BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          Bill No:          AB 192            Hearing Date:    7/14/2015
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          |Author:   |Travis Allen                                          |
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          |Version:  |7/8/2015                                              |
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          |Urgency:  |No                     |Fiscal:      |Yes             |
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          |Consultant|Randy Chinn                                           |
          |:         |                                                      |
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          SUBJECT:  Specialized license plates:  coastal conservancy  
          awareness

            DIGEST:  This bill 1) establishes a Coastal Conservancy  
          awareness license plate program and 2) authorizes the  
          expenditure of funds raised from the existing Pet Lover's  
          specialty license plate program.

          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 for each state agency:

            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.







          AB 192 (Travis Allen)                             Page 2 of ?
          
          

          In addition to the usual registration and license fees, DMV  
          charges the following additional fees for specialized license  
          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 Coastal Conservancy to apply to the  
          DMV to sponsor a coastal conservancy awareness license plate  
          program.

          The net proceeds of the program shall be allocated to the State  
          Coastal Conservancy to accomplish any of the following:

            1)  Educating the public on the history of surfing.
            2)  Providing support for lifeguards at high-risk beaches.
            3)  Providing for operation and maintenance of access ways,  
              educational opportunities, and increasing attendance at  
              beaches.
            4)  Hosting and supporting forums and events to increase  
              coastal conservancy awareness.
            5)  Developing and supporting activities designed to assist in  
              preserving and protecting the shoreline.
            6)  Providing for the maintenance and operation of coastal  
              access infrastructure.
            7)  Providing for the protection, habitat, care,  
              rehabilitation, and reintroduction of California sea lions.

          Under existing law, the Veterinary Medical Board has sponsored a  
          specialty license plate for pet lovers, which has received more  
          than 7,500 applications and is now in production.

          This bill authorizes the revenue received from that plate to be  
          used to cover the DMV's costs and, upon appropriation, by the  
          Veterinary Medical Board for disbursal though a non-profit  
          organization to qualifying spay and neuter facilities.

          COMMENTS:

            1)  Purpose.  According to the author, this bill seeks to  
              expand the opportunity for the Coastal Conservancy to  








          AB 192 (Travis Allen)                             Page 3 of ?
          
          
              execute their duties as well as provide coastal access,  
              education, seal lion habitat and rehabilitation, and  
              operation and maintenance of infrastructure.  
            
            2)  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 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  








          AB 192 (Travis Allen)                             Page 4 of ?
          
          
              Veterans, which appears to be a contrary ruling to Gourley.   
              However, the committee needs to consult with others before  
              providing a more definitive opinion.
          
            3)  Rough seas forecast.  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.

            4)  Similar plate exists.  The DMV currently offers a Coastal  
              Commission license plate to support some of the general  
              activities described in this bill:  coastal public education  
              programs, maintaining public beaches and coastal restoration  
              and enhancement.

            5)  Loving pets.  The Veterinary Medical Board (Board)  
              sponsored a specialty plate administratively with the  
              purpose of funding low- and no-cost animal sterilization  
              services.  That plate received more than 7,500 applications  
              and is now in production.  The Board, as the sponsoring  
              agency for the Pet Lover's License Plate Program, must  
              retain the oversight for granting funds collected through  
              the specialized plate program to qualified providers.   
              However, the Board does not have sufficient staff to  
              administer the program and is seeking assistance from a  
              non-profit organization to provide general administrative  
              support, such as providing recommendations for grant  
              criteria, accepting and reviewing grant applications, and  
              making recommendations to the Board regarding eligible  
              providers of low-cost spay and neuter services.  Under this  
              bill, the Board would retain its authority and  
              responsibility to make decisions regarding awarding  grants,  
               and would oversee the distribution of the funds, but may  
              contract with a qualified non-profit for general  
              administrative support.

            6)  Technical amendment.  The Coastal Conservancy has  
              suggested a technical amendment to clarify that the purposes  
              for which funds will be used are consistent with their  
              mission.  That language is as follows:

                     Page 3, line 2:  Replace "following purposes" with  
                 "purposes of Division 21 (commencing with Section 31000)  
                 of the Public Resources Code, prioritizing, but not  
                 limited to, all of the following:"








          AB 192 (Travis Allen)                             Page 5 of ?
          
          
          
          Related Legislation:
          
          AB 63 (Bonilla, 2015) - establishes a school violence prevention  
          specialized license plate program.  This bill is pending in the  
          Senate Appropriations Committee.

          AB 270 (Nazarian, 2015) - establishes a diabetes awareness  
          specialized license plate.  This bill is pending in the Senate  
          Appropriations Committee.

          AB 932 (Daly, 2015) - establishes a professional sports  
          specialized license plate.  This bill is pending in the Senate  
          Appropriations Committee.

          AB 1338 (Gomez, 2015) - establishes a domestic violence and  
          sexual assault awareness specialized license plate.  This bill  
          is pending in the Senate Appropriations 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:    71-4
            Appr:     17-0
            Trans:    16-0








          AB 192 (Travis Allen)                             Page 6 of ?
          
          
          
          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  Yes     
          Local:  No


            POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          July 8, 2014.)
          
            SUPPORT:
          
            
          None received

          OPPOSITION:
          
          None received

                                      -- END --