BILL ANALYSIS �
AB 1096
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1096 (Nestande)
As Amended August 22, 2014
Majority vote
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|ASSEMBLY: |77-0 |(May 29, 2013) |SENATE: |35-0 |(August 26, |
| | | | | |2014) |
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Original Committee Reference: TRANS.
SUMMARY : Authorizes the California Department of Fish and
Wildlife (DFW) to apply to the California Department of Motor
Vehicles (DMV) to sponsor a Salton Sea specialized license plate
program, as specified.
The Senate amendments :
1)Clarify that DFW is required to apply to DMV to sponsor a
Salton Sea specialized license plate program.
2)Remove the requirement that the specialized license plate be
designed bearing a full-plate graphic.
3)Clarify that revenue generated from the Salton Sea specialized
license plates are to be appropriated by the Legislature to
the Salton Sea Joint Powers Authority and to be used for
restoration purposes.
FISCAL EFFECT : According to the Senate Appropriations
Committee:
1)Estimated DFW costs of $25,000 in 2014-15 for plate design,
and approximately $50,000 in 2015-16 for 1/2 personnel year of
staff time to collect the initial 7,500 applications and fees
for the establishment of the plate program (General Fund).
These costs could continue into 2016-17 if the requisite
applications and fees are not collected within the first year
and DFW applies to DMV for a 12-month extension.
2)Assuming 7,500 pre-paid applications are collected by DFW, DMV
would incur initial administrative costs of $135,000 to
process the applications, and an additional $440,000 in
programming and other implementation costs, likely in 2016-17
AB 1096
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or 2017-18, partially offset by pre-paid application fees of
$375,000, leaving a net first-year cost of approximately
$200,000 (Motor Vehicle Account). These net costs would be
reimbursed in the following fiscal year by registration
renewal fees from holders of the Salton Sea plates. All
ongoing costs thereafter would be fully offset by fees from
renewals and issuance of new plates.
3)Upon full implementation of the proposed plate program, there
would be ongoing revenues of approximately $300,000 annually
available for use by the Salton Sea Authority for restoration
of the Salton Sea (based on 7,500 plate renewals). These
revenues could be higher to the extent additional Salton Sea
plates are issued.
COMMENTS : Prior to 2007, any new specialized license plate
required specific legislative authorization. That practice was
held to be unconstitutional by the federal courts in that the
Legislature approved some of the plates and rejected others,
while using no 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. Plates now created 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. The 7,500-application threshold was previously
put into statute for the specialized license plates and was
arrived at in an attempt to assure 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.
The author introduced this bill to direct DFW to sponsor a
specialized license plate program in order to provide funds to
assist with restoration of the Salton Sea and to raise public
awareness for that effort. The author contends that the Salton
Sea is beginning to dry up. The transfer of Colorado River
water from Imperial Valley to San Diego County will reduce the
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amount of agriculture runoff that currently flows into the
Salton Sea. As a result, air quality and wildlife habitat have
been severely impaired and, because the remaining waters have
increased salinity, most aquatic life is being killed.
In attempt to address this issue, the restoration plan that has
been recommended by the California Resources Agency estimates
that Salton Sea improvement projects will total approximately
$8.9 billion. Despite this need, the author asserts action has
not been taken and the Salton Sea and the surrounding community
are suffering. By looking at every viable solution to raise the
critical funds that are needed - including a specialized license
plate program - the author believes that California can protect
the residents of the Coachella Valley and its economic vitality,
restore a vibrant ecosystem that benefits countless species, and
establish a new recreational resource that will help draw new
visitors to the region to enjoy all that the desert has to
offer.
Analysis Prepared by : Manny Leon / TRANS. / (916) 319-2093
FN: 0004774