BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  April 11, 2016


                        ASSEMBLY COMMITTEE ON TRANSPORTATION


                                 Jim Frazier, Chair


          AB 2303  
          (Holden) - As Amended April 14, 2016


          SUBJECT:  Vehicles:  specialized license plates


          SUMMARY:  Requires the California Department of Transportation  
          (Caltrans) to apply to the Department of Motor Vehicles (DMV) to  
          sponsor a bicycle pathway license plate program.  Allocates the  
          revenues generated the bicycle pathway license plate program to  
          the Active Transportation Program and specifies that the design  
          of the license plates be identical to the design utilized by DMV  
          between 1982 and 1987 that featured blue, orange, and red  
          lettering, a white background, the phrase "Golden State" and a  
          sunset design.


          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.










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          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.


          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.


          8)Establishes the Active Transportation Program for the purpose  
            of encouraging increased use of active modes of  
            transportation, such as biking and walking.


          FISCAL EFFECT:  Unknown










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          COMMENTS:  Prior to 2007, any new specialty license plate  
          required specific legislative authorization.  That practice was  
          held to be unconstitutional by the federal courts, as the  
          Legislature approved some plates and rejected others, without  
          using any standardized or objective criteria for those  
          decisions.  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.  The current specialized license plate  
          program permits a state agency to initiate the development and  
          sponsorship of a specialized plate, thus no additional  
          legislation is required to authorize the creation of a new  
          plate.

          Plates created under the current program 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.  This 7,500-application threshold was previously  
          put into statute in an attempt to ensure 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.

          In regards to this bill, the author intends to provide  
          additional resources to the State Highway Account's  
          oversubscribed Active Transportation Program.  The author states  
          that 28% of Californians ride a bicycle as an outdoor activity  
          and California bicyclists and pedestrians face much higher death  
          rates relative to the rest of the United States.

          The Active Transportation Program was established in its current  
          form in 2013 with the following goals:  increase the proportion  
          of trips accomplished by biking and walking, increase safety and  








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          mobility for non-motorized users, advance the active  
          transportation efforts of regional agencies to achieve  
          greenhouse gas reduction goals, enhance public health, ensure  
          that disadvantaged communities fully share in the benefits of  
          the program, and provide a broad spectrum of projects to benefit  
          many types of active transportation users.  In every year since  
          2013, the Active Transportation Program has consistently  
          received project applications for a total amount of money  
          greater than the amount available to the program.  For example,  
          in the second cycle of grants, awarded in 2015, 617 applications  
          were submitted, requesting over $1 billion in funds.  In that  
          cycle approximately 207 projects were awarded totaling $359  
          million.

          This bill would dedicate any revenues generated by the new  
          specialized license plate program to the Active Transportation  
          Program, providing an additional stream of resources.

          Related legislation:  Currently there are five other bills in  
          the legislative process that would direct a state agency to  
          sponsor a specialized license plate for a specific cause.  Three  
          bills, AB 63 (Bonilla) to raise money for school safety, AB 270  
          (Nazarian) to raise money for diabetes awareness, and AB 932  
          (Daly) to raise money for local parks and recreation grant  
          programs passed out of this Committee with no 'No' votes and are  
          currently in the Senate Appropriations Committee.  AB 1884  
          (Harper) to raise money for mental health awareness was passed  
          by this Committee on March 14, 2016, with a 16-0 vote, and is  
          currently awaiting a hearing in the Assembly Appropriations  
          Committee.  AB 2131 (Maienschein) would raise money for local  
          food banks is scheduled to be heard by this committee on April  
          11, 2016.

          AB 2253 (Grove) would require DMV to design and issue a special  
          interest license plate in consultation with In God We Trust -  
          America, Inc.  AB 2253 is scheduled to be heard by this  
          committee on April 11, 2016.

          Previous legislation:  Since 2011, 12 bills have been introduced  








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          directing a state agency to sponsor a specialized license plate  
          for a variety of causes.  Since 2014, four were passed by the  
          Legislature and signed by the Governor.  These bills would raise  
          funds for Salton Sea restoration [AB 1096 (Nestande), Chapter  
          353, Statutes of 2014], kidney disease research [AB 2450  
          (Logue), Chapter 359, Statutes of 2014], breast cancer awareness  
          [AB 49 (Buchanan), Chapter 351, Statutes of 2014], and domestic  
          violence prevention [AB 2321 (Gomez), Chapter 358, Statutes of  
          2014].  None have yet gathered the necessary number of  
          applications to enter production.
          


          REGISTERED SUPPORT / OPPOSITION:


          Support


          California Bicycle Coalition (Sponsor)


          Bike East Bay


          Bike Santa Cruz County


          Bike SLO County


          Chico Velo


          Inland Empire Biking Alliance


          Livable Communities, Inc.









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          Marin County Bicycle Coalition


          Napa County Bicycle Coalition


          San Diego County Bicycle Coalition


          Santa Barbara Bicycle Coalition


          Silicon Valley Bicycle Coalition




          Opposition


          None on file




          Analysis Prepared by:Justin Behrens / TRANS. / (916) 319-2093




















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