BILL ANALYSIS Ó AB 270 Page 1 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 Page 2 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 Page 3 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, AB 270 Page 4 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 Page 5 Please see the policy committee analysis for full discussion of this bill. Analysis Prepared by: Manny Leon / TRANS. / (916) 319-2093 FN: 0000582