BILL ANALYSIS Ó
AB 2469
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Date of Hearing: April 20, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2469 (Frazier) - As Amended March 29, 2016
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Urgency: Yes State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill authorizes the Department of Health Care Services
(DHCS)-in order to meet the minimum 7,500-application threshold
to implement a previously-authorized specialized license plate
program promoting breast cancer awareness-to collect
applications for an additional 12-month period without first
offering existing applicants refunds on their license plate
deposits.
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FISCAL EFFECT:
To the extent DHCS is able to collect 7,500 applications, there
will be avoided administrative costs from not having to contact
existing applicants and providing refunds. If DHCS is unable to
collect 7,500 applications even with the 12-month extension, the
department will incur additional administrative costs to
provide refunds to the additional applications received during
the 12-month extension. In either case, these costs or savings
should be minor.
The DMV incurs one-time special fund costs of approximately
$400,000 to establish any new specialized license plate program,
including computer programming changes and updating of forms.
These costs, however, were already attributed to the original
authorizing legislation for the breast cancer awareness
specialized license plate program.
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
rejected others, using no standardized or objective criteria
for those decisions. Pursuant to AB 84 (Leslie)/ Chapter 91 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
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be troublesome from a law enforcement perspective.
If the sufficient applications are not received to meet the
7,500-application threshold within 12 months, current law
authorizes a sponsoring agency to extend application
collection by another 12 months if it notifies the DMV and
contacts each applicant who has already submitted a deposit to
determine if they wish to remain on the list of applicants or
receive a refund and be removed from the list.
2)Purpose. AB 49 (Buchanan), Chapter 351, Statutes of 2014,
required DHCS to apply to sponsor a breast cancer awareness
specialized license plate program, with revenues from the
program being deposited in the Breast Cancer Control Account
in the Breast Cancer Fund. Proponents of this specialized
license plate program have yet to reach the required number of
applicants, and wish to extend the deadline by another 12
months without having to offer each applicant a refund.
According to the author, allowing DHCS to focus on acquiring
new applications instead of offering refunds to current
applicants will expedite their goal of reaching the 7,500
applications needed to increase breast cancer awareness and
funding. This bill contains an urgency clause, allowing DHCS
and the plate proponents to immediately work to secure more
signatures.
3)Prior Legislation. AB 610 (Solorio), Chapter 9, Statutes of
2012, provided an additional 12 months for collection of the
7,500 paid applications necessary for the Veterinary Medical
Board to successfully sponsor a specialized license plate. The
Board's specialized license plate is now in production.
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081
AB 2469
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