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. AB 49 Page 2 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 Page 3 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