#Taxes

A team of experienced class action lawyers is taking on California’s red light camera industry, and photo enforcement companies are expressing unease. Last month, the law firm of Pearson Simon Warshaw and Penny, LLP filed suit in San Mateo County Superior Court arguing that tickets issued throughout the Golden State since January 1, 2004 should be refunded where the photo enforcement contracts violated a state law mandating flat-rate compensation to companies like Redflex Traffic Systems. Redflex referred to the case as a particular business risk in an August 25 filing with the Australian Securities Exchange.

The California state Senate last week gave preliminary approval to legislation giving local governments the green light to install automated ticketing machines on street sweepers to generate parking tickets. The measure, introduced by state Assemblyman Steven C. Bradford (D-Gardena), passed in the lower chamber in April by a 49 to 24 vote. It would go to Governor Arnold Schwarzenegger (R) upon a final vote by the Senate and an Assembly vote to approving the upper chamber’s amendments. On Friday, the full legislature sent a related measure cracking down on municipalities that have been using an unauthorized civil fine system to bypass state traffic laws for speeding and red light camera tickets.

The California state Senate on Wednesday voted 63-11 to give final approval to a measure that will cut the fine for the most common type of red light camera violation in half. Under existing law, motorists who make safe, rolling right-hand turns at monitored intersections may receive a $500 bill in the mail from a private company operating on behalf of a municipality. In the past few years, the “California stop” at some locations have begun to account for up to 98 percent of automated ticketing machine citations.

Redflex Traffic Systems of today reported to the Australian Securities Exchange that it had rebuffed the $275 million offer from toll road giant Macquarie Bank for outright control of the company. The Australian red light camera maker believes that it can spark a bidding war to drive up the purchase price and enrich shareholders.

In December 2008, the city of Chicago, Illinois leased for 75 years its 36,000-space parking meter system to Chicago Parking Meters LLC. This firm, which is owned primarily by Morgan Stanley Infrastructure Partners, made a one-time, $1.16 billion up-front payment for the right to collect meter revenue for the life of the deal. By next year, Mayor Richard M. Daley will have spent the entire payment shoring up the budgets for 2010 and 2011.

The city of Mukilteo, Washington filed papers Monday hoping to thwart the attempt of a traffic camera company to deny residents the chance to vote on banning automated enforcement. Snohomish County Superior Court Judge Michael T. Downes on Friday will hear arguments in the case filed by an American Traffic Solutions (ATS)-funded front group to protect the company’s ticketing contract from the fate such agreements have shared in all ten cities where the public has forced a vote to toss out the cameras. The sponsors of Mukilteo’s initiative — Nicholas Sherwood, Alex Rion and Tim Eyman — filed a more comprehensive legal brief as intervenors tearing apart the ATS-backed case.

Red light cameras are becoming less popular among municipal leaders in California. On Monday, the Yucaipa city council voted unanimously to cancel its photo enforcement contract with Redflex Traffic Systems of Australia. The previous week, Costa Mesa officially pulled the plug on its automated ticketing machines.

Pennsylvania Governor Ed Rendell is struggling in his latest budget with the desire to spend more money while lacking tax revenue due to the economic recession. Nonetheless, the $28 billion budget for 2011 expends $200 million more than the previous year. Rendell yesterday testified before the state Senate Transportation Committee about how he intended to hit up motorists to make up much of that amount.

“If you did the increase in fees for inflation and the four cents at the pump — again, I think my idea is the best idea — but if you did that, you’ve got almost $100 million more,” Rendell testified. “If you did the InsureNet — that’s the plan with the cameras — the state would generate $75 million more.”

Toyota’s having some pretty rotten luck recently. First was “acceler-gate”, the mass hysteria of how Toyota cars were going out of control and murdering innocent people. Then came stories of people blaming Toyota cars for accidents, when in reality it was the driver’s fault (or in the case of Jim Sikes, a scam). You would have thought this would pour oil over troubled waters for Toyota, right? Nope. The malaise continued. Then came the public humiliation of the senate hearings. Did anybody in the media point out the conflict of interest for the senate? Well, if they did, nobody listened. So, while Toyota is fire fighting in North America and is having a bit of a rough time in Europe, at least things are OK in Australia. A market where Toyota dominated for 5 years. Well…

The South Carolina House of Representatives voted Thursday to make the state’s ban on photo radar explicit. In 2006, the office of the attorney general issued an opinion stating automated ticketing conflicted with state law, but Ridgeland officials decided to ignore the ruling and operate a speed camera van on Interstate 95. The town of 2500 wants to deploy cameras to ticket out-of-state drivers as they pass through the seven-mile stretch within the town’s limits.

The race for the Republican nomination for Alabama governor grew heated last week as a leading candidate faced questions over his involvement in a toll road deal. Tim James, 48, is running for the nod as a leading businessman and the son of former Governor Fob James, Jr. His opponent, Bradley Byrne, 55, is a former state senator and chancellor of the Alabama College System. Byrne and James traded verbal blows over the Foley Beach Express, a 13.5-mile four-lane route from the city of Foley to Orange Beach meant to bypass the congested Highway 59 for those willing to pay a $3.50 toll.

Sykesville, Maryland yesterday became the tenth jurisdiction to reject the use of photo enforcement by referendum. The town was to be the first in Carroll County to operate automated ticketing machines after leaders approved an ordinance designating three speed camera zones on February 22. These plans fell through after a group of residents collected more than enough signatures within the thirty-day deadline to put an ordinance repeal on the ballot. Sixty-one percent of Sykesville voters insisted on repealing the use of speed cameras.