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. AB 1096 Page 2 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 AB 1096 Page 3 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 AB 1096 Page 4 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, AB 1096 Page 5 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. AB 1096 Page 6 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, AB 1096 Page 7 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