Existing law authorizes a state agency to apply to the Department of Motor Vehicles (DMV) to sponsor a specialized license plate program, and requires the DMV to issue those license plates if the agency receives 7,500 applications within a 12-month period, among other requirements. Existing law requires those license plates to have a design or contain a message that publicizes or promotes the state agency, or the official policy, mission, or work of the state agency. Existing law requires the DMV to charge certain additional fees for specialized license plates and deposit those fees in the Specialized License Plate Fund for allocation to the sponsoring agency, as specified.

This bill would require the Department of Parks and Recreation to apply to the DMV to sponsor a license plate program for the issuance of license plates bearing the officially licensed logo, emblem, or trademark provided by a California professional sports franchise, upon entering into a memorandum of understanding with the franchise to participate in the program. The bill would authorize the department to increase the additional fees for the issuance, renewal, or transfer of the specialized license plate for each specialized license plate program sponsored pursuant to these provisions, and would require the revenue generated from the license plates, as specified, plates to be deposited in deposited, as specified, into the California State Parks Account created by the bill in the Specialized License Plate Fund, for use, upon appropriation by the Legislature to the California State Parks Office of Grants and Local Services, for funding local parks and recreation grant programs. programs, and into the California Professional Sports Franchise Nonprofit Organization Account created by the bill in the Specialized License Plate Fund, for use, upon appropriation by the Legislature to the nonprofit organization identified in the memorandum of understanding, for funding charitable purposes of the nonprofit organization.

Existing law authorizes a state agency to apply to the Department of Motor Vehicles (DMV) to sponsor a specialized license plate program, and requires the DMV to issue those license plates if the agency receives 7,500 applications within a 12 month 12-month period, among other requirements. Existing law requires those license plates to have a design or contain a message that publicizes or promotes the state agency, or the official policy, mission, or work of the state agency. Existing law requires the DMV to charge certain additional fees for specialized license plates and deposit those fees in the Specialized License Plate Fund for allocation to the sponsoring agency, as specified.

This bill would require the Department of Parks and Recreation to apply to the DMV to sponsor a license plate program for the issuance of license plates bearing the officially licensed logo, emblem, or trademark provided by a California professional sports franchise. franchise, upon entering into a memorandum of understanding with the franchise to participate in the program. The bill would require the revenue generated from the license plates, as specified, to be deposited in the California State Parks Account created by the bill in the Specialized License Plate Fund, for use, upon appropriation by the Legislature to the California State Parks Office of Grants and Local Services, for funding local parks and recreation grant programs.

Existing law authorizes a state agency to apply to the Department of Motor Vehicles (DMV) to sponsor a specialized license plate program, and requires the DMV to issue those license plates if the agency receives 7,500 applications within a 12 month period, among other requirements. Existing law requires those license plates to have a design or contain a message that publicizes or promotes the state agency, or the official policy, mission, or work of the state agency. Existing law requires the DMV to charge certain additional fees for specialized license plates and deposit those fees in the Specialized License Plate Fund for allocation to the sponsoring agency, as specified.

This bill would require the Department of Parks and Recreation to apply to the DMV to sponsor a license plate program for the issuance of license plates bearing the officially licensed logo, emblem, or trademark provided by a California professional sports franchise. The bill would require the DMV to issue those license plates if the Department of Parks and Recreation obtains 7,500 applications by January 1, 2018. The bill would require the revenue generated from the license plates, as specified, to be deposited in the California State Parks Account created by the bill in the Specialized License Plate Fund, for use, upon appropriation by the Legislature to the California State Parks Office of Grants and Local Services, for funding local parks and recreation grant programs.

Existing law authorizes a state agency to apply to the Department of Motor Vehicles (DMV) to sponsor a specialized license plate program, and requires the DMV to issue those license plates if the agency receives 7,500 applications within a 12 month period, among other requirements. Existing law requires those license plates to have a design or contain a message that publicizes or promotes the state agency, or the official policy, mission, or work of the state agency. Existing law requires the DMV to charge certain additional fees for specialized license plates and deposit those fees in the Specialized License Plate Fund for allocation to the sponsoring agency, as specified.

This bill would require an unspecified state agency the Department of Parks and Recreation to apply to the DMV to sponsor a license plate program for the issuance of license plates bearing the officially licensed logo, emblem, or trademark of provided by a California professional sports franchise. The bill would require the DMV to issue those license plates if the unspecified state agency Department of Parks and Recreation obtains 7,500 applications by January 1, 2018. The bill would require the revenue generated from the license plates, as specified, to be deposited in the California State Parks Account created by the bill in the Specialized License Plate Fund, for use, upon appropriation by the Legislature to the California State Parks Office of Grants and Local Services, for funding local parks and recreation grant programs.

Existing law authorizes a state agency to apply to the Department of Motor Vehicles (DMV) to sponsor a specialized license plate program, and requires the DMV to issue those license plates if the agency receives 7,500 applications within a 12 month period, among other requirements. Existing law requires those license plates to have a design or contain a message that publicizes or promotes the state agency, or the official policy, mission, or work of the state agency. Existing law requires the DMV to charge certain additional fees for specialized license plates and deposit those fees in the Specialized License Plate Fund for allocation to the sponsoring agency, as specified.

This bill would require an unspecified state agency to apply to the DMV to sponsor a license plate program for the issuance of license plates bearing the officially licensed logo, emblem, or trademark of a professional sports franchise. The bill would require the DMV to issue those license plates if the unspecified state agency obtains 7,500 applications by January 1, 2018.

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

AB 932 (Daly) - Specialized license plates: professional sports

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

AB 932 would require the Department of Parks and Recreation (DPR) to apply to the Department of Motor Vehicles (DMV) to sponsor a professional sports franchise specialized license plate program, upon entering into a memorandum of understanding (MOU) with a California professional sports franchise. The bill would authorize DMV to increase specified license plate fees for sports franchise plates and require the increased revenues to be used for charitable purposes, upon appropriation to a nonprofit organization specified in the MOU by the Legislature, as specified.

Fiscal Impact:

• For each sports franchise that enters into an MOU with DPR, DMV would incur the following costs:
  Assuming the initial 7,500 pre-paid applications are collected by DPR, DMV would incur initial administrative costs of $135,000 to process the applications, and an additional $440,000 in programming and other implementation costs, likely in 2017-18 for an initial sports franchise plate, partially offset by pre-paid application fees of $375,000, leaving a net cost of approximately $200,000 (Motor Vehicle Account). These net costs would be reimbursed in the following fiscal year by registration renewal fees from holders of the sports franchise plates. All ongoing costs thereafter would be fully offset by fees from renewals and issuance of new plates.
  
  

• DPR indicates it would incur costs of approximately $200,000 in 2016-17, and ongoing costs of about $172,000 annually for up to two full-time positions, with an additional $15,000 in IT-related costs in alternating years for online application capability (State Parks and Recreation Fund). This estimate assumes multiple sports franchises will seek plates, and DPR will process applications and payments concurrently for each proposed franchise plate, and administer the distribution of funds ongoing.
  
  

• Unknown ongoing revenues to DPR for local parks and recreation grant programs (California State Parks Account). Revenues would depend upon the number of sports franchise plates that are implemented, and the number of applicants for each plate. Demand is expected to be higher than it has been for other specialized plate programs, so revenues could be significant.

• Unknown revenues for allocation to charitable nonprofit organizations identified by sports franchises in MOUs with DPR. These revenues would depend upon whether DMV increases specified license plate fees, and by how much. (California Professional Sports Franchise Nonprofit Organization Account)
  
  

• Diversion of funding for personalizing a professional sports franchise plate from the California Environmental License Plate Fund to the special funds created by this bill. See staff comments.

Background:

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. Current law, as enacted by AB 84 (Leslie), Ch. 454/2006, authorizes any state agency to sponsor a special interest license plate, and apply to DMV to establish a new license plate program after collecting at least 7,500 applications and accompanying fees and submitting them to DMV. The applications must be collected within one year, with an option to extend that timeframe by an additional year under specified conditions. The new specialized license plate must have a design or contain a message that publicizes or promotes a state agency, or the official policy, mission, or work of the agency.

In addition to the regular fees for an original or renewal registration, existing law requires payment of the following fees for the issuance, renewal, or transfer of the specialized license plate: $50 for original issuance; $40 for renewal; $15 for transfer to another vehicle; and $35 for substitute replacement plates. Once a specialized license plate program has been implemented, all additional fee revenues associated with the plate, after subtracting DMV administrative costs, are deposited into the Specialized License Plate Fund, and made available to the sponsoring agency upon appropriation by the Legislature for projects and programs that promote the agency’s official policy, mission, or work. A sponsoring agency may not spend more than 25 percent of its license plate fee revenues for administrative, marketing, and promotional costs associated with the plate. If an applicant wishes to personalize a specialized license plate, the following additional fees would apply: $48 for original issuance, $38 for renewal, and $38 for transfer to another vehicle. Any fees paid for personalization would be deposited into the California Environmental License Plate Fund for expenditure on various environmental protection purposes.

Currently, 25 states and Washington D.C. have implemented specialized license plate programs using professional sports team logos. Revenues from these programs have been used to fund various social programs, including youth development, homelessness, and academic scholarship programs.

The Office of Grants and Local Services (OGALS), within DPR, administers numerous grant programs that provide funding for state and local parks and recreation projects and programs. Since 2000, the Office has administered over 8,300 grants from 34 different programs.

Proposed Law:

AB 932 would authorize a professional sports franchise license plate program. Specifically, this bill would:

• Require DPR to apply to DMV to sponsor a professional sports franchise license plate program upon entering into an MOU with a California professional sports franchise to participate in the program.

• Require the MOU to identify the nonprofit organization associated with the franchise for purposes of receiving increased license plate funds, as specified.

• Require DPR to accept and use the officially licensed logos, emblems, and trademarks provided by the professional sports franchises for the license plate.

• Authorize DMV to increase the fees specified in existing law for specialized plates for each professional sports franchise plate that is established.

• Establish the California State Parks Account in the Specialized License Plate Fund and require the funds to be used for funding local parks and recreation grant programs, upon appropriation by the Legislature to OGALS.

• Establish the California Professional Sports Franchise Nonprofit Organization Account in the Specialized License Plate Fund and require the Treasurer to create a separate subaccount for each professional sports franchise plate that is established. The funds in each subaccount would be used for funding charitable purposes of the nonprofit organization, upon appropriation by the Legislature to the nonprofit identified in the MOU.

• Specify the distribution of specialized license plate revenue, as follows:

  • If the fees are more than twice the amount specified in existing law, the revenues would be evenly split between DPR and the identified nonprofit organization, after deducting DMV’s administrative costs.

  • If the fees are twice the amount specified in existing law or less, after deducting DMV’s administrative costs, the amount attributable to the increase imposed by DMV would be distributed to the nonprofit organization, and DPR would get the remaining amount.

  • If DMV does not increase the specialized license plate fees, DPR will receive all of the funding, after deducting DMV’s administrative costs, as specified.

Related Legislation:

Over the past five years, 13 bills have been introduced directing a state agency to sponsor a specialized license plate for a variety of causes, and eight of these bills were enacted. Most recently, the following four bills were signed into law in 2014: AB 49 (Buchanan), Ch. 351/2014, for breast cancer awareness; AB 1096 (Nestande), Ch. 353/2014, for Salton Sea restoration; AB 2321 (Gomez) Ch. 358/2014, for domestic violence prevention and sexual assault awareness; and AB 2450 (Logue), Ch. 359/2014, for kidney disease awareness.

There are three other specialized license plates pending in this Committee: AB 63 (Bonilla) would require the Department of Education to apply to the DMV to sponsor a school violence prevention license plate program; AB 192 (Allen) would require the State Coastal Conservancy to apply to the DMV to sponsor a coastal conservancy awareness license plate program, and make specified changes to the Pet Lover’s specialized plate program; and AB 270 (Nazarian) would require the Department of Public Health to apply to DMV to sponsor a diabetes awareness specialized plate program.

Staff Comments:

As noted above, any state agency may sponsor a specialized license plate program and apply to DMV to issue the plates upon collection of 7,500 pre-paid applications without legislative action. Rather than allow DPR to sponsor a plate at its discretion, this bill would require that department to apply to DMV to sponsor a professional sports franchise plate program. Staff notes that DPR would need to enter into an MOU with a sports franchise prior to applying to DMV to sponsor a plate program.

As a sponsoring entity, existing law requires DPR to design a plate, apply to DMV to sponsor a plate program, and collect 7,500 pre-paid applications within 12 months. If the requisite number of applications has not been reached within a year, DPR has the option of either returning all fees and deposits to applicants, or notifying DMV that it intends to continue collection efforts to obtain the minimum 7,500 applications within the subsequent 12 months. Staff notes that only two of the 12 specialized plate programs signed into law since 2000 have successfully met the minimum threshold of 7,500 pre-paid applications. However, given the popularity of sports franchises, the plates authorized by this bill are likely to meet the minimum threshold rather quickly. DMV costs would only be incurred once the pre-paid applications are submitted by DPR for processing. DMV implementation costs would be incurred for each professional sports franchise that participates in a plate program sponsored by DPR.

DPR estimates the need for 2 additional staff to negotiate MOUs with sports franchises, establish online application capability, and administer the collection of applications. First year costs are estimated at $201,000, with ongoing staffing costs of approximately $172,000 annually, and an additional $15,000 in alternating years to establish and maintain online application capability. Additional staff may be needed in future years to administer the distribution of funding raised through the plate program, depending on the amount of available revenues. For every 10,000 plates issued, the bill would generate approximately $380,000 once the program is established.

Existing law requires specialized license plates to have a design or contain a message that publicizes or promotes a state agency, or the official policy, mission, or work of a state agency. This bill diverges from the current mission of promoting public purposes, and instead promotes private professional sports franchises and raises money for their charitable priorities.

The bill authorizes DMV to establish increased fees for the purposes of each specialized license plate sponsored by DPR. The additional revenues would be deposited into a new special fund and allocated to nonprofit organizations specified in the MOU with each professional sports franchise associated with a specialized plate program, as specified, for funding the nonprofit’s charitable purposes. The amount of revenues available for distribution is indeterminable. Existing law requires a sponsoring entity to prepare and submit an annual report to DMV that includes an accounting of all revenues and expenditures associated with a specialized license plate program. There are no provisions in the bill for oversight of revenues and expenditures of nonprofit entities that would benefit from the bill, and DPR would have no way of knowing whether revenues were spent appropriately. It is unclear how an accounting of those revenues could be included in the required annual report. The Committee may wish to consider whether there should be some oversight and/or reporting related to funds allocated to nonprofits for expenditure on charitable purposes.

Existing law requires specified additional funds related to personalizing a specialized license plate must be deposited into the California Environmental License Plate Fund. This bill requires DMV to deposit all fees collected from the sale of the sports franchise plates into the new special funds for allocation to DPR and nonprofit organizations, as specified, after deducting DMV administrative costs. This would appear to result in the diversion of any revenues associated with personalization from the Environmental License Plate Fund to the new funds established by this bill.

Staff notes that the Senate Transportation and Housing Committee authored, and the Senate approved, SR 28 last year to declare a moratorium on legislation to increase the number of specialized plate types that DMV may issue until the Legislature can assess the full and long-term impacts of the ongoing increase in license plate types. The resolution requested DMV to establish a task force to study plate proliferation and make recommendations to the Legislature and Governor by July 1, 2015. That report is still pending, and the proposed moratorium has apparently not prevented new plate proposals from moving forward in the current Session.

-- END --

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2015 - 2016 Regular

Bill No: AB 932 Hearing Date: 7/7/2015

SUBJECT: Specialized license plates: professional sports

DIGEST: This bill authorizes a professional sports license plate program.

ANALYSIS:

Existing law provides for a specialized license plate program, under which the Department of Motor Vehicles (DMV) may issue new special-interest license plates. Special-interest license plates may only be issued on behalf of state agencies and only provided that for each state agency:

1. The license plate has “a design or contains a message that publicizes or promotes a state agency, or the official policy, mission, or work of a state agency.” The design shall also be confined to the left of and below the numerical series (i.e., no full-plate designs allowed).

2. The state agency submits 7,500 applications and accompanying fees to DMV for the license plate. The state agency has 12 months to collect these applications and fees, but it can extend that to a maximum of 24 months if it notifies and offers to refund fees to those who applied during the first 12 months. Once a plate is issued, DMV stops issuing that plate for the agency if the number of plates drops below 7,500.

In addition to the usual registration and license fees, DMV charges the following additional fees for specialized license plates: $50 for the initial issuance, $40 for annual renewal, and $98 to personalize. DMV deducts its administrative costs from the revenues generated. The net revenues derived from a specialized license plate are then available upon appropriation for the sponsoring state agency to expend exclusively on projects and programs that promote the state agency’s official policy, mission, or work.

This bill:

1. Requires the Department of Parks and Recreation (DPR) to apply to the DMV to sponsor a professional sports franchise license plate program upon entering into a memorandum of understanding with a California professional sports franchise to participate.

2. Requires the specialty license plate to include the logo, emblem, or trademark of the sports franchise.

3. Requires that the funds raised from the issuance of the plates, after deduction for administrative costs, shall be deposited into the California State Parks Account to fund local parks and recreation programs.

COMMENTS:

Purpose. The author notes that spending for local parks has decreased even as demand grows. Communities facing budget problems have been forced to let their parks fall into disrepair, or to close them altogether. The author created this bill to establish a dedicated funding source for local park programs.

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 are 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.

A recent decision by the United States Supreme Court may have upended the Gourley decision. On June 18, 2015, the Court issued Walker v. Texas Division, Sons of Confederate Veterans, which appears to be a contrary ruling to Gourley. However, the committee needs to consult with others before providing a more definitive opinion.

Nothing like it. This bill is unique from other specialized license plate in several respects:

1. Sales of these plates will raise money for both state and non-state purposes. The funds raised from the sale of specialized license plates typically go to the state purpose specified in the legislation. However, this bill directs funds raised from the sale of these license plates to be split on an as-yet-undetermined basis between the charities selected by the sports team and the California State Parks account.

2. The cost of these plates will be significantly higher than for other specialized license plates. Because the funds will be split, this bill envisions that the specialty license plate fees for this program will be double or more the fees for other specialty license plates. This ensures that the California State Parks account will receive the same amount as for any other specialty license plate, while the sports team’s charity will receive any amount above that.

3. These plates will have the logo of a private, for-profit enterprise. This bill authorizes the placement of the logos and emblems of sports teams on the license plate. Specialty plates that use logos typically feature non-profit organizations such as the Girl Scouts; featuring a for-profit organization is almost unprecedented. The lone exception is the California Cultural and Historical Endowment plate, which features a picture of Snoopy, but that authorization was done administratively, not in statute. Would establishing this precedent open the door to other for-profit entities to do the same? There would be little basis to object to the Walmart, SEIU, or Smith & Wesson logos on state-issued license plates. The author and committee may wish to carefully consider this precedent-setting provision. While California professional sports teams are popular, and successful, especially in Northern California, it may be inappropriate for private entities to have their logos affixed to a government document, irrespective of the merit of the cause.

While there is virtually no California history of for-profit organizations on license plates, allowing sports teams on license plates seems to be common elsewhere. According to the author, 27 states allow sports team logos on their license plates. In Florida, seven professional sports teams and NASCAR all have specialty license plates; Texas has 18 different plates with professional sports affiliations and at least one for a consumer product, Pepsi.

4. This program is likely to be much more successful than prior specialized license plate programs. While the vast majority of specialty license plates fail to meet the 7,500 threshold, it seems likely that the sports plate will have little trouble meeting that number. In Florida, the Miami Heat, Tampa Bay Buccaneers, and Jacksonville Jaguars all have sold more than 7,500 plates. In California, where our professional sports teams are more successful, this could result in millions of additional dollars for state park programs. Under this bill, the 7,500-plate minimum threshold applies to the program, not each individual sports team.

Charitable intent isn’t explicit. The intent of this bill is to partner with professional sports teams and to split the proceeds with the charities of those teams, but that intent is not specified in the bill. The author and committee may wish to consider adding an explicit requirement that the portion of the charges not going to the state must be provided to the charitable foundation of the sports team for charitable purposes.

How much? Current law establishes the charges for specialized license plates, but the intent of this bill is to allow for substantially higher charges, with the state getting the usual charge ($50 initially, $40 for renewals, $98 for personalization) and the remainder going to the charity of the sports team. The author and committee may wish to consider clarifying this arrangement by explicitly allowing for higher charges. Moreover, if the intent is to allow for substantially higher charges, it may be appropriate to split the charges 50/50 between the state and the professional sports team charity.

Opposition. The Department of Finance opposes this bill as unnecessary, as a process already exists that allows state agencies to apply to the DMV to sponsor specialty license plates.

Related Legislation:

AB 63 (Bonilla) — establishes a school violence prevention specialized license plate program. This bill is also being heard today in this committee.

AB 192 (Allen) — establishes a coastal conservancy awareness specialized license plate. This bill is pending in the Senate Transportation and Housing Committee.

AB 270 (Nazarian) — establishes a diabetes awareness specialized license plate. This bill is also being heard today in this committee.

AB 1338 (Gomez) — establishes a domestic violence and sexual assault awareness specialized license plate. This bill is also being heard today in this committee.

AB 49 (Buchanan, Chapter 351, Statutes of 2014) — requires the state Department of Health Care Services to apply to the DMV to sponsor a breast cancer awareness license plate program.

AB 1096 (Nestande, Chapter 353, Statutes of 2014) — requires the Department of Fish and Wildlife to apply to the DMV to sponsor a Salton Sea license plate program.

AB 2321 (Gomez, Chapter 358, Statutes of 2014) — requires the Office of Emergency Services to apply to the DMV for a domestic violence and sexual assault awareness and specialty license plate program.

AB 2450 (Logue, Chapter 359, Statutes of 2014) — requires the state Department of Public Health to apply to the DMV for a kidney disease awareness specialty license plate program.

AB 244 (Bonilla, Chapter 690, Statutes of 2013) — requires the Department of Veterans Affairs to apply to the DMV to sponsor a veterans’ specialty license plate program.

Assembly Votes:

Floor: 77-0

Appr: 17-0

AEST&IM: 7-0

Trans: 14-0

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

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

July 1, 2015.)

SUPPORT:

California Park and Recreation Society

Anaheim Ducks Hockey Club

OPPOSITION:

Department of Finance

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 932

Author:(Daly and Thurmond)

As Amended Ver:May 28, 2015

Majority vote

SUMMARY: Requires the State Department of Parks and Recreation (DPR) to apply to the Department of Motor Vehicles (DMV) to sponsor a specialized license plate program using professional sport team logos, as specified. Establishes the California State Parks Account (Account) and specifies that revenues from the Account be used by DPR to fund local park and recreation programs.

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 administrative costs associated with the issuance of a particular specialized license plate from constituting compliance with the 7,500 application threshold requirement.

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. 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.

FISCAL EFFECT: According to the Assembly Appropriations Committee:

1. Potential one-time special fund costs of approximately $440,000 to DMV for each professional team that seeks, through DPR, to participate in the specialized license plate program. Pursuant to current law, DMV will make computer programming and form changes only after program applications meet a 7,500-application threshold for each separate team plate. Therefore, the DMV will incur these costs only if it receives enough applications for each team's plate to require the DPR to implement a program for that team. The DMV will incur minor ongoing costs to continue issuing specialty license plates and renewals under the program. All of the DMV's initial and ongoing costs will be covered by a portion of the additional $50 fee paid for original specialized license plates and the additional $40 fee to renew such plates.

2. Given that there could be several teams seeking to participate in the program and that teams might elect to participate at different times, DPR could incur annual costs of up to $175,000 for at least two to three years for up to two full-time staff to submit multiple program applications and license prototypes to DMV, design and print the license plate applications, and collect and hold applications and fees until 7,500 applications are received for each participating team. The bill contains no provision to cover these administrative costs.

3. Potential ongoing unknown revenue to DPR, for local parks and recreation program, from a portion of the additional fees for new and renewed specialty license plates generated after the funding requirements in 1), above are satisfied for each participating team.

COMMENTS: Prior to 2007, any new specialized license plate required specific legislative authorization. That practice was held to be unconstitutional by the federal courts in that the Legislature approved some of the plates and rejected others, while using no 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.

Plates now created 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. The 7,500-application threshold was previously put into statute for specialized license plates and was arrived at in an attempt to assure 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.

The author introduced this bill in order to provide an additional revenue source for state park grants that help fund local park and recreation programs. A report by the Resources for the Future found that while parks have grown in popularity and demand, park spending has remained relatively flat and actually decreased during the past two economic recessions. Thus, the author asserts, "California is home to millions of sports fans. This bill provides an easy way for drivers to show their support for their favorite sports team while simultaneously helping park and recreational programs."

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

Analysis Prepared by: Manny Leon / TRANS. / (916) 319-2093 FN: 0000697

Date of Hearing: April 6, 2015

ASSEMBLY COMMITTEE ON TRANSPORTATION

Jim Frazier, Chair

ABPCA Bill Id:AB 932 (

Author:Daly) – As Amended Ver:April 8, 2015

SUBJECT: Specialized license plates: professional sports.

SUMMARY: Requires the State Department of Parks and Recreation (DPR) to apply to the Department of Motor Vehicles (DMV) to sponsor a specialized license plate program using professional sport team logos, as specified. Establishes the California State Parks Account (Account) and specifies that revenues from the Account be used by DPR to fund local park and recreation programs.

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 administrative costs associated with the issuance of a particular specialized license plate from constituting compliance with the 7,500 application threshold requirement.

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. 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.

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 in that the Legislature approved some of the plates and rejected others, while using no 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.

Plates now created 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. The 7,500-application threshold was previously put into statute for specialized license plates and was arrived at in an attempt to assure 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.

Currently, 25 states and Washington D.C. have implemented specialized license plate programs in some form using professional sport team logos. Revenues from these programs have been used to fund programs such as, youth development, homelessness, and academic scholarships. Overall, these programs using professional team logos have been successful in raising revenue for various social programs.

The author introduced this bill in order to provide an additional revenue source for state park grants that help fund local park and recreation programs. A report by the Resources for the Future found that while parks have grown in popularity and demand, park spending has remained relatively flat and actually decreased during the past two economic recessions. Thus, the author asserts, "California is home to millions of sports fans. This bill provides an easy way for drivers to show their support for their favorite sports team while simultaneously helping park and recreational programs."

Related legislation: AB 270 (Nazarian), requires the State Department of Public Health to apply to the DMV to sponsor a diabetes awareness, education, and research specialized license plate program (program), as specified. AB 270 passed out of this committee on a 16-0 vote and is awaiting a hearing in the Assembly Appropriations Committee.

Previous legislation: Over the past 5 years, 13 bills have been introduced directing a state agency to sponsor a specialized license plate for a variety of causes. Of the 13 bills, eight passed the Legislature and were signed by the Governor. Most recently, in 2014, four bills were introduced and enacted to raise money for Salton Sea restoration [AB 1096 (Nestande), Chapter 353, Statutes of 2014], kidney disease research [AB 2450 (Logue), Chapter 359, Statutes of 2014], breast cancer awareness [AB 49 (Buchanan), Chapter 351, Statutes of 2014], and domestic violence prevention [AB 2321 (Gomez), Chapter 358, Statutes of 2014].

Double referral: This bill will be referred to the Assembly Committee on Arts, Entertainment, Sports, Tourism & Internet Media should it pass out of this committee.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

Analysis Prepared by: Manny Leon / TRANS. / (916) 319-2093

Date of Hearing: May 6, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

ABPCA Bill Id:AB 932

Author:(Daly) – As Amended Ver:April 8, 2015

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

SUMMARY:

This bill requires the Department of Parks and Recreation (DPR) to apply to the DMV to sponsor specialized license plates using the officially-licensed logos of California's professional sports teams. Net revenues from these plates, upon appropriation by the Legislature, are to be used by DPR's Office of Grants and Local Services to fund local parks are recreation programs.

FISCAL EFFECT:

1. Potential one-time special fund costs of approximately $440,000 to DMV for each professional team that seeks, through DPR, to participate in the specialized license plate program. Pursuant to current law, DMV will make computer programming and form changes only after program applications meet a 7,500-application threshold for each separate team plate. Therefore, the DMV will incur these costs only if it receives enough applications for each team's plate to require the DPR to implement a program for that team. The DMV will incur minor ongoing costs to continue issuing specialty license plates and renewals under the program. All of the DMV's initial and ongoing costs will be covered by a portion of the additional $50 fee paid for original specialized license plates and the additional $40 fee to renew such plates.

2. Given that there could be several teams seeking to participate in the program and that teams might elect to participate at different times, DPR could incur annual costs of up to $175,000 for at least two to three years for up to two full-time staff to submit multiple program applications and license prototypes to DMV, design and print the license plate applications, and collect and hold applications and fees until 7,500 applications are received for each participating team. The bill contains no provision to cover these administrative costs.

3. Potential ongoing unknown revenue to DPR, for local parks and recreation program, from a portion of the additional fees for new and renewed specialty license plates generated after the funding requirements in (1) are satisfied for each participating team.

COMMENTS:

1. Background. 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)/Statutes 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.

2. Purpose. A report by the Resources for the Future found that while parks have grown in popularity and demand, park spending has remained relatively flat and actually decreased during the past two economic recessions. Thus, the author asserts, "California is home to millions of sports fans. This bill provides an easy way for drivers to show their support for their favorite sports team while simultaneously helping park and recreational programs."

Currently, 25 states and Washington D.C. have implemented specialized license plate programs in some form using professional sport team logos. Revenues from these programs have been used to fund programs such as, youth development, homelessness, and academic scholarships. Overall, these programs using professional team logos have been successful in raising revenue for various social programs.

3. Recommended Amendments. First, the bill should clarify that DPR will apply to the DMV for a specialized license plate program only for those teams that first inform DPR of their desire to participate. It is staff's understanding that Memoranda of Understanding will be signed between the department and each participating team.
   
   

Second, it is staff's understanding that the net proceeds from the license plate programs will be split evenly between DPR and charities operated or supported by the respective professional teams. This should be stated in the bill.

4. A Slippery Slope? Vehicle Code Section 5154 (added by AB 84 in 2006) states, "Specialized license plates issued under this article shall have a design or contain a message that publicizes or promotes a state agency, or the official policy, mission, or work of a state agency." Displaying the logo of a private sports franchise on a California license plate obviously does not meet the criteria of Section 5154, and the bill acknowledges this by notwithstanding the requirement of this section. Could this departure from the current law's standard lead to similar efforts in the future?

5. Related Legislation. AB 63 (Bonilla), pending on this committee's Suspense file, requires the California Department of Education (CDE) to apply to the DMV to create a specialized license plate program to fund the purposes of the School Safety and Violence Protection Act.

AB 270 (Nazarian), also pending on this committee's Suspense file, requires the Department of Public Health to apply to the DMV to sponsor a diabetes awareness, education, and research specialized license plate program

6. Prior Legislation. Over the past five years, 13 bills have been introduced directing a state agency to sponsor a specialized license plate for a variety of causes, and eight of these bills were passed by the Legislature and signed by the Governor. Last year the following four bills were enacted: AB 49 (Buchanan)/Chapter 351, for breast cancer awareness, AB 1096 (Nestande)/Chapter 353) for Salton Sea restoration, AB 2321 (Gomez)/Chapter 358, for domestic violence prevention, and AB 2450 (Logue), for kidney disease research.

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

Date of Hearing: April 21, 2015

ASSEMBLY COMMITTEE ON ARTS, ENTERTAINMENT, SPORTS, TOURISM, AND INTERNET MEDIA

Ian Charles Calderon, Chair

ABPCA Bill Id:AB 932

Author:(Daly) – As Amended Ver:April 8, 2015

SUBJECT: Specialized license plates: professional sports

SUMMARY: Requires the State Department of Parks and Recreation (DPR) to apply to the Department of Motor Vehicles (DMV) to sponsor a specialized license plate program using professional sport team logos, as specified. Establishes the California State Parks Account (Account) and specifies that revenues from the Account be used by DPR to fund local park and recreation programs.

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 administrative costs associated with the issuance of a particular specialized license plate from constituting compliance with the 7,500 application threshold requirement.

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. 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.

FISCAL EFFECT: Unknown

COMMENTS:

1. Author's statement: pro sports specialty license plates are a win win.

According to the author, "A report by the Resources for the Future found that while parks have grown in popularity and demand, park spending has remained relatively flat and actually decreased during the past two economic recessions. The economic, health, and environmental benefits of parks is well documented; however it has become increasingly difficult for municipal governments to provide funding for them. California is home to millions of sports fans, and this legislation provides an easy way for drivers to show support for their favorite sports team, and parks and recreational programs simultaneously. In addition, the professional sports charities will be able to grow their programs, which will also provide benefit to the People of California."

2. Background.

   1. Requirements for constitutionality of specialty tags. Prior to 2007, any new specialized license plate required specific legislative authorization. That practice was held to be unconstitutional by the federal courts in that the Legislature approved some of the plates and rejected others, while using no 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.

Plates now created 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. The 7,500-application threshold was previously put into statute for specialized license plates and was arrived at in an attempt to assure 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.

2. Professional sports specialty plates elsewhere. Currently, 25 states and Washington D.C. have implemented specialized license plate programs in some form using professional sport team logos. Revenues from these programs have been used to fund programs such as, youth development, homelessness, and academic scholarships. Overall, information provided by the author demonstrates that these programs using professional team logos have been successful in raising revenue for various social programs.

3. Process for professional team DMV specialty plate designation.

To begin the process, professional sports teams interested in participating in the specialty license plate program will contact the Department, and an Memorandum of Understanding (MOU) agreement will be signed between the parties outlining the nature of the charitable activities of the professional sports team (Charity) in order to assure compliance with legal requirements for specialty plates discussed in Comment 2 above, and license fee to be collected on behalf of the Charity.

The Department will then submit a Letter of Intent to DMV which contains a financial plan stating the purpose(s) for which the revenue will be used. The parties will then have 12-months to collect 7,500 applications. Each individual team must submit a request, and gather 7,500 fan applications prior to the striking of the first plate. A process exists for extension of time should a team fail to meet the one year deadline.

Once sufficient commitment applications have been gathered, a license plate prototype must be submitted for approval, and the design, logo, and message on the plate must publicize or promote the official policy, mission, or work of the sponsoring state agency. After plate design approval by DMV and the California Highway Patrol, the DMV will authorize the plate prototype to be manufactured. The implementation cost for the specialized license plates is approximately $400,000. The cost is recovered from the sale of the license plates. Once the implementation costs have been met, a deduction (Administrative Service Fee) will be taken for ongoing administrative costs from every application thereafter.

After deducting implementation costs and ongoing Administrative Service Fees, the remainder of the monies will be allocated as follows:

1. Sequential plate configurations go into the Specialized License Plate Fund.

2. Personalized configurations go into two different funds:

   1. A Specialized License Plate Fund for your plate program.

   2. Environmental License Plate Fund for the portion of fees that is attributable to each.

Upon appropriation of the funds by the Legislature to the California State Parks Account, created by this bill within the Specialized License Plate Fund, the Department will remit the portion of the fee collected on behalf of the Charity pursuant to the MOU.

4. Department of Parks and Recreation Office of Grants and Local Services (OGAL)

According to the Department, the following types of services and equipment could be

purchased for local parks under the income generated by the bill, based upon the experience of their typical grant programs - which have ranged in size from $2 million to $184 million. They also advise that a key component to a successful grant program is to tailor the program to the amount of funding available; if the amount of funding is relatively small, it would be worth considering having a match requirement, limiting the types and locations of eligible entities, and being specific about the types of projects that are eligible. At any amount less than $10 million, it would be worth considering a match requirement to reduce the number of applications.

OGALS typically limits the maximum grant amount to no more than 10% of the entire program. So, if the program amount is $2 million, the maximum grant is $200,000 (this ensures at least ten awards).

Here’s the approximate cost of some typical items OGALS funds:

• Programs for children (summer day camps, field trip programs, etc.) - $25k to $200k

• Playgrounds (build/replace) - $50k to $250k

• Sports field irrigation system - $50k to $100k

• Restrooms - $100k to $250k

• Sports field lighting - $150k

• Artificial turf for one soccer field - $500k to $750k

5. Professional sports charities. According to information found on the Internet, each professional sports team in major sports is involved in local charities. A sample list of sports and teams includes the following charitable efforts:

   1. National Football League (NFL)

Oakland Raiders. Organizations involved with: Brave Kids, Boys & Girls Club of Oakland, California Department of Social Services, Children's Hospital Oakland, KDOL Sports Forum, food drive, Football 101, Komen Race for the Cure, Menlo Charity Horse Show, Oakland Police Department, Read Aloud Day 2000, Special Olympics, Toys for Tots. Team programs: Battle of the Bay basketball charity game, donations of turkey and ham during Thanksgiving, Football 101, Let Us Play! Sports Camp for girls, Offense-Defense Football Camp, toy drive.

San Diego Chargers. Organizations involved with: California Interscholastic Federation Championship football games, Children's Hospital and Health Center, Pop Warner football, San Diego Blood Bank. Team programs: Alex Spanos All Star Classic (high school all-star football game), Chargers Blood Drive, Chargers Champions (benefiting youth, education and sports in San Diego County), High School Coach of the Week, Toss for Tots (members make a donation for each Chargers touchdown during the season).

San Francisco 49ERS. Charitable arm: 49ers Foundation. Organizations involved with: Brave Kids, The Drug Abuse Resistance Program, Emergency Housing Consortium, Glide Memorial Church, Hamilton Family Center, Make-A-Wish Foundation, Susan G. Komen Breast Cancer Foundation. Team programs: 49ers Academy (personalized education setting for students at risk of dropping out), 49ers Coat Drive, 49ers Food Drive, Bay Area All-Star Scholarship Team (in partnership with the NBA Golden State Warriors, MLB Oakland As, NFL Oakland Raiders, MLB San Francisco Giants and NHL San Jose Sharks awarded to six students), Football 101, Gatorade/49ers Junior Training Camp, High School Coach of the Week, Holiday Hospital Visits, Operation Blessing 2000.

2. Major League Baseball (MLB).

Los Angeles Angels of Anaheim Charity. Through their involvement in a variety of outreach programs and non-profit organizations, Angels Baseball has proven to be a valuable member of the surrounding community. From laying down the foundation one brick at a time with the Angels Brick Project to helping fund local and national youth organizations, the Angels Baseball Foundation focuses on initiatives aimed to create and improve Education, Healthcare, Arts & Sciences, and Community related youth programs throughout the region, in addition to providing children the opportunity to experience the great game of baseball and its countless positive attributes.

Los Angeles Dodgers Charity. Founded in 1998, the Dodgers Dream Foundation (DDF) was created to provide educational, athletic and recreational opportunities for the youth of the Greater Los Angeles community. The Foundation places special emphasis on helping traditionally under-served youth.

Oakland Athletics Charity. The Oakland Athletics host numerous community events including Golf Classics, Awareness Days, as well as support youth baseball programs and educational endeavors.

San Diego Padres Charity. The Padres Foundation for Children, established in 1995 by Padres Chairman John Moores, is the primary source of funding for the club’s outreach initiatives in the areas of children’s health, education and youth baseball/softball. The Foundation raises funds through corporate sponsorships and through a number of programs in which fans can participate, including Scoreboard Surprises, an online charitable auction, and the annual Shirts Off Their Backs fundraiser.

San Francisco Giants Charity. The Giants’ work in the community translates into a variety of unique and progressive programs dedicated to addressing some of the most pressing needs of Northern California children and their families, including health, violence prevention, youth fitness and recreation, education and literacy.

3. National Basketball Association (NBA).

Since the NBA launched its NBA Cares initiatives in 2005, the league, its teams and players have raised and donated more than $242 million to charity; completed more than 3 million hours of community service; and created nearly 1,000 places where children and families can live, learn or play. The league counts KaBoom!, Special Olympics, YMCA, Boys and Girls Clubs of America, UNICEF, the Make-A-Wish Foundation, Share Our Strength and GLAAD among its social responsibility partners.

6. Extra fees paid above DMV registration for specialty license plates are tax deductible.

According to a 2009 FTB Information Letter requesting clarification on the deductibility of special interest license plate fees as a charitable contribution under California law, "When a taxpayer, with the intention of making a gift, purchases an item of value from a qualified charity, the excess of the payment over the value received is a charitable contribution. As a result, taxpayers who pay the additional fee are entitled to treat as a charitable contribution the difference between the amounts paid for the Arts Council license plate and a regular California license plate...This same conclusion is applicable to registrants that purchase environmental license plates as well as other similarly situated registrants when purchasing other special license plates that support other charitable purposes."

7. Committee comment: no definition of professional sports. Other states which have enacted similar legislation have offered a rather broad definition of professional sports, for instance New Jersey law provides, "As used in this act, 'professional sports team' includes, but is not limited to, teams and franchises associated with the National Hockey League; Major League Baseball Properties, Inc.; NASCAR; NFL Properties, LLC; and National Basketball Properties, Inc." By contrast Ohio offers plates of specific teams and not sports per se, such as the Cincinnati Reds, Cincinnati Bengals, Cleveland Browns, Cleveland Indians and Columbus Blue Jackets. As the bill moves forward the author may wish to consider adding some parameters to the teams who may participate in the specialty plate program.

8. Prior and related legislation.

   1. AB 270 (Nazarian), would require the State Department of Public Health to apply to the DMV to sponsor a diabetes awareness, education, and research specialized license plate program (program), as specified. Currently pending before the Assembly Appropriations Committee.

According to the Assembly Transportation Committee, over the past 5 years 13 bills have been introduced directing a state agency to sponsor a specialized license plate for a variety of causes. Of the 13 bills, eight passed the Legislature and were signed by the Governor. Most recently:

2. AB 482 (Atkins), Chapter 590, Statutes of 2014, aka, the Snoopy Plate, heard and passed out of this committee, supporting small capital projects in museums.

3. AB 1096 (Nestande), Chapter 353, Statutes of 2014, supporting Salton Sea restoration.

4. AB 2450, (Logue), Chapter 359, Statutes of 2014, supporting kidney disease research.

5. AB 49 (Buchanan), Chapter 351, Statutes of 2014, supporting breast cancer awareness.

6. AB 2321 (Gomez), Chapter 358, Statutes of 2014, supporting domestic violence prevention.

REGISTERED SUPPORT / OPPOSITION:

Support

Anaheim Ducks

Los Angeles Angels

Los Angeles Dodgers

Oakland A’s

San Diego Padres

San Francisco Giants

Opposition

There is no opposition on file

Analysis Prepared by: Dana Mitchell / A.,E.,S.,T., & I.M. / (916) 319-3450

Date of Hearing: April 6, 2015

ASSEMBLY COMMITTEE ON TRANSPORTATION

Jim Frazier, Chair

ABPCA Bill Id:AB 932

Author:(Daly) – As Amended Ver:March 26, 2015

SUBJECT: Specialized license plates: professional sports

SUMMARY: Requires the State Department of Parks and Recreation (DPR) to apply to the Department of Motor Vehicles (DMV) to sponsor a specialized license plate program using professional sport team logos, as specified. Establishes the California State Parks Account (Account) and specifies that revenues from the Account be used by DPR to fund local park and recreation programs.

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 administrative costs associated with the issuance of a particular specialized license plate from constituting compliance with the 7,500 application threshold requirement.

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. 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.

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 in that the Legislature approved some of the plates and rejected others, while using no 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.

Plates now created 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. The 7,500-application threshold was previously put into statute for specialized license plates and was arrived at in an attempt to assure 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.

Currently, 25 states and Washington D.C. have implemented specialized license plate programs in some form using professional sport team logos. Revenues from these programs have been used to fund programs such as, youth development, homelessness, and academic scholarships. Overall, these programs using professional team logos have been successful in raising revenue for various social programs.

The author introduced this bill in order to provide an additional revenue source for state park grants that help fund local park and recreation programs. A report by the Resources for the Future found that while parks have grown in popularity and demand, park spending has remained relatively flat and actually decreased during the past two economic recessions. Thus, the author asserts, "California is home to millions of sports fans. This bill provides an easy way for drivers to show their support for their favorite sports team while simultaneously helping park and recreational programs."

Author amendments: The author intends to amend the bill to remove several drafting errors pertaining to providing a two-year period to attain the required number of specialized license plates and the intent language to ensure the specialized license plate program is consistent with existing program requirements.

Related legislation: AB 270 (Nazarian), requires the State Department of Public Health to apply to the DMV to sponsor a diabetes awareness, education, and research specialized license plate program (program), as specified. AB 270 passed out of this committee on a 16-0 vote and is awaiting a hearing in the Assembly Appropriations Committee.

Previous legislation: Over the past 5 years, 13 bills have been introduced directing a state agency to sponsor a specialized license plate for a variety of causes. Of the 13 bills, eight passed the Legislature and were signed by the Governor. Most recently, in 2014, four bills were introduced and enacted to raise money for Salton Sea restoration [AB 1096 (Nestande), Chapter 353, Statutes of 2014], kidney disease research [AB 2450 (Logue), Chapter 359, Statutes of 2014], breast cancer awareness [AB 49 (Buchanan), Chapter 351, Statutes of 2014], and domestic violence prevention [AB 2321 (Gomez), Chapter 358, Statutes of 2014].

Double referral: This bill will be referred to the Assembly Committee on Arts, Entertainment, Sports, Tourism & Internet Media should it pass out of this committee.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

Analysis Prepared by: Manny Leon / TRANS. / (916) 319-2093