BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1096
                                                                  Page  1

          Date of Hearing:   April 29, 2013

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                   AB 1096 (Nestande) - As Amended:  April 23, 2013
           
          SUBJECT  :  Special interest license plate: Salton Sea Restoration

           SUMMARY  :  Establishes the Salton Sea Joint Powers Authority  
          (Authority) as a state agency for purposes of the special  
          interest license plate program.  Authorizes the Authority to  
          apply to the California Department of Motor Vehicles (DMV) to  
          sponsor a Salton Sea special interest license plate along with  
          the requirement that the license plate have graphics covering  
          the full plate.  Specifically,  this bill  :  

          1)Establishes the Salton Sea Joint Powers Authority (Authority)  
            as a state agency for purposes of the special interest license  
            plate program;  

          2)Authorizes the Authority to apply to DMV to sponsor a Salton  
            Sea special interest license plate;  

          3)Requires DMV to issue the license plates provided that the  
            existing requirements of the special interest license plate  
            program are met, with an exception for a full-plate graphic  
            design;  

          4)Requires the Salton Sea license plates to bear a full-plate  
            graphic design that DMV determines, in consultation with the  
            Department of the California Highway Patrol (CHP), does not  
            obscure the readability of the license plate and depicts an  
            image designated by the Authority; and, 

          5)Requires the revenue generated from the additional fees for  
            the special interest license plates be deposited, after DMV  
            deducts its administrative costs, in the Salton Sea  
            Restoration Account.  

           EXISTING LAW  : 

          1)Establishes the Salton Sea Restoration Council as a state  
            agency in the Natural Resources Agency to oversee the  
            restoration of the Salton Sea.  









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          2)Requires the California Department of Fish and Wildlife and  
            the California Department of Water Resources to implement  
            activities relating to the restoration of the Salton Sea.  

          3)Allows any state agency to apply to DMV to sponsor a special  
            interest license plate.  

          4)Requires DMV to issue special interest license plates if the  
            agency complies with all statutory requirements.  

          5)Prohibits DMV from establishing a special interest license  
            plate program for an agency until it has received not less  
            than 7,500 paid applications for that agency's plates.  

          6)Requires the agency to collect and hold applications for the  
            plates.  Once the agency has received at least 7,500  
            applications, it must submit the applications, along with the  
            necessary fees, to DMV.  

          7)Prohibits advance payment to DMV of its estimated or actual  
            administrative costs associated with the issuance of a  
            particular special interest license plate from constituting  
            compliance with the 7,500 application threshold requirement.  

          8)Requires funds accruing to a sponsoring state agency from the  
            sale of special interest license plates to be expended  
            exclusively for projects and programs that promote that  
            agency's official policy, mission or work.  

          9)Allows special interest license plates to feature a  
            distinctive design, decal, or distinctive message in a  
            two-inch by three-inch space to the left of the plate's  
            numerical sequence and a space not larger than 5/8 inch in  
            height below the numerical series.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  Prior to 2007, any new special interest license plate  
          required specific legislative authorization.  That practice was  
          held to be unconstitutional by the federal courts in that the  
          Legislature approved some of the plates and rejected others,  
          while using no standardized or objective criteria for those  
          decisions.  In response to the court decision, AB 84 (Leslie),  
          Chapter 454, Statutes of 2006, established the current special  
          interest license plate program to provide a forum for government  








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          speech that promotes California's state policies.  AB 84  
          excludes private organizations from seeking special interest  
          license plates as a forum for private speech, and thus addresses  
          the court's objection.  Plates now created and the revenue they  
          generate must publicize or promote a state agency, or the  
          official policy, mission, or work of a state agency.   
          Furthermore, the process requires that at least 7,500 paid  
          applications must be received by the state agency prior to  
          notifying DMV.  The 7,500-application threshold was previously  
          put into statute for the special interest license plates and was  
          arrived at in an attempt to assure that DMV's startup costs  
          would be fully covered by the portion of the registration fee  
          surcharge that is directed to DMV and to avoid a proliferation  
          of different types of plates, which can be troublesome from a  
          law enforcement perspective.  

          The Salton Sea (Sea) is the largest inland lake in southeastern  
          California.  As an agricultural drainage reservoir, the Sea  
          serves an important purpose for the productive agricultural  
          valleys that adjoin it.  As an agricultural sump, the Sea  
          consists primarily of commercial agricultural drainage, with  
          about 90% of the entire inflow to the Sea coming from  
          agricultural runoff from the Imperial, Coachella, and Mexicali  
          Valleys.  In 1993, the Authority was established as a joint  
          powers authority with the goal to revitalize the Sea and "for  
          the purpose of ensuring the beneficial uses of the Salton Sea."   
          It has representatives from the Coachella Valley Water District,  
          the Imperial Irrigation District, Riverside County, Imperial  
          County, and the Torres Martinez Desert Cahuilla Indians.  

          Over the years, the Sea has been the subject of debate and  
          subsequent enactment of state legislation.  In 2010, state law  
          established the Salton Sea Restoration Council as a state agency  
          in the Natural Resources Agency to oversee the restoration of  
          the Salton Sea.  For the purpose of developing a restoration  
          plan, the council is required to evaluate the Salton Sea  
          restoration proposals and, by June 30, 2013, report to the  
          Governor and the Legislature with a recommended Salton Sea  
          restoration plan.  Separately, state law requires the California  
          Department of Fish and Wildlife and the California Department of  
          Water Resources to implement activities relating to the  
          restoration of the Salton Sea.  Furthermore, throughout the  
          years, statewide bond funding for restoration activities at the  
          Sea was included in both Proposition 50 and Proposition 84.  The  
          Salton Sea restoration program received $37.7 million in  








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          appropriations from 2007 through 2010; however, due to limited  
          bond sales, significantly less amount of funds have been  
          actually expended.  

          The author contends that the Sea is beginning to dry up.  The  
          transfer of Colorado River water from Imperial Valley to San  
          Diego County will reduce the amount of agriculture runoff that  
          currently flows into the Sea.  As a result, air quality and  
          wildlife habitat have been severely impaired, and because the  
          remaining waters have increased salinity, most aquatic life is  
          being killed.  He indicates that the state has a current  
          obligation to restore the Sea.  The restoration plan that has  
          been recommended by the California Resources Agency is  
          approximately $8.9 billion.  Despite this obligation, action has  
          not been taken and the Sea and the surrounding community are  
          suffering.  He indicates that the revenue derived from the  
          Salton Sea special interest license plate program "might be  
          minimal when compared to the total cost of the restoration  
          project.  However, any and all funding will be an asset to the  
          Authority.  Additionally, the Authority can use the funds raised  
          to leverage grants and other matching funds for the project.   
          Once the plates are issued, it will provide a continuous funding  
          stream for related restoration projects and studies in future  
          years."  

           Why establish another state entity?   This bill would establish a  
          new state entity for purposes of the Salton Sea special interest  
          license plate program.  Existing state law allows any state  
          agency to sponsor a special interest license plate and also  
          requires that funds accruing to a sponsoring state agency from  
          the sale of special interest license plates to be expended  
          exclusively for projects and programs that promote that agency's  
          official policy, mission or work.  As the Department of Fish and  
          Wildlife and the Salton Sea Restoration Council are both  
          established as state agencies and would qualify as a sponsoring  
          state agency, why is it necessary to establish the Authority as  
          a state agency in place of these two other entities?  

           Senate Resolution 43 (Kopp)  :  The Senate Transportation  
          Committee approved a legislative resolution in 1994, SR 43,  
          which established a task force consisting of representatives  
          from DMV, CHP, and local governments, to examine the issue of  
          readability of the specialty license plates and the impact on  
          vehicle identification and safety.  In response to the  
          resolution and contained within its report to the Legislature,  








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          the task force made the following recommendations:  

            "The Department of Motor Vehicles should maintain the current  
            standard plate designs and configurations.  There should be no  
            further authorization of additional special interest license  
            plates.  The task force concluded, however, that if the  
            Legislature determined there is a compelling need to approve  
            additional special interest plates, "it should rigorously  
            adhere to the design criteria (prescribed in Vehicle Code   
            Sec. 5060, such as the license plate shall be in a space not  
            larger than 2 inches by 3 inches to the left of the numerical  
            series and a space not larger than five-eighths of an inch in  
            height below the numerical series for a distinctive design,  
            decal, or descriptive message to facilitate plate  
            identification by law  enforcement," including not authorizing  
            any license plates with a full-plate graphic configuration."  

           Committee concern  :  Although this bill purports to comply with  
          the administrative processes for the adoption of special  
          interest license plates as administered by DMV, this bill would  
          establish a parallel AB 84 process that includes a specific  
          exception to the prohibition of full-plate graphic design  
          license plates, thereby essentially circumventing the existing  
          statutory process.   Further, this bill would put the  
          Legislature back in the business of picking and choosing  
          specific license plate messages, promoting the message of some  
          organizations while denying this right to others, an activity  
          the courts have frowned upon.  Lastly, the bill establishes the  
          Authority as a state entity without justification especially as  
          there are two other entities that can qualify as sponsoring  
          state agencies for purposes of the special interest license  
          plate program.  

           Suggested committee amendment  :  The committee suggests that the  
          bill be amended to remove provisions that establish the  
          Authority as a state agency and instead recognize either the  
          Department of Fish and Wildlife or the Salton Sea Restoration  
          Council as the sponsoring state agency.  
           
          Related bills  :  AB 49 (Buchanan), would require the California  
          Department of Health Care Services to apply to DMV to sponsor a  
          breast cancer awareness, full-plate graphic license plate.  That  
          bill was approved by this committee on April 15, 2013 (16-0  
          vote) and will be heard next in the Assembly Appropriations  
          Committee.  








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          AB 244 (Bonilla), would reestablish a special interest license  
          plate for veterans.  That bill was passed by this committee on  
          April 22, 2013 (16-0 vote) and will be heard next in the  
          Assembly Veterans Affairs Committee.  

          AB 482 (Atkins), would require the California Cultural and  
          Historical Endowment to apply to DMV for the purpose of creating  
          a special interest license plate program using the cartoon  
          character Snoopy.  That bill was heard in the Assembly Arts,  
          Entertainment, Sports, Tourism & Internet Media Committee on  
          April 9, 2013 (4-2 vote) and is to be heard next in the Assembly  
          Appropriations Committee.   

          AB 853 (Brown and Linder), would authorize CHP to apply to DMV  
          to sponsor a special interest license plate in support of  
          motorsports and auto-enthusiasts.  That bill is now a two-year  
          bill at the request of the author.  

          SB 789 (Price), would authorize the California Arts Council to  
          use funds generated by special interest license plate  
          applications for administrative purposes that is currently  
          prohibited.  That bill is set for hearing in the Senate  
          Transportation and Housing Committee on May 7, 2013.  

           Previous legislation  :  

          AB 610 (Solorio) Chapter 9, Statutes of 2012, allows the  
          Veterinary Medical Board an additional 12 months to accumulate  
          the required 7,500 applications for the establishment of a Pet  
          Lover's special interest license plate.  

          AB 1242 (Achadjian) of 2012, would have authorized the  
          Foundation for California Community Colleges to apply to DMV to  
          sponsor special interest license plates for the National  
          Association for stock car Auto Racing (NASCAR).  That bill was  
          not heard by this committee at the request of the author.  

          AB 1539 (Hayashi) of 2012, would have authorized an  
          anti-bullying special interest license plate in support of  
          persons who are members of the lesbian, gay, bisexual, and  
          transgender community.  That bill was not heard by this  
          committee at the request of the author.  

          SB 1018 (Senate Budget and Fiscal Review Committee), Chapter 39,  








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          Statutes of 2012, among other provisions of the budget trailer  
          bill, authorizes DMV, in consultation with the California  
          Department of Parks and Recreation, to design and make available  
          for issuance special interest state parks environmental license  
          plates bearing a full-plate graphic design.  That bill was not  
          heard in this committee.  

          AB 1815 (Emmerson) of 2010, would have authorized the Bureau of  
          Automotive Repair to apply to DMV to sponsor a program for a  
          series of special interest license plates for NASCAR.  That bill  
          was approved by this committee on April 19, 2010 (10-1 vote) but  
          was held in the Senate Transportation and Housing Committee.  

           REGISTERED SUPPORT / OPPOSITION  :  

           Support 
           
          Indio Chamber of Commerce
          Palm Desert Area Chamber of Commerce
          Palm Springs City Council
          98 Individual Constituents

           Opposition 
           
          None on file
           

          Analysis Prepared by  :   Ed Imai / TRANS. / (916) 319-2093