BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 498
                                                                  Page  1

          Date of Hearing:   January 11, 2010

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                                   Mike Eng, Chair
                   AB 498 (Hayashi) - As Amended:  January 4, 2010
           
          SUBJECT  :  Veterans' license plates

           SUMMARY  :  Allows former prisoners of war (POWs) to obtain  
          veterans' license plates without charge.  Specifically,  this  
          bill  :  

          1)Allows any former American POW who is otherwise eligible for a  
            special interest license plate to instead apply for a  
            veterans' organization license plate and decal and be afforded  
            the same fee exemptions as are granted for POW plates.  

          2)Allows the surviving spouses of former POWs to retain the  
            veterans' organization plates under the same conditions.  

           EXISTING LAW  :  

          1)Allows persons who are a former American POWs to apply for  
            special license plates containing a replica design of the  
            American Prisoner of War Medal followed by the letters "POW"  
            and four numbers.  

          2)Requires these plates issued to also contain the words:  
            "Ex-Prisoner of War."  

          3)Requires the Department of Motor Vehicles (DMV) to reserve and  
            issue the plates only to persons who show by satisfactory  
            proof former POW status.  

          4)Exempts these plates from the $48 fee normally assessed for  
            issuance of environmental license plates (those where the  
            plates' numbers and letters have been specifically requested  
            by the vehicle owner) as well as the $38 fee normally assessed  
            for the transfer of plates.  

          5)Exempts POW plates from all vehicle registration fees other  
            than for duplicate plates, cards, certificates.  

          6)Allows veterans' organization to apply for the issuance of  
            special interest license plates bearing a distinctive design  








                                                                  AB 498
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            or decal of their choosing.  

          7)Allows vehicle owners to be issued these plates upon the  
            payment of both the regular fees for an original registration,  
            a renewal of registration, or a transfer of registration, as  
            well as the payment of additional fees associated with these  
            particular plates.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  According to the author,  although former American  
          POWs may obtain special license plate that are exempt from  
          vehicle license and registration fees, they have a limited  
          selection of license plates to choose from, all which include  
          the replica of the Ex-POW Medal followed by the letters "POW"  
          and four numbers.  "While ex-POWs are proud of their military  
          service, not all are comfortable advertising that they were a  
          former POW," she reports.  

          As expressed by the author, this bill therefore, "simply allows  
          ex-POWs the option to order a veterans' organization license  
          plate, also known as a Veterans License Plate and still have  
          their license fees waived."  

          There are 1,733 Ex-POW license plates that have been issued,  
          only 862 of which have 2009 registrations, while there are  
          25,346 veterans' license plates currently in circulation.  Fees  
          from the veterans' plates raise funds to support veterans'  
          organizations.  In calendar year 2008, the revenues from that  
          program totaled over $600 thousand.  Any ex-POWs who chose to  
          obtain a veterans plate rather than a POW plate under this bill  
          (likely a very small number) would not be contributing toward  
          those organizations.  

          DMV's computers are programmed to calculate fees based upon  
          license plate type.  Differentiating different vehicle owners  
          displaying veterans' license plates by identifying the subclass  
          of former POWs as being exempt from all fees could require DMV  
          to expend as much as $100 thousand in programming costs and  
          there would probably be some ongoing workload costs as well.   
          Additionally, there are holders of other special military  
          recognition plates (Pearl Harbor, Purple Heart) who might see  
          this as a precedent and then seek the option of obtaining  
          veterans' plates for themselves without charge, further  
          straining DMV resources.  








                                                                  AB 498
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           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Veterans of Foreign Wars (sponsor)

           Opposition 
           
          None received
           

          Analysis Prepared by  :   Howard Posner / TRANS. / (916) 319-2093