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Driving-Under-the-Influence ProgramLicensing Fee Increase Effective July 1, 2022Report to the LegislatureMarch 2022Submitted by the Department of Health Care ServicesPursuant to the Requirements ofHealth and Safety Code Section 11837.5
Table of ContentsOverview . 1Background . 1Data Considerations Justifying Licensing Fee Increase . 2Methodology for Determining DUI Licensing Fees for Forthcoming Fiscal Year . 4Appendix A – Driving-Under-the-Influence Fund Condition Statement . 6Appendix B – Department of Motor Vehicles Management Information SystemDUI Arrest and Conviction Data . 7Appendix C – Licensed DUI Program Trends: Fiscal Year 2006-07 to Current . 8Appendix D – Definitions . 9
DUI Program Licensing Fee Increase Effective July 1, 20222022OverviewThe Driving-Under-the-Influence (DUI) Program Licensing Fee Increase Effective July 1, 2022report from the Department of Health Care Services (Department) provides an overview of theassets, liabilities, and balance in the DUI Program Licensing Trust Fund and justifies theDepartment’s increase to DUI Program licensing fees (See Appendix A). A report to the Legislatureis required, pursuant to Health and Safety Code (HSC) section 11837.5 (f) and (g), when theDepartment increases licensing fees for DUI programs.The intent of this report is to illustrate that sufficient revenues are not currently available in the DUIProgram Licensing Trust Fund and that the Department intends to increase its licensing feeassessed to DUI programs from 10 to 17 for each newly enrolled participant to support plannedDepartment expenses for DUI program licensing activities effective July 1, 2022.BackgroundHSC, Division 10.5, Chapter 9, Services to Persons Convicted for Driving While Under theInfluence of Alcohol or Other Drugs, Sections 11836 through 11838.11 requires the Department tolicense and provide administrative oversight of California DUI programs. As specified in the HSC,DUI programs operate primarily as non-profit, profit, or county run organizations. In addition, allDUI programs are required to be self-supporting through fees collected from program participants.The HSC states that the Department shall charge reasonable fees for licensing DUI programs, inan amount and manner sufficient to cover all administrative costs incurred by the Department. TheHSC also specifies that the Department is responsible for annually evaluating and determiningDepartment licensing fees based on its projected costs for the forthcoming fiscal year.The HSC specifies DUI program licensing fee collection procedures, which include the assessmentof fines, shall be defined in regulations. California Code of Regulations (CCR), Title 9, Section9822 states that the Department’s DUI program license fee shall be a set amount assessed foreach participant’s enrollment in the DUI program and paid to the Department quarterly in arrears.The Department receives DUI participant enrollment reports and correlating DUI licensing fees ona quarterly basis. While the Department does assess civil penalties based on identified programdeficiencies, penalty revenue is negligible and does not create a significant fluctuation in the DUIProgram Licensing Trust Fund.The Department is responsible for licensing three DUI program types, which currently consists of216 first-offender program licenses; 189 18-month program licenses; and 40 30-month programlicenses at 227 DUI facility locations and 17 satellite locations throughout California. State licensingprovides centralized leadership with regard to program standards, quality assurance, andcoordination. DUI program licenses are valid for two years following initial issuance and licenserenewal occurs thereafter provided the program is in good standing at the time of renewal.The Department has historically adjusted DUI Program licensing fees as necessary to account forrevenue surpluses and shortfalls in the DUI Program Licensing Trust Fund based on budgetexpenditure authority. The current licensing fee of 10 assessed to each DUI program for eachnewly enrolled participant has been in effect since Fiscal Year (FY) 2003-04.[1]
DUI Program Licensing Fee Increase Effective July 1, 20222022No report to the Legislature is required when licensing fees are unchanged or decreased. FY 1998-99: DUI Program licensing fee reduced from 14 to 12.FY 1999-00: DUI Program licensing fee reduced from 12 to 8.FY 2003-04 to current: DUI Program licensing fee increased from 8 to 10.Data Considerations Justifying Licensing Fee IncreaseThe number of DUI program enrollments is directly related to the number of DUI arrests andconvictions.California DUI Arrest and Convictions DataThe Department relies on the Department of Motor Vehicles (DMV) Annual ManagementInformation System (MIS) Report to the Legislature to obtain arrest and conviction data. The mostrecent report available to the Department is DMV’s 2020 MIS report which reflects declining arreststhrough 2017 and convictions through 2016 identifying a trending decline each year beginning in2007 (See Appendix B).Five-Year History of DUI Program Enrollment DataCCR, Title 9, specifies each DUI program is required to submit participant enrollment figures andsubsequent licensing fees to the Department on a quarterly basis. As reflected in Table 1,participant enrollments reported to the Department align with a trending decrease in reportedstatewide DUI arrests and convictions. A decrease in DUI program enrollments equates to aconsistent decrease in licensing fees deposited and available in the DUI Program Licensing TrustFund.TABLE 1. DUI PROGRAM PARTICIPANT ENROLLMENTS*ColumnFiscal fferenceFive-Year Span-27.35%*Columns A-E are actual enrollment figures based on quarterly enrollment reports received/finalized for eachrespective FY.DUI Program Licensing Trust Fund Revenue Deposits (Recent Two-Year History)Under normal circumstances, DUI Program Licensing Trust Fund annual revenue is reflected bythe Department’s current licensing fee multiplied by the number of participant enrollments in DUIprograms. Based on declining revenue in the DUI Program Licensing Trust Fund, and an overalltrending decrease in program enrollments, the Department began working on a licensing feeincrease in late 2019/early 2020. In response to the COVID-19 public health emergency (PHE), theDepartment paused the process.In addition to the economic hardships for individuals brought on by the PHE, many businesseswere also negatively impacted. While the Department worked to allow for delivery of virtual DUIprogram services where applicable, California licensed DUI programs experienced a substantialdecline in participant enrollments due to public health mandates for in person gatherings and courtcase backlogs, further impacting DUI programs and the DUI Program Licensing Trust Fund.Additionally, Senate Bill (SB) 601 (Morrell, Chapter 854, Statutes of 2019) went into effect onJanuary 1, 2020, which added Government Code section 11009.5 to authorize the Department to[2]
DUI Program Licensing Fee Increase Effective July 1, 20222022establish a process to reduce or waive any fees required to obtain a license, renew or activate alicense, or replace a physical license for display, when a business has been displaced, orexperiences economic hardship as a result of an emergency. Many DUI programs requested andreceived approval for fee waivers further compounding revenue shortfalls for the DUI ProgramLicensing Trust Fund for the 3rd and 4th quarter of FY 2019-20 and all four quarters of FY 2020-21.Table 2 illustrates FY 2019-20 DUI Program Licensing Trust Fund revenue expected to begenerated based on enrollment information received multiplied by the applicable 10 licensing fee,and the total licensing fees waived by the Department in accordance with SB 601.TABLE 2. FY 2019-20 DUI PROGRAM ENROLLMENTS AND LICENSING FEES*Participant EnrollmentsLicensing Fee per participant enrollment (current licensing fee)Licensing Fees Expected Based on EnrollmentsLicensing Fees Reduced/Waived (SB 601/COVID-19)Total Licensing Fees Received By DepartmentAMOUNT82,045 10 820,450( 100,170) 720,280*Participant enrollment information is obtained from quarterly enrollment reports submitted by DUI programs to theDepartment. Received reports are accompanied by corresponding licensing fee payments.Table 3 illustrates FY 2020-21 DUI Program Licensing Trust Fund revenue expected to begenerated based on enrollment information received multiplied by the applicable 10 licensing fee,and the total licensing fees waived by the Department in accordance with SB 601.TABLE 3. FY 2020-21 DUI PROGRAM ENROLLMENTS AND LICENSING FEES*Participant EnrollmentsLicensing Fee per participant enrollment (current licensing fee)Licensing Fees Expected Based on EnrollmentsLicensing Fees Reduced/Waived (SB 601/COVID-19)Total Licensing Fees Received By DepartmentAMOUNT78,794 10.00 787,940( 274,670) 513,270*Participant enrollment information is obtained from quarterly enrollment reports submitted by DUI programs to theDepartment. Received reports are accompanied by corresponding licensing fee payments.Historical DUI Department Licensing and Administrative OversightAlthough DUI arrests, convictions, and program enrollments have decreased over time directlyaffecting DUI Program Licensing Trust Fund revenues, the total number of licensed programservices have remained relatively stable over the same period (See Appendix C). The total numberof licensed DUI programs is influenced primarily by the amount of county and court jurisdictionsand geographical areas rather than participant enrollments. While the Department’s DUI ProgramLicensing Trust Fund revenues have endured a steady decline, its overall costs of fulfilling itslicensing mandates have not decreased, as the program monitoring workload aligns with number ofDUI licenses. Although there was a nominal cost savings initially realized by travel restrictions atthe onset of the PHE, the savings was insufficient to account for already declining revenuescoupled with state salary increases and general increases in standard state operating costs. DUIprogram staff continued virtual program monitoring activities while travel was restricted.Department on-site compliance reviews focus on regulatory compliance ensuring participants arecompleting program services required for the issuance of a completion certificate and ultimatelyreinstatement of their driver license. The Department routinely conducts analysis of program[3]
DUI Program Licensing Fee Increase Effective July 1, 20222022monitoring practices and other key functions to ensure oversight efficiency and effectiveness. Overtime, the Department has realized cost savings in some areas offset by rising costs in other areas.For example, DUI program reviews occurring in FY 2013-14 that took one full week, includingtravel, are currently accomplished in two or three days allowing for review of two programs eachweek when in close proximity to another program. Offsetting this cost savings is the Department’srequirement to ensure appropriate action is taken when programs are identified as havingsignificant deficiencies affecting participant services. In these instances technical assistance,program follow-up, and licensing actions when warranted influence DUI Program Licensing TrustFund revenues.DUI Program Licensing Trust Fund Expenditures and RevenuesThe Department’s Fund Condition Statement published in the 2021-22 State Budget (Appendix A),reflects the DUI Program Licensing Trust Fund continues to experience an overall decline in anavailable fund balance and that existing licensing fee revenue is not sufficient to support current orplanned expenses for the Department’s required role in DUI program licensing activities. With theFund Condition Statement reflecting point in time data, FY 2021-22 began with a carryover balanceof 195,000 after accounting for applicable adjustments. Declining DUI program enrollment trendsreflect raising DUI licensing fees is necessary effective July 1, 2022 to ensure sufficient funds areavailable for the Department to fulfill its DUI program licensing mandates, as licensing feescomprise the majority of revenue for the DUI Program Licensing Trust Fund.Methodology for Determining DUI Licensing Fees for Forthcoming Fiscal YearCCR, Title 9, Section 9822 states the Department shall determine the license fee annually, no laterthan April 30 of each year, in an amount sufficient to cover the projected costs of administering thelicensure of DUI programs for the forthcoming fiscal year.CCR, Title 9, Section 9822 further identifies the license fee shall be an amount for eachparticipant’s initial enrollment, determined by dividing the projected costs by the number ofparticipant enrollments and rounding up to the next dollar. Projected costs and participantenrollments used in the calculation shall be the total actual costs and enrollments, respectively, forthe most recent 12-month period for which both sets of data are available.While figures from FY 2020-21 would typically be used in the fee methodology for determining FY2022-23 licensing fees, the Department is using FY 2019-20 data because of the following impactsto FY 2020-21 that negatively affect the data’s efficacy: Personal Leave Program (PLP) impacting Department personnel service costs.Waiver of fee based on economic hardship.Reduced DUI program participants due to the stay at home orders and court backlogs.[4]
DUI Program Licensing Fee Increase Effective July 1, 20222022*TABLE 4. METHODOLOGY FOR DETERMINING FY 2022-23 DUI LICENSING FEES (TITLE 9)Projected Administrative Costs(By CCR, Title 9 definition: 12-month period of data available from FY 2019-20)Projected Participant Enrollments(By CCR, Title 9 definition: 12-month period of data available from FY 2019-20)Calculation (Costs divided by Enrollments)DUI Licensing Fees for FY 2022-2023 (Rounded up) 1,350,00082,04516.45 17*As specified in Title 9, projected costs and enrollments used in calculating the FY 2022-23 DUI licensing fees aredefined as total actual costs and enrollments for the most recent 12-month period for which both sets of data areavailable. (Although FY 2019-20 enrollment data was negatively impacted by COVID-19 in the last two quarters ofthat FY, the FY 2019-20 data is reflective of a more typical year than the data available for FY 2020-21)As specified in CCR, Title 9, Section 9822, the Department will provide DUI programs notice of theDUI license fee increase by April 30, 2022 in order for the increase to be effective beginning July1, 2022. The Department will evaluate the DUI program licensing fees again in FY 2022-23 todetermine if sufficient funds will be available in the DUI Program Licensing Trust Fund for thefollowing fiscal year, and if a subsequent licensing fee adjustment is warranted, based onavailable data.[5]
DUI Program Licensing Fee Increase Effective July 1, 2022Appendix ADriving-Under-the-Influence Licensing Trust Fund--Fund Condition Statement[6]2022
DUI Program Licensing Fee Increase Effective July 1, 2022Appendix BDepartment of Motor Vehicles Management Information System (MIS)2020 Report to the LegislatureArrest and Conviction Data (Excerpt)I.Arrest DataII.Conviction Data[7]2022
DUI Program Licensing Fee Increase Effective July 1, 2022Appendix CLicensed DUI Program TrendsInformation obtained from Oracle DUI Database. (First Offender Program-FOP)[8]2022
DUI Program Licensing Fee Increase Effective July 1, 20222022Appendix DDefinitionsDriving-Under-the-Influence Program or Program. “Driving-Under-the-Influence Program”,“DUI program”, or “program”, or “licensee” means a firm, partnership, association, corporation, orlocal governmental agency, which has been recommended by the county board of supervisorsand subsequently licensed by the Department, to provide alcohol and other drug education andcounseling services to anyone:(A) Whose license to drive has been administratively suspended or revoked inaccordance with Section 13353.2 of the Vehicle Code;(B) Who has been convicted for violating Sections 23103.5, 23152 or 23153 of theVehicle Code; or(C) Who has been convicted for operating a vessel, water skis, aquaplane, orsimilar device in violation of Section 655(b), (c), (d), (e), or (f) of the Harbors andNavigation Code.Driving-Under-the-Influence “Driving-Under-the-Influence”, or “DUI”, means:(A) Driving a motor vehicle in violation of Sections 23103.5, 23140, 23152 and23153 of the Vehicle Code; or(B) Operating a vessel, water skis, aquaplane, or similar device in violation ofSection 655(b), (c), (d), (e), or (f) of the Harbors and Navigation Code.Fiscal Year “Fiscal Year” means the 12-month period beginning on July 1 and ending on June30 the following year.Participant “Participant” means any person participating in a DUI program. The term“participant” is used generically wherever standards apply to both the first offender and themultiple offender.Program Fee “Program Fee” means a fee charged to the participant by the program for programservices required.[9]
DUI Program Licensing Fee Increase Effective July 1, 2022 202 2 [2] No report to the Legislature is required when licensing fees are unchanged or decreased. FY 1998-99: DUI Program licensing fee reduced from 14 to 12 . FY 1999-00: DUI Program licensing fee reduced from 12 to 8.
