BILL NUMBER: AB 853	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Brown
   (Coauthor: Assembly Member Linder)

                        FEBRUARY 21, 2013

   An act to amend Section 5157 of, and to add Section 5156.2 to, the
Vehicle Code, relating to vehicles.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 853, as introduced, Brown. Vehicles: motorsport license plates.

    Existing law, subject to exceptions, requires the Department of
Motor Vehicles to, upon registering a vehicle, issue the owner 2
partially or fully reflectorized license plates. Existing law also
authorizes the department to issue a variety of specialty license
plates. Existing law authorizes a state agency to apply to the
department to sponsor a specialized license plate program, as
specified.
   This bill would authorize the Commissioner of the California
Highway Patrol to apply to the Department of Motor Vehicles to
sponsor a program for a series of motorsports and auto-enthusiast
themed license plates. The bill would provide that the original issue
and renewal fee for those plates would be deposited in the
Motorsport License Plate Account of the Specialized License Plate
Fund, which account is created by the bill. The bill would authorize,
upon appropriation by the Legislature, the funds collected to be
used by the Office of Traffic Safety, as specified. The bill would
make additional conforming changes.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 5156.2 is added to the Vehicle Code, to read:
   5156.2.  (a) (1) Notwithstanding Sections 5154, 5155, and 5156,
the Commissioner of the California Highway Patrol may apply to the
department to sponsor a program for a series of motorsports and
auto-enthusiast themed license plates, and the department shall
issue, or cause to be issued, specialized license plates for that
program, if the Commissioner of the California Highway Patrol
complies with the provisions of this article. This series of plates
may bear emblems, seals, vehicle images, or other symbols or designs
displaying motorsports and automobile enthusiast themes or
professional motorsports drivers. The design of each specialty plate
in the series shall be proposed by the commissioner and approved by
the department.
   (2) The department shall not issue specialized license plates for
a vehicle that is exempt from the payment of registration fees
pursuant to Section 9101 or 9103.
   (b) The department shall not establish a specialized license plate
program described in subdivision (a) until the department has
received at least 7,500 applications for the specialized license
plates. The commissioner shall collect and hold applications for the
plates. Once the commissioner has received at least 7,500
applications, the commissioner shall submit the applications, along
with the necessary fees, to the department. The department shall not
issue a specialized license plate until the commissioner has received
and submitted to the department not less than 7,500 applications
collectively for that particular specialized license plates within
five years of the initial application to sponsor the specialized
license plates. Advance payment to the department by the commissioner
representing the department's estimated or actual administrative
costs associated with the issuance of a particular specialized
license plate shall not constitute compliance with this requirement.
The commissioner shall have 12 months, following the date of approval
of the initial application to sponsor a specialized license plate
program, to receive the required number of applications. If, after
that 12 months, 7,500 applications have not been received, the
commissioner shall immediately do either of the following:
   (1) Refund to all applicants all fees or deposits that have been
collected.
   (2) Contact the department to indicate the commissioner's intent
to undertake collection of additional applications and fees or
deposits for an additional period, not to exceed 12 months, in order
to obtain the minimum 7,500 applications. If the commissioner elects
to exercise the option under this paragraph, the commissioner shall
contact each applicant who has submitted an application with the
appropriate fees or deposits to determine if the applicant wishes a
refund of fees or deposits or requests the continuance of the holding
of the application and fees or deposits until that time that the
commissioner has received 7,500 applications. The commissioner shall
refund the fees or deposits to an applicant so requesting. The
commissioner shall not collect and hold applications for a period
exceeding 24 months following the date of approval of the initial
application to sponsor a specialized license plate program.
   (c) The department shall cause to be issued any plate in this
series without a minimum number of applications for a specific
design.
   (d) The fees for original issuance and renewal of registration for
the specialty plates shall be deposited in the Motorsports License
Plate Account, which is hereby created in the Specialized License
Plate Fund, and notwithstanding subdivision (c) of Section 5157,
shall, upon appropriation, be distributed quarterly to the department
for its actual costs of administering this program, and the balance
to the commissioner, who shall transfer the funds to the Office of
Traffic Safety.
   (e) (1) The commissioner or the commissioner's designee shall
secure license rights for any emblem, seal, vehicle image, or other
motorsports or automobile enthusiast symbol or design displaying
automotive themes or themes of professional motorsports, or
professional motorsports drivers, for use on specialized license
plates authorized by this section. However, the commissioner shall
not pay or provide more than nominal monetary compensation for those
license rights.
   (2) The terms of the license rights agreements shall hold the
state, the commissioner, and the Office of Traffic Safety harmless
and shall indemnify the state, the commissioner, and the Office of
Traffic Safety from all losses, costs, expenses, including reasonable
attorney's fees, claims, demands, liabilities, causes of action, and
damages, arising out of the unauthorized use or infringement of a
trademark, service mark, copyright, patent, method, device, or other
proprietary right, in connection with the issuance of the specialized
license plates authorized by this section.
   (f) The commissioner, the department, and the Office of Traffic
Safety may require the hold harmless and indemnity agreements to be
supported by policies of commercial general liability insurance, or
other insurance, in amounts and by insurance companies that are
acceptable to the commissioner and the department.
   (g) The commissioner and the Office of Traffic Safety may solicit,
negotiate, and collect contributions from third parties to augment
the program authorized by this section.
  SEC. 2.  Section 5157 of the Vehicle Code is amended to read:
   5157.  (a) In addition to the regular fees for an original
registration or renewal of registration,  except as provided in
paragraph (6),  the following additional fees shall be paid for
the issuance, renewal, or transfer of the specialized license plates:

   (1) For the original issuance of the plates, fifty dollars ($50).
   (2) For a renewal of registration with the plates, forty dollars
($40).
   (3) For transfer of the plates to another vehicle, fifteen dollars
($15).
   (4) For each substitute replacement plate, thirty-five dollars
($35).
   (5) In addition, for the issuance of environmental license plates,
as defined in Section 5103, with a specialized license plate design,
the additional fees prescribed in Sections 5106 and 5108. The
additional fees prescribed in Sections 5106 and 5108 shall be
deposited in the California Environmental License Plate Fund. 
   (6) Notwithstanding paragraphs (1) and (2), for the original
issuance of specialty license plates pursuant to Section 5156.2,
sixty dollars ($60), and for the renewal of registration with the
plates, fifty dollars ($50). 
   (b) The Gold Star Family specialized license plate program as
provided in subdivision (d) of Section 5156 shall not be subject to
the fees specified in paragraphs (1), (2), and (5) of subdivision (a)
and shall only be issued in a sequential series.
   (c) Except as provided in  paragraph  
paragraphs  (5)  and (6)  of subdivision (a),  and
Section 5156.2,  and after deducting its administrative costs
under this section, the department shall deposit the additional
revenue derived from the issuance, renewal, transfer, and
substitution of the specialized license plates in the Specialized
License Plate Fund, which is hereby established in the State
Treasury. Upon appropriation by the Legislature, the moneys in that
fund shall be allocated to each sponsoring agency, in proportion to
the amount in the fund that is attributable to the agency's
specialized license plate program. Except as authorized under Section
5159, the sponsoring agency shall expend all funds received under
this section exclusively for projects and programs that promote the
state agency's official policy, mission, or work.
   (d) (1) The Department of Veterans Affairs may actively request
and receive donations for the Gold Star Family License Plate Account
which is hereby created in the Specialized License Plate Fund and
which may consist of donations from public and private entities.
Earnings generated by the Gold Star Family License Plate Account
shall be retained by the account.
   (2) Upon the determination of the department that there are
sufficient funds in the Gold Star Family License Plate Account for
this purpose, moneys in the Gold Star Family License Plate Account
shall be available, upon appropriation by the Legislature, to the
department for the necessary administrative costs of establishing the
Gold Star Family specialized license plate program.