BILL ANALYSIS                                                                                                                                                                                                    






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: AB 498
          SENATOR ALAN LOWENTHAL, CHAIRMAN               AUTHOR:  hayashi
                                                         VERSION: 6/1/10
          Analysis by: Carrie Cornwell                   FISCAL:  yes
          Hearing date: June 15, 2010





          SUBJECT:

          Veterans' organizations license plates 

          DESCRIPTION:

          This bill allows a former American prisoner of war (POW) to  
          obtain veterans' organizations license plates without paying the  
          fees typically associated with a veterans plate.

          ANALYSIS:

          Existing law requires that in order to register a vehicle in  
          California, the registered owner pay a registration fee of $34,  
          a $22 surcharge for additional personnel for the California  
          Highway Patrol, various locally-imposed fees, and a vehicle  
          license fee (VLF) equal to 1.15% of a vehicle's value based on  
          purchase price depreciated according to a statutory schedule.

          In addition, any registered owner of a vehicle may apply to the  
          Department of Motor Vehicles (DMV) for veterans license plates  
          for his or her vehicle. Veterans plates bear a distinctive  
          design that includes the word "veteran" along the bottom of the  
          plate and includes a decal on the left side of the plate for one  
          of over 100 sponsoring veterans' organizations, such as the  
          American Legion, 101st Airborne Division, or the National Guard.  
          In addition to the above fees, a vehicle owner must pay $30  
          annually for veterans plates. Revenues derived from this fee go  
          primarily to county veterans service organizations.
          
          Existing law also provides for former American prisoner of war  
          license plates, which bear a replica of the POW medal and  
          include the letters "POW" followed by four numerical characters.  
          Only former American POWs may receive these plates upon  
          providing DMV with satisfactory proof of former POW status.  
          Existing law exempts vehicles with POW plates from all  




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          registration fees and from VLF but limits this exemption to one  
          vehicle owned by the former POW. Also, the vehicle may not be  
          used for transportation for hire, compensation, or profit and  
          must be a passenger motor vehicle, motorcycle, or commercial  
          motor vehicle of less than 8,001 pounds unladen weight. The  
          surviving spouse of a former American POW may retain these  
          plates under the same conditions as the former POW.

           This bill  allows a former American POW to acquire veterans  
          license plates, in lieu of POW plates, without the payment of  
          any registration fees, other surcharges, or VLF. In addition,  
          the surviving spouse of a former POW may retain these plates  
          without paying any fees.


          COMMENTS:

           Purpose  . Currently former POWs are eligible for a special  
          license plates, are exempt from registration fees and VLF, and  
          receive their POW plates at no cost in recognition of their  
          status as former POWs. The author introduced this bill to allow  
          former American POWs the option to receive instead veterans  
          plates, while preserving their exemption from the fees  
          associated with those plates. 

          The author notes that former POWs have a limited selection of  
          license plates to choose from, all of which include the replica  
          of the former POW Medal followed by the letters "POW" and four  
          numbers. The author further asserts that while former POWs are  
          proud of their military service, not all are comfortable  
          advertising that they are a former POW.  This bill simply allows  
          former POWs the option to order a veterans' organization license  
          plate under the same terms as they receive POW plates.  

          Anyone can order a veterans license plate to show their support  
          of military, the national guard or reserve service, or  
          California veterans, but they must pay a fee of $30 for a  
          sequentially numbered plate. This bill exempts former POWs from  
          that fee as well.
          
          Assembly Votes:
               Floor:    72 - 1
               Appr: 17 - 0
               Trans:    14 - 0 

          POSITIONS:  (Communicated to the Committee before noon on  




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          Wednesday, 
                     June 9, 2010)

               SUPPORT:  Veterans of Foreign Wars, Department of  
          California (sponsor)
                         San Clemente Ladies Auxiliary 7142, Veterans of  
          Foreign Wars
                         14 individuals
          
               OPPOSED:  None received.