the parties of
its decision, which shall be conclusive.
(d) T'he board or aopointed arb.itration association may appoint
anettier arbitrator if a vacancy occurs, or if an appo:inted arbitrator
is unable to serve in a timely manner.
(e) (1; The board or appointed arbitration association shall
provide the parti.es with a list of the times and dates, and locations
of the hearing to be held. The parties shall notify the arbitrator,
within seven calendar days of the mailing of the list, of the times
ard dates convenient to each party. If the part�es fail to respond to
the arbitrator within the seven-day period, the arbitrator shall fix
the time, place, and location of the hearing. �fr
(A) An arbitrator may, at the
arbitrator's sole discretion, make an inspection of the construction
site -�riei�r- that is the subject of the
arbitration. 1'he arbitrator shall notify the parties of the time ard
date set for the inspection. Any party who so desires may be present
at the inspection.
(B) For cases in which the parties have aqreed to arbitrate
pursuant to subdivision (a) of Sec�ion 7085, the Iicensee may have
the project that is the subject of the arbitration proceedi.ng
ir�spected by an expert. The complainant shall a11ow for. the
i:�spection prior to the dat� of the hearinq.
(2) 'Pne board or appointed arbitration associati.on shall fix thc
time, place, and locaLion of the hearinq for ail cases referred to
arbitration pursuant to subdivision (b) of Scction 7085. An
arbitrator ;nay, at the arbitrator's sole discretion, make an
inspection of the construction site which is the subject of the
arbitration. The arbitrator shall notify the parties of the time and
date set for the inspection. Any party who desires may be present at
the inspection.
(fj Any person having a direct interest in the arbitration is
er.titled to attend ttie heari.ng. The arbitrator shall otherwise have
the power to require the exclusion of any witness, other than a party
cr other essential person, during the testimony of any other
witness. It shall be discretionary with the arbitrator to determine
the propriety of the attendance of any other person.
(g) Hearings shall be adjourned by the arbitrator only for good
cause.
(h) A record is not required to be taken of the proceedings.
However, any party to the proceeding may have a record macie at its
cwn expense. The parties may make appropriate notes o£ ttie
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AB 2336 Assembly Bill - INTRODUCED Page 4 of 6
proceedings.
(i) The hearing shall be conducted by the arbitrator in any manner
which will permit full and expeditious presentation of ttie case by
both parties. Consistent with the expedited nature of arbitration,
the arbitrator shall establish the extent of, and schedule f.or, the
production of relevant documents and other ir,formation, the
identification of any witnesses to be called, and a schedule for any
hearings to elicit facts solely within the knowledge of one party.
The complaining party shall present its claims, proofs, and
w.itnesses, who shall submit to questions or other examination. The
defending party shall then preser�t its defenses, proofs, and
witnesses, who shall submit to questions or other examination. The
arbitrator has discretion to vary this procedure but shall afford
full and equal opportunity to the parties for the p�esentation of any
material or relevant proofs.
(j) The arbitration may proceed in the absence of any party wno,
after due notice, fails to be pr�sent. The arbitrator shall require
the attending party to submit supporting evidence in order to make an
award. An award for the attending party shall not be based solely ori
the fact that the other party has failed to appear at the
arbitration hearing.
(k) The arbitrator shall be the sole judge of the relevancy and
materiality of the evidence offered and conformity to legal rules of.
evidence shall not be required.
() The arbitrator may receive and consider documentary evidence.
Documents to be considered by the arbitrator may be submitted prior
to the hearing. However, a copy shall be simultaneously transmitted
to all other parties and to the board or appointed arbitration
association for transmittal to the arbitrator or board appoir.ted
arb�trator.
(r�) The arbitrator shall specifically inquire of the parties
whether they have any further procfs to offer or witnesses to be
tleard. Upon receivi:�g negative replies, the arbitrator shal]. declare
tne hearinq closed and minutes thereof shall be recor.ded. If briefs
are �o be filed, the hearing shall be declared closed as of the final
date set by the arbitrator for the receipt of briefs. If documents
are to be filed as requested by the arbitrator and the date set for
their receipt is later than that set for the receipt of briefs, the
later date shail be the date of closing the hearings. The time l..imit
within which the arbitrator is required to make the award sha.11
commence to run, in the absence of. other agreer�er.ts by the parties,
upon ttie c'_osi.ng of the hearings.
;n) '�he Y�eari�g may be reopened on the arbitr.ator's own motior..
(o) Any party who proceeds with the arbitration after knowledge
that any provision or requirement of these rules has not been
complied with, and who fails to state his or her objections to the
arbitrator ir: writing, within 10 calendar days of close of hearing,
shall be deemed to have waived his or her right to object .
(p) (1) Except as provided in paragraph (2) , ar.y papers or process
necessary or proper for the initiation or continuatior. of an
arb'_tration under these rules and for any court action in connection
therewith, or for the entry of judgment on an award made thereurder,
may be served upon any party (A) by regular mail addressed to that
party or his or her attorney at the party's last known address, or
(B) by personal service.
(2) Notwithstanding paragraph (1) , in all cases referred to
arbitration pursuant to subdivision (b) of Section 7085 in whi.ch the
contractor fails or refuses to r.eturn an executed copy of the notice
to arbi.trate within the time specified, any papers or process
specified in paragraph (1) to be sent to the contractor, including
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AB 2336 Asscmbly Bill - INTRODUCED Pagc 5 of G
the notice of hearing, shail be mailed by certified mail to the
contractor's address of record.
(q; The award shall be made promptly by the arbitrator, and unless
otherwise aqreed by the parties, no later than 30 calendar days from
the date of closing the hearing, closinq a reopened hearing, or if
oral hearing '�as been waived, from the date of transmitting the final
statements and proofs to the arbitrator.
The arbitrator may for good cause extend any period of time
established by these rules, except the time for making the award. The
arbitrator shall notify the parties of any extension and the reason
�herefor.
(r) (1) 'Phe arbitrator may grant any remedy or relief that the
arbitrator deems just and equitabl.e and within the scope of. the board'
s referral and the requirements of the board. The arbitrator, in his
or her sole discr.etion, may award costs or expenses , excluding
attorney fees .
(2) Tne amendments made in paragraph (1) during the 2003-04
Reqular Session snall not be interpreted to prevent an arbitrator
from awarding a complainant all direct costs and expenses for the
completion or repair of the project.
(s) The award shall become final 30 calendar days from the date
the arbitration award is issued. The arbitrator, upon written
application of a party to the arbitration, may correct the award upon
the following grounds:
(1) There was an evident miscalculation of figures or an evident
mistake in the description of any person, things, or property
referred to in the award.
(2) There is any other clerical error in the award, not affecting
the merits of the controversy.
An app.lication for correction of the award shall be made within 10
calendar days of the date of service of the award by serving a copy
of the application on the arbitrator, and all other parties to the
a�bitration. Any party to the arbitration may make a wri.tten
ebject.Lon to the appiication for correction by serving a copy of the
written objection on the ar.bitrator, the boara, and all other parties
to the arbitration, within 10 calendar days of the date of service
of. the application for correction.
The arbitrator shall either deny the application or correct the
award within 30 calendar days of the date of service of the original
award by mailing a copy of the denial or correction to all parties to
the arbitration. Any appeal from the denial or correction shall be
£iled with a cvur� of competer�t jurisciictior� and a true copy thereof
s:�all be fi]ed with the arbitrator or appointed arbitration
assoc.iation w�th'_n 30 calendar days aCter the award has become fi.r.ai .
1'he award sha11 be in writing, and shall be signed by the arbitrator
or a majority of them. If no appeal is filed within the 30-calendar
day period, it shall become a final order of the registrar.
(t) Service of the award by certified mail shall be effective if a
certified letter containing the award, or a true copy thereof, is
mailed by the arbitrator or arbitration association to each party or
to a party's attorney of record at their last known address, address
of record, or by personally serving any party. Service may be proved
in the mar.r,er authorized in civil actions.
(u) The board shall pay the expenses of one expert witness
appo!nted by the board when the services of an expert witness are
requested by either party involved in arbitration pursuant to this
article and thc case involves workmanship issues that are itemized �n
the complaint and have not been repaired or replaced. Parties who
choose to present the findings of another expert witness as evidence
sl-:all pay for those services. Payment for expert witnesses appointed
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AB 2336 Assembly Bill - INTRODUCED Page 6 of 6
by the board shall be iimited to the expert witness costs for
ir.spection of the problem at the construction site, preparation of
the expert witness' report, and expert witness fees for appearing or
testifying at a hearing. All. requests for payment to an expert
witness shall be submitted on a form that has been approved by the
registrar. All requests for payment to an expert witness shall be
reviewed and approved by the board prior to payment. Tne registrar.
shall advise the parties that names of industry experts may be
obtained by requesting this information from the registrar.
(v) The arbitrator shall interpret and apply these rules insofar
as they relate to his or her powers and dutzes.
(w) 'Phe following shall apply as to court procedure and exclusion
of liability:
(1) The board, the appointed arbitration association, or any
arbitrator in a proceeding under these rules is not a necessary party
in judicial prcceedings reiating to the arbitration.
(2) Parties to tnese rules shall be deemed to have consented that
judgment upon the arbitration award may be entered in any federal or
state court having jurisdiction thereof.
(3) The board, the appointed arbitration association, or any
arbitrator is not liable to any party for any act or omission in
connection with any arbitration conducted under these rules.
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