BILL NUMBER: AB 84 CHAPTERED
BILL TEXT
CHAPTER 454
FILED WITH SECRETARY OF STATE SEPTEMBER 25, 2006
APPROVED BY GOVERNOR SEPTEMBER 25, 2006
PASSED THE ASSEMBLY AUGUST 24, 2006
PASSED THE SENATE AUGUST 22, 2006
AMENDED IN SENATE AUGUST 14, 2006
AMENDED IN SENATE JUNE 13, 2006
AMENDED IN SENATE JULY 7, 2005
AMENDED IN ASSEMBLY MAY 26, 2005
AMENDED IN ASSEMBLY APRIL 11, 2005
AMENDED IN ASSEMBLY FEBRUARY 7, 2005
INTRODUCED BY Assembly Members Leslie and Laird
JANUARY 5, 2005
An act to add Section 5060.1 to, and to add Article 8.6
(commencing with Section 5151) to Chapter 1 of Division 1 of, the
Vehicle Code, relating to vehicles.
LEGISLATIVE COUNSEL'S DIGEST
AB 84, Leslie Vehicles: specialized license plates.
Existing law requires the Department of Motor Vehicles to issue
certain special interest license plates, including specific special
environmental design license plates, in accordance with a specified
procedure. Existing law requires, before special interest license
plates may be issued, at least 7,500 applications for the special
interest license plates to be received by the department.
This bill would prohibit the department from accepting an
application for participation in a special interest license plate
program and from issuing license plates for a new special interest
license plate program.
The bill would establish a new specialized license plate program
that would require the issuance of those license plates to have a
design or contain a message that publicizes or promotes a state
agency, as defined, or the official policy, mission, or work of a
state agency. The bill would subject the issuance of those license
plates to requirements, similar to certain of the requirements in
current law governing special interest license plates. The bill would
prohibit the department from issuing specialized license plates for
state vehicles that are exempt from paying registration fees. The
bill would require the department, after deducting its administrative
costs under these provisions, to deposit the additional revenue
derived from the issuance, renewal, transfer, and substitution of the
specialized license plates in the Specialized License Plate Fund,
which the bill would establish in the State Treasury. Upon
appropriation by the Legislature, the moneys in that fund would be
allocated to each sponsoring agency, in proportion to the amount in
the fund that is attributable to the agency's specialized license
plate program. The bill would also require the sponsoring agency to
expend all funds received under these provisions exclusively for
projects and programs that promote the state agency's official
policy, mission, or work, except as specified, and would penalize the
sponsoring agency that does not comply with those requirements.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) The United States District Court for the Eastern District of
California in The Women's Resource Network v. Steven Gourley (2004)
305 F. Supp. 2d 1145 permanently enjoined the Director of the
California Department of Motor Vehicles from issuing any new special
interest license plate to private, nonprofit organizations under the
current provisions of Section 5060 of the California Vehicle Code,
unless the state establishes "neutral criteria to insure that the
(plate) licensing decision is not based on the content or viewpoint
of the speech being considered."
(b) The court did not enjoin the Director of the Department of
Motor Vehicles from issuing a special interest license plate that is
government speech that promotes California's state policies.
(c) This bill intends to clarify the framework for specialized
license plates that contain only government speech, leaving the issue
of special interest license plates designed for the benefit of
private entities to other legislation.
(d) Revenue generated from special license plate programs
provides a positive way to supplement funding for important
governmental programs without cost to the General Fund or an increase
in taxes.
SEC. 2. Section 5060.1 is added to the Vehicle Code, to read:
5060.1. Notwithstanding Section 5060 or any other provision of
law to the contrary, the department shall not accept an application
for participation in a special interest license plate program under
Section 5060 and shall not issue, under Section 5060, special
interest license plates for a new program.
SEC. 3. Article 8.6 (commencing with Section 5151) is added to
Chapter 1 of Division 1 of the Vehicle Code, to read:
Article 8.6. Specialized License Plates
5151. (a) As used in this article, "state agency" means a state
office, officer, department, division, bureau, board, or commission,
or any other state body or agency.
(b) It is the intent of the Legislature that this article contain
the authority for specialized license plates for state agencies.
5152. A person described in Section 5101 may apply for a
specialized license plate under this article, in lieu of regular
license plates.
5154. 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.
5155. The design criteria for a specialized license plate are as
follows:
(a) 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.
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) The department shall not establish a specialized license plate
program for an agency until the department has received not less
than 7,500 applications for that agency's 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 department's 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 agency's initial application to sponsor a
specialized license plate program, to receive the required number of
applications. If, after that 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 agency's 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 agency's 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 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.
5157. (a) In addition to the regular fees for an original
registration or renewal of registration, the following additional
fees shall be paid for the issuance, renewal, or transfer of the
specialized license plates:
(1) For the original issuance of the plates, fifty dollars ($50).
(2) For a renewal of registration with the plates, forty dollars
($40).
(3) For transfer of the plates to another vehicle, fifteen dollars
($15).
(4) For each substitute replacement plate, thirty-five dollars
($35).
(5) In addition, for the issuance of environmental license plates,
as defined in Section 5103, with a specialized license plate design,
the additional fees prescribed in Sections 5106 and 5108. The
additional fees prescribed in Sections 5106 and 5108 shall be
deposited in the California Environmental License Plate Fund.
(b) Except as provided in paragraph (5) of subdivision (a), and
after deducting its administrative costs under this section, the
department shall deposit the additional revenue derived from the
issuance, renewal, transfer, and substitution of the specialized
license plates in the Specialized License Plate Fund, which is hereby
established in the State Treasury. Upon appropriation by the
Legislature, the moneys in that fund shall be allocated to each
sponsoring agency, in proportion to the amount in the fund that is
attributable to the agency's specialized license plate program.
Except as authorized under Section 5159, the sponsoring agency shall
expend all funds received under this section exclusively for projects
and programs that promote the state agency's official policy,
mission, or work.
5158. When payment of renewal fees is not required as specified
in Section 4000, or when a person determines to retain the
specialized license plate upon a sale, trade, or other release of the
vehicle upon which the plate has been displayed, the person shall
notify the department and the person may retain and use the plate as
authorized by departmental regulations.
5159. A state agency that is eligible to participate in a
specialized license plate program pursuant to this article and
receives funds from the additional fees collected from the sale of
specialized plates shall not expend annually more than 25 percent of
those funds on administrative costs, marketing, or other promotional
activities associated with encouraging application for, or renewal
of, the specialized plates.
5160. (a) A state agency authorized under this article to offer
specialized license plates shall prepare and submit an annual
accounting report to the department by June 30. The report shall
include an accounting of all revenues and expenditures associated
with the specialized license plate program.
(b) If a state agency submits a report pursuant to subdivision (a)
indicating that the agency violated the expenditure restriction set
forth in Section 5159, the department shall immediately cease
depositing fees for that agency's specialized license plate program
in the Specialized License Plate Fund established under Section 5157
and, instead, shall deposit those fees that would have otherwise been
deposited in that fund in a separate fund created by the Controller,
which fund is subject to appropriation by the Legislature. The
department shall immediately notify the agency of this course of
action. The depositing of funds in the account established pursuant
to this paragraph shall continue until the agency demonstrates to the
satisfaction of the department that the agency is in compliance or
will comply with the requirements of Section 5159. If one year from
the date that the agency receives the notice described in this
paragraph, the agency is still unable to satisfactorily demonstrate
to the department that it is in compliance or will comply with the
requirements of Section 5159, the department shall no longer issue or
replace those specialized license plates associated with that
agency. Those particular specialized license plates that were issued
prior to the discontinuation provided by this subdivision 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.
(c) Upon receiving the reports required under subdivision (a),
notwithstanding Section 7550.5 of the Government Code, the department
shall prepare and transmit an annual consolidated report to the
Legislature containing the revenue and expenditure data.
SEC. 4. (a) If Senate Bill 651 is not enacted during the 2005-06
Regular Session, or is enacted during that session but does not
establish a special interest license plate program, Sections 2 and 3
of this act shall become operative on the effective date of this act.
(b) If Senate Bill 651 is enacted during the 2005-06 Regular
Session and establishes a special interest license plate program,
Sections 2 and 3 of this act shall not become operative, except as
required under subdivision (c).
(c) If Senate Bill 651 is enacted during the 2005-06 Regular
Session and establishes a special interest license plate program, but
that program is later held to be unconstitutional, or is otherwise
rendered inoperative, by the final judgment of a court of competent
jurisdiction, Sections 2 and 3 of this act shall become operative on
the effective date of that judgment.