SB 1189: Specialized license plates.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2018-04-02
Existing law establishes a specialized license plate program and requires the Department of Motor Vehicles (DMV) to issue specialized license plates on behalf of a sponsoring state agency that meets certain requirements. Existing law requires that the DMV charge specified additional fees for the issuance, renewal, or transfer of specialized license plates, and requires the DMV to deposit the fees, less the DMVs costs, into the Specialized License Plate Fund. Existing law requires that moneys in the fund be allocated, upon appropriation by the Legislature, to each sponsoring agency in proportion to the amount that is attributable to the agencys specialized license plate program. Existing law authorizes the sponsoring state agency to use these moneys to fund projects and programs that promote the state agencys official policy, mission, or work.
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 that the proceeds from those license plates to be deposited 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 Department of Parks and Recreations Office of Grants and Local Services, for funding operations and maintenance of state parks and recreation grant programs.
Existing law, with certain exceptions, imposes certain design criteria for specialized license plates, including, among other things, that the license plate provide a space not larger than two inches by three inches to the left of the numerical series and a space not larger than five-eighths of an inch in height below the numerical series for a distinctive design, decal, or descriptive message.
This bill would, notwithstanding those provisions, authorize the Department of Parks and Recreation to accept and use the officially licensed logos, emblems, or trademarks, as applicable, provided by California professional sports franchises for the specialized license plates in a design that the department determines, in consultation with the Department of the California Highway Patrol, does not obscure the readability of the license plate.
Existing law establishes a specialized license plate program and requires the Department of Motor Vehicles to issue specialized license plates if a sponsoring state agency meets certain requirements. Existing law requires that the department charge specified additional fees for the issuance, renewal, or transfer of specialized license plates.This bill would make technical, nonsubstantive changes to those provisions.Existing law establishes a specialized license plate program and requires the Department of Motor Vehicles to issue specialized license plates if a sponsoring state agency meets certain requirements. Existing law requires that the department charge specified additional fees for the issuance, renewal, or transfer of specialized license plates.
This bill would make technical, nonsubstantive changes to those provisions.
The design criteria for a specialized license plate are as follows:
(a)Except as provided in Section 5161, 5161 and 5165, the license plate for a passenger vehicle, commercial vehicle, or trailer shall provide a space not larger than two inches by three inches to the left of the numerical series and a space not larger than five-eighths of an inch in height below the numerical series for a distinctive design, decal, or descriptive message as authorized by this article. The license plates shall be issued in sequential numerical order or, pursuant to Section 5103, in a combination of numbers or letters.
(b)Specialized license plates authorized under this article may be issued for use on a motorcycle. That license plate shall contain a five-digit configuration issued in sequential numerical order or, pursuant to Section 5103, in a combination of numbers or letters. There shall be a space to the left of the numerical series for a distinctive design or decal and the characters shall contrast sharply with the uniform background color. A motorcycle plate containing a full plate graphic design is not authorized.
(c)Specialized license plates may be issued as environmental license plates, as defined in Section 5103.
SEC. 2.Section 5165 is added to the Vehicle Code, to read:5165.(a)The Department of Parks and Recreation shall apply to the department to sponsor a professional sports franchise license plate program pursuant to this article. The Department of Parks and Recreation shall enter into a memorandum of understanding with each California professional sports franchise that will participate in the program authorizing the use of officially licensed logos, emblems, and trademarks provided by the professional sports franchise for the license plates. The department shall issue specialized license plates for that program if the Department of Parks and Recreation complies with the requirements of Section 5156.
(b)The Department of Parks and Recreation shall accept and use the officially licensed logos, emblems, or trademarks, as applicable, provided by California professional sports franchises for the license plates in a design that, notwithstanding Section 5155, the department determines, in consultation with the Department of the California Highway Patrol, does not obscure the readability of the license plate.
(c)The fees specified in Section 5157 shall be imposed for the issuance, renewal, or transfer of the professional sports franchise specialized license plates. Notwithstanding subdivision (c) of Section 5157, after deducting its administrative costs, the department shall deposit the revenue derived from the additional fees into the California State Parks Account, which is hereby established in the Specialized License Plate Fund.
(d)Upon appropriation by the Legislature, the moneys in the California State Parks Account shall be allocated to the Department of Parks and Recreations Office of Grants and Local Services. There shall not be an allocation to the Department of Parks and Recreation pursuant to subdivision (c) of Section 5157.
(e)The funds shall be used by the Department of Parks and Recreations Office of Grants and Local Services for funding operations and maintenance of state parks and recreation grant programs.
SECTION 1.Section 5156 of the Vehicle Code is amended to read:5156.(a)(1)A state agency may apply to the department to sponsor a specialized license plate program, and the department shall issue specialized license plates for that program, if the agency complies with all of the requirements of this article.(2)The department shall not issue specialized license plates to a state agency for a vehicle that is exempt from the payment of registration fees pursuant to Section 9101 or 9103.(b)Except as provided in subdivision (d), the department shall not establish a specialized license plate program for an agency until the department has received at least 7,500 applications for that agencys specialized license plates. The agency shall collect and hold applications for the plates. Once the agency has received at least 7,500 applications, it shall submit the applications, along with the necessary fees, to the department. The department shall not issue a specialized license plate until the agency has received and submitted to the department not less than 7,500 applications for that particular specialized license plate within the time period prescribed in this section. Advance payment to the department by the agency representing the departments estimated or actual administrative costs associated with the issuance of a particular specialized license plate shall not constitute compliance with this requirement. The agency shall have 12 months, following the date of approval of the agencys initial application to sponsor a specialized license plate program, to receive the required number of applications. If, after those 12 months, 7,500 applications have not been received, the agency shall immediately do either of the following:(1)Refund to all applicants all fees or deposits that have been collected.(2)Contact the department to indicate the agencys intent to undertake collection of additional applications and fees or deposits for an additional period, not to exceed 12 months, in order to obtain the minimum 7,500 applications. If the agency elects to exercise the option under this subparagraph, it shall contact each applicant who has submitted an application with the appropriate fees or deposits 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 that time that the agency has received 7,500 applications. The agency shall refund the fees or deposits to an applicant so requesting. The agency shall not collect and hold applications for a period exceeding 24 months following the date of approval of the agencys initial application to sponsor a specialized license plate program.(c)(1)If the number of outstanding and valid specialized license plates in a particular program, except as provided in subdivision (d), provided for in this article is less than 7,500, the department shall notify the sponsoring agency of that fact and shall inform the agency that if that number is less than 7,500 one year from the date of that notification, the department will no longer issue or replace those specialized license plates.(2)Those particular specialized license plates that were issued prior to the discontinuation provided by paragraph (1) may continue to be used and attached to the vehicle for which they were issued and may be renewed, retained, or transferred pursuant to this code.(d)(1)The Department of Veterans Affairs may sponsor a Gold Star Family specialized license plate program and the department may establish this specialized license plate program in the absence of 7,500 paid applications as provided in subdivision (d) of Section 5157.(2)The Department of Veterans Affairs shall, upon receiving proof of eligibility from an applicant, authorize the department to issue Gold Star Family specialized license plates for a vehicle owned by an eligible family member of a member of the Armed Forces of the United States who was killed in the line of duty while on active duty during wartime service, or during an international terrorist attack that has been recognized by the United States Secretary of Defense as an attack against the United States or a foreign nation friendly to the United States, or during military operations while serving outside the United States, including commonwealths, territories, and possessions of the United States, or as part of a peacekeeping force, which includes personnel assigned to a force engaged in a peacekeeping operation authorized by the United Nations Security Council. An eligible family member is defined as all of the following:(A)A person who is otherwise eligible under this article to register a motor vehicle.(B)A person who shows proof from the United States Department of Veterans Affairs or the Department of Defense that the member who was in the Armed Forces of the United States was killed in the line of duty while on active duty in the military.(C)A person who bears, and shows proof satisfactory to the Department of Veterans Affairs of, one of the following relationships to the member of the Armed Forces killed in the line of duty while serving on active duty:(i)Widow.(ii)Widower.(iii)Biological parent.(iv)Adoptive parent.(v)Stepparent.(vi)Foster parent in loco parentis.(vii)Biological child.(viii)Adoptive child.(ix)Stepchild.(x)Sibling.(xi)Half-sibling.(xii)Grandparent.(xiii)Grandchild.(3)Upon the death of a person issued a Gold Star Family specialized license plate, the license plate shall be transferred to the surviving spouse, if he or she requests, or shall be returned to the department within 60 days after the death of the plateholder or upon the expiration of the vehicle registration, whichever occurs first.(e)(1)The Department of Veterans Affairs shall apply to the department to sponsor a veterans specialized license plate program, and the department shall issue license plates for that program if the Department of Veterans Affairs meets the requirements prescribed by this section.(2)The design of the veterans specialized license plate shall be identical to the design of the veterans special interest license plate issued pursuant to Section 5068 on or before January 1, 2010, and the decals for the plate shall be identical to those offered pursuant to Section 5068.(3)Notwithstanding Section 5157, in addition to the regular fees for an original registration, a renewal of registration, or a transfer of registration, the following fees shall be paid by individuals applying for a special interest license plate or a decal issued under this subdivision:(A)Fifty dollars ($50) for the initial issuance of the plates and decals. The plates shall be permanent and shall not be required to be replaced.(B)Forty dollars ($40) for each renewal of registration that includes the continued display of the plates or decals.(C)Fifteen dollars ($15) for transfer of the plates to another vehicle.(D)Thirty-five dollars ($35) for replacement plates, if they become damaged or unserviceable.(E)Ten dollars ($10) for replacement decals, if they become damaged or unserviceable.(F)Seventy-eight dollars ($78) for the personalization of the plates.(4)After deducting its administrative costs under this subdivision, the department shall deposit the revenue derived from the additional fees provided in paragraph (3) in the Veterans Service Office Fund created by Section 972.2 of the Military and Veterans Code.(a)(1)A state agency may apply to the department to sponsor a specialized license plate program, and the department shall issue specialized license plates for that program, if the agency complies with all of the requirements of this article.
(2)The department shall not issue specialized license plates to a state agency for a vehicle that is exempt from the payment of registration fees pursuant to Section 9101 or 9103.
(b)Except as provided in subdivision (d), the department shall not establish a specialized license plate program for an agency until the department has received not less than at least 7,500 applications for that agencys specialized license plates. The agency shall collect and hold applications for the plates. Once the agency has received at least 7,500 applications, it shall submit the applications, along with the necessary fees, to the department. The department shall not issue a specialized license plate until the agency has received and submitted to the department not less than 7,500 applications for that particular specialized license plate within the time period prescribed in this section. Advance payment to the department by the agency representing the departments estimated or actual administrative costs associated with the issuance of a particular specialized license plate shall not constitute compliance with this requirement. The agency shall have 12 months, following the date of approval of the agencys initial application to sponsor a specialized license plate program, to receive the required number of applications. If, after that those 12 months, 7,500 applications have not been received, the agency shall immediately do either of the following:
(1)Refund to all applicants all fees or deposits that have been collected.
(2)Contact the department to indicate the agencys intent to undertake collection of additional applications and fees or deposits for an additional period, not to exceed 12 months, in order to obtain the minimum 7,500 applications. If the agency elects to exercise the option under this subparagraph, it shall contact each applicant who has submitted an application with the appropriate fees or deposits 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 that time that the agency has received 7,500 applications. The agency shall refund the fees or deposits to an applicant so requesting. The agency shall not collect and hold applications for a period exceeding 24 months following the date of approval of the agencys initial application to sponsor a specialized license plate program.
(c)(1)If the number of outstanding and valid specialized license plates in a particular program, except as provided in subdivision (d), provided for in this article is less than 7,500, the department shall notify the sponsoring agency of that fact and shall inform the agency that if that number is less than 7,500 one year from the date of that notification, the department will no longer issue or replace those specialized license plates.
(2)Those particular specialized license plates that were issued prior to the discontinuation provided by paragraph (1) may continue to be used and attached to the vehicle for which they were issued and may be renewed, retained, or transferred pursuant to this code.
(d)(1)The Department of Veterans Affairs may sponsor a Gold Star Family specialized license plate program and the department may establish this specialized license plate program in the absence of 7,500 paid applications as provided in subdivision (d) of Section 5157.
(2)The Department of Veterans Affairs shall, upon receiving proof of eligibility from an applicant, authorize the department to issue Gold Star Family specialized license plates for a vehicle owned by an eligible family member of a member of the Armed Forces of the United States who was killed in the line of duty while on active duty during wartime service, or during an international terrorist attack that has been recognized by the United States Secretary of Defense as an attack against the United States or a foreign nation friendly to the United States, or during military operations while serving outside the United States, including commonwealths, territories, and possessions of the United States, or as part of a peacekeeping force, which includes personnel assigned to a force engaged in a peacekeeping operation authorized by the United Nations Security Council. An eligible family member is defined as all of the following:
(A)A person who is otherwise eligible under this article to register a motor vehicle.
(B)A person who shows proof from the United States Department of Veterans Affairs or the Department of Defense that the member who was in the Armed Forces of the United States was killed in the line of duty while on active duty in the military.
(C)A person who bears, and shows proof satisfactory to the Department of Veterans Affairs of, one of the following relationships to the member of the Armed Forces killed in the line of duty while serving on active duty:
(i)Widow.
(ii)Widower.
(iii)Biological parent.
(iv)Adoptive parent.
(v)Stepparent.
(vi)Foster parent in loco parentis.
(vii)Biological child.
(viii)Adoptive child.
(ix)Stepchild.
(x)Sibling.
(xi)Half-sibling.
(xii)Grandparent.
(xiii)Grandchild.
(3)Upon the death of a person issued a Gold Star Family specialized license plate, the license plate shall be transferred to the surviving spouse, if he or she requests, or shall be returned to the department within 60 days after the death of the plateholder or upon the expiration of the vehicle registration, whichever occurs first.
(e)(1)The Department of Veterans Affairs shall apply to the department to sponsor a veterans specialized license plate program, and the department shall issue license plates for that program if the Department of Veterans Affairs meets the requirements prescribed by this section.
(2)The design of the veterans specialized license plate shall be identical to the design of the veterans special interest license plate issued pursuant to Section 5068 on or before January 1, 2010, and the decals for the plate shall be identical to those offered pursuant to Section 5068.
(3)Notwithstanding Section 5157, in addition to the regular fees for an original registration, a renewal of registration, or a transfer of registration, the following fees shall be paid by individuals applying for a special interest license plate or a decal issued under this subdivision:
(A)Fifty dollars ($50) for the initial issuance of the plates and decals. The plates shall be permanent and shall not be required to be replaced.
(B)Forty dollars ($40) for each renewal of registration that includes the continued display of the plates or decals.
(C)Fifteen dollars ($15) for transfer of the plates to another vehicle.
(D)Thirty-five dollars ($35) for replacement plates, if they become damaged or unserviceable.
(E)Ten dollars ($10) for replacement decals, if they become damaged or unserviceable.
(F)Seventy-eight dollars ($78) for the personalization of the plates.
(4)After deducting its administrative costs under this subdivision, the department shall deposit the revenue derived from the additional fees provided in paragraph (3) in the Veterans Service Office Fund created by Section 972.2 of the Military and Veterans Code.
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Date
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Status
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|---|---|
| Jun 7, 2018 | Referred to Com. on TRANS. |
| May 31, 2018 | In Assembly. Read first time. Held at Desk. |
| May 31, 2018 | Read third time. Passed. (Ayes 39. Noes 0.) Ordered to the Assembly. |
| May 29, 2018 | Ordered to special consent calendar. |
| May 25, 2018 | Read second time. Ordered to third reading. |
| May 18, 2018 | Set for hearing May 25. |
| May 7, 2018 | May 7 hearing: Placed on APPR. suspense file. |
| Apr 27, 2018 | Set for hearing May 7. |
| Apr 25, 2018 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 11. Noes 0.) (April 24). Re-referred to Com. on APPR. |
| Apr 11, 2018 | Set for hearing April 24. |
| Apr 4, 2018 | Re-referred to Com. on T. & H. |
| Apr 2, 2018 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Mar 1, 2018 | Referred to Com. on RLS. |
| Feb 16, 2018 | From printer. May be acted upon on or after March 18. |
| Feb 15, 2018 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
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Date
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Description
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Location
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Votes
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|---|---|---|---|---|
| May 31, 2018 | Special Consent SB1189 | Senate Floor |
Passed |
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| May 25, 2018 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| May 7, 2018 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 24, 2018 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Transportation and Housing |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
THIRD READING
Bill No: SB 1189
:
SENATE TRANS. & HOUSING COMMITTEE: 11-0, 4/24/18
AYES: Beall, Cannella, Allen, Dodd, Gaines, Galgiani, McGuire, Roth, Skinner, Vidak, Wiener
NO VOTE RECORDED: Morrell, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/25/18
AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener
DIGEST:
This bill requires the Department of Parks and Recreation (DPR) to apply to the Department of Motor Vehicles (DMV) to sponsor a professional sports franchise license plate.
Existing law:
- Provides for a specialized license plate program, under which the 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:
- 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).
- 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.
- Authorizes DMV to charge, in addition to the usual registration and license fees, 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:
- Requires the DPR to apply to the DMV to sponsor a professional sports franchise license plate.
- Requires the DPR to negotiate agreements with California professional sports franchises for use of their licensed logos, which will be used on the license plates.
- Provides that funds raised from these license plates shall go to the DPR’s Office of Grants and Local Services for funding the operations and maintenance of state parks and recreation areas.
Comments
- Author’s statement. California’s state parks are the state’s most valued natural, cultural, educational and historic resource. California’s 270 state parks faced deep cuts during the recession and still have not fully recovered. Allowing California drivers the option to pay additional fees for a Specialized Sports License plate could be the solution to finding a sustainable funding source for our parks.
- History of special-interest license plates. The DMV is required 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 paid specified fees, provided that the sponsoring organization met certain conditions. These conditions included that the sponsor of a special-interest license plate 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.
- Secret to success. California has many professional sports teams and as written this bill requires each plate for each team to meet the 7,500 threshold, a difficult threshold to meet (see below). Success may come easier if this plate were modeled on the Veterans’ Organizations license plate. This single plate contains a blank space in which a decal for the specific veterans’ organization is placed, accommodating multiple veterans’ organizations.
- One more. California currently offers 14 specialty license plates: Breast Cancer Awareness, California Agriculture, Arts Council, California Museums, Collegiate, Environmental, Help Our Kids, Lake Tahoe Conservancy, Memorial, Pet Lovers, Veterans’ Organizations, Whale Tail (Coastal Commission), Yosemite Conservancy, and 60’s Legacy.
- Outlook is poor. The track record of specialty license plates reaching the 7,500 threshold is poor. Of the 12 legislatively sponsored plates approved in the last two decades, only two have met the threshold (60’s Legacy, Breast Cancer Awareness).
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Senate Appropriations Committee:
- For each sports franchise that enters into a memorandum of understanding 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 in the range of $100,000 to $150,000 to produce the plates and process the applications, (depending on how many plates are personalized), and an additional $460,000 in programming and other implementation costs, likely in 2019-20 or 2020-21, partially offset by pre-paid application fees of $375,000, leaving a net cost in the range of $185,000 to $235,000 in the first year (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 2019-20, 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, likely significant ongoing revenues to DPR for funding operations and maintenance of state parks and for 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.
- Diversion of funding for personalizing a professional sports franchise plate from the California Environmental License Plate Fund to the special fund created by this bill.
None received
OPPOSITION: (Verified 5/25/18)
None received
5/26/18 15:11:26
**** END ****
SENATE COMMITTEE ON
Senator Ricardo Lara, Chair
2017 - 2018 Regular Session
SB 1189 (Newman) - Specialized license plates
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
SB 1189 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.
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 in the range of $100,000 to $150,000 to produce the plates and process the applications, (depending on how many plates are personalized), and an additional $460,000 in programming and other implementation costs, likely in 2019-20 or 2020-21, partially offset by pre-paid application fees of $375,000, leaving a net cost in the range of $185,000 to $235,000 in the first year (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 2019-20, 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, likely significant ongoing revenues to DPR for funding operations and maintenance of state parks and for 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.
- Diversion of funding for personalizing a professional sports franchise plate from the California Environmental License Plate Fund to the special fund 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.
As of 2015, 25 states and Washington D.C. had 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 approximately $3 billion in grant funding throughout the state.
Proposed Law:
SB 1189 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 DPR to accept and use the officially licensed logos, emblems, and trademarks provided by the professional sports franchises for the license plate.
- Require DMV to work with the California Highway Patrol to ensure that the logos and design do not obscure the readability of the plate.
- Establish the California State Parks Account in the Specialized License Plate Fund and require the revenues to be used by DPR for funding operations and maintenance of state parks and recreation grant programs, upon appropriation by the Legislature to OGALS.
Related Legislation:
AB 932 (Daly), which was held on this Committee’s Suspense File in 2015, would have required DPR to apply to DMV to sponsor a professional sports franchise specialized license plate program, upon entering into an MOU with a California professional sports franchise. The bill would have authorized DMV to increase specified license plate fees for sports franchise plates and required the increased revenues to be used for charitable purposes, upon appropriation to a nonprofit organization specified in the MOU by the Legislature, as specified.
SB 1112 would require the Department of Housing and Community Development to apply to the DMV to sponsor a housing supportive services specialized license plate program.
SB 1357 (Gaines), which is currently pending in this Committee, would require the California Department of Veterans Affairs to adopt, and the DMV to implement, two descriptive messages as part of the distinctive design for specialized plates for veterans.
SB 1455 (Stern), which is currently pending in this Committee, would require the California Coastal Commission to apply to DMV to sponsor an “Endless Summer” specialized license 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 more 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 professional sports franchises.
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 a new special fund for allocation to DPR, 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 fund established by this bill.
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SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2017 - 2018 Regular
Bill No: Hearing Date: 4/24/2018
Author: | Newman | ||
Version: | 4/2/2018 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Randy Chinn | ||
SUBJECT:
DIGEST: This bill requires the Department of Parks and Recreation (DPR) to apply to the Department of Motor Vehicles (DMV) to sponsor a professional sports franchise license plate.
ANALYSIS:
Existing law:
- Provides for a specialized license plate program, under which the 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:
- 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).
- 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.
- Authorizes DMV to charge, in addition to the usual registration and license fees, 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:
Requires the DPR to apply to the DMV to sponsor a professional sports franchise license plate.
- Requires the DPR to negotiate agreements with California professional sports franchises for use of their licensed logos, which will be used on the license plates.
- Provides that funds raised from these license plates shall go to the DPR’s Office of Grants and Local Services for funding the operations and maintenance of state parks and recreation areas.
COMMENTS
- Author’s Statement. California’s state parks are the state’s most valued natural, cultural, educational and historic resource. California’s 270 state parks faced deep cuts during the recession and still have not fully recovered. Allowing California drivers the option to pay additional fees for a Specialized Sports License plate could be the solution to finding a sustainable funding source for our parks.
- History of special-interest license plates. The DMV is required 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 paid specified fees, provided that the sponsoring organization met certain conditions. These conditions included that the sponsor of a special-interest license plate 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.
- Secret to Success. California has many professional sports teams and as written this bill would require each plate for each team to meet the 7,500 threshold, a difficult threshold to meet (see below). Success may come easier if this plate were modeled on the Veterans’ Organizations license plate. This single plate contains a blank space in which a decal for the specific veterans’ organization is placed, accommodating multiple veterans’ organizations.
- One More. California currently offers 14 specialty license plates: Breast Cancer Awareness, California Agriculture, Arts Council, California Museums, Collegiate, Environmental, Help Our Kids, Lake Tahoe Conservancy, Memorial, Pet Lovers, Veterans’ Organizations, Whale Tail (Coastal Commission), Yosemite Conservancy, and 60’s Legacy.
- Outlook is poor. The track record of specialty license plates reaching the 7,500 threshold is poor. Of the 12 legislatively sponsored plates approved in the last two decades, only two have met the threshold (60’s Legacy, Breast Cancer Awareness).
Related Legislation:
SB 1112 (Roth, 2018) — Establishes a supportive services license plate; pending in the Senate Transportation and Housing Committee.
SB 1357 (Gaines, 2018) — Establishes a veterans license plate; pending in the Senate Transportation and Housing Committee.
SB 1455 (Stern, 2018) — Establishes a surfing license plate; pending in the Senate Transportation and Housing Committee.
SB 309 (Jackson, 2017) —Establishes a reproductive freedom fund license plate; held in the Assembly Appropriations committee.
AB 932 (Daly, 2016) —Establishes a professional sports license plate; held in the Senate Appropriations committee.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
POSITIONS: (Communicated to the committee before noon on Wednesday,
April 18, 2018.)
SUPPORT:
None received.
OPPOSITION:
None received.
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Bill Author
Bill Co-Author(s):