BILL ANALYSIS                                                                                                                                                                                                    Ó




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                                      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  








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            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  








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               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  








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            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.










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          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


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