BILL ANALYSIS �
AB 1096
Page 1
Date of Hearing: May 15, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1096 (Nestande) - As Amended: May 2, 2013
Policy Committee:
TransportationVote:14-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill authorizes the Department of Fish and Wildlife (DFW)
to apply to the DMV to sponsor a specialized Salton Sea license
plate, the net proceeds of which shall be deposited into the
Salton Sea Restoration Account.
FISCAL EFFECT
1)Potential one-time special fund costs of approximately
$400,000 to DMV to establish the Salton Sea 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. The DMV will incur minor
ongoing costs to continue issuing specialty license plates and
renewals under the program. All of the DMV's initial and
ongoing costs will be covered by a portion of the additional
$50 fee paid for specialized license plates.
2)Minor costs to DFW 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. The department's costs will
eventually be recovered assuming sufficient participation in
the program.
3)Potential ongoing additional revenue for restoration of the
Salton Sea.
COMMENTS
AB 1096
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1)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
avoid a proliferation of different types of plates, which can
be troublesome from a law enforcement perspective.
2)The Salton Sea is the largest inland lake in southeastern
California. As an agricultural drainage reservoir, 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 Salton Sea Authority was established as
a joint powers authority with the goal of revitalizing the Sea
and "for the purpose of ensuring the beneficial uses of the
Salton Sea."
The Salton Sea Restoration Council was established in 2010, as
a part of Natural Resources Agency, to oversee the restoration
of the Salton Sea. The council is required to evaluate Salton
Sea restoration proposals and, by June 30, 2013, report to the
Governor and the Legislature with a recommended restoration
plan. Separately, state law requires the DFW and the
Department of Water Resources to implement activities relating
to the restoration of the Salton Sea. The restoration plan
recommended by the Resources Agency totals approximately $9
billion.
3)Purpose . The author contends that the Sea is beginning to dry
up. The transfer of Colorado River water from Imperial Valley
to San Diego County 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 contends the state has a current
obligation to restore the Sea. He indicates that the revenue
AB 1096
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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."
4)Related Legislation . AB 244 (Bonilla), also on today's
committee agenda, requires the Department of Veterans Affairs
(CDVA) to apply to the DMV for a veterans' specialized license
plate.
AB 49 (Buchanan), pending in this committee, requires the
Department of Health Care Services (DHCS) to apply to the DMV
to sponsor a breast cancer awareness license plate program.
AB 482 (Atkins), also pending in this committee, 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.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081