BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2602


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          Date of Hearing:  April 11, 2016 


                        ASSEMBLY COMMITTEE ON TRANSPORTATION


                                 Jim Frazier, Chair


          AB 2602  
          (Gatto) - As Amended April 4, 2016


          SUBJECT:  Disabled parking placards


          SUMMARY:  Creates a two-tiered disabled person (DP) parking  
          system whereby only those persons with disabilities that  
          severely limit mobility and dexterity may qualify for free and  
          unlimited parking at metered spaces.  Specifically, this bill:  


          1)Creates a new category of DP parking, denoted by a yellow  
            sticker, that authorizes only certain individuals, based on  
            mobility and dexterity limitations, to park for free and  
            unlimited time periods at metered parking spaces, including  
            those regulated by parking meters and parking payment centers  
            or kiosks.


          2)Authorizes the California Department of Motor Vehicles (DMV)  
            to establish protocols and procedures for the issuing and  
            renewing yellow free-parking stickers that denotes eligibility  
            for free parking for unlimited time periods to parking meters,  
            for persons with certain disabilities, that can be affixed to  
            existing DP plates or placards.


          3)Requires that persons applying for the yellow sticker must  








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            first apply for and receive a DP plate or placard through the  
            existing program.


          4)Requires that yellow stickers have a fixed expiration date of  
            June 30 every four years.


          5)Requires, in order to qualify for a yellow sticker, an  
            applicant must be unable to perform one or more of the  
            following activities:


             a)   Manage, manipulate, or insert coins, or obtain tickets  
               or tokens at parking meters or payment centers, due to lack  
               of fine motor controls of both hands; 


             b)   Reach above his or her head to a height of 42 inches  
               from the ground due to a lack of finger, hand, or upper  
               extremity strength or mobility; 


             c)   Approach a parking meter due to his or her use of a  
               wheelchair or other device; or,


             d)   Walk more than 20 feet due to an orthopedic,  
               neurological, cardiovascular, or lung condition in with the  
               degree of debilitation is so severe that almost completely  
               impedes the ability to walk.


          6)Requires that DMV, prior to issuing the yellow sticker, be  
            provided with a certificate, completed and signed by a medical  
            practitioner, as specified, substantiating the person's  
            disability in accordance with the specified requirement, and  
            providing a full description of the qualifying condition,  
            unless the person's disability is readily observable and  








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            uncontested.


          7)Provides that the medical form submitted by an applicant for a  
            yellow sticker must be retained by the approving medical  
            practitioner for inspection by the Medical Board of California  
            or appropriate regulatory board.


          8)Provides that persons issued yellow stickers may apply to DMV  
            for a substitute sticker without needing to recertify, if the  
            sticker is lost or stolen.


          9)Authorizes DMV to establish a fee for the issuance of the  
            yellow sticker which does not exceed the reasonable costs of  
            implementing the sticker program.


          10)Provides that the maximum fine that may be imposed for misuse  
            of a yellow sticker is the same as those for misuse of DP  
            plates or placards.


          11)Repeals provisions authorizing persons with a DP plate or DP  
            placard (without a yellow sticker) to park free of charge for  
            unrestricted time periods at metered parking spaces.


          12)Repeals and recasts a number of provisions.


          13)Makes related, conforming amendments.


          EXISTING LAW:  


          1)Allows individuals who are issued a DP plate or placard to  








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            park for unlimited time periods in any metered parking space,  
            in any parking zone with a restricted time limit, as well as  
            at any parking space designated for use by the disabled, or  
            any space designated along the street as a preferential  
            parking zone for residents and merchants.

          2)Allows DMV to cancel or revoke a DP placard if DMV is  
            satisfied that the placard was fraudulently obtained,  
            erroneously issued, or that the placard is being used in an  
            unlawful manner.

          3)Requires a disabled person, in order to obtain a DP placard or  
            plate, to submit a certificate signed by a physician, surgeon,  
            or licensed chiropractor indicating that the person has lost  
            the use of one or more lower extremities or both hands, or who  
            has a significant limitation in the use of his or her lower  
            extremities.

          4)Allows DMV to issue a temporary permit for a period of not  
            more than six months to any person who submits a certificate  
            signed by a physician or surgeon substantiating the temporary  
            disability and stating the date upon which the disability is  
            expected to terminate.

          5)Prohibits a person from knowingly permitting the use of a DP  
            placard for parking purposes unless the person to whom the DP  
            placard was issued is being transported.

          6)Provides misdemeanor penalties for DP placard misuse  
            punishable by fines of not less than $250 or more than $1,000,  
            imprisonment in the county jail for not more than six months,  
            or both the fine and imprisonment. 

          FISCAL EFFECT:  Unknown


          COMMENTS:  The issue of parking privileges for disabled persons  
          is a sensitive one wherein the state has rightfully recognized  
          the need to accommodate individuals with mobility problems.   








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          However, at the same time, with the privilege of free and  
          unlimited parking that accompanies DP plates and placards comes  
          greater incidents of abuse of DP placards by people who are not,  
          in fact, disabled.  While the actual magnitude of DP placard  
          abuse is difficult to verify, reports in metropolitan areas show  
          that the majority of metered spaces are taken by vehicles  
          bearing DP placards.  For example, a survey conducted by the  
          City of Sacramento found that 73% of metered parking spaces in  
          certain areas of the city were occupied by cars bearing DP  
          placards and that the majority of these cars were parked in the  
          spaces most of the day, suggesting that the occupants worked in  
          nearby areas.  Surveys conducted by the San Francisco  
          Metropolitan Transit Association (SFMTA) also indicate that  
          fraudulent placard use is a significant problem, whereby SFMTA  
          notes that on many occasions, nearly 50% of cars parked in  
          downtown San Francisco have DP placards and resulting  
          substantial lost parking revenues as well as less frequent  
          parking space "turnover."  In addition, studies performed by the  
          University of California at Los Angeles (UCLA) found that  
          metered curbside parking in downtown areas of Los Angeles are,  
          for the most part, filled most of day by cars bearing DP  
          placards.  The UCLA study went on to note that despite a metered  
          rate of $4 per hour, the city of Los Angeles only earns about  
          $.32  per hour because cars with DP placards consume 80% of the  
          meter time.

          Under current law, DMV issues DP plates to disabled veterans and  
          persons with permanent disabilities.  Because these individuals  
          often travel in vehicles other than their own, individuals may  
          also opt to obtain a permanent DP parking (blue) placard which  
          is automatically renewed by DMV every two years.  Persons with  
          temporary disabilities may obtain a temporary DP parking (red)  
          placard that is valid for up to six months, or the expected  
          length of the disability as determined by a medical  
          professional, whichever is shorter.  In each case, a specified  
          medical professional must certify the individual meets certain  
          disability criteria outlined in law.  When issued, a DP placard  
          or plate entitles the owner, or a person transporting the owner,  
          to park in preferential parking spaces (marked in blue) and to  








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          park in public parking spaces that are metered or regulated by  
          parking payment centers (such as kiosks) for unlimited periods  
          of time. 

          Current law prohibits any person from displaying a DP placard  
          that does not belong to him or her unless he or she is  
          transporting the placard holder.  Persons who violate this  
          provision are subject to a civil penalty ranging from $250-$1000  
          or criminal misdemeanor penalties which include fines ranging  
          from $250-$1,000, up to one month in a county jail, or both.  In  
          addition, when a violation is identified, a peace officer is  
          authorized to confiscate the DP placard.  After verification  
          with the DMV that the user of the placard was not the owner, the  
          enforcement agency must notify DMV of the misuse and DMV may  
          cancel the placard.  The disabled person whose placard was  
          canceled may subsequently reapply for a new DP placard.  



          Many suggest that the primary motivation for DP placard fraud is  
          the privilege it provides-- to park free of charge for unlimited  
          periods of time in metered parking spaces.  This is a  
          particularly valuable privilege in metropolitan areas where  
          parking is scarce and/or costly.  According to a 2012 study  
          published in the Journal of Planning Education and Research,  
          nearly one-half of states have laws allowing people with DP  
          placards to park for free at metered spaces and, the majority of  
          those states impose no time limit.  The report goes on to states  
          that the non-payment privileges associated with DP placards  
          invites fraud and abuse.  

          To address the growing problem of DP placard fraud and abuse and  
          to provide legitimately disabled person and the general  
          population with better parking access, the author has introduced  
          this bill which would outline a new policy for California's DP  
          parking placard program.  Specially, this bill would create a  
          two-tiered approach to DP parking, much like the programs that  
          are in place in Michigan and Illinois, where individuals with  
          severe mobility impairments may continue to park for free at  








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          metered spaces if they qualify for and obtain a yellow sticker,  
          while individuals with less severe disabilities would be allowed  
          to access preferential DP parking but be required to pay for  
          parking at metered spaces.  Specifically, this bill provides  
          that individuals who meet certain criteria would be eligible to  
          apply for a yellow free-parking sticker from the DMV.  Once  
          issued, the yellow sticker would be affixed to his or her  
          existing DP placard to indicate the individual's eligibility for  
          free and unlimited parking.  Individuals who qualify for the  
          existing DP plates and placards, but who do not qualify for the  
          yellow sticker, would continue to be able to access preferential  
          parking offered for handicapped persons (such blue parking  
          spaces and stalls).  This bill provides that the yellow sticker  
          would have a fixed expiration date of June 30 every four years  
          and provides that misuse of the yellow sticker would carry the  
          same penalties as DP plate or placard abuse.  

          The author points out that in Illinois, where free and unlimited  
          time at parking meters is only offered to a smaller subset of  
          persons with disabilities, only 41,000 applied for the free  
          parking sticker out of the nearly 479,000 placards issued.   
          While the problem of DP placard abuse has not been completely  
          solved in these states, there has been a substantial decrease in  
          reported DP placard fraud.  The author also points to similar  
          programs in Michigan where fraud is said to have dropped  
          dramatically when the yellow sticker programs were implemented.   
          Reports did not indicate, however, whether or not the programs  
          excluded or inconvenienced legitimately disabled individuals. 

          Writing in support of this bill, Safer Streets LA points out  
          that fraudulent use of DP placards is a widespread problem that  
          poses a significant impediment to providing parking access to  
          both disabled motorists and the general motoring population.   
          Safer Streets LA notes that in many urban areas, where parking  
          is at a premium, cars with DP placards routinely occupy almost  
          all the metered curb spaces yet investigative "stings"  
          consistently find that the majority of these placards are being  
          use fraudulently by able-bodied individuals who simply wish to  
          park without paying a fee.  Safer Streets LA points to reforms,  








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          similar to AB 2602, in Michigan where there was a 98% reduction  
          in the number of DP parking placards issued. 





          Writing in opposition, disability rights advocates contend that  
          the levels of suspected DP placard fraud may be overblown.  They  
          note that many indicate that fraud is occurring because large  
          numbers of DP plates and placards are issued but they counter,  
          noting that today, more people with disabilities are getting out  
          into society thereby creating the need for more parking  
          placards.  Californians for Disability Rights, Inc. points out  
          that AB 2602 would strip away important privileges that were  
          intended to ameliorate longstanding and still persistent civil  
          rights violations.  They claim that this bill would  
          substantially impact persons with disabilities who encounter  
          multiple physical barriers so that local jurisdictions can  
          obtain parking revenues.  They contend that if "rampant" abuse  
          is occurring, DMV as well as the municipalities should deal with  
          the fraud through enforcement rather than further burdening the  
          disabled community.





          Author's amendments:  The author acknowledges the need for  
          continuing to work with interested parties to reach consensus on  
          a variety of issues related to this bill including, among other  
          things, delaying the implementation date of the yellow sticker  
          program to give DMV time to implement the program and educate  
          the public about program changes.  Additionally, the author  
          notes there is a need to address provisions authorizing DMV to  
          establish a fee for the purposes of recouping its costs for the  
          yellow sticker program in light of the case  William Robert Dare;  
          Gary Petillo, Plantiffs-Appellees, v. State of California; Dept.  
          of Motor Vehicles, Defendants-Appellants  which challenged  








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          California's legal right to charge a $6 fee for disabled parking  
          placards.  In the case, two federal courts ruled that DMV's  
          surcharged violated the federal law by ruling that the $6  
          parking placard free was discriminatory.  The author concedes  
          that this bill is a "work in progress" and that amendments would  
          be forthcoming as the bill moves through the legislative  
          process.  The author has indicated other items that may be  
          addressed in the bill as it moves through the legislative  
          process including; but not necessarily limited to, using a "free  
          parking placard" rather than a sticker to minimize opportunities  
          for fraudulent duplication, considering a "mobility distance"  
          greater than 20 feet with respect to establishing qualifications  
          for the free-parking sticker, expanding the "life" of the  
          sticker from two years to four years to minimize the  
          inconvenience and costs involved with re-certification and  
          sticker issuance, taking into account modern meter technology  
          when establishing parameters for free parking sticker  
          qualifications, and improving the communication between DMV and  
          the County Recorder's Offices so that DMV can more easily  
          identify when placard holders have passed to minimize continued  
          mailing of placard to the homes of deceased placard holders.





          Committee comments:  It is clear that this bill is a "work in  
          progress" and that much discussion still needs to take place  
          between the author, interest groups, and state agencies to  
          ensure the bill meets the author's stated goal (reducing DP  
          placard fraud) while also ensuring that legitimately disabled  
          persons continue to have access to priority DP parking.  It is  
          important to note that little comprehensive statewide data is  
          available with respect to cause, magnitude, and extent of DP  
          placard abuse in California.  Without this data, it is difficult  
          to craft a thoughtful and comprehensive solution to the problem.











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          For example, while most would agree that DP placard fraud is  
          occurring, it is not completely understood what avenues are most  
          frequently exploited.  Some suggest that the majority of fraud  
          is resulting from legitimately issued placards being borrowed or  
          shared between friends and family members which suggest that a  
          solution may lie in increased enforcement.  Other data, however,  
          suggests that fraudulent use is driven by the widespread  
          availability of DP placards that continue to be sent to deceased  
          DP placard holders for many years by the DMV, indicating the  
          need for DMV to "tighten" its practices with respect to DP  
          placard renewals as well as increase enforcement.  Additionally,  
          little data is available to fully understand the extent to which  
          DP placards may be being issued to persons who do not qualify  
          for the DP placards in the first place.  If there are  
          unscrupulous medical practitioners who are willing to sign  
          medical certifications fraudulently, then it is unrealistic to  
          expect that the same practice would not happen with the yellow  
          sticker program.  Lastly, some suggest that DP placards  
          themselves are being forged and traded or sold in "underground"  
          markets (such as on Internet Web sites), suggesting that  
          alternative methods of enforcement are needed to curb the  
          problem.  In light of the lack of data, the author may,  
          therefore, wish to consider tasking the State Auditor with  
          conducting a comprehensive review of the program to better  
          understand the intricacies of DP placard fraud in California  
          that would aid in the crafting of a comprehensive and effective  
          solution.  





          Double referral: This bill will be referred to the Assembly  
          Local Government Committee should it pass out of this committee.


          Related legislation:  AB 2586 (Gatto), amends a variety of  








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          provisions in existing law related to parking.  AB 2586 passed  
          out of this committee on April 4, 2016, with a 16-0 vote and is  
          scheduled to be heard by the Assembly Local Government Committee  
          on April 20, 2016.


          Previous legislation:  AB 1111 (Gatto) of 2015, would have  
          allowed local jurisdictions to install parking meters in  
          accessible parking spaces and allowed local jurisdictions to  
          make changes to disabled parking requirements.  AB 1111 was  
          returned to the Chief Clerk by this committee pursuant to Joint  
          Rule 56.

          SB 1123 (de León) of 2011, would have suspended, for 30 days,  
          the driver's license of a person who misuses a disabled parking  
          placard and allows cities and counties to charge disabled  
          persons for parking at 10-hour meters.  SB 1123 was returned to  
          the Secretary of the Senate by the Senate Transportation and  
          Housing Committee pursuant to Joint Rule 56.

          AB 1531 (DeSaulnier), Chapter 413, Statutes of 2007, alters  
          signage and painting requirements for disabled parking spaces,  
          limits the number of times that temporary disability placards  
          may be renewed, and increases fines for second and third  
          violations related to illegal parking in disabled spaces.  


          AB 327 (Runner), Chapter 555, Statutes of 2003, allows local  
          governments to impose an additional $100 penalty for the  
          violation of statutes related to disabled persons' parking  
          privileges.

          AB 1314 (Havice), Chapter 640, Statutes of 2001, among other  
          things, revised provisions regarding wheelchair curbside access.
          


          REGISTERED SUPPORT / OPPOSITION:









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          Support


          Safer Streets LA


          1 private citizen




          Opposition


          Californians for Disability Rights


          Disability Rights California


          5 private citizens




          Analysis Prepared by:Victoria Alvarez / TRANS. / (916) 319-2093




















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