BILL ANALYSIS Ó AB 2303 Page 1 Date of Hearing: May 4, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2303 (Holden) - As Amended April 14, 2016 ----------------------------------------------------------------- |Policy |Transportation |Vote:|16 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 AB 2303 Page 2 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 AB 2303 Page 3 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. AB 2303 Page 4 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