BILL ANALYSIS �
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THIRD READING
Bill No: AB 244
Author: Bonilla (D)
Amended: 8/12/13 in Senate
Vote: 21
SENATE VETERANS AFFAIRS COMMITTEE : 7-0, 6/25/13
AYES: Hueso, Knight, Block, Correa, Lieu, Nielsen, Roth
SENATE TRANSPORTATION & HOUSING COMMITTEE : 11-0, 7/2/13
AYES: DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,
Lara, Liu, Pavley, Roth, Wyland
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/19/13
AYES: De Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg
ASSEMBLY FLOOR : 78-0, 5/28/13 - See last page for vote
SUBJECT : Vehicles: license plates: veterans
SOURCE : American Legion Department of California
Amvets Department of California
California Association of County Veterans Services
Officers
California State Commanders Veterans Council
Veterans of Foreign Wars Department of California
Vietnam Veterans of America California State
Council
DIGEST : This bill requires the California Department of
Veterans Affairs (CalVet) to sponsor a veterans' special
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interest license plate and requires the California Department of
Motor Vehicles (DMV) to issue the veterans' plate if CalVet
meets the current statutory requirements.
ANALYSIS :
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) 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 will 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 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.Requires that revenue derived from the additional fees
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prescribed by Vehicle Code Section 5157 for the issuance,
renewal, or transfer of the veterans specialized license
plates to be deposited, after DMV deducts its administrative
costs, in the 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 are 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 regular license plates.
Prior to 2010, the 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 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.
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
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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
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.
Prior Legislation
AB 1550 (Bonilla, Chapter 398, Statutes of 2012) increased 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, Chapter 166, Statutes of 2010) authorized CalVet
to modify the distinctive designs of veterans' plates (created
the "honoring veterans" special interest license plate) and the
associated decals, but prohibited DMV from issuing the new
plates or decals until it has issued all existing inventories of
plates and decals.
AB 84 (Leslie, Chapter 454, Statutes of 2006), excluded private
organizations from seeking special interest license plates as a
forum for private speech. Clarified that 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, Chapter 1275, Statutes of 1992) established the
special interest license plate program for veterans.
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FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
CalVet costs of approximately $45,000 for 1/2 PY of staff time
in 2014-15 to collect the initial 7,500 applications and fees
for the establishment of the plate program (General Fund).
These costs could continue into 2015-16 if the requisite
applications and fees are not collected within the first year.
DMV implementation costs of approximately $470,000, likely in
2015-16, partially offset by pre-paid application fees of
$375,000, leaving a net cost of approximately $95,000 (Motor
Vehicle Account). These net costs would be reimbursed in the
following fiscal year by registration renewal fees from
holders of the veterans plates. All ongoing costs thereafter
would be fully offset by fees from renewals and issuance of
new veterans plates.
Unknown revenues, likely in the range of $150,000 to $250,000
annually, for deposit into the Veterans Service Office Fund
(based on 7,500 plates after subtracting DMV administrative
costs). These funds are distributed to county veterans
service offices.
Unknown, likely relatively minor revenue gains, to the extent
that applicants wish to have personalized "environmental"
plates (Environmental License Plate Fund).
SUPPORT : (Verified 8/19/13)
American Legion Department of California (co-source)
Amvets Department of California (co-source)
California Association of County Veterans Services Officers
(co-source)
California State Commanders Veterans Council (co-source)
Veterans of Foreign Wars - Department of California (co-source)
Vietnam Veterans of America - California State Council
(co-source)
California Mental Health Directors Association
Contra Costa County Board of Supervisors
Rural County Representatives of California
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ASSEMBLY FLOOR : 78-0, 5/28/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,
Buchanan, Ian Calderon, Campos, Chau, Ch�vez, Chesbro, Conway,
Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez,
Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,
Maienschein, Mansoor, Medina, Melendez, Mitchell, Morrell,
Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson,
Perea, V. Manuel P�rez, Quirk, Quirk-Silva, Rendon, Salas,
Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski,
Wilk, Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Holden, Vacancy
AL:nl 8/20/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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