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 AB 498 (HAYASHI) Page 2 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 AB 498 (HAYASHI) Page 3 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.