BILL NUMBER: AB 1815 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Emmerson
FEBRUARY 11, 2010
An act to amend Section 5060 of the Vehicle Code, relating to
vehicles.
LEGISLATIVE COUNSEL'S DIGEST
AB 1815, as introduced, Emmerson. Vehicles: special interest
license plates.
Existing law authorizes private organizations to apply to the
Department of Motor Vehicles for participation in special interest
license plate programs authorized by legislation in which the
department issues license plates with a participating organization's
distinctive design, decal, or descriptive message and specifies the
design criteria for the special license plate. Existing law requires
that the organization collect and receive a minimum of 7,500
applications and fees for the special interest license plates from
the date of the enactment of the legislation authorizing the special
interest license plate. Existing law permits any individual to apply
for an organization's special interest license plate.
This bill would make a technical, nonsubstantive change to these
provisions.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 5060 of the Vehicle Code is amended to read:
5060. (a) An organization may apply to the department for
participation in a special interest license plate program and the
department shall issue special license plates for that program if the
issuance of those plates is required by this article, the sponsoring
organization complies with the requirements of this section, and the
organization meets all of the following criteria:
(1) Qualifies for tax-exempt status under Section 501(c)(3) of
the Internal Revenue Code and Section 23701d of the Revenue and
Taxation Code.
(2) Submits a financial plan describing the purposes for which
the revenues described in paragraph (2) of subdivision (e) will be
used.
(3) Submits a design of the organization's proposed special
interest license plate that, among other things, provides for the
placement of the number and letter characters in a manner that allows
for law enforcement to readily identify those characters.
(b) Any person described in Section 5101 may apply for special
interest license plates, in lieu of the regular license plates.
(c) The design criteria for a special interest license plate are
as follows:
(1) The license plate for a passenger vehicle, commercial
vehicle, or trailer shall provide a space not larger than 2 inches by
3 inches to the left of the numerical series and a space not larger
than five-eighths of an inch in height below the numerical series for
a distinctive design, decal, or descriptive message as authorized by
this article. The plates shall be issued in sequential numerical
order or, pursuant to Section 5103, in a combination of numbers or
letters.
(2) Special interest license plates authorized under this article
may be issued for use on a motorcycle. That license plate shall
contain a five digit configuration issued in sequential numerical
order or, pursuant to Section 5103, in a combination of numbers or
letters. There shall be a space to the left of the numerical series
for a distinctive design or decal and the characters shall contrast
sharply with the uniform background color. No motorcycle plate
containing a full plate graphic design is authorized. Those
particular special interest license plates that were issued prior to
the discontinuation provided by this paragraph may continue to be
used and attached to the vehicle for which they were issued and may
be renewed, retained, or transferred pursuant to this code.
(d) (1) No organization may be included in the program until not
less than 7,500 applications for the particular special interest
license plates are received. Each organization shall collect and hold
applications for the plates. Once the organization has received at
least 7,500 applications, it shall submit the applications, along
with the necessary fees, to the department. The department shall not
issue any special interest license plate until an organization has
received and submitted to the department not less than 7,500
applications for that particular special interest license plate
within the time period prescribed in this section. Advanced payment
to the department by an organization representing the department's
estimated or actual administrative costs associated with the issuance
of a particular special interest license plate shall not constitute
compliance with this requirement. The organization shall have 12
months, following the effective date of the enactment of the specific
legislation enabling the organization to participate in this
program, to receive the required number of applications. If, after
that 12 months, 7,500 applications have not been received, the
organization shall immediately do either of the following:
(A) Refund to all applicants any fees or deposits that have been
collected.
(B) Contact the department to indicate the organization's intent
to undertake collection of additional applications and fees or
deposits for an additional period, not to exceed 12 months, in order
to obtain the minimum 7,500 applications. If an organization elects
to exercise the option under this paragraph, it shall contact each
applicant who has submitted an application with the appropriate fees
or deposits 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 that time that the
organization has received 7,500 applications. The organization shall
refund the fees or deposits to any applicant so requesting. In no
event shall an organization collect and hold applications for a
period exceeding 24 months following the date of authorization as
described in paragraph (2) of subdivision (a).
(C) Sequential plate fees shall be paid for the original
issuance, renewal, retention, replacement, or transfer of the special
interest license plate as determined by the organization and
authorized by the department's regulations. Those plates
containing a personalized message are subject to the fees required
pursuant to Sections 5106 and 5108 in addition to any fees required
by the special interest license plate program.
(2) (A) If the number of currently outstanding and valid special
interest license plates in any particular program provided for in
this article is less than 7,500, the department shall notify the
sponsoring organization of that fact and shall inform the
organization that if that number is less than 7,500 one year from the
date of that notification, the department will no longer issue or
replace those special interest license plates.
(B) Those particular special interest license plates that were
issued prior to the discontinuation provided by subparagraph (A) may
continue to be used and attached to the vehicle for which they were
issued and may be renewed, retained, or transferred pursuant to this
code.
(e) (1) The department shall deduct its costs to develop and
administer the special interest license plate program from the
revenues collected for the plates.
(2) The department shall deposit the remaining revenues from the
original issuance, renewal, retention, replacement, or transfer of
the special interest license plate in a fund which shall be
established by the Controller.
(f) When payment of renewal fees is not required as specified in
Section 4000, or when a person determines to retain the special
interest license plate upon a sale, trade, or other release of the
vehicle upon which the plate has been displayed, the person shall
notify the department and the person may retain and use the plate as
authorized by department regulations.
(g) An organization that is eligible to participate in a special
interest license plate program pursuant to this article and receives
funds from the additional fees collected from the sale of special
license plates shall not expend annually more than 25 percent of
those funds on administrative costs, marketing, or other promotional
activities associated with encouraging application for, or renewal
of, the special license plates.
(h) (1) Every organization authorized under this article to
offer special interest license plates shall prepare and submit an
annual accounting report to the department by June 30. The report
shall include an accounting of all revenues and expenditures
associated with the special interest license plate program.
(2) If an organization submits a report pursuant to paragraph (1)
indicating that the organization violated the expenditure
restriction set forth in subdivision (g), the department shall
immediately cease depositing fees in the fund created by the
Controller for that organization under paragraph (2) of subdivision
(e) and, instead, shall deposit those fees that would have otherwise
been deposited in that fund in a separate fund created by the
Controller, which fund is subject to appropriation by the
Legislature. The department shall immediately notify the organization
of this course of action. The depositing of funds in the account
established pursuant to this paragraph shall continue until the
organization demonstrates to the satisfaction of the department that
the organization is in compliance or will comply with the
requirements of subdivision (g). If one year from the date that the
organization receives the notice described in this paragraph, the
organization is still unable to satisfactorily demonstrate to the
department that it is in compliance or will comply with the
requirements of subdivision (g), the department shall no longer issue
or replace those special interest license plates associated with
that organization. Those particular special interest license plates
that were issued prior to the discontinuation provided by this
paragraph may continue to be used and attached to the vehicle for
which they were issued and may be renewed, retained, or transferred
pursuant to this code.
(3) Upon receiving the reports required under paragraph (1), the
department shall prepare and transmit an annual consolidated report
to the Legislature containing the revenue and expenditure data.