BILL ANALYSIS Ó SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: AB 49 SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: BUCHANAN VERSION: 7/1/13 Analysis by: Carrie Cornwell FISCAL: YEs Hearing date: July 9, 2013 SUBJECT: Special interest license plates DESCRIPTION: This bill requires the Department of Health Care Services to apply to the Department of Motor Vehicles to establish a special interest license plate that promotes breast cancer awareness. ANALYSIS: Any state agency, including the Department of Health Care Services, may sponsor a special interest license plate pursuant to AB 84 (Leslie), Chapter 454, Statutes of 2006. Under AB 84, the Department of Motor Vehicles (DMV) may issue new special interest license plates only on behalf of state agencies and only provided that for each state agency: The license plate has "a design or contains a message that publicizes or promotes a state agency, or the official policy, mission, or work of a state agency." The design shall also be confined to the left of and below the numerical series (i.e., no full plate designs allowed). The state agency submits 7,500 applications and accompanying fees to DMV for the license plate. The state agency has 12 months to collect these applications and fees, but it can extend that to a maximum of 24 months if it notifies and offers to refund fees to those who applied during the first 12 months. Once a plate is issued, DMV stops issuing that plate for the agency if the number of plates drops below 7,500. In addition to the usual registration and license fees, DMV charges the following additional fees for specialized license AB 49 (BUCHANAN) Page 2 plates: $50 for the initial issuance, $40 for annual renewal, and $98 to personalize. DMV deducts its administrative costs from the revenues generated. The net revenues derived from a specialized license plate is then available upon appropriation for the sponsoring state agency to expend exclusively on projects and programs that promote the state agency's official policy, mission, or work. A sponsoring state agency may not spend more that 25 percent of its license plate funds for administrative, marketing, and promotional costs associated with the plate, and it must submit an annual accounting report to DMV. This bill : 1.Requires the Department of Health Care Services to apply to DMV pursuant to AB 84 to sponsor a breast cancer awareness license plate program. The Department of Health Care Services may accept artwork donated by California artists for use on the license plate it sponsors. 2.Directs the revenues derived from this license plate, after paying DMV's costs, to the Breast Cancer Control Account in the Breast Cancer Fund. This account funds the "Every Woman Counts" program to provide early breast cancer detection services for uninsured and underinsured women. COMMENTS: 1.Purpose . The author introduced this bill to compel the Department of Health Care Services to sponsor a breast cancer awareness special interest license plate in order to raise awareness of the importance of breast cancer screenings and to increase funding for the state's Every Woman Counts program. Every Woman Counts is part of the Department of Health Care Service's Cancer Detection and Treatment Branch and provides free clinical breast exams, mammograms, pelvic exams, and Pap tests to California's underserved women. The mission of the program is to save lives by preventing and reducing the devastating effects of cancer for Californians through education, early detection, diagnosis, treatment, and integrated preventive services, with special emphasis on the underserved. 2.History of special interest license plates . Historically, the AB 49 (BUCHANAN) Page 3 Vehicle Code required DMV to issue, upon legislative authorization, a special interest license plate bearing a distinctive design or decal of a sponsoring organization to any vehicle owner that pays specified fees, provided that the sponsoring organization met certain conditions. These conditions included that the sponsor of a special interest license plate had to collect 7,500 applications and fees for a special license plate in order to pay DMV's costs of creating a new plate, which are approximately $375,000 or 7,500 applications times the $50 fee. In 2004, a federal court decision, Women's Resource Network v. Gourley, E.D. Cal 2004, F.Supp.2d, 2004 U.S. Dist., invalidated the provisions of the Vehicle Code described in comment #2. In the Gourley decision, the court declared California's special interest license plate statutes unconstitutional because they violated the First Amendment right to freedom of speech. The court specifically objected to the Legislature "picking and choosing" special license plates that private organizations propose, in essence promoting the message of some organizations while denying this right to others. The court did allow the ten special interest license plates existing at the time of its decision to remain in use and available to new applicants, as they are today. In response to the court decision, AB 84 (Leslie), Chapter 454, Statutes of 2006, established the current specialized license plate program to provide a forum for government speech that promotes California's state policies. AB 84 excludes private organizations from seeking specialized license plates as a forum for private speech, and thus addresses the court's objection. Newly created plates and the revenue they generate must publicize or promote a state agency, or the official policy, mission, or work of a state agency. Assembly Votes: Floor: 78-0 Appr: 17-0 Trans: 16-0 POSITIONS: (Communicated to the committee before noon on Wednesday, July 3, 2013.) SUPPORT: Contra Costa Board of Supervisors AB 49 (BUCHANAN) Page 4 OPPOSED: None received.