BILL ANALYSIS                                                                                                                                                                                                    Ó






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 1454
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  la malfa
                                                         VERSION: 4/11/12
          Analysis by:  Carrie Cornwell                  FISCAL:  yes
          Hearing date:  April 24, 2012



          SUBJECT:

          Eight-character license plates

          DESCRIPTION:

          This bill authorizes the creation of eight-character 
          personalized license plates and directs the proceeds from the 
          additional fees paid for this plate to the Williamson Act, state 
          and local fairs, and state parks.

          ANALYSIS:

          Currently, the Department of Motor Vehicles (DMV) issues 
          California license plates with seven characters.  Existing law 
          requires that license plates, other than those for motorcycles, 
          be a rectangle that is 12 inches long and 6 inches wide.  Each 
          character must have a minimum height of 2 inches and a minimum 
          width of 1 inches.  Existing law requires a minimum space of
          5/16  inches between characters. 

          Existing law establishes a basic vehicle registration fee of 
          $46, plus a $23 surcharge for additional personnel for the 
          California Highway Patrol (CHP).   A vehicle owner may request 
          an "environmental license plate" (ELP) when registering his or 
          her vehicle.  An ELP is a personalized license plate (sometimes 
          referred to as a "vanity plate") that DMV issues in a 
          combination of letters, or numbers, or both, that the vehicle 
          owner selects.  

          ELP fees are $48 for issuance of the plate, $38 for renewal, $38 
          for duplicate plates, and $38 for transfer.  Existing law 
          provides that revenue derived from these fees shall be deposited 
          in the California Environmental License Plate Fund.  Initially 
          authorized in 1979, the ELP Fund supports a variety of state 
          activities that have some environmental connection. 

           This bill  :




          SB 1454 (LA MALFA)                                     Page 2

                                                                       


          
          1.Reduces the minimum width for license plate characters to 
            13/16 inches and reduces the minimum space between characters 
            to  inch.

          2.Permits a vehicle owner to apply to DMV for an 8-character 
            license plate, in lieu of a regular license plate, that 
            displays the 8-character message of the vehicle owner's 
            choice, provided it does not duplicate an existing plate, does 
            not carry connotations offensive to good taste and decency or 
            which are misleading, and the owner pays an additional fee of 
            $48 for issuance of the plate and $38 annually for renewal.  
            In addition, a vehicle owner shall pay a $38 additional fee 
            for duplicate plates or to transfer the plates to another 
            vehicle. 

          3.Allows the state to use not more than 50 cents per 
            eight-character license plate to promote the program.

          4.Provides detailed direction to DMV on how it shall promote the 
            eight-character license plate on its website, forms, 
            publications, and signs.

          5.Directs funds raised from the issuance and renewal of 
            8-character vanity plates to the Natural and Agricultural Open 
            Space and State Recreation Support Fund, which the bill 
            creates.  Upon appropriation by the Legislature, the bill 
            allocates these funds equally between Williamson Act 
            Subventions, assistance to the Department of Food and 
            Agriculture for California fairs, and support of the 
            Department of Parks and Recreation.

          COMMENTS:

           1.Purpose  .  The author introduced this bill to generate 
            additional funds during difficult economic times.  He believes 
            that providing for an 8th character on California's vanity 
            plates would significantly increase the number of potential 
            possibilities for prospective license plate buyers.  He notes 
            that this is a way to generate new revenues without raising 
            taxes or mandating the payment of new fees.  He notes that 
            recent state budgets have cut nearly all funding for the 
            Williamson Act and county fairs and agriculture activities.  
            County, district, and other local fairs now struggle to stay 
            alive.  Lack of funding for the Williamson Act subventions 
            will limit local governments' incentives to enter into these 




          SB 1454 (LA MALFA)                                     Page 3

                                                                       


            contracts and result in reductions to open spaces in 
            California.  He notes that state budget cuts are also 
            resulting in the pending closure of 70 state parks.  

           2.Tracks rules for existing personalized plates  .  This bill 
            provides identical direction to DMV for the eight-character 
            personalized plate that exists for the long-standing ELP 
            program, including direction on how to resolve disputes when 
            DMV finds a plate offensive to good taste and decency but the 
            applicants disagrees.

           3.ELP Revenues  .  DMV reports that for the 2010-11 Fiscal Year it 
            remitted $41.6 million to the ELP fund, representing the 
            revenues, after DMV subtracts its administrative costs, from 
            all additional fees resulting from the personalization of 
            license plates.  It is not known how much beyond that amount 
            offering an eighth-character on personalized plates, as this 
            bill does, would generate.

           4.Competition for environmental license plate  .  Allowing the new 
            eight-character personalized plate will likely divert some 
            level of business from the existing ELP program.  In that 
            sense, this bill is likely to divert existing resources from 
            current recipients of ELP fund revenues to the author's new 
            priorities.   
          
          POSITIONS:  (Communicated to the committee before noon on 
          Wednesday,                                             April 18, 
          2012)

               SUPPORT:  None received.

          
               OPPOSED:  None received.