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Governor Vetoes Bill to Restore VLF Funds to Recently Incorporated Cities

September 20, 2012

Late Wednesday, Gov. Jerry Brown vetoed AB 1098 (Carter), a bill that would have restored approximately $18 million in vehicle license fees (VLF) to four recently incorporated cities in Riverside County, as well as various cities that had annexed inhabited areas after 2004.


The veto is a devastating blow to the recently incorporated cities that are heavily dependent on the VLF allocations that were eliminated by the passage of SB 89 of 2011.

The veto occurred after months of lobbying by city officials from Jurupa Valley, Wildomar, Menifee and Eastvale to explain their unique circumstances to the Governor’s office. 

In his brief veto message, the Governor raised issues reflective of opposition from the California State Association of Counties and individual counties that the bill would undermine the funding allocated for realignment.  There was no mention in his veto message of the severe difficulties faced by these recently incorporated communities, nor those communities that annexed inhabited areas consistent with state policies and with the expectation of continued VLF allocations.

The League argued in its request for signature letter that there would be a no negative impact on realignment funding due to a more than expected influx of funds for the Department of Motor Vehicles administration from a new $12 fee on vehicle registrations.

The League continues to await a ruling from the Sacramento Superior Court on the constitutionality of SB 89 of 2011 which should occur within the next few months.

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