California Assembly Bill AB2490

California 2019-2020 Regular Session

• Introduced: 2/19/20
• Refer: 3/12/20

Caption

Information technology goods and services: Department of Motor Vehicles: message display systems.

Impact

If enacted, AB 2490 will have significant implications for future contracts entered into by the DMV. Any contracts signed or amended after January 1, 2021, that include provisions for advertising will now mandate a revenue share with the state. This change is intended to divert additional funds into the Motor Vehicle Account within the State Transportation Fund, potentially enhancing budget allocations for infrastructure and transportation-related projects.

Summary

Assembly Bill 2490, introduced by Assembly Member Choi, aims to amend the Public Contract Code to enhance the transparency and revenue generation of contracts associated with information technology goods and services related to the Department of Motor Vehicles (DMV). The bill specifically addresses contracts that allow private vendors to display advertisements on DMV-operated message display systems. By requiring that the state receives at least 15 percent of the advertising revenues generated, the bill seeks to ensure that public resources contribute financially to state funds.

Contention

The bill has sparked debate regarding the commercialization of public resources. Supporters argue that this measure will increase state revenue without imposing new taxes, while opponents express concerns over the potential implications of allowing advertising on public systems, fearing it could detract from the public service mission of the DMV. Overall, AB 2490 has opened discussions on balancing state revenue needs with maintaining the integrity of public services.