BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1323| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 1323 Author: Lieu (D) Amended: 8/22/14 Vote: 27 - Urgency PRIOR VOTES NOT RELEVANT SENATE APPROPRIATIONS COMMITTEE : 6-0, 8/28/14 (Pursuant to Senate Rule 29.10) AYES: De León, Gaines, Hill, Lara, Padilla, Steinberg NO VOTE RECORDED: Walters ASSEMBLY FLOOR : 78-0, 8/27/14 - See last page for vote SUBJECT : Specialized license plates: Pet Lovers License Plate Program SOURCE : Author DIGEST : This bill requires that any revenue in the Specialized License Plate Fund (SLP Fund) generated from a specialized license plate issued under the Pet Lovers License Plate Program is to be appropriated to the Veterinary Medical Board (VMB) as of the operative date of this bill. Assembly Amendments delete the Senate version dealing with property taxation, and instead add the current language. ANALYSIS : Existing law establishes a specialized license plate program administered by the Department of Motor Vehicles CONTINUED SB 1323 Page 2 (DMV). DMV currently administers 12 specialized license plate programs, including the Pet Lover's specialized license plate program. AB 610 (Solorio, Chapter 9, Statutes of 2012) provided VMB an additional 12-month period to meet the 7,500 application threshold as required by existing law. VMB obtained the necessary applications over the additional 12 months and began issuing Pet Lover's specialized license plates in September of 2013. As of May 31, 2014, DMV has issued 8,070 Pet Lover's specialized license plates and generated $94,844. This bill requires that any revenue in the SLP Fund generated from a specialized license plate issued under the Pet Lover's License Plate Program is to be appropriated to VMB as of the operative date of this bill. Comments Prior to 2007, any new specialized 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 specialized license plate program to provide a forum for government speech that promotes California's state policies. AB 84 excludes private organizations from seeking specialized license plates as a forum for private speech, and thus addresses the court's objection. Specialized license 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. A state agency must first submit an initial application to DMV requesting sponsorship of a specialized license plate. The process then provides the sponsoring state agency 12 months to obtain the required 7,500 paid applications and must be received by the sponsoring state agency prior to notifying DMV. The 7,500 application threshold was previously put into statute for specialized 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. CONTINUED SB 1323 Page 3 Furthermore, fees collected from the specialized license plate programs are first used to cover DMV program administrative costs with the remaining additional funds being deposited into the SLP Fund and subject to appropriation by the Legislature. FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee, one-time appropriation of approximately $145,000 from the Pet Lover's Account in the SLP Fund to the VMB. SUPPORT : (Verified 8/27/14) State Humane Association of California Veterinary Medical Board ASSEMBLY FLOOR : 78-0, 8/27/14 AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray, Grove, Hagman, Hall, Roger Hernández, Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein, Mansoor, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea, John A. Pérez, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins NO VOTE RECORDED: Harkey, Vacancy AB/JA:k 8/29/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED