BILL ANALYSIS Ó AB 244 Page 1 Date of Hearing: April 22, 2013 ASSEMBLY COMMITTEE ON TRANSPORTATION Bonnie Lowenthal, Chair AB 244 (Bonilla) - As Amended: April 24, 2013 SUBJECT : License plates: veterans' special interest license plate SUMMARY : Requires the California Department of Veterans Affairs (DVA) to sponsor a veterans' special interest license plate and would require the California Department of Motor Vehicles (DMV) to issue the veterans' plate if DVA meets the current statutory requirements. Specifically, this bill : 1)Requires DVA to sponsor a veterans' special interest license plate and requires DMV to issue the veterans' plate if DVA meets the current statutory requirements for the special license plate program. 2)Requires that the design of the veterans' special interest license plate be identical to the design of the veterans' plate previously issued before January 1, 2010. 3)Mandates that revenue derived from the additional fees be deposited, after DMV deducts its administrative costs, in the California Veterans Service Office (CVSO) Funds. EXISTING LAW : 1)Authorizes a state agency to apply to DMV to sponsor a special interest license plate program and requires DMV to issue the special interest license plates for the program if the state agency complies with specified requirements. 2)Establishes DMV to, among other duties and responsibilities, register vehicles for operation or non-operation in the state. 3)Allows any registered owner of a vehicle to apply to DMV for veterans' organization license plates for his or her vehicle. 4)Establishes special interest license plate procedures for veteran organizations and allows a veterans' organization to AB 244 Page 2 apply for a veterans' special interest license plate, the proceeds of which are deposited into the CVSO Fund, less the DMV costs. Applicants for the special interest license plates pay fees for issuance, renewal, or personalization that is additional to those required for nonspecialized license plates. 5)Requires money in the CVSO Fund to be available, upon appropriation by the Legislature, to DVA for allocation and disbursement to counties for the operation of CVSOs. 6)Allows DVA to modify the distinctive design or decal for veterans' organization special interest license plates, consistent with existing statutory design criteria. FISCAL EFFECT : Unknown COMMENTS : Prior to 2007, any new special interest license plate required specific legislative authorization. That practice was held to be unconstitutional by the federal courts in that the Legislature approved some of the plates and rejected others, while using no standardized or objective criteria for those decisions. In response to the court decision, AB 84 (Leslie), Chapter 454, Statutes of 2006, established the current special interest license plate program to provide a forum for government speech that promotes California's state policies. AB 84 excludes private organizations from seeking special interest license plates as a forum for private speech, and thus addresses the court's objection. Plates now created and the revenue they generate must publicize or promote a state agency, or the official policy, mission, or work of a state agency. Furthermore, the process requires that at least 7,500 paid applications must be received by the state agency prior to notifying DMV. The 7,500-application threshold was previously put into statute for special interest license plates and was arrived at in an attempt to assure that DMV's startup costs would be fully covered by the portion of the registration fee surcharge that is directed to DMV and to avoid a proliferation of different types of plates, which can be troublesome from a law enforcement perspective. The author contends that prior to 2010, DMV only offered a "veterans" special interest license plate which could be purchased by persons who serve or previously served in our nation's armed forces. In actuality, the plates were not AB 244 Page 3 exclusive for "veterans-only" as the purchasers of the plates at that time were not limited solely to veterans. In 2010, in order to garner more widespread appeal and license plate acquisition, legislation was enacted that established an "honoring veterans" license plate, replacing the "veterans-only" plate. Subsequently, since this change, veterans and veterans groups have been asking for the return of the "veterans-only" plate so they can be specifically identified as veterans who have served their country. This is especially significant for veterans returning from current wars. This bill strives to reestablish the veterans' special interest license plate that was previously issued several years ago. Further, the bill would direct monies generated from the additional license plate fees to be deposited in the CVSO Fund. Veterans groups support this bill that will allow veterans to again be specifically identified in a special interest license plate. Further, they support the bill's provisions that could eventually increase funding to CVSOs that help veterans gain access to benefits that they have deservedly earned through their military service. This bill will be in addition to the existing special interest "honoring veterans" license plate. CVSOs provide a valuable resource for California's large population of veterans. Currently, there are CVSOs in 54 of California's 58 counties that employ over 250 local government employees. Because CVSOs are located in communities statewide, they are often the initial point of local contact for claimants (veterans and their families) accessing the veterans' benefit system. Writing is support of this bill, the California Mental Health Directors Association indicates that the bill will generate additional resources to support the valuable local services that CVSOs provide to veterans and their families in terms of free claims assistance, referrals to programs for which veterans may be eligible, and partnering with county mental health departments for veterans assistance with mental health and substance abuse disorders. Previous veterans' plates legislation : AB 1550 (Bonilla), Chapter 398, Statutes of 2012, increased the fees required to AB 244 Page 4 issue, renew, and personalize veterans' license plates. AB 1908 (Cook), Chapter 166, Statutes of 2010, authorized DVA to modify the distinctive designs of veterans' plates (created the "honoring veterans" special interest license plate) and the associated decals but prohibits DMV from issuing the new plates or decals until it has issued all existing inventories of plates and decals. SB 419 (Senate Veterans' Affairs Committee), Chapter 183, Statutes of 2009, declared that California's 50% share for administering the CVSOs is approximately $11,000,000. AB 3033 (Conroy), Chapter 1275, Statutes of 1992, established the special interest license plate program for veterans. Related legislation : AB 49 (Buchanan) would require the California Department of Health Care Services to apply to DMV to sponsor a breast cancer awareness, full-plate graphic license plate. That bill was approved by this committee on April 15, 2013 (16-0 vote). AB 482 (Atkins) would require the California Cultural and Historical Endowment to apply to DMV for the purpose of creating a special interest license plate program using the cartoon character Snoopy. That bill was approved by the Assembly Arts, Entertainment, Sports, Tourism & Internet Committee on April 9, 2013 (4-2 vote). AB 853 (Brown and Linder) would authorize CHP to apply to DMV to sponsor a program for a series of motorsports and auto-enthusiast themed license plates. That bill is now a two-year bill at the request of the author. AB 1096 (Nestande) would require DMV, in consultation with the Salton Sea Joint Powers Authority, to design and make available for issuance special Salton Sea environmental interest license plates bearing a full-plate graphic design. That bill is scheduled to be heard by this committee next week. SB 789 (Price) would authorize the California Arts Council to use funds generated by special interest license plate applications for administrative purposes that is currently prohibited. That bill is set for hearing in the Senate Transportation and Housing Committee on May 7, 2013. AB 244 Page 5 AB 610 (Solorio) Chapter 9, Statutes of 2012, allows the Veterinary Medical Board an additional 12 months to accumulate the required 7,500 applications for the establishment of a Pet Lover's special interest license plate. AB 1242 (Achadjian) of 2012, would have authorized the Foundation for California Community Colleges to apply to DMV to sponsor special interest license plates for the National Association for stock car Auto Racing (NASCAR). That bill was not heard by this committee at the request of the author. AB 1539 (Hayashi) of 2012, would have authorized an anti-bullying special interest license plate program in support of persons who are members of the lesbian, gay, bisexual, and transgender community. That bill was not heard by this committee at the request of the author. SB 1018 (Senate Budget and Fiscal Review Committee), Chapter 39, Statutes of 2012, among other provisions of the budget trailer bill, authorizes DMV, in consultation with the California Department of Parks and Recreation, to design and make available for issuance special interest state parks environmental license plates bearing a full-plate graphic design. That bill was not heard in this committee. AB 1815 (Emmerson) of 2010, would have authorized the Bureau of Automotive Repair to apply to DMV to sponsor a program for a series of special interest NASCAR license plates. That bill was approved by this committee on April 19, 2010 (10-1 vote) but was held in the Senate Transportation and Housing Committee. Double referral : This bill is also referred to the Assembly Committee on Veterans' Affairs. REGISTERED SUPPORT / OPPOSITION : Support American Legion (co-sponsor) AMVETS (co-sponsor) California Association of County Veterans Service Officers (co-sponsor) California Mental Health Directors Association California State Commanders Veterans Council (co-sponsor) AB 244 Page 6 Rural County Representatives of California Veterans of Foreign Wars (co-sponsor) Vietnam Veterans of America (co-sponsor) Opposition None on file Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093