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 ----------------------------------------------------------------- |Author: |Bonilla | |----------+------------------------------------------------------| |Version: |5/28/2015 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Randy Chinn | |: | | ----------------------------------------------------------------- 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 AB 63 (Bonilla) Page 2 of ? 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 AB 63 (Bonilla) Page 3 of ? 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 AB 63 (Bonilla) Page 4 of ? 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.) AB 63 (Bonilla) Page 5 of ? 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 --