BILL ANALYSIS AB 1908 Page 1 Date of Hearing: April 13, 2010 ASSEMBLY COMMITTEE ON VETERANS AFFAIRS Paul J. Cook, Chair AB 1908 (Cook) - As Amended: March 11, 2010 SUBJECT : Special interest license plates SUMMARY : Allows the California Department of Veterans Affairs (DVA) to modify the design of license plates that support veterans organizations. Specifically, this bill : 1)Allows California Department of Veterans Affairs to modify the distinctive design or decal for veterans' organization special interest license plates, consistent with existing statutory design criteria. 2)Allows the modified license plates to be issued only after all existing plates or decals have been issued. 3)Requires the Department of Motor Vehicles (DMV), by July 1, 2011, to maintain on its Internet Web site, a link to order online the modified license plates. 4)Repeals the statute that currently requires proceeds from the $10 fee for replacement decals to be divided evenly between the Veterans Service Office Fund and the California Environmental License Plate Fund. EXISTING LAW : 1)Allows any state agency to apply to Department of Motor Vehicles to sponsor a specialized license plate program. 2)Allows any veterans' organization to apply for a special interest license plate, the proceeds of which are deposited into the Veterans Service Office Fund. 3)Requires special interest license plates to provide a 2 inch by 3 inch space to the left of the plate's numerical series and a space of 5/8 inch in height below the numerical series for a distinctive design, decal, or descriptive message. FISCAL EFFECT : Unknown. In calendar 2008, the veterans plate generated $600,000 in revenues. AB 1908 Page 2 COMMENTS : According to the author, this bill is intended to help county veteran services officers (CVSOs) and California Department of Veterans Affairs to better market veterans organization license plates. The resulting revenue increase would enable county veteran services officers to expand their operations of providing veterans and their families free claims assistance and referral to local, state and federal programs. It is believed that a modification of the plate's design will make it more appealing, while having Department of Motor Vehicles make the plate available for on-line ordering will stimulate sales. Finally, the bill repeals the current requirement for one-half of the revenue from replacement decals to be deposited in the Environmental License Plate Fund. The county veteran services officers are established at the discretion of each county's board of supervisors. When a board of supervisors establishes a county veteran services officer, the county is responsible for funding the majority of its operations, appointing the officer of the county veteran services officers, and determining the level of staffing and facilities needed. The county veteran services officers are typically the first point of contact for veterans in applying for benefits offered by the federal Veterans Administration. The help county veteran services officers play a key role in helping veterans and their families pursue and receive the benefits and services for which these individuals may qualify. The county veteran services officers provide a valuable resource for California's large population of veterans. As the author reports, "With offices in 54 of California's 58 counties, and employing over 250 local government employees, the county veteran services officers represent a significant resource to our veteran community. This significant human resource represents a highly effective and low-cost solution to the challenges of service delivery to California's large veterans' community. Because county veteran services officers are located in communities statewide, they are often the initial point of local contact for claimants accessing the federal Veterans Affairs benefit system. Clients are also referred to county veteran services officers by federal, state and service organization personnel in recognition of their accessibility and acknowledged expertise in the field of veterans' services." The author notes that the intention of the veterans plate was AB 1908 Page 3 that it would be available to all licensed Californians for purchase. Since the current design of the plate simply reads "Veteran" with a red and blue line on the bottom portion of the plate, he contends it sends the message that only veterans may purchase and display the plate. This is believed to hamper the sales goals of the county veteran services officers and California Department of Veterans Affairs. Legislative history : The special interest license plate program for veterans was created by AB 3033 (Conroy), Chapter 1275, Statutes of 1992. REGISTERED SUPPORT / OPPOSITION : Support California Association of County Veterans Service Officers (sponsor) County of San Bernardino (sponsor) American Legion, Department of California AMVETS, Department of California Vietnam Veterans of America, CA State Council Opposition None on file. Analysis Prepared by : Eric Worthen / V. A. / (916) 319-3550