BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                       AB 2321|
          |Office of Senate Floor Analyses   |                              |
          |1020 N Street, Suite 524          |                              |
          |(916) 651-1520         Fax: (916) |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 
           
                                           
                                    THIRD READING


          Bill No:  AB 2321
          Author:   Gomez (D), et al.
          Amended:  4/24/14 in Assembly
          Vote:     21


           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  10-0, 6/26/14
          AYES:  DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,  
            Lara, Liu, Roth, Wyland
          NO VOTE RECORDED:  Pavley

           SENATE APPROPRIATIONS COMMITTEE  :  5-0, 8/14/14
          AYES:  De Le�n, Hill, Lara, Padilla, Steinberg
          NO VOTE RECORDED:  Walters, Gaines

           ASSEMBLY FLOOR  :  76-0, 5/27/14 - See last page for vote


           SUBJECT  :    Special-interest license plates:  Office of  
          Emergency Services

           SOURCE :     Author


           DIGEST  :    This bill requires the Office of Emergency Services  
          (OES) to apply to the Department of Motor Vehicles (DMV) to  
          establish a special-interest license plate that promotes  
          awareness of domestic violence and sexual assault.

           ANALYSIS :    Any state agency, including the Department of  
          Health Care Services, may sponsor a special-interest license  
          plate pursuant to AB 84 (Leslie, Chapter 454, Statutes of 2006).  
           Under AB 84, the DMV may issue new special-interest license  
                                                                CONTINUED





                                                                    AB 2321
                                                                     Page  
          2

          plates only on behalf of state agencies and only provided that  
          for each state agency:

           The license plate has "a design or contains a message that  
            publicizes or promotes a state agency, or the official policy,  
            mission, or work of a state agency."  The design shall also be  
            confined to the left of and below the numerical series (i.e.,  
            no full plate designs allowed).

           The state agency submits 7,500 applications and accompanying  
            fees to DMV for the license plate.  The state agency has 12  
            months to collect these applications and fees, but it can  
            extend that to a maximum of 24 months if it notifies and  
            offers to refund fees to those who applied during the first 12  
            months.  Once a plate is issued, DMV stops issuing that plate  
            for the agency if the number of plates drops below 7,500.

          In addition to the usual registration and license fees, DMV  
          charges the following additional fees for specialized license  
          plates:  $50 for the initial issuance, $40 for annual renewal,  
          and $15 to transfer to another vehicle.  DMV deducts its  
          administrative costs from the revenues generated.  The net  
          revenues derived from a specialized license plate are then  
          available upon appropriation for the sponsoring state agency to  
          expend exclusively on projects and programs that promote the  
          state agency's official policy, mission, or work.

          A sponsoring state agency may not spend more than 25% of its  
          license plate funds for administrative, marketing, and  
          promotional costs associated with the plate, and it must submit  
          an annual accounting report to DMV.

          This bill:

          1.Requires OES to apply to DMV pursuant to AB 84, to sponsor a  
            domestic violence and sexual assault awareness license plate  
            program.

          2.Directs the revenues derived from this license plate, after  
            paying DMV's costs, to the California Domestic Violence  
            Prevention Fund, which the bill creates to fund the Family  
            Violence Prevention Program.

           Background

                                                                CONTINUED





                                                                   AB 2321
                                                                     Page  
          3

           
           Special-interest license plates  .  Historically, the Vehicle Code  
          required DMV to issue, upon legislative authorization, a  
          special-interest license plate bearing a distinctive design or  
          decal of a sponsoring organization to any vehicle owner that  
          pays specified fees, provided that the sponsoring organization  
          met certain conditions.  These conditions included that the  
          sponsor of a special-interest license plate had to be a  
          nonprofit organization and had to collect 7,500 applications and  
          fees for a special license plate in order to pay DMV's costs of  
          creating a new plate, which are approximately $375,000 or 7,500  
          applications times the $50 fee.

          In 2004, a federal court decision, Women's Resource Network v.  
          Gourley, E.D. Cal 2004, F.Supp.2d, 2004 U.S. Dist., invalidated  
          these provisions of the Vehicle Code.  In the Gourley decision,  
          the court declared California's special-interest license plate  
          statutes unconstitutional because they violated the First  
          Amendment right to freedom of speech.  The court specifically  
          objected to the Legislature "picking and choosing" special  
          license plates that private organizations propose, in essence  
          promoting the message of some organizations while denying this  
          right to others.  The court did allow the 10 special-interest  
          license plates existing at the time of its decision to remain in  
          use and available to new applicants, as they are today.

          In response to the court decision, AB 84 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.  Newly created plates and the revenue  
          they generate must publicize or promote a state agency or the  
          official policy, mission, or work of a state agency.

           Comments
           
          The author introduced this bill to compel OES to sponsor a  
          special-interest license plate in order to promote awareness of  
          domestic violence and sexual assault and to provide additional  
          funding for the OES-administered Family Violence Prevention  
          Program.  This program provides financial and technical  
          assistance to local domestic and family violence centers that  
          are implementing family violence programs around the state.

                                                                CONTINUED





                                                                    AB 2321
                                                                     Page  
          4


          The author notes that domestic violence and sexual assault are  
          crimes that millions of women, men, and children are victims of  
          across the state of California.  The California Coalition  
          Against Sexual Assault reports that on average 24 people per  
          minute are victims of rape, physical violence, or stalking by an  
          intimate partner in the United States.   The author introduced  
          this bill to help to provide proper attention and funding to  
          sexual violence, a severe public health problem.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

           Estimated OES 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 OES applies to DMV for a 
          12-month extension.

           Assuming 7,500 pre-paid applications are collected by OES, DMV  
            will 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 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 will be reimbursed in the  
            following fiscal year by registration renewal fees from  
            holders of the domestic violence and sexual assault awareness  
            plates.  All ongoing costs thereafter will be fully offset by  
            fees from renewals and issuance of new plates.

           Upon full implementation of the proposed plate program, there  
            will be ongoing revenues of approximately $300,000 annually  
            available for OES' Family Violence Prevention Program (based  
            on 7,500 plate renewals).  These revenues may be higher to the  
            extent additional domestic violence and sexual assault  
            awareness plates are issued. 

           SUPPORT  :   (Per the Senate Transportation and Housing Committee  

                                                                CONTINUED





                                                                    AB 2321
                                                                     Page  
          5

          analysis of 4/24/14--Unable to reverify at time of writing)

          Partnership to End Domestic Violence

           ASSEMBLY FLOOR  :  76-0, 5/27/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gorell,  
            Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez, Holden,  
            Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,  
            Maienschein, Mansoor, Medina, Melendez, Mullin, Muratsuchi,  
            Nazarian, Nestande, Olsen, Pan, Perea, John A. P�rez, V.  
            Manuel P�rez, Quirk, Rendon, Ridley-Thomas, Rodriguez, 
            Salas, Skinner, Stone, Ting, Wagner, Waldron, Weber,  
            Wieckowski, Wilk, Williams, Yamada, Atkins
          NO VOTE RECORDED:  Gordon, Patterson, Quirk-Silva, Vacancy


          JA:e  8/17/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

                                   ****  END  ****




















                                                                CONTINUED