BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2469


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          2469 (Frazier)


          As Amended  August 2, 2016


          2/3 vote.  Urgency


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          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  








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            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.










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          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  








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          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:  








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