BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          AB 63             Hearing Date:    7/7/2015
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          |Author:   |Bonilla                                               |
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          |Version:  |5/28/2015                                             |
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          |Urgency:  |No                     |Fiscal:      |Yes             |
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          |Consultant|Randy Chinn                                           |
          |:         |                                                      |
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          SUBJECT:  School safety programs:  funding


            DIGEST:  This bill seeks to establish a specialty license plate  
          program for school violence prevention.

          ANALYSIS:
          
          Existing law provides for a specialized license plate program,  
          under which the Department of Motor Vehicles (DMV) may issue new  
          special-interest license plates.  Special-interest license  
          plates may only be issued on behalf of state agencies and only  
          provided that:

          1)The license plate has "a design or contains a message that  
            publicizes or promotes a state agency, or the official policy,  
            mission, or work of a state agency."  The design shall also be  
            confined to the left of and below the numerical series (i.e.,  
            no full-plate designs allowed).

          2)The state agency submits 7,500 applications and accompanying  
            fees to DMV for the license plate.  The state agency has 12  
            months to collect these applications and fees, but it can  
            extend that to a maximum of 24 months if it notifies and  
            offers to refund fees to those who applied during the first 12  
            months.  Once a plate is issued, DMV stops issuing that plate  
            for the agency if the number of plates drops below 7,500.

          In addition to the usual registration and license fees, DMV  
          charges the following additional fees for specialized license  







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          plates:  $50 for the initial issuance, $40 for annual renewal,  
          and $98 to personalize.  DMV deducts its administrative costs  
          from the revenues generated.  The net revenues derived from a  
          specialized license plate are then available upon appropriation  
          for the sponsoring state agency to expend exclusively on  
          projects and programs that promote the state agency's official  
          policy, mission, or work.

          This bill requires the State Department of Education to apply to  
          the DMV to create a school violence prevention specialty license  
          plate program.  Net proceeds from this program shall fund school  
          violence prevention programs.

          COMMENTS:
          
          Purpose.  According to the author, "Prior to 2010, the state  
          provided funding for two categorical programs - the School  
          Safety and Violence Prevention Act (school safety block grant)  
          and the School Safety Consolidated Competitive Grant - to  
          implement programs to improve school safety and reduce violence.  
           Previously these programs were funded through categorical  
          grants, but with the enactment of the local control funding  
          formula, these categorical grants were integrated into school  
          districts' base grants and are no longer in existence.  AB 63  
          attempts to re-establish school safety and violence prevention  
          programs by creating a new source of direct funding derived from  
          the sale of a specialized license plate, which will also help  
          increase awareness of the importance of addressing youth  
          violence and bullying." 

          History of special-interest license plates.  Historically, the  
          Vehicle Code required the DMV to issue, upon legislative  
          authorization, a special-interest license plate bearing a  
          distinctive design or decal of a sponsoring organization to any  
          vehicle owner that pays specified fees, provided that the  
          sponsoring organization met certain conditions.  These  
          conditions included that the sponsor of a special-interest  
          license plate had to collect 7,500 applications and fees for a  
          special license plate in order to pay DMV's costs of creating a  
          new plate, which are approximately $375,000 or 7,500  
          applications times the $50 fee.

          In 2004, a federal court decision, Women's Resource Network v.  
          Gourley, E.D. Cal 2004, F.Supp.2d, 2004 U.S. Dist., invalidated  
          the provisions of the Vehicle Code described above.  In the  








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          Gourley decision, the court declared California's  
          special-interest license plate statutes unconstitutional because  
          they violated the First Amendment right to freedom of speech.   
          The court specifically objected to the Legislature "picking and  
          choosing" special license plates that private organizations  
          propose, in essence promoting the message of some organizations  
          while denying this right to others.  The court did allow the 10  
          special-interest license plates existing at the time of its  
          decision to remain in use and available to new applicants, as  
          they are today.

          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.   
          Newly created plates and the revenue they generate must  
          publicize or promote a state agency, or the official policy,  
          mission, or work of a state agency.

          A recent decision by the United States Supreme Court may have  
          upended the Gourley decision.  On June 18, 2015, the Court  
          issued Walker v. Texas Division, Sons of Confederate Veterans,  
          which appears to be a contrary ruling to Gourley.  However, the  
          committee needs to consult with others before providing a more  
          definitive opinion.
          
          Challenging track record.  The track record of specialty license  
          plates reaching the 7,500 threshold is poor.  Of the 12  
          legislatively sponsored plates approved this century, only two  
          have met the threshold.

          Committee of second referral.  The Rules Committee referred this  
          bill to the Education Committee and to the Transportation and  
          Housing Committee.  This bill passed the Education Committee on  
          June 24 by an 8-0 vote.

          Related Legislation:
          
          AB 192 (Allen) - establishes a coastal conservancy awareness  
          specialized license plate.  This bill is pending in the Senate  
          Transportation and Housing Committee.

          AB 270 (Nazarian) - establishes a diabetes awareness specialized  








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          license plate.  This bill is also being heard today in this  
          committee.

          AB 932 (Daly) - establishes a professional sports specialized  
          license plate.  This bill is also being heard today in this  
          committee.

          AB 1338 (Gomez) - establishes a domestic violence and sexual  
          assault awareness specialized license plate.  This bill is also  
          being heard today in this committee.

          AB 49 (Buchanan, Chapter 351, Statutes of 2014) - requires the  
          State Department of Health Care Services to apply to the DMV to  
          sponsor a breast cancer awareness license plate program.

          AB 1096 (Nestande, Chapter 353, Statutes of 2014) - requires the  
          Department of Fish and Wildlife to apply to the DMV to sponsor a  
          Salton Sea license plate program.

          AB 2321 (Gomez, Chapter 358, Statutes of 2014) - requires the  
          Office of Emergency Services to apply to the DMV for a domestic  
          violence and sexual assault awareness and specialty license  
          plate program.
          AB 2450 (Logue, Chapter 359, Statutes of 2014) - requires the  
          state Department of Public Health to apply to the DMV for a  
          kidney disease awareness specialty license plate program.

          AB 244 (Bonilla, Chapter 690, Statutes of 2013) - requires the  
          Department of Veterans Affairs to apply to the DMV to sponsor a  
          veterans' specialty license plate program.

          Assembly Votes:

            Floor:    76-0
            Appr:     17-0
            Trans:    16-0
            Ed:    6-0
          
          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  Yes     
          Local:  No


            POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          July 1, 2015.)








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            SUPPORT:  

          American Federation of State, County and Municipal Employees
          California Council of Community Mental Health Agencies
          Concord Police Department
          Contra Costa County Office of Education
          Mental Health America of California
          Stand! For Families Free of Violence
          Stanislaus County Office of Education
          Stanislaus County Sheriff's Department
          Superintendent of Public Instruction Tom Torlakson

          OPPOSITION:
          
          None received

                                      -- END --