BILL ANALYSIS Ó AB 2469 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2469 (Frazier) As Amended August 2, 2016 2/3 vote. Urgency -------------------------------------------------------------------- |ASSEMBLY: |76-0 |(April 28, |SENATE: |37-0 |(August 11, | | | |2016) | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: TRANS. SUMMARY: 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. The Senate amendments allow DHCS until September 5, 2016, to contact the Department of Motor Vehicles (DMV) and indicate its intention to extend the application period for its specialized license plate program. EXISTING LAW: 1)Allows any state agency to apply to DMV to sponsor a specialized license plate program and requires DMV to issue AB 2469 Page 2 specialized license plates for that program if the agency complies with all statutory requirements. 2)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. 3)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 to DMV. 4)Requires the agency, if twelve 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; or, 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 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)Requires DHCS to apply to the DMV to sponsor a breast cancer awareness specialized license plate, as specified. FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. AB 2469 Page 3 COMMENTS: Prior to 2007, any new specialized license plate required specific legislative authorization. That practice was held to be unconstitutional by the federal courts, as the Legislature approved some plates and rejected others, without using any standardized or objective criteria for those decisions. 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. The current specialized license plate program permits a state agency to initiate the development and sponsorship of a specialized plate, thus no additional legislation is required to authorize the creation of a new plate. Plates created under the current program and the revenue they generate must publicize or promote a state agency, or the official policy, mission, or work of a state agency. Furthermore, the process requires that at least 7,500 paid applications must be received by the state agency prior to notifying DMV. This 7,500-application threshold was previously put into statute in an attempt to ensure that DMV's startup costs would be fully covered by the portion of the registration fee surcharge that is directed to DMV and to avoid a proliferation of different types of plates, which can be troublesome from a law enforcement perspective. Existing law authorizes a sponsoring agency to extend the period to collect the needed number of applications by another 12 months, if it contacts both DMV to indicate its intention to continue collecting applications, and 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. AB 49 (Buchanan), Chapter 351, Statutes of 2014, required DHCS to apply to sponsor a breast cancer awareness specialized AB 2469 Page 4 license plate program, with revenues from the program being deposited in the Breast Cancer Control Account in the Breast Cancer Fund. Proponents of AB 49, and 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. It is unclear if the proponents of the plate will be able to acquire the necessary number of applicants by the end of the initial 12-month period, or by the end of an additional 12-month period if some applicants remove themselves from the list. This bill would authorize DHCS to obtain a 12-month extension to finish collecting the necessary 7,500 applications, without requiring the department to contact each applicant who has submitted an application to determine if they wish to remain on the list or receive a refund and be removed from the list. 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 necessary 7,500 applications needed to increase breast cancer awareness and funding. The Legislature has previously granted additional extensions to sponsoring agencies beyond the standard 24 months, up to 36 months, allowing the sponsors to successfully acquire the necessary number of applications and trigger production of the plates. Please see the policy committee analysis for full discussion of this bill. Analysis Prepared by: Justin Behrens / TRANS. / (916) 319-2093 FN: AB 2469 Page 5 0003783