BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1096
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          ASSEMBLY THIRD READING
          AB 1096 (Nestande)
          As Amended  May 2, 2013
          Majority vote 

           TRANSPORTATION      14-0        APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Linder, Achadjian,        |Ayes:|Gatto, Harkey, Bigelow,   |
          |     |Ammiano, Blumenfield,     |     |Bocanegra, Bradford, Ian  |
          |     |Bonta, Buchanan, Daly,    |     |Calderon, Campos,         |
          |     |Frazier, Gatto, Holden,   |     |Donnelly, Eggman, Gomez,  |
          |     |Morrell, Nazarian,        |     |Hall, Ammiano, Linder,    |
          |     |Patterson, Quirk-Silva    |     |Pan, Quirk, Wagner, Weber |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Authorizes the California Department of Fish and  
          Wildlife (DFW) 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)Authorizes DFW to apply to DMV to sponsor a Salton Sea special  
            interest license plate.  

          2)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.

          3)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 DFW. 

          4)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.  

           FISCAL EFFECT  :  According to the Assembly Appropriations  








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          Committee:

          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.  DMV will incur minor  
            ongoing costs to continue issuing specialty license plates and  
            renewals under the program. All of 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.  DFW's costs will eventually  
            be recovered assuming sufficient participation in the program.  
             

          3)Potential ongoing additional revenue for restoration of the  
            Salton Sea.  

           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  
          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  








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          of different types of plates, which can be troublesome from a  
          law enforcement perspective.  

          Over the years, the Salton 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 DFW and the  
          California Department of Water Resources to implement activities  
          relating to the restoration of the Salton Sea.  

          The author contends that the Salton 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 Salton 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 Salton 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 Salton Sea and the surrounding community  
          are suffering.  He further 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 Salton Sea's restoration."  

           Assembly Transportation 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.   


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










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