Under existing law, the Department of Motor Vehicles issues environmental and other specialized license plates. The issuance of some of those license plates is subject to additional fees. Existing law prohibits the department from establishing a specialized license plate program for a state agency until the department has received not less than 7,500 applications for the plates within 12 months after the date of the departments approval of the agencys initial application to sponsor a specialized license plate program. Existing law requires the State Department of Health Care Services to apply to the department, pursuant to those provisions, to sponsor a breast cancer awareness license plate program, pursuant to which the Department of Motor Vehicles is required to issue specialized license plates, if the State Department of Health Care Services complies with the applicable requirements.

This bill would authorize the State Department of Health Care Services to contact the department by September 5, 2016, and indicate its intent to undertake collection of additional applications and fees or deposits for an additional period of 12 months in order to obtain the minimum 7,500 applications for a special license plate the State Department of Health Care Services is seeking to sponsor pursuant to existing law.

This bill would declare that it is to take effect immediately as an urgency statute.

Under existing law, the Department of Motor Vehicles issues environmental and other specialized license plates. The issuance of some of those license plates is subject to additional fees. Existing law prohibits the department from establishing a specialized license plate program for a state agency until the department has received not less than 7,500 applications for the plates within 12 months after the date of the departments approval of the agencys initial application to sponsor a specialized license plate program. Existing law requires the State Department of Health Care Services to apply to the department, pursuant to those provisions, to sponsor a breast cancer awareness license plate program, pursuant to which the Department of Motor Vehicles is required to issue specialized license plates, if the State Department of Health Care Services complies with the applicable requirements.

This bill would authorize the State Department of Health Care Services to contact the department by July 1, September 5, 2016, and indicate its intent to undertake collection of additional applications and fees or deposits for an additional period of 12 months in order to obtain the minimum 7,500 applications for a special license plate the State Department of Health Care Services is seeking to sponsor pursuant to existing law.

This bill would declare that it is to take effect immediately as an urgency statute.

Under existing law, the Department of Motor Vehicles issues environmental and other specialized license plates. The issuance of some of those license plates is subject to additional fees. Existing law prohibits the department from establishing a specialized license plate program for a state agency until the department has received not less than 7,500 applications for the plates within 12 months after the date of the departments approval of the agencys initial application to sponsor a specialized license plate program. Existing law requires the State Department of Health Care Services to apply to the department, pursuant to those provisions, to sponsor a breast cancer awareness license plate program, pursuant to which the Department of Motor Vehicles is required to issue specialized license plates, if the State Department of Health Care Services complies with the applicable requirements.

This bill would authorize the State Department of Health Care Services to contact the department by July 1, 2017, 2016, and indicate its intent to undertake collection of additional applications and fees or deposits for an additional period of 12 months in order to obtain the minimum 7,500 applications for a special license plate the State Department of Health Care Services is seeking to sponsor pursuant to existing law.

Under existing law, the Department of Motor Vehicles licenses and regulates vehicle registration services. Existing law requires an applicant for a license to be a registration service, or for the renewal of that license, to submit to the department a bond in the amount of $25,000.

This bill would make a technical, nonsubstantive change to those provisions.

GOVERNOR'S VETO

GV Bill Id:AB 2469

Author:(Frazier)

As Enrolled Ver:August 16, 2016

2/3 vote

Original Committee Reference: TRANS.

SUMMARY: Authorizes the California Department of Health Care Services (DHCS) until September 5, 2016, to indicate its intention to extend the period to collect applications for its specialized license plate program by an additional 12 months, without offering applicants refunds on their deposits. This bill contains an urgency clause.

EXISTING LAW:

1. Allows any state agency to apply to Department of Motor Vehicles (DMV) to sponsor a specialized license plate program and requires DMV to issue specialized license plates for that program if the agency complies with all statutory requirements.
2. Prohibits DMV from establishing a specialized license plate program for an agency until it has received not less than 7,500 paid applications for that agency's specialized license plates.
3. Requires the agency, if 12 months have elapsed since the approval of the agency's initial application to sponsor a specialized license plate program without receiving the required number of applications, to either:
4. Refund to all applicants all fees or deposits that have been collected; or,
5. Contact DMV to indicate the agency's intent to undertake collection of additional applications for an additional 12 month period and contact each applicant who has submitted an application to determine if the applicant wishes a refund of fees or deposits or requests the continuance of the holding of the application and fees or deposits until the agency has received 7,500 applications.
6. Requires funds accruing to a sponsoring state agency from the sale of specialized license plates to be expended exclusively for projects and programs that promote that agency's official policy, mission, or work.
7. Requires DHCS to apply to the DMV to sponsor a breast cancer awareness specialized license plate, as specified.

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.

COMMENTS: Prior to 2007, any new specialized license plate required specific legislative authorization. That practice was held to be unconstitutional by the federal courts, as the Legislature approved some plates and rejected others, without using any standardized or objective criteria for those decisions. In response to the court decision, AB 84 (Leslie), Chapter 454, Statutes of 2006, established the current specialized license plate program to provide a forum for government speech that promotes California's state policies. AB 84 excludes private organizations from seeking specialized license plates as a forum for private speech, and thus addresses the court's objection. The current specialized license plate program permits a state agency to initiate the development of a new specialized plate without additional legislation.

Plates created under the current program and the revenue they generate must publicize or promote a state agency, or the official policy, mission, or work of a state agency. Furthermore, the process requires that at least 7,500 paid applications must be received by the state agency prior to notifying DMV. This 7,500-application threshold was previously put into statute to ensure that DMV's startup costs would be fully covered by the portion of the registration fee surcharge that is directed to DMV and to avoid a proliferation of different types of plates.

Existing law authorizes a sponsoring agency to extend the period to collect the needed number of applications by another 12 months, if it contacts both DMV to indicate its intention to continue collecting applications, and each applicant who has already submitted a deposit to determine if they wish to remain on the list of applicants or receive a refund and be removed from the list.

AB 49 (Buchanan), Chapter 351, Statutes of 2014, required DHCS to apply to sponsor a breast cancer awareness specialized license plate program, with revenues from the program being deposited in the Breast Cancer Control Account in the Breast Cancer Fund.

Proponents of AB 49, and of this specialized license plate program, have yet to reach the required number of applicants, and wish to extend the deadline by another 12 months without having to offer each applicant a refund. It is unclear if the proponents of the plate will be able to acquire the necessary number of applicants by the end of the initial 12-month period, or by the end of an additional 12-month period if some applicants remove themselves from the list.

This bill would authorize DHCS to obtain a 12-month extension to finish collecting the needed 7,500 applications without having to contact each applicant and offer them a refund.

According to the author, allowing DHCS to focus on acquiring new applications instead of offering refunds to current applicants will expedite their goal of reaching the necessary 7,500 applications needed to increase breast cancer awareness and funding.

The Legislature has previously granted extensions to agencies for up to 36 months, allowing sponsors to successfully acquire the number of applications needed to produce new plates.

Please see the policy committee analysis for full discussion of this bill.

GOVERNOR'S VETO MESSAGE:

This bill would authorized the Department of Health Care Services to request an additional year to collect a minimum of 7,500 applications to qualify a breast cancer awareness specialized license plate without notifying existing applicants of the extension or their option to cancel their order and receive a refund.

Since the department has already requested an extension and notified existing applicants of their option to request a refund, I believe this bill is unnecessary.

Analysis Prepared by: Justin Behrens / TRANS. / (916) 319-2093 FN: 0004987

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 2469

Author:(Frazier)

As Amended Ver:August 2, 2016

2/3 vote. Urgency

Original Committee Reference: TRANS.

SUMMARY: Authorizes the California Department of Health Care Services (DHCS) to collect applications for a specialized license plate program for an additional 12-month period, without offering applicants refunds on their deposits. This bill contains an urgency clause.

The Senate amendments allow DHCS until September 5, 2016, to contact the Department of Motor Vehicles (DMV) and indicate its intention to extend the application period for its specialized license plate program.

EXISTING LAW:

1. Allows any state agency to apply to DMV to sponsor a specialized license plate program and requires DMV to issue specialized license plates for that program if the agency complies with all statutory requirements.
2. Prohibits DMV from establishing a specialized license plate program for an agency until it has received not less than 7,500 paid applications for that agency's specialized license plates.
3. Requires the agency to collect and hold applications for the plates. Once the agency has received at least 7,500 applications, it must submit the applications to DMV.
4. Requires the agency, if twelve months have elapsed since the approval of the agency's initial application to sponsor a specialized license plate program without receiving the required number of applications, to either:
5. Refund to all applicants all fees or deposits that have been collected; or,
6. Contact DMV to indicate the agency's intent to undertake collection of additional applications for an additional 12 month period and contact each applicant who has submitted an application to determine if the applicant wishes a refund of fees or deposits or requests the continuance of the holding of the application and fees or deposits until the agency has received 7,500 applications.
7. Requires funds accruing to a sponsoring state agency from the sale of specialized license plates to be expended exclusively for projects and programs that promote that agency's official policy, mission, or work.
8. Requires DHCS to apply to the DMV to sponsor a breast cancer awareness specialized license plate, as specified.

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.

COMMENTS: Prior to 2007, any new specialized license plate required specific legislative authorization. That practice was held to be unconstitutional by the federal courts, as the Legislature approved some plates and rejected others, without using any standardized or objective criteria for those decisions. In response to the court decision, AB 84 (Leslie), Chapter 454, Statutes of 2006, established the current specialized license plate program to provide a forum for government speech that promotes California's state policies. AB 84 excludes private organizations from seeking specialized license plates as a forum for private speech, and thus addresses the court's objection. The current specialized license plate program permits a state agency to initiate the development and sponsorship of a specialized plate, thus no additional legislation is required to authorize the creation of a new plate.

Plates created under the current program and the revenue they generate must publicize or promote a state agency, or the official policy, mission, or work of a state agency. Furthermore, the process requires that at least 7,500 paid applications must be received by the state agency prior to notifying DMV. This 7,500-application threshold was previously put into statute in an attempt to ensure that DMV's startup costs would be fully covered by the portion of the registration fee surcharge that is directed to DMV and to avoid a proliferation of different types of plates, which can be troublesome from a law enforcement perspective.

Existing law authorizes a sponsoring agency to extend the period to collect the needed number of applications by another 12 months, if it contacts both DMV to indicate its intention to continue collecting applications, and each applicant who has already submitted a deposit to determine if they wish to remain on the list of applicants or receive a refund and be removed from the list.

AB 49 (Buchanan), Chapter 351, Statutes of 2014, required DHCS to apply to sponsor a breast cancer awareness specialized license plate program, with revenues from the program being deposited in the Breast Cancer Control Account in the Breast Cancer Fund.

Proponents of AB 49, and of this specialized license plate program, have yet to reach the required number of applicants, and wish to extend the deadline by another 12 months without having to offer each applicant a refund. It is unclear if the proponents of the plate will be able to acquire the necessary number of applicants by the end of the initial 12-month period, or by the end of an additional 12-month period if some applicants remove themselves from the list.

This bill would authorize DHCS to obtain a 12-month extension to finish collecting the necessary 7,500 applications, without requiring the department to contact each applicant who has submitted an application to determine if they wish to remain on the list or receive a refund and be removed from the list.

According to the author, allowing DHCS to focus on acquiring new applications instead of offering refunds to current applicants will expedite their goal of reaching the necessary 7,500 applications needed to increase breast cancer awareness and funding.

The Legislature has previously granted additional extensions to sponsoring agencies beyond the standard 24 months, up to 36 months, allowing the sponsors to successfully acquire the necessary number of applications and trigger production of the plates.

Please see the policy committee analysis for full discussion of this bill.

Analysis Prepared by: Justin Behrens / TRANS. / (916) 319-2093 FN: 0003783

 CONSENT  

Bill No: AB 2469

Author:

:

Vote:

SENATE TRANS. & HOUSING COMMITTEE: 11-0, 6/21/16

AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva, McGuire, Mendoza, Roth, Wieckowski

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 76-0, 4/28/16 (Consent) - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST: This bill authorizes the California Department of Health Care Services (DHCS) to collect applications for a specialized license plate program for an additional 12-month period, without offering applicants refunds on their deposits. This bill contains an urgency clause.

ANALYSIS:

Existing law:

1. Allows any state agency to apply to DMV to sponsor a specialized license plate program.
2. Requires DMV to issue specialized license plates for that program if the agency complies with all statutory requirements.
3. Prohibits DMV from establishing a specialized license plate program for an agency until it has received not less than 7,500 paid applications for that agency’s specialized license plates.
4. Requires the agency to collect and hold applications for the plates. Once the agency has received at least 7,500 applications, it must submit the applications, along with the necessary fees, to DMV.
5. Prohibits advance payment to DMV of its estimated or actual administrative costs associated with the issuance of a particular specialized license plate from constituting compliance with the 7,500-application threshold requirement.
6. Requires the agency, if 12 months have elapsed since the approval of the agency’s initial application to sponsor a specialized license plate program without receiving the required number of applications, to either:
7. Refund to all applicants all fees or deposits that have been collected.
8. Contact DMV to indicate the agency’s intent to undertake collection of additional applications for an additional 12-month period and contact each applicant who has submitted an application to determine if the applicant wishes a refund of fees or deposits or requests the continuance of the holding of the application and fees or deposits until the agency has received 7,500 applications.
9. Requires funds accruing to a sponsoring state agency from the sale of specialized license plates to be expended exclusively for projects and programs that promote that agency’s official policy, mission, or work.
10. Allows specialized license plates to feature a distinctive design, decal, or distinctive message in a two-inch by three-inch space to the left of the plate’s numerical sequence and a space not larger than 5/8-inch in height below the numerical series.
11. Requires DHCS to apply to the DMV to sponsor a breast cancer awareness specialized license plate, as specified.

This bill authorizes DHCS to collect applications for a specialized license plate program for an additional 12-month period, without offering applicants refunds on their deposits.

Comments

1. Purpose. The purpose of this bill is to extend the time in which DHCS can accept applications for the breast cancer awareness license plate program by up to 12 months. Without this bill, DHCS will stop accepting applications on September 5, 2016, and begin the process of refunding application fees.
2. History of special-interest license plates. Historically, the Vehicle Code required the DMV to issue, upon legislative authorization, a special-interest license plate bearing a distinctive design or decal of a sponsoring organization to any vehicle owner that pays specified fees, provided that the sponsoring organization met certain conditions. These conditions included that the sponsor of a special-interest license plate had to be a nonprofit organization and had to collect 7,500 applications and fees for a special license plate in order to pay DMV’s costs of creating a new plate, which is approximately $375,000 or 7,500 applications times the $50 fee.

In 2004, a federal court decision, Women’s Resource Network v. Gourley, E.D. Cal 2004, F.Supp.2d, 2004 U.S. Dist., invalidated these provisions of the Vehicle Code. In the Gourley decision, the court declared California’s special-interest license plate statutes unconstitutional because they violated the First Amendment right to freedom of speech. The court specifically objected to the Legislature “picking and choosing” special license plates that private organizations propose, in essence promoting the message of some organizations while denying this right to others. The court did allow the 10 special-interest license plates existing at the time of its decision to remain in use and available to new applicants, as they are today.

In response to the court decision, AB 84 (Leslie, Chapter 454, Statutes of 2006) established the current specialized license plate program to provide a forum for government speech that promotes California’s state policies. AB 84 excludes private organizations from seeking specialized license plates as a forum for private speech and thus addresses the court’s objection. Newly created plates and the revenue they generate must publicize or promote a state agency or the official policy, mission, or work of a state agency.

1. History of the breast cancer awareness specialty license plate. AB 49 (Buchanan, Chapter 351, Statutes of 2014) required DHCS to apply to sponsor a breast cancer awareness specialized license plate program, with revenues from the program being deposited in the Breast Cancer Control Account in the Breast Cancer Fund. The DMV began collecting pre-paid applications for that plate through a Web site, pinkplate.org. As of mid-April 2016, the DMV indicates that the DHCS has collected 2,116 applications. In early August the pinkplate.org Web site updated that number to 2,645. Either way, given historic application rates, it is unlikely that 7,500 pre-paid applications will be received even with the extended application date proposed by this bill unless some significant and sustained marketing effort is planned.

Specialized plates typically fail to obtain sufficient applications to meet the threshold of 7,500. Of the 12 legislatively sponsored plates approved since 2000, only two have met the threshold.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 8/3/16)

Susan G. Komen California Collaborative

OPPOSITION: (Verified 8/3/16)

None received

ASSEMBLY FLOOR: 76-0, 4/28/16

AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon

NO VOTE RECORDED: Chávez, Daly, Mathis, Olsen

Prepared by:

8/3/16 19:00:49

**** END ****

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2015 - 2016 Regular

Bill No: Hearing Date: 6/21/2016

SUBJECT:

DIGEST: This bill authorizes the California Department of Health Care Services (DHCS) to collect applications for a specialized license plate program for an additional 12-month period, without offering applicants refunds on their deposits. This bill contains an urgency clause.

ANALYSIS:

Existing law:

1. Allows any state agency to apply to DMV to sponsor a specialized license plate program.
2. Requires DMV to issue specialized license plates for that program if the agency complies with all statutory requirements.
3. Prohibits DMV from establishing a specialized license plate program for an agency until it has received not less than 7,500 paid applications for that agency’s specialized license plates.
4. Requires the agency to collect and hold applications for the plates. Once the agency has received at least 7,500 applications, it must submit the applications, along with the necessary fees, to DMV.
5. Prohibits advance payment to DMV of its estimated or actual administrative costs associated with the issuance of a particular specialized license plate from constituting compliance with the 7,500-application threshold requirement.
6. Requires the agency, if 12 months have elapsed since the approval of the agency’s initial application to sponsor a specialized license plate program without receiving the required number of applications, to either:
7. Refund to all applicants all fees or deposits that have been collected
8. Contact DMV to indicate the agency’s intent to undertake collection of additional applications for an additional 12-month period and contact each applicant who has submitted an application to determine if the applicant wishes a refund of fees or deposits or requests the continuance of the holding of the application and fees or deposits until the agency has received 7,500 applications
9. Requires funds accruing to a sponsoring state agency from the sale of specialized license plates to be expended exclusively for projects and programs that promote that agency’s official policy, mission, or work.
10. Allows specialized license plates to feature a distinctive design, decal, or distinctive message in a two-inch by three-inch space to the left of the plate’s numerical sequence and a space not larger than 5/8-inch in height below the numerical series.
11. Requires DHCS to apply to the DMV to sponsor a breast cancer awareness specialized license plate, as specified.

This bill authorizes DHCS to collect applications for a specialized license plate program for an additional 12-month period, without offering applicants refunds on their deposits.

COMMENTS:

1. Purpose. The purpose of this bill is to extend the time in which DHCS can accept applications for the breast cancer awareness license plate program by up to 12 months. Without this bill, DHCS will stop accepting applications on July 21, 2016, and begin the process of refunding application fees.
2. History of special-interest license plates. Historically, the Vehicle Code required the DMV to issue, upon legislative authorization, a special-interest license plate bearing a distinctive design or decal of a sponsoring organization to any vehicle owner that pays specified fees, provided that the sponsoring organization met certain conditions. These conditions included that the sponsor of a special-interest license plate had to be a nonprofit organization and had to collect 7,500 applications and fees for a special license plate in order to pay DMV’s costs of creating a new plate, which is approximately $375,000 or 7,500 applications times the $50 fee.

In 2004, a federal court decision, Women’s Resource Network v. Gourley, E.D. Cal 2004, F.Supp.2d, 2004 U.S. Dist., invalidated these provisions of the Vehicle Code. In the Gourley decision, the court declared California’s special-interest license plate statutes unconstitutional because they violated the First Amendment right to freedom of speech. The court specifically objected to the Legislature “picking and choosing” special license plates that private organizations propose, in essence promoting the message of some organizations while denying this right to others. The court did allow the 10 special-interest license plates existing at the time of its decision to remain in use and available to new applicants, as they are today.

In response to the court decision, AB 84 (Leslie, Chapter 454, Statutes of 2006) established the current specialized license plate program to provide a forum for government speech that promotes California’s state policies. AB 84 excludes private organizations from seeking specialized license plates as a forum for private speech and thus addresses the court’s objection. Newly created plates and the revenue they generate must publicize or promote a state agency or the official policy, mission, or work of a state agency.

1. History of the breast cancer awareness specialty license plate. AB 49 (Buchanan, Chapter 351, Statutes of 2014) required DHCS to apply to sponsor a breast cancer awareness specialized license plate program, with revenues from the program being deposited in the Breast Cancer Control Account in the Breast Cancer Fund. The DMV began collecting pre-paid applications for that plate through a website, pinkplate.org. As of mid-April 2016, the DMV indicates that the DHCS has collected 2,116 applications. A recent check of the pinkplate.org website updates that number to 2,400. Either way, given historic application rates, it is unlikely that 7,500 pre-paid applications will be received even with the extended application date proposed by this bill unless some significant and sustained marketing effort is planned.

The failure of specialized plates to obtain 7,500 pre-paid applications is common. Of the 12 legislatively sponsored plates approved since 2000, only two have met the threshold.

Related Legislation:

AB 49 (Buchanan, Chapter 351, Statutes of 2014) — requires DHCS to apply to sponsor a breast cancer awareness specialized license plate program, with revenues from the program being deposited in the Breast Cancer Control Account in the Breast Cancer Fund.

Assembly Votes

Floor: 76-0

Appr: 16-0

Trans: 16-0

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

POSITIONS: (Communicated to the committee before noon on Wednesday,

June 15, 2016.)

SUPPORT:

Susan G. Komen California Collaborative

OPPOSITION:

None received

-- END --

Date of Hearing: April 20, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 2469

Author:(Frazier) – As Amended Ver:March 29, 2016

Urgency: Yes State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill authorizes the Department of Health Care Services (DHCS)—in order to meet the minimum 7,500-application threshold to implement a previously-authorized specialized license plate program promoting breast cancer awareness—to collect applications for an additional 12-month period without first offering existing applicants refunds on their license plate deposits.

FISCAL EFFECT:

To the extent DHCS is able to collect 7,500 applications, there will be avoided administrative costs from not having to contact existing applicants and providing refunds. If DHCS is unable to collect 7,500 applications even with the 12-month extension, the department will incur additional administrative costs to provide refunds to the additional applications received during the 12-month extension. In either case, these costs or savings should be minor.

The DMV incurs one-time special fund costs of approximately $400,000 to establish any new specialized license plate program, including computer programming changes and updating of forms. These costs, however, were already attributed to the original authorizing legislation for the breast cancer awareness specialized license plate program.

COMMENTS:

1. Specialized License Plates. Prior to 2007, any new special interest license plate required specific legislative authorization. This practice was held to be unconstitutional in that the Legislature approved some of the plates, and rejected others, using no standardized or objective criteria for those decisions. Pursuant to AB 84 (Leslie)/ Chapter 91 of 2006, the DMV will issue specialized license plates when sponsored by a state agency, the plate's message and resulting revenues support that agency's program, and at least 7,500 paid license applications have been received. The 7,500-application threshold attempts to assure that DMV's startup costs are fully covered, by the portion of the registration fee surcharge directed to the department, and to avoid a proliferation of different types of plates, which can be troublesome from a law enforcement perspective.

If the sufficient applications are not received to meet the 7,500-application threshold within 12 months, current law authorizes a sponsoring agency to extend application collection by another 12 months if it notifies the DMV and contacts each applicant who has already submitted a deposit to determine if they wish to remain on the list of applicants or receive a refund and be removed from the list.

1. Purpose. AB 49 (Buchanan), Chapter 351, Statutes of 2014, required DHCS to apply to sponsor a breast cancer awareness specialized license plate program, with revenues from the program being deposited in the Breast Cancer Control Account in the Breast Cancer Fund. Proponents of this specialized license plate program have yet to reach the required number of applicants, and wish to extend the deadline by another 12 months without having to offer each applicant a refund.

According to the author, allowing DHCS to focus on acquiring new applications instead of offering refunds to current applicants will expedite their goal of reaching the 7,500 applications needed to increase breast cancer awareness and funding. This bill contains an urgency clause, allowing DHCS and the plate proponents to immediately work to secure more signatures.

1. Prior Legislation. AB 610 (Solorio), Chapter 9, Statutes of 2012, provided an additional 12 months for collection of the 7,500 paid applications necessary for the Veterinary Medical Board to successfully sponsor a specialized license plate. The Board’s specialized license plate is now in production.

Analysis Prepared by: Chuck Nicol / APPR. / (916) 319-2081

Date of Hearing: April 4, 2016

ASSEMBLY COMMITTEE ON TRANSPORTATION

Jim Frazier, Chair

ABPCA Bill Id:AB 2469 (

Author:Frazier) – As Amended Ver:March 29, 2016

SUBJECT: Specialized license plates: breast cancer awareness

SUMMARY: Authorizes the California Department of Health Care Services (DHCS) to collect applications for a specialized license plate program for an additional 12-month period, without offering applicants refunds on their deposits. This bill contains an urgency clause.

EXISTING LAW:

1. Allows any state agency to apply to DMV to sponsor a specialized license plate program.
2. Requires DMV to issue specialized license plates for that program if the agency complies with all statutory requirements.
3. Prohibits DMV from establishing a specialized license plate program for an agency until it has received not less than 7,500 paid applications for that agency's specialized license plates.
4. Requires the agency to collect and hold applications for the plates. Once the agency has received at least 7,500 applications, it must submit the applications, along with the necessary fees, to DMV.
5. Prohibits advance payment to DMV of its estimated or actual administrative costs associated with the issuance of a particular specialized license plate from constituting compliance with the 7,500 application threshold requirement.
6. Requires the agency, if twelve months have elapsed since the approval of the agency’s initial application to sponsor a specialized license plate program without receiving the required number of applications, to either:
7. Refund to all applicants all fees or deposits that have been collected; or,
8. Contact DMV to indicate the agency’s intent to undertake collection of additional applications for an additional 12 month period and contact each applicant who has submitted an application to determine if the applicant wishes a refund of fees or deposits or requests the continuance of the holding of the application and fees or deposits until the agency has received 7,500 applications.
9. Requires funds accruing to a sponsoring state agency from the sale of specialized license plates to be expended exclusively for projects and programs that promote that agency's official policy, mission, or work.
10. Allows specialized license plates to feature a distinctive design, decal, or distinctive message in a two-inch by three-inch space to the left of the plate's numerical sequence and a space not larger than 5/8-inch in height below the numerical series.
11. Requires DHCS to apply to the DMV to sponsor a breast cancer awareness specialized license plate, as specified.

FISCAL EFFECT: Unknown

COMMENTS: Prior to 2007, any new specialized license plate required specific legislative authorization. That practice was held to be unconstitutional by the federal courts, as the Legislature approved some plates and rejected others, without using any standardized or objective criteria for those decisions. In response to the court decision, AB 84 (Leslie), Chapter 454, Statutes of 2006, established the current specialized license plate program to provide a forum for government speech that promotes California's state policies. AB 84 excludes private organizations from seeking specialized license plates as a forum for private speech, and thus addresses the court’s objection. The current specialized license plate program permits a state agency to initiate the development and sponsorship of a specialized plate, thus no additional legislation is required to authorize the creation of a new plate.

Plates created under the current program and the revenue they generate must publicize or promote a state agency, or the official policy, mission, or work of a state agency. Furthermore, the process requires that at least 7,500 paid applications must be received by the state agency prior to notifying DMV. This 7,500-application threshold was previously put into statute in an attempt to ensure that DMV;s startup costs would be fully covered by the portion of the registration fee surcharge that is directed to DMV and to avoid a proliferation of different types of plates, which can be troublesome from a law enforcement perspective.

Existing law authorizes a sponsoring agency to extend the 12-month period to collect the needed number of applications by another 12 months, if it contacts both DMV to indicate its intention to continue collecting applications, and each applicant who has already submitted a deposit to determine if they wish to remain on the list of applicants or receive a refund and be removed from the list.

AB 49 (Buchanan), Chapter 351, Statutes of 2014, required DHCS to apply to sponsor a breast cancer awareness specialized license plate program, with revenues from the program being deposited in the Breast Cancer Control Account in the Breast Cancer Fund.

Proponents of AB 49, and of this specialized license plate program, have yet to reach the required number of applicants, and wish to extend the deadline by another 12 months without having to offer each applicant a refund. It is unclear if the proponents of the plate will be able to acquire the necessary number of applicants by the end of the initial 12-month period, or by the end of an additional 12-month period if some applicants remove themselves from the list.

AB 2469 would authorize DHCS to obtain a 12-month extension to finish collecting the necessary 7,500 applications, without requiring the department to contact each applicant who has submitted an application to determine if they wish to remain on the list or receive a refund and be removed from the list.

According to the author, allowing DHCS to focus on acquiring new applications instead of offering refunds to current applicants will expedite their goal of reaching the necessary 7,500 applications needed to increase breast cancer awareness and funding. This bill contains an urgency clause, allowing DHCS and the plate proponents to immediately work to secure more signatures, without waiting for the July 2016 deadline imposed by current statute to obtain an extension.

The Legislature has previously granted additional extensions to sponsoring agencies beyond the standard 24 months, up to 36 months, allowing the sponsors to successfully acquire the necessary number of applications and trigger production of the plates.

Related legislation: Currently there are five bills in the legislative process that would direct a state agency to sponsor a specialized license plate for a specific cause: AB 63 (Bonilla) to raise money for school safety, AB 270 (Nazarian) to raise money for diabetes awareness, and AB 932 (Daly) to raise money for local parks and recreation grant programs. These three bills passed out of this Committee with no ‘No’ votes and are currently awaiting a hearing in the Senate Appropriations Committee.

AB 1884 (Harper), would raise money for mental health awareness. AB 1884 passed out of this committee on March 14, 2016, with a vote of 16-0, and I awaiting a hearing in the Assembly Appropriations Committee.

AB 2131 (Maienschein) would raise money for California food banks. AB 2131 is currently awaiting a hearing in this committee.

Previous legislation: AB 610 (Solorio), Chapter 9, Statutes of 2012, provided an additional 12 months for the collection of the 7,500 paid applications necessary for the Veterinary Medical Board to successfully sponsor a specialized license plate, beyond the existing 24-month period. The Board’s specialized license plate is now in production.

AB 49 (Buchanan), Chapter 351, Statutes of 2014, required DHCS to apply to sponsor a breast cancer awareness specialized license plate program.

SR 28 (Committee on Transportation and Housing), adopted in 2014, requested DMV to establish a task force made up of DMV, the California Highway Patrol, and local law enforcement to study and make recommendations on license plate designs appropriate for traffic safety and effective law enforcement. This resolution was adopted by the full Senate and DMV reported its findings in September 2015.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

Analysis Prepared by: Justin Behrens / TRANS. / (916) 319-2093