BILL ANALYSIS Ó
AB 1550
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Date of Hearing: March 28, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1550 (Bonilla) - As Amended: March 21, 2012
Policy Committee:
TransportationVote:14-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill increases the dollar amount of fees collected for
veterans' specialized license plates. Specifically, this bill:
1)Increases fees for veterans' specialized license plates:
a) From $30 to $50 for the initial issuance of plates and
decals;
b) From $30 to $40 for registration renewal;
c) From $40 to $98 for personalization of plates.
2)Requires the Department of Motor Vehicles (DMV), by July 1,
2013 to:
a) Issue distinctive decals to applicants for specialized
veterans' plates that recognize service in, or honor
veterans of, a particular armed conflict, or;
b) Make available a "yellow ribbon/support out troops"
decal.
3)Allows for placement of certain decals on specialized
veterans' plates.
4)Clarifies the authority to allow a veteran to apply for plates
indicating his or her service and for a nonveteran to apply
for plates that honor veterans.
FISCAL EFFECT
1)One-time costs to DMV, likely less than $100,000 in 2012-13,
to make programming changes and form revisions to reflect fee
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increases and options described by bill. (Special fund.)
2)Potential minor increase in state revenue available to county
veteran's service organizations (CVSOs), which receive a
portion of veterans' specialized plate fee revenue. (CVSO
Fund.)
COMMENTS
1)Rationale. The author intends this bill to increase the state
revenues available to the CVSOs, which the author describes as
essential to providing local services to the state's veterans.
The author notes that veterans' specialized license plate
fees have not increased since 1992.
2)Background. CVSOs are local agencies, established in 1946 and
acting in concert with the California Department of Veterans
Affairs (CDVA), to provide services to veterans and their
families in obtaining benefits and services earned through
military service. CVSO costs are paid equally by the counties
and the state, the state's share presently limited to $11
million and coming from the CVSO Fund.
Current law authorizes a veterans organization, or any
registered vehicle owner, to apply for a distinctive veterans'
special interest license plate. Proceeds from the sale of
such plates first pay for DMV's costs to administer issuance
and renewal. Any remaining funds are placed in the CVSO fund
for use by CDVA, upon appropriation, to disperse to counties
to pay for CVSO costs.
3)Higher Fee Do Not Necessarily Mean Higher Revenues. As
stated, the author intends the fee increases required by this
bill to increase the amount of state monies available for
local veterans' services. However, it is unknown whether,
and, if so, by how much, the increase cost for a veteran's
specialized license plate will dampen demand for such a
license plate.
4)Support . This bill is supported by the California Association
of County Veterans Services Officers, the California
Department of the American Legion and several other
organizations representing or providing services to California
veterans.
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5)There is no opposition formally registered to this bill.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081