A Win for Californians: DMV Stopped from Raising Rates

    SACRAMENTO, Calif.--June 21, 2002--Proposed Department of Motor Vehicles (DMV) regulations to raise fees to access public drivers license information was struck down today by the Superior Court after five insurance trade association representatives testified that there was no need for the proposed increase and that it would force large and small businesses statewide to pay an unconstitutional, hidden tax. The five associations represent companies that write more than 95 percent of insurance for all vehicles in California and must frequently access the DMV's public drivers license information.
    The hearing to stay the increase was held today before Superior Court Judge Gail Ohanesian. "This is a win for all Californians," said Gene Livingston, partner in the Livingston and Mattesich Law Corporation and counsel for the five trade associations.
    "In court today insurers pointed out that in 1997, a California State Auditor's report established that every electronic record request costs the DMV about 50 cents to process. Recent information disclosed by the DMV through a public records act request reveals that its cost is actually 13 cents per request," Livingston continued. The facts show that the DMV is already overcharging for MVR's, so raising the amount charged to commercial requesters to $4.00 would have made it a hidden tax that all auto insurance customers in the state would eventually have to pay," Livingston added.
    "Every day insurers in the State of California access thousands of MVR reports. We certainly are not saying that there should not be a reasonable fee for access to this information, however, to arbitrarily double the cost without substantial evidence of need is something that is harmful to the insurers and their policyholders," Livingston concluded.