BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1908
                                                                  Page  1

          Date of Hearing:   May 5, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 1908 (Cook) - As Amended:  March 11, 2010 

          Policy Committee:                               
          TransportationVote:14-0
                        Veterans Affairs                      9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill allows the California Department of Veterans Affairs  
          to modify the design of license plates that support veterans'  
          organizations in order to make the plates more marketable to non  
          veterans.  Specifically, this bill:  

          1)Allows California Department of Veterans Affairs to modify the  
            distinctive design or decal for veterans' organization special  
            interest license plates.

          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  
            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, leaving all of the receipts  
            in the veterans' fund.  
           
          FISCAL EFFECT  

          1)Minor and absorbable costs to DMV.

          2)A minor shift in funds (probably around $6,000 annually) from  
            the California Environmental License Plate Fund to the  
            Veterans Service Office Fund due to the elimination of the  








                                                                  AB 1908
                                                                  Page  2

            50-50 split of fees from replacement decals.

           COMMENTS  

           1)Background  .  Existing law allows any state agency to apply to  
            DMV to sponsor a specialized license plate program.  It also  
            allows any veterans' organization to apply for a special  
            interest license plate, the proceeds of which are deposited  
            into the Veterans Service Office Fund. 

            The county veteran services officers are established at the  
            discretion of each county's board of supervisors.  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.


           2)Rationale  . The purpose of this bill is to increase revenues  
            from veteran's organizations license plates and raise funds  
            for county veteran officer services. According to the author,  
            this bill is intended to help county veteran services officers  
            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.  

            The author believes 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.  The author's office also indicates that  
            elimination of the 50-50 split of fee proceeds from  
            replacement decals recognizes the fact that the veterans  
            license plate is intended to benefit veterans programs, rather  
            than environmental programs. 

           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081