The police chief in Oak Ridge, Tennessee received an all-expense paid vacation in Arizona, while collecting his on-duty salary, in return for his providing testimony that helped save Redflex Traffic Systems from paying millions in possible damages. The Australian firm came under fire after it was caught falsely claiming on customs forms that the radar units it had imported were certified by the Federal Communications Commission (FCC). From 1998 to 2008, every time Redflex turned on a mobile photo radar unit, it violated federal law. When a rival firm, American Traffic Solutions (ATS), discovered this fact, it blew the whistle in a federal court case, the first round of which wrapped up in the spring.

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The Grand Terrace, California city council on Tuesday reluctantly voted to pay Redflex Traffic Systems $72,203.75 after the Australian company threatened to impose a $27,500 late fee on the city if it did not pay up immediately. Redflex operates the red light camera program at two intersections, and as of July 1 the company had mailed out 4283 fines worth $446 each. While Grand Terrace officials expected that the system would be a money-maker, the program to date has only enriched the county, the state, the courts and Redflex, which insisted on the additional cash payment.

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The Michigan state House of Representatives yesterday voted unanimously to repeal its so-called driver responsibility fee program, an unpopular tax on traffic citations. State Representative Bettie C. Scott (D-Detroit) was the primary sponsor of legislation that will end most of the fees by January 1, 2012 and, before then, cut the amount motorists owe by half.

“Obviously we must do what it takes to keep our roads safe for all travelers, but driver responsibility fees place an onerous and unnecessary financial burden on too many Michigan drivers,” Scott said in a statement. “The Driver Responsibility Act is flawed legislation that has failed the test of time. It has unfairly penalized our hard-working residents during one of the worst financial crises we’ve ever seen.”

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Meter maids employed by a for-profit, foreign company are confronting motorists and seizing disabled parking permits at the direction of the city of West Hollywood, California. Earlier this month, officials announced a “crack down” on the abuse of restricted-use parking spaces by having meter maids determine whether the users of disabled parking permits are legitimately handicapped.

“Under a program initiated by the city of West Hollywood’s Parking Division, drivers displaying disabled placards may be randomly approached to provide proof of placard ownership,” a city press release explained. “Failure to provide the required identification card will result in the confiscation of the disabled placard and a parking citation for misuse, which carries a $500 fine.”

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Digging through the finances of a company as large as GM is never an easy task, especially when the balance book in question was recently wiped clean in a bailout-bankruptcy. Luckily, Bloomberg columnist Jonathan Weil has the chops to do the task justice, and he’s come up with a fascinating insight: through the power of an accounting tool known as “Goodwill,” Weil claims that GM has juiced its assets and liabilities during its “fresh start.” He notes with TTACian zeal:

It’s as if a $30.2 billion asset suddenly materialized out of thin air. In the upside-down world that is GM’s balance sheet, that’s exactly what happened.

The short version: GM undervalued some assets and overvalued some liabilities during its “fresh start.” The scary result: improvement in GM’s performance and creditworthiness could actually lead to writedowns on its Goodwill… which is currently The General’s largest non-current asset. Oh yes, and without that $30.2b in Goodwill, GM would have about an equity value of -$6.3b. Welcome to the new General Motors…
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In less than three years, officials in New South Wales, Australia have been forced to refund 18,944 faulty or illegally issued speed camera citations. Between July 2007 and May 2010, the state government has returned A$3,788,885 worth of citations issued by automated ticketing machines that were not operating properly, according to freedom of information documents obtained by the NSW Liberal Party, which used the figures to attack the party in power.

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The NY Times reports on a growing phenomenon: the crash tax. Though ambulance fees have long been born by those who use their services, Police, Fire Departments and other first responders in 26 states are reportedly charging users for their services, and they’re generating quite a bit of debate in the process. In one instance, Mr Cary Feldman of Chicago Heights was in an accident that he didn’t cause, did not use any emergency services, and was still billed $200 for the dispatch of a fire engine to the scene of his wreck. The AAA’s take on such fees

Generally, we see that public safety services are a core government function that should be properly budgeted for with general taxes and not addressed by fees after the fact

On the other hand, charging those who cause accidents for emergency response costs helps keep taxes lower for safe drivers and provides an incentive against reckless driving. So are fees worth the occasional misapplication, or are they an unfair tax on victims?

Fighting speed camera and red light camera tickets in federal court is becoming increasingly difficult as yet another US district court judge yesterday embraced the use of automated ticketing machines. Judge Nanette K. Laughrey dismissed the class action lawsuit that Gregory Mills had filed against the city of Springfield and Lasercraft, a private vendor that has since been bought out by American Traffic Solutions. Mills argued that because the Missouri Supreme Court in March struck down the city’s program as illegal (view decision), those who received tickets were entitled to a refund.

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The citizen-led groups that want the public to decide the future of red light cameras are racist, according to lawsuits filed by American Traffic Solutions (ATS) in a pair of Texas cities. The Arizona-based photo enforcement firm filed in a state court in Baytown on Thursday and then an ATS-funded front group filed an identical case in a federal court in Houston on Friday. Residents in both cities signed petitions placing a ban on automated ticketing machines onto the November 2 ballot, but ATS cites the landmark Voting Rights Act of 1965 as a reason to block these votes.

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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.

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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.

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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.

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Who pays for free parking? Everyone but the motorist.

That’s the thesis of UCLA professor of urban planning, Daniel Shoup’s new book The High Cost of Free Parking. Marginal Revolution blogger Tyler Cowen explains Shoup’s line of thinking in an NYT Op-Ed.

Many suburbanites take free parking for granted, whether it’s in the lot of a big-box store or at home in the driveway. Yet the presence of so many parking spaces is an artifact of regulation and serves as a powerful subsidy to cars and car trips. Legally mandated parking lowers the market price of parking spaces, often to zero. Zoning and development restrictions often require a large number of parking spaces attached to a store or a smaller number of spaces attached to a house or apartment block.

If developers were allowed to face directly the high land costs of providing so much parking, the number of spaces would be a result of a careful economic calculation rather than a matter of satisfying a legal requirement. Parking would be scarcer, and more likely to have a price — or a higher one than it does now — and people would be more careful about when and where they drove.

The subsidies are largely invisible to drivers who park their cars — and thus free or cheap parking spaces feel like natural outcomes of the market, or perhaps even an entitlement. Yet the law is allocating this land rather than letting market prices adjudicate whether we need more parking, and whether that parking should be free. We end up overusing land for cars — and overusing cars too. You don’t have to hate sprawl, or automobiles, to want to stop subsidizing that way of life.

Cowen points to San Francisco’s market-based parking meters as one potential solution for the waste and stealth subsidies of automotive overuse caused by free parking (which Shoup reckons amounts to a staggering $127b annual subsidy). But will market-based parking pricing be any more politically palatable than other green behavior-modification efforts like, say, a gas tax? On the other hand, if municipalities can get rid of speed cameras due to increased parking revenue, perhaps the compromise might be more worth it to motorists. Either way, one gets the feeling that the free parking phenomenon isn’t going to disappear overnight.

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.

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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.

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