BILL ANALYSIS Ó AB 1096 Page 1 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 AB 1096 Page 2 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 AB 1096 Page 3 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 AB 1096 Page 4 FN: 0000851