BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 270


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      ASSEMBLY THIRD READING


      AB  
      270 (Nazarian)


      As Amended  March 16, 2015


      Majority vote


       ------------------------------------------------------------------------ 
      |Committee       |Votes |Ayes                  |Noes                     |
      |----------------+------+----------------------+-------------------------|
      |Transportation  |16-0  |O'Donnell, Nazarian,  |                         |
      |                |      |Melendez, Medina,     |                         |
      |                |      |Linder, Kim, Gomez,   |                         |
      |                |      |Eduardo Garcia, Dodd, |                         |
      |                |      |Daly, Chu, Campos,    |                         |
      |                |      |Bloom, Baker,         |                         |
      |                |      |Achadjian, Frazier    |                         |
      |                |      |                      |                         |
      |----------------+------+----------------------+-------------------------|
      |Appropriations  |17-0  |Gomez, Bigelow,       |                         |
      |                |      |Bonta, Calderon,      |                         |
      |                |      |Chang, Daly, Eggman,  |                         |
      |                |      |Gallagher,            |                         |
      |                |      |                      |                         |
      |                |      |                      |                         |
      |                |      |Eduardo Garcia,       |                         |
      |                |      |Gordon, Holden,       |                         |
      |                |      |Jones, Quirk, Rendon, |                         |
      |                |      |Wagner, Weber, Wood   |                         |
      |                |      |                      |                         |
      |                |      |                      |                         |
       ------------------------------------------------------------------------ 









                                                                       AB 270


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      SUMMARY:  Requires the State Department of Public Health (DPA) to  
      apply to the State Department of Motor Vehicles (DMV) to sponsor a  
      diabetes awareness, education, and research specialized license plate  
      program (program), as specified.  Establishes the Diabetes Awareness  
      Fund (fund) and specifies that revenues from the fund will be used by  
      DPA to fund programs related to diabetes awareness and prevention, as  
      specified. 
      EXISTING LAW: 


      1)Allows any state agency to apply to DMV to sponsor a specialized  
        license plate program.  
      2)Requires DMV to issue specialized license plates for that program if  
        the agency complies with all statutory requirements.  


      3)Prohibits DMV from establishing a specialized license plate program  
        for an agency until it has received not less than 7,500 paid  
        applications for that agency's specialized license plates.  


      4)Requires the agency to collect and hold applications for the plates.  
         Once the agency has received at least 7,500 applications, it must  
        submit the applications, along with the necessary fees, to DMV.  


      5)Prohibits advance payment to DMV of its estimated or actual  
        administrative costs associated with the issuance of a particular  
        specialized license plate from constituting compliance with the  
        7,500 application threshold requirement.  


      6)Requires funds accruing to a sponsoring state agency from the sale  
        of specialized license plates to be expended exclusively for  
        projects and programs that promote that agency's official policy,  
        mission, or work.  










                                                                       AB 270


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      7)Allows specialized license plates to feature a distinctive design,  
        decal, or distinctive message in a two-inch by three-inch space to  
        the left of the plate's numerical sequence and a space not larger  
        than 5/8-inch in height below the numerical series.  


      FISCAL EFFECT:  According to the Assembly Appropriations Committee:


      1)Potential one-time special fund costs of approximately $440,000 to  
        DMV to establish the specialized license plate program, including  
        computer programming changes and updating forms.  Pursuant to  
        current law, DMV will make computer programming and form changes  
        only after program applications meet a 7,500-application threshold.   
        Therefore, the DMV will incur these costs only if it receives enough  
        applications to require the DPH to implement the program.  The DMV  
        will incur minor ongoing costs to continue issuing specialty license  
        plates and renewals under the program.  All of the DMV's initial and  
        ongoing costs will be covered by a portion of the additional $50 fee  
        paid for original specialized license plates and the additional $40  
        fee to renew such plates.
      2)Minor costs to DPH 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.


      3)Potential ongoing revenue to DPH for diabetes awareness and  
        education, from a portion of the additional fees for new and renewed  
        specialty license plates generated after the funding requirements in  
        1) are satisfied. 


      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,  








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      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.  


      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 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.  


      Diabetes is a serious medical condition that has impacted people  
      across the entire United States.  According to the Centers for Disease  
      Control and Prevention (CDC), 28.9 million people over age 20 have  
      diabetes.  Moreover, recent studies cited in a California State  
      Auditor (CSA) report (2014) found that the number of people diagnosed  
      with diabetes in California has jumped 50% from 2001 to 2012.  While  
      cases of diabetes have increased, CSA further reported that funding  
      for diabetes prevention has declined over the past several years and  
      has resulted in program expenditure cuts.  


      The author introduced this bill in attempt to establish an additional  
      funding source for diabetes prevention and raise awareness through  
      education and outreach efforts.  The author notes that this bill "will  
      establish a diabetes specialized license plate in order to promote  
      diabetes awareness and allow motorist to show their support for the  
      prevention of diabetes."  











                                                                       AB 270


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      Please see the policy committee analysis for full discussion of this  
      bill.




      Analysis Prepared by:                                               
      Manny Leon / TRANS. / (916) 319-2093  FN: 0000582