BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2303


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          Date of Hearing:  May 4, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


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


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          |Policy       |Transportation                 |Vote:|16 - 0       |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requires Caltrans to apply to the DMV to sponsor a  
          bicycle pathway specialized license plate program and allocates  
          net revenues generated by these specialized license plates to  
          the Active Transportation Program.


          FISCAL EFFECT:


          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  








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            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 DHCS 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 Caltrans 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. The bill specifies that the  
            license, to the extent feasible, should be identical to the  
            license plate design used by DMV between 1982 and 1987, as  
            described.

          3)Potential ongoing revenue to the Active Transportation  
            Program, subject to appropriation by the Legislature. 

          4)Current law requires that specified additional funds related  
            to personalizing a specialized license plate must be deposited  
            into the Environmental License Plate Fund.  This bill instead  
            directs all revenues to the Active Transportation Account,  
            after deducting administrative costs.  This would result in  
            the diversion of any revenues associated with personalization  
            from the Environmental License Plate Fund to the new account.
          


          COMMENTS:


          1)Specialized License Plates. Prior to 2007, any new special  
            interest license plate required specific legislative  
            authorization. This practice was held to be unconstitutional  
            in that the Legislature approved some of the plates, and  








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            rejected others, using no standardized or objective criteria  
            for those decisions. Pursuant to AB 84 (Leslie)/Statutes of  
            2006, the DMV will issue specialized license plates when  
            sponsored by a state agency, the plate's message and resulting  
            revenues support that agency's program, and at least 7,500  
            paid license applications have been received. The  
            7,500-application threshold attempts to assure that DMV's  
            startup costs are fully covered, by the portion of the  
            registration fee surcharge directed to the department, and to  
            avoid a proliferation of different types of plates, which can  
            be troublesome from a law enforcement perspective.


          2)The ATP was created by SB 99 (Committee on Budget and Fiscal  
            Review), Chapter 359, Statutes of 2013, by consolidating  
            existing federal and state programs and funding, including the  
            federal Transportation Alternatives Program, the state Bicycle  
            Transportation Account, and the federal and state Safe Routes  
            to School programs. AB 101 (Assembly Budget Committee),  
            Chapter 354, Statutes of 2013, amended the 2013 Budget Act to  
            in part appropriate $129.4 million for the ATP. Through this  
            bill, the author intends to provide more resources to this  
            oversubscribed program.


          3)Related Legislation. Currently there are six other bills in  
            the legislative process that would direct a state agency to  
            sponsor a specialized license plate for a specific cause.   
            Three bills were all held on Suspense last year in Senate  
            Appropriations: 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.  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) on today's committee agenda, would raise money  
            for local food banks. AB 2253 (Grove), also on today's  
            committee agenda, would raise money for veterans' programs.








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          4)Prior Legislation. Since 2011, 12 bills have been introduced  
            establishing specialized license plate program, of which four  
            have been chaptered: 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].





          Analysis Prepared by:Chuck Nicol / APPR. / (916)  
          319-2081