BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2469| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- CONSENT Bill No: AB 2469 Author: Frazier (D) Amended: 8/2/16 in Senate Vote: 27 - Urgency SENATE TRANS. & HOUSING COMMITTEE: 11-0, 6/21/16 AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva, McGuire, Mendoza, Roth, Wieckowski SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8 ASSEMBLY FLOOR: 76-0, 4/28/16 (Consent) - See last page for vote SUBJECT: Specialized license plates: breast cancer awareness SOURCE: Author DIGEST: This bill authorizes the California Department of Health Care Services (DHCS) to collect applications for a specialized license plate program for an additional 12-month period, without offering applicants refunds on their deposits. This bill contains an urgency clause. ANALYSIS: Existing law: 1)Allows any state agency to apply to DMV to sponsor a AB 2469 Page 2 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 the agency, if 12 months have elapsed since the approval of the agency's initial application to sponsor a specialized license plate program without receiving the required number of applications, to either: a) Refund to all applicants all fees or deposits that have been collected. b) Contact DMV to indicate the agency's intent to undertake collection of additional applications for an additional 12-month period and contact each applicant who has submitted an application to determine if the applicant wishes a refund of fees or deposits or requests the continuance of the holding of the application and fees or AB 2469 Page 3 deposits until the agency has received 7,500 applications. 1)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. 2)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. 3)Requires DHCS to apply to the DMV to sponsor a breast cancer awareness specialized license plate, as specified. This bill authorizes DHCS to collect applications for a specialized license plate program for an additional 12-month period, without offering applicants refunds on their deposits. Comments 1)Purpose. The purpose of this bill is to extend the time in which DHCS can accept applications for the breast cancer awareness license plate program by up to 12 months. Without this bill, DHCS will stop accepting applications on September 5, 2016, and begin the process of refunding application fees. 2)History of special-interest license plates. Historically, the Vehicle Code required the DMV to issue, upon legislative authorization, a special-interest license plate bearing a distinctive design or decal of a sponsoring organization to any vehicle owner that pays specified fees, provided that the sponsoring organization met certain conditions. These conditions included that the sponsor of a special-interest license plate had to be a nonprofit organization and had to collect 7,500 applications and fees for a special license plate in order to pay DMV's costs of creating a new plate, which is approximately $375,000 or 7,500 applications times AB 2469 Page 4 the $50 fee. In 2004, a federal court decision, Women's Resource Network v. Gourley, E.D. Cal 2004, F.Supp.2d, 2004 U.S. Dist., invalidated these provisions of the Vehicle Code. In the Gourley decision, the court declared California's special-interest license plate statutes unconstitutional because they violated the First Amendment right to freedom of speech. The court specifically objected to the Legislature "picking and choosing" special license plates that private organizations propose, in essence promoting the message of some organizations while denying this right to others. The court did allow the 10 special-interest license plates existing at the time of its decision to remain in use and available to new applicants, as they are today. 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. Newly created plates and the revenue they generate must publicize or promote a state agency or the official policy, mission, or work of a state agency. 3)History of the breast cancer awareness specialty license plate. 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. The DMV began collecting pre-paid applications for that plate through a Web site, pinkplate.org. As of mid-April 2016, the DMV indicates that the DHCS has collected 2,116 applications. In early August the pinkplate.org Web site updated that number to 2,645. Either way, given historic application rates, it is unlikely that 7,500 pre-paid applications will be received even with the extended application date proposed by this bill unless some significant and sustained marketing effort is planned. AB 2469 Page 5 Specialized plates typically fail to obtain sufficient applications to meet the threshold of 7,500. Of the 12 legislatively sponsored plates approved since 2000, only two have met the threshold. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No SUPPORT: (Verified8/3/16) Susan G. Komen California Collaborative OPPOSITION: (Verified8/3/16) None received ASSEMBLY FLOOR: 76-0, 4/28/16 AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon NO VOTE RECORDED: Chávez, Daly, Mathis, Olsen Prepared by:Randy Chinn / T. & H. / (916) 651-4121 8/3/16 19:00:49 **** END **** AB 2469 Page 6