BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2602


                                                                    Page  1





          Date of Hearing:  May 18, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2602 (Gatto) - As Amended May 11, 2016


           ----------------------------------------------------------------- 
          |Policy       |Transportation                 |Vote:|10 - 0       |
          |Committee:   |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
           ----------------------------------------------------------------- 


          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY:


          This bill, effective January 1, 2018, establishes a two-tiered  
          disabled person parking system, whereby only those persons with  
          disabilities that severely limit mobility and dexterity may  
          qualify for free and unlimited parking at metered spaces and at  
          parking payment centers or kiosks, and for unlimited parking in  
          parking zones with time limits. Specifically, this bill:  


          1)Requires the DMV, commencing January 1, 2017, to begin  
            notifying all existing disabled placard (DP) holders of the  
            new two-tiered. The free-parking status will be indicated by  








                                                                    AB 2602


                                                                    Page  2





            affixing a sticker or emblem to the DP, or by another indicia  
            as determined by the DMV.


          2)Stipulates that expiration of a driver's free-parking  
            designation would coincide with the expiration of their DP.


          3)Requires those applying for free-parking status to do so under  
            penalty of perjury.


          4)Requires, in order to qualify for a free-parking designation,  
            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, walker or other mobility device, or if his or  
               her medical provider determines it would be unsafe for the  
               person to let go of the mobility device in order to operate  
               a meter; 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.









                                                                    AB 2602


                                                                    Page  3






          5)Stipulates that someone with a clear, permanent disability  
            does not have to recertify their status as permanently  
            disabled under new DP program. 


          6)Requires the DMV, prior to approving someone for the  
            free-parking designation, to be provided with a certificate,  
            completed and signed by a medical practitioner substantiating  
            the person's disability and providing a full description of  
            the qualifying condition, unless the person's disability is  
            readily observable and uncontested.


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


          8)Adds providing a false certification for a free-parking  
            designation to the existing list of unprofessional conduct for  
            a medical practitioner licensed by the state.


          9)Prohibits the DMV from issuing more than one item at a time  
            that designates and individual as eligible for free parking  
            under the DP program, and authorizes the DMV to cancel or  
            revoke a free parking designation that was fraudulently  
            obtained or used.


          10)Provides that all fines and penalties under the existing DP  
            program apply to misuse of the free-status program.


          FISCAL EFFECT:










                                                                    AB 2602


                                                                    Page  4





          One-time special fund costs to DMV in the range of $350,000,  
          related to programming modifications, processing placard  
          applications, and responding to phone inquiries. Ongoing costs  
          would be minor and absorbable. The department indicates that  
          there are about 2.4 million permanent disabled placards and  
          500,000 disabled person license plates. The department assumes  
          that 150,000 persons will apply for free-parking status in the  
          first year and 20,000 each year thereafter. [Motor Vehicle  
          Account]


          COMMENTS:


          1)Background. 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. At the same time, the privilege of free and  
            unlimited parking that accompanies DP plates and placards  
            results in 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  








                                                                    AB 2602


                                                                    Page  5





            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.


          2)Purpose. 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.  Specifically, 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 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.


            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. 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.


          3)Opposition. Disability rights advocates contend that the  
            levels of suspected DP placard fraud may be overblown. They  
            note that many assert that fraud is occurring because large  
            numbers of DP plates and placards are issued, but they counter  
            that 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  








                                                                    AB 2602


                                                                    Page  6





            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. At the time of this analysis, it is  
            unclear to what extent the author's most recent amendments  
            addressed opposition concerns.


          Analysis Prepared by:Chuck Nicol / APPR. / (916)  
          319-2081