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.