BILL ANALYSIS Ó
SENATE COMMITTEE ON VETERANS AFFAIRS
Senator Ben Hueso, Chair
BILL NO: AB 244 HEARING DATE: 6/25/13
AUTHOR: Bonilla
VERSION: 4/24/13
FISCAL: Yes
VOTE: Majority
SUBJECT
Vehicles: license plates: veterans.
DESCRIPTION
Summary :
Requires the California Department of Veterans Affairs (CalVet)
to sponsor a veterans' special interest license plate and would
require the California Department of Motor Vehicles (DMV) to
issue the veterans' plate if CalVet meets the current statutory
requirements.
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 special interest license plate procedures for
veteran organizations and allows a veterans' organization to
apply for a veterans' special interest license plate, the
proceeds of which are deposited into the Veterans Service
Office Fund (CVSO Fund) - less the DMV costs - to fund the
efforts of country veterans service officers (CVSOs).
Individual applicants for the plates pay fees for issuance,
renewal, or personalization that is additional to those
required for nonspecialized plates.
3.Requires moneys in the CVSO Fund, upon appropriation by the
Legislature, to be available to CalVet for allocation and
disbursement to counties for the operation of CVSOs.
4.Allows CalVet to modify the distinctive design or decal for
veterans' organization special interest license plates,
consistent with existing statutory design criteria.
This bill:
1.Directs CalVet to apply to DMV to sponsor a veterans
specialized license plate program, and DMV shall issue license
plates for that program if CalVet meets the requirements
prescribed in statute for all specialized plate applicants.
2.Specifies that the design of the veterans specialized license
plate shall be identical to the design of the veterans special
interest license plate issued pursuant to Vehicle Code section
5068, on or prior to January 1, 2010.
3.Mandates that revenue derived from the additional fees
prescribed by Vehicle Code section 5157 for the issuance,
renewal, or transfer of the veterans specialized license
plates shall be deposited, after the department deducts its
administrative costs, in the Veterans Service Office Funds
(CVSO Fund), created by Section 972.2 of the Military and
Veterans Code.
BACKGROUND
Special interest license plates
California has a special interest license plate program under
which vehicle owners can purchase license plates exhibiting
special designs or messages. These plates sold at higher prices
than ordinary license plates. The program's primary purpose is
to produce additional revenue for the state by making special
license plates available for purchase at higher prices than
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regular license plates.
Prior to 2010, DMV offered a specialty license plate only for
veterans with the word "Veteran" printed on it. AB 1908 (Cook,
2010) transitioned the old veterans license plate to a new
"Honoring Veterans" license plate. The change was made to
broaden the pool of eligible buyers and boost revenues. The
"Honoring Veterans" plate can be purchased by any member of the
public, who wishes to support veterans. The change had the
unintended effect of denying veterans a license plate, which
specifically identifies them as veterans. Veterans and veterans
organizations have been asking for reestablishment of a
veterans-only plate since AB 1908 went into effect.
CVSOs/Veterans Service Office Fund
Established in 1991 by AB 3033 (Conroy), this fund is used by
the DMV to deposit fees, minus the administrative costs,
transferred from the Motor Vehicle Account (#0044) for the sale
of specialized veterans license plates. The money in the fund is
used to support CVSO operations. These funds are shared by
counties based upon a percentage of budgeted expenditures.
(Vehicle Code, Section 5060-5069; Military and Veterans Code,
Section 972.2)
CVSOs are trained, accredited professionals who help veterans
and their families navigate the complex federal VA benefit
application processes. The CVSOs assist in claims initiation and
development and draw down significant federal dollars annually.
CVSO funding is derived from a combination of local and state
resources - with an understanding that it would be split 50/50
between the state and local governments. However, during the
past decade the state has funded less than half of the program.
As a result, a key veterans' resource is weakened and the state
loses an opportunity to draw down more federal dollars - perhaps
as much as $400 million more than it has been.
Currently, the counties provide about 85% of the money to fund
the CVSOs. The other 15% ($2.6 million) is provided by the
state. This "Local Assistance" allocation has remained roughly
the same for 18 years and is inadequate to properly fund the
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CVSOs.
The CVSO program is a joint effort of state and local
government. Counties pay 50% of the cost of their CVSOs. At the
time this arrangement was established, 50% was $5 million. Now
that percentage equals $11 million.
COMMENT
Committee staff comments :
If AB 244 is signed into law, both the "Honoring Veterans" and
"Veterans" plate will be available. Revenues from both plate
sales will go toward funding CVSOs.
Related current legislation :
SB 296 (Correa, pending Senate Appropriations Suspense, 2013)
Appropriates $9 million to CalVet and designates the
allocation of those funds between the CVSOs ($7.6 million) and
veteran service organizations ($1.4 million).
AB 110 (Blumenfield, pending Governor's review, 2013)
The State Budget Bill appropriates $5.6 million (a one-time $3
million increase) as the state's contribution to counties
toward compensation and expenses of CVSOs (Budget Item
8955-101-0001-F).
Related Past Legislation
AB 1550 (Bonilla, Ch. 398, Stats. 2012)
Increases the fees required to issue, renew, and personalize
veterans' license plates as follows: $50 for issuance (from
$30), $78 for personalization (from $40), and $40 for renewal
(from $30). The fees for the veteran plate had not been
updated since 1992; this bill brought the veterans plate fee
into line with DMV's other specialized plates.
AB 1908 (Cook, Ch. 166, Stats. 2010)
Authorized CalVet to modify the distinctive designs of
veterans' plates (created the "honoring veterans" special
interest license plate) and the associated decals, but
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prohibits DMV from issuing the new plates or decals until it
has issued all existing inventories of plates and decals.
AB 84 (Leslie, Ch. 454, Stats. 2006)
Excludes private organizations from seeking special interest
license plates as a forum for private speech. Plates and the
revenue they generate must publicize or promote a state
agency, or the official policy, mission, or work of a state
agency. The process requires that at least 7,500 paid
applications be received by the state agency prior to
notifying DMV.
AB 3033 (Conroy, Ch. 1275, Stats.1992)
Established the special interest license plate program for
veterans.
POSITIONS
Sponsor: Author.
Support: American Legion-Department of California
AMVETS-Department of California
California Association of County Veterans Service
Officers
California State Commanders Veterans Council
VFW-Department of California
Vietnam Veterans of America-California State Council
Oppose: None received.
Analysis by: Wade Cooper Teasdale
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