BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 49
                                                                  Page  1

          Date of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 49 (Buchanan) - As Amended:  April 18, 2013 

          Policy Committee:                               
          TransportationVote:16-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires the Department of Health Care Services (DHCS)  
          to apply to the DMV to sponsor a breast cancer awareness license  
          plate program. Specifically, this bill: 

          1)Requires, contrary to current law, that the license plates  
            bear a full-plate graphic, rather than cover only a two-inch  
            by three-inch area of the license plate, and specifies a pink  
            background and pink breast cancer awareness ribbon.  The  
            design must be approved by DHCS and done in consultation with  
            the CHP, to ensure readability of the license plate.

          2)Stipulates that, after deducting for DMV administrative costs,  
            license plate revenues shall be deposited into the Breast  
            Cancer Control Account, which provides early breast cancer  
            detection services for uninsured and underinsured women.

           FISCAL EFFECT  

          1)Potential one-time special fund costs of approximately  
            $400,000 to DMV to establish the breast cancer awareness  
            license plate program, including computer programming changes  
            and updating of forms. Pursuant to current law, DMV will make  
            computer programming and form changes only after program  
            applications meet the 7,500-application threshold. Given the  
            widespread awareness of and interest in breast cancer  
            prevention, this threshold is likely to be surpassed. The DMV  
            will incur minor ongoing costs to continue issuing specialty  
            license plates and renewals under the program. All of the DMV  
            initial and ongoing costs will be covered by a portion of the  
            additional $50 fee paid for specialized license plates.








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          2)Minor costs to DHCS to submit the program application and  
            license prototype to DMV, design and print the license plate  
            application, and collect and hold applications and fees until  
            7,500 applications are received. It is expected that the  
            department will receive assistance with these activities from  
            nonprofit organizations interested in this program. The  
            department's costs will eventually be recovered assuming  
            sufficient participation in the program.

          3)Potential ongoing additional revenue to the Breast Cancer  
            Control Account, depending on the number of participants in  
            the license plate program. According to the Governor's budget,  
            this account will have expenditures totaling about $11.3  
            million in 2012-13.


           

          COMMENTS  

           1)Purpose  . Breast cancer is the second most common cancer (after  
            skin cancer) among American women. About one in eight women in  
            this country will develop invasive breast cancer during their  
            lifetime. Annual screenings and mammograms help women detect a  
            cancer early so they can seek treatment. The additional  
            revenues generated through the specialized license plate  
            program authorized in AB 49 are intended to supplement the  
            Every Woman Counts Program, which provides free and low-cost  
            breast screenings and mammograms to women throughout  
            California. 
          
          2)Specialized License Plates  . 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)/ Chapter 91 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  








                                                                  AB 49
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            avoid a proliferation of different types of plates, which can  
            be troublesome from a law enforcement perspective.

           3)Design  . AB 84 of 2006 also limited the distinctive feature of  
            a specialized license plate to a two-inch by three inch area,  
            whereas AB 49 requires a full-plate design. The author is  
            concerned that a more limiting design will make it more  
            difficult to reach the 7,500-application threshold.

           4)Prior Legislation  . As described above, AB 49 is contrary to  
            certain parameters of AB 84, which as discussed above, was  
            enacted in response to a federal court decision. Nevertheless,  
            AB 49 does mirror provisions of SB 1018 (Senate Budget and  
            Fiscal Review)-a trailer bill to the 2012-13 Budget Act-which  
            requires the Department of Parks and Recreation to apply to  
            DMV for a full-plate design specialty license plate for  
            preservation and restoration of state parks.

           5)Related Legislation  . AB 482 (Atkins), also on today's  
            committee agenda, requires the California Cultural and  
            Historical Endowment to apply to DMV for a specialized license  
            plate to fund a program providing grants for small projects at  
            the state's museums.

            AB 1096 (Nestande), pending in Assembly Transportation,  
            authorizes the Salton Sea Joint Powers Authority to apply to  
            the DMV for a specialized license plate bearing.  

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